Shoppers will pay 16% more for ethical goods
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Jul 8, 2014
Shoppers will pay 16% more for ethical goods

Academics from NYU’s business school undertook a study to pinpoint how much more people are willing to pay for socially responsible products. The answer? 16%. They also found that consumers prefer products that benefit people, before the environment or animals.

The study found that 60% of people are willing to pay a premium for socially responsible goods - but awareness of ethical implications varies depending on the product's durability, and how often it's bought. “Our hypothesis is that for non-durable products, there are more social norms or peer pressure to buy socially responsible products,” says the paper's co-author Russell Winer. “There is more publicity about chemicals in cleaning products or fair trade practices in coffee, [than] about a house being built with lumber from an ecologically sustainable source.”