Professor Matthew Gorton from Corvinus University and the National Innovation Center for Rural Enterprise, and colleagues, investigated how the type of packaging (biodegradable plastic or non-biodegradable PET), a charitable donation being made alongside purchase, origin (local or foreign), and price impact on U.K. consumers’ willingness to pay for bottled water.
They also investigated the influence of consumers’ levels of nature relatedness and green consumption values on purchase. The findings were first published in the Journal of Environmental Management.
They found U.K. consumers are willing to pay more for water in biodegradable plastic bottles compared to non-biodegradable PET – up to 49 p (cca. 240 HUF) extra.
“While consumers are willing to pay more for biodegradable packaging, at present the costs of biodegradable plastic packaging are similar to, or greater than, the average willingness to pay identified in the study,” says Professor Gorton. “Therefore, it is difficult for manufacturers to pass on the full additional cost of biodegradable plastics to consumers when switching from PET containers,” adds fellow researcher and associate professor Áron Török from Corvinus University.
As price was also found to be the most important aspect consumers consider when deciding whether to make a purchase or not, the expansion of biodegradable plastic hinges on cost-reducing innovations.
As consumers’ level of nature relatedness increases, indicating a connection with nature, biodegradable packaging becomes more preferable than non-biodegradable. However, higher levels of green consumption values, related to environmental concern when buying, are associated with opting out of purchasing bottled water altogether.
While consumers tend to prefer local products and will pay extra for them, the origin on water had a relatively modest effect on willingness to pay in this study. Therefore, companies must do more than just emphasise the localness of their product.
Consumers were also more willing to pay for bottled water if a charitable donation was being made with their purchase.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
