Determinants of Consumers’ Willingness to Pay for Green Products: The Moderating Role of Price

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 6

Year of Publication : 2020

Authors : Kok Keat Khor, Wai Lam Mah

10.14445/23939125/IJEMS-V7I6P107

How to Cite?

Kok Keat Khor, Wai Lam Mah, "Determinants of Consumers’ Willingness to Pay for Green Products: The Moderating Role of Price," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 6, pp. 38-45, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I6P107

Abstract:

Consumers’ willingness to pay for green products in the context of emerging markets as an outcome to which certain factors contribute is not adequately studied. The purpose of this paper is, therefore, to investigate the determinants of attitude, normative beliefs, green products experience and price in relation to consumers’ willingness to pay for green products and whether price moderates the relationships between attitude, normative beliefs and green products experience with consumers’ willingness to pay for green products. PLS-SEM technique is deployed to test the hypothesized relationships. Data to all variables of interest in this study is collected from a survey using structured self-administered questionnaires. The non-probability sampling approach of purposive sampling is used to collect data from 250 respondents. Empirical findings have shown that attitude and price have a significant positive relationship with consumers’ willingness to pay for green products. It is also found that price negatively moderates the relationship of attitude with consumers’ willingness to pay for green products. In this regard, the positive relationship between attitude and consumers’ willingness to pay for green products is weakened the higher the price of green products. This paper further highlights some limitations as well as managerial implications prior to conclusions.

Keywords:

Green products, attitude, normative beliefs, green products experience, price, consumers’ willingness to pay.

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