When being green is not enough – An experimental study of the effects of sustainable value propositions on B2B green buying decisions

Abstract

Despite the increased importance of environmental sustainability in B2B buying, insights on the marketing mechanisms that influence B2B green buying behavior and green value perceptions at the individual level are still limited. Drawing upon signaling theory and the literature on sustainable value propositions in B2B markets, we first examine the effect of vendors' sustainable value propositions on individual B2B buyers' purchasing decisions for green technology offerings. In a second step, we further investigate the role of buyers' market turbulence as a contingent factor in this relationship. Our findings from a scenario-based experiment provide empirical evidence that a risk-based strategy is more effective under conditions of high buyer market turbulence, while a certification-based strategy, counter to the literature, is more impactful in less turbulent markets. We thus advance the knowledge on the factors that drive B2B green buying at the individual level and contribute to the literature on sustainability value and sustainable value propositions in business markets. Our results further provide guidance for vendors designing value propositions for green offerings and for buyers seeking to purchase environmentally-friendly technologies.