An eco-label’s influence on brand and consumer behaviour

There is a need for continuous development of the companies if they want to stay competitive in a constantly changing world. One way for companies in the industry of daily consumer goods to differentiate themselves is to only use organic raw material in their products. If they do so they can get certified and will be allowed to use KRAV:s brand on their product. The medial attention is focused on the climate crisis which has made the consumers aware of and more willing to influence through their actions.The aim of this thesis is to investigate the effects of the eco-label KRAV on the brand and consumer behaviour. To fulfill the aim we have studied branding and consumer behaviour theories. The empirical findings are based on nine phone interviews and relevant secondary data. The questions set up for investigation aims to present the advantages and disadvantages companies can experience through an eco-labeling as well as how an eco-label can influence the consumers in their buying process.The conclusions show that the advantages the eco-label can provide depend on how well-known the company’s own brand is. For brands that are already well-known the eco-label works as a complement in their branding strategy and can be a short cut to a better image. It gives a guarantee and can work as a means of positioning. For brands that are less known it can work as a tool to get in to new market channels. The disadvantages that can arise are that the brand can get blurred and the profitability is lower than for conventional products.The eco-label makes the buying process easier and gives the customer a guarantee for an organically produced product. The disadvantages with an eco-label for the customer are primarily that they are more expensive than the conventional products and that many labels can confuse the customer.

Author: Wallgren, Rosanna,Claesson, Cecilia

Source: Linköping University

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