Effects of social responsibility labelling and brand on willingness to pay for apparel

This study examined changes in consumer willingness to pay (WTP) for apparel products as labour‐related information and brand were added. Tobit analysis of auction bids from 121 university students for t‐shirts showed men, Hispanics and consumers who believe in social responsibility and fair trade had significantly higher WTP once labour‐related labelling was added. The amount and complexity of information did not matter, leaving substantial leeway to companies in crafting their message. Adding brand significantly increased WTP for two better‐known brands while not changing WTP for the social responsibility messages. Results suggested brands can benefit from stressing social responsibility‐related attributes of products.