Determinants of purchase decisions and willingness to spend on green products

Abstract

One of the most essential areas of consumer behavior is decision making of buyers and these buying decisions of people have changed dramatically for generations . The study examines the factors that influence buying decisions of Davao City consumers and examine the association between these purchase decision and the ability of consumers to spend willingly on green products. Data were collected by utilizing questionnaires and stratified sampling technique with 310 respondents. The determinants that influence buyers purchase decisions found a somewhat influential level on Davao City consumers. More than two thirds of the respondents expressed their intentions to pay up to more than 10% of the current price of green product .Thus, the participants were able to value green products as they expressed their desire to pay more for health reasons and practical benefits. Statistical analysis revealed that income factor ( economic circumstances) and psychological factors can greatly influenced buyers behavior towards paying more for green product. Thus income adequacy, motivations, and perceptions, are good predictors of buyers willingness to pay for green products. Key word: buyers behavior, purchase decisions , willingness to spend , green products.