Willingness to Pay for Multiple Seafood Labels in a Niche Market

TLDR

Regulatory changes and evolving consumer preferences have prompted seafood products to carry multiple information labels. The study seeks to determine how multilabeled seafood influences consumer choice to inform marketing strategies. Using a choice experiment on two seafood species at a Portland niche‑market grocery chain, the authors evaluated consumer preferences for safety, quality, local, and ecolabels. All labels significantly affect choice, with local and ecolabels generating the highest willingness‑to‑pay estimates; ecolabels show broader individual WTP variation, and local label preferences remain stable regardless of additional labels, highlighting opportunities for niche‑market labeling programs.

Abstract

Regulatory requirements and shifts in consumer preferences have resulted in seafood products bearing multiple information labels. Developing successful seafood marketing strategies requires an understanding of how multilabeled products influence consumer choices. We analyze preferences for four classes of seafood information labels including safety, quality, local, and ecolabels using data from a choice experiment for two seafood species. Data was collected at a grocery chain focused on niche markets in Portland, Oregon. Each label is found to have a significant influence on consumer choice, with local labels and ecolabels yielding the largest estimates of consumer mean willingness to pay. Ecolabels yield a wider range of individual willingness to pay estimates compared to the other labels, and preferences for the local label are not affected by the appearance of additional information labels on the same product. Results suggest opportunities for advancing niche market strategies, including the development of local seafood labeling programs.