This study aims to evaluate the idiosyncrasies of consumer behavior in the context of green products. It examined the relationship between trust, green perceived value and price premiums.
A survey was conducted to collect data from 578 respondents using convenience sampling. The results were analyzed using the partial least squares approach to structural equation modeling.
The study revealed that green perceived value mediated the effects of customers’ green product experiences on their willingness to pay price premiums. In addition, trust in green labeling did not directly influence consumers’ willingness to pay more. However, it indirectly affected willingness to pay more through green perceived value.
This study focuses primarily on a single context, thus restricting the generalizability of the findings to other consumer groups or cultural situations. The cross-sectional nature of the data gathering further limits its capacity to establish conclusive causal correlations.
This study provides empirical support for the links between trust, green perceived value and price premiums in the context of green products. These findings can guide marketers in creating more effective marketing efforts by emphasizing green labeling to increase consumer trust in their products’ environmental features.
To the best of the authors’ knowledge, this study is unique because it focuses on trust in green labeling as a catalyst that influences willingness to pay premium pricing. By applying signaling theory to a sustainable consumption context, it extends the applicability and deepens its relevance.
