Factors Influencing Green Product Purchase Intention : A Structural Equation Modeling Approach Utilizing PEST Framework
Authors
-
Aakansha Dahiya
Assistant Professor, Faculty of Management & Commerce, SRM University, Sonipat - 131 029, Haryana
https://orcid.org/0009-0008-6576-6142
-
Poonam Bhatt
Assistant Professor, Department of Commerce, SRM University, Sonipat - 131 029, Haryana
https://orcid.org/0000-0002-5389-0575
-
Ashish Kumar
Assistant Professor (Research Cadre) (Corresponding Author), Faculty of Management & Commerce, Poornima University, Jaipur - 303 905, Rajasthan
https://orcid.org/0000-0001-9801-2402
-
Saurabh Kant
Assistant Professor, IMSAR, Maharshi Dayanand University, Rohtak - 124 001, Haryana
https://orcid.org/0000-0002-4606-1541
DOI:
https://doi.org/10.17010/ijom/2025/v55/i8/175210Keywords:
green product, sustainability, government policy, consumer intention, pest framework.Publication Chronology: Paper Submission Date : October 5, 2024 ; Paper sent back for Revision : March 22, 2025 ; Paper Acceptance Date : June 20, 2025 ; Paper Published Online : August 14, 2025
Abstract
Purpose : This study focused on the determinants of green purchasing behavior, specifically focusing on India’s rapid economic growth and the ensuing unsustainable consumption patterns.
Design/Methodology/Approach : The research employed a structural equations modeling approach within the political, economic, social, and technological (PEST) framework. Data was collected from 446 respondents through online and offline surveys utilizing simple random sampling. The analysis was conducted using SmartPLS software.
Findings : The study highlighted the necessity for India, as a fast-growing economy, to shift toward sustainable consumption. The finding revealed that PEST factors significantly influenced green purchase intentions among Indian consumers. It explored how political factors (PTFs), including government regulations and incentives, emerged as pivotal drivers, while social comparison theory mediated the effect of social norms on green buying behavior. Economic factors, such as income levels, price sensitivity, and financial incentives, further shaped purchasing decisions; technological advancements, including eco-friendly product innovation and sustainability-focused digital platforms, enhanced consumer engagement.
Practical Implications : The findings suggested that PEST factors significantly influenced green product purchase intention among Indian consumers. This underscored the importance of government policies, economic incentives, social influence, and technological support in driving sustainable consumption.
Originality/Value : This study enhanced the understanding of the drivers behind green product adoption, offering valuable insights for policymakers, businesses, and marketers. It supported promoting sustainable consumer behavior and achieving sustainable development goals, emphasizing the role of comprehensive strategies encompassing PEST dimensions.
Downloads
Published
How to Cite
Issue
Section
References
1) Ahmed, N., Li, C., Khan, A., Qalati, S. A., Naz, S., & Rana, F. (2021). Purchase intention toward organic food among young consumers using a theory of planned behavior: Role of environmental concerns and environmental awareness. Journal of Environmental Planning and Management, 64(5), 796–822. https://doi.org/10.1080/09640568.2020.1785404
2) Alam, M. N., Ogiemwonyi, O., Hago, I. E., Azizan, N. A., Hashim, F., & Hossain, M. S. (2023). Understanding consumer environmental ethics and the willingness to use green products. SAGE Open, 13(1). https://doi.org/10.1177/21582440221149727
3) AlQershi, N. A., Saufi, R. B., Yaziz, M. F., Ramayah, T., Muhammad, N. M., & Yusoff, M. N. (2023). The relationship between green entrepreneurship, human capital, and business sustainability in Malaysian large manufacturing firms: An empirical study. Technological Forecasting and Social Change, 192, Article ID 122529. https://doi.org/10.1016/j.techfore.2023.122529
4) Ameen, K., & Naeem, S. B. (2021). Demographic differences in the perceived news literacy skills and sharing behavior of information professionals. Information Discovery and Delivery, 49(1), 16–28. https://doi.org/10.1108/IDD-02-2020-0015
5) Ansu-Mensah, P. (2021). Green product awareness effect on green purchase intentions of university students: An emerging market's perspective. Future Business Journal, 7(1), Article No. 48. https://doi.org/10.1186/s43093-021-00094-5
6) Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. https://doi.org/10.1007/BF02723327
7) Batwara, A., Sharma, V., Makkar, M., & Giallanza, A. (2022). An empirical investigation of green product design and development strategies for eco industries using Kano model and fuzzy AHP. Sustainability, 14(14), 8735. https://doi.org/10.3390/su14148735
8) Bazhan, M., Sabet, F. S., & Borumandnia, N. (2023). Development and validation of a questionnaire to examine determinants of consumer intentions to purchase organic food. BMC Nutrition, 9(1), Article no. 74. https://doi.org/10.1186/s40795-023-00731-y
9) Begum, S., Ashfaq, M., Xia, E., & Awan, U. (2022). Does green transformational leadership lead to green innovation? The role of green thinking and creative process engagement. Business Strategy and the Environment, 31(1), 580–597. https://doi.org/10.1002/bse.2911
10) Bhatti, K. K., & Negi, A. (2018). Determinants of green marketing leading to sustainable competitive advantage for retailers within the Delhi region. Indian Journal of Marketing, 48(8), 580–597. https://doi.org/10.17010/ijom/2018/v48/i8/130540
11) Bian, J., Zhang, G., & Zhou, G. (2020). Manufacturer vs. consumer subsidy with green technology investment and environmental concern. European Journal of Operational Research, 287(3), 832–843. https://doi.org/10.1016/j.ejor.2020.05.014
12) Chaihanchanchai, P., & Anantachart, S. (2023). Encouraging green product purchase: Green value and environmental knowledge as moderators of attitude and behavior relationship. Business Strategy and the Environment, 32(1), 289–303. https://doi.org/10.1002/bse.3130
13) Chen, C.-C., Chen, C.-W., & Tung, Y.-C. (2018). Exploring the consumer behavior of intention to purchase green products in Belt and Road countries: An empirical analysis. Sustainability, 10(3), 854. https://doi.org/10.3390/su10030854
14) D'Souza, C., Taghian, M., Sullivan-Mort, G., & Gilmore, A. (2015). An evaluation of the role of green marketing and a firm's internal practices for environmental sustainability. Journal of Strategic Marketing, 23(7), 600–615. https://doi.org/10.1080/0965254X.2014.1001866
15) Ejdys, J., & Szpilko, D. (2022). European green deal — Research directions. A systematic literature review. Economics and Environment, 81(2), 8–38. https://doi.org/10.34659/eis.2022.81.2.455
16) Ekins, P., & Zenghelis, D. (2021). The costs and benefits of environmental sustainability. Sustainability Science, 16(3), 949–965. https://doi.org/10.1007/s11625-021-00910-5
17) Farooque, M., Zhang, A., Thürer, M., Qu, T., & Huisingh, D. (2019). Circular supply chain management: A definition and structured literature review. Journal of Cleaner Production, 228, 882–900. https://doi.org/10.1016/j.jclepro.2019.04.303
18) Fatoki, O. (2020). Factors influencing the purchase of energy-efficient appliances by young consumers in South Africa. Foundations of Management, 12(1), 151–166. https://doi.org/10.2478/fman-2020-0012
19) Fernandes, S., Sathish, M., & Shrivastava, P. (2024). Effect of consciousness in sustainable consumption habits on purchase intention of green products: Comparison study between India and USA. Indian Journal of Marketing, 54(10), 8–24. https://doi.org/10.17010/ijom/2024/v54/i10/174602
20) Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
21) Gast, J., Gundolf, K., & Cesinger, B. (2017). Doing business in a green way: A systematic review of the ecological sustainability entrepreneurship literature and future research directions. Journal of Cleaner Production, 147, 44–56. https://doi.org/10.1016/j.jclepro.2017.01.065
22) Ghose, A., & Chandra, B. (2018). Consumption behavior towards green durable products: The moderating role of demographics. Indian Journal of Marketing, 48(6), 22–41. https://doi.org/10.17010/ijom/2018/v48/i6/127834
23) Gupta, S., Dangayach, G. S., Singh, A. K., Meena, M. L., & Rao, P. N. (2018). Implementation of sustainable manufacturing practices in Indian manufacturing companies. Benchmarking: An International Journal, 25(7), 2441–2459. https://doi.org/10.1108/BIJ-12-2016-0186
24) Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
25) Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management & Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130
26) Hariram, N. P., Mekha, K. B., Suganthan, V., & Sudhakar, K. (2023). Sustainalism: An integrated socio-economic-environmental model to address sustainable development and sustainability. Sustainability, 15(13), 10682. https://doi.org/10.3390/su151310682
27) Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
28) Hong, I.-H., Chiu, A. S., & Gandajaya, L. (2021). Impact of subsidy policies on green products with the consideration of consumer behaviors: Subsidy for firms or consumers? Resources, Conservation and Recycling, 173, Article ID 105669. https://doi.org/10.1016/j.resconrec.2021.105669
29) Jabeen, G., Yan, Q., Ahmad, M., Fatima, N., & Qamar, S. (2019). Consumers' intention-based influence factors of renewable power generation technology utilization: A structural equation modeling approach. Journal of Cleaner Production, 237, Article ID 117737. https://doi.org/10.1016/j.jclepro.2019.117737
30) Jain, S., & Kamble, S. C. (2021). An analytical study of buyers' behavior towards automatic fuel pricing and price smoothing in India. Prabandhan: Indian Journal of Management, 14(2), 40–59. https://doi.org/10.17010/pijom/2021/v14i2/157692
31) Jayanthi, M. (2015). Consumers' awareness towards organic food products in Coimbatore District. Indian Journal of Marketing, 45(12), 7–23. https://doi.org/10.17010/ijom/2015/v45/i12/83996
32) Joshi, Y., & Rahman, Z. (2015). Factors affecting green purchase behaviour and future research directions. International Strategic Management Review, 3(1–2), 128–143. https://doi.org/10.1016/j.ism.2015.04.001
33) Junarsin, E., Pangaribuan, C., Wahyuni, M., Hidayat, D., Putra, O. P., Maulida, P., & Soedarmono, W. (2022). Analyzing the relationship between consumer trust, awareness, brand preference, and purchase intention in green marketing. International Journal of Data and Network Science, 6(3), 915–920. https://doi.org/10.5267/j.ijdns.2022.2.005
34) Karurkar, S., Unnikrishnan, S., & Panda, S. S. (2018). Study of environmental sustainability and green manufacturing practices in the Indian automobile industry. SSRN. https://ssrn.com/abstract=3283358
35) Kasliwal, N., & Agarwal, S. (2015). A study on Indian consumers' attitude and choice of preferences for green attributes of the hotel industry. Prabandhan: Indian Journal of Management, 8(1), 21–33. https://doi.org/10.17010/pijom/2015/v8i1/61258
36) Khan, N. A., Hassan, S., Pravdina, N., & Akhtar, M. (2023). Drivers of sustainability: Technological and relational factors influencing young consumers' green buying intentions and green actual consumption behavior. Young Consumers, 24(6), 686–703. https://doi.org/10.1108/YC-09-2022-1610
37) Kim, H. Y., & Chung, J.-E. (2011). Consumer purchase intention for organic personal care products. Journal of Consumer Marketing, 28(1), 40–47. https://doi.org/10.1108/07363761111101930
38) Kourav, V., & Sharma, A. (2023). Exploring success factors for new product selling in fast-moving consumer goods. Indian Journal of Marketing, 53(3), 8–25. https://doi.org/10.17010/ijom/2023/v53/i3/172653
39) Kulshreshtha, K., Sharma, G., & Bajpai, N. (2023). Conjoint analysis: The assumptions, applications, concerns, remedies, and future research direction. International Journal of Quality & Reliability Management, 40(2), 607–627. https://doi.org/10.1108/IJQRM-07-2021-0199
40) Kushwaha, G. S., & Sharma, N. K. (2015). Educated young consumer purchase behavior towards green products: An empirical study in India. International Journal of Green Computing (IJGC), 6(1), 48–63. https://doi.org/10.4018/IJGC.2015010105
41) Laheri, V. K. (2020). Moderating effect of facilitators and barriers for purchase of green products in India. Indian Journal of Marketing, 50(3), 7–21. https://doi.org/10.17010/ijom/2020/v50/i3/151026
42) Lee, J., Liu, V., & Cheng, C. (2023). Effect of green advertising attitude on collectivist consumer behavior: An integrative approach. Asia Pacific Journal of Marketing and Logistics, 35(12), 3008–3031. https://doi.org/10.1108/APJML-05-2022-0437
43) Li, D. (2025). Impact of green advertisement and environmental knowledge on intention of consumers to buy green products. BMC Psychology, 13(1), Article no. 220. https://doi.org/10.1186/s40359-025-02538-x
44) Li, Z., Zheng, C., Liu, A., Yang, Y., & Yuan, X. (2022). Environmental taxes, green subsidies, and cleaner production willingness: Evidence from China's publicly traded companies. Technological Forecasting and Social Change, 183, Article ID 121906. https://doi.org/10.1016/j.techfore.2022.121906
45) Lotfi, M., Yousefi, A., & Jafari, S. (2018). The effect of emerging green market on green entrepreneurship and sustainable development in knowledge-based companies. Sustainability, 10(7), 2308. https://doi.org/10.3390/su10072308
46) Majeed, M. U., Aslam, S., Murtaza, S. A., Attila, S., & Molnár, E. (2022). Green marketing approaches and their impact on green purchase intentions: Mediating role of green brand image and consumer beliefs towards the environment. Sustainability, 14(18), 11703. https://doi.org/10.3390/su141811703
47) Mehraj, D., Qureshi, I. H., Singh, G., Nazir, N. A., Basheer, S., & Nissa, V. U. (2023). Green marketing practices and consumer behavior: Demographic differences among young consumers. Business Strategy and Development, 6(4), 571–585. https://doi.org/10.1002/bsd2.263
48) Mishra, V., & Kulshreshtha, K. (2023). Green product purchase decision: A conceptual model of factors influencing the decision of Indian consumers. British Food Journal, 125(9), 3160–3174. https://doi.org/10.1108/BFJ-09-2022-0783
49) Mweshi, G. K., & Sakyi, K. (2020). Application of sampling methods for the research design. Archives of Business Research, 8(11), 180–193. https://doi.org/10.14738/abr.811.9042
50) Nekmahmud, M., & Fekete-Farkas, M. (2020). Why not green marketing? Determinants of consumers' intention to green purchase decision in a new developing nation. Sustainability, 12(19), 2880. https://doi.org/10.3390/su12197880
51) Ogiemwonyi, O., Alam, M. N., Alshareef, R., Alsolamy, M., Azizan, N. A., & Mat, N. (2023). Environmental factors affecting green purchase behaviors of the consumers: Mediating role of environmental attitude. Cleaner Environmental Systems, 10, Article ID 100130. https://doi.org/10.1016/j.cesys.2023.100130
52) Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
53) Premi, H., Sharma, M., & Dangayach, G. S. (2021). Green marketing: A systematic literature review. Indian Journal of Marketing, 51(8), 39–57. https://doi.org/10.17010/ijom/2021/v51/i8/165761
54) Qi, X., & Ploeger, A. (2019). Explaining consumers' intentions towards purchasing green food in Qingdao, China: The amendment and extension of the theory of planned behavior. Appetite, 133, 414–422. https://doi.org/10.1016/j.appet.2018.12.004
55) Reddy, K. P., Chandu, V., Srilakshmi, S., Thagaram, E., Sahyaja, C., & Osei, B. (2023). Consumers' perception of green marketing towards eco-friendly fast-moving consumer goods. International Journal of Engineering Business Management, 15. https://doi.org/10.1177/18479790231170962
56) Rosner, Y., Amitay, Z., & Perlman, A. (2022). Consumer's attitude, socio-demographic variables, and willingness to purchase green housing in Israel. Environment, Development and Sustainability, 24(4), 5295–5316. https://doi.org/10.1007/s10668-021-01659-8
57) Sharma, K., Arora, R., Nangia, R., Singel, R., Dharmveer, & Dixit, S. (2022a). Effects of green manufacturing and technological innovations on sustainable development. Materials Today: Proceedings, 69(Part_2), 266–270. https://doi.org/10.1016/j.matpr.2022.08.475
58) Sharma, N., Lal, M., Goel, P., Sharma, A., & Rana, N. P. (2022b). Being socially responsible: How green self-identity and locus of control impact green purchasing intentions? Journal of Cleaner Production, 357, Article ID 131895. https://doi.org/10.1016/j.jclepro.2022.131895
59) Shen, B., Cao, Y., & Xu, X. (2020). Product line design and quality differentiation for green and non-green products in a supply chain. International Journal of Production Research, 58(1), 148–164. https://doi.org/10.1080/00207543.2019.1656843
60) Singh, S., & Gupta, A. (2021). An ISM modeling for factors affecting the purchase of green products. Journal of Modelling in Management, 16(1), 103–123. https://doi.org/10.1108/JM2-05-2019-0099
61) Suki, N. M. (2016). Green product purchase intention: Impact of green brands, attitude, and knowledge. British Food Journal, 118(12), 2893–2910. https://doi.org/10.1108/BFJ-06-2016-0295
62) Sun, Y., & Wang, S. (2020). Understanding consumers' intentions to purchase green products in the social media marketing context. Asia Pacific Journal of Marketing and Logistics, 32(4), 860–878. https://doi.org/10.1108/APJML-03-2019-0178
63) Sun, Y., Li, T., & Wang, S. (2022). “I buy green products for my benefits or yours”: Understanding consumers' intention to purchase green products. Asia Pacific Journal of Marketing and Logistics, 34(8), 1721–1739. https://doi.org/10.1108/APJML-04-2021-0244
64) Tandon, A., Dhir, A., Kaur, P., Kushwah, S., & Salo, J. (2020). Why do people buy organic food? The moderating role of environmental concerns and trust. Journal of Retailing and Consumer Services, 57, Article ID 102247. https://doi.org/10.1016/j.jretconser.2020.102247
65) Taneja, C., & Kalra, S. (2024). Antecedents of status consumption of fashion brands–The impact of sustainability in the post-COVID era. Indian Journal of Marketing, 54(3), 26–43. https://doi.org/10.17010/ijom/2024/v54/i3/171933
66) Tang, Y., Wang, X., & Lu, P. (2014). Chinese consumer attitude and purchase intent towards green products. Asia-Pacific Journal of Business Administration, 6(2), 84–96. https://doi.org/10.1108/APJBA-05-2013-0037
67) Tara, K., Singh, S., & Kumar, R. (2015). Green marketing: The new strategic imperative by firms in India. Indian Journal of Marketing, 45(7), 19–34. https://doi.org/10.17010/ijom/2015/v45/i7/79926
68) Testa, F., Iraldo, F., Vaccari, A., & Ferrari, E. (2015). Why eco-labels can be effective marketing tools: Evidence from a study on Italian consumers. Business Strategy and the Environment, 24(4), 252–265. https://doi.org/10.1002/bse.1821
69) Thakkar, R. S. (2021). Green marketing and sustainable development challenges and opportunities. A Global Journal of Social Sciences, 4(4), 58–65. https://www.researchgate.net/publication/360808759
70) Voorhees, C. M., Brady, M. K., Calantone, R., & Ramirez, E. (2016). Discriminant validity testing in marketing: An analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing Science, 44(1), 119–134. https://doi.org/10.1007/s11747-015-0455-4
71) Wang, S., Wang, J., Yang, F., Li, J., & Song, J. (2020). Determinants of consumers' remanufactured products purchase intentions: Evidence from China. International Journal of Production Research, 58(8), 2368–2383. https://doi.org/10.1080/00207543.2019.1630767
72) Weis, L., & Nikolić, G. (2024). Discussing the role of innovation in green entrepreneurship and development. In A. Grigorescu & J. V. Andrei (eds.), Entrepreneurship and development for a green resilient economy (pp. 1–21). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83797-088-920241001
73) Wekeza, S. V., & Sibanda, M. (2019). Factors influencing consumer purchase intentions of organically grown products in Shelly Centre, Port Shepstone, South Africa. International Journal of Environmental Research and Public Health, 16(6), 956. https://doi.org/10.3390/ijerph16060956
74) Wu, Y., & Tham, J. (2023). The impact of environmental regulation, environment, social and government performance, and technological innovation on enterprise resilience under a green recovery. Heliyon, 9(10), Article ID e20278. https://doi.org/10.1016/j.heliyon.2023.e20278
75) Yener, G., Secer, A., & Ghazalian, P. L. (2023). What factors influence consumers to buy green products? An analysis through the motivation–opportunity–ability framework and consumer awareness. Sustainability, 15(18), 13872. https://doi.org/10.3390/su151813872
76) Zhang, X., & Dong, F. (2020). Why do consumers make green purchase decisions? Insights from a systematic review. International Journal of Environmental Research and Public Health, 17(18), 6607. https://doi.org/10.3390/ijerph17186607
