Determinants of Green Consumption of Generation Y in Chiang Mai, Thailand
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Abstract
This study aims to explore green consumption behavior, assess generation Y consumers’ willingness to pay (WTP) price premium, and identify the factors that influence WTP price premium for green products. The word “green” means good for the environment. The authority in Chiang Mai, the second largest city in Thailand, is espousing strategies to transform it into a green city. Given that different generations hold diverse attitudes (including those related to the environment), the particular attitude of generation Y should be considered in the near future. Hence, this research surveys 1,200 Chiang Mai respondents. Results show that most generation Y consumers are concerned with green consumption, but such concern is at the medium level. Moreover, 78% of generation Y respondents are willing to pay price premium for green products (indicating that they can afford more of such products), but their level of acceptability still varies considerably. An ordered logit model shows that education level, income, gender, familiarity with green products, confidence in green product certifications, perception of green product quality, and degree of environmental concern significantly affect WTP price premium for green commodities.
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