Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

Fabrice Larceneux (), Florence Benoît-Moreau and Valérie Renaudin
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Fabrice Larceneux: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Florence Benoît-Moreau: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Valérie Renaudin: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: An organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2×2 experimental design using real consumers (N0122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed.

Keywords: Organic; label; .; Brand; equity; .; Label; equity; .; Cobranding; .; Perceived; quality (search for similar items in EconPapers)
Date: 2012-01-01
New Economics Papers: this item is included in nep-agr and nep-mkt
Note: View the original document on HAL open archive server: https://hal.science/hal-00656485v1
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Published in Journal of Consumer Policy, 2012, 35 (1), pp.85-104, ISSN 0168-7034. ⟨10.1007/s10603-011-9186-1⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00656485

DOI: 10.1007/s10603-011-9186-1

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