Determinants of Purchase Decisions and Consumers’ Willingness to Pay for Green Products

Abstract

The purpose of the study was to investigate the influence of consumers buyingdecisions and willingness to pay for green products. Five variables were examinedfor the determinants, and three questions were considered for the willingness to payfor green products. Data were collected through questionnaires. Utilizing stratifiedsampling technique, the researcher considered 310 respondents. The study revealeda low to moderate influence of personal , social , economic, psychological factorsand product attributes on consumers purchase decision This means specific itemsare influential to one demographic but not to another. Eighty four percent of thetotal participants in the study are willing to pay for green products, and from thosewho are willing to pay, 39% perceived they have the willingness and ability topay up to 5% more of the product price. Statistical analysis revealed a significantdifference between income groups and willingness to pay while psychological and economic determinant were found to be significantly related to willingness to payfor green products. This means affordability, income adequacy, motivations andenvironmental concerns are positively linked to willingness to pay. This studyadded to the literature of green consumer behavior and provided a consumers’ viewpoint to aid in the development of marketing strategies.Keywords: Economics, personal factors, social influence, economic factors, productattributes, psychological influence, descriptive-correlational design, Philippines