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Consumer Cognition and Willingness to Pay for Environment-Friendly Furniture

Author: WuDan
Tutor: ZhouYingHeng
School: Nanjing Agricultural College
Course: Industrial Economics
Keywords: Furniture safety Willingness to pay Trust Environment-friendlyfurniture
CLC: F426.88
Type: Master's thesis
Year: 2011
Downloads: 19
Quote: 0
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Abstract


Most people spend about70%-80%life time on staying indoor. In2002,《World Health Report)) says the indoor air pollution is one of the top ten threats for people’s health. As many people know, the unqualified furniture will release harmful substance in the air such as formaldehyde and so on, which may do harm to human respiratory system、mental system and circulatory system. Unfortunately we have no laws regarding Environment-friendly furniture in China. There are so many furniture with various authentication certificates offered by different certification body, while the consumers know whether should make decision bases on it or not.So in the light of the specific situations of no relevant laws and no effective supervisory in China, how much do the consumers know about real environment-friendly furniture? How about the price of environment-friendly furniture they can afford? What should do by the government to improve this situation? This paper select3main furniture store in NJ for the research place and invite more than200people to answer the question of the survey, finally I got180qualified samples. In the part of descriptive analysis, we can have a clear picture of how much do the samples know about the environment-friendly furniture and the situation of information regarding furniture spread. In the part of empirical analysis, I choose the approach of Multivariate Linear Regression Model and Contingent Valuation Method to find the factors that influence consumer buy Environment-friendly furniture and the price the consumers can offer for it. This will help to prove the Environment-friendly furniture’s worth in Nanjing market and provide available policy for the government.I summarize the following conclusions as below based on the before analysis:Information in furniture market is asymmetric, and consumers are not very sure about the furniture information released by the government. There are7factors influence people’s decision on buying Environment-friendly furniture, including:price、sensitivity、credibility of each channel、gender、income and living situation. And Nanjing consumer would like to pay more than25.77%for the Environment-friendly furniture than ordinary furniture.The policy recommendations are:first we need to clear and improve the information communication mechanism, share more information of the Environment-friendly furniture, and also need to secure the information is precise for the people, which will do good to jump from Tacitus trap. Second our government must carry out effective supervision to protect the regulars’ legitimate rights. At last, the government must support the development of industry of environment-friendly furniture.

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