THE POWER OF LABELS: HOW CERTIFICATION LABELS AFFECT CONSUMERS’ PURCHASE INTENTIONS AND WILLINGNESS TO PAY HIGHER PRICES FOR PLANT-BASED NON-FOOD PRODUCTS

Author

Bhaskar Upadhyaya Subedi, Southern Illinois University CarbondaleFollow

Date of Award

8-1-2024

Degree Name

Doctor of Philosophy

Department

Business Administration

First Advisor

Anaza, Nwamaka

Abstract

As more and more consumers are growing environmentally conscious, businesses are leveraging ways to showcase their sustainability efforts in their products by obtaining certifications and putting these labels in product packages. As certifications are rigorous and hard to obtain, obtaining certifications is a means to spearhead the sustainability momentum. However, academic research in certification, especially with non-food products made from plants, is limited. Hence, this dissertation study focuses on the influence of certification labels in consumers’ purchasing behaviors by specifically looking at consumers’ purchase intentions and willingness to pay higher prices for plant-based non-food products with certification labels. In addition, this dissertation study also explores the mediating role of perceived efficacy and perceived eco-friendliness on consumers’ purchase intentions and willingness to pay higher prices. Moreover, subsequent study will also examine the impact of informative certification labels.Across three experimental scenarios using household products such as multipurpose cleaners and laundry detergents, it was found that consumers show higher purchase intentions and greater willingness to pay higher prices for products with certification labels compared to products without certification labels. Similarly, it was found that consumers are willing to pay higher prices for plant-based products compared to non-plant-based products. The mediating relationship of perceived efficacy is observed with its effect being the greatest for plant-based and certified products compared to not-certified products whether it is plant-based or not. With regards to perceived eco friendliness, the research showed that consumers perceive plant-based and certified products as more eco-friendly than non-plant-based products despite their certification status leading to greater purchase intentions and willingness to pay higher prices. In study 3, the role of informative certification labels was investigated. Specifically, it was found that plant-based and certified products with informative certification labels (compared to plant-based and certified products without informative certification labels) demonstrated higher perceived efficacy leading to purchase intentions and willingness to pay higher prices. The findings from this dissertation benefit both academic marketing researchers and marketing managers. Manufacturers of plant-based household products can leverage the advantages of certification labels as a competitive edge and be able to remove doubts and confusions that consumers have towards plant-based non-food products by obtaining certifications.