IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v28y2019i5p786-793.html

Does advertising the green benefits of products contribute to sustainable development goals? A quasi‐experimental test of the dilution effect

Author

Listed:
  • Gilles Grolleau
  • Naoufel Mzoughi
  • Angela Sutan

Abstract

Using two studies, we examine the dilution effect for green products, by testing whether advertising green benefits decreases their perceived instrumentality and thus harms sustainable development. We use a between‐subject design and ask participants to evaluate the efficacy of a pen (Study 1) and a dish detergent (Study 2) with and without environmental attributes. Our results are inconsistent with the predictions of the dilution model because the perceived instrumentality of both products does not decrease when environmental benefits are added. Our findings are relevant for eco‐labeling given anecdotal evidence suggesting that adding green information can harm the perceived quality of products.

Suggested Citation

  • Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2019. "Does advertising the green benefits of products contribute to sustainable development goals? A quasi‐experimental test of the dilution effect," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 786-793, July.
  • Handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:786-793
    DOI: 10.1002/bse.2280
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2280
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.2280?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alexander Chernev, 2007. "Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(4), pages 430-444, January.
    2. Camerer, Colin F & Hogarth, Robin M, 1999. "The Effects of Financial Incentives in Experiments: A Review and Capital-Labor-Production Framework," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 7-42, December.
    3. Gilles Grolleau & Lisette Ibanez & Naoufel Mzoughi & Mario Teisl, 2016. "Helping eco-labels to fulfil their promises," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 792-802, August.
    4. Esben Rahbek Pedersen & Peter Neergaard, 2006. "Caveat emptor – let the buyer beware! environmental labelling and the limitations of ‘green’ consumerism," Business Strategy and the Environment, Wiley Blackwell, vol. 15(1), pages 15-29, January.
    5. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    6. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-1326, December.
    7. Katherine Farrow & Gilles Grolleau & Naoufel Mzoughi, 2018. "What in the Word! The Scope for the Effect of Word Choice on Economic Behavior," Kyklos, Wiley Blackwell, vol. 71(4), pages 557-580, November.
    8. George E. Newman & Margarita Gorlin & Ravi Dhar, 2014. "When Going Green Backfires: How Firm Intentions Shape the Evaluation of Socially Beneficial Product Enhancements," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(3), pages 823-839.
    9. Roe, Brian E. & Teisl, Mario F., 1998. "The Economics Of Labeling: An Overview Of Issues For Health And Environmental Disclosure," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-11, October.
    10. Armin Falk & James J. Heckman, 2009. "Lab Experiments are a Major Source of Knowledge in the Social Sciences," CESifo Working Paper Series 2894, CESifo.
    11. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
    12. Schubert, Christian, 2017. "Green nudges: Do they work? Are they ethical?," Ecological Economics, Elsevier, vol. 132(C), pages 329-342.
    13. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    14. Meyvis, Tom & Janiszewski, Chris, 2002. "Consumers' Beliefs about Product Benefits: The Effect of Obviously Irrelevant Product Information," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(4), pages 618-635, March.
    15. Beretti Antoine & Grolleau Gilles & Mzoughi Naoufel, 2009. "How Cognitive Biases Can Affect the Performance of Eco-Labeling Schemes," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(2), pages 1-13, December.
    16. F. Testa & F. Iraldo & A Vaccari & E. Ferrari, 2015. "Why Eco‐labels can be Effective Marketing Tools: Evidence from a Study on Italian Consumers," Business Strategy and the Environment, Wiley Blackwell, vol. 24(4), pages 252-265, May.
    17. Daniel Read, 2005. "Monetary incentives, what are they good for?," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(2), pages 265-276.
    18. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    19. Rubinstein, Ariel, 2001. "A theorist's view of experiments," European Economic Review, Elsevier, vol. 45(4-6), pages 615-628, May.
    20. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hilton, Joshua, 2025. "An integrated analysis of greenhush," Innovation and Green Development, Elsevier, vol. 4(2).
    2. Kanishka Pathak & Gyan Prakash & Monika Jain & Reeti Agarwal & Rekha Attri, 2024. "Do eco labels matter for green business strategy and sustainable consumption? A mixed method investigation on green products," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4271-4291, July.
    3. Zoe Warmate & Mohamed Khaled Eldaly & Ahmed A. Elamer, 2021. "Offering flexible working opportunities to people with mental disabilities: The missing link between sustainable development goals and financial implications," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1563-1579, May.
    4. Clot, Sophie & Grolleau, Gilles & Ibanez, Lisette, 2022. "A reference point bias in judging cheaters," Journal of Economic Psychology, Elsevier, vol. 89(C).
    5. Abhijeet Digalwar & Rakesh D. Raut & Vinay S. Yadav & Balkrishna Narkhede & Bhaskar B. Gardas & Ashwini Gotmare, 2020. "Evaluation of critical constructs for measurement of sustainable supply chain practices in lean‐agile firms of Indian origin: A hybrid ISM‐ANP approach," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1575-1596, March.
    6. Tantawy Moussa & Amir Allam & Mahmoud Elmarzouky, 2022. "Global modern slavery and sustainable development goals: Does institutional environment quality matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2230-2244, July.
    7. Lotte Hallez & Yara Qutteina & Filip Boen & Tim Smits, 2021. "The ABC’s of Ecological and Nutrition Labels. The Impact of Label Theme and Complexity on the Environmental Footprint of Online Grocery Choices," Sustainability, MDPI, vol. 13(5), pages 1-28, February.
    8. Dan R. Bradbury & J. Joseph Cronin, 2025. "Environmentally friendly but strategically useful? A systematic review of marketing’s consideration of green initiatives," AMS Review, Springer;Academy of Marketing Science, vol. 15(1), pages 261-288, June.
    9. Yung‐Chuan Huang & Chih‐Hsing Liu, 2024. "Hybrid evaluation approach for the overall impression development through the sustainability concepts and strategy of competition," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(3), pages 2268-2281, June.
    10. Alice Falchi & Gilles Grolleau & Naoufel Mzoughi, 2022. "Why companies might under‐communicate their efforts for sustainable development and what can be done?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1938-1946, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gilles Grolleau & Luc Meunier & Naoufel Mzoughi, 2025. "Targeting the Sin or the Sinner? Applying Kahneman's Insights to Frame Environmental Messages for Better Waste Management," Post-Print hal-04926850, HAL.
    2. Etilé, Fabrice & Teyssier, Sabrina, 2013. "Corporate social responsibility and the economics of consumer social responsibility," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 94(2).
    3. Mariah Dolsen Ehmke & Alessandro Bonanno & Kathryn Boys & Trenton G. Smith, 2019. "Food fraud: economic insights into the dark side of incentives," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 685-700, October.
    4. Verbeke, Wim & Ward, Ronald W., 2003. "Importance of EU Label Requirements: An Application of Ordered Probit Models to Belgium Beef Labels," 2003 Annual meeting, July 27-30, Montreal, Canada 22077, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Crespi, John M. & Marette, Stephan, 2003. "Some Economic Implications Of Public Labeling," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(3), pages 1-12, November.
    6. Alessandro Bonanno & Francesco Bimbo & Marco Costanigro & Alfons Oude Lansink & Rosaria Viscecchia, 2019. "Credence attributes and the quest for a higher price – a hedonic stochastic frontier approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(2), pages 163-192.
    7. Jean-Francois Dewals & Sterenn Lucas & Fabienne Daures & Pascal Floc’h & Kilian Heutte, 2024. "Assessment of consumer preferences in the context of multiple labels: the case of fishery and aquaculture products," Review of Agricultural, Food and Environmental Studies, Springer, vol. 105(2), pages 299-325, November.
    8. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    9. Gilles Grolleau & Luc Meunier & Naoufel Mzoughi, 2025. "Targeting the Sin or the Sinner? Applying Kahneman’s Insights to Frame Environmental Messages for Better Waste Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(10), pages 2629-2644, October.
    10. Douadia Bougherara & Gilles Grolleau, 2005. "Designing ecolabels in order to mitigate market failures: an application to agrofood products," Post-Print hal-01939943, HAL.
    11. Alice Falchi & Gilles Grolleau & Naoufel Mzoughi, 2022. "Why companies might under‐communicate their efforts for sustainable development and what can be done?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1938-1946, July.
    12. Brañas-Garza, Pablo & Kujal, Praveen & Lenkei, Balint, 2019. "Cognitive reflection test: Whom, how, when," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    13. Gilles Grolleau & Murat C. Mungan & Naoufel Mzoughi, 2024. "Punishment menus and their deterrent effects: an exploratory analysis," European Journal of Law and Economics, Springer, vol. 58(1), pages 1-19, August.
    14. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    15. Oranuch Wongpiyabovorn & Alejandro Plastina & John M. Crespi, 2021. "US Agriculture as a Carbon Sink: From International Agreements to Farm Incentives," Center for Agricultural and Rural Development (CARD) Publications 21-wp627, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    16. Iciar Pavez & Louis-Antoine Saïsset & Leïla Temri & Zouhair Bouhsina, 2022. "Agrifood chain characteristics and sustainability signalling [Caractéristiques des chaînes agroalimentaires et signalisation de la durabilité]," Post-Print hal-03856271, HAL.
    17. Gabriele Jahn & Matthias Schramm & Achim Spiller, 2005. "The Reliability of Certification: Quality Labels as a Consumer Policy Tool," Journal of Consumer Policy, Springer, vol. 28(1), pages 53-73, December.
    18. Ramona Weinrich & Annabell Franz & Achim Spiller, 2016. "Multi-level labelling: too complex for consumers?," Economia agro-alimentare, FrancoAngeli Editore, vol. 18(2), pages 155-172.
    19. Teisl, Mario F. & Roe, Brian, 1998. "The Economics of Labeling: An Overview of Issues for Health and Environmental Disclosure," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(2), pages 140-150, October.
    20. Stéphan Marette & John Crespi, 2003. "Can Quality Certification Lead to Stable Cartels?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 43-64, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:28:y:2019:i:5:p:786-793. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.