Factors Influencing Green Purchasing Behavior of Consumers in Developing Countries with regard to FMCG Products

Abstract

According to Climate Risk Index 2020, most developing countries like the Philippines, Sri Lanka, and India, etc., have been ranked among the most vulnerable nations to climate change. Thus, it proves that developing countries are more prone to climate change and environmental damage. Given the climate vulnerability of developing countries, adopting sustainable development practices are necessary to be resilient to climate change and preserve the environment while heading towards development. Considering the significant impact on the environment due to consumption of goods, changing conventional consumption practices and adopting green purchasing behavior would minimize environmental damage due to consumption. In this regard, promoting green purchasing behavior with regard to FMCG products would significantly reduce environmental damage, given that they are necessities and consumed in large quantities. But according to literature, in developing countries, consumers don't find green products to be appealing due to lack of confidence and trust in green products. Owing to the aforementioned reasons, green consumption and green purchasing practices are not well established in developing countries. Even though there are studies that examine consumers' green purchasing behavior in developing countries, there is a shortage of studies examining the factors influencing consumers' confidence in green products. Hence, this study aims to examine the factors that drive consumers' confidence in green products and identify factors influencing consumers' green purchasing behavior in developing countries with regard to FMCG products. A comprehensive literature review revealed that factors affecting consumers' confidence in green products can be compartmentalized into three main categories: individual characteristics, socio-economic factors, and product and marketing attributes. Among such factors, environmental awareness, premium price, product quality, eco-labeling, peer influence and environmental policies were found to be the most prominent factors influencing consumers' confidence and trust in green products. While environmental awareness, product quality, eco-labelling, peer influence and environmental awareness were found to be positively influencing consumers' confidence in green products, with regard to premium price there were contradictory findings in literature. Even though some of the literature has stated premium price to be a driver of consumers' confidence in green products and thereby positively influencing green purchasing behavior, some other researchers have found premium price to be a barrier on green purchasing behavior. Also, it is noteworthy that these contradictory studies are from developing countries. Hence, we recommend that future research in developing countries in this regard could further investigate to clarify these contradictions with regard to premium price and discover reasons for such contradictions. Based on the current categorization, we intend to examine how such factors impact consumers' green purchasing behavior in the next phase of this study. Our findings add to the current literature on green purchasing behavior by clarifying the salient factors of a developing nation that influence consumers' intention to purchase green products. Further studies can test our findings in other developing country contexts and examine whether the same factors remain the same. Marketers can utilize the aforementioned factors in green marketing activities to drive consumers' confidence in green products and make green products more appealing.