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Differences in composition of seemingly identical branded products: Impact on consumer purchase decisions and welfare

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Abstract
The issue of Differences in Composition of Seemingly Identical branded products (DC-SIP) refers to the case of "goods [being] marketed in the Single Market under the same brand or trademark but with differences in content, composition or quality in individual EU Member States" (European Commission, 2017a). The main concern is that "in some parts of Europe, people are sold food of lower quality than in other countries, despite the packaging and branding being identical", as stated by President Juncker (European Commission, 2017b). In this report we aim to analyse whether and how this issue affects consumers. We do so in economic terms, by analysing how consumer purchase decisions and consumer welfare are affected by the fact that the same brand owner offers seemingly identically branded food products but having different properties. Based on the conceptual and empirical knowledge developed in the fields of economics, marketing and consumer psychology, we build a conceptual framework to analyse the formation of consumer quality perceptions, purchasing decisions and welfare. We look into the different factors that shape food quality perception, how these may differ across countries and individual consumers, and relate these to the issue of DC-SIP. Finally, we analyse the impact of disconfirmation of consumers' expectations and the role of unfairness in consumer decision making and welfare to understand consumers' reactions to DC-SIP.

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  • Liesbeth Colen & George Chryssochoidis & Pavel Ciaian & Federica Di Marcantonio, 2020. "Differences in composition of seemingly identical branded products: Impact on consumer purchase decisions and welfare," JRC Research Reports JRC118149, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc118149
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC118149
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    Cited by:

    1. Pavel Ciaian & Federica Di Marcantonio & Liesbeth Colen & Kjersti Nes & Jesus Barreiro-Hurle & François J. Dessart & Luisa Menapace & Carlo Russo & Annarita Colamatteo & Negin Fathinejad & Maria Anna , 2020. "Economic analyses of differences in composition of seemingly identical branded food products in the Single Market," JRC Research Reports JRC120297, Joint Research Centre.
    2. Nes, Kjersti & Ciaian, Pavel & Di Marcantonio, Federica, 2021. "Economic determinants of differences in the composition of seemingly identical branded food products in the EU," Food Policy, Elsevier, vol. 100(C).

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    More about this item

    Keywords

    dual food quality; food chain; branded food products; differences in composition; consumers; unfairness; quality perception;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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