Alireza Ziaei-Bideh MSc of Business Management, Persian Gulf University

1. International E-Conference on Green Economics Explaining effective factors on consumers’ willingness to pay more for buying green products based on the Value-Belief-Norm theory AlirezaZiaei-Bideh MSc of Business Management, Persian Gulf University ess.ziaei@gmail.com, +989353977561 MahsaNamakshenas-Jahromi MSc student of Industrial Management, Yazd University ma.namakshenas@gmail.com

2. International E-Conference on Green Economics Introduction • Increase of environmental pollution and damage, together with the increase in public concern about the surrounding natural environment, has so far influenced the purchase and consumption behaviors, and thus, has led to emergence of a new group of consumers calledGreen Consumers. • Green Consumers or Environmental-Friendly Consumers are those who consider the impact of manufacturing process and consumption of environmental resources while making purchase or participating in other market related activities; and make their decisions accordingly.

3. International E-Conference on Green Economics Introduction.. • Similarly, in Iran, according to evidence, the public concern about environmental issues has increased among consumers, and green segments have emerged in markets. • Researchers have come to the conclusion that attitudes towards environmental issues and environmental-friendly behaviors and factors that encourage consumers to purchase green products are not the same in all cultures. • Hence, due to the unique cultural norms and values of Iranian citizens, it is necessary to conduct appropriate studies to determine profile and characteristics of Iranian green consumers.

4. International E-Conference on Green Economics Green Products • The term 'green' has nothing to do with color, but the choice of name is appropriate because green is a color that is often associated with nature. • Green products are considered kinder to the environment than non-green goods, in one way or another. • Green products are: • Energy efficient, durable and often have low maintenance requirements. • Free of Ozone depleting chemicals, toxic compounds and don’t produce toxic by-products. • Often made of recycled materials or content or from renewable and sustainable sources. • Obtained from local manufacturers or resources. • Biodegradable or easily reused either in part or as a whole.

5. International E-Conference on Green Economics Research Question What is the effective factors on consumers’ willingness to buy green products that have a premium price compared with similar products in market?

6. International E-Conference on Green Economics Value-Belief-Norm Theory • The VBN theory of pro-environmental behavior developed by Stern (2000) is an extension of the Norm Activation Theory (NAT) of Schwartz’s (1977). • The VBN theory assumes a hierarchical model where individual value orientations directly influence beliefs, and thereby attitudes and finally behavior.

7. International E-Conference on Green Economics Conceptual Model

8. International E-Conference on Green Economics Methodology • The target population of this research is consumers in Yazd province • A convenience sampling method was used to select the respondents. • A total of 300 initial responses have been received. After eliminating the confounding questionnaires, the number of final sample analyzed was 252, resulting in a response rate of 84%. • A questionnaire was used to collect the required data. All measures have been adopted from previous studies. • Structural Equation Modeling (SEM) has been used to test the conceptual model.

9. International E-Conference on Green Economics Results • Initial model results:

10. International E-Conference on Green Economics Results.. • Final model results:

11. International E-Conference on Green Economics Results.. • Final model fit:

12. International E-Conference on Green Economics Results.. • Path coefficients and hypothesis testing:

13. International E-Conference on Green Economics Conclusion • VBN theory can explain effective factors on Iranian consumers willingness to pay the premium price of green products. • Altruistic and biospheric values have a positive significant effect on consumers attitude toward environment. • consumers attitude toward environment can increase their awareness about consequences and problems of environment. This increased awareness leads to ascription of responsibility and then personal norm toward preserving environment. • pro-environmental personal norm increases consumers’ willingness to buy green products even when they are premium priced compared with similar products.

14. International E-Conference on Green Economics Thanks for your attention