Willingness to pay for a multi-level animal husbandry label: an analysis of German meat consumers
ISSN: 0007-070X
Article publication date: 1 March 2024
Issue publication date: 9 April 2024
Abstract
Purpose
The use of multi-level labels can enhance product visibility by enabling labeling of various items. Moreover, it can better accommodate the diversity on both the producer and consumer sides. However, studies on the willingness to pay (WTP) for premium levels of those animal welfare labels are scarce.
Design/methodology/approach
We investigate consumers’ WTP for a four-level animal husbandry label introduced to the market by German retailers in 2019 by conducting an online survey with 1,223 German meat consumers using Van Westendorp’s price sensitivity meter (PSM).
Findings
There is a significant increase in WTP for level 3 of the husbandry label, but only a slight increase for level 4. One explanation is that consumers may have the mistaken belief that level 3 already includes outdoor access for animals. As a result of this expectation, consumers may not perceive much added value in level 4, which is reflected in their reluctance to pay a higher price. This is reinforced by the finding that once informed of the criteria, 18% of the participants reduced their WTP for level 3, whereas only 6% considered a discount for level 4. Furthermore, 40% were prepared to pay more for level 4 after being informed of the respective criteria than they had previously stated.
Originality/value
To the best of our knowledge, this study is the first to analyze and emphasize the importance of clear label communication, particularly for multi-level animal husbandry labels.
Keywords
Acknowledgements
We are grateful to the Ministry of Lower Saxony for Food, Agriculture and Consumer Protection for financing this study in the project: “Analysis of marketing channels for products of sustainable livestock farming using the example of southern Lower Saxony” (reference number: 104-60143/20-2). The sponsor had no influence on any decision.
Citation
Kühl, S., Schütz, A. and Busch, G. (2024), "Willingness to pay for a multi-level animal husbandry label: an analysis of German meat consumers", British Food Journal, Vol. 126 No. 5, pp. 2099-2121. https://doi.org/10.1108/BFJ-08-2023-0719
Publisher
:Emerald Publishing Limited
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