Synthesis of Constructs for Modeling Consumers’ Understanding and Perception of Eco-Labels

Khan Md Raziuddin Taufique, Chamhuri Siwar, Basri Talib, Farah Hasan Sarah and Norshamliza Chamhuri
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Khan Md Raziuddin Taufique: Institute for Environment & Development, National University of Malaysia (UKM), 43600 Bangi, Selangor DE, Malaysia
Chamhuri Siwar: Institute for Environment & Development, National University of Malaysia (UKM), 43600 Bangi, Selangor DE, Malaysia
Basri Talib: Faculty of Economics & Management, National University of Malaysia (UKM), 43600 Bangi, Selangor DE, Malaysia
Farah Hasan Sarah: School of Business & Economics, United International University, Dhanmondi, 1209 Dhaka, Bangladesh
Norshamliza Chamhuri: Faculty of Economics & Management, National University of Malaysia (UKM), 43600 Bangi, Selangor DE, Malaysia

Sustainability, 2014, vol. 6, issue 4, 1-25

Abstract: The term “eco-labeling” has become a buzzword in today’s sustainable business world. The use of eco-labeling in various forms has been increasing notably for past many years, sometimes as an environmental “requirement” and sometimes merely as a marketing tool. Questions arise about how well these eco-labels are attended and understood by consumers. However, though mentionable studies are found on various aspects of eco-labels, gaps exist in exploring an inclusive set of parameters for investigating consumer perceptions of eco-labels. This paper aims at preparing a synthesis of all the possible factors to be incorporated for measuring consumer perceptions of eco-labeling of products. For making such synthesis, all major works in the field have been thoroughly reviewed. The paper comes up with a total of 10 parameters that include consumer awareness, consumer knowledge, consumer involvement, consumer trust, design and visibility, credibility of the source, type and level of information, clarity of meaning, persuasiveness, and private benefits. This tentative, yet inclusive, set of parameters is thought to be useful for designing large scale future empirical researches for developing a dependable inclusive set of parameters to test consumer understanding and perceptions of eco-label. A framework is proposed for further empirical research.

Keywords: eco-label; sustainable business; environment-friendly product; consumer perception; parameters (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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