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Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects

Author

Listed:
  • Fabrice Larceneux

    () (DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

  • Florence Benoît-Moreau

    (DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

  • Valérie Renaudin

    (DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)

Abstract

An organic label offers a market signal for producers of organic food products. In Western economies, the label has gained high recognition, but organic food still represents a small part of total food consumption, which raises questions about the label's efficacy. By considering organic labels as a signal of quality for consumers, this article studies how this signal interacts with brand signals when both are visible to consumers, applying a cobranding framework. This research examines the moderating effect of the brand on organic label effects. In a 2×2 experimental design using real consumers (N0122) in a shopping context, it found that, depending on brand equity, the marginal effect of organic labelling information in terms of perceived product quality varies. In particular, when brand equity is high (low), the organic label appears less (more) effective. However, regardless of the brand equity level, an organic label makes the environmentally friendly attribute salient, which has a positive impact on perceived quality. Pertinent implications for marketing and public policy are discussed.

Suggested Citation

  • Fabrice Larceneux & Florence Benoît-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print hal-00656485, HAL.
  • Handle: RePEc:hal:journl:hal-00656485
    DOI: 10.1007/s10603-011-9186-1
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00656485
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    References listed on IDEAS

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    Cited by:

    1. Ishaq, Muhammad Ishtiaq & Hussain, Nazia & Asim, Ali Ijaz & Cheema, Luqman J., 2014. "Valor da marca na indústria hoteleira paquistanesa," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 54(3), May.
    2. Christoph Müller & Hansjörg Gaus, 2015. "Consumer Response to Negative Media Information About Certified Organic Food Products," Journal of Consumer Policy, Springer, vol. 38(4), pages 387-409, December.
    3. Debra Riley & Peter Martins da Silva & Sabrina Behr, 2015. "The Impact of Packaging Design on Health Product Perceptions," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 81-89, July.
    4. repec:kap:jcopol:v:40:y:2017:i:3:d:10.1007_s10603-017-9355-y is not listed on IDEAS
    5. Cosmina Bradu & Jacob Orquin & John Thøgersen, 2014. "The Mediated Influence of a Traceability Label on Consumer’s Willingness to Buy the Labelled Product," Journal of Business Ethics, Springer, vol. 124(2), pages 283-295, October.
    6. Tebbe, Eva & von Blanckenburg, Korbinian, 2017. "Does willingness to pay increase with the number and strictness of sustainability labels?," Annual Conference 2016 (Augsburg): Demographic Change 145556, Verein für Socialpolitik / German Economic Association.
    7. repec:eee:jbrese:v:83:y:2018:i:c:p:186-201 is not listed on IDEAS
    8. Guzhen Zhou & Wuyang Hu & Wenchao Huang, 2016. "Are Consumers Willing to Pay More for Sustainable Products? A Study of Eco-Labeled Tuna Steak," Sustainability, MDPI, Open Access Journal, vol. 8(5), pages 1-18, May.
    9. Anna Paola Antonazzo & Mariantonietta Fiore & Piermichele La Sala & Francesco Contò, 2015. "Assessing perceptions of wine tourists on organic wine," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 17(2), pages 57-76.
    10. Chia-Lin Lee, 2014. "Is Co-Branding a Double-Edged Sword for Brand Partners?," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 19-34.

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    Keywords

    Organic label . Brand equity . Label equity . Cobranding . Perceived quality;

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