The impact of retailers’ sustainability and price on consumers’ responses in different cultural contexts

ABSTRACT

Consumers want sustainability, but at what price? With growing demands for environmental and social sustainability, retailers aim to understand how consumers might react to adaptations in retail practices. This research examines consumers’ perceptions towards retailers’ environmental and social sustainability practices and the moderating effect of price in different cultural contexts. Quantitative research methodology using scenario-based experiments was employed. Two experiments were conducted using research participants from the US (a more individualist country) and Turkey (a more collectivist country) and measured one dimension of culture, individualism versus collectivism. The results reveal that high prices negatively moderate consumers’ response to retailers’ sustainability efforts. Even though there is no significant interaction between either type of sustainability and price on purchase intention, high sustainability along with a low-price strategy leads to an increase in consumers’ commitment, satisfaction, and loyalty. Furthermore, the results demonstrate that high prices have a more negative effect on consumers’ responses in a collectivist country. This study highlights the importance of price in both individualist and collectivist cultures and provides a better understanding of a neglected dimension of sustainability, social sustainability. Managers need to be aware of the increasing demand from consumers for environmentally and socially sustainable practices but need to recognize that consumers may not be willing to pay more for these products. Companies need to formulate business strategies based on low priced-sustainable products and the cultural context of the country in which they operate.

KEYWORDS:

• Environmental and social sustainability
• collectivism/individualism
• retailing

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Mertcan Tascioglu

Mertcan Tascioglu serves as an Assistant Professor in the Department of Management at Istanbul Medeniyet University. He received his PhD from Georgia Southern University. His research includes ethical and social issues in consumer decision-making, international/cross-cultural consumer behavior, and green marketing.

Jacqueline Eastman

Jacqueline Eastman, Professor of Marketing at Georgia Southern University (Ph.D., Florida State University) has published in journals such as the Journal of the Academy of Marketing Science, Journal of Business Research, Journal of Business Ethics, International Journal of Physical Distribution & Logistics Management, Technovation, Journal of Advertising, Journal of Consumer Marketing, Journal of Marketing Theory and Practice, and Journal of Marketing Education among others.  Her research interests deal with the strategic application of consumer behavior theory in the areas of sustainability, the elderly, millennials, luxury, and technology.

Dora Bock

Dora Bock is an Associate Professor in the Department of Marketing at Auburn University. She received her PhD from Louisiana State University. Her research focuses on customer relationships, gratitude, and decision making. Her work has appeared in various journals including the Journal of Business Research, Journal of Service Research, Journal of Business Ethics, Journal of Marketing Theory and Practice, Journal of Services Marketing, and Journal of Consumer Marketing.

Karl Manrodt

Karl Manrodt serves as a Professor of Logistics in the Department of Management at Georgia College & State University. He received his Ph.D. from the University of Tennessee.He has/or now serves as an editor, reviewer, and on the editorial board of numerous academic and practitioner journals. He is the co-author of seven books, he has given over 150 presentations across the globe.

C. David Shepherd

C. David Shepherd currently serves as an Associate Professor of Marketing in the Baker School of Business at the Citadel.He received his Ph.D. in Marketing from the University of Tennessee.  He has published in numbers academic journals including the Journal of Personal Selling & Sales Management, the Journal of Retailing, Psychology and Marketing, and the Journal of Business Research.  Dr. Shepherd’s primary areas of research are professional sales and healthcare marketing.