Abstract
Credence or believability are paramount values in trade. The role of products’ credence attributes has been well-analysed in the agricultural and food sector. This study examined the application of credence attributes to forest management and forest products marketing for the first time. We describe specific credence attributes of forest products and highlight their values, benefits, and importance in international trade. We used Delphi interviews of experts and surveyed forest and trade experts to assess the perceived merits of credence attributes in the forestry sector. We also compared certification schemes and sustainable forest management (SFM) indicators against credence values. We found that credence attributes play an important role in the forestry sector for both timber forest products and non-timber forest products (NTFP). While some credence attributes, such as the legality of forest products, already form the basis for trade and certification and are standard practice, other credence attributes are rising in awareness and could potentially create new markets. This study revealed the potential value of health aspects of forest products, particularly regarding NTFP and recreational services. Certification schemes and SFM provide credence at a collective level, and must encompass the rising importance of individual credence attributes of these newer important values. Last, we summarized the emerging environmental, social, and governance (ESG) investment practices to assess how credence factors may help affect such investments. Awareness of credence attributes can inform ESG criteria, certification schemes, and sustainable forest management frameworks about present or potentially future market expectations. Sustaining and enhancing natural capital and the flow of ecosystem services they provide, as well as social and human capital, will play an increasingly important role for forestry companies in the next decade. A better understanding of forestry credence attributes can inform the management of ESG of forestry industries and markets more effectively.
Highlights
Credence attributes are quality features of a product that cannot readily be ascertained by direct experience [1] Unlike credence attributes, “search” and “experience” attributes are readily discernible by customers, e.g., by the colour, odour or taste of, e.g., an apple [1]
Our discussions showed that credence attributes in forestry are more often referred to as certification indicators, but are described with regard to social licence to operate (SLO), corporate social responsibility (CSR), or in regard to ESG criteria
FSC are the most well-known (86% and 95% respectively) certification schemes, while only 10% were aware of China Environmental Labelling (CEL)
Summary
Credence attributes are quality features of a product that cannot readily be ascertained by direct experience [1] Unlike credence attributes, “search” and “experience” attributes are readily discernible by customers, e.g., by the colour, odour (search attributes) or taste (experience attribute) of, e.g., an apple [1]. Credence attributes have emerged predominantly in the agricultural food production sector and the fashion industry as part of the marketing of products [2]. Credence attributes add value to a product and that can result in increased willingness to pay a price premium, or create new market segments (Figure 1). Sellers typically make claims about credence attributes, which are often expressed by different product labels or Credence attributes add value to a product and that can result in increased of 21Sellers ness to pay a price premium, or create new market segments (Figure ). Make claims about credence attributes, which are often expressed by different labels or certification schemes, or are sometimes reinforced by developing a certification schemes, or are sometimes reinforcedwill by developing authentic brands brands and trademarks, which customers trust [3]. If a proper proper system credence hasestablished, been clearly established, it was found that consumer credence has system been clearly it was found that consumers would likely pay a premium for eco-labelled certified forestor products [7–9]forest or even eco-labelled likely pay a price premium price fororeco-labelled certified products [7–9] or e household products [10]
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