Abstract

Promoting products for 'green' people has become an important strategy to encourage sustainable consumption. We test the effectiveness of the green identity labelling technique, which encourages pro-environmental purchases by associating them with an eco-friendly image. We conducted four experiments (online, laboratory and two field experiments) in which individuals could purchase green products that, in the treatment groups, were accompanied by a green identity label (for example, 'this product is for green shoppers'). We find that the green identity labelling technique increases purchase of environmentally friendly products across the consumer settings examined in our experiments. We also examine factors that can moderate this effect. Green identity labels increase sales only if no price discount on the green product is advertised, and they have a bigger impact on people with demographics associated with pro-environmental values. Four experiments where participants choose between products 'for green shoppers' and/or cheaper products show that the green label encourages purchases only in the absence of price discount.