What determines consumers' use of eco-labels? Taking a close look at label trust

Matthew Gorton, Barbara Tocco, Ching-Hua Yeh and Monika Hartmann

Ecological Economics, 2021, vol. 189, issue C

Abstract: Eco-labels are informational cues that transform credence into quasi-search attributes but their influence on consumer decision making is often disappointing. This paper identifies antecedents of trust in, and use of, eco-labels, validating a theoretical model with data for four publicly managed organic labels (the EU green leaf and three national labels from France, Germany and Serbia). Drawing on a large dataset of European consumers, the analysis reveals that the effect of institutional trust on use of an eco-label is mediated by trust in that eco-label. Trust in an eco-label positively affects use of that eco-label. Knowledge of third-party certification positively affects trust in, and use of, an eco-label. The results suggest that for eco-label managers wishing to increase consumer uptake of their labels, communicating third-party verification as is a critically important informational cue for enhancing consumer trust.

Keywords: Eco-Labels; Trust; Consumer behavior; Organic food; EU (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:189:y:2021:i:c:s0921800921002317

DOI: 10.1016/j.ecolecon.2021.107173

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