Factors Forming the Consumers’ Willingness to Pay a Price Premium for Ecological Goods in Ukraine

Abstract

This study discusses the identification of factors affecting consumers’ willingness to pay a price premium for ecological goods. The study was carried out in selected regions of Ukraine, in the cities of Kharkiv and Kyiv. The study applied various research methods, in particular public opinion analysis based on conducted surveys and the statistical inference method. The conducted research may constitute the scientific basis for the assessment of this market segment development. The comparison of consumer attitudes, presented by the residents of major Ukrainian cities regarding environmental goods, revealed their willingness to pay a price premium depending primarily on the purchasing power of the population, but also on gender, age, and social status. The analysis of differences in the cross-tabulation of quality characteristics was performed using Pearson’s chi-square test, which showed that, for example, men were more willing than women to choose environmental products due to their environmental safety and their selection was more often than in case of women based on environmental goods’ price. The collected research results can be used to assess the development prospects of environmental goods’ market, to construct the set of measures increasing the willingness level of domestic consumers to pay a price premium for ecological products, and to take up decisions about the production of ecological goods.

Visitors’ Perceptions towards Traditional and Regional Products in Trabzon (Turkey) and Podhale (Poland)

“…Labeling is a powerful quality signal and a direct aid to consumers in making purchase decisions because it can convey important information on the search, experience and credence attributes of the products [47,48]. The production costs of eco-labelled products are higher than those of conventional ones because eco-labelled products require careful management from the raw materials and subsidiary materials to the packaging (the product is manufactured using an eco-friendly process and production method) [36].…”

Consumers’ Willingness to Pay More for Eco Friendly Products (Green Products) Classification Daily Needs Products

“…WTPM occurs when a consumer buys a product willing to pay more than the price of the product due to several things, such as raw materials, manufacturing processes, packaging, and product labels, where in the green product it is part of the determining factor. There are several things that influence consumers to pay more, such as purchasing power, age, gender and social status, also the large percentage of their willingness to pay is very varied in some countries [20]. Besides the knowledge factor [18] , a positive attitude towards ecolabeling [36], packaging, labeling, and online shopping experience also have a positive effect [39].…”

Hand-Feel Touch Cues and Their Influences on Consumer Perception and Behavior with Respect to Food Products: A Review

“…In addition, incorporation of fabrics and other reusable materials into reusable containers and tableware items has increased as consumers have become more concerned with reducing environmental impacts related to product purchase [148]. Since this may make consumers more willing to pay more for such products, it is unsurprising that companies are increasingly moving to ensure that their products fulfill the criteria for “green” products [149,150]. A quick survey of the online marketplace Etsy () revealed a variety of containers and tableware with eco-friendly features.…”