Optionally green: The effect of hybrid product default policy on consumer response to hybrid products

Abstract

AbstractIn today's marketplace, products can feature both “green” and “non‐green” attributes and consumers, with the press of a button, can select their preferred operating mode (green vs. nongreen). In this research, we define such products as hybrid, arguing that their choice architecture design—specifically, the default operational mode—plays a pivotal role in influencing consumer evaluation and purchase behavior. In four experiments, we found that consumers view a hybrid product as more environmentally friendly when the green mode is the default setting and can be turned off (opt‐out), rather than when the green mode must be activated (opt‐in). Specifically, we show that, when efficiency (vs. effectiveness)—related attributes are valued, the opt‐out (vs. opt‐in) default policy enhances purchase behavior. Moreover, we find that this effect is mediated by green attribute centrality, in that consumers perceive the opt‐out (vs. opt‐in) default policy as more central. Finally, we find that the effect of default policy is stronger for consumers with an analytical, as opposed to a holistic, thinking style. This article contributes to both default policy and hybrid product literature and provides managerial implications for the design and promotion of hybrid products.