From Price to Quantity: Redefining How Consumers Pay the Ethical Premium

Journal of Business Ethics:1-14 (forthcoming)
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Abstract

Although many consumers express strong intentions to engage in ethical consumption, these intentions often do not translate into actual behavior. One major barrier to the adoption of ethical products is their cost since they typically command a substantial price premium over their conventional counterparts. This research explores whether consumers prefer ethical products that are priced identically to their conventional counterparts but are offered in smaller quantities—i.e., “paying” the ethical premium with quantity instead of money. Results from six experimental studies (N = 2332), conducted across three countries, demonstrate that setting the retail price of ethical products to be equivalent to their conventional counterparts, while at a lower quantity, effectively increases their perceived affordability among consumers. Displaying an ethical product with a lower quantity alongside a conventional product at the same retail price allows consumers to prioritize their ethical intentions over price considerations, potentially narrowing the gap between attitudes and actual behaviors. These findings suggest a viable strategy for improving the adoption of ethical products.

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