The competition between private label and national brand through the signal of Euro‐leaf

Abstract

AbstractThe current study aims to determine the effect on consumer behaviour when an ecological signal, such as an eco‐label, is provided on various food packaging. In particular, this work aims to understand the strategic role of the eco‐label as a brand equity by introducing a new theoretical model of eco‐brand equity from a consumer perspective. Through a sample of 1.075 Italian consumers, their behaviour and preferences are modelled for 10 types of food using the presence of the brand and the private label with and without the eco‐label as control conditions. In particular, the eco‐label reflects some specific attributes of a brand, for example, loyalty, quality, reputation and association, demonstrating its brand equity. The findings support the hypothesis that the eco‐label has a brand value capable of reducing information asymmetries, increasing confidence and credibility in the agri‐food market. From a theoretical perspective, this research identifies the eco‐label as extrinsic signals able to affect consumers' behaviour. Moreover, the findings of this study present practical implications supporting the process towards more sustainable systems in the food sector.