The Effect of Sustainable Categorization Cues on Product Consideration and Choice

In this study, we explore the effect of external categorization cues - specifically sustainable labels and shelf layouts - on consumer decision-making processes in the consumer packaged goods market. Leveraging the subjective prior rational inattention (SP-RI) discrete choice model, we investigate how categorization cues and consumers’ prior knowledge affect consumer choices through mechanisms of attention shifts and information cost. By conducting a choice-based conjoint experiment using hypothetical chocolate bars, our research sheds light on the effect of sustainable categorization cues and their congruency on the attention given to a product and the final choice. The outcomes of this study hold the potential to guide strategies for retailers and marketers regarding the use of sustainability labels and shelf layouts, enhancing consumer engagement with sustainable products and improving market positioning.