International Journal For Multidisciplinary Research

E-ISSN: 2582-2160   •   Impact Factor: 9.24

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Volume 8 Issue 4
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Eco-Packaging and Pricing Power: A Mediation Analysis of Perceived Product Quality in Urban FMCG Market

Author(s) Mr. Santosh V Chavan, Dr. Harish K Padmanabhan
Country India
Abstract Abstract
Sustainable packaging has evolved from an eco-friendly alternative into a strategic differentiator for brand positioning. This study examines how sustainable packaging influences consumer perceptions of product quality and their willingness to pay a price premium. Utilizing a quantitative experimental survey design with 384 urban fast-moving consumer goods (FMCG) shoppers, we evaluated consumer evaluations across two distinct packaging types: conventional plastic packaging versus biodegradable/recyclable paper-based packaging. Structural Equation Modeling (SEM) and linear regression analyses were conducted to test the conceptual model.
The empirical results demonstrate a statistically significant positive relationship between sustainable packaging cues and perceived product quality ( \beta = 0.42, p < 0.001 ). Furthermore, perceived product quality partially mediates the effect of sustainable packaging on premium pricing tolerance ( \beta = 0.36, p < 0.001 ). Consumers exhibited a mean willingness to pay a price premium of 12.4% for products utilizing certified eco-packaging compared to conventional alternatives. Brand trust emerged as a significant moderating variable, enhancing the relationship between eco-labeling and purchase intent. These findings suggest that eco-friendly packaging acts as a high-quality signal, enabling firms to leverage sustainability as a competitive advantage rather than a cost burden.
Keywords Sustainable Packaging, Perceived Product Quality, Premium Pricing, Willingness to Pay, Competitive Advantage
Field Business Administration
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-08-23
DOI https://doi.org/10.36948/ijfmr.2026.v08i04.86331
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CrossRef DOI prefix of IJFMR is 10.36948/ijfmr

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