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The Promising Effect of a Green Food Label in the New Online Market

Author

Listed:
  • Yu Jiang

    (China Academy for Rural Development (CARD), Zhejiang University, Hangzhou 310058, China)

  • H. Holly Wang

    (Department of Agricultural Economics, Purdue University, West Lafayette, IN 47907, USA)

  • Shaosheng Jin

    (China Academy for Rural Development (CARD), Zhejiang University, Hangzhou 310058, China)

  • Michael S. Delgado

    (Department of Agricultural Economics, Purdue University, West Lafayette, IN 47907, USA)

Abstract

Although public interest in sustainable and safer products have steadily risen worldwide, research has shown a difference between consumer’s willingness to purchase, and actual purchasing behavior, for which two main explanations exist, including a lack of accessibility and a poor knowledge of related attributes. Fortunately, the emergence of online food markets may improve this situation through convenient accessibility to sustainable food and detailed description about sustainability labels. This research uses a hedonic price analysis to compare the price premiums for the sustainability attribute in Chinese online and offline markets, using edible oil as a case. The specific objective is to test the different values of a sustainable attribute, a green food label, in two types of markets. Results show that the green food attribute could gain a price premium in the online market but not in the offline market, indicating the importance of the online channel for sustainable food sale in China. A big price mechanism difference between online and offline markets is also found, with regard to attributes of production method, variety, place of origin, packaging, and discount. These results provide a guide for firms’ pricing strategies in online and offline markets.

Suggested Citation

  • Yu Jiang & H. Holly Wang & Shaosheng Jin & Michael S. Delgado, 2019. "The Promising Effect of a Green Food Label in the New Online Market," Sustainability, MDPI, vol. 11(3), pages 1-14, February.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:3:p:796-:d:203208
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    Cited by:

    1. H. Holly Wang & Yu Jiang & Shaosheng Jin & Qiujie Zheng, 2022. "New online market connecting Chinese consumers and small farms to improve food safety and environment," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 305-324, December.
    2. H. Holly Wang & Jing Yang & Na Hao, 2022. "Consumers’ Willingness to Pay for Rice from Remediated Soil: Potential from the Public in Sustainable Soil Pollution Treatment," IJERPH, MDPI, vol. 19(15), pages 1-22, July.
    3. Angelo Corallo & Maria Elena Latino & Marta Menegoli & Alessandra Spennato, 2019. "A Survey to Discover Current Food Choice Behaviors," Sustainability, MDPI, vol. 11(18), pages 1-17, September.
    4. Yu Jiang & H. Holly Wang & Shaosheng Jin, 2023. "Mobilising the public to fight poverty using anti‐poverty labels in online food markets: Evidence from a real experimental auction," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 168-190, February.
    5. Angelo Corallo & Maria Elena Latino & Marta Menegoli & Biagia De Devitiis & Rosaria Viscecchia, 2019. "Human Factor in Food Label Design to Support Consumer Healthcare and Safety: A Systematic Literature Review," Sustainability, MDPI, vol. 11(15), pages 1-14, July.
    6. Ito, Noriko & Inoue, Sotaro & Higuchi, Tomoo & Kobayashi, Hiroaki & Mori, Romio & Ishida, Takashi, 2022. "Consumers’ Attitudes toward Online Food Purchases in China: Segmentation Analysis of Online Food Market," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 24.
    7. Kamil Czwartkowski & Arkadiusz Wierzbic & Wojciech Golimowski, 2022. "Quality, Key Production Factors, and Consumption Volume of Niche Edible Oils Marketed in the European Union," Sustainability, MDPI, vol. 14(3), pages 1-17, February.

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