The Effect of Price Level of Eco-Friendly Products on Eco-Friendliness and Purchasing Intention: Moderated Mediating Effect of Eco-Friendliness-Quality Belief

Purpose: The objective of this study is to examine the efficacy of price strategies employed by retailers in the distribution industry to promote sales of Eco-friendly products. The study seeks to investigate the impact of price levels on eco-friendliness for Eco-friendly products considering various price levels, including high, low, and discounted prices. The study also examined the mediating effect of Eco-friendliness on the relationship between price level and purchase intention. Additionally it was investigated whether consumers’ perceptions of quality and Eco-friendliness influence the relationship between Eco-friendliness evaluation and purchase intention. Research design, data, and methodology: This study was conducted a 2 (price level:high vs. low)×2 (product type: Eco-friendly vs. General) between subjects design. In Study 1, the price level was analyzed between high-priced and low-priced groups, and in Study 2, the price level was analyzed between high-priced and discounted price groups. Results: The study’s findings included two notable conclusions. First Eco-friendliness was found to be highly evaluated when the price level was high. Second, Eco-friendliness evaluation had a mediating effect in the relationship between price level and purchase intention. The results indicated that when Eco-friendly products are expensive Eco-friendliness evaluation increases and purchase intention also increases. Third, the mediating effect of Eco-friendliness-Quality belief was confirmed and consumers with a strong Eco-friendliness-Quality belief demonstrated a direct correlation between an elevated Eco-friendliness evaluation of the product and heightened purchase intention. Conclusion:This study endeavored to present academic insights and practical strategies necessary for the growth of the eco-friendly product market. It sought to achieve this by understanding the mechanism between Eco-friendliness evaluation and purchase intention. The theoretical contributions of this study are threefold. First, it deepens existing research by demonstrating that expensive Environment-friendly products place significant value on Eco-friendliness. Second, it verifies the mediating role that higher price levels are associated with higher Eco-friendliness evaluations. The empirical effect of Eco-friendliloess evaluations on purchase intention was also investigated. Third, by examining the interplay between lay theory and consumer behavior, the psychological underpinnings that a group of consumers with strong Eco-friendliness-quality beliefs exerts a positive influence on eco-friendly product purchasing were elucidated. The practical implications of this study are twofold. Firstly, the retail distribution industry should consider ways to enhance consumers’ awareness of Eco-friendliness in the environment-friendly product market. Secondly, high-priced strategies should be employed to augment the value of Environment-friendly products. It is imperative to refrain from employing low-cost or discount strategies as these may lead consumers to question the Eco-friendliness of the product. Furthermore companies must prioritize enhancing not only the Eco-friendliness of their products but also their quality, authenticity, and reliability to expand the market segment of consumers with strong eco-quality beliefs.