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What determines consumers' use of eco-labels? Taking a close look at label trust

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  • Gorton, Matthew
  • Tocco, Barbara
  • Yeh, Ching-Hua
  • Hartmann, Monika

Abstract

Eco-labels are informational cues that transform credence into quasi-search attributes but their influence on consumer decision making is often disappointing. This paper identifies antecedents of trust in, and use of, eco-labels, validating a theoretical model with data for four publicly managed organic labels (the EU green leaf and three national labels from France, Germany and Serbia). Drawing on a large dataset of European consumers, the analysis reveals that the effect of institutional trust on use of an eco-label is mediated by trust in that eco-label. Trust in an eco-label positively affects use of that eco-label. Knowledge of third-party certification positively affects trust in, and use of, an eco-label. The results suggest that for eco-label managers wishing to increase consumer uptake of their labels, communicating third-party verification as is a critically important informational cue for enhancing consumer trust.

Suggested Citation

  • Gorton, Matthew & Tocco, Barbara & Yeh, Ching-Hua & Hartmann, Monika, 2021. "What determines consumers' use of eco-labels? Taking a close look at label trust," Ecological Economics, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:ecolec:v:189:y:2021:i:c:s0921800921002317
    DOI: 10.1016/j.ecolecon.2021.107173
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