Green Branding: Do Local and Global Brands Benefit from Organic Labeling
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The organic food market grows vastly across the globe within a fairly static total food market (e.g., Baker et al. 2004). Many countries show annual growth rates of the organic food ‘industry’ of up to 30 percent (e.g., Essoussi and Zahaf 2008). Nowadays, the USA, Europe, and Australia even number this industry among the most promising ones (e.g., Gifford and Bernard 2006). Simultaneously, an increasing magnitude in the number of brands being offered within the retail market can be discerned. It has been observed that firms successfully distinguish brands by means of features that are relevant, meaningful, and valued. Besides, the differentiation must be perceptible by the consumers. Obviously, organic food production has become a distinguishing feature of increasing importance (Essoussi and Zahaf 2008). Despite the rising interest in using organic labeling to distinguish brands, research efforts have not yet focused on this brand differentiation approach. Thus, our study intends to contribute to fill this research gap by looking at organic labels as a brand differentiation strategy.