Consumer willingness to pay more for pro-environmental packages: The moderating role of familiarity

Abstract

Institutional regulations and market trends are spurring companies to invest more in pro-environmental and sustainable products. Within the pro-environmental offer, there are several packaging alternatives, from sustainably packaged to unpackaged products – so-called bulk – and/or labels, compelling companies into making a complex investment choice. Further, the required higher investments do not always find consumers' approval. Consumers often consider pro-environmental packaging as excessively expensive. Within this context, this study seeks to understand how to exploit the consumers' greater attention to sustainability and well-being to boost consumers’ willingness to pay more for pro-environmental products. In doing so, the study compares two packaging options (i.e., sustainably packaged products and bulk products). Additionally, the study assesses differences between highly and slightly familiar consumers, evidencing how to properly encounter the expectations of the two segments. The findings, derived by a multigroup structural equation model conducted on 278 structured questionnaires, reveal that health concern impact is more relevant to highly familiar consumers while environmental concern is for slightly familiar consumers. For the latter, label influence plays a primary role in enhancing their willingness to pay more for pro-environmental products. Overall, sustainably packaged products are preferred to unpackaged products.