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Does having a Choice make a Difference? Market Potential of the Animal Welfare Label in Germany

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  • Schulze-Ehlers, Birgit
  • Purwins, Nina
Abstract
This paper investigates the effects of the introduction of a specific animal welfare label on consumer decision making when shopping for pork. Based on two empirical studies, we analyze whether substitution effects between organic, regional, and animal welfare products have to be expected under current market conditions. Our results show that persons with preference for animal welfare decide significantly more often for the animal welfare or the organic product, not for local, and that organic heavy buyers do not differ from rest of sample with respect to animal welfare or local choice. The animal welfare label as stand-alone selling proposition may be too weak to create value added. Based on the examination of interaction terms, we find that organic does not gain by combination with an animal welfare label, whereas regional labels are not associated yet with animal welfare and would profit more by including an additional informational cue. We tentatively conclude that animal welfare programs should be embedded in regional marketing programs.

Suggested Citation

  • Schulze-Ehlers, Birgit & Purwins, Nina, 2016. "Does having a Choice make a Difference? Market Potential of the Animal Welfare Label in Germany," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244531, International European Forum on System Dynamics and Innovation in Food Networks.
    • Handle: RePEc:ags:iefi16:244531
    DOI: 10.22004/ag.econ.244531
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    File URL: https://ageconsearch.umn.edu/record/244531/files/43-B9_Schulze-Ehlers%20_%20Purwins%202016%20Does%20having%20a%20choice%20make%20a%20difference_submit.pdf
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    References listed on IDEAS

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    2. Zenner, Silvia & Wirthgen, Bernd & Altmann, Marianne, 2005. "Präferenzen für unterschiedliche Produktionsverfahren und Herkunftsbezeichnungen – dargestellt am Beispiel eines Lebensmittels aus der Direktvermarktung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 54(02), pages 1-7.
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    6. Loureiro, Maria L. & Hine, Susan E., 2002. "Discovering Niche Markets: A Comparison Of Consumer Willingness To Pay For Local (Colorado Grown), Organic, And Gmo-Free Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(3), pages 1-11, December.
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    1. Purwins, Nina & Schulze-Ehlers, Birgit, 2018. "Improving market success of animal welfare programs through key stakeholder involvement: heading towards responsible innovation?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(4).

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