Abstract

This thesis considers and empirically tests if and how third-party certification labels, specifically Organic and Rainforest Alliance, affects consumer valuation. A predictive theoretical framework hypothesizing the effects of certification labels on consumer valuation is developed from various perspectives. The theoretical approaches explore how labels influence decisions, including labels as provision of information, credibility, non-use value, and a quality signal, among others. The various approaches inform the resulting hypotheses, which are evaluated and confirmed from novel data collected from an experimental Vickrey Auction. The findings are suggestive of a significant and positive influence labels on consumer valuation. The study adds insight to the various implications regarding product labeling, including the role of labels in pricing, addressing societal issues, marketing strategy, and policy.

Advisor

Mellizo, Philip

Department

Business Economics; Environmental Studies

Disciplines

Behavioral Economics | Business Law, Public Responsibility, and Ethics | Environmental Studies

Keywords

accredited labels, valuation, experimental auctions, business ethics

Publication Date

2017

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2017 Emily H. Foley