Information asymmetries, labels and trust in the German food market: A critical analysis based on the economics of information

Socio-ecological product qualities and aspects concerning healthy and functional food products form credence qualities that often lead to scepticism and mistrust on the part of consumers. This paper looks at how German food-processing companies transform these credence qualities into ‘quasi-search’ qualities by using signalling instruments such as labels, self-declarations, product brands, corporate brands, personality and internet presence. Based on an explorative, qualitative study of selected corporate documents, these signalling instruments will be discussed and it will be shown by the identification of certain ‘signalling types’ that the transformation of credence qualities into ‘quasi-search’ qualities is a complex phenomenon that is influenced by multiple factors.