Abstract

In the developed world, consumers are increasingly influenced by the notion of sustainability in their consumption decisions. As such, organizations are becoming entrepreneurial in the implementation of production processes, with a focus on responsible decisions over their use of natural resources. These businesses seek to demonstrate their commitment to future generations, which they belief consumers will value. One dimension of this calculus has been an ecological focus on basic packing materials such as wood, cardboard, plastic, and textiles and the use of eco-friendly packaging to promote recycling, the ultimate aim of which is to reduce waste production. There has been little research on the effect of eco-friendly packaging on the buying behavior of consumers at the time of product selection, and even less on specific segment. Research has provided some evidence that while consumers say they care about sustainability, they are less willing to pay more for sustainable packaging, in terms of price premiums that reflect the costs of producing such packaging. The purpose of this chapter is to investigate the level of impact that eco-friendly packaging has on the buying behavior of consumers, using personal care products as a reference. The study helps researchers unpack the relative importance of businesses and consumers in the adoption of eco-friendly packaging, and sheds light on how businesses can influence consumer choices, especially regarding the willingness to pay in the personal care product industry.