This cookie will save the planet! The effect of a private sustainability claim on consumers’ expectations

Abstract

Current study investigates whether a private, sustainability claim has an impact on individuals' sensory and non-sensory expectations (halo effect) and quantifies such impact on individual monetary preferences. An incentive-compatible artefactual field experiment was performed by recruiting regular buyers and consumers of the investigated product (cookies). Results reveal that the sustainable agriculture claim generates high (unrelated) expectations and a statistically significant premium price compared to the conventional counterpart. Additionally, these expectations, together with respondents’ trust in the claim, are the drivers of the price premium. Findings suggest the need for policy makers and consumer advocates to scrutinize the potential drawbacks of private sustainability claims on food products.