Behavioral Economics and Consumer Green Product Choices

Abstract

Understanding consumer behavior is critical for promoting sustainable consumption. This study investigates how behavioral biases, including social norms, loss aversion, and framing effects, influence green product adoption in the FMCG and electronics sectors. Surveying 3,500 consumers in Europe, Asia, and North America, results indicate that nudges such as eco-labels, limited-time discounts on sustainable products, and social influence campaigns significantly increase green purchase behavior. Consumers are more likely to choose environmentally friendly products when sustainability is framed as a gain rather than a sacrifice. The study provides actionable recommendations for marketers and policymakers to design interventions that effectively leverage behavioral economics to promote sustainability. This research contributes to both theory and practice by bridging behavioral economics and environmental management.