factors affecting vietnamese consumers purchase intention of green products on e commerce platforms

To conclude, the specific objectives are to gain a deeper understanding of how attitudes, social norms, Perceived Behavioral Control, Environmental Concern and knowledge drive Vietnamese

Factors Affecting Vietnamese Consumers Purchase Intention of Green Products on

Huynh Minh Nghia CS160072

Do Nguyen Hoang SS160037

Huynh Minh Tien SS160167

Ho Chi Minh City, November 7, 2023

Table of Contents

1 Introduction 1

1.1 Background .1

1.2 Brief overview .1

1.3 Research Gap .1

1.4 Research question .2

1.5 Research objectives .2

1.6 Research outline .2

2 Literature review .3

2.1 Definitions .3

2.2 Theoretical Background and Hypotheses Development .4

3 Methodology .7

3.1 Research Method .7

3.2 Sample and Data Collection .7

3.3 Measures .9

3.4 Tools for Analysis .10

4 Finding 10

4.1 Testing of Reliability and Validity of the Measurement Model .10

4.2 Testing of the Structural Equation Model .14

5 Discussion and Conclusion .15

Reference 16

1

1.1 Background

Nowadays, ice caps are melting due to global

warming, some animals are extinct, and pollution of

air, land, or water is more serious One of the reasons

leading to the severe environmental sustainability

issue is the unsustainable level of consumption

green consumption is being paid more attention by

customers due to the rising Environmental Concern

customers from different countries and generations

have changed their behavior to become more

sustainable in the previous five years (85% of

customers have changed their buying habits to be

"greener" if we count those who have also made small

adjustments) At the same time, the number of online

shoppers worldwide has increased significantly with

the development of e-commerce after the COVID-19

pandemic (Mo Chen & Rabia Bashir, 2022)

According to the statistics of Oberlo, there will be

about 2.64 billion digital buyers in 2023, accounting

for 33.3% of the population in the world In 2022,

global retail e-commerce sales were estimated to be

more than 5.7 trillion U.S dollars, and this number is

believed to reach a new peak in the following years

predicted to be a more potential future (Hui HeID,

1.2 Brief overview

The trend was the same in Vietnam, since the

Covid-19 pandemic broke out, consumers have tended

to buy goods online Now, they have a higher

awareness of their health and environment, therefore,

they prioritize good-quality, reliable products and

ones that are labeled "green or eco-friendly"

According to Vu Kim Hanh, chairwoman of the

High-Quality Vietnamese Goods Business Association, the

role of standards is becoming a competitive advantage

for businesses in both the domestic and export markets

Green Growth for the period 2021 - 2030, with a

vision to 2050, green consumption is determined as a

development Along with economic development, living standards are being improved day by day The demand not only for high-quality and sustainable products but also for services is increasing, especially

as they directly support people's daily lives (NIF, 2021)

Keeping up with that trend, sellers on commerce platforms are trying to build their sales channels and product quality to attract customers

mostly from China, Japan, the United States, and South Korea, are still expanding their E-commerce presence in Vietnam Notably, five of the most profitable Southeast Asian E-commerce platforms, including Shopee, Lazada, The Gioi Di Dong, Tiki, and Sendo, are based in Vietnam (Acclime, 2022) Many consumers do not hesitate to change their shopping behavior This survey also shows that Vietnamese consumers have changed their lifestyles and purchasing habits (VnEconomy, 2022) In fact, in

2022, the number of Vietnamese people buying online reach more than 51 million, an increase of 13.5% compared to the previous year, with total spending on online shopping reaching 12.42 billion USD

fashion, furniture, personal care, and electronics

Book on Vietnamese E-Business 2022, revenue from E-commerce platforms is 5 billion USD in 2019 and is forecast to reach 39 billion USD in 2026 (Ministry of

provide a broad environment for green product markets, enabling consumers to not only have a better online shopping experience but also protect the environment (Hui He, 2020)

1.3 Research Gap

The field of e-commerce and green consumption

is becoming a growing tendency of the modern economy There are different studies on green buying behavior towards green products, however, primarily focus on the developed countries context (Soomro et

2

intrinsic mechanisms and influencing mechanisms that

affect the repurchase behavior of urban residents on

fresh product e-commerce platforms However, their

study only focuses on Chinese consumers’ activities

and limits to certain products In fact, green

consumption behavior has undergone different

changes based on culture, geography, and human

characteristics The findings of above studies do not

fully represent the Vietnamese consumer behavior

towards green products on e-commerce In the context

of Vietnam, studies of Lobo & Nguyen, (2017)and

urban consumers toward green purchasing along with

influencing factors However, recent studies only

discuss some ideas among Vietnamese consumers in

general, there is still a gap in terms of green buying

behavior and e-commerce platforms

1.4 Research question

1.4.1 Which factors influence green purchasing

behavior on E-commerce platforms?

1.4.2 How is the consumers’ purchase behavior of

green products on E-commerce platforms influenced

by these factors?

1.5 Research objectives

The primary objective of this research is to

identify and thoroughly examine the key factors

influencing Vietnamese consumers' intention to

purchase green through e-commerce platforms

Achieving this aim plays an important role in

providing valuable insights to promote green

consumerism and sustainable e-commerce adoption in

the Vietnamese market More specifically, the

research also aims to:

Study the role of Environmental Concern in

translating to greater intention and action towards

green e-commerce purchases of Vietnamese

consumers

Examine how Vietnamese consumers'

Environmental Knowledge indirectly impacts their

green buying intentions through influences on attitude

and other variables

attitudes toward purchasing online green products and determine the drivers that shape these attitudes Evaluate the impact of social influences from family, friends, society, and demographic factors like age, education, and income on Vietnamese consumers' willingness to buy green products on e-commerce platforms

Assess how behavioral control factors like consumer abilities, access to resources, and other constraints affect Vietnamese consumers' perceived ease or difficulty of buying green online

To conclude, the specific objectives are to gain a deeper understanding of how attitudes, social norms, Perceived Behavioral Control, Environmental Concern and knowledge drive Vietnamese consumers' intention to buy green products on e-commerce platforms

Chapter 2: Literature Review

The second chapter will define the factors affecting the intention to purchase green products on E-commerce platforms, the hypotheses, empirical research, and the conceptual framework

Chapter 3: Research Methodology

The third chapter will provide methodologies to conduct research on appropriate topics such as research philosophy, methods, strategies, selection of sample size, sample location, time and sample analysis method

Chapter 4: Finding

The fourth chapter will present the research results in detail and give brief comments for each

3

study are presented in the form of data

Chapter 5: Conclusion

This final chapter will outline the limitations in

doing process, provide incentives to use this research

paper as a reference for other articles related to the

topic of future research and conclude the research

paper

2 LITERATURE REVIEW

2.1 Definitions

2.1.1 Green products

Green products are defined as products that exhibit

significantly improved environmental and societal

performance throughout their life cycle, compared to

conventional or competitive products This definition

encompasses the different life cycle phases during

which a product can demonstrate its environmentally

friendly features, as highlighted by (Prothero, 1998)

Green products encompass not only those that

have a reduced environmental impact but also those

that offer greater environmental advantages when

compared to conventional products (Porter and

the concept of "green products" or "environmental

products" is frequently used in business to refer to

consumer goods that aim to safeguard or improve the

natural environment While it is acknowledged that no

consumer product can have a completely zero impact

on the environment, these terms are commonly

employed to describe products that strive to conserve

energy and/or resources, as well as reduce or eliminate

the use of toxic agents, pollution, and waste This

definition of green product development encompasses

various environmental aspects, including energy

consumption, resource utilization, pollution reduction,

and waste management

In conclusion, "green products" also known as

sustainable products or eco-friendly products, are

defined as goods and services that minimize the use of

and prevent waste generation from the initial conception stage These products are designed to meet the needs of consumers while minimizing the negative impacts on the environment and conserving resources for future generations

2.1.2 Online Purchase Intention

According to Pavlou (2003) theory, an online purchase intention is a customer's willingness and desire to engage in an online transaction Additionally, online transactions may be viewed as a process that involves the acquisition of information, the transmission of information, and the purchase of goods Web merchants must investigate the influence

of shopping orientations on the customer's intention to make an online purchase in order to activate that

intention

The degree of a consumer's intention to engage in

a certain purchasing behavior over the Internet will be determined by their customer's online purchase intention in the web-shopping environment (Salisbury

et al., 2001)

This phrase refers to a customer's readiness to browse, choose, and buy things online Online purchase intention was first described by (Khalifa,

based their definition of this word on an earlier definition of consumer behavior and intention by Fishbein & Ajzen(1975)

(Haan, 2023)

According to Chan and Hawamdeh (2002), commerce is the process of developing and transforming business partnerships through the use of networked computers E-commerce is predicted to

e-4

approach to business transaction completion It is

frequently related to online transactions including the

purchase and sale of goods and services

To sum up, e-commerce platforms are digital

marketplaces that facilitate the buying and selling of

products, services, and documents over the Internet

These platforms provide customers with the ability to

search for products, manage orders, and make

payments online

2.2 Theoretical Background and Hypotheses

Development

A popular hypothesis that attempts to explain

human behavior is the TPB (Ajzen, 1991) In addition,

it has been used to plan and assess behavioral change

initiatives across a range of fields (Steinmetz et al.,

intention to engage in a particular action determines how likely it is that they will do so Three factors—attitude toward the conduct, subjective norm, and Perceived Behavioral Control—have an impact on intention According to the TPB, each of these three constructs is influenced by a corresponding set of easily available beliefs, including behavioral beliefs, normative beliefs, and control beliefs

We use the structure of the proposed framework to investigate the Purchasing Intention of Green Products which is shown in Figure 1 In our study, there are 11 hypotheses drawn from six factors, including, Attitude towards Purchasing Green Products, subjective norm, Perceived Behavioral Control, environment concern, environment knowledge and Purchase Intention for

Green Products

2.2.1 Attitude towards Purchasing Green Products

(ATT)

Attitude, as defined by Ajzen (1991), represents

an individual's assessment of products or services,

which subsequently shapes their positive or negative

feelings towards a specific situation The relationship between attitudes and purchase intentions for green products has been supported by various studies conducted across different cultural and demographic segments (Dilotsotlhe, 2021 Marvi et al., 2020; ;

5

a responsible attitude toward sustainable products are

more likely to exhibit a positive mindset and make

environmentally conscious decisions Also, the

intention of individuals to purchase green products is

likely to be more favorable when they hold positive

attitudes towards green products (Bulsara & Trivedi,

2023) Hence, in this study, a similar association

between attitudes and the intention to purchase green

products can be stated in the following hypothesis:

H1: There is a positive association between Attitude

towards Purchasing Green Products and Purchase

Intention for Green Products

2.2.2 Subjective Norms (SN)

Subjective Norms are a set of rules that social

groups impose on their members, and individuals

consider these rules in their behavioral decisions

Norms are systematic adherence to rules for

individuals in a particular group or society

to the study of Park (2000), Subjective Norms are

individuals’ opinions that can influence their

decision-making process Research by Zukin and Maguire

(2004) has shown that social norms have a significant

impact on green consumption and are foundational to

various theories and models related to consumption

Subjective Norms (as well as consumer attitudes and

Perceived Behavioral Control) are important factors

that influence consumers' consumption intentions

Sethi and Jain (2020) believed that Subjective Norms

have a positive influence on the purchase intention of

green products Positive attitudes and more positive

Subjective Norms boost the purchase of organic food

products (Fishbein and Ajzen, 2010 Vermeir and ;

claim that people are more likely to intend to stay in

green hotels if they have a positive attitude and

Subjective Norms toward doing so Based on these

views, we propose:

H2: There is a positive association between

Subjective Norms and Purchase Intention for Green

Products

2.2.3 Perceived Behavioral Control (PBC)

In many previous studies, Perceived Behavioral Control is widely believed as an important determinant of behavioral intention (De Leeuw et al.,

control refers to an individual's belief about the easiness or difficulty of behavior toward a particular situation (Maichum et al., 2016) It is influenced by both external barriers (including price and availability)

factors (including consumption pleasure, skill, and ability) (Kidwell & Jewell, 2003) The concept of Perceived Behavioral Control has been added to solve the situation that people may not have enough complete volitional control over the behavior of interest (Ajzen, 2002) For example, despite the convenience and affordant price of non-eco-friendly products, you believe in your ability to protect the environment You might avoid using this kind of product and try to consume greener According to the theory of planned behavior, Perceived Behavioral Control is one of three types of beliefs that is essential

to develop Perceived Behavioral Control before generating behavioral intention Furthermore, Perceived Behavioral Control plays a direct and significant role in the intention of purchasing green products (Moser, 2015 Aitken et al., 2020; ) So we

propose the next hypothesis:

H3: There is a positive association between Perceived Behavioral Control and Purchase Intention for Green Products

2.2.4 Environmental Concern (EC)

Environmental Concern is always viewed as a person’s concern level for the environmental issues in the environment behavioral study (Hines et al., 1987)

It is defined as the measure by which people are aware

of environmental issues and take part in solving environmental problems (Maichum et al., 2016b) When a consumer stays away from goods and services that might seriously harm the environment, their level

of Environmental Concern is greater (Ogiemwonyi et

Concern is often cited as a strong motivator for green

6

of Environmental Concern on green product

purchasing intention was examined via several

previous research articles (Indriani et al., 2019;

(2013) demonstrated that those who are more

concerned about the environment used more green

products and paid greater attention to environmental

issues since they thought that humans were to blame

for the rise of these issues Indriani et al (2019) also

investigated that there was a positive relationship

between the results of Environmental Concern and

green purchase intention among Indonesian university

students The notion is that the higher the

Environmental Concern of the consumers, the more

directly associated with their positive attitude toward

green products which in turn increases their high level

of purchasing intention for such products Hence, this

study proposes the following hypotheses:

H4: There is a positive association between

Environmental Concern and Purchase Intention for

Green Products

The primary determinant of buying green

products was customer attitudes, which varied

depending on the level of Environmental Concern of

each person (Cerri, J., Testa, F., & Rizzi, F.,2018)

Balderjahn (1988) concluded that positive attitudes

toward the environment were associated with higher

participation in the purchase and use of green

products Hartmann and Apaolaza-Ibáez (2012)

studied the effects of Environmental Concern and

discovered that it influences attitudes and intentions to

buy green products Accordingly, we propose the

following hypothesis:

H5: There is a positive association between

Environmental Concern and Attitude towards

Purchasing Green Products

Some previous studies indicate that Subjective

Norms are related to Environmental Concerns through

customer behaviors Subjective Norms impact

attitudes in terms of some kind of ethical decision, and

purchasing organic food can also be perceived as an

ethical decision that reflects Environmental Concern

(Tarkiainen, A., & Sundqvist, S., 2005) According to

information leaflet on green electrical products are directly impacted by Environmental Concerns This finding suggests that students who were extremely concerned about the environment felt more support from significant references than students who were less concerned Based on this discussion, we proposed the following hypothesis:

H6: There is a positive association between Environmental Concern and Subjective Norms

The development of eco-friendly behavior depends heavily on Environmental Concerns A person who is environmentally conscious both in public and privately will act responsibly (Lou, X., &

Li, L M W., 2022) Chen, M., & Tung, P (2014)

predicted that through attitude, Subjective Norms, and Perceived Behavioral Control, EC indirectly influenced visitors' intentions to stay in green hotels Furthermore, many studies failed to explain green purchase behavioral intention using the TRA and TPB approach driven by attitude, Subjective Norms, and Perceived Behavioral Control, and as a result, there was found to be a weaker correlation between the attitude toward green purchasing and the actual purchase decision (Joshi, Y., & Rahman, Z.,

2015) So, in this extended TPB model, the following hypothesis has been predicted:

H7: There is a positive association between Environmental Concern and Perceived Behavioral Control

2.2.5 Environmental Knowledge (EK)

Environmental Knowledge refers to an understanding of information and ideas related to the natural world and its major ecological systems It encompasses facts, concepts, and connections about the environment (Indriani et al., 2019e) From the standpoint of the consumer, Environmental Knowledge may be described as the capacity to perceive and assess problems relating to human consuming activities and behaviors that might have a good or negative impact on the environment (Haron et

consumers have, the more informed they became,

7

purchasing eco-friendly products (Lee et al., 2012) In

some previous studies, researchers demonstrated that

there was a positive relationship between

Environmental Knowledge and Green Purchase

Intention (Joshi & Rahman, 2015) Although they did

not specify the kind of green goods, they observed a

direct correlation between Environmental Knowledge

and Green Purchase Intention and when that

relationship was mediated by Attitude As a result, we

hypothesize that:

H8: There is a positive association between

Environmental Knowledge and Purchase Intention

for Green Products.

Consumers' attitudes toward buying

environmentally friendly products are shaped by the

ideas and information they have acquired over the

course of their lives(Vazifehdoust et al., 2013) If

consumers possess awareness of environmental issues,

it encourages positive attitudes toward green products

Knowledge expressed less favorable environmental

attitudes than more knowledgeable students (Bradley

hypothesize the following:

H9: There is a positive association between

Environmental Knowledge and Attitude towards

Purchasing Green Products

Consumers' decisions are influenced by their

subjective knowledge because they are inspired to act

on their knowledge (Moorman et al., 2004)

According to the research of Jyhs Chiou (1998), they

demonstrated that Subjective Norms in the group of

people with high knowledge would effect significantly

on purchasing intention Environmental Knowledge

may also increase conformity to social norms if

individuals present themselves as knowledgeable to

meet perceived expectations (Yang & Kahlor, 2013)

Those adhering to norms may have greater

environmental awareness from paying more attention

to related information Given this, we suggested the

be more likely to buy green products and help conserve, preserve, and sustain the environment if they have Environmental Knowledge, awareness, and behavioral control (Mendoza et al., 2022).Consumers who have more green knowledge are more likely to have positive attitudes Therefore, green knowledge influences their purchasing behavior They are able to allocate more time and resources to making green purchases and value green products more highly Perceived Behavioral Control has a mediating role of green knowledge and green purchase intention (ITJEMAST 10(5) 2019, n.d.-b) Thus, the last proposed hypothesis is:

H11: There is a positive relationship between Environmental Knowledge and Perceived Behavioral Control

3 METHODOLOGY 3.1 Research Method

This study adopts a quantitative research approach to investigate purchase intention of green products on e-commerce platforms among consumers, which consists of demographic questions, filter questions, and measuring achievement With a systematic and rigorous approach to the quantitative method, it is well-suited for analyzing the insights that influence consumers' intention to purchase green products online, as well as drawing conclusions and supporting the research hypothesis and arguments

3.2 Sample and Data Collection

The data for this research were acquired through structured questionnaires, specifically designed for individuals aged 18 years or older with a higher level

of education, typically possessing at least a high school degree According to Chan (2001), the intricate nature of the green context being examined

8

given its complexity in influencing decision-making

Consequently, the preferred study sample

encompassed adult participants aged 18 years and

above Additionally, numerous researchers have

indicated that individuals with lower levels of

education may struggle to comprehend complex

topics compared to those with higher education (Paul

et al., 2016 Han et al., 201 Alwitt & Pitts, 1996; ; ;

Hedlund, 2011) To ensure that the quota sampling

was representative of the target population, this study

employed quota sampling to select participants who

were 18 years of age or older and had a minimum

high school education level residing in Vietnam The

income levels in the questionnaires are based on the

income levels divided in the article (Hanh, 2022)

disseminated among adults in Ho Chi Minh city from October 21, 2023, to October 23, 2023 A total of 308 valid responses were collected, and the sample size was determined with a 95% confidence level and a 5% margin of error The questionnaire required approximately 10-15 minutes to complete, and respondents received learning materials as a token of appreciation for their participation

Based on the descriptive statistics in Table 1, a majority of the respondents were females (55.52%), aged 18-26 years (90.58%), live with family & relatives (41.23%), be a student (84.44%), study at university/college (90.59%), and a monthly income range of 0-under 5 million VND per person (62.99%)

Table 1 Sample characteristics ( = 308) n

9

3.3 Measures

An online questionnaire survey was distributed to

collect data and test the research model The

questionnaire’s content and measurement items were

originally developed according to previous research

(Maichum et al., 2016 Jaiswal & Kant, 2018, ) All

constructs used in this study were measured by

various items on 5-point Likert-type scale (1 =

Completely disagree to 5 = Completely agree) The

survey questionnaire investigated respondents’

demographic characteristics, such as age, gender,

Purchasing Green Products, etc The questionnaire’s main measurement items are provided in Table 1 Table 2 provides descriptive data for the items

in the questionnaire about mean values and standard deviation The mean values of the six constructs are quite high It fluctuates between 3.400 to 3.975 The lowest mean value is Subjective Norms which reflects the popularity of green consumption among adults in

Ho Chi Minh City is not really high

Table 2 Descriptive data of the questionnaire items

Constructs/ Questionnaire Items Mean Standard

Deviation Sources

Maichum

et al., 2016

ATT1: I think that purchasing green product is favorable 4.030 0.906

ATT2: I think that purchasing green product is a good idea 3.890 0.931

ATT3: I think that purchasing green product is safe 3.530 0.990

SN1: My family think that I should purchase green products rather than

SN2: My close friends think that I should purchase green products rather

SN3: Most people who are important to me think I should purchase

green products rather than normal products 3.460 0.969

PBC1: I am confident that I can purchase green products rather than normal

PBC2: I see myself as capable of purchasing green products in future 3.770 0.840

PBC3: I have resources, time and willingness to purchase green products 3.490 1.003

PBC4: There are likely to be plenty of opportunities for me to purchase

EC1: I am very concerned about the state of the world’s environment 4.020 0.878

EC2: I am willing to reduce my consumption to help protect the

EC3: I often think about how the environmental quality in Vietnam can be

Jaiswal & Kant, 2018