SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 7 Issue 6 – June 2020 ISSN: 2393 - 9125 www.internationaljournalssrg.org Page 45 Determinants of Consumers‟ Willingness to Pay for Green Products: The Moderating Role of Price Kok Keat Khor #1 , Wai Lam Mah #2 #1,2 Graduate School of Business, SEGi University, Kota Damansara, Malaysia Abstract Consumers’ willingness to pay for green products in the context of emerging markets as an outcome to which certain factors contribute is not adequately studied. The purpose of this paper is therefore to investigate the determinants of attitude, normative beliefs, green products experience and price in relation to consumers’ willingness to pay for green products and whether price moderates the relationships between attitude, normative beliefs and green products experience with consumers’ willingness to pay for green products. PLS-SEM technique is deployed to test the hypothesized relationships. Data to all variables of interest in this study is collected from a survey using structured self- administered questionnaires. The non-probability sampling approach of purposive sampling is used to collect data from 250 respondents. Empirical findings have shown that attitude and price have a significant positive relationship with consumers’ willingness to pay for green products. It is also found that price negatively moderates the relationship of attitude with consumers’ willingness to pay for green products. In this regard, the positive relationship between attitude and consumers’ willingness to pay for green products is weakened the higher the price of green products. This paper further highlights some limitations as well as managerial implications prior to conclusions. Keywords — green products, attitude, normative beliefs, green products experience, price, consumers’ willingness to pay I. INTRODUCTION Consumers in recent years are increasingly becoming more concerned with environmental problems including the depletion of natural resources, air and water pollution, soil erosion as well as climate change that have occurred globally and consequently, they are proactively developing green practices and behaviour to reduce any negative environmental impacts (Kumar & Ghodeswar, 2015; Arissa et al., 2020). In view of this, consumers‟ consciousness towards the environmental issues has prompted them to switch to green products as a way to preserve and protect the environment (Yang, 2017; Arissa et al., 2020). Moreover, some past studies such as Braga Junior et al.(2015), Mokan, Lee and Bhoyar (2018) and Mahmoud (2018) have recognized green products are those products that have minor impact to the environment with the use of ingredients, materials or contents that are eco-friendly, recyclable and requiring less packaging to safeguard the environment and human health. As consumers change their consumption patterns from non-green substitutes by taking into account of the adverse environmental impacts, this has resulted in the demand for green products to increase in the global marketplace (Mustafa et al., 2016; Okunuga, 2019; Yue et al., 2020). Such an increase in demand for green products is further driven by business organizations in their efforts made to produce and promote products that are eco-friendly (Choudhary & Gokarn, 2013; Nadiah & Norashikin,2019). The consumption of green products is seen as a rising trend in Malaysia (Rajadurai, Bathmanathan & Azami, 2018; Mokan, Lee & Bhoyar, 2018) albeit several past studies have highlighted a perceived lack of intention in purchasing green products among Malaysian consumers (Sharaf, Isa & Al-Qasa, 2015; Azhan et al., 2018; Nadiah & Norashikin, 2019; Tan, Adedapo & Ramayah, 2019). Nevertheless, Malaysia is not only considered as one of the lucrative markets for green products (Kong et al., 2014) but also due to the awareness and concerns of consumers to the environment, the idea for going green has been gradually gaining acceptance among Malaysian consumers (Mohd Suki, 2016) and as such, they show a positive attitude in willing to spend more money to acquire green products when consumers perceive the products bought to carry extra value which improves their well-being (Hasan & Ali, 2015; Syazana & Raemah, 2015; Mustafa et al., 2016; Sharaf & Perumal, 2018; Alam et al., 2019). The studies by Ritter et al.(2015), Biswas and Roy (2015) as well as Biswas (2016) have further contended that individuals are willing to pay the premium price for green products if they are concerned about the environmental impact on their mode of consumption. In relation to the willingness to pay for green products in the context of Malaysia is a set of accessible normative beliefs concerning the expectations of important referents to the status in using green products and green products experience. Past researches (Ooi, Kwek & Tan, 2012; Lasuin &