Do People Prefer Buying Products with Green Labels?

Do People Prefer Buying Products with Green Labels?

Himanshu Chauhan
Under the Guidance of Mr. Upnishad Mishra

Master of Business Administration

School of Business Galgotias University

ABSTRACT
This research investigates the evolving consumer preferences for green labelled products in urban markets, underscoring the increasing importance of sustainability in modern purchasing behaviour. With growing awareness about climate change, environmental degradation, and ethical consumption, more consumers are expressing interest in products that claim to be environmentally friendly. Green labels—certifications or markings that indicate adherence to environmental standards—play a crucial role in shaping such preferences by serving as visible cues of sustainability.

The study adopts a mixed-method approach, utilizing both descriptive and exploratory research designs. Primary data was collected through structured surveys from a sample of 200 urban consumers aged 18 to 50. The research aimed to assess not only the extent of consumer awareness but also the impact of demographic variables such as age, gender, income, and education on purchasing decisions. Key variables examined include consumer trust in green certifications, perceived product quality, brand reputation, environmental concern, and price sensitivity.

The findings indicate a high level of awareness and trust in green labels among consumers, with 78% of respondents recognizing green labels and 100% expressing trust in them. However, purchasing behaviour does not always align with this awareness. Only 23.5% of respondents are consistently willing to pay a premium for eco-labelled products, while 41% report conditional willingness depending on price, necessity, or product category. Notably, environmental concern emerged as the primary motivation for green purchases, followed by health-related reasons.

Despite the positive outlook, challenges such as greenwashing, affordability, and limited product availability remain. The study recommends enhancing the credibility and transparency of green labels, launching targeted awareness campaigns, and implementing supportive policy regulations to curb misleading claims. By addressing these issues, businesses and policymakers can foster more sustainable consumption patterns and encourage widespread adoption of environmentally responsible products.