Consumer perceptions of carbon labeling in print advertising: Hype or effective communication strategy?

Eco-labels are being used more frequently in the marketplace. Recently, carbon-neutral labels have emerged on product packaging and advertisements as a popular form of eco-label. How consumers view these specific labels is of both conceptual and practical interest. Therefore, in a mixed-experimental design building on congruity theory and Deighton's two-step model of advertising effectiveness, the authors examine how consumers view the credibility and environmental concern of companies who use these labels, as well as their resulting purchase intentions. A 2(product) × 2(label) × 3(information) mixed design was used to examine consumer perceptions and behavior intentions. Product category (environmentally neutral vs. environmentally harmful) was a within-subjects factor; the presence/absence of the carbon-neutral label and information (positive/negative/control) was both manipulated between-subjects factors. Results show that the presence of a carbon-neutral label in an advertisement, regardless of the type of product, leads to more favorable perceptions of company environmental concern. However, there is a more pronounced increase in consumer perceptions of company environmental concern for an environmentally harmful product than for an environmentally neutral product.     

Eco-labels, Trade and Protectionism

Eco-labels are suspected to serve protectionist purposes. We analyze the choice between an environmental standard and a voluntary eco-label scheme in a partial trade model with one domestic firm and one foreign firm. The environmental standard will only apply to the domestic firm, while both firms can adopt the eco-label. Pollution is production related, and domestic consumers demand products that are produced in an “environmentally friendly” way. Our results show that it may be optimal for the domestic government to introduce an eco-label and get both firms to adopt the label, instead of setting an environmental standard. However, to what extent this policy serves protectionist purposes is ambiguous. In particular, if the willingness to pay for green products is sufficient to cover the pollution abatement costs of the foreign firm, foreign firm profit will increase while domestic firm profit will decrease compared to the outcome with a domestic environmental standard. On the other hand, if the willingness to pay for green products is insufficient, the foreign firm would be better off with a domestic environmental standard.     

The impact of consumer confusion from eco-labels on negative WOM,distrust, and dissatisfaction

For decades companies have added eco-labels to products to gain a competitive advantage and inform consumers about the environmental impact of products. Although benefits of eco-labels have been investigated previously, negative outcomes related to the proliferation of these labels have not been studied until this point. This study investigates the impact of eco-labels on a variety of forms of consumer confusion, specifically studying whether this confusion has a direct or indirect effect on negative word-of-mouth, distrust, and dissatisfaction, as mediated by negative emotion. The results from a quasi-experimental field study that employs a between-subject design from the food and detergent industries show that similarity, overload, and ambiguity confusion lead to negative emotion, negative word-of-mouth, distrust, and dissatisfaction. This study also shows that negative emotion mediates the effect of three confusion constructs on dependent variables, such as negative word-of-mouth, distrust, and dissatisfaction. This study presents theoretical and practical implications, limitations, and future research avenues in the areas of consumer confusion and eco-labeling.     

The Hidden Costs of Soil Mining to Agricultural Sustainability in Developing Countries: A Case Study of Machakos District,Eastern Kenya

With respect to the idea of multifunctional agriculture, one way to raise farmers' environmental stewardship is to reward environmental practices through food quality labelling schemes. The objective of our study was to identify existing relationships between the production of quality food and the production of environmental goods at farm level. In this article, we report the results of analyses conducted to examine the effects of major ‘quality’ and ‘eco-labelling’ schemes in the Midi-Pyrenees region of the south of France. Factor analysis and analysis of variance were used with a data set of 107 farms—some participating in the labelling schemes and some not participating—for which environmental scores had been assigned. The statistical analyses were complemented by a qualitative analysis based on in-depth interviews of 85 farmers and review of the labelling standard guidelines. This study shows that organic farms and farms enrolled in various quality and eco-labelling programmes in France do provide some environmental benefits. However, they do not necessarily perform better than other farms on all environmental measures.     

Modelling the antecedents of consumers' willingness to pay for eco-labelled food products

The purpose of this paper is to model the antecedents of consumers' willingness to pay for eco-labelled food products. This research utilizes the Theory of Planned Behaviour to model the impact of consumers' awareness of eco-labels, environmental concerns, beliefs in the environmental ability of eco-labels, and presence of children on their willingness to pay for eco-labelled food products. This study uses structural equational modelling and PROCESS macros, to test the moderated mediation model on a sample of 333 online responses. Findings suggest the impact of consumers' environmental concerns and eco-label awareness on their willingness to pay for eco-labelled food products is partially mediated by consumers' belief in the environmental ability of these eco-labels. The relationship is further moderated by the presence of children living in the household. This study establishes the value of consumers' beliefs in the environmental ability of eco-labels and implies that communication strategies need to be carefully refined to provide consumers with more information about eco-labels and to emphasize the environmental ability of eco-labels utilized within the food industry as this can have an impact on their willingness to pay for these products, especially for consumers, who have children in the same household.     

Effects of shared characteristics between eco-labels: A case for organic and local food

Food labels are created to reduce information asymmetry and help consumers make better food choices. However, the labels may have unanticipated effects, especially when they share common characteristics that may introduce confusion in making food choices. This study investigates how perceived relationships between different food labels may affect the price premiums of organic and local attributes for milk and fresh strawberries. Results show that the impacts of perception vary by product and label, and different food labels could positively affect price premiums on organic and local products. Results provide policy implications for better labeling and educational programs to reduce inadvertent confusion and improve consumer decision-making.