Modelling the predictors of consumers’ willingness to pay premium price for sustainable products

Abstract

Purpose The purpose of this paper is to increase existing knowledge of consumers’ sustainable products via converging and testing social identity and value-belief-norm theory used in sustainable behaviour literature. More specifically, the present paper incorporated consumers’ orientation towards a lifestyle of health and sustainability (COLOHAS), attitude towards sustainable products’ (ATSP’) purchase, perceived consumer effectiveness and perceived knowledge about sustainability issues as a conceptual framework to understand comprehensively consumers’ willingness to pay premium price (WPPP) for sustainable products. Design/methodology/approach The data were gathered through a survey of 850 customers residing at Delhi-NCR and buying sustainable products. Data were analysed using the structural equation modelling approach. Findings The results show that perceived consumer effectiveness has a greater descriptive value on their WPPP than do their ATSP’s purchase and perceived knowledge about sustainability issues. Additionally, both dimensions (health consciousness and value orientation towards sustainability) of COLOHAS have been found to have a significant and positive influence on consumer ATSP. Research limitations/implications The empirical results offer managers with better insights on how COLOHAS, perceived effectiveness and perceived knowledge about sustainability issues influences their WPPP for sustainable products. Originality/value This study adds to the body of literature by emphasizing those cognitive processes that influence the customers’ WPPP for sustainable products. Therefore, this paper presents important information to the managers and marketers about the sustainability aspects.