Journal article

Publication year: 2009

Pages: 311-321

Journal: Applied Economics

Volume number: 41

Issue number: 3

ISSN: 0003-6846

eISSN: 1466-4283

Open access status: Green

DOI Link: https://doi.org/10.1080/00036840601007237

Publisher: Taylor and Francis Group

Abstract: 
It is the objective of this paper to provide a methodological framework for the analysis of regional marketing programs which inlclude regional-origin labelling as well as quality assurance and control. Such programs are increasingly being introduced in Europe and other parts of the world as a means against quality uncertainty in globalized markets. An equilibrim - displacement model is developed for a segmented market with differential qualities that can be utilized for a broad variety of marketing programs. It is applied to one selected European case, i.e. Gepruefte Qualitaet - Bayern. It is shown that the price impacts on high-quality and low-quality segments depend crucially on substitutive relationships between the markets and the advertising elasticities. Welfare implications for producers in a program depend strongly on advertising elasticities, too, but also on the costs of participation including quality control and on the co-financing mechanism between government and producers.

Harvard Citation style: Anders, S., Thompson, S. and Herrmann, R. (2009) Markets segmented by regional-origin labelling with quality control, Applied Economics, 41(3), pp. 311-321. https://doi.org/10.1080/00036840601007237

APA Citation style: Anders, S., Thompson, S., & Herrmann, R. (2009). Markets segmented by regional-origin labelling with quality control. Applied Economics. 41(3), 311-321. https://doi.org/10.1080/00036840601007237