An Investigation on the Additional Cost of Green Products: The Willingness to Pay of University Students

Abstract: Nowadays, it is inevitable for companies to be human oriented as well as being customer oriented. Because one of the factors that provide long-term profitability is to be socially responsible. Companies perform this with the help of green marketing applications. The aim of this study is to determine the willingness to pay of university students for the additional cost of green product, and reveal consequences for companies in terms of price adjustments. In this study used convenience sampling, 10 different durable and non-durable products have been determined. Different price levels selected in order to expose price sensitivity. While determining the price categories increases in the cost of 5 % have been taken into consideration. The survey implemented to 481 participants at Sakarya University. It's concluded that consumers are willing to pay an additional price for green products. Price sensitivity is found to be relative. Product itself is also found important as well as price. Consequently for a better environment companies keep prices at acceptable levels and consumers purchase more green products.