explaining effective factors on consumers’ willingness to pay more for buying green products based...
TRANSCRIPT
Explaining effective factors on consumers’ willingness to pay more for buying green products based on the
Value-Belief-Norm theory
Alireza Ziaei-BidehMSc of Business Management, Persian Gulf University
[email protected], +989353977561
Mahsa Namakshenas-JahromiMSc student of Industrial Management, Yazd University
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Increase of environmental pollution and damage, together with the
increase in public concern about the surrounding natural environment,
has so far influenced the purchase and consumption behaviors, and
thus, has led to emergence of a new group of consumers called
GREEN CONSUMERS.
Introduction
Green Consumers or Environmental-Friendly Consumers are
those who consider the impact of manufacturing process and
consumption of environmental resources while making
purchase or participating in other market related activities;
and make their decisions accordingly.
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Similarly, in Iran, according to evidence, the public concern about
environmental issues has increased among consumers, and green
segments have emerged in markets.
Introduction..
Researchers have come to the conclusion that attitudes towards
environmental issues and environmental-friendly behaviors and factors
that encourage consumers to purchase green products are not the same
in all cultures.
Hence, due to the unique cultural norms and values of Iranian
citizens, it is necessary to conduct appropriate studies to
determine profile and characteristics of
IRANIAN GREEN CONSUMERS.
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The term 'green' has nothing to do with color, but the choice of name is
appropriate because green is a color that is often associated with nature.
GREEN PRODUCTS
Green products are considered kinder to the environment than non-
green goods, in one way or another.
• Energy efficient, durable and often have low maintenance requirements.
• Free of Ozone depleting chemicals, toxic compounds and don’t produce toxic by-products.
• Often made of recycled materials or content or from renewable and sustainable sources.
• Obtained from local manufacturers or resources.• Biodegradable or easily reused either in part or as a whole.
Green products are:
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What is the effective factors on consumers’ willingness to
buy green products that have a premium price compared
with similar products in market?
Research QuestionIn
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Value-Belief-Norm Theory
The VBN theory of pro-environmental behavior developed by Stern
(2000) is an extension of the Norm Activation Theory (NAT) of
Schwartz’s (1977).
The VBN theory assumes a hierarchical model where
individual value orientations directly influence beliefs, and
thereby attitudes and finally behavior.
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Conceptual ModelIn
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Methodology
The target population of this research is consumers in Yazd province
A convenience sampling method was used to select the respondents.
A total of 300 initial responses have been received. After eliminating
the confounding questionnaires, the number of final sample analyzed
was 252, resulting in a response rate of 84%.
A questionnaire was used to collect the required data. All
measures have been adopted from previous studies.
Structural Equation Modeling (SEM) has been used to test
the conceptual model.
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Results
Initial model results:
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Results..
Final model results:
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Results..
GFI AGFI CFI NFI RMSEA Fit Indices
1-3 GFI>0/9 AGFI>0/9 CFI>0/9 NFI>0/9 RMSEA<0/1 Recommended
1.93 0.96 0.92 0.91 0.92 0.058 Model fit
Final model fit:
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Results..
Path coefficients and hypothesis testing:
Hypothesis Parameter estimates Result Number t-value Standardized β Relationship
Supported H1 5.12** 0.21 Altruistic → NEP Supported H2 7.34** 0.32 Biospheric → NEP
Not Supported H3 1.02 0.08 Egoistic → NEP Supported H4 6.32** 0.25 NEP → AOC Supported H5 2.76** 0.19 AOC → AOR Supported H6 8.62** 0.36 AOR → PN Supported H7 4.65** 0.24 PN → Willingness to pay
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Conclusion
VBN theory can explain effective factors on Iranian consumers
willingness to pay the premium price of green products.
Altruistic and biospheric values have a positive significant effect on
consumers attitude toward environment.
consumers attitude toward environment can increase their awareness
about consequences and problems of environment. This increased
awareness leads to ascription of responsibility and then personal norm
toward preserving environment.
pro-environmental personal norm increases consumers’
willingness to buy green products even when they are premium
priced compared with similar products.
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Thanks for your attention
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