IDEAS home Printed from https://ideas.repec.org/a/vrs/enviro/v7y2019i1p38-49n4.html
   My bibliography  Save this article

Consumer willingness to pay a price premium for ecological goods: a case study from Ukraine

Author

Listed:
  • Kucher Anatolii

    (NSC Institute for Soil Science and Agrochemistry Research named after O.N. Sokolovsky, 4 Chaikovska Str., Kharkiv, 61024, Ukraine)

  • Heldak Maria

    (Wroclaw University of Environmental and Life Sciences, 25 Norwida Str., Wrocław50-375, Poland)

  • Kucher Lesia

    (Kharkiv National University named after V.V. Dokuchajev, educ. Campus KNAU, Kharkiv, 62483, Ukraine)

  • Fedorchenko Olha

    (V.N. Karazin Kharkiv National University, 4 Svobody Sq., Kharkiv, 61022, Ukraine)

  • Yurchenko Yuliia

    (V.N. Karazin Kharkiv National University, 4 Svobody Sq., Kharkiv, 61022, Ukraine)

Abstract

The aim of this paper was to define and analyze local consumers’ willingness to pay a price premium for ecological goods in the regions of Ukraine (on the example of the residents of Kharkiv and Kyiv). For this purpose, different methods were used in the research: surveys; abstract-logical; induction and deduction; monographic; comparative analysis; graphic. The scientific value was provided by the theoretical development and methodological principles of assessing the willingness of consumers to pay a price premium for ecological goods in the regions of Ukraine. These have become the scientific basis for assessing the future development of this segment of the market, since more than half of consumers are ready to buy ecological products, even more expensive than ordinary ones, but there is a certain limit for the price premium. It was revealed that the potential for market development is the greatest, provided that the price premium for the environmental properties of the goods is not more than 25%. Accordingly, the higher the price premium on ecological goods, the less consumers are willing to buy them. The comparison of consumers’ attitudes from different regions (examples from the residents of Kharkiv and Kyiv) on ecological goods and their willingness to pay a price premium for them showed that one of the key factors is the level of the purchasing power of the population. The obtained results of the research can be used to assess the prospects for the development of the market in ecological goods, to develop a set of measures to increase the level of readiness of domestic consumers to pay a price premium for ecological products and the adoption of managerial and marketing decisions in the relevant segment of the market.

Suggested Citation

  • Kucher Anatolii & Heldak Maria & Kucher Lesia & Fedorchenko Olha & Yurchenko Yuliia, 2019. "Consumer willingness to pay a price premium for ecological goods: a case study from Ukraine," Environmental & Socio-economic Studies, Sciendo, vol. 7(1), pages 38-49, March.
    • Handle: RePEc:vrs:enviro:v:7:y:2019:i:1:p:38-49:n:4
    DOI: 10.2478/environ-2019-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/environ-2019-0004
    Download Restriction: no
    File URL: https://libkey.io/10.2478/environ-2019-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Agnieszka Leszczynska, 2014. "Willingness to Pay for Green Products vs Ecological Value System," International Journal of Synergy and Research, ToKnowPress, vol. 3(1), pages 67-77.
    2. Akeju, Tolulope & Adeyinka, Samson & Oladehinde, Gbenga & Fatusin, Afolabi, 2018. "Regression analysis of residents’ perception on willingness to pay (WTP) for improved water supply: a case from Nigeria," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 4(2), June.
    3. Farida, Badu-Gyan & Victor, Owusu, 2017. "Consumer Willingness To Pay A Premium For A Functional Food In Ghana," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 11(01-2), September.
    4. William Young & Kumju Hwang & Seonaidh McDonald & Caroline J. Oates, 2010. "Sustainable consumption: green consumer behaviour when purchasing products," Sustainable Development, John Wiley & Sons, Ltd., vol. 18(1), pages 20-31.
    5. A Muposhi & M Dhurup, 2017. "The Influence of Green Marketing Tools on Green Eating Efficacy and Green Eating Behaviour," Journal of Economics and Behavioral Studies, AMH International, vol. 9(2), pages 76-87.
    6. Seo-Hyeon Min & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "Consumers’ Willingness to Pay a Premium for Eco-Labeled LED TVs in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 9(5), pages 1-12, May.
    7. Owusu, Victor & Owusu Anifori, Michael, 2013. "Consumer Willingness to Pay a Premium for Organic Fruit and Vegetable in Ghana," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(01), pages 1-20, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Skorokhod, Iryna & Skrypchuk, Petro & Shpak, Halyna & Chemerys, Vasyl & Yakubiv, Roman, 2022. "Assessment of efficiency of the organic production development in Western Polissia regions," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4), December.
    2. Magdalena Jarczok-Guzy, 2022. "Financial and Marketing Purchase Conditions of Organic Baby Food," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 320-340.
    3. Bhardwaj, Seema & Sreen, Naman & Das, Manish & Chitnis, Asmita & Kumar, Sushant, 2023. "Product specific values and personal values together better explains green purchase," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    4. Ulva Arsyistawa & Arif Hartono, 2022. "The effect of eco-label and perceived consumer effectiveness toward green purchase," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(9), pages 57-66, December.
    5. Zhou, Yuwen & Tian, Lixin & Yang, Xiaoguang, 2023. "Schumpeterian endogenous growth model under green innovation and its enculturation effect," Energy Economics, Elsevier, vol. 127(PB).
    6. Jude Anayochukwu Mbanasor & Ogbonnaya Ukeh Oteh & Nnanna Mba Agwu & Chigozirim Ndubuisi Onwusiribe & Nwanneka Cynthia Ibem & Chibuzo Okpokiri & Ambrose Ogbonna Oloveze, 2022. "Wheat or cassava flour? Marketing and willingness to pay for cassava flour confectionery in Nigeria," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(3), pages 1-25.
    7. Joanna Smoluk-Sikorska & Magdalena Śmiglak-Krajewska & Stanislav Rojík & Pavlína Rojík Fulnečková, 2023. "Prices of Organic Food—The Gap between Willingness to Pay and Price Premiums in the Organic Food Market in Poland," Agriculture, MDPI, vol. 14(1), pages 1-19, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anatolii Kucher & Maria Hełdak & Lesia Kucher & Beata Raszka, 2019. "Factors Forming the Consumers’ Willingness to Pay a Price Premium for Ecological Goods in Ukraine," IJERPH, MDPI, vol. 16(5), pages 1-14, March.
    2. Jing Shao, 2019. "Sustainable consumption in China: New trends and research interests," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1507-1517, December.
    3. Jing Shao & Wenchao Li & Cedric Aneye & Wei Fang, 2022. "Facilitating mechanism of green products purchasing with a premium price—Moderating by sustainability‐related information," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 686-700, May.
    4. Elisabeth Unterfrauner & Jing Shao & Margit Hofer & Claudia M. Fabian, 2019. "The environmental value and impact of the Maker movement—Insights from a cross‐case analysis of European maker initiatives," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1518-1533, December.
    5. Dominique Diouf & Tessa Hebb & El Hadji Touré, 2016. "Exploring Factors that Influence Social Retail Investors’ Decisions: Evidence from Desjardins Fund," Journal of Business Ethics, Springer, vol. 134(1), pages 45-67, March.
    6. repec:zib:zbseps:v:2:y:2022:2:1:p:44-52 is not listed on IDEAS
    7. Rusitha Wijekoon & Mohamad Fazli Sabri, 2021. "Determinants That Influence Green Product Purchase Intention and Behavior: A Literature Review and Guiding Framework," Sustainability, MDPI, vol. 13(11), pages 1-40, May.
    8. Liobikienė, Genovaitė & Mandravickaitė, Justina & Bernatonienė, Jurga, 2016. "Theory of planned behavior approach to understand the green purchasing behavior in the EU: A cross-cultural study," Ecological Economics, Elsevier, vol. 125(C), pages 38-46.
    9. Claudio Siminelli, 2017. "Consumer behaviours and attitudes towards a circular economy: Knowledge and culture as determinants in a four-market analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(1-2), pages 135-169.
    10. Prudence Dato, 2018. "Investment in Energy Efficiency, Adoption of Renewable Energy and Household Behavior: Evidence from OECD Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    11. Ragna Nilssen & Geoff Bick & Russell Abratt, 2019. "Comparing the relative importance of sustainability as a consumer purchase criterion of food and clothing in the retail sector," Journal of Brand Management, Palgrave Macmillan, vol. 26(1), pages 71-83, January.
    12. Branka Dropulić & Zoran Krupka, 2020. "Are Consumers Always Greener on the Other Side of the Fence? Factors That Influence Green Purchase Intentions – The Context of Croatian and Swedish Consumers," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 32(SI), pages 99-113.
    13. Murat Yetkin & Fatma Özlem Güzel, 2020. "The Role of Countries’ Economic Development Level on Green Consumption Attitudes: A Study on Green Hotels," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(0), pages 167-183, December.
    14. Ramona Weinrich & Annabell Franz & Achim Spiller, 2016. "Multi-level labelling: too complex for consumers?," Economia agro-alimentare, FrancoAngeli Editore, vol. 18(2), pages 155-172.
    15. Santa, Juana Castro & Drews, Stefan, 2023. "Heuristic processing of green advertising: Review and policy implications," Ecological Economics, Elsevier, vol. 206(C).
    16. PUDARUTH Sharmila & JUWAHEER Thanika Devi & KOODRUTH UmmeYusra, 2017. "Understanding The Ecological Adoption Of Solar Water Heaters Among Customers Of Island Economies," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 148-173, April.
    17. Ibrahim Bozaci, 2014. "Moral Intelligence and Sustainable Consumption: A Field Research on Young Consumers," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(11), pages 306-319, November.
    18. Evon Scott & Giorgos Kallis & Christos Zografos, 2019. "Why environmentalists eat meat," PLOS ONE, Public Library of Science, vol. 14(7), pages 1-9, July.
    19. Jie Jin & Jun Zhuang & Qiuhong Zhao, 2018. "Supervision after Certification: An Evolutionary Game Analysis for Chinese Environmental Labeled Enterprises," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    20. Ioannis Rizomyliotis & Athanasios Poulis & Kleopatra Konstantoulaki & Apostolos Giovanis, 2021. "Sustaining brand loyalty: The moderating role of green consumption values," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3025-3039, November.
    21. Yulia Hristova, 2019. "The Second-Hand Goods Market: Trends and Challenges," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 8(3), pages 62-71, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:enviro:v:7:y:2019:i:1:p:38-49:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.