Pro-environmental behaviour, locus of control and willingness to pay for environmental friendly products

Abstract

Marketers have realized the importance of assessing consumers’ willingness to pay (WTP) before introducing green products across different target audience. The purpose of this paper is to examine the relative influence of consumers’ pro-environmental behaviours (PEBs) and environmental locus of control (ELOC) on their WTP for green products. The study sample consisted of 256 Indian consumers which were recruited with the help of convenience sampling. A structured questionnaire was administered with scales that were well established and that have been used in previous research. Data were analysed with the help of CFA and structural equation modelling to test the relationship of ELOC and PEB anon WTP. Second, clustering respondents according to their PEB and ELOC has been done to find its differential effect on WTP with the help of multivariate analysis of variance (MANOVA). Findings of the study highlight that WTP for green products is significantly predicted by two variables which are in following order: PEB and ELOC. Results of cluster analysis and MANOVA revealed that WTP differ significantly with the level of intensity of ELOC and PEB among Indian consumers. It advances the body of knowledge centred on the interplay of the PEB and ELOC to WTP for green products. Additional work is clearly required to consider the wide range of potentially relevant variables like brand image, prices, advertisements and product quality that ensures the generalizability of findings. The hypothesis framed, tested and inferences made can form a basis of extremely valued toolkit for those green marketers who take caution when planning their marketing and communications strategies to stimulate the WTP by conveying a reason and motivation to act environmentally. In this study, an understanding of WTP for green products is developed. The much required knowledge gap in terms of interplay of ELOC and PEB on WTP has been filled with the help of the present study. It has been identified that those consumer groups who displays higher PEB and ELOC forms the primary target audience for green product marketer.