Does eco-labeling stimulate green consumption?
Student name: Ms Chayan Arora
Guide: Dr Kavita Sardana
Year of completion: 2015
Host Organisation: TERI University
Supervisor (Host Organisation): Prof Kanchan Chopra
Abstract: The increase in pressure on the resources of earth has necessitated the shift to environment friendly behavior.
This dissertation tries to capture the impact of environmental awareness on consumer’s purchase decision. Ecolabels
are a form of environmental certification under ISO 14000 series, these are seals of approval given to
products which have lesser harmful impact on environment. It basically provides information to customers
regarding their choices. This thesis conceptualizes Eco-label as a product category with the potential to
influence the consumer‘s decision to meaningfully contribute towards a socio-ecologically benign pathway of
development. This study focusses at determining “the factors influencing consumers’ perception on†ecolabeling
and its impact on consumers purchase decision in case of personal care product: Soaps. In particular, it
explores the nature, characteristics and properties of an Eco-label, it‘s potential to communicate to the
consumers of such elements, factors that trump the consumer‘s choice towards a product without such a label,
and recommends steps to fully exploit its potential. The “provision of information (on eco-labels) on the
environmental effects of consumption†is put ahead as a vital tool to overcome information deficit for
environmental products. Reliable eco-labels provide consumers with constructive information on environment
friendliness of products and thus encourage green consumerism. The study finds that information regarding
environment friendliness of a product influences their customer’s choices and marginal willingness to pay.
