Factors Influencing Green Purchase Behavior: Price Sensitivity, Perceived Risk, and Attitude towards Green Products

Abstract

The present study analyzes the effectiveness of consumer price sensitivity in expanding the use of green products. It investigates how the purchase behavior of Iranian consumers is affected by different aspects of perceived risk, such as financial, performance, psychological, and social risks. This study uses the four main concepts of ‘Perceived Risk’ (PR), ‘Attitude towards Green Products’ (AGP), ‘Price Sensitivity’ (PS), and ‘Green Purchase Behavior’(GPB) to develop a model to increase green purchase intention. This research uses an experimental study, using a survey method (questionnaire distribution)to confirm the hypotheses and discover its management concepts, and uses Structural Equation Modeling (SEM). The results show that the variable of “Perceived Risk” has a positive effect on “Attitude towards Green Products” and “Price Sensitivity”. “Attitude towards Green Products” has a positive effect on “green purchasing behavior” while “Price Sensitivity” has a negative effect on “green purchasing behavior”. This study focuses on existing literature by providing experimental evidence showing the importance of green consumption in the Iranian industry. The present model provides valuable input to policymakers and marketers to work from the perspective of policies and green marketing strategies and the research framework of purchasing green products to preserve the environment and the prevalence of green consumption among consumers.