The Influence of Demographic Factors and Values on the Willingness to Pay More for Green Products

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"THE INFLUENCE OF DEMOGRAPHIC FACTORS AND VALUES ON THE CONSUMERS’ WILLINGNESS TO PAY MORE FOR GREEN PRODUCTS”

I.INTRODUCTION 1.1. Research Background Nowadays, people have become more aware of their environment. They try to slow down the process of global warming in many different ways. One of the efforts to slow down the process of global warming is that now people try to create, produce, and market the environmental-friendly products or, also known as, green products. People who pay attention to green products are called green consumers. According to Rodriguez and Ibeas (2006), “Green consumers” are those who care about the environmental attributes, and are willing to pay a premium for products manufactured in environmental-friendly
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2. Do consumers’ values (individualism or collectivism and security or fun/enjoyment) influence the consumers’ willingness to pay more for green products?

1.3. Problem Areas This study focuses to know the relation between demographics factors with the consumers’ willingness to pay more for green products and the influence of values (individualism or collectivism and security or fun/enjoyment) towards the consumers’ willingness to pay more for green products. The respondents of this research are people from any demographics background living in Daerah Istimewa Yogyakarta and who are

willing to fill in the questionnaires. And the research questionnaires are distributed only in Daerah Istimewa Yogyakarta.

II.HYPOTHESIS DEVELOPMENT 2.1. Hypotheses Development Part 1. Hypotheses related to Demographic Factors H1. Consumers’ gender is related to the consumers’ willingness to pay more for green products. H2. Consumers’ age is related to the consumers’ willingness to pay more for green products. H3. Consumers’ level of education is related to the consumers’ willingness to pay more for green products. H4. Consumers’ income is related the consumers’ willingness to pay more for green products H5. Consumers’ employment status is related to the consumers’ willingness to pay more for green products. H6. Consumers’ house ownership is related to the consumers’ willingness to pay more for green products. H7. Consumers’ marital status is related to the

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