1. What do consumers value more in green purchasing? Assessing the sustainability practices from demand side of business.
- Author
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Shao, Jing and Ünal, Enes
- Subjects
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RENEWABLE energy sources , *CLEAN energy , *BUSINESS enterprises , *SUSTAINABLE development , *CONSUMER behavior , *STRUCTURAL equation modeling - Abstract
Abstract Consumers have been recognized as critical enablers of sustainable development as consumption behavior can also shape the way firms do business. Accordingly, many product sustainability indicators have been developed for consumers, yet which attributes the consumers value more in green purchasing remains unknown. By developing a novel scale of environmental and social practices, this research aims to analyze which sustainability information attributes of products are prioritized by consumers and how these attributes drive consumers' willingness to pay price premium. Given its significance for both economy and sustainable development, the Electric Vehicle Industry has been chosen for analysis with an online survey of 582 consumers. Through the structural equation modeling (SEM) technique, the results indicate that environmental impact information has significant influence on green purchasing while social impact does not. This finding contradicts the previous literature that posited that consumers scale products' social impact attributes as a priority. This means consumers are aware of the importance of a product's social sustainability performance, but such information does not contribute to their willingness to pay price premium. The scale of environmental and social attributes suggested in this research can be applied to other industries by guiding manufacturers to design business activities. Highlights • This study examines which sustainability information attributes of products are prioritized by consumers based on a survey. • This study analyzes how these attributes drive consumers' willingness to pay price premium (in the case of EVs). • The research considers not only the environmental impact but also the social impact of a product for consumers. • Environmental impact has been found to be critical for driving consumers' willingness to pay price premium. • Despite being aware, consumers do not intend to pay price premium for social impact of a product. [ABSTRACT FROM AUTHOR]
- Published
- 2019
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