Consumers' purchasing decisions regarding environmentally friendly products: An empirical analysis of German consumers

Abstract

Research in the area of environmentally friendly purchasing behavior reports inconsistent findings. It is also unclear which factors determine real buying behavior. Therefore, the present study develops a model which identifies major factors forming self-reported purchasing behavior (SRB). A structural equation approach is used to integrate these measures and to test if they are able to predict actual purchasing behavior. Data was obtained from a nationwide panel (n=1760) and included survey data and retail scanner data for seven different product categories in the sector of goods for daily needs. Results show that consumers care for the environment and mirror environmental attitudes in their purchasing behavior (self-reported). Especially norms and willingness to pay are strong predictors of SRB. However, SRB is not transferred to actual purchasing behavior. Therefore, the findings corroborate the gap between stated and actual behavior. Implications for marketing are derived to encourage consumers to purchase environmentally friendly products. In the end, this not only produces benefits for the environment, but also creates opportunities for businesses.

Introduction

Environmentally friendly or “green” buying behavior is one of the domains in which consumers are able to transfer their environmental concerns into corresponding actions. Green behavior reflects actions that are carried out with the aim of optimizing the environmental consequences to meet the needs of current and future generations. Green consumers and their buying behavior are well examined fields of research (for a discussion see Peattie (2001)). Buying organic products is the most popular action to reduce an individual's environmental impact (Isenhour, 2010).

Markets for green products such as organic produce are steadily growing (Bund ökologischer Landwirtschaft (BÖLW), 2016, U.S. Department of Agriculture Economic Research Service, 2014). This development not only produces benefits for the environment, but also creates opportunities for businesses which engage in this growing niche market. Research found that companies and retailers which implement green strategies achieve higher profitability and market shares (Menguc and Ozanne, 2005), greater levels of employee commitment (Maignan and Ferrell, 2001), increased customer satisfaction (Lombart and Louis, 2014, Luo and Bhattacharya, 2006) and a more positive image (Lavorata, 2014). However, findings about the relationship between consumers’ attitudes and environmentally friendly behavior are still inconsistent. It is also unclear which factors determine real buying behavior. Most studies that analyze green purchasing behavior either focus on behavioral intention as a proxy for behavior (Auger et al., 2008, Lu et al., 2015, Schuitema and Groot, 2015) or rely on self-reported survey data (Follows and Jobber, 2000). Although some studies analyze real purchasing behavior, they only focus on attitude and its predecessors as a predictor of behavior (Hauser et al., 2013, Tarkiainen and Sundqvist, 2009).

The present study focuses on consumers' purchasing decisions with reference to environmentally-friendly products. In contrast to prior research in this field, the study takes into account more predictors than just attitude. The conceptualized model also integrates personal norms and willingness to pay (WTP) as further promising factors which might explain behavior. Hence, the relative importance and the respective structure of each single factor can be revealed. The model also contrasts measures of stated attitudes and behavior with measures of actual behavior. Thus, the model tests if these factors are able to predict actual green purchasing behavior. In sum, the study contributes to the understanding of green purchasing behavior. Main drivers of green purchasing behavior can be identified while simultaneously modeling the potential gaps between (a) attitude and behavior and (b) self-reported and actual behavior. The results of the study provide a better understanding of self-reported and actual purchasing behavior in seven different product categories. Thus, the present study responds to the call for more research at the product category level (Padel and Foster, 2005) and even expands research to further product categories beyond organic food.