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Sustainable consumption and third-party certification labels: Consumers’ perceptions and reactions

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  • Brach, Simon
  • Walsh, Gianfranco
  • Shaw, Deirdre

Abstract

Compared with conventional products, sustainable products continue to attract relatively lower market shares. To increase customer acceptance, many sustainable products feature third-party certification labels (TPCL), yet it is unclear whether TPCL are effective and what processes and boundary conditions define their role in consumer decision making. Across three experimental studies, this research determines that sustainable products are characterized by credence qualities, associated with increased perceptions of risk, which negatively influence consumers' purchase intentions. Drawing on signaling theory, this study also shows that TPCL on sustainable products provide brand-like information cues that reduce the perceived risk of sustainable products. Finally, a third experimental study demonstrates that consumers must perceive TPCL as credible for them to reduce consumers’ risk perceptions.

Suggested Citation

  • Brach, Simon & Walsh, Gianfranco & Shaw, Deirdre, 2018. "Sustainable consumption and third-party certification labels: Consumers’ perceptions and reactions," European Management Journal, Elsevier, vol. 36(2), pages 254-265.
    • Handle: RePEc:eee:eurman:v:36:y:2018:i:2:p:254-265
    DOI: 10.1016/j.emj.2017.03.005
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    4. Brigitta Plasek & Zoltán Lakner & Ágoston Temesi, 2022. "Environmental, Health or Social Impacts? Investigating Ethical Food Consumption Behavior in the Case of Palm Oil-Free Foods," Sustainability, MDPI, vol. 14(15), pages 1-12, August.
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    7. Stutz, Adrian & Schell, Sabrina & Hack, Andreas, 2022. "In family firms we trust – Experimental evidence on the credibility of sustainability reporting: A replication study with extension," Journal of Family Business Strategy, Elsevier, vol. 13(4).
    8. Bartłomiej Kabaja & Magdalena Wojnarowska & Marek Ćwiklicki & Stefania Claudia Buffagni & Erica Varese, 2023. "Does Environmental Labelling Still Matter? Generation Z’s Purchasing Decisions," Sustainability, MDPI, vol. 15(18), pages 1-19, September.

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