The effectiveness of life-cycle pricing for consumer durables

Martin Grimmer, Morgan P. Miles, Michael Jay Polonsky and Andrea Vocino

Journal of Business Research, 2015, vol. 68, issue 7, 1602-1606

Abstract: This quasi-experimental study examines consumer reactions to including projected energy and carbon costs in print ads for a TV, using an online survey of 2566 Australian consumers. This study determines whether consumers' temporal orientation (past vs. future) moderates these reactions. Participants rate ads that include both energy and carbon costs as the most useful for buying a TV and as having higher perceived value. However, this fact does not affect likelihood of purchase. Participants with a high temporal orientation to the past react less favorably to ads that include carbon costs. This study shows that informing consumers about life-cycle costs does not substantially affect purchase decisions for durable goods but affects perceptions of value and usefulness of pricing information in ads.

Keywords: Environmental consumer behavior; Life-cycle pricing; Time orientation; Green policy (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:7:p:1602-1606

DOI: 10.1016/j.jbusres.2015.02.003

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