Organic Product Labels: The Credence towards Customers Choice of Buying Behaviour

Abstract

Purpose: The organic food sales are not gaining more potential, due to limited buyers, because the customers have a paucity of product labels. This distrust has highly affected the company's profits. The purpose of the study is to ease these sceptics nature which is crucial for the organic food chain and also the government, emphasizing the necessity to enhance trust and openness in compliance. In order to ensure the credibility of the certified labels, companies have to adopt a set of rules and standards which result in a long-term effect on eco-favoured customers, and trust in the organic label creates a positive impact on customer choice of buying behaviour. Besides, companies also focus on conveying the right messages, so that customers can differentiate organic products from conventional ones.

Design: This literature highlights various issues pertaining to the organic product label and customers’ choice of buying behaviour, and data is obtained from multiple reviews of literature, journals, and case studies.

Findings: Labelling strategy may reduce information asymmetry between customers and the company because labelling strategy may influence product differentiation.

Originality/Value: Studies encompass the certification scheme which is necessary for labelling organic products. Studies identify reading the labels customers easily identify product attributes that serve as a medium between company and end-users. Moreover, green labels, eco-labels, energy labels, and organic labels serve as certificates of organic products.

Paper Type:  Case study