Pricing the Process: Consumer Preferences Toward Socially Beneficial Products
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Title:
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Pricing the Process: Consumer Preferences Toward Socially Beneficial Products |
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Author:
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Olson, Rémy Gustave
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Advisor:
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Mudd, Shannon
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Department:
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Haverford College. Dept. of Economics |
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Type:
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Thesis (B.A.) |
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Issue Date:
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2011 |
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Abstract:
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Socially oriented businesses are on the rise in the United States yet their social goals
cause them to have higher costs and be less competitive. This paper investigates the viability of
such a business model within a competitive market by determining the price premiums that
consumers are willing to pay for goods manufactured or sold by social businesses. It begins with
a review of past literature focusing on social certifications such as fair trade and forest
stewardship. In contrast to such studies, this paper utilizes four categories based upon the B
Corporation certification to shape a survey testing consumer price preferences. By determining
that consumers are willing to pay premiums on social goods, as well as finding that these social
premiums are similar in magnitude to the premiums placed on goods of higher quality, I find that
a social certification, such as the B Corporation certification, can potentially add substantial
value to a company. Also, through the incorporation of demographic information and a
breakdown of price premium results into separate social categories, I find evidence of both
significant differences in preferences between genders and that a higher perceived ability to
consume may decrease consumers’ willingness to pay social premiums. |
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Subject:
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Social responsibility of business -- United States
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Subject:
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Commercial products -- United States -- Evaluation
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Subject:
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Consumer behavior -- United States
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Terms of Use:
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http://creativecommons.org/licenses/by-nc/3.0/us/
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Permanent URL:
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http://hdl.handle.net/10066/6917
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Files in this item
Citation
Olson, Rémy Gustave.
"Pricing the Process: Consumer Preferences Toward Socially Beneficial Products".
2011. Available electronically from
http://hdl.handle.net/10066/6917.
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