The Signal in Consumer Decision-Making: The Role of Green Labels, Health Claims, and Brand Trust

Abstract

Driven by the “dual-carbon strategy” and healthy consumption trends, green labels and health claims have become common on product packages. However, existing researches focus only on the effects of individual labels, with limited exploration of their combined impact. Based on signaling theory, this study treats green labels as high-cost, observable signals and health claims as low-cost signals. It argues that green labels can provide credibility for health claims, thereby enhancing brand trust and increasing consumer purchase intention. A questionnaire survey was conducted using Telunsu dairy products, a premium brand under the Inner Mongolia Yili Group, as a case study. We received 153 valid answers. Results show that green labels directly enhance brand trust and indirectly promote purchase intention by making the health claim more believable. Brand trust significantly mediates the relationship between green labels and purchase intention. This study not only extends the application of signaling theory to green and health marketing but also provides practical guidance for businesses in label design and communication.