Abstract

The availability of and preference for eco-friendly products have increased; however, understanding of sustainable products is still insufficient because most studies have been focused only on organic products. The availability and understanding of organic products are high, but not complete. With regards to environmental protection, it is important to focus not only on the eco-friendly ingredients but also on the eco-friendly packaging because packaging has recently been found to be a primary cause of pollution. Through three studies, this article investigated the interaction between the effect of consumers’ willingness to buy (WTB), the price premium for eco-friendliness (internal: eco-friendly ingredients vs. external: eco-friendly packaging), and the product’s attributes. Three experimental studies were conducted to determine whether the consumers’ WTB and the price premium for sustainable products differ according to the eco-friendliness of the product and the product’s attributes. In Study 1 and Study 3, analysis of variance (ANOVA) was conducted; and, in Study 2, analysis of covariance (ANCOVA) was conducted. The results of Study 1 and Study 2 suggested that the consumers’ WTB for sustainable products can differ according to the product’s attribute. Moreover, results of Study 3 revealed that consumers’ WTB and satisfaction for sustainable products can differ according to level of packaging.

Highlights

  • The market ratio of sustainable products is gradually increasing because environmental pollution has increased consumers’ concerns related to morality [1] and a number of health scares and crises related to product safety

  • H6: Consumers’ preference, product evaluation, satisfaction, Willingness to Buy (WTB), and price premium are higher for cookies packed in an exaggerated manner when they are packed in eco-friendly packaging

  • We investigated the interaction effect between eco-friendliness (Internal: eco-friendly ingredients-organic vs. External: eco-friendly packaging-green packaging) and the products’ attributes

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Summary

Introduction

The market ratio of sustainable products is gradually increasing because environmental pollution has increased consumers’ concerns related to morality [1] and a number of health scares and crises related to product safety. They found that consumers have a tendency to evaluate their preference for sustainable products as lower than their preference for conventional products when the product’s attribute is related to strength (vs gentleness) This is because organic products made with eco-friendly ingredients are perceived as less effective by consumers [16]. We formulated the following hypotheses: H3: Consumers’ WTB and price premium are higher for products with eco-friendly ingredients (vs eco-friendly packaging) when a product’s attributes are related to gentleness. Regarding purchase intention, eco-friendly ingredient products are judged less favorably when packaged with excessive packaging because of expectancy disconfirmation, consumers link high ethical standards to organic products; exaggerated packaging will be evaluated more negatively than appropriately packed organic products. H6: Consumers’ preference, product evaluation, satisfaction, WTB, and price premium are higher for cookies packed in an exaggerated manner (vs. appropriate manner) when they are packed in eco-friendly packaging

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Methods and Results
Study 3
Limitations and Implications
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