Green Product Innovation and Financial Resource Availability: Multi-Actor Model Approach

Green Product Innovation and Financial Resource Availability: Multi-Actor Model Approach

Haroon ur Rashid Khan (Nanjing University of Information Sciences and Technology, China) and Zubair Rashid Khan (COMSATS University, Pakistan)
DOI: 10.4018/978-1-7998-2173-1.ch006

Abstract

There is dire and critical need to deeply understand green consumers, given the implications for marketers to comprehend and communicate green buying patterns on the one hand, and to design and strategize both product range and motivation and financing available to develop them on the other hand. The chapter is built on theory Rational Choice and Revealed preferences Theory, while extending using experimental approaches involving multi actors' model. The multiple actors included consumer with their preferred order of choices, entrepreneurs with their preferences, and financiers with their preferred order, under the budget constraint. This chapter interacts with practical aspects of green product innovation behavior in general, and advances research with a focus on specific behaviors, highly desired in this field investigating the rise of green purchases. Globally, consumers are increasingly acquiring green products, and this study indicates to an improved understanding of the decision-making process of consumers' green product.
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Introduction

Meanwhile, the upsurge of green consumption has garnered inquisitiveness from academic circles over the years (Chang & Chen, 2013; Codini, Miniero, & Bonera, 2018; H. ur R. Khan, Ali, Olya, Zulqarnain, & Khan, 2018; Syed Abdul Rehman Khan, Golpîra, & Yu, 2018; Syed Abdul Rehman Khan & Qianli, 2017b; Miniero, Codini, Bonera, Corvi, & Bertoli, 2014; Zhang, Khan, Kumar, Golpîra, & Sharif, 2019). The prior researchers have attributed this drift in buying of green innovative products to the several reasons. It is believed to be either a consequence of improved environmental knowledge driven by consumers’ environmental concerns, (Abeliotis, Koniari, & Sardianou, 2010; Diamantopoulos, Schlegelmilch, Sinkovics, & Bohlen, 2003; Syed Abdul Rehman Khan & Qianli, 2017a; Z. Khan & Nicholson, 2014, 2014; Reynolds, Simintiras, & Diamantopoulos, 2003; Walker, 2013), or the result of socially responsible decision-making processes imminent after personal ethical considerations or a set of sustainable and green personal principles and attitudes (Anderson Jr & Cunningham, 1972; Antil, 1984; S. Abdul Rehman Khan, Jian, Yu, Golpîra, & Kumar, 2019; Syed Abdul Rehman Khan, Dong, Zhang, & Khan, 2017; Syed Abdul Rehman Khan, Sharif, Golpîra, & Kumar, 2019; Syed Abdul Rehman Khan, Golpîra, et al., 2018; Webster Jr, 1975; Yu, Golpîra, & Khan, 2018), other motives that may describe the increase of green consumption, are the attributes and areas of green products innovation for instance.

Environmental consciousness and gearing attitudes on the way to “green consumption” are evident in world leading economies. Despite the popularity of green products, the market share of these products continues to be low in the entire market (Bray, Johns, & Kilburn, 2011; Syed Abdul Rehman Khan, 2019; Syed Abdul Rehman Khan, Golpîra, et al., 2018; Zhang et al., 2019). Several authors including (Babiak & Trendafilova, 2011; H. ur R. Khan et al., 2018) have explored young consumers’ attitudes toward eco-friendly products. Since the environmental movement of the 1960s, green consumption has been identified as a pro-environmental behavior (Alwitt & Pitts, 1996; Syed Abdul Rehman Khan, Dong, & Yu, 2016; Syed Abdul Rehman Khan et al., 2017; Syed Abdul Rehman Khan, Zhang, Anees, et al., 2018; Mostafa, 2006; Shrum, McCarty, & Lowrey, 1995) . A green consumer cogitates physical environmental concerns in consumption decisions (Syed Abdul Rehman Khan & Qianli, 2017a, 2017b; Syed Abdul Rehman Khan, Zhang, Golpîra, & Dong, 2018; Ozusaglam, 2012; Shrum et al., 1995). Thus, a green purchase occurs when consumers procure green innovative products related to energy conservation, low carbon emission, solid waste reduction etc (Mostafa, 2006).

With few exceptions, European advanced economies have high consumptions. Thus, it is vital to understand these population segments in terms of numbers and purchasing behavior of eco-friendly products with green innovative practices. Although new generation is getting more actively involved in addressing environmental issues, demonstrating high levels of interest in learning about environmental problems and even hoping for careers in sustainable companies besides entrepreneurial intentions for developing such products. The issue of affordability in consumers choices and availability of financial resources from financiers for green innovation to tackle environmental and energy related issues is a major concern.

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