Will consumers pay a premium for ethical information?

In: Social responsibility journal: the official journal of the Social Responsibility Research Network (SRRNet), Band 5, Heft 4, S. 464-477

Abstract

PurposeThe purpose of this paper is to identify the factors that may influence a consumer to pay a premium for a product or service communicating ethical information.Design/methodology/approachA survey was administered to 77 subjects and a conceptual model of five specific inter‐related constructs was tested using LISREL.FindingsThere is a sequence of events that leads consumers to be willing to pay a premium for a product communicating ethical information. This sequence starts with the need for information which, in turn, leads to socially responsible behavior and social sacrifice and, finally, to the intention to pay a premium. Importantly, this sequence is positively moderated by monetary resources available to spend in the category.Research limitations/implicationsTo increase generalizability, this study should be replicated among other sample compositions and for additional products and/or services.Practical implicationsThe research details the multi‐step consumer decision‐making process that marketers need to understand in order to market a premium priced product that delivers a social benefit.Originality/valueSocially responsible behavior is not sufficient by itself for a consumer to pay a premium for a product communicating ethical information. Rather, socially responsible behavior leads to a willingness to make a sacrifice which then leads to intentions to pay a premium price.