Desirability bias and perceived effectiveness influence on willingness-to-pay for pro-environmental wine products

Abstract

Purpose

Consumer marketing suggests that greater concern for the environment is impacting purchase behavior. Recent surveys into US pro-environmental (PE) purchase patterns show a considerable gap between consumers’ attitude and actual behavior regarding PE products. What these products have in common is a normative component. This research aims to understand whether perceived consumer effectiveness (PCE) and social desirability bias (SDB) influence consumers’ purchase decisions regarding PE wine products and willingness to pay (WTP).

Design/methodology/approach

To assess whether PCE and SDB influence consumer’s actual WTP for PE and conventional wine despite normative beliefs (NBs), two studies with sample sizes of 117 and 124 were conducted in the USA. The first part of each study involved surveying participants as to their NB, SDB, PCE and demographics. The second part of the study measured their actual WTP through participation in an experimental auction.

Findings

Consumers with high levels of NBs were significantly more likely to pay higher premiums for PE wines compared to non-PE wines and had higher levels of PCE, suggesting that they believe their purchase behavior makes a difference to the environment. However, this same group is strongly influenced by SDB, indicating that they may “over-report” desirable behaviors. Controlling for PCE and SDB, the significant difference in price for PE wine and non-PE wine was mitigated. Those with lower NBs were just the opposite, less concerned whether their purchase behavior directly impacts the environment, feeling that non-PE wine may be a better value proposition.

Research limitations/implications

The use of an auction method to assess actual behavior may be skewed by the attempt to get a winning bid, and this research was conducted in one particular part of the USA, which limits the generalizability of the results to other parts of the country or world.

Originality/value

The findings from the current research provide important information for wine producers, distributors and retailers, specifically the development of marketing and branding strategies, and as a method for normative product/brand differentiation in a competitive marketplace.

Citation

Barber, N.A., Taylor, D.C. and Remar, D. (2016), "Desirability bias and perceived effectiveness influence on willingness-to-pay for pro-environmental wine products", International Journal of Wine Business Research, Vol. 28 No. 3, pp. 206-227. https://doi.org/10.1108/IJWBR-09-2015-0042