The effects of organic labels on global, local, and private brands: More hype than substance?

With an ever-expanding market for diversified health food products, marketers can formulate a unique selling proposition by differentiating their brands using organic labels issued by an independent accredited institution for organic product testing. Using in-depth interviews, we verify four main purchasing motives for organic food in Germany: healthiness, hedonism, environmental friendliness, and food safety. Moreover, in two experiments, we show that the use of an organic label affects consumers' perceptions of global, local, and private brands with regard to their main purchasing motives. The positive effects of organic labeling are also supported for consumers' purchase intentions and their willingness to pay a price premium. Notably, private brands are more adept at profiteering from the use of organic labels than global and local brands.