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EMAC 2024 Annual


Meta Sustainability Labels: The Impact of Meta vs. Specific Labels and Claims on Consumer Choice
(A2024-119335)

Published: May 28, 2024

AUTHORS

Christina Reh, Hochschule Luzern; Christian Schlereth, WHU - Otto Beisheim School of Management; Lukas Schnabl, WHU - Otto Beisheim School of Management

ABSTRACT

With an increasing focus on sustainability, labels signal a product’s eco-friendliness and guide consumer choices. Given the large number of labels, platforms, such as Booking.com and Amazon, introduced meta sustainability labels if the offer fulfills specific minimum requirements. The idea is to provide one combined quality signal to ease information gathering for consumers. So far, little is known about the effectiveness of these new labels on consumer choices compared to no and specific labels. This study investigates the impact of meta sustainability labels on decision-making. In a discrete-choice experiment, we find that they are slighty less, but nearly equally effective on consumer choice as specific labels. They become more effective when combined with a claim, whereas the effect of adding specific labels remains higher. We conclude that using meta sustainability labels is better than presenting no label at all, however, it is advisable to communicate the key sustainable action.