Jennifer H. Dennis

Are Consumers Willing to Pay More for Biodegradable Containers Than for Plastic Ones? Evidence from Hypothetical Conjoint Analysis and Nonhypothetical Experimental Auctions

This study used and compared hypothetical conjoint analysis and nonhypothetical experimental auctions to elicit floral customers’ willingness to pay for biodegradable plant containers. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium is not the same for different types of containers. This article also shows the mixed ordered probit model generates more accurate results when analyzing the conjoint analysis Internet survey data than the ordered probit model.

Consumer Perceptions of Eco-friendly and Sustainable Terms

Common marketing strategies include emphasizing products’ “green” or environmentally friendly attributes and characteristics to appeal to a growing market of environmentally conscious consumers. While previous studies have used product labels such as “eco-friendly,” “environmentally friendly,” and “sustainable” to investigate consumer preferences, relatively little is known about how consumer perceptions as a pre-decision mechanism impact their preferences and choice behaviors. Using data collected through an online survey of U.S. and Canadian consumers, we investigate systematic differences in individuals’ perceptions of the terms “eco-friendly” and “sustainable.” Marketing implications for the food and green (i.e., greenhouse/nursery producers, suppliers, and retailers) industries are discussed.