How do dual sustainable-labeling strategies enhance products’ perceived value?

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 consequences.

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 + Fairtrade/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-labeling strategy. 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.