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Green products have usually been more costly to manufacture than conventional products, and thus, they are simply more expensive for consumers to
purchase D‟Souza et al., 2006; Okada and Mais, 2010; Royne et al., 2011; Sonderskov and Daugbjerg, 2011. Hence, Chen and Chang, 2012 suggested that
companies should develop products with both green features and high-value attributes to attract consumers. They further argued that increasing consumer
perceived value about green products may ease customer skepticism about green products and enhance consumer purchase intention.
2.5 Willingness to Pay More
Generally, green products will be priced higher than the conventional products due to the higher cost incurred in the processes, materials and to certain
extend the cost involve in getting a certified eco-label on the products. Price is always thought as the determinant factor in making purchasing decision. Consumers
were willing to pay for premium price on products that carry certification whilst paying lesser for a green product that is self-declared by the company Barnard and
Mitra, 2010.
The perceived relative advantage for example quality and functional performance of green products over the non-green is likely to influence consumer
acceptance, Rogers 1983. The relative advantage of green alternatives would have to be weighed against their prices and this cost-benefit relationship is even more
complicated when the prices of green products reflect other costs in addition to the money costs. These include opportunity costs, energy costs and psychic costs. If the
major benefits of green products are perceived to be higher than the cost, then consumers will be motivated to purchase these products even if they are priced
somewhat higher than non-green substitutes Kotler and Zaltman, 1971.
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In short, the price sensitive green consumers are defined as those customers that are aware of the risks of the non-green products that will pose to the
environment, but they are inherently price sensitive customers. This group of consumers tends not willing to pay more for environmentally friendly products
D’Souza, 2004. Consumers’ perception about green product may be that they are more expensive in comparison to the alternative product.
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2.6 Theoretical Framework
Independent variable Dependent variable
Figure 2.2: Research framework of factor of customer purchase intention on green product
Green packaging -
Perspective on the packaging
Eco product label
-eco label on the packaging product
Factor of customer purchase intention
on green product
Green advertising
-Impact of green advertising
Green product value -
quality of green product
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2.7 Hypothesis of the Study
