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

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.

Automated summary

Research shows that unverified sustainability tags are more valued by consumers compared to actual awarded eco-certificates, leading to a higher willingness to pay for fish products with sustainability tags. Consumers are generally unfamiliar with frequently used seafood eco-labels like the Aquaculture Stewardship Council (ASC) and Marine Stewardship Council (MSC), which contributes to the increase in willingness to pay being influenced by perceived familiarity. Sustainability tags are rated higher in familiarity compared to eco-labels.