Drivers of consumer attention to mandatory energy-efficiency labels affixed to home appliances: An emerging market perspective

Abstract

The implementation of mandatory energy-efficiency on electronic products is one of the strategies used by governments to mitigate the environmental impact of consumption. Yet, studies on mandatory energy-efficiency labels and the pivotal role of consumers' attention to such labels remain limited. Thus, this study examines the key drivers of consumers’ attention to energy-efficiency labels that must by law be affixed to all home appliances sold in South Africa. Based on the signalling theory and the attitude-to-behaviour theory, an integrated model was designed to explore these drivers. Using the data from a survey involving 440 South African home appliance users, the model was tested through the structural equation modelling (SEM) approach. The empirical results indicated that consumers pay attention to energy-efficiency labels when they trust the energy-efficiency credentials of products, and when they intend to purchase energy-efficient appliances. Perceived product price was established as an important marketing signal for improving consumer trust in energy-efficiency labels, while social norms and attitude were confirmed as the most important antecedents of the consumer purchase intention of energy-efficient appliances. The findings provide important insights useful for the development of policy interventions aimed at promoting the use of more environmentally friendly home appliances.