Eco-Label

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ECO-LABELS IMPACT CONSUMER BEHAVIOR
Rumaizah Abd Aziz
Faculty of Business Management, UiTM Kedah
Abstracts
Purpose – The objective of this paper is to determine the impact of consumer behavior through the eco-label products of marketing. Methodology – This paper reviews consumer behavior and advertising to identify how consumers are persuaded to greener product label. The information are collected through journal reading, and searching from website. Keywords – Consumer behavior, green advertising, environmental Paper type – Conceptual paper

Introduction
Eco-labeling schemes provide consumers with information about the environmental quality of individual products, at the point of purchase, in order to enable them to choose products that are acceptable from an environmental point of view. Eco-labeling is an important means to enhance transparency and consumer trust in environmental claims (Commission of the European Communities, 2007). The environmental characteristics of products have become increasingly important to consumers. Firms have responded by placing eco-labels on products that highlight the item’s environmental attributes and by introducing new, or redesigned, ‘‘green’’ products. From a policy perspective, one aim of eco-labels is to educate consumers about the environmental impacts of the product’s manufacture, use, and disposal, thereby leading to a change in purchasing behavior and ultimately, to a reduction in negative impacts. In order for eco-labels to achieve policy objectives, consumers must hold preferences for certain environmental amenities and respond to the information presented on eco-labels by altering purchases toward eco-labeled goods. Their widespread use suggests that eco-labeling is perceived as an effective method of altering consumer behavior. The paper starts with discussing the perception of eco-labeling, followed by a consumer behavior attitude towards green advertising and finally the effect of environmental information on consumer judgment and conclusion.

Literature review
Perception of eco-labeling
Eco-labels influences consumer behavior in two ways. First, they introduce green as a considered attribute at the point of sale.  Second, they enable consumers to comparison shop based on green.  Over the past few years, there have been many new eco-labels launched by governments, manufacturers and retailers. In fact, consumers indicate that they are more likely to make eco-friendly purchase decisions if the eco-labels are also widely recognized and trusted brands in of themselves. Green marketing tools is using eco-label on environmental friendly products. The Environmental labels are increasingly being utilized by marketers to promote the identification of green products.

Besides that, to identify eco-label is an important tool whereby to allocated unbalancing information between sellers and buyers. They also state that label is a direction to achieve main function for consumers. The functions are included information about intangible products and value function. The intangible products consist of product characteristics such as product’s quality; brand name and the value function provide a value in themselves such as for prestige, for status, for reputation and for recognition from others. Moreover, define eco-labels as tools for consumer to simplify in making decision for select environmentally friendly products and also know how products are made. Disclosures provide consumers with information that can inform purchase decisions rather than certify a product’s greenness.

According to Nik Abdul Rashid’s (2009) study has shown that awareness of eco-label has positive effect between knowledge of green product and consumer’s intention to purchase. However, it has a low awareness on consumers about environmental issues that make eco-labeling as a green marketing tool is ineffective. This also can make a little understanding about the effects of label information on a...
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