AI-Powered Green Nudges in FMCG: Impacts on Sustainable Purchase Intent and Willingness to Pay

Abstract

This study looks at whether simple reminders to be environmentally friendly can make people choose options when buying everyday products. The study was done in Madurai, Tamil Nadu with 250 people and it had four groups: one group did not get any reminders one group got a label that said the product was eco-friendly one group got a reminder that other people are choosing eco-friendly products and one group had the eco-friendly option as the default choice. The study looked at whether people wanted to buy products and whether they were willing to pay more for them. The researchers used statistical tools to analyze the data. The results showed that all three reminders made people more likely to choose products and pay more for them with the default eco-friendly option being the most effective. When people trusted the message, about the product being eco-friendly they were more likely to choose it and pay more for it. This means that retailers and marketers can use these reminders to make it easier for people to choose products by making them easy to find and by using trustworthy labels and simple messages. However this study only looked at one type of product. Only asked people what they would do, rather than actually seeing what they did so more research is needed to see if these reminders really work in real life.