The effect of environmental cues on the purchase intention of sustainable products

Abstract

Although sustainable product companies provide various environmental cues to promote consumer purchasing, these cues do not have the intended effect in many cases. Therefore, this study investigates the effect of the following on purchase intention: interaction between representative environmental cues, that is, sustainable label and traceability, and interaction between sustainable label and consumer knowledge of certification. The results demonstrate that consumers’ purchase intention is highest when sustainable label and traceability information are provided simultaneously. Moreover, when consumer knowledge is high, purchase intention increases only when a sustainable label is provided. However, when consumer knowledge is low, purchase intention increases with a non-sustainable label. Furthermore, perceived risk and product efficacy dually mediate the effect of these interactions on purchase intention. The results imply that purchase intention can be increased by providing more transparent and diverse environmental cues based on information technology, and by increasing consumers’ certification knowledge.