Increasing the effectiveness of ecological food signaling: Comparing sustainability tags with eco-labels

Valdimar Sigurdsson, Nils Magne Larsen, Rakel Gyða Pálsdóttir, Michal Folwarczny, R.G. Vishnu Menon and Asle Fagerstrøm

Journal of Business Research, 2022, vol. 139, issue C, 1099-1110

Abstract: The effectiveness of eco-labels has dominated research on food signaling. Building on signaling theory, we investigate the impact of sustainability tags–unverified sustainability claims–compared to eco-labels–actual awarded eco-certificates–on consumer choice and the willingness to pay (WTP). We add to the underdeveloped “non eco-labels” literature on sustainability signaling by documenting that a green sustainability tag has a higher importance score and utility than an eco-label. The tag leads to larger “green segments” valuing sustainability as the most important attribute when buying fish. Furthermore, consumers are willing to pay 23.1% more for fillets with sustainability tags. This is significantly higher than the additional value ascribed to the Marine Stewardship Council (MSC) eco-labelled fillets. The majority of consumers surveyed were unfamiliar with frequently used seafood eco-labels (Aquaculture Stewardship Council (ASC)/MSC). Thus, the increase in WTP is mediated by perceived familiarity, wherein tags are rated higher in familiarity compared to eco-labels.

Keywords: Sustainability signaling; Sustainability tags; Eco-labels; Active retailing; Environmental sustainability; Multi-attribute decision making (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:139:y:2022:i:c:p:1099-1110

DOI: 10.1016/j.jbusres.2021.10.052

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