Consumer Behavior and Willingness to Pay for Green Products in Faisalabad

Abstract

Objective: The goal of this study was to create and evaluate a conceptual framework for better understanding the elements that influence customers' willingness to pay and actual purchase behavior regarding green products. The specific objective was to evaluate the elements that affect a consumer's willingness to pay for green goods in Faisalabad.

Research Gap:

While global research on green consumer behavior and willingness to pay is extensive, there is a significant lack of empirical studies in developing countries like Pakistan. Moreover, no prior study has focused on Faisalabad—a rapidly growing industrial city with unique environmental challenges.

Design/Methodology/Approach: The study employed a quantitative approach through a structured questionnaire administered to 250 residents of Faisalabad using multistage sampling and OLS (ordinary least square) regression and logistic regression have been used for analysis of data.

The Main Findings: Results show that people with older age, higher education and higher income have higher willingness to pay for the green products. Trust on commercial entities, environmental ethics and health consciousness are other major factors that determine consumer’s willingness to buy the green products.

Theoretical / Practical Implications of the Findings: The findings contribute theoretically by validating the role of psychological variables especially green trust and environmental ethics in predicting environmentally responsible consumption. Practically, the results highlight the importance of targeting educated and higher-income groups in green marketing campaigns. Policymakers can also benefit from insights suggesting consumer support for environmental taxation, particularly in urban areas, which can guide environmental regulation and awareness programs.

Originality/Value: This study is the first of its kind conducted in Faisalabad, Pakistan, providing original empirical evidence on consumer behavior towards green products in a developing economy.