Prediction of Consumers’ Adoption Behavior of Products with Water Efficiency Labeling Based on Hidden Markov Model

Abstract

Water efficiency labeling, an environmental protection label, can provide consumers with products’ water-saving information, guide consumers to choose high-efficiency water-saving products, and encourage residents to save water. Data were obtained from a questionnaire survey among 526 respondents in Zhengzhou, China. The study constructed a Hidden Markov Model (HMM) to predict consumers’ adoption behavior of products with water efficiency labeling. The adoption probability of consumers at different perceptions and water-saving awareness for products with water efficiency labeling and the state transition probability of consumers’ adoption behavior of products with water efficiency labeling were calculated. Consumers’ adoption behavior of products with water efficiency labeling in different situations is predicted. The research found: (1) When the degree of perception remains unchanged, the improvement of consumers’ water-saving awareness will promote their adoption of products with water efficiency labeling and increase the probability of continuous adoption behavior. (2) The state of consumers’ adoption behavior depends on the last adoption behavior. Furthermore, as the state level increases, the dependency on adoption behavior becomes more vigorous. (3) HMM is suitable for predicting consumers’ adoption behavior of products with water efficiency labeling and has high accuracy. The research findings can provide a theoretical basis and decision-making reference for the government and enterprises to formulate relevant guiding policies and promotion strategies.