Abstract
The current work examines how cues traditionally used to signal environmental friendliness, specifically the color green and eco-labels, and influence product efficacy perceptions and subsequent purchase intentions. Across three experiments, we find that environmental cues used in isolation (i.e., green color without an environmental label or an environmental label without green color) reduce perceptions of product efficacy. We argue that this efficacy discounting effect occurs because the isolated use of an environmental cue introduces category ambiguity by activating competing functionality and environmentally friendly schemas during evaluation. We discuss the implications of our findings for research on environmental consumption as well as offer insight into the effective use of environmental cues on product packaging.
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Acknowledgments
Many thanks to the section editor and anonymous reviewers for their comments through the review process. We thank Paul Dion for his assistance with data collection. We also gratefully acknowledge the David Sobey Centre for Innovation in Retail and Services at the Sobey School of Business for their financial support.
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Appendices
Appendix 1—Study 1 Product Stimuli

Appendix 2—Study 2 Product Stimuli

Appendix 3—Study 3 Product Stimuli

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Pancer, E., McShane, L. & Noseworthy, T.J. Isolated Environmental Cues and Product Efficacy Penalties: The Color Green and Eco-labels. J Bus Ethics 143, 159–177 (2017). https://doi.org/10.1007/s10551-015-2764-4
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Keywords
- Color green
- Eco-labels
- Environmental cues
- Product packaging perceptions
- Product efficacy
- Categorization
- Category ambiguity
- Schema incongruity