Triggering Ethical Food Choices Through Identity Labelling: Evidence From a Field Experiment

ABSTRACT The importance of social and ethical communication as a regulatory instrument to nudge more sustainable consumption patterns is advocated at the European and global policy levels. Little is known about the effectiveness of identity labelling, an innovative form of information provisioning leveraging the individual self‐perception to encourage virtuous behaviours. We conducted a framed field experiment using the Becker‐DeGroot‐Marschak (BDM) mechanism to investigate consumers' responses to social identity labelling, that is, identity labelling hinging upon sensitivity to social issues. This study is the first application to test social identity labelling in an incentive‐compatible food experiment. The results show that overall consumers are indifferent to the presence of social identity labelling, as their willingness to pay for an ethical product does not increase when this information tool is applied. However, environmentally conscious consumers exhibit a premium for products with social identity claims, while social consciousness shows no significant effect. Moreover, the effectiveness of identity labels is not mediated by personality traits conceptualised as the Big Five.