A Study of Consumer Paying Intention for Eco-Friendly Products with Special Reference to Fast Moving Consumer Goods

Abstract

The purpose behind this in-attendance piece of work is to answer the question that in a developing country, India, whether the consumers are willing to pay a premium price for eco-friendly products with special reference to FMCG (Fast Moving Consumer Goods). The study also attempts to figure out demographic pattern of purchase intention for FMCG. In developed countries it has already been proved that people have health and environment concerns, and they have the intention to pay a premium price for eco-friendly products. What is new with the study is that an attempt has been made to find out whether people even in a developing country want to buy eco-friendly products. The study consists of Delhi-NCR of India. Study outcomes are based on 384 respondents. Convenience sampling approach has been adopted. The strength of relationship between constructs has been analysed using Structural Equation Modelling. Analysis has been carried out using AMOS 20 and SPSS 22. The study concludes that males, youngsters and consumers having high qualifications are more interested in eco-friendly products. This research reveals that a few interrelated factors predominantly steer consumers' intentions to pay a premium for green items in the fast-moving consumer goods sector. Two of the most potent influences are the opinion of friends and family (what we term "reference group involvement") and the degree of environmental concern a consumer possesses (which varies quite a lot from person to person). Both factors are strongly associated with "green knowledge"—that is, knowledge about the environmental impacts of consumer goods and the degree to which something is "eco-friendly." The realism of this study could be a driving force for marketers, policy makers and environmental advocates to design their strategies for eco-friendly products in FMCG sector.