The value of environmental status signaling

Delgado, Michael S.; Harriger, Jessica L.; Khanna, Neha

doi:10.1016/j.ecolecon.2014.12.021

Cited by 58 publications

(51 citation statements)

References 30 publications

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“…From the perspective of signaling theory, a person who is displaying a green everyday good that is somewhat costlier than its nongreen counterpart (e.g., a rucksack made from recycled material) can signal that he or she can afford to pay this “green premium” (Costa, Zepeda, & Sirieix, ; Elliott, ; Griskevicius et al, ). According to signaling theory, it is not the absolute cost of a product that counts but the product's premium (whether a luxury premium or a green premium) relative to a typical conventional product (Delgado, Harriger, & Khanna, ; Przepiorka & Berger, ). Griskevicius et al () demonstrate this point in a laboratory experiment.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…However, green premiums and luxury premiums cannot be equated because demonstrative green consumption does not merely signal social status: It can also signal prosocial values and cooperativeness because only a person who cares about the environment and thus, about the public, is willing to pay a premium for a green good, for which a cheaper nongreen counterpart exists (Whitfield, ). For example, a buyer of a low‐emissions hybrid car is willing to pay a premium in order to reduce global CO2 emissions (Delgado et al, ; Thaler & Sunstein, ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

Berger

2019

J of Consumer Behaviour

149

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Many green products are costlier than their nongreen counterparts, for a variety of reasons. This “green premium” is a key challenge marketers face when targeting consumers with these green products. A potential solution to this issue is provided by signaling theory. According to the theory, green products can have a signaling benefit. This benefit acts as an incentive for consumers to pay a premium for environmentally friendly products that can even out their price disadvantage (the green signaling hypothesis). Previous studies have tested the green signaling hypothesis with hypothetical buying decisions. The research at hand tests the green signaling hypothesis with incentive‐compatible purchase decisions in a laboratory setting with student subjects. As predicted, subjects exhibit a higher willingness to pay for green products when the product choice (a nongreen product vs. a costlier green counterpart) is public rather than private. The results also suggest that green signalers are treated more favorably in social interactions. The main result is that a signaling benefit can even out moderate green premiums. One implication of this is the idea that marketers should design green products that are costlier than their nongreen counterparts in a way that renders them clearly recognizable as green. At the same time, marketers should avoid marketing everyday green products with a high green premium.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Theoretical Backgroundmentioning

confidence: 99%

Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

Berger

2019

J of Consumer Behaviour

149

View full text Add to dashboard Cite

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“…Recent studies have highlighted the symbolic value of pro-environmental behaviors (Noppers et al, 2014) and noted that behaviors can vary in their symbolic significance, which has important implications for how these behaviors are perceived and adopted (Sütterlin and Siegrist, 2014). Other studies suggest that being seen as environmentally friendly has social value and that status considerations can motivate high-cost, 'green' consumption (Delgado et al, 2015;Griskevicius et al, 2010;Sexton and Sexton, 2014).…”

Section: Introductionmentioning

confidence: 96%

The influence of contextual cues on the perceived status of consumption-reducing behavior

Brooks

Wilson

2015

Ecological Economics

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The question of whether and when behaviors that reduce overall consumption are associated with low status has not been adequately explored. Previous research suggests that some low cost environmentally-friendly behaviors are stigmatized, but has not accounted for the impact of contextual information on perceived status. Here, we use costly signaling theory to describe why consumption-reducing behaviors may be associated with low status and when and how this perception might change. We report two empirical studies in the U.S. that use a large sample of graduate students (N = 447) to examine the effects of contextual information on how consumption-reducing behaviors are perceived. We then explore the perceived appropriateness of consumption-reducing behavior for signaling status relative to alternative non-environmental behaviors. Using linear mixed-effects models, we find that information indicating that consumption-reducing behavior is a choice results in higher perceived status. However, we find that consumption-reducing behaviors are perceived to be less appropriate for conveying status than consumption-intensive behaviors. The environmental orientation of the respondent has little effect on perceptions of status in both studies. These results provide insights into the dynamic, evolutionary process by which sustainable consumption might become more socially acceptable and the social factors that may inhibit this process

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“…Beyond sexual attraction, other forms of conspicuous consumption have been identified, such as conspicuous altruism and conspicuous conservatism (Zabkar and Hosta 2013;Griskevicius, Tybur, and Van den Bergh 2010;Sexton and Sexton 2014;Delgado, Harriger, and Khanna 2015). Essentially it is argued that individuals act altruistic or conserve resources conspicuously to show that they can "waste" excess resources and increase their social status (Griskevicius, Tybur, and Van den Bergh 2010).…”

Section: Conspicuous Consumptionmentioning

confidence: 99%

“…Sexton & Sexton consider the additional conspicuous value of a Prius, finding that depending on the region, the conspicuous aspects of the Prius could result in additional willingness-to-pay of $400 to $4,000 per car (Sexton and Sexton 2014). Another regression model found that the Prius had an average additional value of about $500 due to its conspicuous value (Delgado, Harriger, and Khanna 2015). Sovacool similarly examined conceptual frameworks for electric mobility, and noted that social and non-monetary aspects play a prominent role in diffusion; as one expert interviewed for the paper noted, " [p]eople are more likely to adopt an electric vehicle when they believe doing so will enhance their status"(B. K. Sovacool 2017).…”

Section: Introductionmentioning

confidence: 99%

Conspicuous diffusion: Theorizing how status drives innovation in electric mobility

Noel

Sovacool

Kester

et al. 2019

Environmental Innovation and Societal Transitions

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This paper explores how conceptions of luxury and status affect the manner in which a relatively novel technology-an electric vehicle-diffuses across societies. To do so, it combines Veblen's notion of conspicuous consumption and Roger's diffusion of innovation by proposing a new theoretical variation, which we term "conspicuous diffusion." The paper sketches natural connections between the two theories, namely how conspicuous consumption relates to technological and societal development, and how diffusion of innovation is intrinsically connected to status. In combining these approaches, we hypothesize that the success of an innovation is guided by its adherence to the canons of conspicuousness and conspicuous value, which it loses as the innovation diffuses across the population. To illustrate the explanatory power of conspicuous diffusion, we examine the status of electric vehicles in the Nordic region, based on original data from multiple methods, including expert interviews and focus groups. We find that conspicuous diffusion can explain previous failures and current successes of electric vehicle diffusion patterns. The paper concludes with recommendations for policymakers, industry, and academia.

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The value of environmental status signaling

Cited by 58 publications

References 30 publications

Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

Signaling can increase consumers' willingness to pay for green products. Theoretical model and experimental evidence

The influence of contextual cues on the perceived status of consumption-reducing behavior

Conspicuous diffusion: Theorizing how status drives innovation in electric mobility

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