Warm glow and consumers’ valuation of ethically certified products

Abstract

A number of self-beneficial motives can trigger pro-environmental and prosocial behavior of individuals. We focus on the role of the warm glow of giving—the personal benefit people experience when doing good irrespective of the consequences—in the valuation of ethically certified food products. Our data is based on an online experimental auction with more than 800 consumers in Germany. Participants bid on tea and chocolate advertised with prosocial and pro-environmental certifications after being randomly exposed to affectively and informatively framed messages. We also measured the experienced warm glow of participants. Our main results are (1) that the experienced warm glow is only linked to a higher willingness-to-pay of older and higher income respondents; (2) that the experienced warm glow does not differ between prosocial and pro-environmental causes; and (3) that treatment effects do not differ according to the participants’ warm glow level but according to the certification itself.