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

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

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.

Active retailing, Eco-labels, Environmental sustainability, Multi-attribute decision making, Sustainability signaling, Sustainability tags
0148-2963
1099-1110
Sigurdsson, Valdimar
7d4995e2-b6b4-4d04-be74-1ffac6aef3ba
Larsen, Nils Magne
1f19fc32-7a6f-4063-9d0f-b4037f0bea65
Pálsdóttir, Rakel Gyða
e939d8b7-462b-4524-95fd-dfb9ade75965
Folwarczny, Michal
c18ff1c2-7e33-4455-9dc4-3f636e66d8fd
Menon, R.G. Vishnu
cf91657e-cd61-4431-9e25-c6ad94ba9ee0
Fagerstrøm, Asle
2e7ab829-2193-43a6-8264-c10cc63e2fb1
Sigurdsson, Valdimar
7d4995e2-b6b4-4d04-be74-1ffac6aef3ba
Larsen, Nils Magne
1f19fc32-7a6f-4063-9d0f-b4037f0bea65
Pálsdóttir, Rakel Gyða
e939d8b7-462b-4524-95fd-dfb9ade75965
Folwarczny, Michal
c18ff1c2-7e33-4455-9dc4-3f636e66d8fd
Menon, R.G. Vishnu
cf91657e-cd61-4431-9e25-c6ad94ba9ee0
Fagerstrøm, Asle
2e7ab829-2193-43a6-8264-c10cc63e2fb1

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).

Record type: Article

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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Accepted/In Press date: 21 October 2021
e-pub ahead of print date: 30 October 2022
Published date: 30 October 2022
Keywords: Active retailing, Eco-labels, Environmental sustainability, Multi-attribute decision making, Sustainability signaling, Sustainability tags

Identifiers

Local EPrints ID: 495415
URI: http://eprints.soton.ac.uk/id/eprint/495415
ISSN: 0148-2963
PURE UUID: 42582295-99e3-4a6f-b81a-7b1dd14fe977
ORCID for R.G. Vishnu Menon: ORCID iD orcid.org/0000-0002-0835-5338

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Date deposited: 13 Nov 2024 17:32
Last modified: 07 Dec 2024 03:16

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Contributors

Author: Valdimar Sigurdsson
Author: Nils Magne Larsen
Author: Rakel Gyða Pálsdóttir
Author: Michal Folwarczny
Author: R.G. Vishnu Menon ORCID iD
Author: Asle Fagerstrøm

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