Consumers\u27 Perceptions Towards Sustainability: A Cross-Cultural Analysis

Abstract

Sustainability has become a subject of increasing concern to academics and practitioners in recent years. Increasing consumer demand for socially responsible products encouraged supply chains to put increasing emphasis on sustainability. In adapting sustainability practices consumers play a very important role for supply chains. Thus this dissertation examines consumers’ perceptions towards sustainability practices. Although most previous research has examined environmental sustainability practices, the social dimension of sustainability has received little attention. This dissertation attempts to explore both environmental and social sustainability and their effects on consumer perceptions in different cultural contexts and price levels. Two scenario based experiments are utilized. Experiment One examines the effect of environmental sustainability practices on consumer behavior. Experiment Two examines the effect of social sustainability practices on consumer behavior. Data was collected from one individual and one collectivist country to explore if there was a culture effect. Social Exchange Theory (SET) is presented as the theoretical lens for this dissertation. Theory of Reasoned Action (TRA) is also discussed as a supporting theory. The findings suggest that high environmental sustainability or social sustainability and a low price strategy will lead to an increase in consumers’ commitment, satisfaction, and loyalty levels. The results also showed that high prices have a more negative effect on consumer satisfaction and consumer loyalty in collectivist countries