Evidence of green signaling in green hotels

Abstract

Green signaling posits that environment-friendly purchases signal consumers’ pro-sociality and willingness to pay more for societal/environmental well-being, enhancing their social status. Using three scenario-based quasi-experimental studies, we sought evidence of green signaling by guests in green hotels when status motive is activated, consumption condition is manipulated, and hotel price is varied. Results showed that, when status motive is activated, consumers signal the intent to purchase better-quality conventional hotels when green hotels are priced more or equal and when the consumption condition is private. In public consumption condition, when controlling for price, and in private consumption condition, when green hotels are priced lower, no significant difference was found between purchase intentions regarding conventional and green hotels. This represents slight, although inconclusive, evidence of green signaling. Industry practitioners in green hotels should lower prices and make the consumption process public by providing consumers with opportunities to engage more actively via social media.