Third-Party Verification Badging for Consumer Trust: Case Study from Health and Nutrition Categories
Abstract
The article examines the role of independent certification and trust-badge systems as an institutional mechanism for reducing information asymmetry in the health and nutrition segments. The relevance of the study is driven by the rapid growth of dietary supplements and functional products, accompanied by escalating consumer distrust and the rise of label skeptics. Under such conditions, external verification functions not as an optional marketing attribute but as a key quality signal that bridges costly auditing with the consumer’s simplified cognitive processing of information. The work aims to analyze the theoretical foundations and practical cases of independent badges in healthcare and nutraceuticals, as well as to assess their capacity to generate a durable trust premium. The novelty of the study lies in a comprehensive examination of certification through the lens of the economics of trust and cognitive psychology: the badge is interpreted simultaneously as a costly signal of a manufacturer’s probity and as a visual hash that facilitates consumer choice. The main results show that the display of an outward sign not only raises the subjective feeling of safety and lowers perceived risk but also translates into financial benefits, from increased readiness to pay to boosted loyalty and keeping a price premium. At the same time, the system’s weakness is revealed: the doubting of one mark can throw doubt on a whole setup, making protocol openness and reputation risk control key parts of certification strategy. The article will be helpful to researchers in the economics of trust, marketers, experts in health and nutrition, and practitioners engaged in designing and implementing independent certification systems.
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