Effects of quality and bio labels on willingness-to-pay

31 March 2017

Researchers at the University of Amsterdam NL examined the effect of a quality label and a bio label on the willingness to pay. The results show that quality labels influence the perception of quality and price, but they had no indirect effect on the purchase intentions. The bio label had a great impact on the perceived quality and an indirect effect on the willingness to pay.
When both signals were used, the results were similar to the condition when just the bio label was used. This indicates that the quality label has no effect on consumers’ perceptions, but bio labels have a strong implication on consumer behavior. An article about the research is published in Advanced Science Letters.
Click here for an abstract of the article.

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