Although past research confirmed that consumers are aware of the ecological and social implications associated with their own consumption choices, studies have frequently observed a discrepancy between attitude and actual behaviour. This discrepancy, often entitled as the attitude-behaviour-gap, can be partly explained by the lack of sustainability information and trust deficits. In this context, product labelling is considered a useful approach to foster sustainable consumption behaviour. However, consumers often distrust products with sustainability labels. This distrust may arise because consumers lack information about whether or not price mark-ups are warrantable. Arguably, the general lack of transparency regarding pricing (or individual price components) of sustainable products creates uncertainty, and hence, reduces consumers’ willingness to pay a significantly higher price for the postulated sustainability characteristics. Moreover, conventional labels are characterized by aggregated information and symbols, which the consumer can fluently process and easily understand. However, individually relevant information, which is crucial in a specific buying situation, might be lost. To overcome these obstacles, the paper marries the literature on sustainability labelling and price partitioning and investigates the effectiveness of an alternative labelling approach. This labelling approach specifies both the sustainability measures and price component consumers must pay for sustainability. Such kind of price-transparent sustainability labelling could reduce information asymmetries, and thus create information security. The paper reports a 2 (sustainability information) × 2 (price labelling scheme) × 2 (price level) experimental between subjects design. In sum, 362 respondents participated in the study, which was conducted in the field of the clothing industry using a simple, white T-shirt as test object. Sustainability is currently a relevant topic in the clothing industry with regard to environmental impacts (e. g., excessive use of chemical and natural resources, GHG emissions, air and water pollution) and ethical standards (e. g., poor wages, long working hours, worker’s right) in all stages of a products life cycle. Firstly, a pre-test identified important sustainability characteristics, which influence consumers’ purchase decision for T-shirts. The pre-test also specifies price ranges of consumers’ willingness to pay for a sustainable T-shirt. A second pre-test confirms the manipulation of all three experimental factors. The main study then confirms that providing detailed sustainability information increases the consumers’ WTB unconditionally. Using a transparent price labelling scheme additionally raises the effect of sustainability information if general willingness to pay for the product exceeds the base price of the mainstream counterpart and if only moderate levels of price mark-ups are used. The conceptual model confirmed in this study outlines a series of moderating conditions, which managers should consider when deciding on the price and communication politics of their sustainable products. Hence, choosing the most effective way to promote sustainable products is no simple yes or no answer, but rather a contingency approach. Based on this approach, the paper guides marketers in their endeavour to improve the sustainability labelling.
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