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

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.