Why do consumers express strong preference for Geographical Indication (GI) products yet hesitate to pay a premium? This study addresses this paradox by conceptualizing GI consumption as a staged decision process involving purchase intention, premium participation, and premium intensity. Drawing on signaling theory, we argue that premium formation depends on both trust in certification and consumers’ ability to decode label value under market disorder. Using survey data from 521 Chinese urban consumers and a Two-Part Model, we find a significant attitude–behavior gap: high stated preference does not automatically translate into premium payment. Institutional trust determines whether consumers enter the premium market, while GI label knowledge drives premium intensity. Perceived market disorder further strengthens the effect of institutional trust on premium intensity. These findings suggest that strengthening certification credibility and consumer education is essential for enhancing GI premium realization in emerging markets.