Effect of Eco-Friendly Products on Consumer Purchase Intention

Term Paper, 2021

13 Pages, Grade: 3.8


Table Of Contents

1. Introduction
1.2 Contextual Factor (Cf)
1.3 Corporate Environmental Performance (Cep)
1.4 Purchase Intention For Different Brands (Pi)
1.5 Selected Categories Of Green Products

2. Literature Review
2.1 Perceptual Factor (Pf)

3. Research Methodology
3.1 Data Collection
3.2 Measurement Development

4. Analysis And Results
4.1 Factor Analysis, Construct Validity & Reliability
4.2 Multiple Regression Analysis With Pi As The Dependent
4.3 Results Of Analysis Of Variance

5. Discussion And Conclusion

6. Recommendations


Abstract – In the previous decade a lot of studies have investigated customers' purchase intention crosswise over various product classes. But, the intention to pay the premium for green products had remained unexamined to a vast degree with regards to developing economies of the east. The study attempts to predict the factors that drive green purchase decisions and purchase Intention. Organized surveys are utilized for data accumulation and ordinary least square regression, analysis of variance have been utilized for analysis of information. Results recommend the strength of customers discernment about the functional parts of green products on their purchase Intention.

Keywords – Perceptual Factor; Contextual Factor; Corporate Environmental Performance; Purchase Intention; Sustainable Products


Extraordinary economic development activated by innovation revolution; globalization has prompted market driven development in consumption pattern in the rising economies. Change in consumption pattern has prompted over consumption or unsustainable consumption and over abuse of assets. In the present period the worry over environmental downturn, decrease of environmental effect and practical development has turned into the topic of interest among the researchers, academicians, specialists and even industries. Consumer research perceives that their observations for a product, approach, understanding about the product and its producer and different contextual factors assume a prevailing part in their decision-making process. Purchase Intention which signifies the most extreme value that a consumer will pay for a specific or a heap of products, play a conclusive influence on their decision behaviour. Accordingly in the crossroads of environmental decay, implementation of friendly environmental practices inclusive of green product consumption relies upon their tendency to pay the green value premium. The present study endeavors to dissect the factors predicting consumers' intention to pay the green value premium for products with green certification. The environmentally feasible or environmental good or green products involves a rundown of potential advantages to the environment as they are made of environmental-accommodating assets, have asset preservation potential, can be reused and have least environmental effect at all phases of its lifecycle (Rex, E. and Baumann, H., 2007). In section two a concise depiction of the constructs has been given, trailed by research methodology in the third segment. The analysis of information with the findings of the study and conclusion are exhibited in the fourth and fifth section. The last segment gives the managerial ramifications of the study.


The hypotheses and viewpoints examined in the section of perceptual factors characterize human inspirations towards environmental conduct. Anyway, conduct doesn't rely upon inspirations alone. Numerous contextual factors may inspire or compel environmental conduct. Barely any studies have weighed on the thought of contextual factors separated from intra-individual factors like attitudes, propensities and discernments in appraisal of decision conduct (Rex, E. and Baumann, H., 2007; X., Wang, C., and Shishime, T., 2010). Social change would now and again be so taken a toll incapable that it would block environmental inspirations, hence requiring thought of contextual factors, for example, physical framework, product evaluating and quality separated. Past researches have concentrated little on contextual factors influencing green purchase decisions.


Additional pressures over environmental and social supportability factors have touched off the worry of corporate substances. Corporate Environmental Performance has developed as a weapon to ease these weights which incites firms socially and environmentally responsive activities while amplifying partners' esteem and firms' esteem creation. Impact of firms' movement on various social gatherings and firms' thought and responsiveness to issues past the domain of economic, specialized and legitimate necessities. These exercises improve organizations' execution by goodness of satisfaction of duty towards different partners, undertaking environmental commencement, encouraging social development and falling back on generous means in this way influencing consumers' assessments and attitudes towards the organizations with such accreditations (Kotler, 1991). In very focused market environment corporate environmental and social execution goes about as a compelling mean of separation by prudence of which environmental affectability are advertised. This study thinks about the environmental measurement of CSR, i.e., consumers' approach towards corporate environmental execution (Bhattacharya, C. B., 2006).


An immense number of studies have been considered with regards to Purchase Intention for various product or administration writes in the scenery of developed economies (Li, T., and Meshkova, Z., 2013). Barely any studies have finished up the tendency of consumers to pay a higher cost for products with environmental qualifications (Reynolds, T., and Kolodinsky, J., 2012; Eriksson, C., 2004) The target of estimating the PI in this paper is to decide the exhaustive attributes that interface consumers green purchase intentions crosswise over various product classes (Electron fluorescent lights, Vegan foods with eco-labels and Air Conditioners with Urusara 7s).


- Vegan foods with eco-label: The value premium for vegan food over its regular substitutes is the real boundary to the improvement of the market for vegan food. Obtaining of vegan food is accepted to rely upon consumers' perceived utility that would adjust at the green cost premium.
- Urusara 7 qualified ventilation systems: Urusara 7 qualified cooling systems have high occasional energy productivity ratio and high energy proficiency ratio appraisals, devouring around 15% less energy than the traditional models. They meet strict energy productivity rules set by the U.S. Ecological Protection Agency. Sparing energy spares cash on service charges, utility bills and shields the earth from destructive carbon and ozone depleting substance emanations.
- Electron fluorescent lamps: A electron fluorescent light, intended to substitute displaced lamps, electron spares around two-third energy over its eight to fifteen times longer lifetime in contrast with a normal radiant lamp.

From the above review the following hypotheses have been derived:

1. H1: Perceptual factors impact willingness to pay for environmentally sustainable products positively.
2. H2: Contextual factor impacts willingness to pay for environmentally sustainable products positively.
3. H3: Consumers’ responsiveness to corporate environmental performance impacts willingness to pay for environmentally sustainable products positively.
4. H4: Perceptual factor, contextual factor, responsiveness to corporate environmental performance and willingness to pay vary across different product categories.


Excerpt out of 13 pages


Effect of Eco-Friendly Products on Consumer Purchase Intention
Limkokwing University of Creative Technology
Catalog Number
ISBN (eBook)
ISBN (Book)
Marketing, Consumer Purchase Intention, Sustainable Product, Eco Friendly Product, Green Product
Quote paper
Yusuf Balarabe Abdullahi (Author), 2021, Effect of Eco-Friendly Products on Consumer Purchase Intention, Munich, GRIN Verlag, https://www.grin.com/document/1157671


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