Consumers' Willingness to Pay for Sustainable Mobile Phones: An Adaptive Choice‐Based Conjoint and Market Simulation Approach Testing a Multi‐Level Eco‐Score

ABSTRACT This study investigates the impact of a multi‐level eco‐score on willingness to pay for sustainable mobile phones. Using adaptive choice‐based conjoint analysis and market simulation, the study evaluates the effectiveness of a traffic light‐colored multi‐level eco‐score in a realistic market scenario. Results reveal that higher eco‐score levels significantly enhance consumer preferences and willingness to pay for sustainable mobile phones, with top‐tier eco‐scores (“A” and “B”) being notably preferred. The study highlights that improvements in eco‐score levels lead to a stronger increase in consumer preference shares compared to other product attributes. Additionally, consumers exhibit a progressively higher willingness to pay for mobile phones with superior eco‐score levels, indicating potential financial benefits for manufacturers investing in higher environmental performance. This study makes an important contribution by addressing the under‐researched area of multi‐level eco‐labelling in consumer electronics and demonstrating the practical relevance of multi‐level labels in influencing market dynamics and driving sustainable consumer behavior.