The Promising Effect of a Green Food Label in the New Online Market

Yu Jiang, H. Holly Wang, Shaosheng Jin and Michael S. Delgado
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Yu Jiang: China Academy for Rural Development (CARD), Zhejiang University, Hangzhou 310058, China
Michael S. Delgado: Department of Agricultural Economics, Purdue University, West Lafayette, IN 47907, USA

Sustainability, 2019, vol. 11, issue 3, 1-14

Abstract: Although public interest in sustainable and safer products have steadily risen worldwide, research has shown a difference between consumer’s willingness to purchase, and actual purchasing behavior, for which two main explanations exist, including a lack of accessibility and a poor knowledge of related attributes. Fortunately, the emergence of online food markets may improve this situation through convenient accessibility to sustainable food and detailed description about sustainability labels. This research uses a hedonic price analysis to compare the price premiums for the sustainability attribute in Chinese online and offline markets, using edible oil as a case. The specific objective is to test the different values of a sustainable attribute, a green food label, in two types of markets. Results show that the green food attribute could gain a price premium in the online market but not in the offline market, indicating the importance of the online channel for sustainable food sale in China. A big price mechanism difference between online and offline markets is also found, with regard to attributes of production method, variety, place of origin, packaging, and discount. These results provide a guide for firms’ pricing strategies in online and offline markets.

Keywords: online market; sustainable attributes; hedonic price analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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