Much ado about nothing? An empirical analysis of consumer behaviour in the presence of ‘dual food quality’

Abstract

Marketing food products with slightly different compositions as identical across countries is a common practice in the food industry. While food companies argue that different versions reflect taste preferences, some Central and Eastern European consumers allege that multinational companies sell lower quality products using the same brand name and packaging as in Western European countries. The political attention gathered by this practice, exemplified by the dual food quality (DFQ) debate in the European Union (EU), has largely neglected how the presence of DFQ affects consumers’ purchase decisions. This study aims to help fill this gap. Additionally, it examines the impact of a policy intervention consisting of a ‘made for’ claim and the role of the brand name on consumer choices. Through online discrete-choice experiments and laboratory tasting and rating experiments in six EU countries, no systematic support is found for either the industry’s or the consumers’ arguments. Results also indicate that a policy requiring consumers to be informed about the destination market of different versions would increase consumers’ valuation of domestic products, while at the same time improving transparency and avoiding misleading consumers.