Research Shows Consumers Reward Bigger Sustainability Efforts

Companies are investing billions in sustainability. But which initiatives actually resonate with consumers?

A recent study co-authored by Paul College Marketing Professor Ludwig Bstieler finds that consumers respond more positively to radical sustainable product innovations than to smaller, incremental improvements. The research, conducted with Sabine Kuester of the University of Mannheim and Angeliki Kalogeraki of SharkNinja Germany, was published in the Journal of Product Innovation Management.

The researchers found that radical innovations — those involving new technologies or fundamentally different approaches to sustainability — can lead to greater purchase intentions, willingness to pay and more favorable perceptions of a company. Consumers are also more likely to view these innovations as evidence of a company's genuine commitment to sustainability. Incremental improvements, such as better recyclability or resource efficiency, are more likely to be viewed as responses to market demands or regulations.

The findings suggest companies can strengthen the impact of their sustainability efforts by pairing meaningful innovation with a credible commitment to sustainability. That effect can be even stronger for companies that have already established a positive sustainability reputation.