Abstract

ABSTRACT By considering differences in culture and economic conditions in two different countries, India and the United States, this study investigates the psychological factors (consumers' attitudes, behavioral intentions, and involvement) in relation to Green practices (GP) in the restaurant industry as measured by three concerns (health, social, and environmental). Next, the study examines how these factors affect consumers' willingness to pay for GP. Results from principal component analyses and multinomial logistic regressions with data from India (n = 196) and the United States (n = 200) (collected from customers at two comparable commercial restaurants in each country) show that there is a clear difference in consumers' attitudes, behavioral intentions, and involvement in GP and the relationship of these factors to the consumers' willingness to pay. The findings of this study showed that consumers in the United States have a higher degree of involvement in environmentally and socially responsible practices in restaurants, which have the most significant effect on consumers' willingness to pay up to 10% or higher on menu prices for GP. In contrast, consumers in India have a higher degree of involvement in health and visibility than consumers in the United States, which is the major driver of their willingness to pay more than 10% or higher on menu prices for GP.

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