Cents of self: How and when self-signals influence consumer value derived from choices of green products

Consumers choosing between green and conventional products often believe such choices imply trade-off decisions, such that green products provide morally-related advantages but embody price or quality-related disadvantages compared to standard products. We study the consequences of such trade-offs for consumer value in the context of privately consumed green products. To develop our theoretical model, we draw from the perspective of self-signaling – consumers' act of signaling information about their internal qualities to their own self through choice. We explore how and when self-signals from such trade-off decisions influence consumer value gained from comparative choices of green versus standard products. Six studies were conducted, using divergent measures of the dependent variable, multiple product categories, and measured as well as manipulated self-concept clarity (SCC). We find a joint effect of self-signals from comparative choices and self-concept clarity on consumer value, such that positive self-signals lead to incrementally higher satisfaction and willingness to pay for consumers with low SCC but not significantly so for those with high SCC. Results show that this joint effect may occur for consumers with low SCC because they gain incremental value from perceived self-concept alignment – a state that is construed from the perception that a self-signal is aligned with the consumer's self-concept. This study contributes to marketing research by proposing and testing a novel mechanism that can underlie self-signaling.