Switching to sustainable products: The role of time, product, and customer characteristics

Abstract

Achieving a sustainable economy is one of the primary needs of our time, and sustainable products can play a decisive role in achieving this goal. This article seeks answers about the role of time and product characteristics in the intention to switch to a sustainable product using the example of an everyday product. Drawing from social identity theory, utility maximization and switching theory, the authors propose a conceptual model to examine these questions in a specific market disruption when a product is modified by the same company. The framework focuses on the time-varying effects of customers' features (brand identification, loyalty, embeddedness) and products' features (perceived value [PV], compliance, switching cost) on switching behavior. The research was carried out using a quasi-experimental method in three periods. In the first stage, Cox Proportional Hazard Regression was used, and a random-effects model in the second. Results from longitudinal data of 282 customers during the launch of a new sustainable product show that customer characteristics do not influence the intention to switch. In contrast, the PV and switching costs inhibit the switching behavior, but their effects vary over time. In particular, the effect of the relative PV of the sustainable product on switching will increase over time, but the importance of customer–brand identification also rises. The study has important implications for introducing a sustainable equivalent of an incumbent product of the same brand.