This bachelor thesis argues for consumers' views on origin labeling effect and their willingness to pay for goods with this kind of label. The purpose of this study is to analyze the factors that influence and to measure willingness to pay for a national origin labeled product previously only competeing with a less expensive conventional product, when a further regional product is introduced in the purchasing decisions of consumers. This is achieved by testing whether Simonson's (1989) theory of the compromise effect is applicable to increase consumers' willingness to pay for eco-labeled food products. The factors affecting the willingness to pay; trust in eco- label, opinions about the products of their own nation and the surrounding region. Furthermore presents theory about what underlying the consumer consumption choices.

In order to achieve credible results 240 respondents have participated in a questionnaire survey. This study is partly based on an experiment which purpose is to demonstrate a causal relationship to whether the introduction of a locally produced alternative affects the willingness to pay for a product marked with Swedish origin.

Survey findings show that the willingness to pay for a good labeled with country of origin increases when a third locally produced alternative is being added. This thesis contributes with information to decision makers in the food industry, on how they can extend their range and so on affect consumers' willingness to pay for goods labeled with Swedish origin.