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To cite this article: Clare D’Souza, Mehdi Taghian & Anne Renée Brouwer (2019): Ecolabels
information and consumer self-confidence in decision making: a strategic imperative, Journal of
Strategic Marketing, DOI: 10.1080/0965254X.2019.1636845
Article views: 28
1. Introduction
It is clear that firms have responded to the green agenda by creating products that are
environmentally friendly (Smith, 2010). As a consequence, there is an increase in the
creation of green or ecolabels. Green/ecolabels can be seen as a strategic initiative for
firms and are identified as an influencing communication tool for green marketing (Rex
& Baumann, 2007). Ecolabels are market-based instruments that carry perceived infor-
mation regarding eco-friendliness of a product, allowing consumers to make informed
choices and are effective at the point of sale. Labels when implemented well can be an
effective communication strategy; and when added with green claims they are able to
demonstrate the green credentials of products to consumers.
Ecolabel information can be used either by the manufacturer or used as third-party
certification. Third party ecolabels are awarded labels, distinct from manufacturer’s self-
claimed ecolabel information. For example, as reported by Ecolabel Index (2017), glob-
ally certified and active ecolabels have increased in numbers by 54% since 2005 which is
2. Ecolabels review
A bibliographic search covering 2000–2017 was conducted on ABI/Inform Global data-
base and Business Source Complete (EBSCO) and found several articles that have
focused on several different aspects of ecolabels. Previous research in this area shows
various factors have an influence on consumer’s interaction with ecolabels, and how
they influence their decision-making. Consumers make green decisions, for instance,
based on combinations of green colour enhances the fluency of a message (Seo &
Scammon, 2017). Pancer, McShane, and Noseworthy (2017) conceptual study, focuses on
green colour and green claims and its effect on perceptions of reduced product efficacy.
They found that environmental cues used in isolation (i.e. green color without an
environmental label or an environmental label without green color) reduce perceptions
of product efficacy. De Chiara (2016) focused on CSR communication and management
JOURNAL OF STRATEGIC MARKETING 3
of ecolabels; Cho (2015) used social judgment theory and self determination theory to
look at the effects of ecolabelling and environmental impact framing. Bernard,
Bertrandias, and Elgaaied-Gambier (2015) used information processing theory and iden-
tified conditions in which a generalized ecolabel in stores might modify consumers’
purchase choices. It is evident that millennials read product labels to discern if a product
is eco-friendly (Smith & Brower, 2012).
Looking more deeply into the literature, Whitson, Ozkaya and Roxas (2014) found that
respondents were not monolithic in their preferences for ecolabel information techni-
ques. They believed that information on the label should concentrate on providing facts
about the environmental friendliness of the product. Grunert, Hieke and Wills (2014)
uses the motivation, ability and opportunity framework and investigated the relation-
ship between consumer motivation, understanding and use of sustainability labels on
food products.
Atkinson and Rosenthal (2014) used signaling theory to identify which aspects of
ecolabel design yield more positive effects and found that specific arguments consis-
tently yield greater ecolabel trust and positive attitudes toward the product and label
source, but only with low-involvement products is source important, with corporate
labels yielding more positive attitudes.
Sirieix, Delanchy, Remaud, Zepeda, and Gurviez (2013) compared the perceptions that
consumers have about ecolabels vs. other labels, such as origin or nutrition labels; and
consumers’ reactions to combinations of different ecolabels. Their findings show that
consumers have positive perceptions of organic and fair trade labels but tend to be
sceptical about unfamiliar labels and general claims such as ‘climate friendly’.
Bickart and Ruth (2012) used the Persuasion Knowledge Model to examine consumer
characteristics (environmental concern and brand familiarity) and advertiser-controlled
characteristics (the seal and advertising appeal) to understand conditions under which
eco-seals are more or less persuasive, including effects on attitudes and intentions. They
found that consumers with high versus low environmental concern perceive eco-seals
differently, depending on brand familiarity, eco-seal source, and ad appeal.
Teisl, Rubin, and Noblet (2008), used the Lancaster Choice model for developing
a multi-equation psycho-economic modeling of consumer reactions to ecolabeling. They
identified that the perceived credibility of the label is positively related to the respon-
dent’s faith-in-the information source. Adding information to the eco-seal has no impact
on the label’s perceived credibility. On the other hand, Teisl, Roe, and Hicks (2002)
measured the policy effectiveness of dolphin-safe labeling of canned tuna by estimating
a demand system for the canned protein market by using retail level data and testing
whether the dolphin-safe labels altered consumer purchases of tuna. They found that
the implementation of dolphin-safe labeling affected consumer behavior.
Thøgersen (2000) develped a psychological model explaining variations in consumer
attention towards environmental labels and test its ability to predict attention towards
environmental labels in various European countries. This research found that consumers
pay attention to and use labels in their buying decisions only if they trust them.
In addition, consumers’ characteristics, such as the level of environmental concern
(Bickart & Ruth, 2012) and consumers’ belief in responsible purchase behaviour
(Thøgersen, 2000) have an influence on a consumer’s decision-making. When presented
with an ecolabel, the impact of choice depends on consumers’ level of environmental
4 C. D’SOUZA ET AL.
concern (Bickart & Ruth, 2012). However, when presented with different types of
ecolabels, low-concern consumers respond more favourably towards ecolabels spon-
sored by an independent third party. High-concern consumers respond more positively
towards ecolabels sponsored by the manufacturer (Bickart & Ruth, 2012).
From the above it is clear that ecolabel information is researched along several lines
of inquiry, for instance, through the use of consumer’s decision-making process
(Thogersen, Haugaard, & Olesen, 2010), consumers’ behavioural consequences towards
ecolabel information (Whitson & Henry, 1996), and ecolabel information effectiveness
(Atkinson & Rosenthal, 2014). Furthermore, there is a relationship between consumers’
awareness of an ecolabel, the attention they pay to them and the influence of the
ecolabel on their decision-making, and trust (Mueller Loose & Remaud, 2013; Thøgersen,
2000). Specific arguments result in greater ecolabel trust than general arguments
(Atkinson & Rosenthal, 2014). In addition, the source of the ecolabel has an influence
on the the trustworthiness of an ecolabel (Teisl et al., 2008). Furthermore, lack of
familiarity with a label is more easily viewed with scepticism (Sirieix et al., 2013) and
perceived uncertainty about label standards could create consumer confusion
(Harbaugh, Maxwell, & Roussillon, 2011).
Based on the above literature, it can be inferred that consumers’ understanding of
ecolabels (D’Souza, Taghian, & Lamb, 2006; Thøgersen, 2000) and their familiarity with
both environmental information (Bernard et al., 2015) and the ecolabel (Sirieix et al.,
2013) reduces confusion and increases effectiveness of ecolabels. Hence, well-known
ecolabels, such as the dolphin-safe label have been found to affect consumer decision-
making (Teisl et al., 2002).
In terms of purchase intent, the plethora of complexities surrounding purchase intent
and green consumers’ attitudes, demographics, and consumer decision making are
necessary for purchase intention (Wei, Chiang, Kou, & Lee, 2017). Considerable work
also has been undertaken in the area of environmental awareness and pro-
environmental behavior (Chan, Hon, Chan, & Okumus, 2014; Kikuchi-Uehara, Nakatani,
& Hirao, 2016) that have influenced purchase intention. Consumers believe that green
products are worth buying; they are confident about green products; they intend to buy
green products, or some of them always buy green products.
Ecolabel information use green claims to carry green messages. Cummins, Reilly,
Carlson, Grove, and Dorsch (2014) found that consumers seem to assess any green
messages more positively than a message without a green component, allowing con-
sumers to make informed choices and thereby purchases if intended. This is evident in
Testa, Iraldo, Vaccari, and Ferrari (2015) study, by using Italian consumers they found
that knowledge, awareness and information gained through ecolabel information can
motivate consumers’ green behaviour and purchase intent. Atkinson and Rosenthal
(2014) study using signalling theory showed the effectiveness of ecolabel information
in stimulating purchase intent depends on various attributes that establish its credibility
and therefore its effectiveness. It appears that the use of ecolabel information and
consumers’ familiarity with them can facilitate better green purchase decisions. In
contrast, lack of familiarity with a ecolabel information can lead to confusion and
scepticism resulting in lower purchase intent (Sirieix et al., 2013). Although, others
found that any ecolabel is better than no ecolabel (Bernard et al., 2015; Hoek, Roling,
& Holdsworth, 2013), there are certainly mixed views regarding ecolabel influences
JOURNAL OF STRATEGIC MARKETING 5
towards purchase intention, and this can be attributed to whether or not consumers are
getting the right information about ecolabels and their meaningful claims.
Studies that used ecolabels in combination with information found that influencing
consumers’ purchase decisions with ecolabels seems most effective when providing
detailed or more information (Engels, Hansmann, & Scholz, 2010; Hansmann, Koellner,
& Scholz, 2006), especially information outlining the personal impact on consumers
(Cho, 2015). Although, adding information to an ecolabel has no impact on the label’s
perceived credibility (Teisl et al., 2008). Thus, more importantly, it is also important
regarding how and what a company should disclose with its customers (Borin, Cerf, &
Krishnan, 2011). Consumers also make choices based on label information. Based on the
preceding discussion, we propose the following hypotheses:
Bearden et al. (2001) suggest that consumer self-confidence could be assisted by the
consumers’ general self-esteem and developed scales in relation to four dimensions of
decision-making self-confidence, namely: information acquisition, consideration set for-
mation, personal outcomes decision making (scales reversed in this research), and social
outcomes decision making. This research disregards consideration set formation
because it refers to products rather than ecolabel information.
The information acquisition identifies consumer confidence in searching for and gather-
ing information. The social outcomes reveal purchase decisions made by an individual as
being subjected to the approval of friends and relatives. In terms of green purchases, Belz
and Dyllik (1996) found that consumers achieve self-expressive benefits from the socially
visible usage of green products, allowing consumers to socially construct an environmental
consciousness image to others (Hartmann & Apaolaza Ibáñez, 2006).
While the personal outcome decision making identifies skepticism about purchase
decisions. Findings suggest that the more environmentally concerned consumers are, the
less convincing they can be towards green products (Do Paço & Reis, 2012). This is possible
due to the backlash and effects of greenwashing and the skepticism that results from lack
of trust in the green claims made (Nuttavuthisit & Thøgersen, 2017). Yet, consumer self-
confidence in ecolabels was not examined and research in this area would provide for
a more systemic understanding in consumer self-confidence decisions towards the useful-
ness of ecolabels, if consumers are to make informed choices based on ecolabel rationale.
Even though there remain mixed opinions in understanding consumers’ self-confidence
in green purchase intent, two assumptions can be made, one is that ecolabel information
in combination with information are likely to influence a consumer’s self-confidence and
secondly, consumer self-confidence mediates the relationship between ecolabel and pur-
chase intention. Based on the above, we formulate the following hypothesis:
H2: There is a positive relationship between consumers’ ecolabel information and their
self-confidence in decision making
H3: The influence of ecolabels on the intention to purchase green products is mediated
by a positive effect on Consumer self-confidence
In Figure 1 below, there are two items that measure label information, mainly
identifying the importance of ecolabel information and making choices. Purchase inten-
tion has four items that measures green products worthiness, product confidence, green
product intention and always buying green products. Consumer self-confidence decision
making is a higher order factor and has three dimensions of decision-making self-
confidence namely: information acquisition, personal outcomes decision making and
social outcomes decision making. Together they investigate the purchase intention
outcome as per the hypotheses formulated above.
4. Methodology
The survey questionnaire used in this study was pre-tested using a sample of 20 respon-
dents, most of whom were academics. The feedback received from the pre-test was used to
modify the questionnaire before its administration. The study uses pre-existing scales. The
JOURNAL OF STRATEGIC MARKETING 7
scales used in the study to measure ‘consumer self-confidence’ was adopted from Bearden
et al. (2001). The scales were used to measure ‘ecolabel information’ was adopted from
D’Souza et al. (2006); (2007)). The question was asked in terms of assessing consumer’s
evaluation of self-confidence. Likert scales measuring strongly agree to strongly disagree
measured consumers’ responses on whether they believe that it is important for companies
to disclose green information on the product label and whether they make a choice about
green products depending on the label information.
Bearden et al. (2001) developed consumer self-confidence decision making scale,
which is a multidimensional and multilevel construct, pertaining to two higher order
factors, namely decision-making self- confidence and protection self-confidence (not
included in this study). Together these two scales consist of 31 items comprising four
dimensions of decision-making self-confidence namely: information acquisition, consid-
eration set formation, personal outcomes decision making (scales reversed in this
research), and social outcomes decision making
The population used in this study consists of current residents of all Australian states
and territories. A professional market research company was employed to conduct the
online survey. Respondents were drawn selecting adults across all states and territories
of Australia. Electronic data captured prevents human error in several areas such as data
quality, potential data entry mistakes and it is less costly in terms of time, transport,
storage and security associated with paper-based questionnaires. In addition, the
research company provided the information and quality standards, including cross
referencing of the sample profile data with survey responses, data cleaning, data
validation (edits) and reducing/eliminating data errors. Responses were automatically
loaded into an SPSS database.
A total of 202 responses were received. The sample size, 202, can be considered large
enough for this study based on established criteria (Hair, Black, Babin, Anderson, &
Tatham, 2006). The sample comprised of 13% participants falling in the age range of
8 C. D’SOUZA ET AL.
18–24; 18% in the age range of 25–34; 20% in the age range of 35–44; 14% in the age
range of 55–64 and the remaining 35% participants fell within the 65–84 age group. The
data were screened to include main and joint grocery buyers. The respondents included
60% who were the main grocery buyers and 40% were joint grocery buyers. Male and
female respondents were represented equally. All measurements were based on
a seven-point Likert-type scale, except for the measures associated with demographic
characteristics (see Table 1). Determining response rates to online surveys can be
challenging because it is necessary to calculate how many did not open the survey,
began the survey but dropped out, as well as how many respondents were speeders or
flat-liners (Callegaro & DiSogra, 2008).
Bearden et al. (2001) developed and validated multiple measures for all the dimen-
sions of consumer self-confidence. They purified their initial pool of items and content
validity was substantiated. From two studies, they selected items based on corrected
item to total correlations and factor analysis loadings, subsequently using confirmatory
factor analysis to examine the factor structure as well as providing evidence of dimen-
sionality, scale reliability and discriminant validity. We use confirmatory factor analysis
for our study. Table 2 provides a summary of the factor loadings in the confirmatory
factor analysis. All factors have acceptable factor loadings.
The current research used structural equation modelling (SEM) (AMOS) to estimate
the associations hypothesised and to analyse the data. SEM was used to facilitate the
structural estimates of all variables including the moderator of the results. The individual
measurement models forming the structural model were estimated prior to using them
in the model (Figure 1). The fit of all models was acceptable. The results of the model
estimates are presented in Figure 1 and listed in Table 3. In addition, all the variables for
information acquisition, personal outcome decision-making, social outcome decision-
making and purchase intention were parcelled using the one-factor extraction proce-
dure. The parcelling of variables was used to achieve a more parsimonious model,
minimizing the chances of residuals and reducing sampling error sources (Little,
Cunningham, Shahar, & Widaman, 2002). The parcelled variables were then used in
the structural model as depicted in Figure 1, to estimate the associations hypothesised
(Table 3).
In Table 4, Cronbach’s alpha reliability coefficients for each of the factors is presented.
Ecolabel information .64; Consumer self-confidence construct .85, and Purchase inten-
tion 0.91. All coefficients reflect a very good or excellent alpha levels except for ecolabel
information 0.64 which is reasonable. Thus, it can be concluded that these items can be
combined to measure the factors in a consistent and reliable manner. Table 5 presents
the correlations between the constructs used in the model. All correlations are below
the acceptable level of .6 (Hair et al., 2006) indicating discriminant validity.
H2: There is a positive relationship between consumers’ ecolabel information and their
self-confidence in decision making – supported
H3: The influence of ecolabels on the intention to purchase green products is mediated
by a positive effect on Consumer self-confidence – supported
The results reported in Table 3 show that Ecolabels directly associate with purchase
intention (.53), Ecolabels substantially contribute to Consumer self-confidence (.76);
Consumer self-confidence mediates the association between Ecolabels and Purchase
Intention at the same level (.38), indicating that consumer self-confidence plays
JOURNAL OF STRATEGIC MARKETING 11
a mediating role in influencing Purchase Intention. From the literature it can be seen
that self-confidence is also critical in the decision-making process.
Table 6 reports the direct, indirect and the total effects of the variables on Purchase
Intention. Ecolabel has a direct effect on Purchase Intention (0.53), while consumer self-
confidence to Purchase Intention has a direct effect (.38). Ecolabel to Purchase Intention
has an indirect effect (.29). Similarly, the Total effect of Ecolabels and Intention to
purchase was found to be .81; Ecolabels to consumer self-confidence (.76) and
Consumer Self-confidence and Purchase Intention (.38) but not to a very large extent.
The strength of the ecolabel information shows a relatively strong association with
purchase intention. Majority of the consumers in this research regard information on ecolabel,
they read labels and they make choices based on label information. Ecolabel information act
as a vehicle for consumers to make an informed choice in terms of their purchase intention.
The results also indicate that consumer self-confidence influences purchase intention (.38).
This means that consumers are aware of and can obtain the appropriate information they
need for a decision and can also interpret and assess the information obtained. Additionally,
the social outcome decision-making reflected in the consumer confidence variable suggest
that consumers are both conscious of their associates’ sentiments toward the environment
and they respond to their associates’ attitudes positively and are willing to impress their
associates through their green purchase behaviour. Although, some have disagreed that
subjective social norms affect consumer’s purchase intent (Nguyen, Lobo, & Nguyen, 2017),
there is support from other research findings that identify the influence of ecolabel informa-
tion with purchase intentions (Gilg, Barr, & Ford, 2005) and that ecolabel information is
a critical strategic factor for green purchases (Delafrooz, Taleghani, & Nouri, 2014; Gilg et al.,
2005; Nuttavuthisit & Thøgersen, 2017).
Furthermore, this study supports the view that increasing consumer self- confidence
towards ecolabel information is fundamentally an important strategic step for attracting
and motivating green purchase. To increase green purchase behaviour, there is a need to
provide green messages that disclose a product’s green attribute information (Gleim,
Smith, Andrews, & Cronin, 2013), which will benefit consumers in making informed choices.
Green/ecolabels can assist in building and facilitating strategic green purchases by elevat-
ing consumers’ awareness, knowledge and increase their self-confidence, as they search for
reliable and trustworthy information, they expect through ecolabel information.
businesses to disclose green information on the product label, these findings also supports
the views of Atkinson and Rosenthal (2014). Nuttavuthisit and Thøgersen (2017), suggest that
consumers who cannot rely on market information will not act effectively on green intentions.
If consumers are aware of green ecolabel information, then the marketer’s attempts to
promote green products strategically at their point of sale and media activities is simplified
because consumers would rely on green ecolabel information to make informed choices.
Furthermore, while integrated product policy initiatives are to create green products and
consumption, by emphasising the way customers use, choose or discard products (Charter,
2001), information disclosure through the endorsement of ecolabels is vital for the marketing
strategies of green products.
Parallel to this research findings, the literature also supports that green/ecolabels lead
to purchase intent and consumers read labels for relevant information (Kumar & Kapoor,
2017). This research supports that consumer self-confidence mediates ecolabel informa-
tion and purchase intent. Thus, ambiguous and confusing green claims should be
avoided, while marketers should provide some strategies for consumers to be allowed
to verify green claims, reliable information and clarity in information about the environ-
mental component of the product that needs to be disclosed.
In addition, the significance of ecolabel information and social outcome decision-
making provides an important insight into responsible behaviour for which consumers
would like to be socially recognised. This finding leads to opening avenues for marketers
to increasingly recognise ecolabel information with respect to further branding implica-
tions and understanding self-evaluation and social desirability (Sirgy, Johar, & Wise,
2015). This is an important finding in the literature and marketers should strive to
encourage and position social outcome information through labelling.
Ecolabels in general are a promotion instrument that when applied strategically can
influence behaviour. Thus, it is imperative firms, policymakers and certifying labelling
organization should educate consumers through ecolabel information to increase green
behaviour (Taufique, Vocino, & Polonsky, 2017). Ecolabels are classified as a product/
packaging in the marketing mix context (Rex & Baumann, 2007). On the other hand,
green marketing accentuates labels and they put emphasis on promotions (Rex &
Baumann, 2007). Ecolabel information can increase the effectiveness of informative
communication appeals, given consumers’ favourable perception of ecolabel informa-
tion, consumers are likely to be attentive and motivated sufficiently to understand key
green claims on product labels in making an informed choice. Thus, marketing strategies
can reposition products and use ecolabel information/ecolabels to encourage the adop-
tion of green practices (Rettie, Burchell, & Riley, 2012).
While recent research finds certified ecolabels are more trustworthy, consumers will
not distinguish amongst certified versus uncertified ecolabels in the presence of trust,
which lead to sub-optimal purchasing decisions (Darnall, Ji, & Vázquez-Brust, 2016). This
research did not test particularly for certified or uncertified ecolabels, but consumers’
general opinions point to this conclusion. Using certified labels is helpful when there is
strong competition and when marketing strategies are used to clearly differentiate their
product from their competitors’ offerings. This leads to leveraging a competitive advan-
tage, and at the same time provide meaningful perceived environmental assessment for
their products (Grolleau, Ibanez, Mzoughi, & Teisl, 2016) eventually encouraging buying
behaviour for a notably worthy cause.
JOURNAL OF STRATEGIC MARKETING 13
8. Conclusions
A conceptual framework was proposed for ecolabel information that was used to
empirically test and refine the understanding of their influences on consumer self-
confidence and green purchase intent, both of which are critically important for sustain-
ability and policy intervention. The main findings of the study show that Ecolabel
information are positively related with Purchase Intention. Ecolabel information has
a positive association with Consumer self-confidence and consumer self-confidence
mediates the association between Ecolabel information and Purchase Intention.
Marketers can influence an increase in green product consumption through using
strategies to understand ecolabel information. The study contributes to the theoretical
foundation for future marketing studies related to consumer self-confidence, green
purchase intent and ecolabel information. Nonetheless, the findings show strong
14 C. D’SOUZA ET AL.
evidence that ecolabel information can provide primary basis of trustworthy information
and are a necessary step towards consumers’ making informed choices.
Disclosure statement
No potential conflict of interest was reported by the authors.
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