The influence factors on green purchase behaviour based on consumption values theory and values attitude behaviour hierarchy

UNIVERSITYOFECONOMICSHOCHIMINHCITY InternationalSchoolof Business Ngo Ngoc Quyen Van THE INFLUENCE FACTORS ON GREEN PURCHASE BEHAVIOUR BASED ON CONSUMPTION VALUES THEORY AND VALUE-ATTITUDE-BEHAVIOUR HIERARCHY ID: 22120037 MASTEROF BUSINESS (Honours) SUPERVISOR: Dr Le NhatHanh HoChiMinhCity–Year 2015 The Influence Factors on Green Purchase Behaviour Based on Consumption Values Theory and Value-Attitude-Behaviour Hierarchy Ngo Ngoc Quyen Van 22120037 International School of Business – University of Economics Ho Chi Minh City Master Thesis Dr Le Nhat Hanh May 24, 2014 ACKNOWLEDGEMENT Firstly, I would like to express my gratefulness to my supervisor Dr Le Nhat Hanh for her professional guidance, intensive support, valuable suggestions, instructions and encouragement during the time of doing my research I would like to express my deepest gratitude to Professor Nguyen Dinh Tho, Professor Nguyen Dong Phong, Dr Tran Ha Minh Quan, Dr Nguyen Phong Nguyen and other teachers for their valuable time as the members of the proposal examination committee Their comments and meaningful suggestions contributed significantly for my completion of this research My sincere thanks are given all of my teachers at International School of Business – University of Economics Ho Chi Minh City for their teaching and guidance during my Master course ABSTRACT Green initiatives are fast becoming a catchphrase among societies and business entities as these entities strive to ensure more sustainable business operations and lifestyle Research in green behaviours of consumers in Asia, especially in Vietnam is only just emerging The objective of this study, therefore, is to examine the factors that influence consumers’ green purchase behaviour The conceptual framework and hypotheses development are grounded on related literature We examined five independent variables which represent five pertinent dimensions of consumer perceived value and their effects on green purchase behaviour through green purchase attitude The questionnaire was adapted from validated items from related prior works The analysis was based on 406 valid responses from consumers of Ho Chi Minh City The findings reveal that four of the six hypotheses are supported Particularly, emotional value, epistemic value and conditional value have positive effects on attitude towards green products, which in turn significantly affect green purchase behaviour Managerial and research implications of the findings are also further discussed Table of Contents Chapter 1: Introduction…………………………………………………………………………….8 1.1 Research background………………………………………… ……… 1.2 Research gap……………………………………………………….……11 1.3 Research objectives………………………………………… ….………13 1.4 Research methodology and scope……………………………… … .13 1.5 Research contribution………………………………………….……… 14 Chapter 2: Literature Review………………………………………………………… 16 2.1 Theoretical framework…………………………………………………… 16 2.2 Attitude and behavior towards green purchasing………………… … .18 2.3 Consumer perceived value…………………………………………….… 21 2.4 The conceptual model and hypotheses of the research………… … ….24 Chapter 3: Research methodology…………………………………………………… 27 3.1 Sample……………………………………………………………… ……27 3.2 Data collection and procedure………………………………… …………28 3.3 Questionnaire design……………………………………… ….………… 30 3.4 Data analysis method…………………………………………… ……… 34 Chapter 4: Data analysis……………………………………………………… …… 36 4.1 Respondents’ demographics…………………………………….…… ….36 4.2 Reliability test………………………………………………………… 38 4.3 Exploratory factor analysis (EFA)……………………………… ….……45 4.4 Discriminant validity test…………………………………………….……53 4.5 Regression analysis………………………………………………….……56 Chapter 5: Conclusion, implications and limitations……………………… …… 63 5.1 Conclusion…………………………………………………… …………63 5.2 Managerial implications………………………………………… ………64 5.3 Limitations and future research…………………………………… ……66 References…………………………………………………………………… …… 67 Appendices…………………………………………………………………….…….77 LIST OF FIGURES Figure 2.1: The theory of consumption values model…………………….……… 17 Figure 2.2: A theoretical framework…………………………………….………….25 Figure 4.1: Final theoretical framework……………………………………………62 LIST OF TABLES Table 3.1 Source of data collection………………………………………… …… 29 Table 3.2 Source of measurement scale…………………………………… ………31 Table 4.1 Respondents’ characteristics……………………………………………….36 Table 4.2 Reliability test – Scale: Functional value………………………… …….39 Table 4.3 Reliability test – Scale: Emotional value………………………… …….41 Table 4.4 Reliability test – Scale: Conditional value………………………… 42 Table 4.5 Results of reliability assessment for the modified framework……………43 Table 4.6 First time running EFA result for independent variables…………………45 Table 4.7 Reliability test for functional value with six remaining items…… ………45 Table 4.8 Second time running EFA result for independent variables………… … 48 Table 4.9 EFA for dependent variables result………………………………… …… 51 Table 4.10 Correlations matrix………………………………………………… …….53 Table 4.11 Simple regression analysis result……………………………….… ………57 Table 4.12 Multiple regression analysis result……………………………… ……… 56 Table 4.13 Result of hypotheses testing…………………………….……… ……….61 Chapter 1: Introduction This introductory chapter provides the background to this study along with its rationale A general picture of the impacts caused need of new and green resources is drawn, and overview of green consumerism and green purchase behaviour is presented to highlight the importance and significance of the study This first chapter also sets out the research objectives, research questions and briefs some important contents such its methodology, procedures and research contribution 1.1 Research Background Nowadays, the environment is threatened in a wide variety of ways such as global warming, ozone depletion, shortage of drinking water, loss of biodiversity and land degradation (Hoang & Nguyen, 2012) According to the Nielsen Sustainability report in 2012, in many of the countries with high percentages of coastal borders, the percentage of consumers concerned about climate change almost reaches 100, including Thailand (93%), Indonesia (92%), Vietnam and Philippines (91%) As a result, people are now seeking for new resources, new products that could reduce the pollution (Sheng, 1995) Today, 64 percent of consumers, globally, indicated they believe organic products are good for the environment, including 72% of Asia Pacific respondents think green product are environmentally-friendly (Nielsen, 2013) There are several definitions and classifications of green products (Dangelico and Pontrandolfo, 2010) In particular, The European Communities (2004) defines green products as products that "use less resource, have lower impacts and risks to the environment and prevent waste generation already at the conception stage" In this research, green product is defined as ecological and environmental friendly produced that integrates greener strategies in terms of packaging and lesser use of toxic materials which help reduce natural environment impact (Chen & Chai, 2010) A global consumer report conducted by Nielsen in July 2013 has revealed that Asia-Pacific were the most receptive to making an ecological difference by purchasing ecological-responsible products; Thais, Indonesians, Vietnamese, Filipinos and Chinese are eco-minded and willing to change their lifestyle to save energy and reduce carbon footprint The Development Committee (2008) revealed that Vietnam is one of the countries hardest hit by climate change and rising sea levels Therefore, the Vietnamese Government is adamant that socio-economic development must go together with environmental protection (Asia Pulse News, 2009) It is reported by the Ministry of Justice that there are 300 legal documents in the field of environmental protection to regulate the behaviours of individuals, organizations, economic activities, technical procedures and raw material production processing Yet, there are incomplete, inconsistent and unstable flaws that need amending; however, it states the Government’s effort in making the change (Hoang & Nguyen, 2012) In the Asia Pulse in 2009, Vietnam encourages cooperation from foreign partners to conduct research into the development of green technologies In addition, the United Nations (2011) denoted that Vietnam has seen rapid urbanization, rising new wealth and higher disposal income 79 The green product offers value for money  The green product is good product for the price  10 The green product would be economical  11 Buying the green product would help me to feel acceptable  12 Buying The green product would improve the way I am  perceived 13 Buying the green product would make a good impression on  other people 14 Buying the green product would give its owner social approval  15 The green product is one that I would enjoy  16 The green product would make me want to use it  17 The green product is one that I would feel relaxed about using  18 Buying the green product would make me feel good  19 Buying the green product would give me pleasure  20 I would buy the green product instead of conventional products  under worsening environmental conditions 21 I would buy the green product instead of conventional products  when there is a subsidy for green products 22 I would buy the green product instead of conventional products  80 when there are discount rates for green product or promotional activity 23 I would buy the green product instead of conventional products  when green products are available 24 Before buying the product, I would obtain substancial  information about the different makes and models of products 25 I would acquire a great deal of information about the different  makes and models before buying the product 26 I am willing to seek out novel information  27 I like to search for the new and different  28 I like the idea of purchasing green  29 Purchasing green is a good idea  30 I have a favorable attitude toward purchasing a green version of  a product 31 When shopping, I deliberately check products for  environmentally harmful ingredients 32 When shopping, I deliberately choose products with  environmentally friendly packaging 33 I shall choose to buy environmentally friendly products even if they are more expensive than others  81 34 When shopping, when I consider buying a product, I will look  for a certified environmentally safe or organic stamp III Section This section refers to background of biographical information The information will allow the researcher to classify and compare groups of respondents Gender Male ⃝ Female Age group in years ⃝ 19-23 24-30 ⃝ 31-40 ⃝ Educational level 41-50 ⃝ 51 or older ⃝ ⃝ Grammar school High school/Vocational degree ⃝ College/Bachelor degree ⃝ ⃝ Postgraduate Occupation Student ⃝ Employed ⃝ Businessman/woman ⃝ Homemaker ⃝ Others ⃝ ⃝ 82 Income per month (million VND/month) Under ⃝ 3-5 ⃝ 5-8 ⃝ 8-11 ⃝ Over 11 ⃝ 83 Thank you for your co-operation in finishing this questionnaire 84 Appendix B: Questionnaire in Vietnamese version Kính chào Anh/Chị, Tôi tên Ngô Ngọc Quyền Vân, học viên cao học Viện đào tạo quốc tế ISBtrường Đại học Kinh tế TP HCM Tôi nghiên cứu hành vi mua sản phẩm xanh Việt Nam Tôi mong Anh/Chị dành khoảng 10 phút trả lời phiếu khảo sát Tất ý kiến Anh/Chị có giá trị nghiên cứu Tôi xin cam kết thông tin Anh/Chị bảo mật dùng với mục đích phục vụ nghiên cứu Trong trình thực phiếu khảo sát này, Anh/Chị có thắc mắc nào, xin vui lòng liên hệ với qua email: nnqvan@gmail.com Xin chân thành cám ơn giúp đỡ Anh/Chị I Phần 1: Phần tìm hiểu hiểu biết sản phẩm xanh Anh/chị Anh/Chị vui lòng cho biết Anh/Chị có nghe qua hay sử dụng sản phẩm xanh sau đây: Sản phẩm Thực phẩm sạch, thực phẩm hữu (rau hữu cơ, gạo ) Thiết bị tiết kiêm điện (đèn compact, đen huỳnh quang LED ) Những sản phẩm hoạt động lượng ( thiết bị điện sử dụng lượng mặt trời,bình nước nóng lượng mặt trời, máy tính chạy pin lượng ) Từng Từng sử nghe qua dụng 85 Phương tiện thân thiện với môi trường ( xe đạp điện, xe máy, ô tô tiết kiệm xăng chạy xăng sinh học ) Những sản phẩm làm từ vật liệu tái chế (Túi nilon, bình chai thủy tinh ) Đồ điện gia dụng gia đình tiết kiệm điện (tủ lạnh, ti vi, máy điều hòa nhiết độ, bóng đèn tiết kiệm điện) II Phần 2: Phần tìm hiêu nhận thức, thái độ, hành vi việc mua sản phẩm xanh Xin cho biết mức độ đồng ý Anh/Chị phát biểu sau cách đánh dấu X vào ô tương ứng với: 1-Hoàn toàn không đồng ý 4-Đồng ý 2-Không đồng ý 5-Hoàn toàn đồng ý 3- Không ý kiến CÂU HỎI TRẢ LỜI Sản phẩm xanh có chất lượng đồng  Sản phẩm xanh làm kỹ lưỡng  Sản phẩm xanh có chất lượng chấp nhận  Sản phẩm xanh dùng tốt  Sản phẩm xanh làm cẩu thả  86 Sản phẩm xanh sử dụng lâu  Sản phẩm xanh có giá hợp lý  Sản phẩm xanh xứng đáng số tiền bỏ  Sản phẩm xanh sản phẩm tốt tương ứng với giá  10 Sản phẩm xanh có giá trị kinh tế  11 Mua sản phẩm xanh giúp cảm thấy hoan nghênh  12 Mua sản phẩm xanh giúp cải thiện nhận thức người khác  13 Mua sản phẩm xanh giúp gây ấn tượng tốt với người 14 Mua sản phẩm xanh giúp cho người tán thưởng 15 Sử dụng sản phẩm xanh khiến thích  16 Sản phẩm xanh làm cho muốn sử dụng  17 Sản phẩm xanh làm cho thoải mái sử dụng  18 Mua sản phẩm xanh giúp cảm thấy thích thú  19 Mua sản phẩm xanh làm thấy hài lòng  20 Tôi mua sản phẩm xanh thay sản phẩm thường điều kiện môi trường xấu 21 Tôi mua sản phẩm xanh thay sản phầm thường sản phẩm xanh trợ giá     87 22 Tôi mua sản phẩm xanh thay sản phầm thường sản phẩm xanh giảm giá có hoạt động khuyến  23 Tôi mua sản phẩm xanh thay sản phầm thường sản phẩm xanh bày bán rộng rãi 24 Trước mua sản phẩm, muốn tìm hiểu thông tin quan trọng trình sản xuất/chế biến sản phẩm 25 Tôi tìm hiểu cặn kẽ trình sản xuất/chế biến sản phẩm    26 Tôi sẵn sàng tìm kiếm thông tin  27 Tôi thích tìm hiểu lạ khác biệt  28 Tôi thích ý tưởng mua sản phẩm xanh  29 Mua sản phẩm xanh ý tưởng hay  30 Tôi có thiện cảm phiên xanh sản phẩm  31 Khi mua sắm, trọng kiểm tra thành phần độc hại sản phẩm 32 Khi mua sắm, thận trọng chọn sản phẩm có bao bì thân thiện với môi trường 33 Tôi chọn mua sản phẩm thân thiện với môi trường dù chúng mắc sản phẩm khác 34 Lúc cân nhắc mua sản phẩm mua sắm, tìm kiếm xem sản phẩm có cấp chứng nhận an toàn với môi     88 trường hay không III Phần Xin Anh/Chị cho biết số thông tin sau để phục vụ cho việc phân loại so sánh nhóm đối tượng khảo sát Giới tính Nam ⃝ Nữ Nhóm tuổi ⃝ 19-23 24-30 Trên 51 ⃝ ⃝ 31-40 ⃝ 41-50 ⃝ ⃝ Trình độ học vấn Dưới phổ thông trung học ⃝ Phổ thông trung học – Trung cấp nghề Cử nhân cao đẳng – đại học ⃝ Cao học ⃝ ⃝ Nghề nghiệp Sinh viên Nhân viên Tự doanh ⃝ ⃝ Nội trợ ⃝ Ngành nghề khác ⃝ ⃝ Mức thu nhập (đơn vị tính: triệu đồng) Dưới triệu đồng 3-5 triệu đồng ⃝ ⃝ 5-8 triệu đồng 8-11 triệu đồng ⃝ ⃝ 89 Từ 11 triệu đồng trở lên ⃝ Cảm ơn Anh/Chị tham gia khảo sát 90 Appendix C: Histogram, Normal Regression and Scatter plot of Dependent Variable: Green Purchase Attitude 91 92 Appendix D: Histogram, Normal Regression and Scatter plot of Dependent Variable: Green Purchase Behaviour 93 ...1 The Influence Factors on Green Purchase Behaviour Based on Consumption Values Theory and Value -Attitude -Behaviour Hierarchy Ngo Ngoc Quyen Van 22120037 International School of... through attitude Second, this paper will adopt the two theories in order to examine the relationship between customer perceived values, green purchase attitude and green purchase behaviour The theory. .. value -> attitude -> behaviour The main feature of the model is its emphasis on the mediating role of attitudes on the values and behaviours relationship Homer and Kahle (1988) tested the model