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

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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 (N = 122) 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.

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Acknowledgements

The authors want to thank the anonymous reviewers and John Thøgersen for their insightful and fruitful comments.

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Authors and Affiliations

  1. DRM, Université Paris–Dauphine, Place du Mal de Lattre de Tassigny, 75016, Paris, France

    Fabrice Larceneux, Florence Benoit-Moreau & Valérie Renaudin

  2. Dauphine Recherches en Management (DRM, UMR 7088), Université Paris–Dauphine, Place du Maréchal de Lattre de Tassigny, 75775, Paris Cedex 16, France

    Fabrice Larceneux

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  1. Fabrice Larceneux
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  2. Florence Benoit-Moreau
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Correspondence to Fabrice Larceneux.

Appendices

Appendix 1. Packaging showed to respondents and questionnaire

figure a

Ps.: Ecosse means Scotland in French

Appendix 2. Table 4

Table 4 Split of respondents across experimental treatments
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Larceneux, F., Benoit-Moreau, F. & Renaudin, V. Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects. J Consum Policy 35, 85–104 (2012). https://doi.org/10.1007/s10603-011-9186-1

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