Escaping the Green Dilemma: Marketing Interventions on Sustainability Adoption
(A2024-119344)

AUTHORS

Ziqi Zhong, The London School of Economics and Political Science; Xiaolin Li, The London School of Economics and Political Science

ABSTRACT

This study addresses the "Green Dilemma," exploring factors behind consumer inertia in adopting eco-positioned products. Employing behavioural and topic modelling through experimental data, it offers insights into consumer attitudes towards Corporate Social Responsibility (CSR) and green strategies. Contrasting predictions in literature about eco-positioning's impact on consumer behavior are examined. A novel utility function, supported by experimental studies, quantifies eco-positioning's effect on inertia. Findings reveal eco-positioning counters inertia, especially in long-term users, challenging status quo bias. A key discovery is the monetary value of eco-positioning: a 3.12% reduction in emissions equals a $1 incentive, aiding businesses and policymakers in CSR investments. Additionally, eco-positioning's impact is more substantial and less affected by privacy concerns than monetary incentives, suggesting new research directions on privacy, eco-positioning, and consumer inertia.