How do dual sustainable-labeling strategies enhance products’ perceived value?
| Date | 08 July 2024 |
| Pages | 828-841 |
| DOI | https://doi.org/10.1108/JPBM-05-2023-4543 |
| Published date | 08 July 2024 |
| Author | Gauthier Casteran,Thomas Ruspil |
How do dual sustainable-labeling strategies
enhance products’perceived value?
Gauthier Casteran
IAE Limoges, Limoges University, Limoges, France, and
Thomas Ruspil
IUT Tours, Tours University, Tours, France
Abstract
Purpose –This paper aims to understand how dual sustainable-labeling strategies influence perceived value dimensions (i.e. quality, emotional,
social and price) across vice vs virtue products and level of consumers’consideration of future consequenc es.
Design/methodology/approach –Two online experiments are conducted with private label brands: one with organic and Fairtrade labels and one
with organic and local labels. For each experiment, a conditional process analysis was used with the labeling strategy (i.e.no label vs organic label
vs Fairtrade/local label vs organic label 1Fairtrade/local label) as the independent variable, the product types (i.e.vice vs virtue) and level of
consideration of future consequences as moderators, the dimensions of perceived value (quality, emotional, social and price) as the dependent
variables.
Findings –Dual sustainable-labeling strategies lead to higher positive perceived value levels on all dimensions compared to no-labelingstrategy.
They however do not necessarily lead to higher levels compared to mono-labeling strategies such as organic labeling strategy (except for social
dimension). Additionally, the positive effect of dual sustainable-labeling is lower for virtue products compared to vice products and is stronger for
consumers with high level of consideration of future consequences for vice products for the social-value dimension.
Originality/value –Prior research has focused on the effect of multi-labeling strategies on willingness to pay with mixed results. This study brings
insights to literature by testing the impact of dual sustainable-labeling strategies on the dimensions of perceived value as well as the moderating
effects of the product types and consideration of future consequences.
Keywords Dual sustainable-labeling, Fairtrade label, Local label, Organic label, Perceived value, Vice and virtue products
Paper type Research paper
Introduction
Labeled and multi-labeled products are on the rise with an
increasing number of labels introduced by private or public
organizations,leading to a “label jungle”(Sonntag et al.,2023).
Labels translate technical and complex information regarding
products characteristicsand production into more transparent,
understandable and accessible information for consumers
(Asioli et al., 2020;Ikonen et al., 2020;Ang et al.,2024). The
trust consumers have regarding these labels (which might be
weaken when algorithms behind these labels are disclosed,
Mazzù et al., 2022) helps in turn enhance trust and perceived
value toward the product. As a higher level of perceived value
leads to higher levels of satisfaction,loyalty and profitability for
the product (Walsh et al., 2014;Kumar and Reinartz, 2016;
Coutelle et al.,2020), linking labeling strategies to perceived
value is of primary importance. It can help understand the
impact and relevance of different labeling strategies on value
and in turn identify the appropriate levers for product value
creation (Rivière and Mencarelli,2012). Moreover, labels play
a crucial role in fostering sustainable purchasing habits and
empowering consumers to make informed, healthy and
sustainabledecisions (European Commission, 2020).
This study focuses on sustainable labels, which encompass
distinctive dimensions of sustainability such as social, ethical,
health and environmental dimensions (Sonntag et al.,2023,
Asioli et al.,2020). Several operationalization of labels exists.
Standalone and multi-levels labels endorse mainly one
dimension of sustainability, while others such as meta-levels
labels aggregate several aspects on one global indicator
(Sonntag et al., 2023). Standalone labels are the most
widespread in the marketplace (Torma and Thøgersen, 2021;
Sonntag et al.,2023). Understanding which standalone labels
and which of their combinations effectivelyimprove –or on the
contrary, fail to improve –consumers’perceptions and
behavior is of a primary importance. It would give public
policymakers and organizations more insights on which labels
are sufficienton their own and which combinations are viable.
This paper specifically studies the impact of the voluntary
display of several standalone labels on products’packaging,
specifically organic, Fairtrade and local. Local labels are
referred as labels that describe the specific region of originof a
product in the same way as protected geographical indications
(PGI) and protected designations of origins (PDO) labels do.
The current issue and full text archiveof this journal is available on Emerald
Insight at: https://www.emerald.com/insight/1061-0421.htm
Journal of Product & Brand Management
33/7 (2024) 828–841
© Emerald Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/JPBM-05-2023-4543]
Received 28 June2023
Revised 21 November 2023
26 May 2024
10 June 2024
Accepted 11 June 2024
828
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