Evaluating the Green Premium: Consumer Willingness to Pay for Eco-Friendly Product Attributes

This study looks at what makes consumers willing to pay a premium for eco-friendly products and focuses on attitudes towards eco-friendly products, subjective norms, perceived behavioral control, environmental concern, and environmental knowledge. The results show that attitudes, perceived behavioral control, environmental concern, and environmental knowledge all significantly impact consumers' willingness to pay a premium for eco-friendly products. Positive attitudes towards green products was the most important factor, thus suggesting the importance of marketing strategies that highlight the benefits of eco-friendly products and endorsements from trusted figures. Perceived behavioral control shows that we need to make green products more accessible and affordable and environmental knowledge shows we need to educate consumers about the environmental impacts of their purchases. Environmental concern also plays a big role in consumer behavior towards sustainable products. Although subjective norms didn’t show up as a significant factor in this study, their impact in other cultural contexts is worth investigating. The limitations of this study include a small sample size of California students. Future studies should aim for larger and more diverse samples and include additional variables like income and brand loyalty. This research contributes to the literature on sustainable consumption and provides insights for marketing strategies and policy recommendations to promote eco-friendly consumer behavior.