Skip to main content
Log in

Environmental and Economic Dimensions of Sustainability and Price Effects on Consumer Responses

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The lack of attention to sustainability, as a concept with multiple dimensions, has presented a developmental gap in green marketing literature, sustainability, and marketing literature for decades. Based on the established premise of customer–corporate (C–C) identification, in which consumers respond favorably to companies with corporate social responsibility initiatives that they identify with, we propose that consumers would respond similarly to companies with sustainability initiatives. We postulate that consumers care about protecting and preserving favorable economic environments (an economic dimension of sustainability) as much as they care about natural environments. Thus, we investigate how two sustainability dimensions (i.e., environmental and economic) and price can influence consumer responses. Using an experimental method, we demonstrate that consumers favor sustainability in both dimensions by giving positive evaluations of the company and purchase intent. In addition, consumers respond more negatively to poor company sustainability than to high company sustainability. In comparison, consumers respond more negatively to the company’s poor commitment to caring for the environment than to the company’s poor commitment to economic sustainability. We also find that consumers do not respond favorably to low prices when they have information about the firm’s poor environmental sustainability. Finally, we find support for an interaction effect between consumer support for sustainability and corporate sustainability; that is, consumers evaluate a company more favorably if the company shares the consumers’ social causes. Overall, we conclude, from our empirical study, support for the idea that consumers do respond to multiple dimensions of sustainability.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Baghi, I., Rubaltelli, E., & Tedeschi, M. (2009). A strategy to communicate corporate social responsibility: Cause related marketing and its dark side. Journal of Business Strategy and the Environment, 16, 15–26.

    Google Scholar 

  • Belk, R. W. (1988). Possessions and the extended self. Journal of Consumer Research, 15 (September), 139–168.

    Google Scholar 

  • Belz, F., & Peattie, K. (2009). Sustainability marketing: A global perspective. West-Sussex: Wiley.

    Google Scholar 

  • Berens, G., van Riel, C. B. M., & van Bruggen, G. H. (2005). Corporate associations and consumer product responses: The moderating role of corporate brand dominance. Journal of Marketing, 69, 35–48.

    Article  Google Scholar 

  • Bhattacharya, C. B., & Sen, S. (2003). Consumer-company identification: A framework for understanding consumers’ relationships with companies. Journal of Marketing, 67, 76–88.

    Article  Google Scholar 

  • Brown, T. J., & Dacin, Peter. A. (1997). The company and the product: Consumer associations and consumer product responses. Journal of Marketing, 68, 68–84.

    Article  Google Scholar 

  • Chabowski, B. R., Mena, J. A., & Gonzalez-Padron, T. L. (2011). The structure of sustainability research in marketing, 1958–2008: A basis for future research opportunities. Journal of the Academy of Marketing Science, 39(1), 55–70.

    Article  Google Scholar 

  • Cronin, J. J., Smith, J. S., Gleim, M. R., Ramirez, E., & Martinez, J. D. (2011). Green marketing strategies: An examination of stakeholders and the opportunities they present. Journal of the Academy of Marketing Science, 39(1), 158–174.

    Article  Google Scholar 

  • DeSimone, L., & Popoff, F. (1997). Eco-efficiency: The business link to sustainable development. Cambridge: MIT Press.

    Google Scholar 

  • Duton, J. M., Dukerich, J. M., & Harquail, C. V. (1994). Organizational images and member identification. Administrative Science Quarterly, 39(2), 239–263.

    Article  Google Scholar 

  • Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11, 130–141.

    Article  Google Scholar 

  • Figge, F., & T. Hahn. (2001). Sustainable value added measuring corporate contributions to sustainability. In Conference proceedings on the 2001 business strategy and the environment conference (pp. 83–92). Leeds: Leeds University, UK.

  • Folkes, V. S., & Kamins, M. A. (1999). Effects of information about firms’ ethical and unethical actions on consumers’ attitudes. Journal of Consumer Psychology, 8(3), 243–259.

    Article  Google Scholar 

  • Handelman, J. M., & Arnold, S. J. (1999). The role of marketing actions with a social dimension: Appeals to the institutional environment. Journal of Marketing, 63(3), 33–48.

    Article  Google Scholar 

  • Hockerts, K. (1996). The SusTainAbility Radar (STAR*), a step towards corporate sustainability accounting. Discussion paper. London: New Economics Foundation.

  • Hockerts, K. (1999). The sustainability radar—a tool for the innovation of sustainable products and services. Greener Management International, 25, 29–49.

    Google Scholar 

  • Irwin, J. R., & McClelland, G. H. (2003). Negative consequences of dichotomizing continuous predictor variables. Journal of Marketing Research, 40(3), 366–371.

    Article  Google Scholar 

  • Isa, M. K. M. (2003, May 12). Applying the triple bottom line approach. Business Times.

  • Kassiola, J. J. (2003). Explorations in environmental political theory: thinking about what we value (p. 12). Armonk, NY: M E Sharpe.

    Google Scholar 

  • Ketola, T. (2008). A holistic corporate responsibility model: Integrating values, discourses and actions. Journal of Business Ethics, 80, 419–435.

    Article  Google Scholar 

  • Krajnc, D., & Glavic, P. (2005). How to compare companies on relevant dimensions of sustainability. Ecological Economics, 55(4), 551–563.

    Article  Google Scholar 

  • Lichtenstein, D. R., Drumwright, M. E., & Braig, B. M. (2004). The effect of corporate social responsibility on customer donations to corporate-supported nonprofits. Journal of Marketing, 68, 16–32.

    Article  Google Scholar 

  • Milliman, J., Von Glinow, M. A., & Nathan, M. (1991). Organizational life cycles and strategic international human resource management in multinational companies: Implications for congruence theory. Academy of Management Review, 16, 318–339.

    Google Scholar 

  • Mitchell, R. W., Wooliscroft, B., & Higham, J. (2010). Sustainable market orientation: A new approach to managing marketing strategy. Journal of Macromarketing, 20(2), 160–170.

    Article  Google Scholar 

  • Mohr, L. A., & Webb, D. J. (2005). The effects of corporate social responsibility and price on consumer responses. Journal of Consumer Affairs, 39, 121–147.

    Article  Google Scholar 

  • Mohr, L. A., Webb, D. J., & Harris, K. E. (2001). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer Affairs, 35, 45–72.

    Article  Google Scholar 

  • Pirsch, J., Gupta, S., & Grau, S. L. (2007). A framework for understanding corporate social responsibility programs as a continuum: An exploratory study. Journal of Business Ethics, 70, 125–140.

    Article  Google Scholar 

  • Pratt, M. G. (1998). To Be or Not to Be: Central Questions in Organizational Identification. In David. A. Whetten & P. C. Godfrey (Eds.), Identity in organizations: Building theory through conversations (pp. 171–207). Thousand Oaks, CA): Sage Publications.

    Google Scholar 

  • Prothero, A., McDonagh, P., & Dobscha, S. (2010). Is green the new black? Reflections on a green commodity discourse. Journal of Macromarketing, 20(2), 147–159.

    Article  Google Scholar 

  • Pujari, D., Wright, G., & Peattie, K. (2003). Green and competitive influences on environmental new product development performance. Journal of Business Research, 56, 657–671.

    Article  Google Scholar 

  • Rios, F. J. M., Martinez, T. L., Moreno, F. F., & Soriano, P. C. (2006). Improving attitudes toward brands with environmental associations: An experimental approach. Journal of Consumer Marketing, 23(1), 26–33.

    Article  Google Scholar 

  • Schaefer, A., & Crane, A. (2005). Addressing sustainability and consumption. Journal of Macromarketing, 25(1), 76–92.

    Article  Google Scholar 

  • Schaltegger S., & Sturm. A. (1998). Eco-efficiency by eco-controlling. Zürich: VDF.

  • Schaltegger, S., & Sturm, A. (1990). Okologische Rationalitat. Die Unternehmung, 4, 273–290.

    Google Scholar 

  • Schaltegger, S., & Sturm, A. (1992). O¨ kologieorientierte Entscheidungen in Unternehmen. Bern: Haupt.

    Google Scholar 

  • Sen, S., & Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research, 38, 225–243.

    Article  Google Scholar 

  • Sheth, J. N., Sethia, N. K., & Srinivas, S. (2011). Mindful consumption: A customer-centric approach to sustainability. Journal of the Academy of Marketing Science, 39(1), 21–39.

    Article  Google Scholar 

  • Singh, J., de los Salmones Sanchez, M. M. G., & del Bosque, I. R. (2008). Understanding corporate social responsibility and product perceptions in consumer markets: A cross-cultural evaluation. Journal of Business Ethics, 80, 597–611.

    Article  Google Scholar 

  • United Nations. (1987). World commission on environment and development. Available at http://www.un-documents.net/wced-ocf.htm.

  • U.S. Census Bureau. (2000). American FactFinder. Available at http://factfinder.census.gov.

  • Varey, R. J. (2010). Marketing means and ends for a sustainable society: A welfare agenda for transformative change. Journal of Macromarketing, 30(2), 112–126.

    Article  Google Scholar 

  • Venkatesh, R., & Mahajan, V. (1997). Products with branded components: An approach for premium pricing and partner selection. Marketing Science, 16(2), 146–165.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sungchul Choi.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Choi, S., Ng, A. Environmental and Economic Dimensions of Sustainability and Price Effects on Consumer Responses. J Bus Ethics 104, 269–282 (2011). https://doi.org/10.1007/s10551-011-0908-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-011-0908-8

Keywords

Navigation