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Economic determinants of differences in the composition of seemingly identical branded food products in the EU

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This report provides an econometric estimation of the economic determinants of differences in the composition of seemingly identical branded food products (DC-SIP) in the European Union. The analyses of this report is based on the results from the EU wide testing campaign (European Commission, 2019) in combination with economic data collected from different statistical sources (e.g. Eurostat, Eurobarometer, World Bank, Global Dietary Database). Econometric estimation — probit estimator — is performed on these combined dataset to quantitatively identify drivers of DC-SIP. The estimated results show that the difference in income levels between two Member States has a statistically significant positive effect on the probability of the two MS having a different version of seemingly identical branded food products. The estimation of this report also show that other factors—such as heterogeneous consumer preferences across MS, distance, company size, price level and product complexity—also contribute to a firm’s incentive to offer different versions of seemingly identical branded food products in different MS. Further, specific characteristics of different product categories and country-specific factors are also found to impact the presence of DC-SIP between MS.

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  • Kjersti Nes & Pavel Ciaian & Federica Di Marcantonio, 2020. "Economic determinants of differences in the composition of seemingly identical branded food products in the EU," JRC Research Reports JRC119221, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc119221
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    1. Liesbeth Colen & George Chryssochoidis & Pavel Ciaian & Federica Di Marcantonio, 2020. "Differences in composition of seemingly identical branded products: Impact on consumer purchase decisions and welfare," JRC Research Reports JRC118149, Joint Research Centre.
    2. Kjersti Nes & Pavel Ciaian, 2022. "EU marketing standards and sustainability," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1844-1863, December.
    3. Lucie Severová & Roman Svoboda & Karel Šrédl & Marie Prášilová & Alexandr Soukup & Lenka Kopecká & Marek Dvořák, 2021. "Food Safety and Quality in Connection with the Change of Consumer Choice in Czechia (a Case Study)," Sustainability, MDPI, vol. 13(11), pages 1-20, June.
    4. Agie Wandala Putra & Jatna Supriatna & Raldi Hendro Koestoer & Tri Edhi Budhi Soesilo, 2021. "Differences in Local Rice Price Volatility, Climate, and Macroeconomic Determinants in the Indonesian Market," Sustainability, MDPI, vol. 13(8), pages 1-21, April.

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    More about this item

    Keywords

    dual food quality; food chain; branded food products; differences in composition; consumers;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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