Decoding willingness of Indian consumers to pay a premium on green products

2018 ◽  
Vol 7 (1) ◽  
pp. 73-90 ◽  
Author(s):  
Mohd Danish Kirmani ◽  
Mohammed Naved Khan
Keyword(s):  
Structural Equation ◽  
Environmental Concern ◽  
Positive Influence ◽  
Systematic Sampling ◽  
New Delhi ◽  
National Capital Region ◽  
Green Products ◽  
Middle Income ◽  
Content Type ◽  
Indian Consumers

Purpose The purpose of this paper is to identify the relevant antecedents of willingness of Indian consumers to pay a premium for green products and empirically validate the relationship between these antecedents and willingness to pay (WTP). Design/methodology/approach Data were generated from 515 students enroled in various educational institutions approved by the All India Council for Technical Education and located in New Delhi and National Capital Region region of India. A combination of researcher-controlled and systematic sampling techniques was employed for the purpose of identifying the sample. Structural equation modelling was used to analyse the data using AMOS 20.0. Findings The study revealed that attitude towards green products (ATGP) has a significant and positive influence on WTP. Additionally, collectivism and environmental concern emerged as predictors of ATGP. Practical implications Marketing practitioners are expected to get deeper insights into reasons that contribute to the formation of positive attitude among Indian consumers towards green products. This understanding may greatly assist proactive marketers in developing appropriate strategies to increase the propensity of WTP a premium for such products. Originality/value The study is pioneering in the sense that the construct WTP for green products had relatively been less explored in the Indian context. The construct WTP is important for Indian consuming class which is dominated by middle and lower middle income groups for whom spending extra from their regular expenditure is a critical and sensitive issue.

Role of religiosity in purchase of green products by Muslim students

2018 ◽  
Vol 9 (3) ◽  
pp. 504-526 ◽  
Author(s):  
Mohammed Naved Khan ◽  
Mohd Danish Kirmani
Keyword(s):  
Structural Equation ◽  
Environmental Concern ◽  
Environmental Conservation ◽  
Consumer Attitude ◽  
New Delhi ◽  
Green Products ◽  
Muslim Students ◽  
Content Type ◽  
National Capital

Purpose This paper aims to investigate the role of religiosity in Indian Muslim students with the objective of mapping their attitude towards green products. Design/methodology/approach Data were generated from 306 Muslim students enrolled in educational institutes located in the national capital of India (i.e. New Delhi). The study sample was identified through purposive sampling, and then the questionnaire was personally administered. The data were analysed using SPSS and AMOS, and research hypotheses were validated using structural equation modelling. Findings The findings of the present study suggest that environmental concern is a precursor of consumer attitude towards green products, and antecedents of environmental concern are collectivism and eco-literacy. Further, the findings also suggest that religiosity significantly and positively affects collectivism values of consumers. However, religiosity was not found to be significantly associated with the level of eco-literacy of consumers. Practical implications Religiosity emerged as one of the main factors that needs to be considered while promoting green products in India. In their promotion messages, green marketers attempting to target Muslim students ought to emphasize that Islamic tenets enjoin upon them to collectively take the responsibility of preserving the environment. The natural resources and the environment may be presented as a gift of Almighty Allah, and steps towards environmental conservation may be projected as a mode of pleasing Allah. Originality/value This study is pioneering in the sense that it proposes a comprehensive and practical model for mapping attitude towards green products for young Indian Muslim consumers. In fact, the study takes a lead in examining the role of religiosity as antecedent in mapping of attitude towards green products and the role of collectivism and eco-literacy in influencing environmental concern.

scholarly journals Pro-environmental behaviour, locus of control and willingness to pay for environmental friendly products

2015 ◽  
Vol 33 (1) ◽  
pp. 67-89 ◽  
Author(s):  
Rohit H Trivedi ◽  
Jayesh D Patel ◽  
Jignasa R Savalia
Keyword(s):  
Locus Of Control ◽  
Willingness To Pay ◽  
Structural Equation ◽  
Target Audience ◽  
The Body ◽  
Green Products ◽  
Content Type ◽  
Wide Range ◽  
Indian Consumers ◽  
Relevant Variables

Purpose – Marketers have realized the importance of assessing consumers’ willingness to pay (WTP) before introducing green products across different target audience. The purpose of this paper is to examine the relative influence of consumers’ pro-environmental behaviours (PEBs) and environmental locus of control (ELOC) on their WTP for green products. Design/methodology/approach – The study sample consisted of 256 Indian consumers which were recruited with the help of convenience sampling. A structured questionnaire was administered with scales that were well established and that have been used in previous research. Data were analysed with the help of CFA and structural equation modelling to test the relationship of ELOC and PEB anon WTP. Second, clustering respondents according to their PEB and ELOC has been done to find its differential effect on WTP with the help of multivariate analysis of variance (MANOVA). Findings – Findings of the study highlight that WTP for green products is significantly predicted by two variables which are in following order: PEB and ELOC. Results of cluster analysis and MANOVA revealed that WTP differ significantly with the level of intensity of ELOC and PEB among Indian consumers. Research limitations/implications – It advances the body of knowledge centred on the interplay of the PEB and ELOC to WTP for green products. Additional work is clearly required to consider the wide range of potentially relevant variables like brand image, prices, advertisements and product quality that ensures the generalizability of findings. Practical implications – The hypothesis framed, tested and inferences made can form a basis of extremely valued toolkit for those green marketers who take caution when planning their marketing and communications strategies to stimulate the WTP by conveying a reason and motivation to act environmentally. Originality/value – In this study, an understanding of WTP for green products is developed. The much required knowledge gap in terms of interplay of ELOC and PEB on WTP has been filled with the help of the present study. It has been identified that those consumer groups who displays higher PEB and ELOC forms the primary target audience for green product marketer.

Green purchase intention

2019 ◽  
Vol 11 (6) ◽  
pp. 1389-1403 ◽  
Author(s):  
Alireza Naalchi Kashi
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Environmental Concern ◽  
Negative Emotion ◽  
Negative Emotions ◽  
Equation Modeling ◽  
Environmental Concerns ◽  
Green Products ◽  
Content Type ◽  
Meaningful Relationship

Purpose The purpose of this study is to focus on what factors and variables affect the consumers’ intention to purchase green products and lead them to prefer green ecologic products to other products and choose to buy them. Design/methodology/approach For this purpose, a total of 450 students from the Islamic Azad University of Yazd took part in this survey. The research method was applied in terms of purpose and in terms of analysis, it was of the scaling type. The data collection tool and sampling for the questionnaire were done randomly and to determine the sample, the Cochran formula was used. This study used the SPSS software to analyze the descriptive statistics (demographical factors) and through the software LISREL, the connection between the variables was investigated by structural equation modeling. Findings The results indicated that environmental beliefs affect environmental concern and there must be a meaningful relationship between them. Also, the increase in environmental concern leads to an increase in the attitude to consuming green products, and finally, an increase in the consumers’ demand for purchasing green products. Furthermore, an increase in environmental concerns also increases positive emotions, which, in turn, increases the consumers’ will to purchase green products. Finally, there is a meaningful relationship between environmental concerns and negative emotion while there is no significant relation between was reported between negative emotions and the will to purchase. Research limitations/implications The tested model now uses purchase intention as a result variable instead of real purchase, and in practice, it will be difficult to develop a research framework in controlled real behavior. Originality/value Investigating the role of positive and negative emotions on the intention of purchasing green products helps marketing managers up to by correct identifying consumers’ emotions can designing appropriate strategies for encouraging them to use green products.

scholarly journals Why Not Green Marketing? Determinates of Consumers’ Intention to Green Purchase Decision in a New Developing Nation

2020 ◽  
Vol 12 (19) ◽  
pp. 7880 ◽  
Author(s):  
Md. Nekmahmud ◽  
Maria Fekete-Farkas
Keyword(s):  
Structural Equation ◽  
Environmental Concern ◽  
Perceived Quality ◽  
Negative Influence ◽  
Positive Influence ◽  
Green Marketing ◽  
Purchase Decision ◽  
Purchase Decisions ◽  
Green Products ◽  
Willingness To Purchase

Consumers are paying close attention to green products to reduce the environmental impact on health issues. As the scope of this research, this current study focuses on determining consumers’ purchase decisions regarding green products using a survey conducted in a fast-growing developing country. This research was descriptive and considered a conceptual framework for extending the Theory of Planned Behavior (TPB), which was selected as the primary theoretical model. The significant contributions and main objectives of this study are as follows—to explore the present scenario of green marketing in Bangladesh with previous studies, and to fill a research gap regarding green purchase decisions by applying the TPB model with adding additional constructs, such as environmental concerns, green perceived quality, and future green estimates. A range of qualitative and quantitative techniques were adopted to collect data from the target groups, where a sample of young educated Bangladeshi consumers (n = 638) was used to consider the measurement and structural models by applying a partial least squares-structural equation modelling (PLS-SEM) method. The empirical findings show that consumers’ environmental concern (EC), green perceived benefits (GPB), green awareness of price (GAP), green willingness to purchase (GWP), and future estimation of green marketing (GFE) have a strong positive influence on consumer’ green purchase decision (GPD). Still, the green perceived quality (GPQ) has a negative influence on green purchase decisions (GPD). To inform consumers about green or eco-friendly products, this study provides valuable suggestions to companies, marketers, and policymakers for designing green marketing tools such as green advertising, green branding, and eco-labels. Based on these findings, it gives some managerial insights for the promotion of green products and green marketing.

Platform ecological circle for cold chain logistics enterprises: the value co-creation analysis

2020 ◽  
Vol 120 (4) ◽  
pp. 675-691 ◽  
Author(s):  
Benhong Peng ◽  
Yuanyuan Wang ◽  
Sardar Zahid ◽  
Guo Wei ◽  
Ehsan Elahi
Keyword(s):  
Influencing Factors ◽  
Resource Sharing ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Positive Influence ◽  
Cold Chain ◽  
Enterprise Performance ◽  
Logistics Industry ◽  
Content Type ◽  
Logistics Enterprises

Purpose The purpose of this paper is to propose a framework of value co-creation in platform ecological circle for cold chain logistics enterprises to guide the transformation and development of cold chain logistics industry. Design/methodology/approach This paper establishes a conceptual framework for the research on the platform ecological circle in cold chain logistics, utilizes a structural equation model to investigate the influencing factors of the value co-creation of the platform ecological circle in the cold chain logistics enterprises and elaborates the internal relations between different influencing factors regarding the value co-creation and enterprises’ performance. Findings Results show that resource sharing in logistics platform ecological circle can stimulate the interaction among enterprises and this produces a positive influence on their dynamic capabilities, which, in turn, affects the they to work together to plan, implement and solve problems, so as to achieve the goal of improving enterprise performance. Practical implications The shared resources and value co-creation activities in the platform ecological circle are very important for the transformation and development of cold chain logistics enterprises. Therefore, enterprises should promote value co-creation through realizing resource sharing and creating a win-win cooperation mechanism. Originality/value This paper targets at incorporating the resource sharing in platform ecological circle for cold chain logistics enterprises, explores from an empirical perspective the role of the resource sharing in cold chain logistics enterprises in enhancing the dynamic capabilities of enterprises, thereby encouraging the value co-creation behavior, and ultimately boosts enterprise performance and stimulates business development.

A seller perspective on economic and non-economic satisfaction as precursors to formalisation, specific investments and dependence in business relationships

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nils M. Høgevold ◽  
Gøran Svensson ◽  
Mercy Mpinganjira
Keyword(s):  
Structural Equation ◽  
Positive Influence ◽  
Point Of View ◽  
Exchange Relationships ◽  
Content Type ◽  
Specific Investment ◽  
Specific Investments ◽  
Economic Satisfaction ◽  
Business Exchange ◽  
Business To Business

PurposeSeen from the seller's point of view, this study examines economic and non-economic satisfaction as distinct conceptual variables, and tests how the constructs relate to each other and to the business transactional cost variables of formalisation, specific investments and dependence.Design/methodology/approachData was collected from 213 key informants from Norwegian companies involved in business-to-business marketing. Structural equation modelling was used to test the posited hypotheses.FindingsThe findings show that sellers' economic satisfaction exerts a positive influence on non-economic satisfaction and on formalisation, while its posited influence on specific investments was not found to be significant. Formalisation was, however, not significantly influenced by seller non-economic satisfaction. Specific investment was positively influenced by seller non-economic satisfaction. The influence of formalisation on specific investments and dependence was significant. Specific investments were also found to be positively influenced by dependence.Research limitations/implicationsThe study reveals the importance of assessing both economic and non-economic satisfaction in trying to understand sellers' behaviour in business-to-business markets.Practical implicationsThe findings show the need for managers to ensure economic satisfaction, as its affects non-economic satisfaction.Originality/valueThis study contributes to a better understanding of satisfaction in business-to-business exchange relationships and its relationship with transactional cost constructs based on a seller's perspective.

Peer-to-peer marketplaces: a study on consumer purchase behavior

2019 ◽  
Vol 2 (1) ◽  
pp. 37-54 ◽  
Author(s):  
Apostolos Ampountolas
Keyword(s):  
Consumer Satisfaction ◽  
Structural Equation ◽  
Positive Influence ◽  
Peer To Peer ◽  
Purchase Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Repurchase Intentions ◽  
Digital Ecosystem ◽  
The Relationship

PurposeThe online travel environment continues to expand as the numerous peer-to-peer (P2P) marketplaces that comprise the “sharing economy” have also multiplied and expanded, resulting in a move from the traditional hospitality industry to a new digital ecosystem. The purpose of this paper is to examine the effects of different antecedents and the relationships between benefit factors. It does so by simulating the behavior that leads to consumer loyalty and repurchase intentions within a P2P marketplace transaction.Design/methodology/approachThe analysis is based on survey data from 456 respondents located in different regions, collected via a web-based survey questionnaire. A two-step approach employing confirmatory factor analysis, followed by structural equation modeling, was conducted to evaluate the measurement and structural models, as recommended by Anderson and Gerbing.FindingsThe findings of this study partially confirm the relationship between benefit factors (monetary, hedonic and location benefits) and consumer repurchase intentions. The benefit factors display a positive influence on consumer satisfaction, which mediates the relationship between loyalty and repurchase intentions. Hence, the study contributes to scholarly efforts to better understand why consumers choose to purchase through P2P platforms.Practical implicationsThe findings of this study can provide P2P intermediaries and hosts with the empirical evidence of consumer behavioral changes. Nowadays, in practice, consumers have the ability to compare products and offers. As such, for a consumer to remain loyal to a particular supplier, the offer must satisfy the service and experience that the consumer has in mind, as many alternative offers exist.Originality/valueThis study seeks to identify the behavioral factors that cause even loyal consumers to move from the traditional hospitality industries to P2P platforms, despite the probability of losing any loyalty benefits gained in the traditional industries.

Indian consumers’ risk perception in buying green products: the case of LED light bulbs

2018 ◽  
Vol 30 (4) ◽  
pp. 927-951 ◽  
Author(s):  
Sujit Kumar Ray ◽  
Sangeeta Sahney
Keyword(s):  
Risk Perception ◽  
Financial Risk ◽  
Social Risk ◽  
Green Products ◽  
Content Type ◽  
Performance Risk ◽  
Indian Consumers ◽  
And Performance ◽  
Psychological Risk ◽  
Overall Risk

PurposeThe purpose of this paper is to examine how the various perceived risk facets such as financial risk, performance risk, psychological risk, social risk, and physical risk influence the Indian consumers’ perceived overall risk during the purchase of green products such as energy-efficient LED light bulbs.Design/methodology/approachA self-administered questionnaire comprising a total of 29 items was employed over a sample of 272 respondents. The structural equation modeling using partial least squares was used for data analysis.FindingsPsychological risk emerged as the most influential of the various risk facets in affecting perceived overall risk. Financial, physical, and performance risks emerged as the second, third, and fourth most influential risk facets, respectively, which affect the perceived overall risk. Surprisingly, social risk did not emerge as an influential facet when it comes to affecting perceived overall risk. Further, psychological and financial risks appeared to have a positive medium-level influence on the perceived overall risk, whereas physical and performance risks appeared to have a positive weak influence on the perceived overall risks. The influence of financial risk on the perceived overall risk was found to be partially mediated by performance risk.Originality/valueThe study is unique in the sense that it reflects the risk perception of potential consumers in one of the largest emerging markets of the world, when it comes to purchase of green products.

Moral norm is the key

2020 ◽  
Vol 32 (8) ◽  
pp. 1823-1841 ◽  
Author(s):  
Matthew Tingchi Liu ◽  
Yongdan Liu ◽  
Ziying Mo
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Underlying Mechanism ◽  
Subjective Norms ◽  
Purchase Intentions ◽  
Moral Norms ◽  
Green Products ◽  
Chinese Consumers ◽  
Content Type ◽  
The Relationship

PurposeThis research extends the theory of planned behaviour (TPB) and aims to study the underlying factors that influence Chinese consumers' purchase intentions towards green products. The conceptual model encompasses four elements (subjective norms, perceived behaviour control, moral norms and attitude) and one consumer response (purchase intention).Design/methodology/approachThe current research employs a questionnaire survey and two experiments. In Study 1, the hypotheses were tested using structural equation modelling with 485 consumers in China. Study 2 employed a single-factor, two-condition (morally engaged vs control), between-subject design.FindingsThe findings reveal that the morally extended TPB framework is more applicable in predicting Chinese consumers' green purchase intentions than the original TPB model. Attitude plays the most significant role in predicting purchase intentions, and moral norms prove to be a mediator of the relationship between the original construct of subjective norms and purchase intentions. The findings further revealed that moral norms comprise the underlying mechanism of the relationship between subjective norms and attitude.Originality/valueThis study therefore expands the TPB theory by including moral norms. Moreover, it contributes to the literature by clarifying the direct, indirect and total effects of each TPB element on the purchase intentions towards green products. Finally, managerial implications are given.

scholarly journals A RELAÇÃO DA PREOCUPAÇÃO AMBIENTAL COM O CONSUMO DE PRODUTOS VERDES NO VAREJO

2016 ◽  
Vol 15 (3) ◽  
pp. 821 ◽  
Author(s):  
Sergio Silva Braga Junior ◽  
Edgard Monforte Merlo ◽  
Dirceu Da Silva
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Quantitative Research ◽  
Environmental Concern ◽  
Equation Modeling ◽  
Purchase Intent ◽  
Green Products ◽  
Green Consumption ◽  
Relationship Of ◽  
The Relationship

<p>O objetivo com a presente pesquisa foi avaliar a relação da preocupação ambiental do consumidor com sua efetiva declaração de compra de produtos verdes no varejo. Orientado por uma linha de pesquisa que busca explicar o fato de o comportamento ter como precedente a intenção e não a atitude, foi avaliado se a preocupação dos consumidores com o meio ambiente está sendo convertidas em intenção de compra e posterior declaração de compra. O problema que orientou a pesquisa pode ser expresso pela seguinte questão: a preocupação ambiental está relacionada com a intenção de compra para se tornar compra declarada de produtos verdes no varejo? Para responder a essa questão e atender ao objetivo proposto, foi realizada uma pesquisa de natureza quantitativa por meio de um <em>survey</em> com 1.233 consumidores reais de quatro capitais brasileiras, avaliando-se a percepção que eles possuem de si mesmos e dos outros. A análise de dados foi feita utilizando-se a modelagem de equações estruturais por meio do <em>software</em> SmartPLS 3.0. Os resultados indicam que os consumidores pesquisados não demonstram relacionar diretamente sua preocupação ambiental com a compra declarada de produtos verdes, que revelou ser formada pela intenção de compra. Isso foi observado nas duas condições, quando os consumidores responderam sobre a sua percepção e sobre a dos outros (sociedade).</p><p>Palavras-chave: Consumo verde. Preocupação ambiental. Varejo. Comportamento do consumidor.</p><p> </p><p align="center"><strong><em>The relationship of environmental concern with green products consumer in retail</em></strong></p><p> </p><p align="center"><em>Abstract</em></p><p align="center"><em> </em></p><p>The purpose with this research was to evaluate the environmental consumer concern with their actual purchase statement for green products in retail. Guided by a line of research that seeks to explain the fact that the behavior has as a precedent the intention and not the attitude was assessed to consumer concern about the environment and these are converted into purchase intent and purchase later statement. The problem oriented research can be expressed by the following question: Environmental concern is related to the purchase intention to become declared purchase of green products at retail? To resolve this matter and meet the proposed objective, a quantitative research through a survey with the 1233 actual consumers of four brazilian capitals assessing his perception as an individual was carried out and as he watches others. Data analysis was performed using the structural equation modeling through SmartPLS 3.0 software. The results indicate that consumers surveyed do not demonstrate directly relate their environmental concerns with the purchase declared for green products, which were shown to be formed by purchase intent. This perception takes place in the two conditions, when they respond on their perception and when they answer about how he observes others (society).</p><p>Keywords:<strong> </strong>Green consumption. Environmental concern. Retail. Consumer behavior.</p>

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