The halo vs. horn effect: How does a green product affect the perception of the same brand's non-green product portfolio?

Abstract

With the increasing consumer demands of eco-friendly alternatives in the marketplace, companies have started to think green. Many well-established nongreen companies are now contemplating the launch of a green product to complement their existing product portfolio. This paper attempts to expand the existing and limited research on green horn effects, and how this effect is particularly liable within the strong product category. In our main study, 124 participants rated the attributes of several sunscreens. Half of the group was exposed to a brand, including both a green and a non-green sunscreen, while the other group only evaluated the non-green sunscreen. To manipulate the research purpose, the participants had to rate several other sunscreens. In addition to this, we assessed the participants' pro-environmental orientation to analyze a potential interaction with the effect of the certified green label. The results showed that the participants were more negative towards the non-green product attributes when the brand's product portfolio included a green sunscreen; as well as a decrease in preference and purchase intention. This negative effect also extended to the brand image. However, the hypothesized interaction effects with pro-environmentalism were not supported empirically. These findings confirm the existence of green horn effects on strength-related products and how it can affect the perception of existing product attributes. This result adds to Yenipazarli & Vakharia (2015) research on the risks of green line extensions, as well as Luchs et al., (2010) research on strong product's negative trade-offs. Keywords: horn effect, green horn, certified labeling, green strategies, green line extension.