The Role of Behavioral Economics in Consumer Decision-Making Towards Sustainable Products

This study investigates the potential of nudge theory to enhance the adoption of sustainable products. The research used Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the impact of economic responsibility, environmental awareness, socio-cultural values, and climate change concerns on consumer preferences for sustainable products. Data is collected through a closed-ended questionnaire employing a five-point Likert scale in the Delhi-NCR region during August–September 2023, with 370 valid responses out of 480. The analysis reveals that these nudges have a favourable impact on post-nudge buying behaviour, thereby confirming their efficacy in altering consumer choices. The study findings indicate that nudges have the potential to enhance sustainability awareness and influence consumer behaviour across different cultural contexts. Nudges have an instant impact on consumer choices, but the data also indicates the need for more study. This research demonstrates the efficacy of nudges in promoting the use of sustainable products. The results of this study provide stakeholders valuable insights for encouraging sustainable consumption habits and propose future research to get a deeper understanding of the long-term effectiveness and broader implementation of nudging strategies.