Understanding Green Product Perception: The role of Price Sensitivity and Brand Awareness

Abstract

This study provides insights into the role of price sensitivity and brand awareness in Generation Z’s green product perception. A quantitative method was used with the sample of 496 Generation Z respondents in Vietnam in the form of online survey questionnaires. Pearson correlations were employed to provide deeper analysis on the relationship amongst green product awareness factors including price sensitivity, brand awareness, product certification, product familiarity and customers’ trustworthiness. The study suggests that two main factors, namely brand awareness and price sensitivity were perceived as main influential factors to green product awareness. On the other hand, product certification, product familiarity and customers’ trustworthiness have less significance compared to the above factors. It is surprising that green certification is not the key determinant affecting the perception of green products while other factors such as product price and brand had significant impact. Green certifications on consuming products build trust and have considerable effect on green perception, they may also act as barriers due to cost concerns or the authenticity of the product itselves. The research findings highlighted the need for deeper understanding of the role of price sensitivity and brand awareness to increase buyers’ perception. Price modification and awareness programs should be used to bridge the gap between awareness and action. These findings provide valuable insights for businesses and marketers in promoting “eco-conscious” through pricing and branding on consuming products.