Understanding consumer preference between bundled and unbundled green offering

ABSTRACT This paper focuses on two prime objectives: a) establishing environmental benefits as an additional component of consumer value for a green offering and b) exploring consumer preferences between bundled and unbundled green offerings considering the perceived trade-off between functional and environmental benefits. Two studies were undertaken for this purpose. An online survey of 191 respondents established environmental benefits as an independent and significant factor for consumer value from a green offering along with a functional, emotional and social benefits. A second study, an online scenario-based analysis with 208 respondents, revealed that consumers are likelier to prefer a bundled offering when a guarantee is provided on its functional performance. It was also seen that environmental guarantee in the absence of functional guarantee may not sway consumer preferences from bundled to unbundled offerings. Both the studies also established the moderating role played by the respondent’s environmental consciousness. The study results have direct implications for managers in terms of product development and the marketing of environment-friendly offerings.