Consumer preferences and WTP for sustainability label combinations in agricultural products: insights from China

Purpose Consumers’ preference for sustainability label combinations is investigated in China using rice as an anchor product. Specifically, we aim to explore whether environmental, social, and economic sustainability labels and their combinations have different effects on consumers’ willingness to pay (WTP). Design/methodology/approach A choice experiment was conducted on 800 Chinese consumers performing a mixed logit model (MXL). Findings The results show that consumers are more willing to pay a premium for agricultural products with eco-labels (organic/green) compared to those with geographical indication (GI) labels and traceable information. For products with double labels, results showed that consumers’ WTP for the combined use of the GI label and traceable information is higher than other label combinations. However, for agricultural products, while triple labels resulted in higher premiums, the study suggests that the triple-label strategy may not always be the optimal strategy for companies. Additionally, consumers’ preference for agricultural products with sustainability labels is significantly affected by label knowledge, health and environmental concerns, income and education level. Originality/value This study uses traceability information as a social sustainability label to explore how its combination with environmental sustainability labels and economic sustainability labels in developing countries affects consumers’ WTP. This work has important marketing implications for agricultural producers regarding the use of multiple sustainability labels on agricultural products.