Eco-Friendly Consumer Innovativeness Insights
Eco-Friendly Consumer Innovativeness Insights
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Making the
Making the world a better place world a better
by making better products place
Abstract
Purpose – This paper aims to examine whether consumers respond differently to different types of eco-
innovations and to explore how and under what conditions eco-friendly consumer innovativeness (ECI)
impacts consumers’ perception and adoption intentions.
Design/methodology/approach – Two online experiments with real consumers in the USA were
conducted to test the hypothesized relationships. Two eco-innovation products were examined: a connected
vacuum cleaner (Study 1) and an innovative smartphone (Study 2).
Findings – First, consumers tend to express more positive product beliefs, higher preferences and stronger
adoption intentions toward resource use elimination innovations compared with the other types of eco-
innovations across two product categories. Although consumers are not willing to pay more, they would
adjust their payment equity by increasing consumption levels for resource use elimination innovations.
Second, this research demonstrates ECI affects adoption intentions via formulating consumer perceptions of
product eco-friendliness. Perceived trade-offs between eco-friendly benefits and product effectiveness
strengthens the positive effect of ECI while weakening the impact of perceived product eco-friendliness on
adoption intentions.
Research limitations/implications – Future studies may validate and extend the results for
marketing communication to different types of eco-friendly innovative consumers to determine which
marketing messages best match the perceptions and preferences of certain eco-friendly innovative
consumers.
Practical implications – This study offers useful insights for strategic research-and-development
investment and decision-making processes in selecting the best-suited approaches to developing eco-
innovations and maximizing their success in the commercialization phase. Specifically, firms should place
greater emphasis on resource use elimination innovation, which could evoke more positive consumer
responses than resource use efficiency innovations and resource use substitution innovations. Moreover, it is
important to improve the segmentation of the early adopters in the eco-innovation market with respect to
specific types of eco-innovations so that marketers can distinctively address eco-friendly innovative
consumers that best fit the potential user profile of their products.
Originality/value – The current research is novel as neither an empirically nor a theoretically
founded framework has been suggested to examine how and why consumers respond differently to
different types of eco-innovations. The findings shine new lights on eco-innovation research by
providing useful insights into the underlying mechanisms and the conditions under which ECI affects
consumers’ responses.
European Journal of Marketing
Keywords Consumer behaviour, Consumer innovativeness, Green issues © Emerald Publishing Limited
0309-0566
Paper type Research paper DOI 10.1108/EJM-11-2017-0888
EJM Introduction
Recent times have been marked by growing environmental challenges, including global
warming, energy security and resource scarcity, resulting in mounting pressures to
minimize the human ecological footprint by shifting to more sustainable production and
consumption (Kotler, 2011). In response, firms have accelerated their efforts to transform
eco-friendly ideas into new and “greener” processes, technologies, and products/services
(Katsikeas et al., 2016). However, despite a modicum of progress toward the goal of more
sustainable development, current efforts fall far short of addressing the myriad pressing
environmental challenges (OECD, 2009; United Nations, 2013). For example, the report of
Baldé et al. (2017) reveals that more than 52 million metric tons (Mt) of electronic waste,
mainly small electronic devices, will be disposed of worldwide by 2021, compared with the
40 million Mt generated in 2014. Due to the ongoing trend of electrifying nonelectrical
equipment and low recycling rates, the substantial rise of electronic waste poses
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disproportionately more serious problems than other waste substances, such as food and
textiles (Hoornweg and Bhada-Tata, 2012).
Given these foreboding realities, a big challenge for firms concerns optimizing growth
potential whilst reducing its negative environmental impact (European Commission, 2012).
A promising answer to this question – which should be at the heart of government policies
and industry practices – is the eco-innovation concept in which new products have both
innovative and eco-friendly features. Being innovative and environmentally sustainable
unleashes a new potential for economic benefit and competitive advantage across many
businesses and industries (European Commission, 2012; Iyer and Reczek, 2017) and renders
innovations less vulnerable to the threat of obsolescence (Majid and Russell, 2015), but firms
need further guidance on how to proceed in terms of both developing new products and
reaching consumers.
As with all innovations, eco-innovations face a high rate of technology failure (Chan and Ip,
2010). Indeed, 46 per cent of all resources allocated to new product development in US firms are
spent on products that failed to reach broad commercialization (Cooper et al., 2001). Moreover,
estimates of new product failures among consumer packaged goods (fast-moving goods) are
around 75 per cent (Schneider and Hall, 2011) and 72 per cent of new products do not meet
profitability goals (Carmichael, 2014). While new product failure statistics do not provide a
complete picture of the reasons why so many new products fail in the market, existing research
attributes this phenomenon to inappropriate product designs (Celhay and Trinquecoste, 2015)
and insufficient levels of consumer demand (Hauser et al., 2006; Heidenreich et al., 2017). Our
research addresses these issues in the context of eco-innovation introduction.
First, with regard to new product design, it is widely acknowledged that an eco-
innovation orientation is an inevitable reality for sustainable growth and differentiation (Du
et al., 2016; Kotler, 2011). In recent years, a plethora of environmental sustainability issues
have been incorporated into new product development, such as recycling (Giebelhausen
et al., 2016), carbon emission reduction (Heidenreich et al., 2017), renewables (Claudy et al.,
2013), energy saving (Tangari and Smith, 2012) and natural or locally supplied ingredients
(Bodur et al., 2014). However, scant attention has been devoted to investigating whether
different approaches to “greening” new product designs trigger different psychological and
behavioral responses in consumers’ adoption processes. The lack of empirical work on this
front requires immediate attention as firms have increasingly faced challenges relevant to
their eco-friendly product development strategy, including making strategic investments in
specific areas of research and development as well as marketing decisions about brand
extensions and product positioning (Katsikeas et al., 2016). Therefore, the first aim of our
study is to examine if consumers respond differently to different types of eco-friendly Making the
attributes in eco-innovative product designs. world a better
Second, the success of eco-innovation in the marketplace depends on how effectively firms
target the consumers who are most likely to be interested in learning about and adopting a new
place
product concept (Hoffman et al., 2010). A significant body of the innovation literature suggests
that consumer innovativeness (CI), as an individual’s desire or willingness to take the risk of
adopting new products, underlies the difference in adoption speed between innovators (early
adopters) and imitators (Im et al., 2003; Li et al., 2015; Manning et al., 1995). In the sustainability
literature, recent studies have adopted trait-based approaches to highlight the potential role of
CI in reducing the intention–behavior gap in sustainable consumption across different product
categories (Englis and Phillips, 2013; Hahnel et al., 2014).
Despite significant progress to date, two major limitations in the current research on CI
warrant further consideration. First, given the complex adoption dynamics and diffusion
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processes of eco-innovations (Janssen et al., 2006; Wiedmann et al., 2011), only few research
efforts have shed any light on the relationship between CI and consumers’ adoption of eco-
innovative offerings (Heidenreich et al., 2017; Jansson, 2011). Second, and more important,
the limited empirical research on this topic only investigates CI as an innate general trait,
including such concepts as “need for stimulation” (Jansson, 2011) and “need for uniqueness”
(Heidenreich et al., 2017), rather than focusing on a domain-specific level of abstraction in the
CI conceptualization. It is thus crucial to understand the nature of domain-specific consumer
innovativeness (DSI) in the context of eco-innovation and its effects on consumers’ product
beliefs and adoption intentions.
The present study addresses the shortcomings in eco-innovation research and makes
three main contributions. First, as the introduction of eco-innovation is challenged by
pervasive uncertainty due to its long take-off phase and the value-action gap of sustainable
consumption, we specify which the best approaches to “greening” new product designs
should be from the consumer perspective. By grounding our main thesis on the
categorization theories (Moreau et al., 2001b; Viswanathan and Childers, 1999) with the focus
on the distinctiveness of eco-friendly benefits integrated in new product designs, we provide
a rigorous answer as to whether particular types of eco-innovation provoke more positive
consumer responses than other alternatives. In doing so, we offer useful guidelines on which
types of eco-friendly attributes should be emphasized in new product development. Second,
we propose a new conceptualization of CI at a domain-specific level of abstraction by
adapting the DSI concept of Goldsmith and Hofacker (1991) to the realm of sustainable
innovation consumption, so called eco-friendly consumer innovativeness (ECI). To further
validate the ECI scale, we demonstrate that the ECI scale predicts consumers’ perceptions
and adoption intentions across different types of eco-innovation. Third, we contribute by
specifying the unique mechanism through which ECI affects consumers’ psychological and
behavioral responses. More specifically, we suggest that consumers with stronger ECI
increase adoption intentions towards eco-innovation through more favorable evaluations of
the environmental aspect of an innovation. Furthermore, because of the way ECI interacts
with perceived trade-offs between environmental benefits and product effectiveness, our
analysis provides new insights into the complex dynamics linking consumers’ traits to their
product beliefs and behavioral intentions in the context of sustainable innovation.
Theoretical background
Conceptualization of eco-innovative product designs
The integration of ecological consciousness into new product development and innovation
design has risen in importance for academic researchers and practitioners (Goodman et al., 2017;
EJM Katsikeas et al., 2016; Pujari et al., 2003). While advanced technologies and skillful industrial
designs facilitate the rapid development of innovative products, this changing landscape also
requires a faster pace of product upgrading, triggers shorter replacement cycles and creates a
greater fear of obsolescence, ultimately leading to negative consequences for the environment
(Calcott and Walls, 2005). Guiltinan (2009) identifies two aspects of new product development
that drive these environmental issues: the frequent introduction of replacement products and the
recyclability of new products. These two aspects exacerbate environmental problems if firms
only emphasize producing and marketing innovations without any focus on sustainability.
The eco-innovation concept, which incorporates both innovative and eco-friendly attributes
in a new product design, reflects a proactive orientation toward positive sustainability in
product design rather the reactive elimination of environmentally problematic features (Pujari,
2006). Halila and Rundquist (2011) refer to eco-innovation as either new products, process, and
practices or modifications to existing ones that aim to reduce or avoid environmental harm.
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Taking a broader and more practical approach, the European Commission (2012, p. 2) defines
eco-innovation as “all forms of innovation – technological and non-technological – that create
business opportunities and benefit the environment by preventing or reducing their impact, or
by optimizing the use of resources.” Building on the extant innovation and sustainability
literature, Varadarajan (2015) concludes that while a variety of definitions of eco-innovation
have been suggested, the literature contains no widely accepted and broadly sound
conceptualization as well as robust operationalization of eco-innovation, especially with regard
to the consumer market. This inhibits the comparability and generalizability of findings across
product categories and industries. The current work examines the design of eco-innovation
from the consumer perspective and defines an eco-innovative product design “as a firm’s new
product design that is perceived by consumers to be innovative and eco-friendly based on their
evaluation of product attributes”.
Many scholars argue that a defining component of an eco-innovation is positive
ecological attributes that have been purposely designed into (i.e. embedded in) the new
product development process (Adams et al., 2012; Fuller and Ottman, 2004). In line with this
notion, we contend that the success of an eco-innovative product design depends mainly on
how consumers understand and value the ecological benefits of the innovation based on its
product attributes. This key perspective remains insufficiently addressed and therefore
requires deeper attention in the innovation and sustainability literature.
aims to improve productivity and efficiency in the use of resource inputs in the
manufacturing and consumption processes of the eco-innovation (European Commission,
2013; Varadarajan, 2015). In other words, natural resources should be processed and
consumed in a more efficient and sustainable way over the whole life cycle of the product
(Schandl, 2011). This type of eco-innovation is often designed to minimize energy use and
maximize carbon reduction. For example, smart metering provides real-time energy
consumption feedback to consumers and can generate a sustained reduction in energy
consumption of 5-10 per cent (HM Treasury, 2005). Another example is the smart Nebia
shower system, which reduces water consumption by 70 per cent without affecting people’s
shower experience (Mitchell, 2015).
Resource use elimination innovations. The goal of this eco-innovation type is to eliminate
the use of natural resources or harmful ingredients as an input for manufacturing and
consumption processes while maintaining the same levels of product functionality and
performance (Malhotra, 2016). According to Varadarajan (2015, p. 8), there are three
approaches to developing resource use elimination innovations:
(1) excluding ecologically harmful ingredients;
(2) excluding filler ingredients from a product; and
(3) excluding the need to use a complementary product.
Hypothesis development
Types of eco-friendly attributes in eco-innovative product designs and consumer responses
Our main hypothesis is that consumers might respond differently to different types of eco-
friendly attributes, as consumers tend to form categorizations, evaluations, and expectations
of eco-innovation based on prior product knowledge and experience (Moreau et al., 2001a;
Moreau et al., 2001b). We base our main hypothesis on categorization theories (i.e. the
categorization-based knowledge transfer for new products and the fuzzy set theory).
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different types of new eco-friendly attributes (Moreau et al., 2001a). Once the categorization
and evaluation process of the eco-innovation’s category membership gradedness occurs,
consumers then use the cues and assign weight of the respective category to make inductive
inferences about product quality. These inferences influence consumers’ preferences,
adoption intentions and willingness to pay for eco-innovations. Thus, we put forward the
following hypotheses:
H1. Different types of eco-friendly attributes (i.e., resource use reduction, elimination
and substitution features) yield significant differences in consumers’ (a) product
quality perceptions, (b) preferences, (c) adoption intentions and (d) willingness to
pay with respect to eco-innovative product designs.
H3. Perceived product eco-friendliness mediates the positive effect of ECI on adoption
intentions.
In addition, when purchasing eco-friendly products, consumers often face trade-offs between
environmental benefits and other important attributes, such as functional performance,
aesthetic design, price and safety (Luchs et al., 2012; Olsen et al., 2014). Such trade-offs can
have a negative impact on consumers’ perceptions and actual adoption, regardless of their
concerns about environmental issues (Bamberg, 2003; Carrington et al., 2014; Olson, 2013).
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Therefore, we examine the role of these perceived trade-offs in explaining the effects of ECI
on adoption intentions. From a managerial perspective, a better understanding of this
mechanism will enable marketers to design appropriate marketing messages that target
early adopters by focusing on information about perceived trade-offs in eco-innovation
product designs.
To the best of our knowledge, no empirical research has not yet explored the moderating
effect of the trade-offs between eco-friendly benefits and overall product effectiveness in the
context of eco-innovation. First, we argue that consumers’ perception of these trade-offs
weakens the relationship between perceived product eco-friendliness and adoption
intentions. Specifically, when consumers hold stronger (vs weaker) perceptions of trade-offs,
they will be more (vs less) reluctant to adopt an eco-innovation with higher (vs lower)
perceived product eco-friendliness. Second, drawing on the costly signaling theory, we
propose that when high-ECI consumers are aware that environmental benefits of a product
may compromise overall product effectiveness, they are more likely to adopt an eco-
innovation for the desirable status it signals. Costly signaling theory suggests that
consumers will consider engaging in activities that are increasingly costly (in terms of
resources, energy, risk, or time) as a way to signal their ability and willingness to incur
certain inconveniences for a given cause and to compete for status (Zahavi and Zahavi,
1999). In other words, a person can gain status if he or she is willing and able to sacrifice
certain resources for others (Cole and Chaikin, 1990). Applying this theory in the sustainable
consumption context, Griskevicius et al. (2012) posit that green marketing efforts should
make consumers who engage in self-sacrificing behaviors feel comfortable and easy to be
socially visible, thus drawing attention to their status and their sacrifice as a way to
encourage the voluntary adoption of more sustainable practices.
In this study, through eco-innovation adoption, high-ECI consumers effectively convey to
their peers that they are willing to incur costs (i.e. they will sacrifice product convenience or
effectiveness for environmental benefits), thereby increasing their relative status. ECI
enables consumers to overcome past negative experiences with eco-friendly products and
motivates them to embrace the trade-offs between eco-friendly benefits and product
effectiveness as a means to signal their own inherent innovativeness (Heidenreich et al.,
2016). Conversely, low-ECI consumers are not willing (or at least are more reluctant) to make
trade-offs between eco-friendly benefits and other attributes (e.g. product functionality).
Low-ECI consumers may be less susceptible to the benefits of sustainable innovations and
more sensitive to trade-offs between eco-friendly benefits and product effectiveness due to
an inherent hesitation to take certain risks (Klink and Athaide, 2010). In summary, we
expect different moderating roles of perceived trade-offs not only on the relationship
EJM between perceived eco-friendliness and adoption intentions but also on the link between ECI
and adoption intentions.
Method
To test the hypothesized relationships, we conducted two online experiments with real
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To control for any assumptions participants might make about the types of eco-friendly
features, we used the words “reduce,” “eliminate” and “substitute” in the descriptions of
resource use reduction, resource use elimination, and resource use substitution features,
respectively.
We selected the features that the majority (i.e. 55 per cent or more) of participants
classified as being typical for each specific type. The majority of respondents categorized
“remotely controlled by a smartphone app” (81 per cent) and “home automation” (89 per
cent) as innovative features. Most of the respondents (95 and 66 per cent, respectively)
classified “50 per cent less energy consumption” and “a 10/10 reparability score” as resource
use reduction features. “Canisters” and “eliminating radiation emission” were classified as
resource use elimination features by 81 and 75 per cent of the respondents, respectively.
Finally, “solar vacuum tube” and “solar phone charger” were classified as resource use
substitution features by 68 and 59 per cent of respondents, respectively.
In the second pretest, we asked a different pool of marketing students (n = 30, 43.3 per
cent male, Mage = 21.87, SD = 1.20) to evaluate the eco-friendliness of the selected features
from the first pretest on a seven-point Likert scale (1 = “not at all”; 7 = “extremely”). We also
measured eco-friendly product knowledge and experience with the same scale adapted from
Gershoff and Frels (2014) (a = 0.79). Participants displayed adequate knowledge about eco-
friendly products (M = 4.05, SD = 1.26). We then conducted one-sample t-tests to compare
each attribute with respect to the scale midpoint of four. In line with the first pretest,
respondents rated the eco-friendly attributes as significantly higher than the scale midpoint
value: resource use efficiency (tvacuum(29) = 5.64, p < 0.001; tphone(29) = 5.76, p < 0.001),
resource use elimination (tvacuum(29) = 5.71, p < 0.001; tphone (29) = 6.42, p < 0.001) and
resource use substitution (tvacuum(29) = 5.01, p < 0.001; tphone(29) = 7.05, p < 0.001).
However, the innovation attributes were not rated significantly higher than the scale
midpoint (p > 0.30). Based on the results of the pretests, we created four manipulations for
each product category (Appendix 3).
To develop our ECI scale, we modified the original DSI scale of Goldsmith and Hofacker
(1991) and the ethical consumption innovativeness scale of Ganglmair-Wooliscroft and
Wooliscroft (2016) in the context of eco-innovation. To ensure conceptual compatibility and
meaningful equivalence, we invited two experienced marketing scholars and eight doctoral
candidates (37.50 per cent male, Mage = 30.05, SD = 4.66) to review our scale by evaluating
the representation of each item based on our definition of ECI on a five-point Likert scale
(1 = “does not fit at all”; 5 = “good fit”). Based on data analysis from this pretest, we finalized
the structure and the content of the ECI scale with a five-item self-reported scale to measure
EJM ECI within the specific domain of environmental interests (MFit score 3), while eliminating
the item “I will buy a new [product name] even if I have not heard of it before” due to its low
fit (MFit score < 3) (Table I).
Because IoT-based products are designed as dynamic service platforms with high
flexibility and heterogeneity in consumption, there are more opportunities to differentiate
these products, moving competition away from price alone (Ng et al., 2015). In this sense, it
can be argued that the price component is no longer the most substantial hindrance to
adopting several types of IoT-enabled products. Indeed, according to Accenture (2015),
consumers are more likely to pay more for smart devices that offer safety (e.g. a smart
smoke alarm, a smart security system) or novelty (e.g. smart cars, smart shoes).
In this study, instead of actual selling prices, we focused on consumers’ willingness to
pay (WTP), defined as the minimum price at which or below the consumer will purchase the
new product, as an important construction of price response functions (Völckner, 2008) to
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Ethical consumption
Domain-specific innovativeness (DSI) innovativeness (ETCI) Eco-friendly consumer
Goldsmith and Hofacker (1991) and Ganglmair-Wooliscroft and innovativeness (ECI)
Goldsmith et al. (1995) Wooliscroft (2016) The current study
In general, I am among the last in my In general, I am among the In general, I am among the
circle of friends to buy a new [product first in my circle of friends to first in my circle of friends to
name] when it appears. (r) undertake an ethical adopt eco-innovative products
If I heard that a new [product name] was consumption behavior If I hear about new ideas/
available in the store, I would be If I hear about a new ethical products on environmental
interested enough to buy it consumption issue, I am issues, I am interested to find
Compared to my friends, I own a few interested to find out more out more
[product name]. (r) Compared to my friends, I Compared to my friends, I
In general, I am the last in my circle of make a lot of consumption make a lot of consumption
friends to know the names/information of choices on an ethical basis choices that are good for the
the latest [product name]. (r) In general, I am the first in my environment
I will buy a new [product name] even if I circle of friends to know about In general, I am the first in my
Table I. have not heard of it before ethical consumption issues circle of friends to know about
The DSI, ECI, and I know the names of new [product name] I know about ethical eco-friendly consumption
before other people do consumption issues before issues
modified scales of other people do I know about environmental
eco-friendly issues before other people do
consumer
innovativeness Notes: (r) = reverse scored
innovative product category to test whether different types of eco-friendly attributes elicit Making the
different product beliefs and adoption intentions in the consumers’ psyche. world a better
place
Sample and design
One hundred thirty-one consumers (42 per cent male; Mage = 43.47, SD = 12.93) were recruited
through Amazon Mechanical Turk (MTurk) to complete an online study in exchange for
nominal compensation. The sample was biased toward the upper end of the income brackets,
with over 60 per cent of respondents reporting medium ($50,000-$74,999), high ($75,000-
$100,000) and very high (>$100,000) annual incomes. The majority of respondents (86.30 per
cent) had a minimum of a bachelor’s degree. Participants were randomly assigned to one of
four versions of a survey and were roughly evenly distributed across the conditions. We used a
four between-subjects design, including a control condition and three eco-friendly attribute
types in eco-innovative product designs (i.e. types of eco-innovations): resource use efficiency,
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resource use elimination and resource use substitution versions of a connected vacuum cleaner.
Results
Manipulation check. Two separate analyses of variance (ANOVA) analyses demonstrated
that the manipulations in terms of eco-friendliness and innovativeness were correctly
operationalized. Participants evaluated the product as more eco-friendly in the resource use
efficiency condition (M = 4.79, SD = 1.07), the resource use elimination condition (M = 5.83,
SD = 0.88), and the resource use substitution condition (M = 5.57, SD = 1.08) than in the
control condition (M = 4.13, SD = 1.16; F(3, 127) = 18.13, p < 0.001). Perceived product
innovativeness scores were not significantly different among the four conditions (F(3, 127) =
2.49, ns.). Overall, we found that the product descriptions successfully manipulated
participants’ perceptions of the product’s eco-friendliness and innovativeness.
Consumer responses. After the manipulation check, we eliminated the control condition
(n = 37) from the dataset and focused on comparing the means of three types of eco-
innovation. We conducted an ANOVA modeling consumer responses (product quality,
product preferences, adoption intentions and WTP) as a function of the eco-innovation-type
conditions. In support of our hypotheses, we found significant effects of the eco-innovation-
EJM type conditions on consumer responses. In particular, we found evidence of a significant
effect of eco-innovation types on product quality (F(2, 91) = 7.07, p < 0.01), preferences for
eco-innovations (F(2, 91) = 5.86, p < 0.01) and adoption intentions (F(2, 91) = 5.41, p < 0.01),
in support of H1a, H1b and H1c, but no significant effect on WTP (F(2, 91) = 1.25, ns), thus
rejecting H1d. These significant results suggest that participants respond differently to
different types of eco-friendly benefits in an eco-innovative product design. Moreover, in
paired comparisons, we found that consumers’ responses were significantly different across
each of the three eco-innovation-type conditions. As Table II shows, participants in the
resource use elimination and resource use substitution innovation conditions reported
higher scores for product quality, product preference and adoption intentions than those in
the resource use efficiency condition.
Discussion
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Table II.
Differences in Product Product Adoption Willingness
consumer responses quality preferences intentions to pay
to types of eco- Types of eco-innovations M SD M SD M SD M SD
friendly features in
eco-innovative Resource use efficiency innovation 5.13a 1.01 5.52a 1.34 4.39a 1.54 192.39a 112.35
product designs Resource use elimination innovation 6.03b 0.91 6.33b 0.76 5.45b 1.23 227.74a 114.36
based on tukey HSD Resource use substitution innovation 5.79b 1.06 6.17b 0.80 5.41b 1.58 189.03a 92.48
post hoc test (context:
Notes: Subscripts should be interpreted only within columns. Means with the same subscript are not
a connected vacuum significantly different from each other. Means with different subscripts are significantly different at p <
cleaner) 0.05
respondents had at least a bachelor’s degree. Participants were randomly assigned to one of Making the
four versions of a survey and were roughly evenly distributed across the conditions. We world a better
used a four between-subjects design that included four conditions:
place
(1) control;
(2) resource use efficiency;
(3) resource use elimination; and
(4) resource use substitution versions of an innovative smartphone.
considering purchasing one. On the following page, all participants were randomly assigned
to one condition and were given an advertisement with the same picture of an innovative
smartphone and its respective product description according to the condition. We used the
same measurement scales for perceived product innovativeness, perceived eco-friendliness,
product quality, product preferences, adoption intentions and willingness to pay as in Study
1. Finally, we asked participants to predict what their consumption level (measured in
hours) would be if they bought this product. We measured ECI with five items (a = 0.94)
based on a seven-point Likert scale (1= “strongly disagree”; 7 = “strongly agree”) (Table I).
We assessed the explicitness of participants’ beliefs in the trade-offs between environmental
benefits and product effectiveness by eliciting their agreement with the following two items:
(1) “There is no way to include eco-friendly attributes into eco-innovative products
without sacrificing their effectiveness”; and
(2) “Eco-innovations with eco-friendly attributes are rarely effective” (Lin and Chang,
2012) (a = 0.82).
Results
Manipulation check. Participants in the control condition reported lower scores of product
eco-friendliness (M = 3.84, SD = 1.68; F(3, 218) = 12.71, p < 0.001) than those in the resource
use efficiency condition (M = 4.92, SD = 0.95), the resource use elimination condition (M =
5.23, SD = 1.18), and the resource use substitution condition (M = 4.65, SD = 1.05). Moreover,
participants evaluated the product at the same level of innovativeness among the four
conditions (F(3, 218) = 2.09, ns). Therefore, the manipulation of eco-friendly attribute type
and innovativeness was successful.
Consumer responses. After the manipulation check, we compared the means of three
types of eco-friendly attributes in an eco-innovative product design by eliminating the control
condition (n = 53) from the data set. The results of the ANOVA tests, using product quality,
product preferences, adoption intentions, willingness to pay, and predicted consumption
levels as dependent variables, revealed that there were significant differences in consumers’
responses among different types of eco-innovations, confirming the findings of Study 1.
More specifically, we found that different types of eco-innovations significantly affect
product quality perceptions (F(2, 166) = 3.98, p < 0.05), adoption intentions (F(2, 166) = 4.14,
p < 0.05) and predicted consumption level (F(2, 166) = 5.00, p < 0.01), in support of H1a and
H1c. However, the results indicate that consumer preferences for eco-innovations (F(2, 166) =
EJM 0.50, ns.) and their willingness to pay (F(2, 166) = 0.20, ns.) were not significantly different
among different types of eco-friendly attributes, thus rejecting H1b and H1d. Furthermore, in
paired comparisons (Table III), we found that participants in the resource use elimination
condition not only scored higher for product quality but also expressed stronger adoption
intentions and higher level of estimated product consumption than those in the resource use
substitution and resource use efficiency conditions. Consistent with the findings in Study 1,
the results confirm that compared with other types of eco-innovation, resource use
elimination is regarded as the more favorable option by creating more positive perceptions of
product eco-friendliness and product quality, evoking stronger adoption likelihood and even
increasing higher predicted product consumption levels.
The influence of ECI on perceived product eco-friendliness and adoption intentions. We
conducted a mediated moderation analysis using Model 15 from PROCESS macro in SPSS
for each eco-innovation type (Hayes, 2013). In the mediated moderation model, we entered
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ECI as the independent variable, perceived trade-offs as the moderator, perceived product
eco-friendliness as the mediator, and adoption intentions as the dependent variable. We also
controlled the effects of participants’ demographic characteristics (age, gender, income and
prior product experience [measured by the number of smartphones owned]) in the analysis.
Following the bootstrapping procedure recommended by Preacher and Hayes (2004), we
applied 5,000 iterations to derive a 95 per cent confidence interval for the indirect effect of
ECI on adoption intentions through perceived product eco-friendliness. None of the control
variables had significant effects on the dependent variables. Examining the conditional
indirect effects, we found that across the three types of eco-innovations, the 95 per cent
confidence interval excluded zero and z-values were significant (Table IV), indicating a
significant indirect effect of ECI on adoption intentions through perceived product eco-
friendliness, in support of H2 and H3. As Figure 1 shows, there was full mediation for the
relationships of ECI and adoption intentions in the resource use elimination innovation and
resource use substitution innovation conditions, while there was partial mediation in the
case of the resource use efficiency innovation.
Regarding the moderating effects of perceived trade-offs between eco-friendly benefits
and product effectiveness, the results indicate that perceived trade-offs significantly and
negatively moderated the positive effects of perceived eco-friendliness on adoption
intentions (interaction effect = –0.38; 95 per cent CI = [–0.66, –0.10]), in support of H4, in the
resource use efficiency condition. We also found a significant and positive moderating effect
of perceived trade-offs on the link between ECI and adoption intentions (interaction effect =
0.45; 95 per cent CI = [0.21, 0.69]), in support of H5, in the resource use efficiency condition
Predicted
Table III. Product Product Adoption Willingness consumption
Differences in quality preferences intentions to pay levels
consumer responses Types of eco-innovations M SD M SD M SD M SD M SD
to types of eco-
friendly features in Resource use efficiency innovation 5.37a 0.88 5.86a 0.94 5.01a 1.43 327.89a 202.06 4.35a 3.20
eco-innovative Resource use elimination innovation 5.84b 1.07 5.97a 1.06 5.57b 1.22 307.26a 176.69 6.41b 5.35
product designs Resource use substitution innovation 5.78b 0.97 5.80a 0.83 4.90a 1.36 326.69a 206.97 4.35a 3.02
(context: an Notes: Subscripts should be interpreted only within columns; Means with the same subscript are not
innovative significantly different from each other. Means with different subscripts are significantly different at p <
smartphone) 0.05
(Figure 2). However, we did not find any significant moderating effect of perceived trade-offs Making the
in the other two conditions. world a better
place
Discussion
Study 2 replicates key findings from Study 1 in a publicly consumed product context (an
innovative smartphone) while exploring the underlying mechanism of the effect of ECI on
adoption intentions across different types of eco-innovation. More specifically, Study 2
confirms that participants responded differently to different types of eco-friendly attributes
included in an eco-innovative product design. Resource use elimination innovations
triggered the highest perceived quality, the strongest adoption intentions and the highest
level of estimated consumption, followed by resource use substitution and resource use
efficiency innovations. The results support the generalizability of our findings in Study 1
across product categories.
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The primary objective of Study 2, however, was to demonstrate how ECI affects adoption
intentions across the different types of eco-innovation. The results reveal that stronger ECI
enhanced consumers’ perceptions of product eco-friendliness, which, in turn, affected their
adoption intentions toward an eco-innovation. The indirect effect of ECI on adoption
intentions was significant across three different types of eco-innovations. We found that the
moderating effects of perceived trade-offs occurred only in the case of the resource use
efficiency condition and not in the resource use elimination or the resource use substitution
conditions. The pattern of the results underscores that trade-offs between eco-friendly
attributes and product effectiveness play an important role in strengthening the impact of
ECI while weakening the effect of product eco-friendliness on consumers’ adoption
intentions in the context of resource use efficiency innovations.
General discussion
How do consumers respond to different types of eco-friendly attributes included in an eco-
innovative product design? No singular set of studies has yet provided a rigorous answer to
this question, but the current study attempts to illuminate one tenable explanation: because
an eco-innovation, as a really new product, consists of both innovative and eco-friendly
attributes, it requires consumers to transfer information from the repository of their past
experiences across multiple product categories to perceive and evaluate the new offerings
(Moreau et al., 2001b). In other words, different types of eco-innovations can elicit different
consumer responses, depending on how consumers use cues from multiple categories to
understand innovation and develop their expectations, preferences, and adoption intentions.
To facilitate consumers’ categorization and learning processes, marketers need to
understand and delineate the appropriate information that emphasizes the distinctiveness
(differentiating attributes) of the new product categories that should be transferred from
each domain.
0.23*
Eco-friendly consumer Adoption intentions
innovativeness (ECI)
***
0.45
Control variables:
Perceived trade-offs Age, gender, income, number of
× ECI smartphones owned
R 2 = 0.67
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–0.14ns
Eco-friendly consumer Adoption intentions
innovativeness (ECI)
0.07ns
Control variables:
Perceived trade-offs
Age, gender, income, number of
× ECI
smartphones owned
R 2 = 0.34
–0.02ns
Eco-friendly consumer Adoption intentions
innovativeness (ECI)
ns
0.04
Figure 1. Control variables:
Perceived trade-offs
The standardized × ECI Age, gender, income, number of
results for the smartphones owned
mediated moderation
analyses across R 2 = 0.41
different types of eco-
innovations
Notes: ***p < 0.001; **p < 0.01; *p < 0.05; ns = non-significant
Theoretical contributions
Our paper broadens and deepens the current understanding of consumer adoption of eco-
innovation in several ways. First, it is evident that the inclusion of different types of eco-
friendly attributes in new product designs can provoke different psychological and
behavioral responses among consumers. In the sustainability literature, prior work has
identified numerous factors that influence consumers’ categorization, expectations,
perceptions, and purchase behaviors across various conventional eco-friendly product Making the
categories (e.g. shampoos, detergents) (Bodur et al., 2016; Irwin and Naylor, 2009; Lim, 2017; world a better
Sharma and Jha, 2017). As relatively new in the market, eco-innovations tend to defy
straightforward categorization (Moreau et al., 2001b). Thus, it is questionable how
place
consumers transfer relevant knowledge from multiple sources to better comprehend them.
Whereas most studies on eco-innovation are centered on the organizational perspective, we
extend this research area by focusing on the consumer perspective. In response to the
repeated calls from innovation and marketing researchers (Iyer and Reczek, 2017; Kotler,
2011; Rennings, 2000), our empirical study uncovers how consumers respond to the
introduction of different eco-innovation types.
We add to this stream of research by focusing on the distinctiveness of eco-innovation
categories – that is, by differentiating the types of eco-friendly attributes included in eco-
innovative product designs. Our results show that there are significant differences in
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Figure 2.
The moderating
effects of perceived
trade-offs on the
relationship between
ECI and adoption
intentions (Panel a)
and on the
relationship between
perceived product
eco-friendliness and
adoption intentions
(Panel b) in the
context of resource
use efficiency
innovations
EJM equity by increasing the predicted consumption levels for this type of eco-innovation. The
results could be explained by the lay theory which indicates that consumers increase the use
of eco-friendly products as they consider pro-environmental products as being less effective
than traditional products (Lin and Chang, 2012; Luchs et al., 2010). We further suggest that
the higher level of product eco-friendliness consumers perceive, the more they consume the
product in comparison with other eco-friendly alternatives.
Second, drawing on a trait-based approach, we takes an initial step toward better
understanding the concept of DSI in the sustainable innovation consumption domain by
conceptualizing and operationalizing the concept of ECI to emphasize the specific facets and
motivational reasons behind this complex construct in the case of eco-innovation adoption.
We note that our ECI concept and measurement focus on the overall patterns of consumers’
tendency to adopt innovative ideas/products for environmental protection, rather than
capturing varying motivations for general ethical consumption. We further validate the
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Managerial implications
Our study offers useful insights for strategic research-and-development investment and
marketing-related decisions for new products, specifically in selecting the best-suited
approaches for developing eco-innovation in order to maximize their success in the
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commercialization phase.
New product development and positioning. Our results suggest that developing and
positioning an eco-innovation as a resource use elimination innovation could evoke more
positive consumer responses than resource use substitution innovations and resource use
efficiency innovations. Specifically, firms should place greater emphasis on advanced
technologies for eliminating the need to use a complementary product (e.g. Samsung
CycloneForce, with its ultra-low-power bagless cylinder). They should also develop
complementary product carryover innovations – for example, iPhone Qi-certified chargers,
based on wireless technology and universal charging standards, can be used for all the latest
version of iPhones in cars, cafés, hotels, and furniture. Another possible approach is to
invest in innovative materials to replace ecologically harmful components (e.g. the
innovative XO Laptop for children, which contains no hazardous materials or new Samsung
LED LCD TVs are free of mercury, a toxic metal). However, our results suggest that as
consumers are generally not willing to pay more for resource use elimination innovations,
the price for this type of eco-innovation should remain the same as that of other innovations.
Segmentation. Although previous researchers (Heidenreich et al., 2017) have argued that
companies can target different types of consumer segments to accelerate the diffusion process,
this study emphasizes the fact that the “right” consumers must be addressed during the early
phases of eco-innovation development to ensure its success in the market. Our findings suggest
that consumers with differing degrees of ECI respond differently to innovations, indicating that
ECI may be used as an effective segmentation tool to identify and profile early adopters who
have a strong tendency to try eco-friendly innovative ideas/products. In Study 2, we found that
consumers high in ECI are more likely to infer higher product eco-friendliness and express
stronger adoption intentions than low-ECI consumers. It is important to improve the
segmentation of the early adopters with high ECI in the eco-innovation market with respect to
specific types of eco-innovations so that marketers can distinctively address eco-friendly
innovative consumers that best fit the potential user profile of their products.
Customizing marketing communication strategy. Our results also reveal that, for
resource use efficiency innovations, making the trade-offs between environmental benefits
and product effectiveness easily perceivable is a key to harness the power of ECI to motivate
consumers’ adoption intentions. High-ECI consumers can then explicitly exhibit their choice
to sacrifice some degree of functional performance for sustainability as a way to signal their
innovativeness and commitment to environmental protection. For example, to target high-
ECI consumers, marketers of resource use efficiency innovations could explicitly
communicate the trade-offs between environmental benefits and product effectiveness while
emphasizing the product’s superior innovativeness and eco-friendliness over traditional
EJM products. Conversely, when promoting eco-innovations to segments of the market that are
not as strongly dedicated to innovative ideas for sustainability (i.e. the mass market), it is
more important to find effective ways (e.g. Facebook groups, online forums, online review
ratings) for early adopters to share their experiences with the late majority who normally
have low ECI. However, in both cases, it is critical to reassure consumers that the new
product meets a minimum acceptable threshold of functional performance (Luchs et al.,
2012).
For resource use elimination and resource use substitution innovations, firms do not need
to address the trade-offs in eco-innovative product designs but instead should focus on
simply promoting the environmental benefits of these innovations to encourage consumers
with high ECI to learn more about and adopt new product concepts. Marketers might
visualize the unique features of these innovations for consumers while emphasizing the
superiority of an innovation compared with existing products, especially in terms of the
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Corresponding author
Nicholas G. Paparoidamis can be contacted at: [Link]@[Link]
EJM Appendix 1
Innovativeness – Vandecasteele
and Geuens (2010)
Intermediate Domain-specific trait Domain specific innovativeness Self-reported scales within
innovativeness Goldsmith and Hofacker (1991) a specific product
Ethical consumption category
innovativeness scale –
Table AI. Ganglmair-Wooliscroft and
Wooliscroft (2016)
Conceptualizations of
Low Innovative behaviors/ Innovative buying behaviors – Purchase intentions
consumer Actualized Summers (1972) Actual purchase behavior
innovativeness used innovativeness/ Use Actualized innovativeness: – Relative time of adoption
within the marketing innovativeness Hirschman (1980) Ownership of an
field innovative product
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(continued)
consumption
Table AII.
place
on sustainable
Selected studies of
world a better
Making the
EJM
Table AII.
Type of eco-friendly attributes studied
Resource use Resource use
Resource use elimination (e.g. substitution (e.g. General claims (e.g. Consumer behavior
reduction (e.g. harmful chemical renewable better for the aspects examined
Study Context Product categories energy efficiency) elimination) energy) environment) (dependent variable) Major findings
Wiedmann et al. Germany Natural gas vehicles x Resistance to NGVs Financial, performance
(2011) (NGVs) (technological), time, social, and
psychological risk positively affect
consumers’ innovation resistance
to NGVs
Zhang et al. (2011) USA Alternative fuel x Diffusion of eco- Technology push can be an
vehicles (AFVs) innovations important mechanism for speeding
the diffusion of AFVs.
Market pull has a positive impact
on the diffusion of AFVs and
increases the social good as well as
higher willingness to pay for
AFVs.
Governmental push leads to a
decrease in the social good
Griskevicius et al. Mexico Cars, household x x Product preferences Activating status motives
(2010) cleaners, dishwashers encourage people to choose green
backpacks, batteries, products over more luxurious non-
and lamps green products
Status motives increased desire for
green products when shopping in
public and when green products
cost more than non-green products
Hartmann and Spain A fictitious green x Brand attitude Utilitarian benefits of green
Apaolaza-Ibáñez energy brand Purchase intention products have positive effects on
(2012) purchase intentions
Nature experience evoked by
advertising has the strongest
influence on brand attitude but no
effect on purchase intention
Lin and Chang USA Hand sanitizer x Product usage Consumers who are more
(2012) environmentally conscious overuse
a green product driven by
perceptions of a product’s
effectiveness
(continued)
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Luchs et al. (2012) USA Shoes and phones x x Product choice Consumers tend to choose the
product with superior functional
performance over the product with
superior sustainability
characteristics
The effective use of product
aesthetic design can improve the
relative choice likelihood of
sustainable products
Gleim et al. (2013) USA Shower cleaner x Satisfaction Price is a significant barrier, but
Purchase intentions expertise also appears to be a
significant impediment to the green
product consumption
Consumers experienced poor product
quality with a previous purchase and
thus were reluctant to purchase a green
product again
Number and form of informational cues
that educate consumers about green
products overcome purchase barriers
Olson (2013) Norway Cars and x Product preferences Strong preferences for green
televisions Purchase intention products are found when trade-offs
are not apparent, but preferences
shift significantly to less green
alternatives when the actual
attribute trade-offs are considered
Peloza et al. (2013) USA Juice, coffee, tea, x Product preferences Situational factors that heighten
crackers consumers’ self-accountability lead
to increased preferences for
products promoted through their
ethical attributes
The subtle activation of self-
accountability leads to more
positive reactions to ethical appeals
than explicit guilt appeals
(continued)
Table AII.
place
world a better
Making the
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EJM
Table AII.
Type of eco-friendly attributes studied
Resource use Resource use
Resource use elimination (e.g. substitution (e.g. General claims (e.g. Consumer behavior
reduction (e.g. harmful chemical renewable better for the aspects examined
Study Context Product categories energy efficiency) elimination) energy) environment) (dependent variable) Major findings
Haws et al. (2014) USA Bags, detergent x Relative preference Stronger green consumption
dresses, shirts Willingness to pay values increase preference for
Likelihood to environmentally friendly products
buy through more favorable
evaluations of the environmental
attributes
Newman et al. (2014) USA A dish soap and x Purchase intention Consumers are less likely to
household cleaner purchase a green product when
they perceive that the company
intentionally made the product
better for the environment
compared with when the same
environmental benefit occurred as
an unintended side effect
Olsen et al. (2014) USA Household products, x Brand attitude New green product introductions
food, beverages, and can improve brand attitude
personal care Brand and category’s positioning
positively affects the introduction of
new green products
Gershoff and Frels USA Mattress, panini and x Perceived greenness If a central attribute offers a green
(2014) waffle maker, CPU, PM benefit, the product is perceived as
monitor more environmentally friendly
than when a peripheral attribute
provides an identical
environmental benefit
Karmarkar and USA Shopping bags, x Purchase intention Bringing one’s own bags positively
Bollinger (2015) organic products affects the purchase of indulgent
items
The increased likelihood of
purchasing organic when bringing
one’s own bag is reduced by larger
price premiums
(continued)
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Majid and Russell USA Cars x Value retention Hybrid (i.e., green) vehicles lose
(2015) value faster than their nonhybrid
counterparts
Pure green brands (e.g., the Prius),
whose ability to express greenness
is more salient, lose value at a
slower rate than green brand
extensions
Pure green brands are also less
vulnerable to the threat of
obsolescence from technological
innovations
Wu et al. (2015) Taiwan Electric vehicles x Purchase intention Image has a positive effect on value
and purchase intention
Risk has a negative effect on
purchase
Perceived usefulness and value
have a positive effect on purchase
intention
Yang et al. (2015) China Natural drinks x x Purchase intention Abstract (concrete) appeal is more
Cars effective in generating green
purchase intentions than concrete
(abstract) appeal in situations
where the benefit association of
green products is other (self)
Public self-awareness and identity
salience moderate the effect of
appeal type and benefit association
on green purchase intentions
Van der Wal et al. The Netherlands Shopping bags x Product preference Shoppers of a high-status
(2016) organic products sustainable grocery chain display
sustainable shopping more by
using branded shopping bags than
shoppers of a lower-status chain
(continued)
Table AII.
place
world a better
Making the
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EJM
Table AII.
Type of eco-friendly attributes studied
Resource use Resource use
Resource use elimination (e.g. substitution (e.g. General claims (e.g. Consumer behavior
reduction (e.g. harmful chemical renewable better for the aspects examined
Study Context Product categories energy efficiency) elimination) energy) environment) (dependent variable) Major findings
Bodur et al. (2016) USA Chips and juices x Brand evaluation The positive effect of ethical
attributes on consumer evaluations
of high-priced private label brands
(PLBs) and PLBs associated with
lower retail reputation was
mediated by consumers’ quality
perceptions
Consumers with negative resource
synergy beliefs evaluated PLBs
with ethical attributes and
associated with a low reputation
retailer particularly unfavorably
Gonçalves et al. Portugal Biological products x Purchase intention Functional value is almost always
(2016) necessary but is not sufficient by
itself for predicting green buying.
In contrast, the absence of the
functional value is a sufficient
condition for not green buying.
Moon et al. (2016) USA and New high-tech biofuel x Adoption intention Consumer traits positively
Australia associated with the adoption of
bio-butanol are environmental
consciousness, prosocial behavior,
and openness to new experiences,
whereas vertical individualism
discourages such adoption
Han et al. (2017) Korea Female clothes x Sustainable fashion Fashion consumers’ limited
consumption (SFPC) awareness and knowledge about
sustainable fashion products may
promote negative sentiments
toward SFPC
Developing and staging consumer-
centered experiences help balance
the psychological attitude–
behaviors gap between
sustainability concerns and SFPC
(continued)
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Peyer et al. (2017) Germany Consumer durable x Purchase intention Voluntary simplifiers buy more
goods Consciousness for green products, exhibit a greater
sustainable environmental and economic
consumption sustainability consciousness, and
share more universalistic values
Heidenreich et al. Germany Alternative fuel x Adoption intention AFV adoption relates positively to
(2017) vehicles consumer innovativeness, and this
effect can be intensified by
providing external policies such as
infrastructure, incentives, and
communication policies
This study USA IoT-based products x x x Product quality Consumers tend to express more
(high-tech products) Product preferences positive product beliefs, higher
Adoption intention preferences, and stronger adoption
Willingness to pay intention toward resource use
Predicted level elimination innovations compared
consumption with the other types of eco-
innovations across two product
categories
Table AII.
place
world a better
Making the
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EJM
innovative
cleaner and
smartphone
Table AIII.
manipulations
Connected vacuum
Appendix 3
Study 1 Connected vacuum Connected vacuum cleaner B: A Connected vacuum cleaner C: Connected vacuum
cleaner A: A new new eco-friendly vacuum for our A new eco-friendly vacuum for cleaner D: A new eco-
vacuum for our daily life planet our planet friendly vacuum for our
planet
Innovative features Remotely controlled by Remotely controlled by a Remotely controlled by a Remotely controlled by a
a smartphone app smartphone app smartphone app smartphone app
Eco-friendly attributes 50% less energy consumption Vacuum cleaners with Solar vacuum tube
based on the compression canisters whose contents can enabling renewable energy
technology be directly emptied into a substitute
wastebasket, thus eliminating
the use of disposable bags
Study 2 Smartphone A: A new Smartphone B: A new eco- Smartphone C: A new eco- Smartphone D: A new eco-
smartphone for an friendly smartphone for a new friendly smartphone for a new friendly smartphone for a
enjoyable life lifestyle lifestyle new lifestyle
Innovative features Home automation: Home automation: connected to Home automation: connected Home automation:
connected to home home applications to home applications connected to home
applications applications
Eco-friendly attributes A 10/10 reparability score for all Eliminating radiation emission Solar phone charger
components to reduce resource based on the new technology enabling renewable energy
usage and electronic waste substitute
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Appendix 4
Study 1 (n = 131) M SD CR AVE MSV 1 2 3 4 5 6 7 8 9
deviations,
place
maximum shared
(AVE) scores,
Means, standard
variance extracted
reliabilities, average
world a better
correlations
Making the