How does public recognition affect price sensitivity to green products? The role of self‐construal and temporal distance

Abstract

AbstractThis study focused on the role of public recognition in fostering lower levels of price sensitivity to green products and the factors that influence this relationship. We conducted three studies to analyze the relationship between public recognition and price sensitivity to green products and the moderating effects of self‐construal and temporal distance on this relationship. A total of 865 persons took part in the research. Study 1 found that public recognition significantly reduces price sensitivity to green products. In addition, with the activation of public recognition, consumers with higher levels of independent self‐construal (IND SC) were more price‐sensitive compared to consumers with higher levels of interdependent self‐construal (INTER SC). Study 2 reassessed the results of Study 1 using a different product and larger sample size; it also provided a sample database for Study 3. Results from Study 2 and Study 3 showed that, in relation to their initial green purchase behavior, consumers with higher levels of IND SC were more price‐sensitive in subsequent green purchase behavior than consumers with higher levels of INTER SC when public recognition was activated. Furthermore, IND SC consumers' price sensitivity to green products between initial purchase and a subsequent purchase appears as an inverse U‐shaped curve by temporal distance matching from present to near future (7 days later) and then to distant future (15 days later). The study sheds light on the important roles of public recognition, self‐construal, and temporal distance in predicting price sensitivity to green products.