Assessing Green Consumer Behaviour: The Impact Of Premium Pricing On Eco-Friendly Product Adoption

Abstract

With the world's population growing, we are facing many problems that affect not just the world but also individuals' health. As consumers in today's market, we want something eco-friendly and yet pocket friendly. However, despite this psychology, how is a consumer ready to pay a premium price?

This research aims to explore how green consumers perceive and respond to the premium pricing of eco-friendly products. By analysing existing research papers, examine factors influencing purchasing decisions, including environmental awareness, perceived value, and willingness to pay a higher price. A qualitative methodology was adopted, relying on primary and secondary data collected from various scholarly sources and customer responses. The findings suggest that while eco-conscious consumers are willing to pay a premium for sustainable products, their decision is influenced by trust in the brand, product quality, the theory of planned behaviour, and the marketing strategies of green companies. Additionally, consumers show a higher inclination toward premium eco-friendly products when they perceive tangible benefits, such as durability or health advantages. The study highlights the need for businesses to enhance transparency and communicate the long-term benefits of sustainability to justify premium pricing. In conclusion, while green consumers support sustainability, their willingness to pay a premium depends on multiple factors, making effective communication and value demonstration essential for success