Abstract
Green products are typically more expensive than their regular counterparts. Companies try to increase consumer acceptance of green premiums through different marketing strategies. This research investigates whether and how different price premium display strategies adopted by companies influence consumer preferences for green products. The research model is derived from cognitive dissonance theory. The results showed that highlighting the green premium led consumers to perceive greater company effort, which, in turn, positively influenced their perception of self-accountability and consequently increased their preference for green products. In addition, the positive effect of highlighting green premiums on consumer preference for green products was stronger for hedonic products than for utilitarian products. The findings deepen the understanding of consumers’ decision-making processes in accepting green premiums and provide suggestions for companies to implement green premium display strategies.
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