Are Consumers Willing to Pay for Sustainability? A Study on Smartphone Consumption
(A2025-126421)

AUTHORS

Nelyda Campos-Requena, Universidad del Desarrollo; Mauricio Leiva, Universidad del Desarrollo

ABSTRACT

The study aims to analyze consumer preferences and willingness to pay for smartphones based on the environmental and social impacts of producing this technological product. Using a choice-based conjoint experiment, the study introduces two sustainable labels: one highlighting environmental aspects like durability and recyclability and another focusing on social factors such as labor conditions and wage equity. We compare preferences for these attributes with the camera quality and price. Our main results showed that camera quality, eco-rating, and social-rating significantly influence consumer choices. However, the WTP for camera quality is valued three times more than an improvement in social production and four times more than an improvement in environmental characteristics. We identified generational differences, with younger consumers having a stronger preference for sustainable production practices, aligning more closely with highly sustainable and conscious consumer behaviors.