How often, how much? An analysis of Label Rouge salmon purchases in France

Abstract

We investigated the purchases of salmon sold under the Label Rouge quality label in France. A flexible infrequency of purchases model was estimated using French scanner data. The results show that consumers’ perceptions differ substantially between fresh salmon labeled as Label Rouge and other fresh salmon and confirm that Label Rouge results in product differentiation. Furthermore, consumers of Label Rouge salmon neither reduce the consumption frequency of Label Rouge salmon nor switches to other types of fish when the price of Label Rouge salmon increases. However, total sales of Label Rouge salmon will be reduced when the price increases. The average Label Rouge consumer is an older middle-class person from Paris. Marketing activities should specifically target this group of consumers.