Factors Affecting Consumer Adoption of Sustainability Innovations

In today’s competitive environment, corporations are making substantial investments in sustainability initiatives. Corporations are increasingly motivated to proactively integrate sustainability issues into strategy. Prior studies demonstrated that company’s involvement in sustainability programs helps in brand building, and generates positive feelings about the company in consumers’ mind. The current study examines the effect of sustainability innovations on consumer adoption intention in services sector. Specifically, this study proposed and tested a model that examines the effect of sustainability innovation knowledge, its benefit understanding, consumer innovativeness and perceived risk on consumers’ adoption intention towards a service. A survey is conducted among Indian consumers. Structural equation modelling is used to analyze the data and to test the proposed integrated model. The research focused on hotel industry only. The results showed that knowledge about the sustainability innovations and its benefit understanding decreases perceived risk and increases adoption intention. Consumer innovativeness leads to higher adoption of sustainability innovations. Hotels are increasingly using sustainable practices to enhance customer goodwill and improve their image. Hotels must look at customer reactions towards adoption of sustainability initiatives. Adopting sustainability innovations can dramatically reshape the way companies provide products and services and contribute to society’s progress.