Eco-labeling and retailer pricing strategies: The U.K. haddock market

Citation

Zhang D, Sogn-Grundvåg G, Asche F & Young JA (2018) Eco-labeling and retailer pricing strategies: The U.K. haddock market. Sustainability, 10 (5), Art. No.: 1522. https://doi.org/10.3390/su10051522

Abstract
In attempts to differentiate their store imagery, grocery retailers frequently introduce new products, which are often rich in extrinsic attributes such as claims regarding healthiness and environmental sustainability. This paper explores retailers’ pricing strategies for product attributes of haddock in the United Kingdom. The results show that retailers’ pricing strategies vary, in particular for extrinsic product attributes such as eco-labels and country-of-origin. The high price premium generated from the most advocated eco-labels and an emphasis upon promotion strategies appear to play a role in the success of high-end retailers, and may have implications for any heightened competitive responses by larger retail chains in the future.

Keywords
product differentiation; retail pricing; hedonic price model; sustainability; eco-labels; haddock

Journal
Sustainability: Volume 10, Issue 5

People

Professor Jimmy Young

Emeritus Professor, Marketing & Retail