Increasing the effectiveness of ecological food signaling: Comparing sustainability tags with eco-labels

• DOI: 10.1016/j.jbusres.2021.10.052
• Publication Date: 2021-10-30T09:13:51Z
• Authors: Valdimar Sigurdsson; Nils Magne Larsen; Rakel Gyða Pálsdó...; Michal Folwarczny; R.G. Vishnu Menon; Asle Fagerstrøm
• Keywords: 330; 13. Climate action; 0502 economics and business; 05 social sciences; 577; VDP::Samfunnsvitenskap: 200; 14. Life underwater; VDP::Social science: 200; 12. Responsible consumption

Abstract The effectiveness of eco-labels has dominated research on food signaling. Building on signaling theory, we investigate the impact of sustainability tags–unverified sustainability claims–compared to eco-labels–actual awarded eco-certificates–on consumer choice and the willingness to pay (WTP). We add to the underdeveloped “non eco-labels” literature on sustainability signaling by documenting that a green sustainability tag has a higher importance score and utility than an eco-label. The tag leads to larger “green segments” valuing sustainability as the most important attribute when buying fish. Furthermore, consumers are willing to pay 23.1% more for fillets with sustainability tags. This is significantly higher than the additional value ascribed to the Marine Stewardship Council (MSC) eco-labelled fillets. The majority of consumers surveyed were unfamiliar with frequently used seafood eco-labels (Aquaculture Stewardship Council (ASC)/MSC). Thus, the increase in WTP is mediated by perceived familiarity, wherein tags are rated higher in familiarity compared to eco-labels.