Consumers' preferences for facets of green supply chain management

Abstract

This study explores the relationships between facets of a firm's green supply chain management (GSCM) efforts and the preferences expressed by its consumers for its products. Data obtained from over 300 consumers indicate that they find products more desirable when they perceive that a firm uses green management systems, engages in resource recovery efforts, and behaves in socially responsible ways. However, in some cases consumers' affinities for these efforts diminish for much higher priced products. Interestingly, the results provide no support for a relationship between a firm's internal management commitment to GSCM and consumers' preferences. In addition, consumers' preferences are significantly decreased by a firm's green (environmentally friendly) product design efforts. This negative relationship is even stronger for high priced products. We discuss consumers' possible assumptions and expectations regarding GSCM, and offer explanations for these contrasting relationships. We also discuss managerial implications of these findings, including the potential for firms to focus on specific GSCM activities that tend to be more effective in enhancing the consumer's value proposition. Such a strategy might be used to justify investments in GSCM that are repaid by increased revenues.© 2014 Inderscience Enterprises Ltd.