Investigating Price Premiums for Sustainable Product–Service Systems: A Behavioral Reasoning Perspective on the Perceived Benefits and Switching Costs

ABSTRACT Companies are searching for ways to act sustainably while creating new business models focused on providing services via sustainable product–service systems (S.PSS). Yet, a considerable research gap persists regarding how B2B customers perceive and are willing to pay a price premium for S.PSS, influenced by operational and related costs. Utilizing structural equation modeling on data from 235 managers, this study finds that perceived benefits and supplier switching costs for S.PSS adoption indirectly affect customers' willingness to pay a premium, with customer attitudes serving as a mediator. Notably, corporate sustainability orientation affects attitudes solely through the perceived benefits of S.PSS. The results also confirm the direct effect of customer sustainability orientation on perceived benefits and attitude's direct effect on willingness to pay a price premium. The present study seeks to offer implications for both researchers and practitioners by advancing sustainability, servitization, and behavioral reasoning theory literature.