New York University Skip to Content Skip to Search Skip to Navigation Skip to Sub Navigation

Stern Study Shows Customers Are Willing to Pay More for Socially Responsible Products

September 17, 2013

Many companies have made significant investments in socially responsible products.

Environmentally safe cleaning products, fair trade coffee, and sustainable seafood are just a few examples. But are today’s cost-conscious consumers willing to pay a premium for those social and environmental benefits? According to a new study from the Stern School of Business, the answer is yes.


Professor Russ Winer, chair of the Stern School of Business’s marketing department, along with Stern Ph.D. student Stephanie Tully, examine the willingness to pay for socially responsible products in their new paper, “Are People Willing to Pay More for Socially Responsible Products: A Meta-Analysis.” In the largest study of its kind, Winer and Tully examine two dependent variables across 83 research papers—the proportion of people who are willing to pay extra for socially responsibly products (e.g., jeans made from recycled materials) and the actual percentage premium that people are willing to pay for those goods.


They found that a whopping 60 percent of consumers are indeed willing to pay extra for socially responsible products and, on average, those consumers were willing to pay a 17.3 percent premium for them. The percentage premium was slightly lower for socially responsible goods that are durable (e.g., furniture) vs. non-durable (e.g., toilet paper).


According to the study, consumers are willing to pay the highest premium for goods that provide benefits to humans (e.g., good labor practices), followed by purchases that benefit animals (e.g., bigger cages), followed by goods that are environmentally friendly.

Type: Article

Stern Study Shows Customers Are Willing to Pay More for Socially Responsible Products

Search News



NYU In the News

Paying It Backward: NYU Alum Funds Scholarships

The Wall Street Journal profiled Trustee Evan Chesler on why he decided to chair the Momentum fund-raising campaign.

A Nobel Prize Party: Cheese, Bubbles, and a Boson

The New Yorker talked to Professor Kyle Cranmer and graduate student Sven Kreiss about NYU’s role in the discovery of the Higgs boson, which resulted in a Nobel prize for the scientists who predicted its existence.

The World as They Knew It

The New York Times reviewed the exhibit at the Institute for the Study of the Ancient World on how ancient Greeks and Romans mapped the known and unknown areas of their world.

Elite Institutions: Far More Diverse Than They Were 20 Years Ago

NYU made stronger gains over the last 20 years in increasing diversity than any other major research university, according to the Chronicle of Higher Education.

Program Seeks to Nurture ‘Data Science Culture’
at Universities

The New York Times reported on the multi-million collaboration among NYU and two other universities to harness the potential of Big Data, including an interview with Professor Yann LeCun, director of NYU’s Center for Data Science.

NYU Footer