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Consumers’ Preferences for Eco-labels on Plants: The Influence of Trust and Consequentiality Perceptions

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  • Khachatryan, Hayk
  • Rihn, Alicia
  • Wei, Xuan

Abstract

The primary objective of this research was to investigate the role of trust and consequentiality perceptions on consumer preferences for products with eco-labels. Consumer preferences and willingness-to-pay (WTP) were estimated for fruit plants with and without eco-labels using choice experiments from an online survey. Respondents were randomly assigned to different consequentiality treatments which indicated the organization (policy makers or horticulture industry) that would receive the study results when considering policies related to eco-labels. Respondents’ trust in the organizations behind the eco-labels and their perceptions of the study's consequentiality were measured. In general, eco-labels and perceived consequentiality increased respondents’ utility for the products. Respondents’ utility for eco-labeled products was amplified when participants were informed that policy makers would receive the results. Trust in the organization improved utility, suggesting trust plays an important role in consumer preferences and valuation of credence attributes.

Suggested Citation

  • Khachatryan, Hayk & Rihn, Alicia & Wei, Xuan, 2021. "Consumers’ Preferences for Eco-labels on Plants: The Influence of Trust and Consequentiality Perceptions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 91(C).
    • Handle: RePEc:eee:soceco:v:91:y:2021:i:c:s2214804320307023
    DOI: 10.1016/j.socec.2020.101659
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    Cited by:

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    4. Nakaishi, Tomoaki & Chapman, Andrew, 2024. "Eco-labels as a communication and policy tool: A comprehensive review of academic literature and global label initiatives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 202(C).

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    More about this item

    Keywords

    Choice experiment; Credence attributes; Mixed logit model; Sustainable production practices; Willingness-to-pay;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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