Philippine E-Journals

Determinants of Purchase Decisions and Consumers’ Willingness to Pay for Green Products

Lisa s. Salvador

Discipline: Social Science

 

Abstract:

The purpose of the study was to investigate the influence of consumers buying decisions and willingness to pay for green products. Five variables were examined for the determinants, and three questions were considered for the willingness to pay for green products. Data were collected through questionnaires. Utilizing stratified sampling technique, the researcher considered 310 respondents. The study revealed a low to moderate influence of personal , social , economic, psychological factors and product attributes on consumers purchase decision This means specific items are influential to one demographic but not to another. Eighty four percent of the total participants in the study are willing to pay for green products, and from those who are willing to pay, 39% perceived they have the willingness and ability to pay up to 5% more of the product price. Statistical analysis revealed a significant difference between income groups and willingness to pay while psychological and economic determinant were found to be significantly related to willingness to pay for green products. This means affordability, income adequacy, motivations and environmental concerns are positively linked to willingness to pay. This study added to the literature of green consumer behavior and provided a consumers’ viewpoint to aid in the development of marketing strategies.