The impact of product labels on green preferences and perceptions of customers: an empirical study of milk products in Japan

Abstract

An investigation is presented on the impact of different environmental labels on customer perception of product value. The empirical study targeted consumers who frequently purchase milk for household consumption. A total of 618 consumers were asked to select their 'milk' based on three different environmental labels and their perceptions in terms of product quality and social value. Multinomial logistic regression was utilised to explore the influence of product labels on customer perception. The results show that different environment information leads to customers having different perceptions in terms of value. Knowledge is a significant factor for making a decision on food product purchasing. The environmental label clearly impacts the customer perception of the products. The major contribution of this study is to create a greater understanding of customer perceptions of green concepts on the basis of environmental knowledge and to help firms identify compatible information for sustaining their business.