Intention to pay conventional-hotel prices at a green hotel – a modification of the theory of planned behavior

Abstract

Numerous studies have employed the theory of planned behavior (TPB) to understand customers’ behaviors in various fields, but none has tested and extended the theory to explain customers’ decision formation to pay comparable regular-hotel prices for a green hotel. This is the first study designed to test and modify the TPB by including environmental concerns, perceived customer effectiveness and environmentally conscious behaviors, which are critical in explaining eco-friendly consumer behaviors. Salient belief items were identified using an elicitation method (focus group and open-ended survey). A survey obtained 389 respondents. Confirmatory factor analysis indicated that measurement items for all study variables had an adequate level of reliability and validity. The findings from the structural equation modeling showed that the proposed model had a satisfactory fit to the data and better predicted hotel customers’ intention than the original TPB. The results also indicated that all antecedent variables of intention significantly contributed to forming the intention to pay conventional-hotel prices for a green hotel. Respondents were happy to have minor inconveniences, e.g. reusing towels and using recycled products, and were keen to learn about the positive environmental attributes of green hotels. Benefit awareness was shown to be important in customer decision-making.