The Effect of Green Self-Identity on Perceived Image, Warm Glow and Willingness to Purchase: A New Generation’s Perspective towards Eco-Friendly Restaurants

Abstract

Compared to other generations, Generation Z (Gen Z) tend to be more concerned with environmental problems, prefer healthier food options, and are willing to pay premium prices for eco-friendly food products. Until now, however, this market segment had not been the focus of any sustainability research in the restaurant context. The present study fills this gap while exploring if green self-identity (one’s alignment with environmental concerns) influences perceptions of green restaurants (one’s perceived image of green restaurants) and warm glow feeling (one’s good feeling from patronizing green restaurants), which in turn affect willingness to pay. Data was collected from 388 Gen Z participants through a questionnaire survey, and covariance-based structural equation modeling (CB-SEM) was used to examine the study’s model. The results indicate warm glow is generated when individuals with green self-identity acknowledge restaurants are using green practices, which in turn influences their willingness to pay at green restaurants. Additionally, the findings of this study advance the theoretical viewpoints for social exchange theory (SET), identity theory, and green consumption in the restaurant industry. For practical implementation, restaurateurs can improve their businesses by developing their green image, initiating green design, and incorporating eco-friendly activities to enhance patrons’ dining experience.