Interplay of multiple labels and willingness to pay

Abstract

Purpose

There are calls for irradiated food labelling due to a significant need for food safety and extensive procedures to safeguard consumer health. Additionally, there is a strong push from producers for mandatory Country of Origin (COO) labelling. The study examines how the COO and Radura labels influence consumer behaviour and shows the interplay between these influences. Using Attitude-Behavior-Context theory, a conceptual model is proposed and tested to evaluate these factors. The use of multiple labels allows for more choices. How the information presented on labels corresponds to consumers' pre-purchase information search is tested on regular label users.

Design/methodology/approach

Structural Equation Modelling (SEM), Generalised Linear Modelling and Cluster Analysis were used to analyse the data on a sample of 322 Australian respondents.

Findings

The study revealed that COO labelling had a significant positive relationship with attitudes but a negative relationship with WTP, acting as a suppressed mediator between attitudes and WTP. Interestingly, while knowledge was not found significant, label confidence emerged as a significant factor. Furthermore, the research suggests that regular users may prioritize COO labels over Radura labels.

Originality/value

This research contributes novelty by being the first to address the interplay between COO and irradiated labels, complementing the growing body of literature on irradiation labelling. It also offers valuable insights for retail practitioners, providing an understanding that can facilitate the delivery of high-value multiple labels at the point of purchase.

Citation

D'Souza, C., Ibanez, V.A. and Hartmann, P. (2024), "Interplay of multiple labels and willingness to pay", International Journal of Retail & Distribution Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJRDM-02-2024-0056