Effects of Combining Eco- and Social Labels on Consumer Value—Additive, Neutral or Cannibalizing? Insights From a Conjoint Analysis

Abstract

Despite research on sustainable labels, little is known about combining eco- and social labels and the effects on consumers. Although consumers are increasingly confronted with both socially oriented, e.g., fair trade, as well as environmentally oriented eco-labels such as certified organic cotton, the effect on consumer value has not been explored. To address this gap, this paper theorizes that the effects of combining a social and an eco-label could be additive, neutral, or – in the worst case – cannibalizing. This study employs a choice-based conjoint analysis to investigate the interaction effect of social and eco-labelling for apparel. The study also examines which attributes (quality, price, social and eco-label) consumers prefer. We contribute to the literature in two ways: First, we discuss the need to differentiate between social and environmental labels and hypothesize about the potential effects of combining both. Second, we show that combining social and eco-labels has a neutral – not additive or cannibalizing – effect although consumers value the presence of a sustainability label, i.e., an eco- or social label, on apparel. While consumers appreciate the consideration of sustainability in the supply chain of the product, clarity on what elements are important and are reflected in the labels requires further research.