Consumers pay more for green products when they perceive personal connection and good value

Suggested audience: Corporate citizenship professionals, top leaders, sales and marketing departments, supply chain professionals

Takeaway: Consumer purchase satisfaction, willingness to pay a premium price, and purchase frequency of environmentally friendly products all increase when they perceive personal responsibility and value for the money.

Researchers analyzed responses to a questionnaire completed by more than 700 consumers who had purchased environmentally friendly products to determine which factors influence purchase satisfaction, willingness to pay a premium price for green products, and frequency of green product purchase.

Key findings:

• Feelings of personal obligation to adopt environmentally friendly behavior and value-for-money are the best predictors of purchase satisfaction, willingness to pay a premium price, and frequency of purchase.
• Purchase satisfaction is the strongest predictor of purchase frequency and explains the effects of personal norms and value-for-money.