What is the willingness-to-pay for sustainable product attributes?
Following recent evolutions in sustainability, this master’s thesis examines what consumers are willing to pay for fast-moving consumer goods with certain eco-friendly attributes. The methodology used is ratings-based conjoint analysis, applied to data obtained via a web-based survey. Each respondent was asked to rate ten profiles of a body wash product with varying prices, ingredients, packaging and branding attribute levels. This rating data was later analysed using R. Based on the coefficients of a linear regression analysis, the willingness-to-pay and importance measures of each product attribute (level) were derived. The regression is then repeated for several subsamples constructed on sociodemographic characteristics, i.e., age, gender, income level and highest obtained degree. In this way, results can be compared across different types of consumers. The findings of this study are that the willingness-to-pay is highest for products that contain biological ingredients and that are sold in reusable packaging. In line with this trend, the product content is the most important attribute to consumers, followed by the product packaging. Furthermore, the price only comes in third place and branding has the lowest importance measure. The analysis of the demographic subgroups shows that the most sustainable shopper is female, older than 45 years old, highly educated and has a high-income level.
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