Insights into the organic labelling effect: the special case of wine

Abstract

PurposeWhile research shows that organic labels are perceived positively for most food products, the findings are more ambiguous for wine. This may be due to the complexity of the product. Accordingly, the labelling effect might be influenced by people's prior knowledge of wines and their attitudes towards organic wines and thus be more pronounced for certain consumer groups. Providing insights into those moderators could help to steer people towards sustainable wine consumption. Therefore, this paper aims to investigate the effect of organic labelling on consumers' liking of, and their willingness to pay (WTP) for white wine, and the role of potential moderators.Design/methodology/approachA wine tasting experiment was conducted using a within-subjects design (n = 214). The mediating role of expected liking and the moderating roles of subjective knowledge and attitude towards organic wine were analysed using the MEMORE macro in SPSS.FindingsThe results do not confirm an overall positive halo effect of labelling on liking of organic wine. Nevertheless, a positive halo effect on actual liking was observed for those respondents who have a positive attitude towards organic wine. Furthermore, an overall positive effect of organic labelling on WTP was found. Mediation effects could not be confirmed.Originality/valueThis study used an experimental design that considers not only expected liking but also actual liking and WTP for organic wines. Using a moderation-mediation framework helps to better understand consumers' quality evaluation and WTP for organic wine. Finally, it could be shown that the organic halo is more complex for the product category of wine than others have previously stated.