Worth It or Not? Effects of Price Premium on Purchase Intent of Products with Environmental Benefits

摘要

Generally speaking, since firms throw more efforts into new green products comparing with the previous one. Only being able to sell the new green one at a premium price would never allow firms to break even. Moreover, prior research shows environmental protection behavior usually provides social benefits but produces personal costs (Montada and Kals 1995). One question that naturally arises is: when being exposed to the price premium of green products, how would consumers react in making a choice in these situations? Since the cost of green products increases, how to persuade consumers to accept the premium price of green products is central to the development of the green industry. This paper demonstrates that consumers infer the price premium as a signal of quality guarantee rather than green enhancements, i and perceived higher quality is not necessary to increase purchase intent, in turn, perceived price fairness plays an import role in consumers' purchase intent to green products. These results are explained by consumers' equity theory about price fairness. The present study also identifies a moderator of types of concern. The authors put forward some suggestion to increase consumer acceptance of green products at a premium price.