Want to be socially responsible? It will cost you
Most of us say we would pay more for products we feel good about, according to a new study. And the items we're willing to pay the biggest premiums on are the ones we throw away.
Consumers are willing to pay more to buy "socially responsible products," especially those that we use a lot of -- like toilet paper, according to a study just released by NYU's Stern School of Business.
Companies appear to be betting that's the case. Whether marketing for a cause, selling more environmentally friendly products or certifying that a product was produced in a humane fashion, companies are embracing the trend.
The Stern study by Professor Russ Winer, chairman of the school's marketing department, and a Ph.D. candidate found that 60% of consumers would pay more for a product that was linked to having environmental or social benefits.
Are you in that group? And, if so, how much more would you pay?
According to the study, consumers wouldn't exactly go overboard to buy fair trade coffee or humanely tested cosmetics. On average, the NYU folks found we'd be willing to fork over an extra 17% to buy a product that was considered to be socially responsible.
But consumers are willing to pay an even higher premium when it comes to products we dispose of -- recycled paper towels, for example. When it comes to so-called durable goods, consumers aren't as willing to pay extra, the study found.
And what product claims were the most likely to get consumers to pay the most extra? Those that indicated goodwill to people, such as those that say they support treating workers fairly. After that, consumers would pay more to get products that claimed to treat animals well, like those that indicate humane treatment, such as not having a cage.
Who's the winner here? Companies. If they weren't already aware that consumers would pay more to get products that make these sorts of claims -- particularly for the stuff we toss away anyhow -- they are now.
"This is good news for marketers and retailers who work with socially responsible products – particularly nondurable goods like paper towels," Winer said. "Our study shows that retailers can obtain larger price premiums for frequently purchased, nondurable goods that are socially responsible than for durable products."
More from MSN Money:
I'm not willing to pay more for 'green products'. The way to go is to recycle EVERY THING possible. The more paper recycled by consumers, the more green product will be made. The goal is to make 'NEW' paper products more expensive to make.
Copyright © 2014 Microsoft. All rights reserved.
ABOUT SMART SPENDING
LATEST BLOG POSTS
If you worry about money after the streetlights come on, these actions may help you rest easier.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'