True pricing, a concept that makes the actual costs of products – including environmental and social costs – transparent, is gaining ground. More and more people support this idea, but the question remains: who bears these costs? Research shows that 45% of the Dutch believe that companies should bear the majority of these costs, while only 22% think they themselves should contribute. This indicates that there is still uncertainty about who should be responsible.
The impact of true pricing on businesses
The impact on businesses is significant. Consumers' willingness to pay more for a product strongly depends on how clearly and reliably companies communicate about true pricing. The research shows that 59% of the Dutch are willing to pay a fair price, but this percentage could increase further with the right approach. Companies need to focus their communication on positive framing and emphasize the sustainable impact of true pricing. Consumer trust plays a crucial role in this.
Six factors for higher acceptance
The research highlights six key factors that can help companies increase the acceptance of true pricing. For instance, a positive framing of the message is more effective than a negative approach. Additionally, transparency about the allocation of the extra contributions is essential. Consumers want to be sure that their contribution is actually used to compensate for hidden costs. Although knowledge about true pricing does not directly lead to a higher willingness to pay, it appears that people who already have a sustainable lifestyle are more open to the idea.
The role of price and language use
Companies can further refine their approach by strategically using language and product pricing. For cheaper products, consumers are more willing to pay the true price gap. The term 'contribution' instead of 'donation' can also have a positive effect on the willingness to pay. Additionally, psychological pricing plays a role; a small price increase, such as an extra 10 cents, seems less drastic than a larger increase, making it more acceptable. Marketers can leverage simple and accessible language that emphasizes the idea of a small, achievable contribution, reinforcing the feeling that consumers can make a positive difference with minimal effort.
Transparency and trust
In short, effective communication about true pricing can help companies gain consumer trust. By being open and transparent, companies can contribute to a fairer and more sustainable economic system, benefiting both consumers and the environment.