Abstract
Past research has underlined various reasons limiting the use of green packagings, such as the lack of environmental awareness, support, cost concerns, and insufficient enforcement from governments. However, extant literature also indicates growing attention to green packaging usage among consumers. This chapter takes on the later direction by attempting to understand the elements influencing consumers' willingness to pay for green packaging. The chapter proposes five hypotheses where product pricing, quality, design, consumer knowledge, and religiosity influence willingness to pay. The study gathers quantitative data from an online survey conducted in Brunei Darussalam. The chapter uses partial least square structural equation modeling (PLS-SEM) analysis. Results indicate that only the pricing factor significantly influences consumers' willingness to pay for green packaging. Findings from this research add to the body of knowledge about factors influencing consumers' willingness to pay for green packaging and perhaps encourage the switch from conventional to green packaging.
TopIntroduction
Many studies have been done on green packaging and consumers’ willingness to pay for green packaging in many countries, such as China, Vietnam, India, and the USA. However, there has been no study on consumer willingness to pay for green packaging in Brunei Darussalam (henceforth Brunei). To enrich the literature and ensure that environmental sustainability approaches are practised in lesser-known markets, it is equally beneficial to conduct green packaging research and consumers’ willingness to pay in a small country such as Brunei. Brunei is a small Islamic state located along the coast of Borneo Island and shares borders with Malaysia. It has an estimated population of more than 420,000 people and is among the highest GDP income per capita in the Southeast Asian region (DEPS, 2021). Brunei Darussalam has considerable petroleum and natural gas reserves and lies within the South China Sea's strategic and economically prosperous region (Congressional Research Service, 2020). Brunei advocates the United Nations Sustainable Development Goals (SDG), which is a set of global objectives for equitable and long-term global prosperity for people and the planet that encompasses and concerns the global ecosystems and local communities. The goal is to eradicate poverty, safeguard the environment, and ensure that everyone lives in peace and prosperity today and in the future (Stephen et al., 2017).
The Brunei government takes a nationwide approach to environmental preservation by implementing various initiatives. Among the various initiative undertaken by the government is the “No Plastic Bag Weekend” initiative. This initiative is in line with the purpose of Brunei Vision 2035 (Wawasan Brunei 2035), which aims to cultivate a sustainable environment, clean and green environment (Wawasan Brunei, 2018). The government launched the “No Plastic Bag Weekend program” in 2011, a voluntary agreement with 11 establishments and enterprises to stop giving out plastic bags on weekends. The campaign was extended in 2012 to include Fridays, making it an entire 'green' weekend. Starting with the addition of Thursdays in connection with Earth Day events that fit the theme “End Plastic Pollution,” the program was expanded in 2018 to incorporate the remaining days of the week, culminating in the “No Plastic Bag Everyday Initiative”. The distribution of single-use plastic bags has been phased out of participating stores since January 1, 2019. The number of businesses participating has also increased; there are now over 60 retailers participating, including most of the major supermarkets (IGES, 2019).
The Brunei government is committed to the SDGs, but little effort has been made to study green packaging. Although efforts have been made such as “no plastic bags every day”, “Plastic Bottle Free”, “Reduce the use of Styrofoam”, “3R”, and so forth. However, the product packaging itself is not packaged in green packaging. Even when people purchase fruits, for example, it is still wrapped in plastic containers or Styrofoam. Despite government efforts to achieve the SDGs, much plastic packaging is still used. Therefore, this research benefits businesses and policymakers because they play an essential role in the community in spreading awareness about green packaging, which is mainly used and distributed by companies.
The study aims to examine the factors that affect customers’ willingness to pay for green packaging in Brunei. The study also aims to understand the reasons for purchasing green packaging, identify consumer preferences for different forms of green packaging, contribute to the knowledge about eco-friendly packaging to the advancement of sustainability, analyse consumer viewpoints on green packaging, and determine the extent toward which religion influences the purchasing of sustainable packaging. Against this background, this research addresses the following questions:
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Are consumers prepared to pay extra for eco-friendly products?
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What is sustainable packaging design?
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Do customers care about packaging?
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What are the important qualities for packaging to be green?
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Does religion influence how customers behave toward the environment?
Key Terms in this Chapter
Packaging: This refers to the materials used to wrap and protect products during transportation, storage, and display. It serves multiple purposes, such as ensuring product safety, providing information, and facilitating marketing. The choice of packaging materials and design can significantly impact the product's environmental footprint and the consumer's brand perception.
Green Packaging: Employs sustainable practices like biodegradable materials, waste reduction, and recycling to minimise environmental impact, promoting responsible resource management and a healthier planet.
Brunei Darussalam: Is a small Southeast Asian country on Borneo Island, with approximately 460,000 people. It is one of the world's richest countries due to its abundant oil and gas reserves, and its economy is heavily dependent on the energy sector. Brunei is a constitutional monarchy with a system of governance that blends traditional Malay customs with modern institutions.
Sustainability: Is the practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs. It involves responsible resource management, environmentally-friendly practices, and social and economic considerations.
Willingness to Pay (WTP): Is the highest price a customer will pay for a product or service based on their perceived value and personal preferences. This information helps businesses determine the optimal pricing strategy and understand market demand. WTP can be influenced by brand reputation, product quality, and customer loyalty.
Structural Equation Modeling (SEM): Is a statistical method that analyses the relationships between latent and observed variables. It is used to test theoretical models and hypotheses in social sciences research. SEM combines path, factor, and regression analysis to estimate and validate the underlying relationships between variables.