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Determinants of Green Consumption Behaviour: Empirical Evidence from India

Chetali Arora

Research Scholar at Indira Gandhi National Open University, Delhi, India

Abstract: Purpose— This study aims at examining different factors determining green consumption behaviour in India. This is done in the context of consumption behaviour towards goods in the two product categories, viz. organic food products and energy-efficient electrical appliances. Design/methodology/approach— Data were collected from a convenience-based sample of 204 Indian consumers using a well-structured questionnaire. Multiple regression analysis was employed to test the proposed models of green consumption in the two-product categories. Various tests were used to examine the reliability of the results. Findings— Results indicate that there exist different sets of factors that determine the consumption of green commodities in different product categories. Factors common to both these sets are— behavioural flexibility, peer group influence, eco-labelling and certification, family size, and price of green products. Practical implications— The findings of this study suggest that a one-size-fits-all approach may not be successful in promoting green consumption; instead, a commodity-specific approach needs to be adopted by the stakeholders when promoting green consumption. Originality— This study provides newer insights into green consumption behaviour by examining the factors with respect to different commodity types. Also, factors like behavioural flexibility and family size are being examined for the first time in the green consumption space.

Keywords: green consumption, consumer behaviour, environment, sustainable, organic food, energy efficiency, family size, behavioural flexibility, India

Received June 02, 2022; Revised July 10, 2022; Accepted July 17, 2022

Citation: Chetali Arora, Determinants of Green Consumption Behaviour: Empirical Evidence from India. Applied Ecology and Environmental Sciences, 10 (7). 472-487. January 2022. doi:10.12691/aees-10-7-6

1. Introduction

‘Green consumption’ refers to an environmentally-responsible consumption where consumers give due consideration to the environmental impact of their buying, using, and disposing of commodities and services [1]. More and more people are becoming pro-environmental and are consuming goods that have the least detrimental effects on the environment. As per the results of a survey, 61 percent of consumers feel worried about climate change, while 64 percent feel that they can make a difference with their purchase decisions [2]. There exists a gamut of social, economic, psychological, and environmental factors that determine green consumption. Apart from socio-demographics [3] and psychographic variables [4], other determinants that have been considered in the studies include, collectivism [5], environmental involvement [6], environmental knowledge [7], perceived product price and perceived quality [8], green purchasing behaviour [9], social influence, recycling participation, ecolabelling and exposure to environmental messages [7], peer influence [3], altruism [10], environmental beliefs [11], green perceived risks [4].

Factors determining green consumption are being examined under the purview of various theories, models, and frameworks; most common being the theory of reasoned action (TRA) by Ajzen and Fishbein [12], the theory of planned behaviour (TPB) by Ajzen [13], and their variants (for example, [14,15,16]). As per these theories, an individual’s behaviour is prominently determined by his attitude, social norms, perceived behavioural control, and behavioural intentions. However, there are also studies exerting that there exists a gap between consumers’ favourable attitudes or intentions and actual green behaviour— something called the attitude-behaviour gap [17]. This gap is evident from the fact that the estimated market share of pro-environmental commodities remains negligible [18], confined to just 1-3 percent [19], or less than 4 percent worldwide, and maybe falling [20]. Young et al. [21] highlighted in their work that 30 percent of the consumers in the UK, even after reporting their concern for the environment, struggled to engage in pro-environmental purchases. In the Indian context, Manaktola and Jauhari [22] posit that despite a pro-environmental attitude, readiness to pay more for green consumption is missing. Another report gave the prime reason for this paradoxical finding to be the unavailability of pro-environmental products and services, and affordable prices [23]. Several factors resulting in the attitude-behaviour gap include premium prices of green commodities, perceived behaviour control, norms, perception about the quality of the product, the brand loyalty of the consumer, availability of the green substitute, etc. [24].

The observed attitude-behaviour gap poses a question about the relevance of standard models in explaining green consumption behaviour. As a result, these models have often been modified with other contextual variables to enhance their explanatory power [25,26]. According to Vermeir and Verbeke [27], consumer behaviour cannot be described by a particular framework, model, or theory. Moreover, the standard frameworks that worked well for developed nations may not be that effective in explaining the green consumption behaviour of consumers belonging to a developing nation (like India) for green consumption as a phenomenon and as a topic of research has relatively received less attention in the Asian countries [7]. Hence, to address the big gap between the green claims and the actual green behaviour of the Indian consumer base [28], there is a need to explore green consumption behaviour in the context of an emerging economy. This is what the present study takes up by going outside the purview of the standard frameworks that are criticised for giving mixed results. For this, factors from different models discussed in the existing literature are integrated to design frameworks determining the consumption of commodities in two product categories— organic food products, and energy-efficient electrical appliances. The former is the product of everyday purchases requiring relatively a small fraction of the annual household income. The latter is a product of one-time purchases requiring a relatively large fraction of the annual household income.

2. Conceptual Framework of the Study

2.1. Framework for Determining Green Consumption

There are several models and theoretical frameworks to determine the consumption of green commodities. Some of the well-known frameworks include the theory of reasoned action (TRA) by Ajzen and Fishbein [12], the theory of planned behaviour (TPB) by Ajzen [13], the model of environmental behaviour by Hines et al. [29], the attitude-behaviour-context model by Stern [30], the norm activation model of altruism [31], the consumption value theory by Sheth et al. [32], the social dilemma theory [10], the attitude-behaviour-context (ABC) model by Guagnano et al. [33], the motivation-ability-opportunity (MAO) model by Olander and Thøgersen [34], the psychological egoism theory [35], the model of reciprocal determinism [7]. The most commonly used model is the theory of planned behaviour by Ajzen [13,36]. However, there are studies criticising the effectiveness of these models in depicting or explaining green consumption behaviour [37,38,39]. This suggests that consumer behaviour cannot be described by a particular framework, model, or theory. Thus, as also is suggested by Wang et al. [40], there is always felt a need for exploring and examining the different set of factors including the personal, situational, and culture-specific, along with looking at the issue from the multi-disciplinary lens [41]. The present study is thus attempting to integrate factors from different models discussed in existing literature with the context of an emerging economy like India and the commodities in the two product categories, organic food products, and energy-efficient electrical appliances.

The study proposes two frameworks (Figure 1 and Figure 2) each representing relationship between the factors and the green consumption behaviour towards goods in the two product categories. Factors including, environmental knowledge, concern and attitude (EKCA), values and norms (VN), peer group influence (PGI), behavioural flexibility (BF), product attributes and quality (PAQ), price of the green product (PGP), and eco-labelling and certification (ELC), are tested for their relevance in determining consumption of the goods in the two product categories. Additionally, the study proposes to test the relevance of family size in determining green consumption behaviour. To the best of the author’s knowledge, family size as a factor is hardly examined in the green consumption space. Moreover, an additional factor health consciousness (HC) will also be tested for its significance in impacting the consumption of organic food products.

Figure 1. Proposed framework determining green consumption behaviour towards organic food products (GCOFP)

Figure 2. Proposed framework determining green consumption behaviour towards energy-efficient electrical appliances (GCEEEA)

2.1.1. Green Consumption Behaviour towards Organic Food Products (GCOFP)

Organic food products are perceived to be healthy as they are chemical-free [42], or free from growth hormones in the case when animals serve as food [43]; also, organic methods of food production are environment-friendly. As per some survey-based studies on Indian consumers, consumers especially those belonging to middle- and high-income groups, having attained higher education, find organic food products to be healthier and superior to conventional products, and thus are willing to buy them even at a premium price [44]. Despite this, the domestic demand for these products is at the nascent stage [45]. As per a 2014 report by the Green Purchasing Network of India, high cost is the prime deterrent in green purchase behaviour by Indian consumers. Besides cost, there are many other significant determinants including consumer values (environmental consciousness, health consciousness and consumer’s attitude towards organic food product), subjective norms, perceived behavioural control, moral attitude, convenience, education level, etc. that influence consumption of organic food products (for example, refer [47,48].

2.1.2. Green Consumption Behaviour towards Energy-Efficient Electrical Appliances (GCEEEA)

Energy efficiency involves performing the same task but using less energy. Research studies have been taking the energy efficiency behaviours or technology choices under the purview of green behaviour [30]. These behaviours involve replacing or substituting an old or inefficient appliance with an efficient one which lowers an appliances’ impact on the environment. Examples of these behaviours include opting for— energy-efficient LED lights, one-time purchase appliances like refrigerators, washing machines with energy-saving ratings, a fuel-efficient or less polluting vehicle, etc. An energy-efficient electrical appliance possesses a potential for future savings in terms of reduced electricity bills; this might be a significant factor in determining the consumption of these appliances. Similarly, the environmental concern could be another factor since associated energy efficiency with the appliance reduces the energy demand and hence curb the soaring pressure on limited non-renewable energy sources. This way there could be many other significant factors determining the consumption of this green good.

2.1.3. Environmental Knowledge, Concern, and Attitude (EKCA)

There are three factors, environmental knowledge, environmental concern, and attitude towards the environment, which this study is trying to combine in the form of a single construct to represent an individual’s relation with the environment.

Environmental knowledge is the knowledge about the relevant environmental concepts, environmental issues, and strategic responses to solve environmental problems. Some studies suggest a positive relationship between environmental knowledge and green consumption behaviour [7]; while some show a non-significant relationship between them both [49].

Environmental concern is the extent to which individual worry about or feel sensitive to the issues related to the environment [50]. Studies have confirmed a positive relationship between heightened environmental concern and green consumption behaviour [5]. On the other hand, some studies indicate that environmental concern has a limited effect on green consumption behaviour [51].

Environmental attitude is referred to as cognitive judgment towards various environmental issues. It is believed that individuals having a favourable attitude towards environmental issues are likely to indulge themselves in pro-environmental behaviour. Some studies have put forward a positive association between environmental attitude and green consumption behaviour [14], whereas a few revealed that the association is either weak or non-significant [46].

Based on the mixed results, the following hypothesis was framed:

H1. There is a positive relationship between heightened environmental knowledge, concern, and attitude (EKCA) and green consumption behaviour.

2.1.4. Values and Norms (VN)

According to Bamberg and Möser [52], individuals use values as a criterion to act in a certain way and justify their actions. Norms on the other hand are the usual or typical ways of behaving. Many studies have confirmed a positive correlation between norms, purchase intentions, and green consumption behaviour [14]. However, a few studies suggest that pro-environmental values do not guarantee green behaviour [53]. This inconsistency resulted in the framing of the following hypothesis:

H2. Values and norms positively affect green consumption behaviour.

2.1.5. Peer Group Influence (PGI)

An individual lives within a society composed of his family members, relatives, friends, neighbours, colleagues, classmates, all together forming that individual’s peer group. It has often been underlined in the existing literature that peer groups might suggest, inculcate, spread, and reinforce pro-environmental behaviour among consumers [54]. However, there are studies where it was found that peer group influence does not have any significant effect on the consumer’s attitude towards green products [5]. Such an inconsistency motivated the framing of the following hypothesis:

H3. Peer group influence is a significant factor in determining green consumption behaviour.

2.1.6. Behavioural Flexibility (BF)

An individual’s everyday behaviour rarely adheres to the objective optimisation exercise as is discussed in the traditional economic theories of decision-making. Even subjectivity or an individual’s judgments cannot guarantee his actual behaviour. This is evidenced by the observed ‘attitude-behaviour’ gap concerning green consumption behaviour underscored by the existing literature [17]. Consumers may not be flexible in their behaviours; and an individual’s behaviour could be more impulsive, habitual, or emotional than being planned [55]. Giving due consideration to this, the present study proposes that consumers who are relatively inflexible with respect to their decision-making, are less likely to switch to non-conventional green consumption behaviour from conventional non-green consumption behaviour. This will be explored perhaps for the first time in the green consumption space. The following hypothesis is framed:

H4. There is a positive relationship between behavioural flexibility and green consumption behaviour.

2.1.7. Product Attributes and Quality (PAQ)

A consumer mostly purchases a commodity by giving due consideration to its attributes and quality. A green commodity has the additional attribute of being pro-environmental or healthy besides possessing similar attributes to that of a conventional commodity. An added feature comes with an addition to the price, which the consumers are willing to bear [56]. Nevertheless, the quality of a product, especially a non-conventional one, matters so much that even the perception of the quality of such products has been one of the significant obstacles to their consumption [20]. In such a case, consumers find it hard to compromise on the excellent functionality of a conventional non-green commodity and pay a premium price for the green one [57]. Such inconsistency necessitated examining the following hypothesis:

H5. Consumers purchase green commodities for their attributes and quality.

2.1.8. Price of Green Product (PGP)

A green product or a service is generally costlier and is available at a premium price in the market [79]. Just like it holds for a conventional commodity, higher prices are often a hurdle in green consumption [58,59]. Nevertheless, there are also studies advocating the fact that price though an important determinant in purchase decisions may not be so strong as a determinant in explaining pro-environmental behaviour [60]. Especially, people who possess a concern for the environment are found to be less sensitive to the price of green goods [61]. In such a case, price no longer acts as a barrier to green consumption [24]. Encountered inconsistency led to the formation of the following hypothesis:

H6. There is an inverse relationship between the price and the demand for a green commodity.

2.1.9. Eco-labelling and Certification (ELC)

An eco-label or a certificate certifying the greenness of the green product assures the consumer about the greenness of the product and thus encourages consumption of these commodities among consumers [62]. However, businesses have been getting indulged in the act of green-washing to increase product sales. Parguel et al. [63] explain greenwashing as an act of misleading consumers with the environment-friendliness of a commodity or a service or the pro-environmental practices of a business. Consequently, this creates doubts in the minds of consumers about the green claims made by the business [64], in turn impairing the market demand for green commodities [65]. Considering mixed results concerning the significance of eco-labelling and certification in determining the consumption of green goods, the following hypothesis was formed:

H7. Eco-labelling and certification significantly influence green consumption behaviour.

2.1.10. Family Size

The consumption expenditure of the household varies with the family size, with the latter having a significant positive impact on the former [66]. As far as green consumption is concerned, the size of the household does matter [67]. A family with relatively a greater number of members might be less likely to engage in green consumption. The larger the size of the family, the higher is the total consumption expenditure, and then, paying premium amounts for green goods may become unaffordable for that family. Family size as a factor in determining green consumption is hardly examined in the existing literature. The present study attempts to cover this gap with the help of the following hypothesis:

H8. There is an inverse relationship between family size and the demand for a green commodity.

2.1.11. Health Consciousness (HC)

Health consciousness reflects an individual’s thoughts about health-related issues and their readiness to take action to ensure good health [68]. Consumers are increasingly becoming health conscious, knowledgeable, and aware of the existing methods of food production that rely primarily on chemicals and thus have an adverse effect on their health [69]. As a result, most consumers prefer food products produced using traditional or organic methods of production [70]. Research evidence has underscored the significance of health consciousness as a significant factor in determining the consumption of organic food products [48]. Nevertheless, contrasting results do exist with Tarkiainen and Sundqvist [71] finding health consciousness to be not significant in predicting attitude toward consuming organic food products. Considering the mixed results, the present study takes up the following hypothesis:

H9. Heightened health consciousness positively influences the consumption of organic food products.

3. Methodology

3.1. Data Collection and Survey Instrument

The survey for the present study was carried out in NCT-Delhi on a sample size of 204 respondents during the three-month period from November 2019 to January 2020. The capital region is selected for several reasons: (i) the population of Delhi consists of people who migrated from all over the country, this, in turn, makes the city a good representative of the population of India; (ii) Delhi with more than 97 percent of the urban population would be better exposed to the idea of green consumption; (iii) With a per capita income of almost three times the national average, people in Delhi are in a better position to pay for the premium amounts at which green commodities are available. A structured questionnaire (refer Appendix A) was employed to capture the attitude and purchasing behaviour of consumers using a 5-point Likert scale. The questionnaire consisted of two sections—the first captures the demographic profile of the consumers. The second section of the questionnaire captures the consumption attitude and behaviour of the respondent. The questionnaire was developed by picking general items rather than context-specific items as the former does not get affected by situational factors easily; moreover, they are better at predicting environmental behaviour [72]. Initially, the questionnaire was pre-tested on a sample of 10 respondents and wherever ambiguity was pointed out, questions/statements were modified to enhance their understandability from the perspective of a consumer.

3.2. Profile of the Sample

Using the convenience sampling method, a total of 210 questionnaires were shared among the prospective respondents. Of 210 questionnaires, 204 were complete and usable, resulting in an effective response rate of about 97 percent. The demographic profile of the sample' is presented in Table 1.

Table 1. The demographic composition of the sample (N=204)

The sample is almost evenly distributed among the subgroups in the gender and the annual family income variable categories. However, it is somewhat skewed in the rest of the variables. Respondents belonging to the age group 25-34 (54.4 percent), who are single (71.6 percent), have attained the educational qualification of post-graduate and above (65.7 percent), are presently either students (32.4 percent) or in some private service (30.4 percent), and with a family size comprising 3-5 members (71.1 percent) constitute a relatively larger proportion of the sample. Of the total respondents, 74 percent are 25 years of age or above. This reflects the relevance of the sample to assess purchase behaviour as people in this age group have the decision-making and/or the paying capacity. As far as the educational profile of the sample is concerned, 96 percent of the respondents are graduates and above, in turn fulfilling the need for an educated class for the study. More than 50 percent of the respondents are having a source of income either from private service (30.4 percent), government service (20.6 percent), or business (8.3 percent), in turn revealing the paying capability of the majority in the sample.

3.3. Reliability Analysis

Reliability analysis is done to examine the coherence of the statements/questions representing a construct. One of the most common methods of examining the reliability of a construct is by finding the value of its Cronbach alpha (α). The value of Cronbach alpha for all the constructs is given in Table 2.

Table 2. Reliability analysis of the constructs

The value of Cronbach alpha varies from 0.61 to 0.92 and so is lying within the substantial level (0.61-0.80) and the stricter level (0.81-1.0) [73]. Generally, for reliability analysis, the minimum value of Cronbach α is 0.7 [74]. However, a value > 0.60 is considered adequate in research studies of exploratory nature or in fairly new areas [75]. Thus, the questionnaire adopted can be termed as being reliable in consistently measuring all constructs in this study.

3.4. Regression Analysis

Simultaneous multiple linear regressions were run separately to test the significance of the proposed frameworks. We have two models where model 1 has GCOFP as the dependent variable, while model 2 has GCEEEA as the dependent variable.

3.4.1. Significant Predictors of Consumption Behaviour toward Organic Food Products

The overall result for the regression model was significant with R² = 0.62, F (9, 192) = 29.63, p < 0.001. That is, all the factors considered are simultaneously significant in influencing the consumption of organic food products. The value of the goodness of fit measure (R²) is 0.62; implying the regression involving all the nine factors considered explains about 62 percent variation in the dependent variable GCOFP. Among these nine factors, values and norms, product attributes and quality, and environmental knowledge, concern and attitude were found to be non-significant predictors of the construct representing the consumption of organic food products (Table 3). The predictability (in the descending order) of the other six factors is: behavioural flexibility (βS = 0.30, p < 0.001), health consciousness (βS = 0.27, p < 0.001), eco-labelling and certification (βS = 0.186, p < 0.01), peer group influence (βS = 0.185, p < 0.001), family size (βS = − 0.163, p < 0.01) and price of green product (βS = − 0.10, p < 0.05), where βS represents standardised coefficients. H3, H4, H6, H7, H8, and H9 are supported. The possibility of a multicollinearity problem in the model is assessed by analysing the variance inflation factor (VIF) score and tolerance score of each construct. The values for the tolerance rate for each construct are more than the threshold limit of 0.1, while the value of the VIF in the case of each construct is less than the threshold limit of 10.0 as suggested by Hair et al. [76]. Hence, each construct clearly tested different dimensions, and multicollinearity is not a problem in the present regression model.

Table 3. Regression coefficients c (Model-I)

Table 4. Regression coefficients d (Model-II)

3.4.2. Significant Predictors of Consumption Behaviour toward Energy-efficient Electrical Appliances

The overall result for the regression model was significant with R² = 0.73, F (8, 195) = 64.74, p < 0.001. That is, all the factors that are considered are simultaneously significant in determining the consumption of energy-efficient electrical appliances. The regression involving all eight factors explains about 73 percent variation in the dependent variable GCEEEA. Among these eight factors, EKCA was found to be a non-significant predictor of the construct representing the consumption of energy-efficient electrical appliances (Table 4). The predictability of the other seven factors is in the following descending order: eco-labelling and certification (βS = 0.44, p < 0.001), product attributes and quality (βS = 0.25, p < 0.001), peer group influence (βS = 0.22, p < 0.01), values and norms (βS = 0.20, p < 0.001), family size (βS = −0.13, p < 0.01), price of green product (βS = −0.082, p < 0.05), and behavioural flexibility (βS = 0.080, p < 0.05), where βS represents standardized coefficients. H2, H3, H4, H5, H6, H7, and H8 are supported. Considering the VIF and tolerance score for each construct it can be said that each construct clearly tested different dimensions and that multicollinearity is not a problem in the present regression model.

4. Discussion

4.1. Consumption of Organic Food Products: Significant Factors

Behavioural flexibility turned out to be the top predictor of consumption of organic food products. Food choices are very personal choices that are deep-rooted in one’s culture. Hence, switching to non-conventional food products, like organic food products necessitates flexibility in one’s consumption patterns. The next best significant factor in the order is the growing health consciousness among consumers. Consumers in the present time are increasingly becoming aware of the negative effects of chemicals added to scale up food production [69]. This has intensified the demand and preference for organic food products. The result of the present study supports the findings of many other existing studies [47,48]. Peer group influence is another significant factor in the order. No second disagreement with the fact that purchase decisions of the peer group influence the purchase decisions made by an individual [54]. This result supports the findings of Persaud and Schillo [54], and Kumar et al. [16]. Other significant factors influencing the consumption of organic food products (in the descending order of their predictive power) include eco-labelling and certification, family size, and price of the green product. The present study like many other existing studies supports the fact that an eco-label on a product promotes demand for it [21,62].

Another significant factor influencing the consumption of organic food products is the family size. The sign of the coefficient has come out to be negative. The larger the family size, the higher will be the total spending on food consumption, which in turn may become unbearable if the family needs to pay for the premium prices of the organic food products. The study makes an addition to the evidence suggesting that higher prices of organic food products restrict their consumption and preference by consumers [47]. Nevertheless, the influence of the premium prices of organic food products is the least among all the significant factors that the empirical part suggested. This supports the findings of previous studies that people nowadays are becoming more willing to pay premium prices for organic food products considering the product’s benefit to the health and the environment [44,78].

4.2. Consumption of Energy-Efficient Electrical Appliances: Significant Factors

Eco-labelling and Certification turned out to be the top predictor of the consumption of energy-efficient electrical appliances. That is, an appliance with an energy-saving certificate or a star-ratings label indicating its energy efficiency characteristic influences a consumer’s consumption of that appliance. This supports the results of previous studies [21,62]. The next best significant factor in the order is product attributes and qualities. These appliances possess the attribute of being energy-efficient, and lower energy consumption brings in the benefit of a lower energy bill. In the descending order of predictive power, next comes the Peer group Influence factor which supports the findings of many research studies [54,78]. One reason for this may be since electrical appliances like refrigerators, washing machines, TVs, or even lights, etc. are used by almost all the members of a family, so considering the opinions of each while making purchase decisions becomes necessary. Also, since spending on an electrical appliance involves committing a lot of money, individuals tend to refer to their peer group for making an informed choice. Other significant factors influencing the consumption of energy-efficient electrical appliances (in the descending order of their predictive power) include values and norms, family size, price of green products, and behavioural flexibility. Many studies in the past have revealed a positive association between value or norms and green consumption behaviour [13].

A significant contribution made by the present study is that the relationship between the family size and the consumption of an energy-efficient electrical appliance is significant and inverse. An explanation for this finding could be larger the family size, the higher is the amount of total family expenditure, and since energy-efficient electrical appliances are sold at a premium price, buying these green commodities by a large family may become a tough option. Also, when there are many members in a family to take opinions from, the chance of all opinions syncing in one direction is less likely to be a possibility. The negative association with the price factor supports the findings of the studies identifying premium prices of green commodities as a hurdle to green consumption [57]. Behavioural flexibility is another significant factor in the order. This comes as no surprise since consumer durables like refrigerators, washing machines; TVs, ACs, etc. remain in operation for fairly 8 to 10 years, and this duration of time is no less for a consumer to not become accustomed to a particular model or brand of an appliance. Flexibility in consumption behaviour then becomes a prerequisite for switching to a different brand or model from the one that the consumer has been using for a long period.

5. Conclusion

Unmindful production and consumption lie at the core of the issues like global warming, resource exploitation, deforestation, forest fires, acid rain, ozone layer depletion, extinction of species, melting glaciers and what not. Thus, there felt a need to transform the unsustainable consumption into sustainable or green consumption. By green consumption it is meant to consume green commodities so as to have least negative impact on the environment. The research space in this direction have come up with several models, theories and frameworks that brought to light many socio-demographic, psychographic, factors that influence consumption of green commodities.

Unlike conventional commodities, consumption of green commodities is determined by many factors with price being not a very significant determinant. There also have been many inconsistencies with respect to these determinants, with some studies underlining their significance while the others underscoring their insignificance. Also there exists an attitude-behaviour gap with regards to consumption of these commodities, wherein people say something but do something else. Above it all is the need felt to prompt consumers to consume green commodities. To address these concerns, the present study aimed at examining and exploring economic, social and psychographic factors for their significance in determining green consumption behaviour in case of the Indian consumer class. Green consumption has been captured in terms of consumption of green commodities in the two product categories, organic food products and energy efficient electrical appliances, with the former being an item of everyday purchase, and the latter being a one-time purchase commodity involving spending a considerable amount than required for purchasing the former commodity.

Data for the empirical work was collected from both, primary and secondary sources. Snowball sampling technique was used to select the sample for the study. A well-structured questionnaire was designed to gather primary data which was analysed using the regression analysis. Various tests were used to examine the reliability of the results.

The major findings of the study are given below:

1. Factors that are found significant in determining consumption of organic food products (in the descending order of their predictability) include—behavioural flexibility, health consciousness, eco-labelling and certification, peer group influence, family size and price of green product. Whereas, factors like, values and norms, product attributes and quality, and environmental knowledge, concern and attitude were found insignificant in determining consumption of organic food products.

2. Eco-labelling and certification, product attributes and quality, peer group influence, values and norms, family size, price of green product, and behavioural flexibility, in the descending order of their predictability, are significant in determining the consumption of energy efficient electrical appliances. The environmental knowledge, concern and attitude factor was found insignificant in determining consumption of energy efficient electrical appliances.

3. The consumption of organic food products and the consumption of energy efficient electrical appliances are related positively with the behavioural flexibility construct, while they are related negatively to the family size.

4. There exist differentiated sets of factors determining consumption of green commodities in different product categories. Factors common to both these sets are— behavioural flexibility, peer group influence, eco-labelling and certification, family size, and price of green product.

6. Policy Implications and Recommendations

The set of factors determining green consumption differs according to the commodity type. This calls for a commodity-specific approach to be adopted by the stakeholders when promoting green consumption. As per the findings, several incentives could be offered to consumers who are relatively less flexible in terms of their consumption behaviour. The behaviour of an individual consumer can also be influenced by advertising or running a campaign to highlight the benefits of consuming a green commodity in place of the conventional non-green ones. Cultural backwardness or lack of awareness which may impact the flexibility of an individual’s behaviour could be dealt with by inculcating the values promoting green consumption in the educational curriculum.

A health-conscious individual prefers to consume organic food products, as is also supported by the result of the study. Thus, arousing the feeling of living a healthy life among the masses, in turn, may lift the demand for organic food products. Since peer group plays a significant role in impacting the consumption of green commodities, concerned stakeholders including the government, seller, etc. should ensure that there is a proper feedback system in place which can be referred to by the individuals while making their decisions. Eco-labelling on energy-efficient electrical appliances and organic food products turned out to be a significant factor. Hence, ensuring a proper and reliable system for eco-labelling the green commodities may also boost the consumption of these commodities. Initiatives should be taken to ensure that green commodities are available in the market at competitive prices. A price ceiling may serve the purpose in this case. Price-sensitiveness of the consumers in the case of green consumption could also be taken care of by making the consumer aware of the indirect monetary benefits associated with green consumption. For instance, in the case of organic food products, it is the improved health and hence reduced medical bills, while in the case of energy-efficient electrical appliances, the associated benefit is the reduced electricity bill. Since consumers are sensitive about the quality of the product they consume, and green commodities are often considered to be of sub-standard quality, a proper benchmark should be set up by the concerned authorities to ensure the good quality of the product.

7. Limitations and Future Research

This study takes up goods in two categories which may impact its applicability across other goods categories. Thus, future research can consider more and different categories of goods.

The findings of the present study may suffer from social desirability bias which results when traditional survey instruments are employed for collecting data, wherein consumers claim to be having deep environmental concern for the environment but their actual behaviour is way different from what they claim. Thus, future research may rely upon making a direct observation that is believed to be resulting in the most accurate results. Lastly, the study attempts to deal with the issue of the pattern of consumption (in the form of green consumption) and not the level of consumption (that is, curbing excessive consumption). However, to effectively address the issue of environmental degradation, unsustainable consumption should be approached from both directions.

References

Appendix A

QUESTIONNAIRE

Determinants of Green Consumption: A Case Study of Delhi

Dear Friends,

With a view to bring into light the Determinants of Green Consumption, a Research Study is being undertaken. Green consumption refers to consumption of green products like low power consuming (energy-efficient) electrical appliances, organic food products, lead-free paints, etc. The study will help firms, marketing practitioners, academicians understand Indian consumers’ predisposition and attitudes towards Green consumption. Moreover, it will have important implications for the government’s environmental protection initiatives. For this purpose your cooperation is solicited. You are requested to spare some of your valuable time to fill up this questionnaire. All the information provided in this questionnaire will be used strictly for research purpose and will be kept confidential.

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