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The Influence of Green Food Label on Firm Reputation from Customer Perspective

Hartanto, Kristin Oktaviani LU and Li, Pan LU (2024) BUSN09 20241
Department of Business Administration
Abstract
In the background of climate change, consumers are increasingly concerned about the environmental impact of products. In China, more food companies started to apply and use the green food label as their strategy tool which can be used to attract customers and gain good reputation. However, it is still not clear how the green food label works and improves the firm reputation standing in customer perspective. The thesis investigated different factors for green food label to affect the firm reputation based on a small food company, Mu Chun Yu food company. In order to gain more insights, the study used semi-structured interviews for both customers and Mu Chun Yu company’s employee also publicly available documents.

These findings identify... (More)
In the background of climate change, consumers are increasingly concerned about the environmental impact of products. In China, more food companies started to apply and use the green food label as their strategy tool which can be used to attract customers and gain good reputation. However, it is still not clear how the green food label works and improves the firm reputation standing in customer perspective. The thesis investigated different factors for green food label to affect the firm reputation based on a small food company, Mu Chun Yu food company. In order to gain more insights, the study used semi-structured interviews for both customers and Mu Chun Yu company’s employee also publicly available documents.

These findings identify customer awareness of green food labels based on signaling theory. The study found that the label failed to signal to customers, which affected their perspective. As the study proposed, four possible factors can influence customers' perspectives: trust, product quality, social and environmental responsibility, and customer satisfaction. However, the study found that only three of these factors have a limited influence. Given the lack of awareness of the green food label's true meaning, the study suggests that customer satisfaction is not a suitable influencing factor in this case. In contrast, trust and product quality do influence how customers view a firm's reputation. Furthermore, customers perceived the green food label as a tool connecting a company's social and environmental responsibility to its marketing efforts. Finally, the findings also reveal a new factor that weakens the green food label's influence: brand familiarity.

This thesis extending previous research by exploring how green food labels shape customers' perspectives on firm reputation. This study enriches the signaling theory and increases the impact of both customer perception and brand familiarity on signaling theory. Besides, it provides the direction for companies who want to implement sustainable strategy by using green food label to enhance the firm reputation. Furthermore, based on the findings, the study come up some suggestions for both companies and governments, which can make the green food label plays a bigger role. (Less)
Please use this url to cite or link to this publication:
author
Hartanto, Kristin Oktaviani LU and Li, Pan LU
supervisor
organization
course
BUSN09 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
green food label, firm reputation, customer perspective, signaling theory.
language
English
id
9159834
date added to LUP
2024-06-25 16:25:42
date last changed
2024-06-25 16:25:42
@misc{9159834,
  abstract     = {{In the background of climate change, consumers are increasingly concerned about the environmental impact of products. In China, more food companies started to apply and use the green food label as their strategy tool which can be used to attract customers and gain good reputation. However, it is still not clear how the green food label works and improves the firm reputation standing in customer perspective. The thesis investigated different factors for green food label to affect the firm reputation based on a small food company, Mu Chun Yu food company. In order to gain more insights, the study used semi-structured interviews for both customers and Mu Chun Yu company’s employee also publicly available documents. 

These findings identify customer awareness of green food labels based on signaling theory. The study found that the label failed to signal to customers, which affected their perspective. As the study proposed, four possible factors can influence customers' perspectives: trust, product quality, social and environmental responsibility, and customer satisfaction. However, the study found that only three of these factors have a limited influence. Given the lack of awareness of the green food label's true meaning, the study suggests that customer satisfaction is not a suitable influencing factor in this case. In contrast, trust and product quality do influence how customers view a firm's reputation. Furthermore, customers perceived the green food label as a tool connecting a company's social and environmental responsibility to its marketing efforts. Finally, the findings also reveal a new factor that weakens the green food label's influence: brand familiarity. 

This thesis extending previous research by exploring how green food labels shape customers' perspectives on firm reputation. This study enriches the signaling theory and increases the impact of both customer perception and brand familiarity on signaling theory. Besides, it provides the direction for companies who want to implement sustainable strategy by using green food label to enhance the firm reputation. Furthermore, based on the findings, the study come up some suggestions for both companies and governments, which can make the green food label plays a bigger role.}},
  author       = {{Hartanto, Kristin Oktaviani and Li, Pan}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Influence of Green Food Label on Firm Reputation from Customer Perspective}},
  year         = {{2024}},
}