Abstract
The purpose of this paper is to examine the determinants of purchase decision for recycled material and to check the impact these determinants on recycling benefits in Pakistani perspective. This study uses the determinants of purchase decision for recycled products by going through in depth literature survey and establishes the relationship of purchase decision determinants with firm benefits and environmental benefits in Pakistani context. The determinants identified through literature survey are further confirmed by factor analysis using SPSS 17. To know the impact of these determinants on firm benefits and environmental benefits, Multivariate analysis has been used in study. To compare the results of Plastic, Rubber and Paper, one way ANOVA has been used. The results from the present study suggest that cost factor has significant positive impact on the firm benefits. Cost factor is very important for the firms because as cost decreases the benefits for firm increases. Cost reduction is the most important factor for the firms currently doing the recycling business in Pakistan, indicated the reasoning of highly uncertain environment. The industrial sector remains shut down almost half of the year which results in high cost. In such an uncertain environment any positive way which reduces cost of doing business will directly contribute to firm benefits.