Consumer awareness and responsiveness towards eco-labelled products: an exploratory study of food industry
Student name: Ms Shweta Agrawal
Guide: Dr Kavita Sardana
Year of completion: 2018
Host Organisation: TERI School of Advanced Studies
Abstract: Environmental consumerism is looked upon for improving the environmental health. It deals with purchasing and consuming those products that are good for the environment. Eco-label scheme was launched with the aim to provide the symmetric information to consumers about such products that increases the longevity of environmental health. In this study an effort has been made to gauge awareness and responses towards eco-labelled organic milk.
However, a key question arises how many consumers have the knowledge about the existence of such products. Even though people are aware of its existence, there are many factors which prevent them from opting for such sustainable products. In order to understand all of these factors, purchasing behavior of 108 consumers of Delhi for organic milk has been accessed. It was found that behavioral factors like attitude, health concern, trust on the label and affordability factor i.e. income have positive impact on the WTP for organic milk. There exists a negative relationship between WTP organic milk and price and age factor. It was also found that Environmental Awareness, Knowledge and education do not have significant impact on the WTP for organic milk. After understanding various psychological, economic and physical factors influencing consumers purchase decision, to what extent, respondents are willing to pay for Eco-Labelled organic milk which is around Rs.29- Rs. 32 for half litre of milk on daily basis.
Last but not the lease, awareness, availability and affordability are key issues that need to be taken into account by the policy maker and business houses for growth in the consumption of eco-labelled products like organic milk.
