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

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  • Sigurdsson, Valdimar
  • Larsen, Nils Magne
  • Pálsdóttir, Rakel Gyða
  • Folwarczny, Michal
  • Menon, R.G. Vishnu
  • Fagerstrøm, Asle

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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  • Sigurdsson, Valdimar & Larsen, Nils Magne & Pálsdóttir, Rakel Gyða & Folwarczny, Michal & Menon, R.G. Vishnu & Fagerstrøm, Asle, 2022. "Increasing the effectiveness of ecological food signaling: Comparing sustainability tags with eco-labels," Journal of Business Research, Elsevier, vol. 139(C), pages 1099-1110.
    • Handle: RePEc:eee:jbrese:v:139:y:2022:i:c:p:1099-1110
    DOI: 10.1016/j.jbusres.2021.10.052
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    3. A. Saidi & G. Sacchi & C. Cavallo & G. Cicia & R. Di Monaco & S. Puleo & T. Del Giudice, 2022. "Drivers of fish choice: an exploratory analysis in Mediterranean countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-25, December.
    4. Sigurdsson, Valdimar & Larsen, Nils Magne & Folwarczny, Michał & Fagerstrøm, Asle & Menon, R.G. Vishnu & Sigurdardottir, Freyja Thoroddsen, 2023. "The importance of relative customer-based label equity when signaling sustainability and health with certifications and tags," Journal of Business Research, Elsevier, vol. 154(C).
    5. Svetlana Tulaeva & Maria Tysiachniouk & Minna Pappila & Minni Tynkkynen, 2023. "Marine Stewardship Council Certification in Finland and Russia: Global Standards and Local Practices," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    6. Alejandro Hirmas & Jan B. Engelmann, 2024. "Learning the value of Eco-Labels: The role of information in sustainable decisions," Tinbergen Institute Discussion Papers 24-024/I, Tinbergen Institute.
    7. Rosamartina Schena & Domenico Morrone & Angeloantonio Russo, 2023. "The competition between private label and national brand through the signal of Euro‐leaf," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6169-6181, December.
    8. Gorton, Matthew & Yeh, Ching-Hua & Chatzopoulou, Elena & White, John & Tocco, Barbara & Hubbard, Carmen & Hallam, Fiona, 2023. "Consumers' willingness to pay for an animal welfare food label," Ecological Economics, Elsevier, vol. 209(C).
    9. Kristia Kristia & Sándor Kovács & Zoltán Bács & Mohammad Fazle Rabbi, 2023. "A Bibliometric Analysis of Sustainable Food Consumption: Historical Evolution, Dominant Topics and Trends," Sustainability, MDPI, vol. 15(11), pages 1-24, June.
    10. Rakhshan Ummar & Kanwal Shaheen & Iram Bashir & Junaid Ul Haq & Mark A. Bonn, 2023. "Green Social Media Campaigns: Influencing Consumers’ Attitudes and Behaviors," Sustainability, MDPI, vol. 15(17), pages 1-15, August.
    11. Xingyuan Wang & Yingying Du & Yun Liu & Shuyang Wang, 2022. "Telling You More Fluently: Effect of the Joint Presentation of Eco-Label Information on Consumers’ Purchase Intention," IJERPH, MDPI, vol. 19(20), pages 1-19, October.
    12. Sigurdsson, Valdimar & Larsen, Nils Magne & Folwarczny, Michał & Sigurdardottir, Freyja Thoroddsen & Menon, R.G. Vishnu & Fagerstrøm, Asle, 2024. "Big business returns on B Corp? Growing with green & lean as any label is a good label," Journal of Business Research, Elsevier, vol. 170(C).
    13. Sofia Brito-Ramos & Maria Céu Cortez & Florinda Silva, 2022. "Do sustainability signals diverge? An analysis of labeling schemes for socially responsible investments ," Working Papers hal-04064367, HAL.
    14. Sigurdsson, Valdimar & Folwarczny, Michał & Larsen, Nils Magne & Menon, R.G. Vishnu & Sigurdardottir, Freyja Thoroddsen & Perkovic, Sonja, 2024. "Utilizing consumer-based label equity to signal consumer products free from endocrine-disrupting chemicals," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).

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