Developing a Portfolio of Sustainable Labels: Consumer Perceived Ethicality and Patronage Benefits for Retailers

Retailers increasingly distribute products with a label guaranteeing that certain environmental or social criteria are met. These sustainable labels contribute directly to the creation of product value. This research investigates how they contribute indirectly to develop the retailer’s overall perception of ethicality. Anchored in the branding literature, this research shows through a consumer survey that the scope of the portfolios of collective and retailer-owned sustainable labels affects the consumer perceived ethicality of the retailer. Also, a greater perceived ethicality of the retailer leads to more consumer patronage. Implications for theory and retailers are discussed.