Willingness to Pay More for Green Products: a critical challenge for Gen Z

Abstract

Digital natives, with a sense of equality, social justice and environmental awareness, young people from Generation Z value money more than previous generations and, as such, are conscientious in their consumption choices. The consumption of greener products can contribute to achieving the sustainability goals imposed on societies. The study explores the determinants of Generation Z youth’s demand for green products and how they influence their willingness to pay more. A quantitative analysis was carried out through a questionnaire in which 927 Portuguese Generation Z consumers of green products participated. First, a descriptive statistical analysis was carried out. Then the Partial Least Square method was applied to explore the relationship between the determinants of demand for green products and the willingness to pay more for them. The results showed that environmental concerns, green future estimation and green perceived quality are potential determinants of Generation Z’s consumption of green products and positively influence willingness to pay more for green products. Green perceived benefits have the effect put. This study presents the first evidence of how environmental concerns, future green vision, green perceived quality and green benefits by young Portuguese Generation Z consumers can influence the willingness to pay more for green products. It also demonstrates how green products can be used as signals.