Journal of Cleaner Production 95 (2015) 332e340

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Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro

Leveraging factors for sustained green consumption behavior based on

consumption value perceptions: testing the structural model
Aindrila Biswas*, Mousumi Roy
Department of Management Studies, National Institute of Technology, Durgapur 713209, India

a r t i c l e i n f o a b s t r a c t

Article history: Changing lifestyle and consumption pattern being the aftermath of growth and urbanization, is putting a
Received 7 April 2014 strain on environment and sustainable development. The consumption value perceptions are identified
Received in revised form in the study as the drivers of sustained green product consumption and intention to pay the green price
3 November 2014
premium using the theory of consumption values. These value perceptions are certain parameters
Accepted 16 February 2015
measuring consumer utilities along multiple value dimensions impacting choice behavior. Environ-
Available online 4 March 2015
mental attitude, contextual factors and consumer innovativeness were included as the first-order con-
structs. Data was collected through survey based method using structured questionnaires. Structural
Keywords:
Consumption values
equation modeling was applied for testing the hypothesized model. Results confirmed consumers' price
Environmental attitude and knowledge perceptions to be the major determinants of the behavioral outcome of sustained green
Consumer innovativeness consumption and behavioral intention to pay the green price premium is the outcome of sustained green
Contextual factors consumption. Implications of the research were discussed.
Behavioral intention © 2015 Elsevier Ltd. All rights reserved.
Willingness to pay

1. Introduction The past two decades have witnessed unprecedented research

on various facets of green consumption behavior. Consumer
Framing a path for sustainable development can be fostered research recognizes that consumers' perception about
through effective changes in production processes and willingness environment-friendly products in the form of price consideration
to adapt to environmentally responsible consumption practices in of products, urge to seek product information, want of social
the upcoming decades. Unsustainable production and consumption recognition, influence of situational variables; may have strong
practices including inexpedient resource use act as significant influence on green product consumption (Hirschman, 1980; Bei and
contributors to the environmental crisis. Conceptualization and Simpson, 1995; Straughan and Roberts, 1999; Laroche et al., 2001).
research on transitions to a sustainable production and consump- These consumption value perceptions are certain parameters
tion has emerged as a new global challenge. The Global Research measuring consumer utilities along multiple dimensions such as
Forum on Sustainable Production and Consumption (GRP-SPaC) value-for-money, social value, conditional and epistemic value
formed as a joint initiative of various countries across the globe for acting as the basis for the development of their choice behavior.
bringing together organizations and individuals devoted towards To better understand the link between environmental behav-
the research and applications in the transition towards sustainable ioral parameters, consumption values and behavioral intentions
production/consumption practices (Vergragt et al., 2014). Fulfill- towards green product consumption it is hence crucial to design
ment of needs by consumption of green or eco-friendly products credible models for consumer's response to environment-friendly
which are produced without toxic chemicals from recyclable or bio- stimuli. Through an empirically grounded consumption value
degradable materials, have environment-friendly packaging and model, we studied the influence of environmental attitude,
with low detrimental environmental impact at all stages of its life- contextual factors and consumer innovativeness on perceived
cycle with long term goal of natural environment preservation consumption values. In this paper, the effect of perceived con-
(OECD, 2009) is termed as green consumption. sumption values on behavioral intention to sustained green prod-
uct consumption and willingness to pay on a virtual sample of
Indian consumers has been tested. The remaining paper has been
organized as; Section 2 defines the model and hypotheses deduced
* Corresponding author.
followed by empirical data and research design in Section 3. Section
E-mail address: baindrila18@gmail.com (A. Biswas).

http://dx.doi.org/10.1016/j.jclepro.2015.02.042
0959-6526/© 2015 Elsevier Ltd. All rights reserved.
 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340 333

4 presents the model calibration and the resultant outcomes. green consumption decision. Assuming consumers as value opti-
Finally, Section 5 discusses the derived findings and Section 6 mizers, then higher the value of green products, the stronger the
presents the limitations and implications. consumption intention will be.
This study considers environmental attitude, contextual factors
2. Theoretical context and research propositions and consumer innovativeness as the explanatory variables in
increasing consumers' perceived value of green product con-
2.1. Influence of consumption values on consumer choice behavior: sumption through the development of a perceived value scale to
theoretical background assess the behavioral intention to sustained green product con-
sumption and willingness-to-pay.
This section addresses the theoretical perspectives on consumer
choice regarding environmental friendly products and postulates 2.1.1. Value-for-Money
hypotheses regarding such purchase decisions. Various models ‘Value-for-Money’ is measured by consumers' perception about
have been developed to explain sustainable consumption behavior the product performance with respect to price. It is assessed as the
(or green choice behavior (Young et al., 2010) and pro- primary driver of consumer choice behavior with regard to green
environmental behavior (Dietz et al., 1998)). The Theory of product purchase decision (Sheth et al., 1991; Bei and Simpson,
Reasoned Action (Fishbein and Ajzen, 1975) and Theory of Planned 1995; Biswas and Roy, 2015). ‘Value-for-Money’ for green prod-
Behavior (stemming from the Theory of Reasoned Action) (Ajzen, ucts is the degree of fulfillment of consumer need by overall
1991) have been widely applied in explaining environmental be- assessment of consumers' perceived net utility from green product
haviors based on the attitudes and subjective norms, mediated by consumption based on their perception about the price concern of
behavioral intentions with perceived behavioral control being green products. On the contrary, for selection of high-priced
included in the theoretical frame for Theory of Planned Behavior. products other factors exclusive of price are also found to be
The Theory of Planned Behavior have been applied for prognosti- influential (Lin and Huang, 2012). Beverage consumers in Germany
cating various facets of environmental behaviors such as food perceive high value-for-money for products with environmentally
consumption (Vermeir and Verbeke, 2008), household recycling compatible packaging (Van et al., 2009) whereas higher income
(Kaiser and Gutscher, 2003), general pro-environmental behavior group of Taiwanese consumers having high perceived value-for-
(Kaiser et al., 1996) and more. Norm-Activation-Model (NAM) and money about green products, were willing to pay the green price
Value-Belief-Norm (VBN) theory are other theories applied in premium (Tsay, 2010). Consumers' extreme price sensitivity or
explaining environmental behaviors and citizenship (Stern et al., weak perception about green products' price exhibits lack of
1999). The Social Practices Approach, a theory where social prac- environmental attitude and responsibility (Malhotra and
tices refer to a domain of daily life has been applied to engender Maheshwari, 2011). The quantum of consumers taking environ-
sustainability in daily life (Spaargaren, 2003; Shove and Walker, mentally responsive measures having a positive perception about
2010). However, the theoretical underpinnings for our hypotheses the price of green products with the exhibition of the intention to
are drawn from the theory of consumption values that recognizes pay the green price premium in the backdrop of developed nations,
importance of consumption values in prognosticating consumer have witnessed substantive augmentation (Laroche et al., 2001;
choice behavior. Sheth et al. (1991) applied this theory on con- Eriksson, 2004; Lung, 2010).
sumers' buying decisions, product decisions and brand decisions.
Bei and Simpson (1995) identified value-for-money and quality 2.1.2. Social value
perceptions as important determinants for choice behavior of Social value measures perceived utility derived from consumers'
recycled products. This theory had been applied by Long and association with social groups. Social value for green products can
Schiffman (2000) for analyzing consumer motivation, choice be defined as the perceived net utility derived from green product
behavior and segmentation according to their values and re- consumption based on the perception about social pressure or
lationships. The three value dimensions-value for money, social prestige gain through engagement in environmental saving. Social
and emotional value were adopted to develop a perceived value pressure or comparisons, peer opinion (Jager, 2006; Pickett-Baker
scale for the assessment of consumer perceptions for the value of and Ozaki, 2008) are key factors in decision making process
branded durable commodities (Sweeney and Soutar, 2001). Turel (Sheth et al., 1991; Bei and Simpson, 1995). Environmental attitudes
et al. (2010) applied this theory as means to explain user de- are inspired by sense of social responsibility (Straughan and
cisions for the use of hedonic digital artifact. Lin and Huang (2012) Roberts, 1999). Study conducted by Biswas and Roy (2015) have
used this theory to determine the influence factors on consumer found a strong influence of social groups and want of social
choice behavior for green products. The impact of consumption recognition on the consumption behavior of the consumer segment
values on sustainable consumption behavior across different con- exhibiting a preferential approach for products with green
sumer segments with preferential green choice approach were credential. On the contrary several studies suggest that the influ-
studied by Biswas and Roy (2015). ence of personal factors like attitude on consumers' behavioral
The theory of consumption value is an integrated model incor- intentions are more rather than social norms or pressure
porating components from various consumer value models based (Shamdasani et al., 1993; Biswas and Roy, 2015).
on the assumption that consumer choice is a function of multiple
consumption values. Value is a personal, subjective concept 2.1.3. Conditional value
including some intrinsic needs such as emotional aspects, knowl- Conditional value denotes the perceived net utility derived in a
edge concern as well as some implicit factors such as experiential specific situation or circumstances faced by the decision maker
need or prestige associated with the component purchase. Four (Sheth et al., 1991; Sidiras and Koukios, 2004; Gadenne et al., 2011).
such dimensions are value-for-money, social value, conditional Conditional value for green products can be operationalized as the
value and epistemic value. Consumption value is the degree of net utility derived from green product consumption over conven-
fulfillment of consumer need by overall assessment of consumers' tional substitutes based on their perceived willingness to have
net utility or satisfaction from a product after comparing the gains personal benefits in the form of discounts or perception about
with the gives. The value or utility of green products if higher than situational variables leading to such consumption. Situational var-
that of traditional substitutes will become a critical condition for iables refer to the circumstances surrounding individuals based on
334 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340

their response to stimuli to meet their needs. Environmental atti- Maheshwari, 2011; Milfont, 2012). Environmental attitude im-
tude, knowledge about environmental problems increases the pacts consumer inclinations to satisfy a desire for knowledge and
evaluation criteria and trade-offs between two or more products. seeking novelty in product information (Tanner and Kast, 2003).
Behavioral intentions are affected by changes in consumer situa- Based on the above discussion we deduce the following
tional variables as recognised by consumer research (Kardash, 1974; hypotheses:
Saxena and Khandelwal, 2010).
H1a. The value-for-money of a green product is positively
2.1.4. Epistemic value influenced by environmental attitude.
Epistemic value concerns the perceived net utility derived to H1b. The social value of a green product is positively influenced
satisfy the want of knowledge and seeking novelty in information by environmental attitude.
(Hirschman, 1980; Sheth et al., 1991; Laroche et al., 2001). Epistemic H1c. The conditional value of a green product is positively
value for green products is the degree of fulfillment of consumer influenced by environmental attitude.
need by overall assessment of consumers' net utility from green H1d. The epistemic value of a green product is positively influ-
product consumption based on their perception about green enced by environmental attitude.
product information or the disclosures made on the packaging of
green products. Consumer inclinations to satisfy a desire for
knowledge regarding the product attributes, compatibility, disclo- 2.1.6. Contextual factors (CF)
sures and novelty have favorable impact on consumer behavior Many contextual factors may influence individual motivations
(Tanner and Kast, 2003). Lack of essential product information and perceptions (Steg and Vlek, 2009). Contextual factors such as
often results in an attitude behavior gap between consumer's availability of recycling facilities, market supply of goods, pricing
environmental attitude and actual buying behavior (Ginsberg and regimes, policy incentives or product characteristics largely influ-
Bloom, 2004). This may be substantiated by enhanced informa- ence behavioral intentions and perceived value (Stern, 1999; Van
tion about the environmental compliance through third party cer- Raaij, 2002; Santos, 2008). In some cases, severe constraints may
tifications or eco-labels, life-cycle assessment and overall benefits hinder or may raise the cost of behavioral change or belittle mo-
of green products. tivations (Corraliza and Berenguer, 2000) this necessitates the
Several studies have indicated that levels of individual knowl- consideration of contextual factor in behavioral studies (Steg and
edge, attitudes, values and practices and contextual factors are Vlek, 2009). Studies on environmental psychology have stated
antecedents of improvement in environmental quality (Weigel and different ways of operationalization of contextual factors such as
Weigel, 1978; Corraliza and Berenguer, 2000; Tanner and Kast, they may affect behavior directly (Bamberg and Schmidt, 1999; Fuji
2003; Poortinga et al., 2004; Barr et al., 2005; Steg and Vlek, and Kitamura, 2004); or through the mediation effect of motivation
2009; Zsoka et al., 2013; Rodriguez-Barreiro et al., 2013). factors (Steg and Vlek, 2009) and personal factors (Geller, 1995). In
this paper, the price of green products, financial incentives, peer
2.1.5. Environmental attitude influence, availability of green brands are taken into consideration
Environmental attitude has been defined as psychological ten- as contextual factors (Wang et al., 2013). The consideration of
dency expressed by evaluation of the natural environment with contextual factors apart from intra-personal factors such as atti-
certain degree of favor or disfavor (Milfont and Duckitt, 2010). tudes, norms or habits has been necessitated. Contextual factors
Environmental attitude relates to the concern exhibited towards may affect behavioral outcome directly or such relation may be
the probable causal effects of environmental deterioration being mediated by other factors (Bamberg and Schmidt, 1999; Fuji and
measured upon individuals' behavioral commitment; affective Kitamura, 2004). Thus contextual factors may have a direct
states and belief with significant influence on green purchase impact on sustained green consumption behavior or through
behavior (Bei and Simpson, 1995; Straughan and Roberts, 1999; impacting the perceived consumption values such as value for
Laroche et al., 2001; Tanner and Kast, 2003; Barr et al., 2005). money and conditional value.
Some previous studies had suggested a positive relation between Based on the above discussion we deduce the following
environmental attitude and environmental behavior (Straughan hypotheses:
and Roberts, 1999; Kollmuss and Agyeman, 2002). Respondents
with higher level of environmental attitude or high NEP (New H2a. The value-for-money of a green product is positively
Environmental Paradigm) scores exhibit more positive perceptions related to contextual factors.
or higher utility from green product consumption (Hirschman, H2b. The conditional value of a green product is positively
1980; Bei and Simpson, 1995; Straughan and Roberts, 1999; related to contextual factors.
Laroche et al., 2001; Lin and Huang, 2012). Positive environ- H3. Contextual factors directly influence behavioral intention to
mental attitude enables individuals to make environmentally sustained green product consumption.
conscious consumption decisions with simultaneous optimization
of functional benefits, monetary benefit and social approval
(Kollmuss and Agyeman, 2002; Tanner and Kast, 2003; Barr et al., 2.1.7. Consumer innovativeness
2005; Gadennen et al., 2011). Variation in environmental attitude Consumer innovativeness had its inception in the Diffusion of
is largely attributable to social norms, consumers' price sensitivity Innovations Theory symbolizing general tendency or precocious
and situational variables (Franzen and Meyer, 2010; Malhotra and adoption towards dynamism in lifestyle or new product adoption
Maheshwari, 2011; Milfont, 2012). Consumers' belief of the posi- than other members in the social system (Hirschman, 1980; Rogers,
tive effect that their green product purchase would have on the 2003; Wang et al., 2008). It is consumers' predisposition to buy new
environment has a strong influence on their willingness to volun- and different products or brands rather than retain the previous
tarily do so (Samuelson and Beik, 1991; Seguin et al., 1998). choice or consumption patterns through independent decision
Commitment towards green purchase will be propelled by in- making and novelty seeking (Manning et al., 1995; Steenkamp et al.,
dividuals' response to price sensitivity, situational variables and 1999). It affects the desire to seek out new product information. In
perceptions exhibited towards environmental conservation (Rex the absence of close acquaintances or authentic referees for some
and Baumann, 2007; Franzen and Meyer, 2010; Malhotra and new products, consumers' tend to seek relevant information about
 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340 335

the makes and models, environmental compliances or essential intention to pay the green price premium is related to consumers'
product attributes that won't trade off and the perceived risk of past experience with the product. The paper tried to identify the
adoption of new products are undertaken independently (Wang positive intention to pay the green price premium among con-
et al., 2008). Based on the above discussion we deduce the sumers exhibiting behavioral intention to sustained green product
following hypotheses: consumption. Thus the following hypothesis was posed:

H4a. The social value of a green product is negatively influenced H7. Behavioral intentions to sustained green product con-
by consumer innovativeness. sumption positively influence behavioral intentions to pay the
H4b. The epistemic value of a green product is positively influ- green price premium.
enced by consumer innovativeness.
H5. Consumer innovativeness positively impacts behavioral 3. Research methodology
intention to sustained green product consumption.
3.1. Data collection and sample characteristics
2.2. Behavioral outcomes
A survey research was conducted to test the research model. To
2.2.1. Sustained green product consumption ensure the quality of the responses, a short paragraph introducing
Perceived value of green products is based on the aggregation of the objectives of this study was written at the beginning of the
perceptions about green products' benefits and their trade-offs. questionnaire. For the data collection of the concerned study, 130
Based on the theory of consumption values four value compo- students pursuing post-graduation in management studies through
nents has been used to assess the behavioral intention to sustained correspondence or part-time mode, 57 research students and 96
green product consumption. The perceived consumption values faculties at two central universities in India, were invited to
may affect behavioral outcomes such as consumer satisfaction, participate in the study. Most of these students had work experi-
behavioral usage intentions (Yang and Peterson, 2004). Out of many ence with extensive purchase habits. University students form an
behavioral intentions that may be influenced by perceived con- environmentally responsive consumer segment of the society
sumption values, behavioral intention to sustained green product (Fernandez- Manzanal et al., 2007). A prior study was administered
consumption may be of positive environmental significance. The with fifteen students as the focus group for proper evaluation or
behavioral intention to sustained green product consumption is the revision of items in the questionnaire. Each surveyed respondent
key outcome. It is an intention that requires individuals to commit were sent an e-mail containing the questionnaire attachment, with
to future use or purchase of green products. Given a positive value a request for completion of the survey instrument. A reminder e-
assessment of green products or expectation of positive con- mail was also sent to the non-respondents after 10 days of sending
sumption values may motivate stronger behavioral intentions to the questionnaire. Overall, a sample consisting of 142 students and
green product consumption. 59 faculties was drawn indicating effective response rates of 76%
Consumer choice behavior for green products is directly influ- and 61% for each respective group. According to Sekaran (2003)
enced by green product price perception, availability, social influence, sample size larger than 30 and less than 500 are appropriate for
available information; want to acquire new product information most research.
(Hirschman, 1980; Bei and Simpson, 1995; Straughan and Roberts, A total of 66.2% respondents were male. All the faculty re-
1999; Long and Schiffman, 2000; Laroche et al., 2001; Sweeney and spondents and fifteen respondents from other category have
Soutar, 2001; Shaharudin et al., 2010; Biswas and Roy, 2015). Con- monthly income above 50,000 INR (Indian Rupee). Nearly half of
sumers' emphasis on situational variables such as promotional in- the respondents were above 30 years old. However, it is not within
centives, subsidies may effect green product adoption (Kardash, 1974; the purview of this paper to deliver representative or descriptive
Saxena and Khandelwal, 2010). Consumption values positively in- data on green consumption, but to show the relationship among
fluence behavioral intentions for future usage and positive word-of- the studied variables.
mouth for hedonic digital artifacts (Turel et al., 2010).
Based on the above discussion we deduce the following 3.2. Measurement development
hypotheses:
The questionnaire consisted of six sections. Certain modifica-
H6a. Value-for-money of green products positively impacts tions or revisions were made in the adapted scales to suit the
behavioral intentions to sustained green product consumption. purpose of the paper. The questionnaire had pictures of different
H6b. Social value of green products positively impacts behav- environment friendly products such as A.C. with energy star ratings
ioral intentions to sustained green product consumption. (energy star ratings are a kind of eco-label providing energy rating
H6c. Conditional value of green products positively impacts information on the energy efficiency of electrical appliances),
behavioral intentions to sustained green product consumption. herbal healthcare products, environment-friendly personal hygiene
H6d. Epistemic value of green products positively impacts products, compact fluorescent lamps, green computers. However it
behavioral intentions to sustained green product consumption. was made clear to the respondents that the survey didn't resort to
specific brands of green products but the overall category of
products with environmental compatibility.
2.2.2. Willingness to pay The first section comprised of questions on consumer de-
Consumers' willingness to pay denotes the maximum price the mographics. The second section consisted of five questions
consumer may be inclined to pay for a product from a seller (Li and assessing respondents' environmental attitude adapted from
Meshkova, 2013). Whacking number of studies encompassed environmental value scale (Chen, 2014; Wang et al., 2013). The
willingness-to-pay for green alternatives in developed economies third section comprised of six items adapted from the contextual
(Hansla et al., 2008; Galarraga et al., 2011; Reynolds et al., 2012). factor scale (Wang et al., 2013). The two items of the consumer
Studies have shown that environmentally conscious consumers are innovativeness scale were adapted from Chen (2014) innovative-
inclined to pay the green price premium (Brandon and Lewis, 1999; ness scale. In the fifth section, thirteen items of the perceived
Laroche et al., 2001; Eriksson, 2004; Lung, 2010). Behavioral consumption values (Sweeney and Soutar, 2001; Turel et al., 2010;
336 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340

Lin and Huang, 2012) and behavioral intention to green product Eleven out of fifteen hypothesized paths have been significantly
consumption (Chen, 2014) were adapted and revised to measure supported as being shown in Table 4 and Fig. 1.
the parameters as per the paper's objectives. Three items measured
the behavioral intention to pay the green price premium adapted 5. Discussion
from the behavioral intention scale (Chen, 2014; Wang et al., 2013).
The participants were asked to respond with a five-point Likert Our study used the theory of consumption values as a way of
scale from strongly disagree (represented by 1) to strongly agree explaining and predicting the behavioral intention on green prod-
(represented by 5). uct consumption and willingness to pay. It was shown that envi-
ronmental attitude; contextual factors and consumer
4. Data analysis and results innovativeness assess the perceived utilities. Consumers' assess the
economic value of environment-friendly products, perceived utility
4.1. Construct validity and reliability from situational variables, epistemic value and social influence
when they consider their use and these result in behavioral in-
For identification of the underlying dimensions in scale, an tentions to usage and willingness to pay.
exploratory factor analysis was employed. All the items in Table 1 The study has been extended beyond segmenting consumers on
had factor loadings higher than 0.60 which is considered as the the basis of preferential approach for green credential based on
minimum threshold recommended value (Agan et al., 2013). Uni- consumption values (Biswas and Roy, 2015) but applied the influ-
dimensionality was assessed with factor analysis using principal ence of environmental attitude, contextual factors and consumer
component analysis with varimax rotation. Nine constructs were innovativeness towards the increment of perceived value of green
identified for the measurement model and path analysis. product consumption to assess the two behavioral intentions of
Table 1 reports the psychometric properties of the nine con- sustained green product consumption and willingness-to-pay.
structs. Construct validity could be ensured through discriminant Consumption values help to channelize sustainable consumption
and convergent validity with reliability and average variance (Biswas and Roy, 2015).
extracted (AVE). Convergent validity examines whether the items This study suggests five findings regarding the overall model.
of a construct are in agreement while discriminant validity mea- First, the behavioral intention to sustained green product con-
sures the degree of difference between the constructs. The signif- sumption strongly fosters the behavioral intention to pay the green
icant standardized factor loadings demonstrated convergent price premium, accounting for 21% of the variance as mentioned in
validity and cronbach's alpha value with high composite reliability Fig. 1. Thus consumers' who intend to consume environment-
(>0.70) signified internal consistency and reliability (Fornell and friendly alternatives in future or on a continual basis due to high
Larcker, 1981; Chen, 2014). The Cronbach's alpha values (
0.66) perceived consumption values, are more inclined to pay the green
for all the composite scales show good reliability of the scales. price premium. This validates previous studies that environmen-
Discriminant validity of the constructs was measured using AVE tally conscious consumption leads to willingness to pay (Brandon
(Average Variance Extracted) which accounts for the amount of and Lewis, 1999; Eriksson, 2004). The high perceived value-for-
variance explained by a construct in the items loaded against it money substantiates consumers' exhibiting interest on
compared with the amount of measurement error. The AVE for all environment-friendly product consumption and lifestyle with an
the constructs were above the recommended value of 0.50 and inclination to pay the green price premium resulting from the in-
varied from 0.53 to 0.89 (Table 1) (Chen, 2014). The inter-construct cremental cost for adoption of clean and green technology mech-
correlation matrix (Table 2) between the variables demonstrated anism by the manufacturers.
that the square root of average variance extracted (on the diagonal) Second, 40% variance in the behavioral intention (Fig. 1) to
for each construct was higher than the corresponding inter- sustained green product consumption is explained by green prod-
construct correlations. Thus construct validity of the measures uct price perceptions, perceived epistemic value, predisposition to
have been supported (Agan et al., 2013). new product consumption and contextual factors. Since perceived
value-for-money and epistemic value are the major predictors of
4.2. Measurement model and path analysis green consumption behavior, such consumer skepticism may be a
major impediment to expanded adoption of green product con-
A Structural Equation Modeling was applied to test the overall sumption habits. Studies on the influence of perceived consump-
model fitness with the help of multiple fit indices (Table 3). Data tion values on behavioral intention to future use have been
analysis was done through the application of AMOS 20.0. The ab- conducted with respect to products such as hedonic digital artifacts
solute fit indices as mentioned in Table 3 used to evaluate the but similar studies with respect to environment-friendly products
overall model fit include Chi-Square/df (CMIN/df) statistics of 1.64 has not been conducted. The findings of this paper try to address
indicates good fit along with other fit indices and the goodness-of- the gap. Change in consumption habits owing to intense consumer
fit index (GFI) of 0.82 indicates moderate fit being between 0.80 innovativeness may lead to a shift to green from non-green for
and 0.90. The Root Mean Square Error of Approximation (RMSEA) want of dynamism in lifestyle.
value of 0.06 was used as the major misfit index, being less than Third, want of social recognition or social influence has no sig-
0.10 indicates good fit.Comparative Fit Index (CFI) is an incremental nificant effect on green product adoption behavior (0.03) as sug-
fit index which is used to calculate improvements over competing gested in Table 4. This can be substantiated by stronger impact of
models and having a value of 0.92 it suggests good fit as well. The novelty seeking and negative relation between consumer innova-
Incremental Fit Index (IFI) of 0.92 and Parsimonious Normed Fit tiveness and social value (0.11) as provided in Table 4. Consumers'
Index (PNFI) 0.73 imply a good fit to the data as well. The final predisposition to change the consumption pattern is by virtue of
model explained a significant variance in the two behavioral novel information seeking and not based on word-of-mouth.
outcomes-sustained green product consumption (R2 ¼ 0.40) and Conditional value is an insignificant predictor of sustained green
intention to pay the green price premium (R2 ¼ 0.21). consumption behavior. One possible explanation for this is that the
The parameter estimates depicted in Fig. 1 and Table 4 are confidence in pricing and environmental knowledge devalues
standardized regression coefficients. A path is considered to be situational variables' importance on the behavioral intentions. This
significant if the t-value exceeds þ- 1.96 at 0.05 significance level. is further substantiated by the positive intentions to pay the green
 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340 337

Table 1
Psychometric properties of the scales.

Item Loading Cronbach's alpha CR AVE

Environmental attitude 0.82 0.98 0.53

It is important to me that the products I use don't harm the environment. 0.74
I consider the potential environmental impact of my actions when making many of my consumption decisions. 0.66
I am concerned about wasting the resources of our planet. 0.79
I would describe myself as environmentally responsible. 0.73
I am willing to be inconvenienced in order to take environmentally sustainable actions. 0.73
Contextual factor 0.90 0.98 0.63
Most of environment-friendly products I want to purchase are too expensive. 0.78
Among the people around me, there are few people to buy environment-friendly products or understand my 0.86
choice to environment-friendly products.
If there is government subsidy, I am willing to purchase environment-friendly products, despite of their higher 0.76
prices.
If there exists certain government, legal and regulatory requirements, I will change my consumption style 0.75
towards environment-friendly products to confirm them.
If the neighbors or families have purchased the environment-friendly products, I will also want to purchase the 0.81
same products.
There are few green brands in markets and I can't choose eco-friendly products for alternative. 0.81
Consumer innovativeness 0.71 0.78 0.70
I decide to buy new products and services without relying on the opinion of friends who have already tried them. 0.83
I often seek out information about new products and brands. 0.84
Value-for-money 0.83 0.98 0.63
Environment friendly products are good products for the price. 0.83
Environment-friendly products have a good economic value. 0.85
Environment friendly products are reasonably priced. 0.75
Environment friendly products offer value for money. 0.74
Social value 0.80 0.97 0.56
Purchase of eco-friendly products will help me gain social approval. 0.61
Purchase of eco-friendly products will make a positive impression on peer groups. 0.77
Consumption of eco-friendly products will improve the way I am perceived. 0.76
Consumption of eco-friendly product will help me feel socially acceptable. 0.83
Conditional value 0.78 0.96 0.60
I would purchase eco-friendly products over conventional substitutes if they are offered at subsidized rate. 0.80
I would purchase eco-friendly products over conventional substitutes if they are offered at a discount or with 0.81
other promotional incentives.
I would choose eco-friendly products over traditional substitutes under extreme environmentally deteriorating 0.72
conditions.
Epistemic value 0.98 0.98 0.89
I prefer to check the eco-labels and certifications on eco-friendly products before purchase. 0.95
I would prefer to gain substantial information about the makes and models of eco-friendly products before 0.94
purchase.
Behavioral intention to sustained green product consumption 0.70 0.93 0.54
Given a choice between two substitute products, I intend to choose the one having less environmentally 0.72
hazardous substances in future.
While purchasing the goods in future, I will consider whether it is environmental-friendly. 0.70
Given that environment-friendly products are readily available, I predict that I would use them in future. 0.78
Behavioral intention to pay the green price premium 0.66 0.93 0.55
To me, it deserves to consume environment friendly products despite their premium pricing. 0.73
I am willing to buy environment friendly products at a higher price for their environmental benefits. 0.72
I am willing to pay more money to buy environment-friendly products 0.78

AVE [Average Variance Extracted]; CR [Composite Reliability].

premium. Thus sustained green consumption is more a planned

process.
Fourth, consumers' strong awareness about the prevailing
environmental issues and belief on the positive effect of
Table 2
environment-friendly consumption influences the perceived
Inter-construct correlation and square root of AVE.

Constructs EA CF CI VM SV CV EV GC WTP Table 3

EA 0.73 Model fit indices for the overall model.
CF 0.20 0.79
Index Value Recommended valuea
CI 0.02 0.04 0.84
VM 0.10 0.21 0.001 0.79 c2/d.f. 1.64 <3
SV 0.40 0.19 0.17 0.10 0.75 RMSEA 0.06 <0.10
CV 0.35 0.29 0.12 0.02 0.35 0.77 CAIC 1263.89 Saturated Model ¼ 3328.15
EV 0.24 0.06 0.09 0.13 0.13 0.12 0.94 Independence Model ¼ 4136.36
GC 0.04 0.09 0.26 0.28 0.04 0.10 0.37 0.73 Best fit if less than both
WTP 0.09 0.08 0.17 0.17 0.05 0.08 0.27 0.31 0.74 GFI 0.82 >0.90
CFI 0.92 >0.90
EA [Environmental Attitude]; CF [Contextual factor]; CI [Consumer Innovativeness];
IFI 0.92 >0.90
VM [Value for Money]; SV [Social Value]; CV [Conditional Value]; EV [Epistemic
PNFI 0.73 >0.50
Value]; GC [Behavioral intention to sustained green product consumption]; WTP
a
[Behavioral intention to pay the green price premium]. Tseng and Hung, 2013.
338 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340

Fig. 1. The final model.

consumption values. Strong environmental attitude enhances the 6. Limitations and implications
urge to search for new products with greater environmental
compliance (0.25), feelings of social responsibility (0.56) and faith First, to test the generalizability of the findings to other samples,
in the economic value of environment-friendly products (0.23). the need to replicate the results of this paper should be emphasized.
Perceived utility from situational variables for environment- Second, respondents for the study were highly educated
friendly product consumption is significantly influenced by envi- depicting moderate to high score on the environmental attitude
ronmental attitude (0.41) (Table 4). This can be explained as the scale.
impact of situational variables associated with environment- Notwithstanding the limitations, it can be remarked that, to the
friendly products such as availability of discounts or promotional best of our knowledge, no previous study has used similar model to
incentives on behavioral intention to green product consumption assess the two behavioral outcomes with respect to green products.
will be stimulated by environmental attitude and awareness. Despite prevalence of environment-friendly products, there is
Fifth, the contextual factors considered in the study decreases still a lack of conventional guidelines as to how the perceived
the perceived value-for-money (0.27) for environment-friendly values may be applied for augmenting the sustained adoption
products but optimizing the perceived utility from situational var- behavior intention and intention to pay the premium. Our findings
iables (0.26) (Table 4). Thus contextual factors and perceived con- about the value structure behind such behavioral intentions have
ditional value are positively correlated. generated certain implications.
 A. Biswas, M. Roy / Journal of Cleaner Production 95 (2015) 332e340 339

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