Examining green consumerism motivational drivers: does premium price and demographics matter to green purchasing?

Environmental deterioration caused by consumers' non-sustainable consumption pattern is putting a strain on the environment and is hindering sustainable development. In order to impede this effect and promote a more sustainable economy, one solution is to reduce or shift consumption from conventional products to green products. The unfortunate reality indicates that inadequate information on how to promote consumers' green behavioral intention is slowing the growth of green markets; such inadequacy appears as a prevailing obstacle facing firms while developing segments and communicating strategies for effectively promoting green products. The mentioned impact is more prevailing and most experienced in countries like Malaysia. Hence, consumers' behavioral intentions must be better understood in order to strengthen knowledge about fostering green purchases. This study aims to determine the motivational factors that influence green purchasing intention and simultaneously assess the moderator roles of the premium price and demographic characteristics – given that consumers' degree of greenness varies. A survey was administered and a total of 405 usable questionnaires were obtained. Structural equation modeling (SEM) was applied to test the hypotheses. Results indicate that environmental attitude, eco-label and cultural value (man–nature orientation) significantly influence the green purchase intention. The result also indicates that the premium price has no moderating effect, denying its role as one of the main barriers for consumers to walk their talk as it has previously been reported by studies and opinion polls. In addition, the findings revealed that education level and gender have a significant positive moderation effect. This suggests that green purchase intentions' motivational factors are greater among highly educated individuals especially with female consumers in particular. This study contributes to the understanding of the main factors that motivate consumers' intention to purchase green products in Malaysia. It also offers insights and discusses implementations for manufacturers, marketers and policy makers concerned with the drivers that motivate consumers' green purchasing intentions which require different marketing plan and strategy than conventional products.

[1]  Stavros P. Kalafatis,et al.  Green marketing and Ajzen’s theory of planned behaviour: a cross‐market examination , 1999 .

[2]  Detmar W. Straub,et al.  Structural Equation Modeling and Regression: Guidelines for Research Practice , 2000, Commun. Assoc. Inf. Syst..

[3]  U. Sekaran,et al.  Research Methods for Business : A Skill Building Approach (5th Edition) , 1992 .

[4]  Marko Sarstedt,et al.  An assessment of the use of partial least squares structural equation modeling in marketing research , 2012 .

[5]  Ronald Drozdenko,et al.  PRICING OF GREEN PRODUCTS: PREMIUMS PAID, CONSUMER CHARACTERISTICS AND INCENTIVES , 2011 .

[6]  Lou E. Pelton,et al.  Factors affecting Mexican college students' purchase intention toward a US apparel brand , 2008 .

[7]  Ornella Malandrino,et al.  Eco‐labels: a sustainability performance in benchmarking? , 2007 .

[8]  N. Malhotra,et al.  Marketing Research: An Applied Approach , 2000 .

[9]  Nabsiah Abdul Wahid,et al.  Investigation of green marketing tools' effect on consumers' purchase behavior , 2011 .

[10]  김종식.  동아시아 문화와 경영, Geert Hofstede, Culture's Consequences: International Differences in Work-Related Values (Beverly Hills, CA:Sage Publications, 1980) ; and Cultures and Organizations : Software of the Mind (New York:McGraw-Hill, 1997) , 1999 .

[11]  G. Hofstede,et al.  Culture′s Consequences: International Differences in Work-Related Values , 1980 .

[12]  Shih-Chang Tseng,et al.  A framework identifying the gaps between customers' expectations and their perceptions in green products , 2013 .

[13]  Klaus G. Grunert,et al.  Consumer behaviour and marketing strategy , 1999 .

[14]  Taciano L. Milfont,et al.  Cultural Differences in Environmental Engagement , 2012 .

[15]  Lyndhurst Collins,et al.  Eco-labelling: success or failure? , 1997 .

[16]  Determining the factors affecting the consumers' willingness to pay higher prices for genetically unmodified products: Tomato case study in Turkey , 2009 .

[17]  David Jobber,et al.  Environmentally responsible purchase behaviour: a test of a consumer model , 2000 .

[18]  Marko Sarstedt,et al.  Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research , 2014 .

[19]  石井 敏,et al.  Understanding Intercultural Communication , 1980 .

[20]  P. Stern,et al.  The Value Basis of Environmental Concern , 1994 .

[21]  J. Hair.  Multivariate data analysis , 1972 .

[22]  F. Kaiser.  A moral extension of the theory of planned behavior: Norms and anticipated feelings of regret in conservationism. , 2006 .

[23]  Miriam Borchardt,et al.  Motivations for promoting the consumption of green products in an emerging country: exploring attitudes of Brazilian consumers , 2015 .

[24]  Philippe Mahenc,et al.  Signaling the environmental performance of polluting products to green consumers , 2008 .

[25]  Taciano L. Milfont,et al.  The environmental attitudes inventory: A valid and reliable measure to assess the structure of environmental attitudes , 2010 .

[26]  Debra Lilley,et al.  The effect of culture on sustainable behaviour in a design context , 2012 .

[27]  Erica Mina Okada,et al.  Framing the “Green” alternative for environmentally conscious consumers , 2010 .

[28]  Pierre Combris,et al.  Eco-labelled food products: what are consumers paying for? , 2009 .

[29]  S. Barr,et al.  Green consumption or sustainable lifestyles? Identifying the sustainable consumer. , 2005 .

[30]  M. Rokeach.  The Nature Of Human Values , 1974 .

[31]  H. A. Bekhet,et al.  Measuring e-statement quality impact on customer satisfaction and loyalty , 2011 .

[32]  Rudolf R. Sinkovics,et al.  Can socio-demographics still play a role in profiling green consumers? A review of the evidence and an empirical investigation , 2003 .

[33]  Mark R. Gleim,et al.  Against the Green: A Multi-method Examination of the Barriers to Green Consumption , 2013 .

[34]  B. R. Klemz,et al.  Managerial implications of predicting purchase behavior from purchase intentions: a retail patronage case study , 2003 .

[35]  Mohamed M. Mostafa,et al.  Antecedents of Egyptian Consumers' Green Purchase Intentions , 2006 .

[36]  Earl R. Babbie,et al.  Survey Research Methods , 1984 .

[37]  G. Grankvist,et al.  The Impact of Environmental Labelling on Consumer Preference: Negative vs. Positive Labels , 2004 .

[38]  Michel Laroche,et al.  Pro-Environmental Behaviors for Thee But Not for Me: Green Giants, Green Gods, and External Environmental Locus of Control , 2014 .

[39]  Gilbert A. Churchill.  A Paradigm for Developing Better Measures of Marketing Constructs , 1979 .

[40]  Barbara G. Tabachnick,et al.  Experimental designs using ANOVA , 2006 .

[41]  Ann E. Schlosser,et al.  Converting Web Site Visitors into Buyers: How Web Site Investment Increases Consumer Trusting Beliefs and Online Purchase Intentions , 2006 .

[42]  Suzanne C. Grunert.  On Gender Differences in Eating Behavior As Compensatory Consumption , 1993 .

[43]  Sejin Ha,et al.  The impact of eco-friendly practices on green image and customer attitudes: An investigation in a café setting , 2014 .

[44]  Ágnes Zsóka,et al.  Greening due to environmental education? Environmental knowledge, attitudes, consumer behavior and everyday pro-environmental activities of Hungarian high school and university students , 2013 .

[45]  Masoud Yazdanpanah,et al.  Application of the Theory of Planned Behaviour to predict Iranian students' intention to purchase organic food , 2015 .

[46]  Naveen Donthu,et al.  Cultural Influences on the Diffusion of New Products , 2002 .

[47]  A. Barrier.  Why Consumers Buy Green; Why They Don't , 2002 .

[48]  G. Hofstede.  Culture′s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations , 2001 .

[49]  I. Ajzen.  Nature and operation of attitudes. , 2001, Annual review of psychology.

[50]  Subhash Sharma,et al.  Identification and Analysis of Moderator Variables , 1981 .

[51]  M. Laroche,et al.  Targeting consumers who are willing to pay more for environmentally friendly products , 2001 .

[52]  F. Bartiaux.  Does environmental information overcome practice compartmentalisation and change consumers' behaviours? , 2008 .

[53]  Leila Elgaaied-Gambier,et al.  Others’ environmental concern as a social determinant of green buying , 2014 .

[54]  Joanne Vining,et al.  Predicting Recycling Behavior from Global and Specific Environmental Attitudes and Changes in Recycling Opportunities1 , 1992 .

[55]  K. Train,et al.  Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles , 1999, Controlling Automobile Air Pollution.

[56]  W. Thomas Anderson,et al.  The Socially Conscious Consumer , 1972 .

[57]  S. Cottrell.  Influence of Sociodemographics and Environmental Attitudes on General Responsible Environmental Behavior among Recreational Boaters , 2003 .

[58]  M. Wedel,et al.  A CROSS -NATIONAL INVESTIGATION INTO THE INDIVIDUAL AND NATIONAL CULTURAL ANTECEDENTS OF CONSUMER INNOVATIVENESS , 1999 .

[59]  M. Johnston,et al.  Using the theory of planned behaviour to develop targets for interventions to enhance patient communication during pharmacy consultations for non‐prescription medicines , 2014, The International journal of pharmacy practice.

[60]  L. Stoel,et al.  Predicting Chinese consumers' purchase intentions for imported soy‐based dietary supplements , 2012 .

[61]  B. L. Driver,et al.  Application of the Theory of Planned Behavior to Leisure Choice. , 1992 .

[62]  Thurasamy Ramayah,et al.  The role of quality factors in intention to continue using an e-learning system in Malaysia , 2010 .

[63]  H. A. Bekhet,et al.  Modelling electric vehicle usage intentions: an empirical study in Malaysia , 2015 .

[64]  Vicki G. Morwitz,et al.  Do Intentions Really Predict Behavior? Self-Generated Validity Effects in Survey Research , 2005 .

[65]  J. Sheth,et al.  Mindful consumption: a customer-centric approach to sustainability , 2011 .

[66]  Nancy Spears,et al.  Measuring Attitude toward the Brand and Purchase Intentions , 2004 .

[67]  Michael E. Cholette,et al.  Condition Monitoring and Operational Decision Making in Semiconductor Manufacturing , 2013, IEEE Transactions on Semiconductor Manufacturing.

[68]  Daniel Hoornweg,et al.  What a waste? : a global review of solid waste management , 2012 .

[69]  Carmen Tanner,et al.  Promoting sustainable consumption: Determinants of green purchases by Swiss consumers , 2003 .

[70]  H. Parsa,et al.  The Dynamics of Green Restaurant Patronage , 2010 .

[71]  Helmut Karl,et al.  Environmental labelling in Europe: European and national tasks† , 1999 .

[72]  Elena Pirani,et al.  Eco-Friendly Attitudes: What European Citizens Say and What They Do , 2011 .

[73]  John B. Unipan,et al.  Green Buying: The Influence of Environmental Concern on Consumer Behavior , 1997 .

[74]  Y. Wang,et al.  What affects green consumer behavior in China? A case study from Qingdao , 2014 .

[75]  Jacob Cherian,et al.  Green Marketing: A Study of Consumers' Attitude towards Environment Friendly Products , 2012 .

[76]  H. Triandis.  The Self and Social Behavior in Differing Cultural Contexts , 1989 .

[77]  Clare D'souza,et al.  An empirical study on the influence of environmental labels on consumers , 2006 .

[78]  James A. Roberts,et al.  Environmental segmentation alternatives: a look at green consumer behavior in the new , 1999 .

[79]  Rajiv Khosla,et al.  Examination of environmental beliefs and its impact on the influence of price, quality and demographic characteristics with respect to green purchase intention , 2007 .

[80]  E. Rex,et al.  Beyond ecolabels: what green marketing can learn from conventional marketing , 2007 .

[81]  Nils Urbach,et al.  Structural Equation Modeling in Information Systems Research Using Partial Least Squares , 2010 .

[82]  A. Kimball Romney,et al.  Variations in value orientations. , 1961 .

[83]  Vicki G. Morwitz,et al.  Sales Forecasts for Existing Consumer Products and Services: Do Purchase Intentions Contribute to Accuracy? , 2000 .

[84]  Shalom H. Schwartz,et al.  Identifying Culture-Specifics in the Content and Structure of Values , 1995 .

[85]  H. Triandis,et al.  The contingency model in cross-cultural perspective , 1993 .

[86]  Nik Ramli Nik Abdul Rashid.  Awareness of Eco-label in Malaysia’s Green Marketing Initiative , 2009 .

[87]  Ricky Y. K. Chan,et al.  Explaining Green Purchasing Behavior , 2002 .

[88]  Aindrila Biswas,et al.  Leveraging factors for sustained green consumption behavior based on consumption value perceptions: testing the structural model , 2015 .

[89]  M. Vicente-Molina,et al.  Environmental knowledge and other variables affecting pro-environmental behaviour: comparison of university students from emerging and advanced countries , 2013 .

[90]  K. Mcgeevor,et al.  A framework for practical and effective eco-labelling of food products , 2012 .

[91]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[92]  D. Schmuck,et al.  Consumers' green involvement and the persuasive effects of emotional versus functional ads , 2014 .

[93]  Icek Ajzen,et al.  From Intentions to Actions: A Theory of Planned Behavior , 1985 .

[94]  I. Ajzen.  The theory of planned behavior , 1991 .

[95]  Rajagopal.  Consumer culture and purchase intentions toward fashion apparel in Mexico , 2011 .

[96]  Jacqueline J. Kacen,et al.  The Influence of Culture on Consumer Impulsive Buying Behavior , 2002 .

[97]  J. Chung,et al.  Consumer purchase intention for organic personal care products , 2011 .

[98]  V. Corral-Verdugo,et al.  Environmental beliefs and water conservation: An empirical study , 2003 .

[99]  D. A. Kenny,et al.  The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. , 1986, Journal of personality and social psychology.

[100]  Benno Torgler,et al.  The Determinants of Individuals' Attitudes Towards Preventing Environmental Damage , 2005 .

[101]  Lau Teck Chai,et al.  Attitude towards the Environment and Green Products:Consumers’ Perspective , 2010 .

[102]  J. Nunnally.  Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[103]  Yung Yau,et al.  Eco‐labels and willingness‐to‐pay: a Hong Kong study , 2012 .

[104]  P. Stern.  New Environmental Theories: Toward a Coherent Theory of Environmentally Significant Behavior , 2000 .

[105]  Xueliang Yuan,et al.  A critical assessment of the Higher Education For Sustainable Development from students' perspectives – a Chinese study , 2013 .

[106]  M. A. Achabou,et al.  Eco-labelling brand strategy , 2014 .

[107]  Tahir Rehman,et al.  Using social-psychology models to understand farmers’ conservation behaviour , 2000 .

[108]  D. Davidson,et al.  Gender and Environmental Risk Concerns , 1996 .

[109]  Lynnette Zelezny,et al.  New Ways of Thinking about Environmentalism: Elaborating on Gender Differences in Environmentalism , 2000 .

[110]  Leonard Berkowitz,et al.  THE TRADITIONAL SOCIALLY RESPONSIBLE PERSONALITY , 1968 .

[111]  P. Ester,et al.  Cultural change and environmentalism: a cross-national approach of mass publics and decision makers , 2004 .

[112]  S. Schwartz.  Are There Universal Aspects in the Structure and Contents of Human Values , 1994 .

[113]  Luis M. Serra,et al.  Approach to a causal model between attitudes and environmental behaviour. A graduate case study , 2013 .

[114]  P. Sheeran,et al.  Does changing behavioral intentions engender behavior change? A meta-analysis of the experimental evidence. , 2006, Psychological bulletin.

[115]  Shijiu Yin,et al.  Consumers' purchase intention of organic food in China. , 2010, Journal of the science of food and agriculture.

[116]  Ricky Y. K. Chan.  Determinants of Chinese consumers' green purchase behavior , 2001 .

[117]  Mehmet Fatih Acar,et al.  Drivers of environmental processes and their impact on performance: a study of Turkish SMEs , 2013 .

[118]  R. Brislin.  The wording and translation of research instruments. , 1986 .

[119]  Eco-Labeling and Horizontal Product Differentiation , 2010 .

[120]  Naresh K. Malhotra,et al.  Basic Marketing Research: A Decision-making Approach , 2008 .

[121]  Bodo B. Schlegelmilch,et al.  The link between green purchasing decisions and measures of environmental consciousness , 1996 .

[122]  J. Hair.  Multivariate data analysis : a global perspective , 2010 .