Citation
(2014), "Executive summary of “Price presentation effects on green purchase intentions”", Journal of Product & Brand Management, Vol. 23 No. 3. https://doi.org/10.1108/JPBM-04-2014-0568
Publisher
:Emerald Group Publishing Limited
Executive summary of “Price presentation effects on green purchase intentions”
Article Type: Executive summary and implications for managers and executives From: Journal of Product & Brand Management, Volume 23, Issue 3
This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.
Growing concerns about safeguarding societal and environmental concerns have led to behavioral changes among certain consumers. Pressure on organizations to conduct business more responsibly is another consequence of this trend. The increase in marketing from a green perspective has brought heightened demand for environmentally friendly products.
To capitalize on the opportunities available, organizations need to inform consumers about how their products and services can make a positive contribution to the welfare of society and the environment. However, what is equally important is the realization that consumers differ in the extent of their greenness. Even though most consumers admit to awareness of environmental issues, studies suggest that purchase decisions of only around 15 per cent are wholly motivated by green objectives. Up to around 60 per cent voice support for environmental friendliness but are reluctant to purchase green products because of their perceived high costs. For the remainder, green issues are of little concern, and their purchase behavior is not influenced by them.
Taking the green approach can result in several benefits for firms. More positive consumer perceptions about the brand, sustainable market position and increased revenue are among the more obvious ones. However, evidence shows that concern about the environment is not the only factor which influences consumer purchase behavior. Trust, relevance, product quality and brand reputation are also important to many people.
However, surveys conducted in different countries have indicated price to be the biggest obstacle to consumer willingness to buy green products. Plenty evidence shows that consumers are positively influenced by price promotions. It is also widely apparent that how the promotion is framed has a considerable bearing on how people react. Framing the message in terms of an outcome being defined as a gain or loss can determine how a consumer perceives a specific deal. Different scholars argue that consumer sensitivity is greater toward potential loss as opposed to potential gain. Avoiding loss is therefore a stronger motivator than is gaining something. In addition to this, belief as to whether their behavior can effect positive change will also influence their decision making. In this context, they are less likely to purchase green products unless they feel that it will help the environment.
Having a “pre-purchase goal” is an additional dimension to consider. It has been suggested that those with such an objective are more responsive to messages framed in terms as a reduced loss, such as paying less for a product. In contrast, an emphasis on saving more or similar messages framing a gain is more preferable to people with no prior goal. On this basis, there are grounds for assuming that people who are concerned about the higher costs of purchasing green products could be reached better with price promotions framed as a “reduced monetary loss”. The premise is that they will regard their savings as being greater due to the lower perceived financial sacrifice that the purchase involves. In contrast, those strongly committed to green issues accept the need to pay more for ecologically friendly goods and services. It is therefore purported that messages framed as a gain might be most appropriate for this segment. Researchers also point to consumers who are medium in terms of their greenness. The assumption here is both types of message framing might have a similar effect on this group.
Extant literature also notes the tendency for consumers to infer product quality from its price. This then determines their perception of value, which is higher when perceived quality is greater than the perceived monetary sacrifice needed to acquire the item. It is widely agreed that price promotions help to increase quality perceptions, as the monetary sacrifice is deemed to be less in such situations. By paying less for a product, savings are perceived to be larger. In these circumstances, purchase intention will typically increase.
Two studies were conducted by Weisstein et al. to explore these issues further. In the first, 108 college students were randomly exposed to one of two price promotion framing conditions. Gain and loss aspects were respectively indicated by a free gift or a monetary discount of the same financial value. The scenario used involved purchasing a green laundry detergent, an item selected because of its popularity among environmentally concerned consumers. Statements about the advantages of green consumption were then read. Responses to questions about greenness, perceived savings, perceived quality and perceived value were used to categorize participants into high, medium and low degrees of greenness.
A different product category was used in the second study, and price promotions were framed as save more or pay less to accordingly reflect the gain or loss promotion facet. Purchasing an energy-saving light bulb was the hypothetical task facing the 128 student subjects. Using the bulb meant either saving $48 on an energy bill or paying $48 less. The same processes, as in the first study, were used to allocate respondents to one of the framing conditions and greenness groups.
Analysis of data from both studies revealed that perceived savings, perceived quality, perceived value and green purchase intention will be greater:
for consumers high in greenness when the price promotion is framed as a gain rather than a reduced loss; and
when consumers low in greenness are presented with a message framed as a reduced loss rather than one framed as a gain.
Results likewise showed that consumer-perceived quality and -perceived savings positively impact value perceived by consumers and thus increase their green purchase intentions.
On this evidence, Weisstein et al. recommend that marketers should offer appropriate free gifts or frame messages as a gain when targeting consumers with a high greenness level. Such consumers are likely to be educated higher earners based in more affluent areas. The authors suggest that the baby boomer cohort in the USA might be responsive to this approach. In contrast, segments identified as low in greenness are likelier to live in low-income areas and be more price-conscious. Monetary discounts or an emphasis on reduced monetary loss is the advised strategy to make such consumers perceive that they can pay less yet play their part in environmental welfare. Both tactics are relevant where middle-class consumers and college students are concerned.
Additional work could explore buy one get one free and other methods of price framing. A consideration of various levels of discount is likewise proposed. Another idea is to investigate price promotion framing with regard to different product categories like food, clothing and high-involvement products. How factors such as price fairness and brand perception influence consumer response to message framing is also worthy of future examination.
To read the full article, enter 10.1108/JPBM-06-2013-0324 into your search engine.
(A précis of the article “Identification and measurement of brand identity and image gap: a quantitative approach”. Supplied by Marketing Consultants for Emerald.)