Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects
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.
|Date of creation:||01 Jan 2012|
|Date of revision:|
|Publication status:||Published, Journal of Consumer Policy, 2012, 35, 1, 85-104, ISSN 0168-7034|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00656485|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Boulding, William & Kirmani, Amna, 1993. " A Consumer-Side Experimental Examination of Signaling Theory: Do Consumers Perceive Warranties as Signals of Quality?," Journal of Consumer Research, University of Chicago Press, vol. 20(1), pages 111-23, June.
- Jutta Roosen & Jayson L. Lusk & John A. Fox, 2003.
"Consumer demand for and attitudes toward alternative beef labeling strategies in France, Germany, and the UK,"
John Wiley & Sons, Ltd., vol. 19(1), pages 77-90.
- Roosen, Jutta & Lusk, Jayson L. & Fox, John A., 2001. "Consumer Demand For And Attitudes Toward Alternative Beef Labeling Strategies In France, Germany, And The Uk," 2001 Annual meeting, August 5-8, Chicago, IL 20643, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Pearce, David W, 1991. "The Role of Carbon Taxes in Adjusting to Global Warming," Economic Journal, Royal Economic Society, vol. 101(407), pages 938-48, July.
- Carpenter, Marie & Larceneux, Fabrice, 2008. "Label equity and the effectiveness of values-based labels: an experiment with two French Protected Geographic Indication labels," Economics Papers from University Paris Dauphine 123456789/5475, Paris Dauphine University.
- Nelson, Philip, 1974. "Advertising as Information," Journal of Political Economy, University of Chicago Press, vol. 82(4), pages 729-54, July/Aug..
- Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-83, December.
- Gabriele Jahn & Matthias Schramm & Achim Spiller, 2005. "The Reliability of Certification: Quality Labels as a Consumer Policy Tool," Journal of Consumer Policy, Springer, vol. 28(1), pages 53-73, December.
- Zanoli, Raffaele & Naspetti, Simona, 2002. "Consumer motivations in the purchase of organic food. A means-end approach," MPRA Paper 32712, University Library of Munich, Germany.
- Rao, Akshay R & Monroe, Kent B, 1988. " The Moderating Effect of Prior Knowledge on Cue Utilization in Product Evaluations," Journal of Consumer Research, University of Chicago Press, vol. 15(2), pages 253-64, September.
- Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economics Reports 34069, United States Department of Agriculture, Economic Research Service.
- McGarry Wolf, Marianne & Butler, Leslie J. & Martin, Adam J. & Foltz, Jeremy D., 2009. "Factors Influencing the Purchase Decision for Milk Labelled rBST-free and Organic," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(1), March.
- Klaus G. Grunert, 2005. "Food quality and safety: consumer perception and demand," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 369-391, September.
- Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
- Johnson, Richard D & Levin, Irwin P, 1985. " More than Meets the Eye: The Effect of Missing Information on Purchase Evaluations," Journal of Consumer Research, University of Chicago Press, vol. 12(2), pages 169-77, September.
- Huang, Chung L, 1996. "Consumer Preferences and Attitudes towards Organically Grown Produce," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(3), pages 331-42.
- Lebar, Ed & Buehler, Phil & Keller, Kevin Lane & Sawicka, Monika & Aksehirli, Zeynep & Richey, Keith, 2005. "Brand Equity Implications of Joint Branding Programs," Journal of Advertising Research, Cambridge University Press, vol. 45(04), pages 413-425, December.
- Gary D. Thompson, 1998. "Consumer Demand for Organic Foods: What We Know and What We Need to Know," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1113-1118.
- Kirmani, Amna & Wright, Peter, 1989. " Money Talks: Perceived Advertising Expense and Expected Product Quality," Journal of Consumer Research, University of Chicago Press, vol. 16(3), pages 344-53, December.
- Pinson, Christian, 1986. "An implicit product theory approach to consumers' inferential judgments about products," Economics Papers from University Paris Dauphine 123456789/13919, Paris Dauphine University.
- Tansev Geylani & J. Jeffrey Inman & Frenkel Ter Hofstede, 2008. "Image Reinforcement or Impairment: The Effects of Co-Branding on Attribute Uncertainty," Marketing Science, INFORMS, vol. 27(4), pages 730-744, 07-08.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-00656485. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.