The importance of relative customer-based label equity when signaling sustainability and health with certifications and tags

Abstract

As a result of the increased crowding of the retail landscape with health and sustainability signals and hundreds of different certifications and claims, there is a growing need to determine the critical success factors and guidelines for professional practice. The current paper investigates how different combinations of signals impact consumers’ choice and willingness to pay (WTP). We identify and test two major certifications from a branding perspective. The results show that consumers will have a preference and higher WTP for fish filets with signals (certificates/tags or health/sustainability) that hold higher customer-based label equity (familiarity, understanding, trust) when shown in a choice-based situation. The results show the importance of a clear reference point, label equity (familiarity, understanding, trust), and customer values when using third-party certifications and/or simple taglines.