Price reactions when consumers are concerned about pro-social reputation

TY - UNPB

T1 - Price reactions when consumers are concerned about pro-social reputation

AU - Kahsay, Goytom Abraha

AU - Andersen, Laura Mørch

AU - Hansen, Lars Gårn

PY - 2014

Y1 - 2014

N2 - In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.

AB - In this paper, we propose a reputation-signalling model of demand for consumer goods containing pro-social characteristics such as a ‘fair trade’ or ‘organic’ certification. We show that reputation signalling can reverse price reactions resembling the crowding-out of pre-existing motives for pro-social behavior seen in situations of volunteering and charitable giving. Finally, using a unique combination of questionnaire and purchase panel data, we present evidence of such reputation-driven reversal of price reactions in the Danish market for organic milk.

M3 - Working paper

T3 - IFRO Working Paper

BT - Price reactions when consumers are concerned about pro-social reputation

PB - Department of Food and Resource Economics, University of Copenhagen

CY - Frederiksberg

ER -