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The growing emphasis on environmental sustainability has significantly shaped consumer behavior, driving demand for sustainably produced products that contribute to achieving global sustainability goals. A key strategy employed by manufacturers is the use of sustainable labels on packaging, which signal to consumers that the product has been produced with environmental responsibility. While these sustainable labels often come at a premium, making the products more expensive than non-labeled alternatives, they hold the potential to influence consumer perceptions and purchasing decisions. However, limited research has examined the factors influencing the willingness to pay (WTP) premium for sustainably labeled packaged food products, particularly among working adults in Malaysia. This conceptual analysis aims to explore the antecedents that drive WTP premiums in this demographic, drawing on frameworks such as the Signaling Theory and the Diffusion of Innovation (DOI) Theory. By conceptualizing the relationship between sustainable labels and consumer behavior, the analysis seeks to identify key drivers that influence WTP for sustainably labeled packaged food. The implications of these findings for marketers and policymakers are discussed, with a focus on understanding sustainability-driven preferences in emerging markets like Malaysia. The analysis contributes to the broader field of green marketing, offering insights into consumer behavior and potential strategies for promoting sustainable consumption.
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