Private labels and public quality standards: How can consumer trust be restored after the mad cow crisis?

Eric Giraud-Héraud (), Lamia Rouached and Louis-Georges Soler ()

Quantitative Marketing and Economics (QME), 2006, vol. 4, issue 1, 55 pages

Abstract: In those sectors faced with questions of food safety (meat, fruit, vegetables), new private labels have been set up in Europe in order to restore consumer trust. In this paper, we perform a theoretical analysis of these private labels. We propose an original model of vertical relationships between producers and retailers which takes into account two supply sources through (i) a competitive spot market on which the retailers buy a minimum quality standard product and (ii) supply contracts aimed at marketing higher quality private labels. We study how producers and retailers could cooperate in setting up these new labels. From a public point of view, we show the complementarity of a moderate increase in public quality standards and the creation of these new private labels. Copyright Springer Science + Business Media, LLC 2006

Keywords: Vertical relationship; Retailer; Food safety; Minimum quality standard; Private labels (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:qmktec:v:4:y:2006:i:1:p:31-55

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DOI: 10.1007/s11129-006-2777-5

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