Abstract
The consumers' environmental consciousness and their purchasing behavior were examined through conjoint analysis(CA) in this paper. In particular, we examined the development and sale of paper made from non-wood pulp, which is considered to be better for the environment than paper made from wood pulp. WTP (Willingness to Pay) for the non-wood pulp paper and its impact on the present market share were estimated. We found that consumers were prepared to pay the extra amount of approximately 15-16 yen (5-8% of the product price) to the non-wood pulp paper compared to the normal one. Furthermore, producers selling such a paper can increase the market share by about 8%. WTP and the impact on the product market share were estimated by using only theoretically consistent samples. As a result, WTP of the environmental attribute and the market share change of the non-wood pulp paper were decreased to about 11 yen and 6 % respectively. This also confirmed that 'Context Bias' exists. It was suggested that some respondents give a WTP amount that differs from his or her true WTP amount in an attempt to please the interviewer. Thus theoretical consistency check should be performed in every CA study.
