Putting the organic label in context: Examining the interactions between the organic label, product type, and retail outlet

Abstract

The organic label has been studied extensively in the literature; however, few studies take into consideration the context in which the organic purchase takes place. In this study, we examine the product type (virtue vs. vice) as well as the purchase context (retailer: Target vs. Walmart). Using an online experiment with U.S. consumers (N=605), we determine how the organic label interacts with each of these contexts and how these interactions impact downstream evaluations such as expected taste, nutrition, safety, likelihood of purchase, and attitude and trust toward the product's brand. Results of the study reveal both the organic label and retail context impact product evaluations. First, results showed organic products were perceived more favorably on a number of measures (including nutrition, safety, brand attitude, and brand trust) than their non-organic counterparts, providing evidence of an organic "halo" effect. Interestingly, though, the organic "halo" did not extend to two measures: expected taste and likelihood of purchase. Secondly, organic labeling benefits virtue and vice products in distinct aspectsthe organic virtue product had better expected taste while the organic vice product had higher expected nutrition. Finally, we find that retailers are a crucial factor that moderates the evaluation of organic products. Our results suggest retailers like Target may be better outlets for promoting organic vice products whereas retailers like Walmart may only be good outlets for promoting organic virtue products. This study has important implications for the National Organic Program, the Organic Trade Association, producers, and food brand managers.

Organic label's halo effect on sensory and hedonic experience of wine: A pilot study

“…Our findings are in line with a number of previous studies showing an increase in hedonic ratings and purchase intention for organic labeled products compared to identical unlabeled products (Caporale & Monteleone, 2004;Johansson et al, 1999;Kihlberg et al, 2005;Lee et al, 2013;Poelman et al, 2008;Wiedmann et al, 2014). Rating the organic labeled wine as healthier is also consistent with previous findings (e.g., Ellison et al, 2016;Lee et al, 2013;Schuldt and Hannahan, 2013;S€ orqvist et al, 2015).…”

“…Food related halo effects have also been shown for organic labels (Sörqvist et al, ). Organic labeled products are perceived as being lower in calories (Schuldt & Schwarz, ), healthier than their non‐organic counterparts (Ellison, Duff, Wang, & White, ; Schuldt & Hannahan, ; Sörqvist et al, ) and yielded better nutritional evaluations (e.g., tasted lower in fat and higher in fiber) (Lee et al, ). Overall taste has been shown to be influenced as well, with organic food being more liked and rated as more flavorful and appetizing than an identical unlabeled product.…”

The awareness of environmentally friendly products: The impact of green advertising and green brand image

“…In Indonesia, an environmentally friendly product like organic products is easy to get at the supermarket (Alamsyah & Syarifuddin, 2018). However, the level of consumer trust is varied , hence the supermarket must strengthen up the green marketing strategy through green advertising and green brand image (Ellison et al, 2016). The final objective of a green marketing strategy is to explore new market and to improve product value offered (Rahmi et al, 2017).…”

Green Perceived Value for Environmentally Friendly Products: Green Awareness Improvement

“…Those values are evaluated finally by customer and it tipped on customer perceived value (Chi, Yeh, & Jang, 2008). It is the same with environmentally friendly products like organic product which it is traded in supermarket (Ellison, Duff, Wang, & White, 2016). It has some advantages compared with conventional product; it seems from packaging, product's shape until nutrition's information that is explained to customer.…”