Environmental Concern and Green Product Purchasing in Germany

Evaluation of Results

The analysis presents various findings about the perceptions of German consumers with reference to green products. The findings achieve the research objectives and test hypotheses based on the demographic characteristics of the sample population. The results reveal that the entire sample population is well educated, with 84% of participants having completed graduate programs. Participants therefore possess advanced knowledge of the health benefits of green products, as well as an understanding of the impact of conventional products on the environment — both of which influence consumer buying decisions regarding sustainable products. Larsson and Arif Khan (2011) argue that green awareness motivates consumers' pursuit of green criteria, and that product choice is also influenced by prior purchase experience. When informed consumers decide to purchase sustainable products, they search for both primary and secondary information to make a wise choice. For example, informed consumers seek information online or consult family and friends about product sustainability before making a buying decision.

The findings support the view that consumers have been influenced by their ability to identify sustainable products and their prior awareness of environmental problems. It has been revealed that consumers' perceived knowledge influences their green product purchasing decisions, which has contributed to increased sales of eco-friendly products in Germany. For example, there has been a 15% annual increase in sustainable product consumption in Germany in recent years. Larsson and Arif Khan (2011) argue that Europe and North America together account for 96% of the global eco-market, and that German consumers are among the largest consumers of eco-products, since eco-knowledge and eco-motivation drive green purchasing.

According to Triebswetter and Hitchens (2005), "the stringency of environmental regulations in Germany has been evaluated in cross-national comparisons to be above average in comparison to other industrialized countries. This is also reflected in the environmental expenditure which reaches about 3% of German GDP" (p. 734).

The findings reveal that consumers in Germany place high emphasis on buying eco-friendly electronic products because the electronics sector has initiated several green initiatives to reduce the environmental impact of manufacturing, enhance energy efficiency, implement clean delivery systems, and improve product design. In this context, price is not a primary barrier to purchasing decisions; consumers are willing to pay more for environmentally friendly products because they have already acquired knowledge about the impact of conventional products on the environment. The findings show that consumer Purchase Intention covers 15 out of 17 items, while Declared Intention covers 13 out of 17 items. These results confirm that consumers will prefer paying higher prices for environmentally friendly products rather than buying non-environmentally friendly products at lower prices. Moser (2016) argues that consumers in Germany place greater emphasis on environmentally friendly products. While "price is one of the most important attributes when buying products" (Moser, 2016, p. 391), consumers remain willing to buy eco-friendly products at higher prices to enjoy the benefits of sustainable goods. Although consumers may perceive eco-friendly products as more expensive than conventional alternatives, high prices do not constitute a barrier to purchasing because consumers justify their decisions based on the additional benefits they derive from eco-friendly products (Olson, 2013).

Parsa et al. (2015) confirm that consumers are less price-sensitive when they have formed a strong intention to pay for premium products; thus, most consumers are willing to pay premium prices for environmentally friendly green products. Sammer and Wüstenhagen (2006) also declare that consumers are willing to pay 30% more than standard prices for energy-efficient electronic appliances, revealing that willingness to pay (WTP) is a major driver of green product consumption. Although green products may be expensive, consumers are still willing to trade higher prices for environmental benefits.

Since the findings confirm that an increasing number of consumers in Germany are prepared to pay premium prices to enjoy environmental benefits, business organizations could generate greater revenue by offering competitive prices for green products. However, a small proportion of consumers may still be hesitant to trade higher prices for environmental benefits; therefore, businesses should offer discounted prices for green products to achieve greater competitive market advantage. At present, environmental consciousness is high in Germany, and businesses can capitalize on this awareness to strengthen their competitive position. Stolz, Molina, Ramirez, et al. (2013) note a steady increase in environmental consciousness among German consumers in recent years. The authors argue that perception of green products is more advanced in Germany than in many other European countries, where consumers place greater emphasis on green products over conventional alternatives. Businesses should therefore take advantage of high green product awareness to launch marketing programs that further educate consumers about the health benefits of sustainable products. Moreover, organizations can leverage high awareness levels to design effective communication strategies that dismantle barriers to green product sales and boost competitive market performance. Advertising and promotion strategies are particularly effective instruments for addressing the egoistic motives of some consumers and creating conditions that facilitate green purchasing with minimal additional effort. Increased product visibility, attractiveness, and convenience can help organizations improve their brand image and be perceived as responsible businesses.

Implications for Business Practice

The implication for business practice is that it is high time for businesses globally to shift from manufacturing conventional products to eco-friendly green products, as consumers in Germany and other European countries are becoming increasingly sophisticated. Similarly, a growing number of consumers are shifting to green products based on the perceived benefits of consuming them. Business organizations should therefore make sound decisions by focusing on producing green products and moving away from products that may be harmful to the environment.

Since consumers in Europe and North America are becoming more discerning, businesses should implement eco-labelling programs to achieve sustainable marketing objectives and increase consumer awareness about product sustainability. Larsson et al. (2011) argue that eco-labelling is an effective marketing tool for raising consumer awareness. For example, businesses can produce products that meet ISO (International Organization for Standardization) requirements to facilitate product identification. Delafrooz, Taleghani, and Nouri (2013) identify eco-labelling as an effective marketing tool that can assist in promoting green product identification. The benefit of eco-labelling is that it facilitates consumers' buying decisions regarding environmentally friendly products (Andrea, 2016).

Retail stores can apply the findings of this study to improve consumers' buying decisions. Stolz, Molina, Ramirez, et al. (2013) point out that "the importance of environmental protection is steadily increasing due to the consumer's growing concern about the environment in retailing" (p. 394). Retailers should consider displaying products with demonstrable sustainable values. Since large retailers have the capacity to influence the supply chain, they can differentiate themselves by sourcing environmentally friendly products through environmental labels to improve consumer awareness. As Molina, Ramirez, et al. (2013) note, "retailers have various options to convince consumers about their sustainable products, such as improving the environmental quality of products, using environmental labels and banning products from the shelves that have a clear environmental impact" (p. 394).

References

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Larsson, S., & Arif Khan, M. (2011). A study of factors that influence green purchase. Umeå School of Business and Economics.

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