1. To study the level of awareness of consumers regarding green products.

2. To find various customer motives behind purchase of green products.

3. To study the effect of green marketing on behavior of consumers.
4. To study factors effecting consumer behavior towards green products.

Review of Literature

In order to get an insight and to gain proper understanding of the topic, a thorough review of the
work already done in the relevant field is a must. With this in mind, some of the available
literature has been reviewed.
Consumer Behaviour and related aspects
Lattin et al. (1987) examined the nature of dynamic consumer response to promotional
price discounts. The findings of the study suggested that increased exposure to discount pricing
raised consumers’ reference points but did not necessarily decreased the probability of brand
choice. It was observed the as expectations of the consumers increased, they were used to bought
from the category during the deal periods and avoided buying during periods in which the value
available in the category was low.
Lattin et al. (1988) examined the nature of dynamic consumer response to point-of-
purchase pricing and promotional activity. The findings of the study suggested that there were
significant reference effects of promotional activity on consumer response and for controlling
those promotional dynamics, the effects of reference price appeared to be non-significant.
Sriram and Forman (1993) showed that consumers place less value on products’
environmental performance in the case of purchasing high involvement products than in the case
of frequently purchased products.
Sultan (2002) in his study examined consumer behavior for the internet over time. The
study concluded that early adopters of on-line services for home use in the US were more
innovative than average. They considered technological products as fun to use but were not
necessarily familiar with technical details of new technologies and products. Over time,
consumer awareness, preference, and choice behavior related to Internet services continued to
evolve. Awareness of new technologies was very high among those initial adopters of on-line
services for the home. The research found that preference for on-line services, in terms of
willingness to pay, was positively related to ownership of high-tech products and negatively to
income and innovativeness. However, the amount of money actually spent on on-line services
was positively related to consumer innovativeness, income, and household size.
McCabe et al. (2003) in his study analysed the effect of examining actual products or
product descriptions on consumer preference regarding online shopping or retail shopping. It was
found that products with primarily material properties such as clothing and carpeting were
preferred to shop in environment which allowed physical inspection. It was further found that
there was no difference in preference across the two environments for products with primarily
geometric properties such as packed goods, for which vision was highly diagnostic.
Keen et al. (2004) investigated the structure for consumer preferences to buy product
through three retail formats: store, catalog, and internet. The study observed a shift in retailing
trend from traditional store based retailing to increased use of internet. It was also observed that
the most money spent by consumers was spent in retail stores, then catalogs and then finally the
internet. The study found that retail stores had greatest market share for the near future. The fear
that the internet will take over the retail arena seemed to be exaggerated. Research also observed
that there was an identifiable segment of customers that had preference for internet shopping.
Hirunyawipada et al. (2006) examined the perspective of consumer innovativeness and
perceived risk for high technology product adoption. The study found that cognitive and domain
specific innovativeness enhanced the actual adoption of new products, whereas sensory
innovativeness and perceived social and physical risks enhanced consumers’ propensity to
acquire new information about new products. On the other hand financial risks had a negative
impact on the propensity to acquire new information about new products. The study also
revealed that time, performance, psychological and network externalities risks showed no
significant impact on tendency to acquire new information about new products.
Anisimova (2007) in his paper examined two groups of corporate brand attributes:
corporate and marketing level. Corporate-level dimensions included corporate activities,
corporate associations, organizational values and corporate personality. Marketing level
dimensions included functional, emotional and symbolic brand benefits. Results revealed that
corporate values, corporate brand personality and functional consumer benefits were the most
critical and consistent predictors of both attitudinal and behavioural loyalty.
Maronick (2007) examined consumers’ perceptions of the terms of an extended warranty,
specifically the length of the warranty contract using a mall-intercept method to identify 101
consumers who purchased home electronics products in the past 2 years. The results showed that
majority of consumers misinterpreted retailer’s “4-year” extended warranty as providing four
additional years of coverage beyond the manufacturer’s warranty when in fact, the “4-year”
extended warranty included the manufacturer’s warranty and was actually providing 3 years of
extended protection. It was observed that reason behind this misinterpretation was negligence on
the part of consumer as the consumer was presented the extended warranty sales material, but
consumers used to spent very few moments reading the material and it was highly likely that
they might not studied a very small print disclosure that the warranty “includes the
manufacturer’s warranty”.
Spake et al. (2007) analysed the relationship between attitudes toward direct-to-consumer
advertising. The study showed that consumers were skeptical of DTC advertising and thought
that with this method of advertising enough information was not provided about those products.
Moon et al. (2008) investigated consumer purchase intentions toward personalized
products in an online selling situation. Results indicated that individualism was the only culture
dimension which had great significant effect on purchase intention, product type and
individualism by price interaction also had a significant effect, but price did not had any effect
on purchase intentions.
Pelsmacker et al. (2008) in his study examined, the knowledge, beliefs, attitude and
buying behavior of consumers with respect to fair trade issues. For this purpose four categories
of consumers were identified: value-conscious consumers, ascetic consumers, hedonic self
seekers and value skeptics. The results showed that the ascetic and to less extent value conscious
consumers had more positive attitude towards fair trade in general, fair-trade shops and fair trade
products. They were used to buy fair trade products more often and spent more money on fair
trade products. Hedonic self seekers had least positive attitude towards fair trade. The study also
showed that all groups had a negative perception of the quality and quantity of fair trade
information, and of price level of fair trade products.
 Cui et al. (2009) analysed consumers’ adoption of new technology products. The study
found that coping strategies had a significant influence on consumers’ product beliefs, which in
turn mediated the effects of coping strategies on consumers’ attitude toward adoption and
purchase intention of the new product.

Green Marketing and Effect of green marketing on Purchase

Barr and Gilg (2006) found from their survey of sustainable household activities in
Devon, UK, that green purchasing behaviour was the least popular activity alongside activities
such as recycling and habitual household activities. But their data showed that not surprisingly,
green consumers did consider environmental factors when purchasing products (a weekly
activity) but engaged more frequently in activities such as switching off lights and recycling
paper (a daily activity).
Baker et al. (2008) investigated if marketing and branding techniques could help establish
green brands and introduce greener patterns of consumption into contemporary lifestyles in the
current context where environmentally friendly products were increasingly available. The results
showed that there was a correlation between consumer confidence in the performance of green
products and their pro-environmental beliefs in general. The findings suggested that most
consumers could not easily identify greener products (apart from cleaning products) although
they would favour products manufactured by greener companies, and they did not find the
current product marketing particularly relevant or engaging. The paper suggested that the market
for greener products could be exploited more within consumer groups that have pro-
environmental values.
Finisterra do paco et al. (2008) revealed that the concern with environmental degradation
favoured the sprouting of a new segment of consumers: the green consumers. Such consumer
had been described as one who used to avoid products that were likely to endanger health, cause
significant damage to the environment during production, use or disposal, cause unnecessary
waste, and use materials derived from threatened species or environments. As firms recognised
the strategic importance of marketing in finding responses to green consumers’ “environmental
needs”, the green marketing started to became a prominent field of study. The study investigated
several variables related with the environmental aspects.
Schobesberger et al. (2008) revealed that in response to food scares related to high levels
of pesticide residues sometimes found on vegetables and fruits, consumers in Thailand
increasingly demanded ‘safe’ foods. This resulted in a number of initiatives and labels indicating
‘pesticide safe’ vegetables. However, the pesticide-residue problem proved enduring. This
opened a market opportunity for organic foods, which were produced entirely without using
synthetic chemicals. To examine consumer perception of organic foods in Thailand, a survey
was conducted in Bangkok. More than a third of the 848 respondents reported having purchased
organic vegetables or fruits in the past. The main reasons for purchasing organic products were
that consumers expected them to be healthier, that organic products were environmentally
friendly. The respondents, who bought organic vegetables were older, had higher education level
and a higher family income than those who had not bought them. The main barrier to increasing
the market share of organic vegetables was that consumers did not clearly differentiate between
the various ‘pesticide safe’ labels and the organic labels. Informing consumers about unique
characteristics of organic production methods, the strict inspection and required third party
certification might be a promising strategy to develop the market for organic vegetables in
Thailand’s urban centers.

Awareness and availability of green products

De Pelsmacker et al. (2005) identified reasons for less green consumption such as lack of
availability of green products, disbelief of green claims and lack of information.

Willingness to Pay

Lampe et al. (1995) examined next, key green marketing issues and activities, both in
Europe and the United States. It was found that not all consumers were strongly influenced by
green marketing. Segment of young people found to be more environmentally concerned.
Consumers, both in Europe and the United States, were willing to pay only slightly more for
green products, especially in tough economic times. Ultimately, green products would generate
the greatest sales advantage if their price point was close to similar to less environmentally
friendly products. It was also analysed that non-commercial sources of information such as
universities and TV, radio and newspaper news reports would also build consumer confidence on
the benefits of green products.
Govindasamy and Italia (1999) surveyed consumers at five grocery retail stores in New
Jersey in March 1997 to obtain estimates of WTP for organically grown fresh produce. Their
analysis showed that females with higher annual incomes, younger individuals, and those who
usually or always purchased organic produce were more likely to pay a premium. They also
concluded that the likelihood of paying a premium goes down as the number of individuals in the
household rises.
Vlosky et al. (1999) analysed US Consumers’ willingness to pay for environmentally
certified wood products. It was revealed that global industrialization and the subsequent
dwindling of many natural resources had become elements for product differentiation in
marketing. Environmental certification programs were increasingly being recognized as
significant market-based tools for linking manufacturing and consumer purchases. The research
examined the relationships between intrinsic environmental motivations and the willingness-to-
pay a premium for environmentally certified wood products. A conceptual model was proposed
that captured the effects of perceptions, awareness and price on consumer willingness to
purchase and pay a premium for environmentally certified forest products. The data indicated
that there were positive correlations between the willingness-to-pay and the independent
variables: environmental consciousness, certification involvement and perceived importance of
certification.
Chang & Li (2005) discussed the relationship between consumer’s WTP and perception
as well as confidence in green vegetables with a bivariate correlation. The result indicated that
consumer’s confidence in green vegetables attributed positively to his/her WTP. However, the
awareness of green foods did not mean good knowledge and fine perception.
Sammer & Wüstenhagen’s (2006) Swiss study showed that consumers presented with the
EC Energy label were willing to pay more for ‘A’ rated washing machines.
Batte et al. (2007) In the study conducted a study on six grocery stores of USA found that
in response to dramatically increasing adoption in consumer markets, the National Organic
Program (NOP) initiated novel labeling standards for food products in the US in 2002. This
program was a particularly relevant standardization effort for multi-ingredient processed foods.
Rather than a simple binary message (organic or not), gradations of organic content were now
codified. The article presented evidence of the impact of the NOP through analysis of data
collected in seven central Ohio, USA grocery stores. Results suggested that consumers were
willing to pay premium prices for organic foods, even those with less than 100% organic
ingredients. The magnitudes of WTP varied significantly among consumer groups, suggesting
that targeted marketing may be effective for organic merchandisers.
Hansla et al. (2008) conducted an experiment to examine psychological determinants of
attitude towards and willingness to pay for green electricity. The results of a mail survey of 855
Swedish household consumers showed that willingness to pay for green electricity increased
with a positive attitude towards green electricity and decreased with electricity costs. Attitude
towards green electricity was in turn related to awareness of consequences of environmental
problems for oneself, others, and the biosphere, concerns for these consequences, and self-
transcendent value types.

Profiling the Green Consumers

Schlegelmilch et al. (1996) revealed that traditional segmentation variables (socio-

demographics) and personality indicators were of limited use for characterizing the green
consumer. The study explored the extent to which variables, specific to environmental
consciousness, were better able to explain consumers’ pro-environmental purchasing behaviour.
Two conceptualizations of the purchasing domain were addressed, namely general green
purchasing behaviour and specific purchasing habits relating to five green product categories.
Two data sets were used in the analysis, namely marketing students and members of the United
Kingdom general public. Findings suggested that measures of environmental consciousness were
closely linked to environmentally-responsible purchasing behaviour, although the strength of the
relationships varied according to sample type, the conceptualization of the purchasing domain
and the particular product category at issue.
Straughan et al. (1999) examined the dynamic nature of ecologically conscious consumer
behavior. The study also provided a method of profiling and segmenting college students based
upon ecologically conscious consumer behavior. Findings indicated that, despite a significant
amount of past research attention, demographic criteria were not as useful a profiling method as
psychographic criteria. Consistent with past findings, the study indicated that perceived
consumer effectiveness (PCE) provided the greatest insight into ecologically conscious consumer
behavior. Further, the inclusion of altruism to the profile appeared to add significantly to past
efforts. Additional constructs examined suggested that environmental segmentation alternatives
were more stable than past profiles that relied primarily on demographic criteria.
Nyborg et al. (2006) revealed that ‘‘Green’’ consumers appeared to accept individual
responsibility for the provision of public goods. The propensity to take such responsibility might
depend on beliefs about others’ behavior, even for consumers motivated by internalized moral
norms, not by social sanctions. This effect could produce multiple equilibria with either high or
low demand for ‘‘green’’ products. Permanent increases in green consumption might be
achieved by imposing temporary taxes or subsidies, or through advertising that influenced beliefs
about others’ behavior or about external effects. If a tax was interpreted as taking responsibility
away from the individual, however, taxes could reduce the influence of moral motivation. It was
suggested that even a temporary tax set at a level that was strictly lower than the marginal social
benefit provided by the green product would be sufficient to move the economy towards full
adoption. Once the adoption rate had reached a certain threshold value, the tax or subsidy could
be removed without causing the green good to decline in market share.
Consumer Behaviour Report (2007) collected consumer data towards eco friendly
shopping behavior from a survey of 1,624 online shoppers conducted in September 2007. The
report found (i) 50 percent of online shoppers purchased eco friendly products because it reduced
the impact on future generations while 15 percent purchased eco friendly products to improve
personal health. (ii) 82 percent of respondents said that they were looking for help with eco
friendly product selection, online merchant availability and the best prices for eco friendly
products. (iii) 68 percent of online shoppers said that purchasing eco friendly products was
important while 35 percent said that it was extremely or very important to them. (iv) 74 percent
of surveyed respondents said that being a positive eco friendly example to others was important
to them. (v) 46 percent of online shoppers said that “energy efficient” was the most important
attribute when purchasing eco friendly appliances. (vi) 70 percent of online adults, including
parents and individuals looking at parenthood, said that the statement “I’m concerned about the
environment” described their attitude. (vii) The U.S. organic industry continued to expand,
growing 21.8 percent and reaching $17.8 billion in consumer sales in 2006.
Wheale & Hinton (2007) conducted a questionnaire survey in the UK and revealed that
amongst the population of green consumers there was a hierarchy of importance of ethical
drivers in the purchase decision-making process. The environment was rated as the most
important ethical driver during purchasing decisions followed by human rights then animal
rights/welfare issues. The findings revealed that some product groups were more strongly linked
to ethical issues (and bundles of issues) than others, with ‘food goods’ being most strongly
linked and ‘brown goods’ were least strongly linked.
Singh (2009) explored the extent of the relationship between the demography and
socially responsible behaviour of Indian consumers. It was found that urban respondents scored
high in all demographic categories in comparison with rural consumers. Gender-wise, the
behaviour was quite symmetrical in both the groups. Education-wise, inverse relationship was
noticeable between the SRCB-mean values and educational-level; it might be due to the
respondents' continued education. The inference was reinforced while analyzing the SRCB-
values across the age groups. Interestingly, younger ones particularly, the females were
demonstrating high scores on the SRCB-scale. Analyzing according to income-level revealed
significant difference only for urban consumers. The lower-income category scored high because
they were non-earning (students) or have just begun earning. The study suggested that green
marketers should focus on young consumers and more particularly the female population for
creating loyal segment and gaining competitive edge. The policy makers needed to promote
urbanization for sustainable living and creating awareness of clean-green living. Young Indians
were identified as being more promising and socially responsible than their elders.
Wang et al. (2009) revealed that issues of environmental protection became more and
more important. Consumers were increasingly concerned about how their behaviors affected the
earth. Therefore, with the emergence of a customer-oriented market, identifying consumers’
behaviors had become an important issue for businesses. Determining how to identify target
customers who were satisfied and willing to pay more, was an important issue. The study
discussed the different demands in green marketing and used a questionnaire to collect
customers’ personal information and their preference toward purchase of a green notebook
computer. The step-wise regression was used to confirm the suitable segmentation variables.
Behavior variables, psychological variables, geographic variables, demographic variables,
environmental knowledge, attitudes toward environmental protection and non-purchasing
environmental behaviors were used to profile customers. The ultimate purpose of the research
was to help firms target customers, set up proper marketing strategies to increase profits and
satisfy the customers’ demand for products having the least ecological impact. The results
concluded that the customers in the ‘‘Pragmatic group” were the target customers in the study.
They were willing to pay more for such a notebook computer. They were more highly educated,
blue-collar individuals. They had the highest level of willingness involving environmental
initiatives in each aspect mentioned. Business should pay more attention to the demand of the
target customers, that was, higher levels of specifications, to make more profits.
Welsch et al. (2009) investigated the determinants of pro-environmental consumption,
focusing on the role of reference groups and routine behavior. The study analysed the factors that
explain whether or not people had installed residential solar energy equipment or had subscribed
to green-electricity programs, and the factors that influenced the intensity of buying organic
food. In addition to demographic characteristics and environmental attitudes, the study
considered the following categories of determinants: economic and cognitive factors (income,
estimated price premium, level of information on environmentally-friendly goods); consumption
patterns of reference persons; own consumption patterns in the past. From a survey conducted in
the region of Hanover, Germany, it found the following: (1) Economic and cognitive factors
were significant covariates of all three kinds of pro-environmental consumption. Their influence
was greatest in the case of green electricity. (2) Consumption patterns of reference persons were
significant covariates of all three kinds of pro-environmental consumption. Their influence was
greatest in the case of organic food. (3) Longer the people had been consumers of these goods,
greater the intensity of buying organic food.

Environmental attitude and concern

Esther et al. (1998) revealed that the green movement in newly industrialized countries
was lag behind the West. While the green awareness had started to rise rapidly in some of the
countries, the ability of attitudes to predict behaviour for environmentally sensitive products was
questionable. A survey of 552 Hong Kong citizens was conducted to examine how consistent
consumers’ actions were with their attitudes towards seven environmentally sensitive products.
The results showed that consumers’ environmental concern was not reflected in their purchasing
behaviour. The paper suggested for more education and initiative from both the government and
businessmen to induce people to channel their attitudes into actions.
Laroche et al. (2001) revealed that concerns related to the environment were evident in
the increasingly ecologically conscious marketplace. Using various statistical analyses, the paper
investigated the demographic, psychological and behavioral profiles of consumers who were
willing to pay more for environmentally friendly products. It was found that this segment of
consumers were more likely to be females, married and with at least one child living at home.
They reported that today’s ecological problems were severe, that corporations did not act
responsibly toward the environment and that behaving in an ecologically favorable fashion was
important and not inconvenient. They placed a high importance on security and warm
relationships with others, and they often considered ecological issues when making a purchase.
Rowlands et al. (2003) analysed potential purchasers of green electricity. It was found
that Increasing concerns about the environment prompted some of them to consider green
electricity - the electricity that had been generated by more environmentally sustainable means
(for example, solar power or wind power). The study identified the potential purchaser of green
electricity. Drawing upon the literature on green product purchasers more generally, it was
proposed that those who would pay increasingly higher premiums for green electricity were
more likely to possess particular demographic characteristics, attitudinal characteristics and
socialization characteristics. Responses from a survey distributed in a major Canadian
metropolitan area were also examined. Attitudinal characteristics - specifically ecological
concern, liberalism and altruism - best identified the potential purchasers of green electricity.

Influence of Families and Children

Thompson and Kidwell (1998) in a study of conventional and organic produce purchases,
concluded that families with children were more likely to buy organic produce than those
without children.

Gap between Intention to buy and actual behaviour

Follows et al. (2000) tested a consumer model of environmentally responsible purchase

behaviour using covariance structural analysis. The model successfully predicted the purchase of
environmentally responsible and non-responsible product alternatives. A hierarchial relationship
from values to product specific attitudes to purchase intention to purchase behaviour was
confirmed. Individual consequences, which took the personal implications of consumption into
account, were found to be just as important in predicting intention as the environmental
consequences of a product. The study empirically tested a values typology as a basis to explain
attitude formation.
Do Paco et al. (2009) in his study collected data through a survey of Portuguese
consumers aged over 18. The results of the study showed that there were consumers who bought
green products and that certain environmental and demographic variables were significant for
differentiating between the “greener” segment and the other segments. It was found that the
Portuguese, despite their support for policies designed to improve the environment, did not
translate their concerns into actions: they rarely joined environmentalist associations and they did
not take part in policy making. Their participation was often based on protecting the environment
by saving electricity and water, which showed that these concerns might be more closely related
with economic factors than with an environmental consciousness. It could be concluded that
Portuguese consumers understood the challenges currently placed before the environment, and
that they were aware of the existence of environmental problems, even though their concerns
were not always translated into environmentally friendly behaviour. It was also noted that there
were consumers who were prepared to base their buying decisions on purchasing products that
did not harm the environment. In fact, it was seen that there was a segment of “greener”
consumers in the sample which was different significantly in some aspects from the other market
segments.

Product Choice criteria

Simonson et al. (2000) in his study revealed that information presentation format and
inferences about missing values could not account for the observed effects of missing
information on consumer choice. The study also showed that purchase decision of buyers who
considered contribute importance prior to making a choice and those with the need for cognition
were less susceptible to be influenced by missing information. The findings also indicated that
choosing from sets with missing information could impact buyer tastes and purchase decisions
subsequently.
Blair et al. (2002) examined the effects of shopping information on consumers’ responses
to comparative price claims in retail advertisements. The results of the study showed that (1) the
opportunity to shop across various retail stores reduced the effect of comparative price claims on
consumers’ estimates of lowest price for a particular item, but had less impact on their estimates
of store’s regular price, (2) access to advertising from competing retailers had the same pattern of
effects, (3) across exposure to a series of ad claims, those effects generalized from estimates of
specific item prices to judgment of the store’s general pricing. It was also found that for
shopping of branded goods, the comparative price claims might prove counterproductive for
retail advertisers by leading consumers to believe that the store’s regular prices were high
without convincing them that its sale prices were low.
Noblet et al. (2006) in his study used a statewide sample of Maine registered vehicle
owners and examined factors that affect their assessments of ecolabeled conventionally fueled
passenger vehicles. The study focused on developing an empirical and theoretical framework
with which to model vehicle choice decisions under eco-labeled conditions. Particular attention
was paid to how eco-information may affect the two-stage vehicle purchase process. The study
examined the role of personal characteristics such as perceived effectiveness of consumer
purchase decisions and perceptions of the eco-labeled products as factors in the vehicle purchase
decision. It was found that environmental attributes of an eco-labeled passenger vehicle were
significant in the purchase decision. The eco-information was considered in the vehicle purchase
decision, but it was generally not considered at the class-level decision.
Rios et al. (2006) determined the attitudes towards brand with environmental association.
It was found that there was a positive effect of environmental associations on brand attitudes,
though this effect was smaller than other functional attributes. Study also demonstrated that
environmental certifications strengthened consumers’ believes in the product’s ecological
performance.
Tilikidou (2006) in his study examined pro-environmental purchasing behaviour (PPB)
and how it was influenced by demographics, environmental knowledge (a factor rather neglected
so far) and attitudes (environmental unconcern). PPB was found to be adopted at a rather low
level; less than 20% of Greeks might be characterized as relatively frequent pro-environmental
purchasers. The higher scores were obtained with reference to energy and water conservation,
reduction of overall consumption and avoidance of products containing genetically modified
organisms. The consumers also declared that they were used to choose the eco-friendly
alternative of a product when there was no significant price difference. The results indicated that
professionals, 35-55 years old, holding a graduate and/or a postgraduate degree and with an
annual income of 25-30 thousand Euros were more engaged in PPB in Greece. PPB was found to
be correlated positively and moderately with environmental knowledge and negatively and
moderately with environmental unconcern.
Manaktola et al. (2007) explored the factors which influenced the consumer attitude and
behaviour towards green practices in the lodging industry in India and also explored the
consumers' intentions to pay for such practices. Findings revealed that the consumers using hotel
services were conscious about environmentally friendly practices in India. They patronised the
hotels which adapted green practices though not compromising on service quality. The
consumers would prefer to use lodging that followed those practices but were not willing to pay
extra for those services. Indian hotels had the competitive advantage over similar products if they
followed green practices. The study suggested that the hotels would have to invest in
environmentally friendly practices and look at long-term gains. The government needed to
acknowledge and institutionalise the practice by instituting rewards and offering benefits in
taxes.
Rokka et al. (2008) examined consumer environmental choice was studied by analysing
the relative importance of green packaging when comapared with other relevant product
attributes. The study was based on an analysis of preferences for functional drink products of a
sample of 330 consumers using these products. Results indicated that consumers were different
in their preferences for packaging, brand, price and convenience of use of daily products. It was
also found that various distinctive consumer segments could be identified on the market.
Contrary to several previous studies, the study found that the largest consumer segment, one-
third of consumers, favoured environmentally labelled packaging as the most important criteria
in their choice. The findings emphasized on the increased importance of ethical and
environmental dimension in product choices. The study also proposed that the attention in
environmental consumer research should be shifted from general attitude studies towards the
study of actual product choices.
Teisl et al. (2008) examined how the characteristics of the individual and the information
simultaneously influenced an information program’s success. The paper studied the potential
effects of providing eco-information in the private market for passenger vehicles and light-duty
trucks sold in the United States. The results pointed out the importance of well-designed labeling
practices as they significantly affected individuals’ perceptions of the eco-friendliness of
products. Further, the importance of underlying psychological factors; and individuals’ priorities
of the product and of the environmental problem suggested a strong role for the long-run
provision of eco-information, especially in cases where individuals held incorrect perceptions.
Kempen et al. (2009) investigated that whether households in Guatemala were willing to
surrender a small material gain in order to buy legal rather than illegal firewood. Given the
ineffectiveness of command-and-control policies to curb the problem of illegal logging in
Guatemala, the experiment assessed the potential viability of market-oriented solutions. Local
consumers in developing countries were generally believed to be too poor to pay a premium for
green/ethical products. Therefore, little information had been gathered on willingness-to-pay
(WTP) for such products and its determinants in non-affluent consumer markets. While the
experiment on firewood consumption in central Guatemala only implied a weak and indirect test
of WTP for green products, the results indicated that it is premature, if not unwarranted, to
assume that the poor were not ready to make pro-ethical choices in the marketplace. Moreover, it
was found that information on the legal procedures for firewood extraction significantly affected
consumer choice between legal and illegal firewood.
Shen et al. (2009) conducted a hypothetical choice experiment in Shanghai, China, to
examine whether the China Energy Efficiency Label influenced consumers’ choices of air
conditioners and refrigerators. The results of the study suggested that consumers in Shanghai
were well aware of the China Energy Efficiency Label and tended to pay more attention to
products with such labels. In addition, air conditioners and refrigerators affixed with a
hypothetical label that indicated saving in electricity bills compared with a standard model
received significant preferences, which suggested that the more information manufacturers
provide, the more their products would be preferred by consumers. Finally, weighted by class
probability, the willingness to pay values for more energy efficient refrigerators were higher than
those for more energy efficient air conditioners, implying that Shanghai consumers had greater
incentive to pay more for appliances they use more frequently.

Gender and green Consumer behavior

Usui (2001) examined the effect of individual values on green consumer behaviour. The
study revealed that the direct reasons for green consumer behaviour were varied depending on
economy and health concerns. The results of the study showed that the determinants of green
consumer behaviour were also different with regard to values. It was concluded that values
played a significant roles in determining such behaviours and behaviour used to differ by gender.
Female consumers were found to be more environment oriented.
Han et al. (2009) examined hotel customers’ eco-friendly decision-making processes.
Specifically, the study tested the relationships among attitude toward green behaviors (ATGB),
overall image (OI), visit intention (VI), word-of-mouth intention (WOMI), and willingness to
pay more (WPM) by considering the effects of gender and age in a green hotel context. The
results of structural equation analyses showed that OI is a positive function of ATGB and that OI
significantly affected VI, WOMI, and WPM. Additionally, the findings from a structural
modeling comparison revealed that OI completely mediated the effect of ATGB on components
of behavioral intentions. Subsequent tests for metric invariances demonstrated that the
relationships among study variables were generally stronger among females and high age groups.
However, only the paths from OI to VI, WOMI, and WPM in the gender group and from OI to
WPM in the age group were statistically significant.

Tranter (2009) revealed that in recent years, in overall value, the EU had become a net
importer of organic food to supply increasing demand. Financial support was given for farmers
during the conversion period to help expand organic production as this was seen as a barrier to
conversion. Meanwhile, farmers had been marketing products produced in this conversion period
and labeled as such, the extent to which was described here for the UK, Portugal, Denmark,
Ireland and Italy. Consumers’ attitudes towards and willingness-to-pay for, conversion-grade
food in those countries was examined. It was found that consumers would be prepared to pay a
premium for conversion-grade produce of around half the premium for organic produce, with
vegetables attracting a higher premium than meat. Consumers primarily purchased organic
products for food safety and health reasons. Study showed that conversion-grade products were
perceived as little better than conventional. Finally, the potential of policies for marketing
conversion-grade products to encourage more conversion was examined, together with barriers
to achieving this. It was concluded that barriers to marketing such products, particularly from
retailers, would be formidable.