What is the added value of an organic label? Proposition of a model of transfer from the perspective of ingredient branding

ABSTRACT

This paper investigates the added value of an organic ingredient strategy and the transfer mechanisms at work when placing an organic label on product brands. We proposed and empirically tested an integrated model that included three stages: brand and label equity; transfer mechanisms; and product evaluation. We first selected an organic label and product brands and then tested our hypotheses with a sample of French consumers. The results confirm the positive influence of brand and label equity on transfer mechanisms (brand/label perceived fit and ease of transfer) and, in turn, illustrate how ease of transfer influences the overall product evaluation. A surprising result is that brand/label perceived fit does not directly affect the overall product evaluation; rather, it only influences brand/label ease of transfer.