Impact of Food Sustainability Labels on the Perceived Product Value and Price Expectations of Urban Consumers

Abstract

Sustainable labelling is an important tool in raising awareness and informing potential buyers regarding environmental, economic and social issues. This study provides insights into consumers’ value of food sustainability labels through the exploration of the impact of logos on their purchasing decisions (willingness to buy (WTB)) and readiness to pay (willingness to pay (WTP)) a higher price for sustainability-labelled products. Data was collected via an online survey among a sample of 423 adult city dwellers in Poland. The structured questionnaire beside sections concerning consumer buying behaviour and perception of the food labels consisted of a behavioural choice experiment (CE), where two categories of plant products: fresh (apples or bananas) and non-perishable (rice or beans) varied by type of labelling (logos: Euro-leaf, PGI, Fair Trade or without logo) and by price. Cluster analysis revealed two consumer groups (named “Sceptical” and “Mindful”) that had varied opinions and perceptions of sustainable labelled food and buying behaviour. The research results indicate that when the logo is poorly-known even consumers with positive attitudes towards sustainability do not use it as a cue when shopping for food. Moreover, urban consumers were very price sensitive and showed a restrained desire to pay a higher price for sustainability labelled products.