Influence of environmental characteristics of the consumers on their willingness to pay for green products: an empirical investigation

Abstract

The main aim of the study was to explore the relationship of environmental characteristics of the consumers on their willingness to pay for green products. The environmental characteristics of the consumers were considered as the measure of their environmental concern, perceived environmental responsibility and attitude towards green products. Hence, more specifically, the objective of the study was to explore the relationship of consumers' environmental concern, their perceived environmental responsibility and their attitude towards green products with their willingness to pay for green products. The data was collected from a researcher controlled sample of students enrolled in post graduate (PG) programs at a reputed Central University in Northern India. Majority of students enrolled in such central government funded public institutions exhibit modern cosmopolitan look and belongs to middle class background. Moreover, student samples have been the preferred group in similar studies as they are easy to locate and are considered to be trendsetters. To meet the objectives of the present study, statistical techniques such as exploratory factor analysis and regression analysis were employed. The findings show that environmental concern and attitude towards green products have statistically significant and positive bearing on willingness to pay while the relationship between perceived environmental responsibility and willingness to pay was found to be statistically insignificant. The study findings have an applied bias and can be of immense help to marketers and researchers alike in understanding green purchase behaviour. The study also lists directions for future researchers.