Proceedings of the 8th International Conference on Advanced Research in Management, Business and Finance
Year: 2024
DOI:
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ESG Reporting and Consumer Product Choice – Evaluating Corporate Sustainability Branding in Fast Moving Consumer Goods
Yvette Skretkowicz, Jens K. Perret
ABSTRACT:
This work analyzes the potential impact of corporate sustainability marketing, in particular, the inclusion of an ESG label displayed on the product packaging, on consumer preferences in the FMCG industry. First, the benefits of the holistic sustainability label ESG are theoretically derived and discussed. In addition, an empirical study was conducted where participants faced a hypothetical purchase decision within a survey. Respondents had to decide how likely they would purchase an otherwise identical chocolate bar when sustainability labels and prices vary. Then, using conjoint analysis to examine respondents’ behavior, the utility of an ESG label is estimated. Furthermore, the marginal willingness to pay (MWTP) for an ESG label, as well as for an organic and fairtrade label, is calculated. The paper also distinguished between a state certified ESG label and a third-party privately organized ESG labelling. Results show that an ESG label has the highest average importance for consumers. Moreover, respondents are willing to pay a premium for a chocolate bar with an ESG label displayed, whereas respondents are willing to pay the most for a state certified ESG label. The results point to the importance for companies to incorporate ESG labels into the marketing mix and politics to regulate ESG labelling.
keywords: consumer preferences, ESG, fast moving consumer goods, corporate sustainability branding, conjoint analysis, sustainability labels, marginal willingness to pay