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Retailers increasingly use sustainability labels to convey eco-friendly attributes of food products. Using an incentive-compatible randomized online experiment, we investigate whether disclosing popularity information can enhance the appeal of sustainability information. We find that, in our overall sample of coffee drinkers, the popularity label increases the selection rate of the labeled coffee by about 10 percentage points, while the bird-friendly label shows a smaller effect (7 percentage points). Moreover, when these labels are presented together, the combined effect is more pronounced compared to the bird-friendly label alone. This suggests that the popularity label may enhance the effectiveness of sustainability labels. Additionally, we find label effects vary among consumers. Those who prioritize bird conservation are most influenced by the bird-friendly label, while more conforming consumers show positive responses only when the popularity label is present. Furthermore, recommendation labels have contrasting effects on consumer willingness-to-pay (WTP) both between and within products. Overall, our research provides valuable insights into the impact of employing multiple product recommendations on consumer behavior and emphasizes the importance of customizing information provided by marketers to appeal to different target audiences.
Presenter(s)
Dede Long, California State University, Long Beach
Non-Presenting Authors
Hongxing Liu, Lafayette College
Joaquin Gomez-Minambres, Lafayette College
Stronger Together: The Impact of Sustainability and Popularity Information on Consumer Choices
Category
Organized Session Abstract Submission
Description
Session: [088] WASTE RECYCLING AND FOOD (AERE)
Date: 7/3/2023
Time: 10:15 AM to 12:00 PM
Date: 7/3/2023
Time: 10:15 AM to 12:00 PM