Green consumer behaviour: an experimental analysis of willingness to pay for remanufactured products

Céline Michaud and Daniel Llerena ()
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Céline Michaud: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique
Daniel Llerena: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique

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Abstract: Products' end-of-life management has recently become a critical business issue. One of the possible end-of-life strategies is remanufacturing, which can provide competitive advantages through material and energy savings. Beyond industrial organization challenges, there is a question about the interest of developing a green marketing strategy for remanufactured products. Indeed, remanufactured products can be considered as green products since their industrial process has environmental benefits. Our paper asks whether consumers are willing to pay for remanufactured products, especially when they are informed that these products are ‘green'. We use experimental auctions to elicit consumers' WTP for specific characteristics of remanufactured products. Our study indicates that consumers tend to value the remanufactured product less than the conventional one unless they are informed about their respective environmental impacts. We find no evidence that consumers are willing to pay a premium for the green (i.e. remanufactured) product. However, providing environmental information to consumers has an effect on their WTP for the conventional product: they generally decrease significantly their WTP for the conventional (and thus most polluting) product.

Keywords: GREEN PRODUCT; CONSUMER BEHAVIOUR; WILLINGNESS TO PAY; ENCHERE; SUSTAINABLE CONSUMPTION; PRODUIT VERT; PRODUIT REMANUFACTURE (search for similar items in EconPapers)
Date: 2011-09
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Citations: View citations in EconPapers (67)

Published in Business Strategy and the Environment, 2011, 20 (6), pp.208-420. ⟨10.1002/bse.703⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01809083

DOI: 10.1002/bse.703

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