The Effect of Knowledge on Decision-Making in the Context of Organic Cotton Clothing

This research was designed to study whether consumer knowledge on organic cotton and relevant issues influences attitude toward and price acceptance of organic cotton clothing. The effect of consumer knowledge was also studied on the way consumers use product label information in purchasing organic cotton clothing. An online survey was developed to measure the variables including experimental choice-based conjoint models for mandatory and auxiliary label specifications. Four hundred ninety-eight people completed the survey. The results indicated that moderately and highly knowledgeable participants were more willing to buy organic cotton clothing at higher price points and they had more positive attitudes toward organic cotton clothing than low knowledgeable participants. The results suggest that differentially knowledgeable consumers may attend to different types of information provided on product labels to evaluate organic cotton apparel products. Providing product-related information on product labels is essential; however, providing additional information on the benefits of using organic cotton and socially responsible business practices may improve consumers’ knowledge and acceptability of organic cotton apparel products.