Assessing the spending tendency of consumers on green products: an Indian perspective

Abstract

Researchers observed that as Indian customers are price conscious; the high cost associated with green products often curbs their green purchase decisions. Thus, assessing the spending tendency of consumers on green products is a matter of concern from the managerial point of view. This study measures the willingness to pay more for green products among Indian consumers and attempts in establishing a predictive model for the same. Data were collected through a survey in 11 major Indian cities. Discriminant analysis was used to establish predictive modelling. Further, green marketing constructs under study are compared with respect to willingness and unwillingness to pay more. Findings reveal that inconvenience to adopt green practices restricts the consumers to pay more for green products. The study also provides important insights for policy makers and practitioners a predictive model of explaining the willingness to pay more for green product.