Labeling of Texas Based Fiber Products for Environmental Attributes

Abstract

This study of value-based labeling for apparel products examined consumer willingness to pay for three credence attributes of fiber: origin, type and production method. Experimental auctions were conducted with student subjects in Texas and used socks made from cotton and PLA, a fiber manufactured from corn. Tobit regression analysis was performed using the attributes and subject demographics to determine consumer willingness to pay for the various attribute levels and to profile consumers with interest in the attributes. A key finding of this study is that consumers value information about the local origin of fibers. This study demonstrated that experimental auction techniques can be successfully used for apparel product development, which helped to secure funding from industry for a similar study focusing on social responsibility. The study also served to generate pilot data that assisted in securing federal funding for a similar study that will benefit Texas fiber producers by identifying product development and marketing methods that appeal to lifestyle of health and sustainability consumers.