Redefining how consumers pay the ethical premium

Why do good intentions rarely translate into ethical purchases?

Consumers often declare their commitment to sustainability and fair labor practices, yet most still reach for cheaper conventional options at the checkout. Ethical products frequently cost 20 to 220 percent more, creating a significant barrier between what people intend to buy and what they actually purchase.

This six-study, cross-national investigation (N = 2,332) identifies a simple yet powerful solution: instead of charging more money for an ethical product, sell it in a slightly smaller quantity at the same price as its conventional counterpart.

Paying With Quantity, Not Money

Across diverse product categories and countries, participants consistently preferred “smaller-portion” ethical goods to higher-priced ones. When an ethical coffee, soap, or packaged food was displayed beside a conventional version priced the same but with a visibly lower quantity, consumers judged it as more affordable and were more willing to buy.

This effect occurs because people experience a stronger pain of paying when losing money than when sacrificing a bit of product. Even though the ethical option remains costlier per unit, framing the premium as a quantity difference allows consumers to prioritize moral values without feeling financially burdened

Why it matters for business and society

This approach bridges ethical-consumption research and pricing strategy. It provides marketers with a viable method to narrow the intention–behavior gap, maintain profit margins, and enhance brand equity in sustainability-oriented categories. Firms can encourage ethical behavior without imposing prohibitive costs on consumers or themselves.Wan, J., & Bharti, M. (2025). From price to quantity: Redefining how consumers pay the ethical premium (external link, opens in new window) . Journal of Business Ethics. DOI: 10.1007/s10551-025-06178-4
 Supported by the Social Sciences and Humanities Research Council (SSHRC)