The Power is Yours: How Power Drives People’s Preference for Sustainable Luxury

The luxury industry acts as a benchmark for other sectors, and trends in luxury can trickle down to mainstream consumption. However, the psychological factors influencing sustainable luxury consumption are not fully understood. We use five studies to demonstrate the impact of psychological power on consumer choices regarding sustainable luxury products. Low power is linked to a preference for sustainable luxury products over generic luxury products (vis-à-vis high power which does not demonstrate a similar preference). This effect is mediated by a warm-glow induced by the altruistic component of a sustainable and ethical purchase, and by the desire for status that is acquired by purchasing a luxury good. Counter to prior work that indicates the tradeoffs between sustainability and status in luxury consumption, we show that (1) sustainability and status needs can both be satisfied by purchasing a sustainable luxury item and (2) the act of sacrificing for the sake of sustainability can lead to the acquisition of status. Our work makes important theoretical and managerial contributions.