Ambivalent attitude towards green products evidence from vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Truong Duong Tam AMBIVALENT ATTITUDE TOWARDS GREEN PRODUCTS: EVIDENCE FROM VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2015 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business - Truong Duong Tam AMBIVALENT ATTITUDE TOWARDS GREEN PRODUCTS: EVIDENCE FROM VIETNAM ID: 22130065 MASTER OF BUSINESS (Honours) SUPERVISOR: DR LE NHAT HANH Ho Chi Minh City - 2015 -i- ACKNOWLEDGEMENT Firstly, I would like to express my gratefulness to my supervisor Dr Le Nhat Hanh for her intensive support, valuable suggestions, instructions and encouragement during my research time period Besides my supervisor, I would like to express my deepest gratitude to Professor Nguyen Dinh Tho, Professor Nguyen Dong Phong, Dr Tran Ha Minh Quan, Dr Nguyen Thi Mai Trang, Dr Nguyen Thi Nguyet Que, Dr Nguyen Phong Nguyen and other lecturers for their valuable time as the members of the ISB research committee Their comments and meaningful suggestions have significantly contributed to this research I would like to sincerely thank all of my teachers at International School of Business – University of Economics Ho Chi Minh City for their teaching and guidance during my Master’s course Additionally, I would like to give my special thanks to my family for their supports either in financially or mentally They are the ones who supported me throughout the way I managed to complete my thesis Ho Chi Minh City, December, 2015 Truong Duong Tam - ii - ABSTRACT The comprehensive review of literature reveals that there is a shortage of research regarding to the ambivalent attitude toward green products This research aims to explore the predictors as well as predictive effect of ambivalent attitude toward green products in Vietnam Accordingly, new negative perceptions are added in model to distinguish this study from previous researches The conceptual framework and hypotheses development are grounded on related literature A qualitative study was conducted by in-depth interviews of eight consumers in order to modify the Vietnamese versions of the questionnaire and main survey This study was then undertaken with 310 respondents to test the measurement and the structural model The results demonstrated the reliability and the validity of the final measurement model, which were consistent with market information and the hypotheses which were accepted A framework model illustrated greenwashing, perceived consumer skepticism, green consumer confusion and green perceived risk have positive influence on ambivalent attitude toward green products Specifically, it was also revealed that the important role of green consumer confusion in relation to ambivalent attitude toward green products, compared to that of the rest of antecedents in the context of Vietnam Through the mediator role of ambivalence, this paper also examined the resistance to change as its consequence The results contributed to the extent of knowledge of ambivalent attitude as well as its antecedents and consequences in the field of green marketing, especially in Vietnamese market In addition, it provided practical implications for marketing managers in order to understand clearer attitude of consumers, from that they can build appropriate strategies to approach target consumers Keywords: ambivalent attitude toward green products, greenwashing, perceived consumer skepticism, green consumer confusion, green perceived risk and the resistance to change - iii - TABLE OF CONTENTS ACKNOWLEGEMENT i ABSTRACT ii TABLE OF CONTENT iii LIST OF FIGURES vi LIST OF TABLES vii CHAPTER – INTRODUCTION 1.1 Research background 1.2 Statement of the problem 1.3 Research objectives 1.4 Research methodology and research scope 1.5 Research contribution 1.6 Research structure CHAPTER – LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT 2.1 Introduction 2.2 Ambivalent attitude toward green products 2.3 Theoretical background 10 2.4 Hypotheses development 13 2.4.1 Greenwashing & ambivalent attitude toward green products 13 2.4.2 Perceived consumer skepticism & ambivalent attitude toward green products 14 2.4.3 Green consumer confusion & ambivalent attitude toward green products 16 2.4.4 Green perceived risk & ambivalent attitude toward green products 17 2.4.5 Ambivalent attitude toward green products & resistance to change 18 2.5 The proposal model and hypotheses of the research 20 2.6 Summary 21 CHAPTER – RESEARCH METHODOLOGY 23 3.1 Introduction 23 3.2 Research design 23 3.2.1 Research process 23 3.2.2 Measurement scales 24 - iv - 3.2.3 Questionnaire design 27 3.3 Measurement refinements 28 3.4 Quantitative study 29 3.4.1 Sample method 29 3.4.2 Data collection and procedure 31 3.4.3 Data analysis method 32 3.5 Summary 32 CHAPTER – DATA ANALYSIS 34 4.1 Introduction 34 4.2 Respondent‘s demographic 34 4.3 Reliability and Validity test 36 4.3.1 Reliability test 36 4.3.2 Validity test 37 4.4 Confirmed factor analysis (CFA) 40 4.5 Structural equation modeling (SEM) 42 4.6 Bootstrap method 43 4.7 Discussion of research findings 44 4.8 Summary 47 CHAPTER - CONCLUSION, IMPLICATION AND LIMITATION 49 5.1 Conclusion 49 5.2 Managerial implications 50 5.3 Limitation and further research 54 REFERENCES 56 APPENDICES Appendix A: Questionnaire in English version Appendix B: Questionnaire in Vietnamese version Appendix C: List of in-depth interview participants Appendix D: In-depth Interview’ refinement measurement scale Appendix E: Observation distribution test Appendix F: Standardized Regression Weights 10 Appendix G: Bootstrap Distribution 11 -v- LIST OF FIGURES Figure 2.1 A theoretical framework 21 Figure 3.1 Research process 24 Figure 4.1 Final measurement model 41 Figure 4.2 Structural results (standardized estimates) 43 - vi - LIST OF TABLES Table 2.1 Operational definitions of variables used 20 Table 3.1 Sources of measurement scale 26 Table 3.2 Calculating sample with quota sampling method 30 Table 3.3 Source of data collection 32 Table 4.1 Respondent’s characteristics 35 Table 4.2 Convergent and discriminant validity of the model constructs 38 Table 4.3 Correlation matrix 39 Table 4.4 Correlation among constructs 40 Table 4.5 Unstandardized structural paths 42 Table 4.6 Regression weights (Bootstrap standard error) 44 CHAPTER – INTRODUCTION 1.1 Research background “Seven billion dreams One planet Consume with care” is the slogan claimed by The United Nations Environment Program (UNEP) for the World Environment Day (WED) 2015 in the context of the increasing climate change currently faced by humans According to Galizzi (2006), 34 years after the first World Environment Day which was established by the UN General Assembly at Stockholm in 1972, the global community has made efforts to bring environmental issues into the agenda at international and national levels Yet the global environment in general has not remarkably improved It must be pointed out that due to the weak effort in environmental protection of humans, the abnormal climate phenomenon occurs at increasingly frequent and severe pace in recent years (Kuo and Chang, 2015) The main cause of abnormal phenomena which has been widely reported by scientists and organizations is carbon emission Reducing carbon emission as well as negative effects for the environment is a shared responsibility not only of nations but also of organizations and each individual At macro level, many nations have put in place legislation with specific policy and goal to raise the public concern about the environment and promote low-carbon economy For instance, in South Australia, the government claimed that their target was a 60 per cent reduction on 1990 levels by 2050 (Weatherill, 2015) or 40 per cent below 1990 levels by 2030 in North America (Brown, 2015) while in Vietnam, this number is at least to per cent per year by 2030 (Nguyen, 2013) As a result, public concern about the environment is increasing and going global day by day in the United States, Europe and East Asia throughout the 21st century (Eurobarometer 2008; Saad 2007; Xinhua News Agency 2008 as cited in Chang, 2012) Specifically, the more the nation is covered by coastal borders, the greater the percentage of consumers will concern about environmental issues These nations include Thailand (93%), Indonesia (92%), Vietnam and Philippines (91%) (Nielsen Sustainability Report, 2012) Green products which is termed as environmentally friendly products or eco-products are the products minimizing the pollution or damage to our environment; and in addition, they can be recycled or conserved (Shamdasani et al., 1993); whereby people who buy these products are called green consumers (Carrigan et al., 2004) Most people believe that environmental problems such as global warming, pollution of rivers and sea, acid rain, desertification, loss of biodiversity, and land degradation impact on their daily lives (Ellen, 1991; Junaedi, 2007) As a result, using eco-friendly products that minimize the negative effect on the environment have emerged as the best ways to behave toward the environment Although most consumers manifest their concern about environmental problems, yet they not necessarily turn these concerns into green buying behavior (Pickett-Baker and Ozaki, 2008) While some previous researches indicate the positive relationship between environmental concern and behavior (Fraj-Andres and Martinez-Salinas 2007; Mostafa 2007), numerous recent studies have supported that there is a weak concern – behavior link of consumer toward green products (Gupta and Ogden 2009; Tanner and Kast 2003), leading to slow green consumption That is, the rate of environmental concerns of consumer is not proportional to their attitude toward green products, leading to a chasm which persists between environmental concerns and purchasing green products (Chang, 2012) When it comes to Vietnam, the country which according to the United Nations, is one of the top ten nations most affected by climate change and rising sea level in the world (Vietnam Breaking News, 2014; Development Committee, 2008), the government is spending more efforts in protecting the environment with main concerns about resource efficiency and sustainable consumption and production In order to pave the way for fostering green consumption correlated with sustainable development, more than 300 legal documents belonging to the environmental activities have been issued as well as establishing Vietnam Green Purchasing Network (VNGPN) in 2009 to guide communities, organizations on the right track in behaving toward the environment and raising the public concern (Hoang and Nguyen, 2012) In addition to the numerous green consumption campaigns held annually, investigations have been under way into purging the so-called black enterprises, which are enterprises polluting the environment In 2012, an extensive investigation about 200 enterprises was conducted to detect 67 firms violating the environmental laws while eight of them were shut down (Vietnam News, 2013) This manifests the considerable effort of the government in the field of the environmental protection Green enterprises, consequently, have become a target construction of organizations, attracting many foreign direct investment (FDI) businesses (Talk Vietnam, 2014) According Hoang and Nguyen (2012), consumers in countries facing high 63 General Statistics Office of Vietnam (2009) Population and housing census 2009: Age and sex structure and marriage status of Vietnamese population Ministry of Planning & Investment (in Vietnamese) Premier Jay Weatherill (2015) News Release Retrieved from http://www.premier.sa.gov.au/images/news_releases/2015/15_04Apr/climatecompact.pd f Priester, J R., & Petty, R E (1996) The gradual threshold model of ambivalence: Relating the positive and negative bases of attitudes to subjective ambivalence Journal of personality and social psychology, 71(3), 431 Sääksjärvi, M., & Morel, K P 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Green product which is termed as environmentally friendly products or eco-products are the products minimizing the pollution or damage to our environment in manufacturing process and its lifecycle; and in addition, they can be recycled or conserved Product Have heard Have used Never heard Organic food (organic vegetables/rice…) Electricity saving equipment (compact fluorescent lamp, LED lamp…) Green energy machine (solar water heater, solar laptop/mobile charger …) Hybrid vehicle (electric bike, hybrid car…) Recyclable product (recycle nylon bag, recycled glass) Energy efficient appliances (refrigerator, television, air conditioner… which save electricity) If you selected “Never heard”, please stop your survey from her Thank you for your support PART 2: The next section explores your perception, attitude and behavioral intention toward green products Please carefully read each of following statement about green products and indicate your answer using the following 7-point scale where: Entirely disagree Mostly disagree Somewhat disagree Neither Somewhat agree nor agree disagree Mostly agree Entirely agree STATEMENT Most of the green claims mislead with word in its environmental practices Most of the green claims mislead with visuals or graphics in its environmental features Most of the green claims possess a green claim that is vague or seemingly un-provable Most of the green claims overstate or exaggerate how its green functionality actually is Most of the green claims leave out or masks important information, making the green claim sound better than it is Entirely disagree 1 1 2 2 3 3 → Entirely agree 4 4 5 5 6 6 7 7 Most environmental claims made on package labels or in advertising are true Environmental claims are exaggerated; consumers would be better off if such claims on package labels or in advertising were eliminated Most environmental claims on package labels or in advertising are intended to mislead rather than to inform consumers I not believe most environmental claims made on package labels or in advertising 10 It is difficult to detect the products in terms of environmental features 1 2 3 4 5 6 7 1 2 3 4 5 6 7 11 It is difficult to recognize the differences among environmental feature claimed products 12 I confuse to decide which green products should be purchased 13 It is difficult to choose which green products should be purchase 14 I rarely feel sufficiently informed about environmental features 15 I feel uncertain about environmental features 1 2 3 4 5 6 7 1 2 3 4 5 6 7 16 There is a chance that there will be something wrong with environmental performance of environmentally friendly products 17 There is a chance that environmentally friendly products will not work properly with respect to its environmental design 18 There is a chance that I will get penalty of using the green products 19 There is a chance that using environmentally friendly products will negatively affect the environment 20 Using environmentally friendly products would damage my green reputation or image 7 1 2 3 4 5 6 7 21 I have strong mixed emotions both for and against green products 22 I find myself feeling torn between the positive and negative sides of green products 23 I feel conflict when thinking about green products 24 I feel indecisive about green products 25 I feel ambivalent toward green products 1 1 2 2 3 3 4 4 5 5 6 6 7 7 26 In sum, a possible purchase of a green product would cause problems that I don't need 27 I would be making a mistake by purchasing a green product 28 In the near future, the purchase would be connected with too many uncertainties 1 2 3 4 5 6 7 PART 3: OTHER INFORMATION This section refers to background of biographical information The information will allow the researcher to classify and compare groups of respondents Gender: � Female � Male Age group: � 15-29 � 30-44 Education level: � Grammar school �College � 45-59 � 60 and above �High school/Vocational degree �Bachelor degree �Postgraduate Income per month (million VND/month) �50 triệu Nghề nghiệp anh/ chị là: � Học sinh/ sinh viên � Nhân viên văn phòng � Nội trợ � Doanh nhân � Bác sĩ � Giáo viên � Khác……………………………………… XIN CHÂN THÀNH CẢM ƠN ANH CHỊ ĐÃ HOÀN THÀNH BẢN KHẢO SÁT Appendix C: List of in-depth interview participants No Name Age Gender Job title Le Thanh Tam 36 Male Sales Executive Nguyen Ngoc Tram Anh 21 Female University student Huynh Bao Quyen 40 Female Director Dang Nhat Minh 45 Male Businessman Phan Thi Nhung 62 Female Homemaker Dao Hong Quan 66 Male Retired man Nguyen Hoang Phuong 16 Male High school student Bui Thi Thu Thao 53 Female HR Manager Appendix D: In-depth Interview’ refinement measurement scale Respondent’s information Original measurement scales Comments Final measurement scales Green consumer confusion Phan Thi Nhung , 62 years old, female Thật khó để phát sản phẩm có tính liên quan đến môi trường (GCC1) Mrs Nhung said the sentence was not smoothly She wanted to change the sentence Các tính mặt môi trường sản phẩm thường khó phát Le Thanh Tam, 36 years old, male Thật khó để nhận khác biệt sản phẩm tuyên bố có tính liên quan đến môi trường (GCC3) Interviewee recommended obmitting “được tuyên bố có tính liên quan” It should be replaced by “có đặc tính” and moved the object to the head Giữa sản phẩm có đặc tính thân thiện với môi trường thường khó phân biệt Respondent’s information Original measurement scales Comments Final measurement scales Perceived consumer skepticism Nguyen Ngoc Tram Anh , 21 years old, female Dang Nhat Minh, 45 years old, male Sẽ tốt cho người tiêu dung tuyên bố môi trường thường phóng đại nhãn bao bì hay mẫu quảng cáo bị gỡ bỏ (PCS2) Interviewee recommended that “sẽ tốt cho người tiêu dùng” should be changed into “cho nên tốt hơn” The sentence would be easier to understand Các tuyên bố môi trường thường phóng đại nhãn bao bì hay mẫu quảng cáo, tốt chúng bị xóa bỏ Dang Nhat Minh, 45 years old, male Tôi không tin hầu hết tuyên bố môi trường nhãn bao bì hay mẫu quảng cáo (PCS4) Interviewees said that it’s a subjective opinion They suggested that “Tôi không tin” should be replaced by “không đáng tin cậy” Hầu hết tuyên bố môi trường nhãn bao bì hay mẫu quảng cáo không đáng tin cậy Green perceived risk Bui Thi Thu Thao, 53 years old, female Các sản phẩm thân thiện với môi trường bị lỗi tính liên quan đến môi trường (GPR2) Mrs Thao recommended the sentence should be changed Các tính liên quan đến môi trường sản phẩm xanh bị lỗi Dao Hong Quan, 66 years old, male Tôi bị phạt sử dụng sản phẩm xanh (GPR3) Participant said that “trả giá” is more accurate than “bị phạt” Có thể phải trả giá cho việc sử dụng sản phẩm xanh Resistance to change The sentence is too strong Purchasing a green Tôi nghĩ việc mua sản product was a mistake We phẩm xanh sai could make mistake when lầm by purchasing it Nguyen Hoang Phuong, 16 years old, male Tôi phạm sai lầm việc mua sản phẩm xanh (RTC2) Huynh Bao Quyen , 40 years old, female Le Thanh Tam, 36 years old, male She said that the purchase Trong tương lai gần, việc would be “chứa đựng” but mua sắm kéo theo nhiều “kéo theo” many điều bất trắc (RTC3) uncertainties Trong tương lai gần, việc mua sắm chứa đựng nhiều rủi ro, bất trắc Appendix E: Observation distribution test Mean Items Std Deviation Skewness Kurtosis Statistic Statistic Statistic Std.Error Statistic Std.Error GW1 4.187 1.610 -0.288 0.138 -0.434 0.276 GW2 4.142 1.595 -0.070 0.138 -0.677 0.276 GW3 4.242 1.706 -0.098 0.138 -0.886 0.276 GW4 4.629 1.623 -0.441 0.138 -0.519 0.276 GW5 4.806 1.745 -0.580 0.138 -0.628 0.276 PCS1 4.039 1.580 -0.064 0.138 -0.636 0.276 PCS2 4.129 1.665 -0.113 0.138 -0.827 0.276 PCS3 3.990 1.513 -0.221 0.138 -0.593 0.276 PCS4 3.994 1.543 -0.111 0.138 -0.600 0.276 GCC1 4.494 1.631 -0.430 0.138 -0.590 0.276 GCC2 4.568 1.577 -0.470 0.138 -0.461 0.276 GCC3 4.642 1.691 -0.441 0.138 -0.593 0.276 GCC4 4.674 1.695 -0.535 0.138 -0.492 0.276 GCC5 4.532 1.702 -0.402 0.138 -0.726 0.276 GCC6 4.326 1.720 -0.184 0.138 -0.824 0.276 GPR1 4.723 1.539 -0.529 0.138 -0.230 0.276 GPR2 4.616 1.638 -0.328 0.138 -0.717 0.276 GPR3 3.816 1.649 0.096 0.138 -0.692 0.276 GPR4 3.535 1.692 0.221 0.138 -0.812 0.276 GPR5 3.065 1.774 0.570 0.138 -0.595 0.276 RTC1 3.990 1.606 -0.112 0.138 -0.631 0.276 RTC2 3.039 1.670 0.656 0.138 -0.268 0.276 RTC3 3.981 1.795 -0.103 0.138 -0.968 0.276 ABVA1 4.042 1.577 -0.174 0.138 -0.409 ABVA2 4.142 1.591 -0.351 0.138 -0.491 0.276 0.276 ABVA3 4.106 1.666 -0.246 0.138 -0.637 0.276 ABVA4 3.913 1.585 -0.091 0.138 -0.643 0.276 ABVA5 4.119 1.612 -0.167 0.138 -0.575 0.276 10 Appendix F: Standardized Regression Weights (Final measurement model) GW1 GW2 GW3 GW4 GW5 PCS1 PCS2 PCS3 PCS4 GCC1 GCC2 GCC3 GCC4 GCC5 GPR3 GPR4 GPR5 ABVA1 ABVA2 ABVA3 ABVA4 ABVA5 RTC1 RTC2 RTC3                          GW GW GW GW GW PCS PCS PCS PCS GCC GCC GCC GCC GCC GPR GPR GPR ABVA ABVA ABVA ABVA ABVA RTC RTC RTC Estimate 0.581 0.644 0.745 0.732 0.771 0.746 0.733 0.799 0.803 0.682 0.738 0.877 0.880 0.706 0.690 0.889 0.726 0.757 0.813 0.827 0.716 0.755 0.516 0.637 0.681 11 Appendix G: Bootstrap Distribution 567.106 598.678 630.251 661.823 693.395 724.967 756.539 788.111 819.683 851.255 882.828 914.400 945.972 977.544 1009.116 | -|* |* |**** |******* |************ |***************** |******************** |*************** |*********** |******** |***** |*** |* |* |* | ML discrepancy (implied vs sample) N = 2000 | -|* |* |****** |*************** |******************** |****************** |************ |******* |**** |** |* |* |* |* |* | -ML discrepancy (implied vs pop) ( N = 2000 Mean = 762.289 S e = 1.591 -541.333 -423.622 -305.911 -188.201 -70.490 47.221 164.932 282.643 400.354 518.064 635.775 753.486 871.197 988.908 1106.618 486.112 498.920 511.728 524.536 537.344 550.152 562.960 575.768 588.576 601.384 614.192 627.000 639.808 652.616 665.424 Mean = 546.684 S e = 516 | -|* |** |**** |****** |************ |****************** |******************** |******************* |*************** |********** |****** |*** |** |* |* | -12.899 27.695 68.290 108.884 149.479 190.073 230.668 271.262 311.856 352.451 393.045 433.640 474.234 514.829 555.423 | -|* |* |*** |******* |*************** |******************** |***************** |************ |******** |*** |** |* |* | |* | K-L overoptimism (unstabilized) K-L overoptimism (stabilized) N = 2000 N = 2000 Mean = 209.827 Mean = 211.701 S e = 5.884 S e = 1.602 12 ... associated with ambivalent attitude toward green products H4: Green perceived risk is positively associated with ambivalent attitude toward green products H5: Ambivalent attitude toward green products. .. Hypothesis (H3): Green consumer confusion is positively associated with ambivalent attitude toward green products 2.4.4 Green perceived risk and ambivalent attitude toward green products Green perceived... green products 13 2.4.2 Perceived consumer skepticism & ambivalent attitude toward green products 14 2.4.3 Green consumer confusion & ambivalent attitude toward green products 16 2.4.4 Green