ABSTRACT
This study assesses consumer perceptions of advertising messages for two proenvironmental products by examining the effectiveness of environmental versus personal benefit appeals and .99 versus .00 price endings. The authors borrow from Prospect Theory and Mental Accounting Theory to explain consumers’ perceptions of psychological pricing and product attributes. In addition, the moderating role of environmental skepticism is assessed as it relates to the effectiveness of environmentally friendly advertisements. Results indicate that consumers feel that some products advertised with environmental appeals are more costly, but are not perceived as lower quality as compared with products advertised with personal benefits. Findings also indicate a price ending × appeal interaction for two different products, but the effects vary between the products. Finally, environmental skepticism is found to moderate perceptions of the message appeal. Implications are provided.
