Bottling it? Consumer responses to less environmentally friendly products : A choice experiment for water in plastic packaging in the UK

Abstract

Consumers have several options when confronted with less environmentally friendly packaging like water in single use plastic bottles– they can ignore environmental concerns and proceed with a purchase, refuse to buy any such product, seek out a less damaging version like water in biodegradable bottles, and/or engage in offsetting/compensatory behavior such as donating to a charity. Understanding how consumers value these options is an important academic and management challenge. To address this, a stated choice experiment is employed. It considers the preferences of a representative sample of UK consumers for bottled water with the attributes: packaging (PET versus biodegradable), charity donation (environment/social/none), origin (domestic/foreign), and price. Data were analyzed using random parameter logit modeling, incorporating a latent variable into the model, which captured environmentally conscious behavior. Based on the model estimations, domestic origin, biodegradable packaging, and charity donations (both for environmental and social causes) positively affect decision-makers’ perceived utility. In keeping with moral consistency theory, as consumers’ level of nature relatedness and green consumption values increase, biodegradable packaging becomes more preferable than nonbiodegradable packaging, and the likelihood of refusing to purchase any bottled water option, rises, respectively. In contrast, high levels of materialist values are associated with lower environmental consciousness. The paper provides evidence to managers regarding consumers’ valuation of more environmentally friendly packaging, and strategies to increase uptake.