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

Sigurdsson, Valdimar, Larsen, Nils Magne, Pálsdóttir, Rakel Gyða, Folwarczny, Michal, Menon, R.G. Vishnu and Fagerstrøm, Asle (2022) Increasing the effectiveness of ecological food signaling: comparing sustainability tags with eco-labels. Journal of Business Research, 139, 1099-1110. (doi:10.1016/j.jbusres.2021.10.052).

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.

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Contributors

Author: R.G. Vishnu Menon

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