CHAPTER 1

1.1 INTRODUCTION
It is the move towards a green revolution, in order to gains momentum people throughout the
India seek to alter the current path of rapid environmental degradation. The hotel industry also
asked to participate in this growing trend of green revolution. In this paper our study examines
how Indias leading hotel brands have put their full efforts to respond to environmental issues
and invested significantly in order to go green. By use of the latest technologies and principles of
sustainability and short-term goals, made hotel industry to transform itself into environmentally
sound operations. And by installing various eco-friendly technology (such as solar panels,
recycling bins, etc.), hotels can lower their environmental impact. The industry has not only the
potential to save millions of rupees by going green and also become one of the channels for
social change.
Despite the opportunity, some hoteliers hesitate to invest in green initiatives because they are not
convinced whether or not such investments will be financially beneficial to them. The
implementation of green practices requires some initial investments and returns from such
investment sometimes are difficult to come. One way to lessen this concern is to charge
premiums for hotels green practices whether or not customers are willing to pay those additional
charges.
A study examines that some customers feels sustainable travel important and are willing to pay
extra to support environmental sustainability others believe that the hotel has overall
responsibility to fund those initiatives.
Thus, the current study aims to examine the effects of hotel guests degree of environmental
commitment on their willingness to pay premiums to support environmentally sustainable
initiatives of hotels. Moreover, this study attempts to investigate the relationship between hotel
types and hotel guests levels of willingness to pay for green practices.

1.2 SCOPE OF THE STUDY

To study the willingness of Hotel guest to pay a premium for environmental friendly and
sustainable practices in India.
To study the relationship between the level of Hotel guests concern for environment and
sustainable practices and willingness to pay for GREEN PRACTICES in Delhi NCR
region..
To investigate the relationship between gender of the guest and willingness to pay for
GREEN PRACTICES.
To investigate the relationship between type of hotel visited by the guest and willingness
to pay for GREEN PRACTICES.
.

CHAPTER 2
2.1 Literature Review
2.1.1 NATIONAL RESEARCH PAPER
Dutta et al. (2014): The research paper examine the change in consumer patronage and
willingness to pay at different levels of service attributes in restaurants in India. The authors used
primary data via survey questionnaire method. The sample size is 308.The variable used are
willingness to pay, service quality, food quality and ambiance. The hypothesis testing used in the
report is anova. The result of the test showed that consumer willingness to pay varies with each
service attribute as they improve from low to high. The result indicate that in case of high end
fine dining restaurants ,quality of food is the most important attribute which is followed by other
service attributes. Similar results were found in casual dining restaurants.
Critical Analysis:- The objective of the case study supports the main topic. The authors are clear
with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Samdin et al. (2008): The research paper examines the socio-demography of visitors, the
characteristics of visits of visitors and the characteristics of paying and any differences in WTP
among visitors. The authors have used primary data using questionnaire method The authors
have used Contingent valuation methods for measuring consumer preference for non-market
goods available at TNNP. The sample size is 180. Variables used are age, sex, education, income
and place of residence and place of purchase. The result of the test facilitate in establishing an
efficient and realistic pricing policy for TNNP.
Critical Analysis:- The author uses Contingent valuation methods for measuring consumer
preference for non-market goods. The author uses telephonic survey for data collection. The
author gives proper conclusion of the case. The author analyze demographic segment. The source
of data is not mentioned.
2.1.2 INTERNATIONAL RESEARCH PAPER
Roe et al. (2001):- The research paper examines the role of consumer willingness to pay for
green electricity. A survey is designed to elicit consumers' willingness to pay for such attributes
and using results from a hedonic analysis of actual price premiums charged for green electricity
in several deregulated markets. The purpose of this paper is to provide some insight into US
consumers' demand for deregulated residential electricity services that promise more favourable
environmental profiles. The author has used primary data using Questionnaire Method. They
have used random sampling method. The sample size is 835. The variables used are monthly
price, contract terms, fuel source mix and air emissions profile. The hypothesis test used are
ANOVA and a simple hedonic regression (linear ordinary least squares). The result of the test
shows that that a wide array of population segments are willing to pay small amounts for tangible
improvements in air emissions even if no alteration of power generation sources take place. The
results also suggest that US consumers do value environmental benefits created from alterations
2

in electricity generation methods and that US firms have responded with several product
offerings priced to capture the value consumers hold.
Critical Analysis :- The objective of the case study supports the main topic. The authors are
clear with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Miller et al. (2008):- The research paper examines a list of green attributes guests would prefer
to have in the guest room of a hotel. According to the research done by the author no of green
attributes include such items as recycling bins in the guest room, and energy saving lighting,
refillable soap and shampoo dispensers. This study, very exploratory in nature, was conducted at
a conference that focused on green development in the hospitality industry. The sample size is
170.The authors collected primary data using Questionnaire method which is self-administered
survey incorporated a combination of qualitative and quantitative questions over four sections.
The test done to check the hypothesis is ANOVA. The first section included two qualitative
questions, with the first question being: what three words come to mind when you think of a
green hotel. The second section of the survey asked respondents to rate, using a 7-point Likert
type scale, how strongly they agreed or disagreed (1 = strongly disagree, 7 = strongly agree),
with the following statement: I would like to have the following environmentally friendly
attributes in a hotel room. Section three of the survey included demographic questions such as
gender, age, education level (Some College, Undergraduate Degree, Graduate Degree, Post
Graduate Degree, Other), as well as occupation. The final section asked participants which
environmentally friendly activities they currently perform at home, i.e. recycle cans and bottles,
or use low flow water fixtures. The results of this study enable researchers to develop future
research projects relating to environmental hotel attributes.
Critical Analysis: - The sample may be biased towards environmentally friendly activities. The
results are not generalized to the entire population. The sample in the present study is small and
rather homogeneous. The results, therefore, cannot be applied to the general traveling population.
Another weakness of this study is the lack of control over the participants desire to respond the
way they think they should, as opposed to responding with their true beliefs.
Carlsson et al. (2007):- The research paper examines Consumer willingness to pay for farm
animal welfare: mobile abattoirs versus transportation to slaughter. The study is based on WTP
based on a choice experiment (CE) using a mixed logit model for animal welfare attributes in pig
production, including mobile slaughter and transport of live pigs limited by distance. The authors
has used primary data using Questionnaire Method for the evaluation of transportation of
animals for slaughter were instead collected using a Choice Experiment. The variables used are
minced (ground) beef and chicken fillets with varying levels of price, product labels, feed type,
outdoor production, transportation to slaughter and growth rate. They have used random
sampling method. The sample size 1600. The hypothesis test used are ANOVA and Least square
method, Paired T-Test method. The result shows that actual implementation implementation of
mobile slaughter further depends not only on consumer preferences, but also on the actions of

suppliers and the market structure within the food industry. The results useful in policy formation
and formulating communication strategies within the food market chain.
Critical Analysis:- The objective of the case study supports the main topic. The authors are clear
with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Togridou et al. (2006):- The research paper examines visitors' willingness to pay (WTP) for the
National Marine Park of Zakynthos. The author has used random sampling method from three
beaches Laganas, Kalamaki and Gerakas. They have also used primary data using Questionnaire
method. Questionnaires took about 1015 min for each respondent to fill in. The sample
comprised both Greek and foreign visitors (40.70% and 59.30% of the total sample,
respectively). The sample size used 550. The hypothesis testing used are ANOVA, Cramer's V
association measure , Regression analyses(multiple regression analyses).The variable used are
gender, age, education, monthly income, children. The result shows that More than 96% of
foreign visitors stayed within park boundaries. The result shows that upper class is ready to pay
for NMPZ in order to maintain sustainable eco-friendly environment. The result suggested to
provide environmental education which act as a feedback.
Critical Analysis:- The objective of the case study supports the main topic. The authors are clear
with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Loureiro et al. (2003):- The research paper examines consumer response and consumer
willingness to pay for a mandatory country-of-origin labeling program and for steak and
hamburger labeled as "U.S. Certified Beef." In this research consumers are surveyed in various
grocery stores. The author has used primary data using using Questionnaire method which is
provided withYes"/"No" answers to the survey questions. To analyze the choices they also use
Logit model based on logistic probability. The hypothesis testing used are ANOVA and Least
square method. In this research 243 consumer were surveyed. The variables used in the research
are gender, age, Beef Shopper, education, kids, family size, income, and race. The result shows
that the respondents were also willing to pay an average of 38% to 58% more for individual
products labeled as "U.S. Certified Steak" and "U.S.Certified Hamburger." Logit results suggest
females, are more likely to support mandatory country-of-origin labeling.
Critical Analysis:- The objective of the case study supports the main topic. The authors are clear
with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Zielke et al.(2007):The research paper examines customers willingness to purchase new store
brands. The author wants to analyze and identify the factors influencing customer willingness to
purchase new store brands. The authors used primary data in their study. Questionnaire method
was used to collect data and random sampling was used. The sample size of their study amounted
to 990.The variables used in the study are age, gender, household size and income. Anova and
4

least square method is used to prove their study. The results of the tests showed that consumer
willingness is lowest for product groups associated with high social risks. Accordingly, premium
brands are also preferred. The results also showed the price is smaller and nonlinear. It also
showed that the attitude toward a specific store brand has a huge impact on consumer willingness
to purchase while the attitude towards store brands in general is less important.
Critical Analysis:- The authors are not clear with the objective of the case study. Also, the
objective of the case study has not been specified. Even though, the authors have used primary
data and have conducted their own survey with proper reference, it doesnt matter if the objective
is not mentioned.
Napolitano et al.(2010):The research paper examines the effect of information about organic
production on beef liking and consumer willingness to pay. According to the research done by
the authors, a number of western countries are showing oversupplies in the organic meat are
costly. The authors collected primary data using primary data using questionnaire method in
three different parts of Italy ,i.e. Potenza , Ancona and Udine. Sample size of their study is
190.variables used are willingness to pay, age ,sex and level of education. The test to done to
check the hypothesis are Paired t-test, persons coefficient of correlation and ANOVA. The
results showed the main limit to purchasing organic meat remain price because of high
production cost which are affected by organic rules and small scale systems. The result also
showed that the consumer are influence by the level of information about organic production and
move their actual acceptability to expected liking.
Critical Analysis:- The authors are not clear with the objective of the case study. Also, the
objective of the case study has not been specified. Even though, the authors have used primary
data and have conducted their own survey with proper reference, it doesnt matter if the objective
is not mentioned.
Kimenju et al.(2007):The research examines consumer willingness to pay for genetically
modified food products Kenya. Consumer acceptability for modified food products is different in
different parts of the world. In US , consumer are willing to pay a premium on such food
products. The authors want to study the same in Kenya. The authors used primary data using
questionnaire method to collect their data. The variables used are level of education, employment
status, income and awareness. The hypothesis testing was done using Chi squared testing
method. The result showed that large majority of the surveyed consumers were willing to pay for
G.M maize meals at the same price as their favorite maize meal brand. The survey showed that
consumers were willing to pay premium when they were told about the positive effects of G.M
products. On the other hand, the same consumers were unwilling to even buy the product at all
when they were told about the negative effects of G.M products.
Critical Analysis:- The objective of the case study supports the main topic. The authors are clear
with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.

Tully et al.(2014):The research paper examines the role of the beneficiary in willingness to pay
for socially responsible products. The authors of the research paper have used secondary date for
their research. Sample size is 186.Random sampling was used by the original author. The
variables used are willingness to pay, beneficiary and domain. The hypothesis testing used used
in the report are chi squared test, q-test , and OLS regression. The research shows that people are
willing to pay a positive and significant premium for socially acceptable products. Almost 60%
of the people indicated that they are willing to pay the premium for these products. The research
also suggested that research is necessary to investigate the mechanism underlying the
independent variables affecting the variations in willingness to pay.
Critical Analysis:- The authors are not clear with the objective of the case study. Also, the
objective of the case study has not been specified. Even though, the authors have used primary
data and have conducted their own survey with proper reference, it doesnt matter if the objective
is not mentioned.
Kang et al.(2011):The research examines hotel guests willingness to pay a premium for
environmentally friendly and sustainable practices of the U.S hotel industry. The goal of the
research is to investigate the relationship between the level of U.S guests environment concern
by the new ecological Paradigm scale(NEP) and willingness to pay a premium for green
practices. The authors have used primary data via questionnaire method. Random sampling is
used by the researchers. The sample size is 455.The Survey was conducted via an online survey.
The subjects were selected from people who requested tourism information for destination
marketing organization or convention or visitor bureaus in Florida and Texas. The twi main
factors are: NEP and WILLINGNESS to PAY and the & main control variables are: INCOME ,
AGE , EDU,MS,CHILD and H_WORK. Test conducted to test the hypothesis are t test, multiple
regression, ANOVA and correlation. The study done by the authors showed positive relation
between the level of environment concern and willingness to pay a premium for hotels green
initiative.
Critical Analysis: - The objective of the case study supports the main topic. The authors are
clear with the objective of the case study. The authors have conducted their own survey and have
analyzed it appropriately. The conclusion of the case is prepared properly.
Boccaletti et al.(1999):-The research paper explains consumer willingness-to-pay (WTP) for
food products obtained through the application of biotechnology. The author wants to analyze the
respondents awareness and WTP for GM foods. The authors have used telephonic survey for
data collection. The sample size is 384. Variables used are age, sex, education, income and place
of residence and place of purchase. The result of the test shows that consumers have a low
degree of knowledge of the issue, but an overall positive attitude towards genetically modified
(GM) foods. Estimation results of an ordered probit model suggest that WTP is mainly affected
by income and information.

Critical Analysis:- The author uses telephonic survey for data collection. The author gives
proper conclusion of the case. The author analyze demographic segment. The source of data is
not mentioned.
Carpio et al.(2008):- The research paper explains South Carolina (SC) consumers willingness
to pay for SC grown products. The authors have used Contingent valuation methods for
measuring consumer preference for non-market goods. The author analyzes two types of
products: produce products and animal products. The authors have used telephonic survey for
data collection. The sample size is 500. Variables used are age, sex, education, income and place
of residence and place of purchase. The result of the test show that the importance of monitoring
changes in Consumer preferences in general and for local food systems.
Critical Analysis:-The author uses Contingent valuation methods for measuring consumer
preference for non-market goods. The author uses telephonic survey for data collection. The
author gives proper conclusion of the case. The author analyze demographic segment. The source
of data is not mentioned.
Schubert et al. (2010):- The research examines paper Consumer attitudes and behavioral
intentions towards environmentally sustainable practices in restaurants is an under-explored area
in the hospitality literature, despite the growing green trend. The authors have used primary
data using questionnaire method. The authors have used random sampling method. The sample
size is 455. Variables used are age, sex, education, income and place of residence and place of
purchase. The result of the test show that there is an unfilled market niche for green restaurants,
as customers care about restaurants protecting the environment and would be willing to pay more
to offset any additional costs associated with green practices.
Critical Analysis:- The author uses Contingent valuation methods for measuring consumer
preference for non-market goods. The author uses telephonic survey for data collection. The
author gives proper conclusion of the case. The author analyze demographic segment. The source
of data is not mentioned.

CHAPTER 3
3 RESEARCH METHODOLOGIES
This paper is completely based on survey work. The goal of this research is to investigate the
relationship between the level of Indian Hotel Guest environmental concern and their willingness
to pay premiums for hotels green initiatives.

3.1 TYPE OF RESEARCH DESIGN

The research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will effectively
address the research problem; it constitutes the blueprint for the collection, measurement, and
analysis of data. The research uses exploratory research design as it is flexible and involves
quantitative data analysis.

3.2 SURVEY DEVELOPMENT

The current study developed a survey instrument which included three major parts. The first
section of the survey queries the type of hotel that a respondent most frequently uses and the
respondents willingness to pay a premium for a hotels green initiatives. The survey asks two
WTP questions. The first section of the survey queries the type of hotel that a respondent most
frequently uses and the respondents willingness to pay a premium for a hotels green initiatives.
The survey asks two WTP questions. The first question, using a 5-point Likert scale from totally
disagrees to totally agree. The second section of the survey consists of questions regarding a
respondents attitude towards environmental concern. The last section of the survey consists of
inquiries to accumulate respondents demographic characteristics. Questions include gender, age,
education level, income level, marital status, and number of children.

3.3 TECHNOQUE OF DATA COLLECTION

In this research paper we have collected primary data using survey question method. The data
was collected via an online survey conducted amongs the students of MBA(m&s) and the friends
and family member of the researchers.

3.4 SAMPLE SIZE

The sample size of 105 was taken into consideration. The survey covered the respondents of
Delhi NCR region. The survey was conducted by using questionnaire method.

3.5 SAMPLING TECHNIQUE

Convenience sampling was used to obtain data. Sample includes responses from friends and
family.

3.6 QUESTIONNAIRE FORMULATION

The questionnaire was prepared after extensive study of various literature review. The
questionnaire used in Kang et al.(2011) was used in obtaining the survey data.
The questionnaire consists of 18 questions divided in 3 part:
10 NEP questions
2 WTP questions
6 questions about the respondents

3.7 TECHNIQUE USED FOR DATA ANALYSIS

3.7.1 INDEPENDENT T-TEST
The Independent Samples t-Test compares the means of two independent groups in order to
determine whether there is statistical evidence that the associated population means are
significantly different. The Independent Samples t-Test is a parametric test.
The Independent Samples t-Test is commonly used to test the statistical differences between the
means of two or more groups, statistical differences between the means of two or more
interventions or the statistical differences between the means of two or more change scores
3.7.2 ONE WAY ANOVA
The one-way analysis of variance (ANOVA) is used to determine whether there are any
significant differences between the means of two or more independent (unrelated) groups
(although you tend to only see it used when there are a minimum of three, rather than two
groups). For example, you could use a one-way ANOVA to understand whether exam
performance differed based on test anxiety levels amongst students, dividing students into three
independent groups (e.g., low, medium and high-stressed students). Also, it is important to
realize that the one-way ANOVA is an omnibus test statistic and cannot tell you which specific
groups were significantly different from each other; it only tells you that at least two groups were
different.
PEARSON COEFFICIENT OF CORRELATION
Correlation between sets of data is a measure of how well they are related. The most common
measure of correlation in stats is the Pearson Correlation. The full name is the Pearson Product
Moment Correlation or PPMC. It shows the linear relationship between two sets of data. In
simple terms, it answers the question, Can I draw a line graph to represent the data? Two letters
are used to represent the Pearson correlation: Greek letter rho () for a population and the letter
r for a sample.
High correlation: .5 to 1.0
Medium correlation: .3 to .5
Low correlation: .1 to .3.
9

3.8 SOFTWARE PACKAGES USED FOR ANALYSIS

STATISTICAL PACKAGE FOR THE SOCIAL SCIENCES(SPSS)
SPSS Statistics is a software package used for statistical analysis. SPSS is a widely used program
for statistical analysis in social science. It is also used by market researchers, health researchers,
survey companies, government, education researchers, marketing organizations, data miners, and
others.
Statistics included in the base software:

Descriptive statistics: Cross tabulation, Frequencies, Descriptives, Explore, Descriptive

Ratio Statistics
Bivariate statistics: Means, t-test, ANOVA, Correlation (bivariate, partial, distances),
Nonparametric tests
Prediction for numerical outcomes: Linear regression
Prediction for identifying groups: Factor analysis, cluster analysis (two-step, K-means,
hierarchical), Discriminant

10

CHAPTER 4
4.1 ACTUAL ANALYSIS
Independent tTest
HO:- There is relationship between two variables (Gender and H_Work).
Ha:- There is no relationship between two variables(Gender and H_Work).

TABLE 1(INDEPENDENT T-TEST)

ONE- WAY ANOVA

11

Ho:- THERE IS SIGNIFICANT DIFFERENCE BETWEEN THE MEAN OF 1,2, 3, 4

Ha: THERE IS NO SIGNIFICANT DIFFERENCE BETWEEN THE MEAN OF 1,2, 3, 4
1=Income
2=Education_level
3=Marital Status
4=H_Type

TABLE 2(ONE WAY ANOVA)

Correlation

12

TABLE 3(CORRELATION)

4.2 RESULT INTERPRETATION

Before performing the main analysis that examines the effects of the two main factors (NEP and
hotel type) on willingness to pay (WTP) a premium for green initiatives, and after controlling for
13

demographic variables, the study examined group differences in WTP for each individual
variable.. For investigating a group difference for the two dichotomous variables of GENDER
and working experience in a hotel (H WORK), the study performed an independent t-test. The
analysis shows that GENDER (t-value =11.160) shows a statistically significance difference,
while H WORK (t-value = 79.041) shows no difference. The findings suggest that males are
willing to pay a higher percentage premium which is inconsistent.
The study, next, performed a One-Way ANOVA to investigate whether or not an overall group
difference in WTP exists for four multiple categorical variables: hotel type (H TYPE), income
level (INCOME), educational level (EDU), and marital status (MS). The analysis presents no
overall group difference for H TYPE (F-value = .945; p-value = 0.0.483), EDU (F-value = 0.734;
p-value = 0.661), and MS (F-value = 0.355; p-value = 0.941), while a significant difference for
INCOME (F-value = 1.388; p-value = 0.211) exists at the 5% significance level. For H TYPE,
the study further performed a post-hoc analysis to investigate which group significantly differs
from others. The post-hoc analysis suggests that economy hotel guests do not differ from midpriced hotel guests in their willingness to pay a premium, and mid-priced hotel guests do not
differ from luxury hotel guests; however.
Last, the study performed Pearsons correlation analysis to investigate the presence of a
relationship between three continuous variables (NEP)\and WTP. The correlation between NEP
and WTP is highly positive and statistically significant.

CHAPTER 5
5.1 CONCLUSION

14

The main purpose of this study is to investigate the effects of hotel guests levels of
environmental concern and choices for hotel type on their willingness to pay a premium for
hotels green initiatives. By conducting regression analysis with a sample of 105 respondents, the
study found a positive and significant impact from the level of environmental concern, measured
by the New Ecological Paradigm, (NEP) on willingness to pay a premium for green practices.
The studys findings support the social identity theory and the means-end theory. That is, a
positive relationship between NEP and WTP in this study may ensure that Indian hotel guests
who have greater interests in environmental issues are more likely to identify with hotels that
conduct a higher degree of green practices which may be enduring, distinctive, and able to
satisfy their self-esteems. And, from the studys finding INDIAN hotels green initiatives, as a
differentiated attribute of hotel services, may play the role of means that reinforce consumption
decisions of hotel customers with greater concerns for environmental issues by satisfying their
values including self-esteem. The study shows a positive relationship between the level of
environmental concern and willingness to pay a premium for hotels green initiatives.

15