The fair trade food labeling health halo: Effects of fair trade labeling on consumption and perceived healthfulness

Abstract

The purpose of fair trade certification is to assure consumers that products support responsible companies, empower farmers, workers, and fisherman, and protect the environment. Yet, could it be possible that consumers infer greater healthfulness of foods containing such labels, and subsequently increase their consumption of fair trade certified foods? Across three studies, we demonstrate that fair trade labels can increase consumption by 26% to 31%. In study 1, we demonstrate that individuals consume more if the food product contains a fair trade label. In the subsequent studies we home in on the underlying process, demonstrating that the effect is mediated by the product’s perceived healthfulness (study 2 and 3) To the best of the authors’ knowledge, this is the first study that (1) tests the effects of fair trade labels from third-party certifiers in package-based experiments, (2) examines the effects of fair trade labels on consumption, and (3) directly tests an overall health halo—perceived healthfulness—as the underlying process. In doing so, this research contributes to the values-based labeling and health halo literatures, while offering implications for public policy makers, consumers, and food marketers.