KOREASCHOLAR

In terms of sustainability alone, consumers are faced with a staggering assortment of 463 different labels across 25 industry sectors, a number that is only expected to grow over time (Ecolabel Index 2016). Amid growing environmental concerns, research suggests that many consumers are unlikely to consider the consequences of their choices at the point of purchase, or if they attempt to do so, they generally do not have the information necessary to make more sustainable choices. Given the rise of ineffective green communication protocols and consumers’ concerns with environmental impacts associated with their purchases, this paper attempts to understand how the provision of sustainability labeling can influence comprehension and consumer decision-making. Utilizing the ambiguity theoretical framework (Einhorn and Hogarth 1985), we suggest that perceptions of sustainability will be influenced using an anchor comprising a plausible range based on consumers’ existing beliefs and internal points of reference (Broniarczyk and Alba 1994). That is, consumers revert to a pre-existing reference point, and the new information does not allow for much movement in perceptions. In an ambiguous situation in which consumers have limited knowledge of product sustainability, the perceived brand-based sustainability level is expected to allow consumers to establish an initial value of sustainability (Hogarth and Kunreuther 1992). Our findings suggest that providing environmental information can be a useful tool in assisting consumers in making sustainable decisions. Providing quantitative aggregated environmental impact information of products influences consumers’ perceived ambiguity, leading to evaluation of the brand. The perceived ambiguity derived from sustainability level provides an underlying mechanism in information processing. Given rising concerns about consumers ability to process sustainability information in an efficient manner, our findings suggest that one way to encourage consumers to better process the sustainability information is to mitigate perceived ambiguity. Enforcing disclosure initiatives that assess the environmental impact of products can provide benefit to firms—especially for product categories in which limited loyalty or differentiation exists. Sustainability disclosures appear to offer a mechanism that can help consumers make informed decisions. Furthermore, extrapolating the influence of disclosures on consumer evaluation and choice across the variety of product categories for which consumers routinely make purchases suggests the potential for dramatic increases in global sustainability.

• Yoon-Na Cho(Villanova University, USA)
• Charles R. Taylor(Villanova University, USA)