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Journal of Consumer Policy

, Volume 28, Issue 1, pp 53–73 | Cite as

The Reliability of Certification: Quality Labels as a Consumer Policy Tool

  • Gabriele Jahn
  • Matthias Schramm
  • Achim Spiller
Article

Abstract

Given the large number of certification systems in the food industry, it is surprising that there are only a few research approaches to the economics of certification. Certification schemes are used to ensure marketing claims for unobservable quality attributes. Under asymmetric information, process-oriented quality characteristics such as organic farming, animal welfare, or fair trade raise the question of mislabelling. In the long run, only a reliable control procedure can reduce the risk of food scandals. The article presents a model which includes several starting points to enhance the efficiency of certification systems and the corresponding labels. On the whole, tendencies towards price wars on the certification market and considerable differences in performance reveal the necessity of institutional changes. Strategies for reducing auditors’ dependence, intensifying liability, increasing reputation effects, and minimizing audit costs are suggested. Finally, policy implications for public and private monitoring are discussed.

Keywords

Marketing Fair Trade Quality Attribute Institutional Change Asymmetric Information 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer 2005

Authors and Affiliations

  • Gabriele Jahn
    • 1
  • Matthias Schramm
    • 1
  • Achim Spiller
    • 2
  1. 1.Research AssistantsUniversity of GoettingenGoettingenGermany
  2. 2.Professor of Food Marketing at the Institute of Agricultural EconomicsUniversity of GoettingenGoettingenGermany

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