Explaining effective factors on consumers’ willingness to pay more for buying green products based on the

Value-Belief-Norm theory

Alireza Ziaei-BidehMSc of Business Management, Persian Gulf University

ess.ziaei@gmail.com, +989353977561

Mahsa Namakshenas-JahromiMSc student of Industrial Management, Yazd University

ma.namakshenas@gmail.com

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Increase of environmental pollution and damage, together with the

increase in public concern about the surrounding natural environment,

has so far influenced the purchase and consumption behaviors, and

thus, has led to emergence of a new group of consumers called

GREEN CONSUMERS.

Introduction

Green Consumers or Environmental-Friendly Consumers are

those who consider the impact of manufacturing process and

consumption of environmental resources while making

purchase or participating in other market related activities;

and make their decisions accordingly.

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Similarly, in Iran, according to evidence, the public concern about

environmental issues has increased among consumers, and green

segments have emerged in markets.

Introduction..

Researchers have come to the conclusion that attitudes towards

environmental issues and environmental-friendly behaviors and factors

that encourage consumers to purchase green products are not the same

in all cultures.

Hence, due to the unique cultural norms and values of Iranian

citizens, it is necessary to conduct appropriate studies to

determine profile and characteristics of

IRANIAN GREEN CONSUMERS.

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The term 'green' has nothing to do with color, but the choice of name is

appropriate because green is a color that is often associated with nature.

GREEN PRODUCTS

Green products are considered kinder to the environment than non-

green goods, in one way or another.

• Energy efficient, durable and often have low maintenance requirements.

• Free of Ozone depleting chemicals, toxic compounds and don’t produce toxic by-products.

• Often made of recycled materials or content or from renewable and sustainable sources.

• Obtained from local manufacturers or resources.• Biodegradable or easily reused either in part or as a whole.

Green products are:

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What is the effective factors on consumers’ willingness to

buy green products that have a premium price compared

with similar products in market?

Research QuestionIn

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Value-Belief-Norm Theory

The VBN theory of pro-environmental behavior developed by Stern

(2000) is an extension of the Norm Activation Theory (NAT) of

Schwartz’s (1977).

The VBN theory assumes a hierarchical model where

individual value orientations directly influence beliefs, and

thereby attitudes and finally behavior.

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Conceptual ModelIn

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Methodology

The target population of this research is consumers in Yazd province

A convenience sampling method was used to select the respondents.

A total of 300 initial responses have been received. After eliminating

the confounding questionnaires, the number of final sample analyzed

was 252, resulting in a response rate of 84%.

A questionnaire was used to collect the required data. All

measures have been adopted from previous studies.

Structural Equation Modeling (SEM) has been used to test

the conceptual model.

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Results

Initial model results:

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Results..

Final model results:

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Results..

GFI AGFI CFI NFI RMSEA Fit Indices

1-3 GFI>0/9 AGFI>0/9 CFI>0/9 NFI>0/9 RMSEA<0/1 Recommended

1.93 0.96 0.92 0.91 0.92 0.058 Model fit

Final model fit:

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Results..

Path coefficients and hypothesis testing:

Hypothesis Parameter estimates Result Number t-value Standardized β Relationship

Supported H1 5.12** 0.21 Altruistic → NEP Supported H2 7.34** 0.32 Biospheric → NEP

Not Supported H3 1.02 0.08 Egoistic → NEP Supported H4 6.32** 0.25 NEP → AOC Supported H5 2.76** 0.19 AOC → AOR Supported H6 8.62** 0.36 AOR → PN Supported H7 4.65** 0.24 PN → Willingness to pay

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Conclusion

VBN theory can explain effective factors on Iranian consumers

willingness to pay the premium price of green products.

Altruistic and biospheric values have a positive significant effect on

consumers attitude toward environment.

consumers attitude toward environment can increase their awareness

about consequences and problems of environment. This increased

awareness leads to ascription of responsibility and then personal norm

toward preserving environment.

pro-environmental personal norm increases consumers’

willingness to buy green products even when they are premium

priced compared with similar products.

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Thanks for your attention

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