The greenguard effect: When and why consumers react less negatively following green product failures

Abstract

This research explores consumer reactions following green product failures, identifying a novel benefit for companies selling environmentally friendly products. Across an empirical field analysis and eight controlled experiments, the authors show that consumers react less negatively to the failure of green products than conventional ones, which is referred to as the greenguard effect. The findings suggest that by not reacting negatively to green product failures, consumers believe they are being more prosocial, as their negative reaction may harm the success of a product that otherwise benefits the environment and society. This research contributes to the literature on green products by highlighting a novel benefit of green product attributes and demonstrating how prosocial motives influence consumer reactions to green product failures, and offers valuable insights for marketers on green product marketing.