Do the Customers pay more for Green Products? an Analysis among the Consumers with Special Reference to Bangalore City, India

Abstract

Pricing is considered as an important aspect of every business. A product like green products, need to be priced carefully in order to attract the customers. The present study aimed to find out the willingness of the customers based on their different socio-economic background and the percentage up to which customers are ready to pay more for green products. The study also analyzed the level of agreement of customers towards the statement ‘price of green product is higher than conventional products and attempted to find out the association between customer satisfaction and their readiness to pay more for green products. 1061 samples were selected for the study through stratified random sampling. Statistical tools like percentage analysis and chi-square were employed to analyze the data. Findings revealed that almost all customers are ready to pay more for green products and the willingness to pay more towards green products increase with their satisfaction towards such products. The major limitation of the study is that it failed to analyze other P's of green marketing.