Eco-labels are important features of many natural resource and food markets. They certify that a product has some desirable unobserved quality, typically related to a public good such as being sustainably produced. Two issues that have received limited attention are whether pricing varies across different eco-labels that may compete with each other and to what extent different retailers charge different prices. Using a unique data set of salmon prices in eight different United Kingdom retail chains, we investigate these issues by estimating a price-attribute model that includes two eco-labels and one country-of-origin label. Results show substantial variation in the prices of the different eco-labels and that eco-label premiums vary across retail chains. Specifically, salmon certified with the Marine Stewardship Council (MSC) label has a high premium in low-end retail chains but no statistically significant premium in the high-end chains. These findings question the ability of the MSC label to transmit consumer willingness-to-pay for public goods through the supply chain to incentivize sustainable management. In contrast, premiums for organic certification are similar in magnitude across retailer types. In general, failure to account for retailer heterogeneity will over-or under-estimate a label's premium. 2 Pricing of Eco-labels with Retailer HeterogeneityAbstract Eco-labels are important features of many natural resource and food markets. They certify that a product has some desirable unobserved quality, typically related to a public good such as being sustainably produced. Two issues that have received limited attention are whether pricing varies across different eco-labels that may compete with each other and to what extent different retailers charge different prices. Using a unique data set of salmon prices in eight different United Kingdom retail chains, we investigate these issues by estimating a price-attribute model that includes two eco-labels and one country-of-origin label. Results show substantial variation in the prices of the different eco-labels and that eco-label premiums vary across retail chains. Specifically, salmon certified with the Marine Stewardship Council (MSC) label has a high premium in low-end retail chains but no statistically significant premium in the high-end chains. These findings question the ability of the MSC label to transmit consumer willingness-to-pay for public goods through the supply chain to incentivize sustainable management. In contrast, premiums for organic certification are similar in magnitude across retailer types. In general, failure to account for retailer heterogeneity will over-or under-estimate a label's premium.

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The retail market for seafood is dynamic with substantial competition both amongst retailers and between private labels and national brands. New product attributes are added in attempts to differentiate products and to attract consumers. Credence attributes, in particular those related to eco-labels and fishing method, have become more common. But little is known about how these and other credence attributes are valued in the retail market. In addition, little is known about price differences between private labels. To estimate the value of these attributes, weekly in-store observations of selected frozen whitefish products were conducted in seven UK retail chains in the city of Glasgow. An estimated hedonic model shows a substantial price premium for fishing method (line-caught), a premium for both home (Scottish) and non-home country of origin (Icelandic) and a premium for the Marine Stewardship Council eco-label. An uncertified eco-label owned by a large seafood manufacturer leads to reduced price. The study also reveals substantial price differences between private labels for whitefish. The results contribute new insights regarding opportunities for differentiation by credence attributes which may lead to more sustainable and effective resource use along the value chain for frozen whitefish.

PurposeThis study sets out to explore how consumers evaluate unbranded and unlabelled food products and to what extent they are able to select the products with the highest potential to meet their expectations regarding eating quality.Design/methodology/approachThe study focused on Portuguese consumers and their purchase of bacalhau, i.e. salted and dried cod, which is sold unpacked, unbranded and unlabelled in supermarkets. The collection of data encompassed observations of shoppers in supermarkets, individual interviews and focus groups with consumers, and a consumer panel that conducted quality assessments and rankings of nine different bacalhaus and subsequent taste assessments of the same products following desalting and cooking.FindingsResults indicate that Portuguese consumers – in spite of substantial experience with buying, preparing and consuming bacalhau – are uncertain in their in‐store quality assessment. Shoppers used multiple criteria to assess the quality of the bacalhau, such as the appearance and dryness of the product. Some rather curious quality criteria that were not related to “objective” product quality were also discerned. Touching the dried and salted cod trying to “feel” the quality was common. Some even broke the fish tail to assess the dryness. Findings from the consumer panel showed large discrepancies between how the same products were assessed before and after desalting and cooking.Research limitations/implicationsThe study is limited to one food product and one national market. Marketing implications, such as focus on packaging, quality labelling, and branding are discussed, as well as implications for future research.Originality/valueThe paper shows that although unlabelled and unbranded food products are common, relatively little research addressing how consumers assess such products in a wider sense, including which strategies consumers apply and to what extent they are able to select products that meet or exceed their expectations regarding eating quality, has been conducted. The paper also addresses the role cultural rules and rituals may play in the assessment of traditional food products such as bacalhau.

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