VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DO MINH HANH FACTORS INFLUENCING CONSUMERS’ GREEN PURCHASE DECISION MASTER’S THESIS i LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY DO MINH HANH FACTORS INFLUENCING CONSUMERS’ GREEN PURCHASE DECISION MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Assoc. PHAM THI LIEN Prof. MOTONARI TANABU Hanoi, 2020 ii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ACKNOWLEDGEMENT First of all, I would like to send my sincere thankfulness to everyone in MBA program of VJU for creating a chance for me to be a student of VJU and supporting us during this 2-year experience. Liên and Prof.
Tanabu, I sincerely thank you for approving my thesis proposal, your patience and advices during my thesis process. Cô Hạnh, thank you so much for your supporting and encouragements in the last 2 years, since I started my extra classes at the beginning of my VJU journey. To Hino sensei and Hương-san, thank you for always being at the office, and for supporting us. Secondly, I am so grateful for all of my friends at VJU, MBA fellows, MAS pals, MCCD pals, Nano pals, VJU officers and MIE pals, have being by my side and support me during these school years.
So glad to have friends like you. And, in this journey, I have received supports from YNU IPO staffs also, Sakakibara-san, Mizuno-san, and Maeda-san, Matsui sensei, Morita sensei, Kodo sensei, Heller sensei, Guo sensei and other Professors and generous friends from YNU. Yours sincerely, Do Minh Hanh. iii LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS CHAPTER 1.
Green Purchase Inconsistency and related definitions. Green purchase decision. Green purchase Inconsistency. Streams of research.
Frameworks examined on buyer purchase decision process. Social dilemma and Self-control theories in Green purchase. Factors influencing on Green Purchase Decision - Hypothesis development. Reference Group’s Influence.
Expectation to Other’s Cooperation. In-group identity. Value – Altruism and Egotism. Hedonic motive - Novelty Seeking.
Perceived Behavior Control. Perceived Product Efficiency. Research conceptual model. Research Approach and Research Design.
Questionnaire and Pilot Testing. 45 iv LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Cronbach’s Alpha measurement. Exploratory Factor Analysis (EFA).
Confirmatory Factor Analysis (CFA). Structural Equation Modeling (SEM). Measurement Model Test. Cronbach’s Alpha measurement.
Exploratory Factor Analysis (EFA). Confirmatory Factor Analysis (CFA). Structural Model Test. Discussion on Findings.
Limitations and future research direction. Literature Review of Empirical Researches on Green purchase Inconsistency. 89 v LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF TABLES Table 2. Factors on Green Purchase.
Research streams on Green Purchase and foundation researches. Factors on Green Purchase Decision and related theories. List of Hypotheses. Measurement of Social Factors.
Measurement of Individual Factors. Measurement of Situational Factors. Measurement of Green Purchase Decision. Statistical Analysis Procedure.
Requirement for EFA result. Model Fit Requirement. Reliability of construction, Convergent validity and Discriminant validity. Respondents’ demographic information.
Cronbach’s Alpha result 1. Factor Analysis for PBC variable. Excluded and changed items. Cronbach’s Alpha result 2.
Rotated component – EFA result 1. Rotated component – EFA result 2. Model Fit result. Reliability, Convergent validity and Discriminant validity.
Latent variables and Observed variables. Model fit value of conceptual framework. Natural product: Interaction between latent variables. Hypotheses test for Natural product.
Reused product: Interaction between latent variables. Hypotheses test for Reused Product. Differences of hypotheses testing between 2 sorts of green product. 71 vi LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure 2.
Buyer Decision Process. Factors on Purchase behavior for Green personal care products. Frequency of Green Purchase. Monthly Expense for Green Purchase.
Place to buy Green Product. Hypotheses Structural Equation Modeling. 66 vii LUAN VAN CHAT LUONG download : add luanvanchat@agmail. Research background Environmental issues are one of the biggest challenges in the 21th century (Edgar G.
The emission to the air, land and water is not only caused by natural system processes anymore. Nowadays, human activities emit and alter the natural system more quickly than nature can adapt, recycle and purify (Nicolaisen et al. Thus, the Earth’s ecology system has been changed significantly: extreme weathers occur; natural resources are depleted and degraded; living creatures suffers unhealthy altered habitat, biodiversity loss occurs, human being’s health problems increases. This is not affect living standard of the present creatures but also of the future generation.
It is conceivable that human activities have been creating such adverse effects on environment tragically. Population, How we consume and How we produce things are 3 elements of human’s impact on the planet (George Monbiot, 2013). Humankind has induced environment degradation via excessive and polluted producing and consuming process, the increase of population requires higher resource consumption as well. Fossil fuel use (for transportation, production of manufacturing goods, etc.) and food consumption (agriculture and fishery) are said to have made significantly negative impacts on the Earth system’s balance.
In most countries, household consumption takes account up to 60% or more of final consumption’s effects on ecosystem. Food and housing have most influence on greenhouse gas emission, in emerging countries (Edgar G. In additions, humankind activities’ impacts tend to increase in the future as usual scenario, especially regards in economic activities (Edgar G. In particularly, the higher economic, income and population growth, the higher level of CO2 emission.
Besides, according to the United Nation, with the current trend, global population would be 9. To sustain resource demand of current lifestyle for that significant number of population, 3 planets like the Earth 1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com are in needed (United Nation website). If patterns of production and consumption are not changed, creatures will face more extreme effects (UNEP, George Monbiot). Since negative impacts on environment of excessive producing and consuming have increased tremendously, sustainable development has been emerged.
Sustainable development supports development which reduces adverse influence on the ecology and society (Joshi & Rahman, 2015). Sustainable production and consumption are two components of sustainable development. Firstly, sustainable production encourages on environmental sustainability practices at all processes of goods and services creation. Secondly, sustainable consumption indicates consideration of consumers on their buying, using and disposing products and services, how these things impact on environment.
Sustainable development has become global level, both in developed countries and developing economies. There has been an increase in the number and scope of environmental regulations by many governments. Approximately 100 countries are actively implementing policies and indicators to promote sustainable consumption and production (Groening et al. Green brands is indicated to grow rapidly at global level (Liobikienė & Bernatonienė, 2017).
European Commission reported that green product’s global market size is around $6 trillion, grow rate is around 13% annually (Goh & Balaji, 2016). Green products have developed in a wide range of industries: food, construction, energy, automobiles, hospitality, tourism, home appliance, etc. In Vietnam, sustainable development is concerned in recent years. To promote sustainable production and consumption, Vietnam government has introduced several regulations, takes part in international program and commitment, and is supported by international organizations.
In terms of business sectors, not only big companies (Unilever, Metro, Big C, etc.) join in this segment, there are enterprises start to provide green products such as Aneco, producer of bio compostable kitchen appliances (Thuy Ho Thanh, 2018). Even small business like café, restaurants, retail stores, their awareness for providing environmental friendly products and services has increased. They supply cane container, biodegradable or paper bag for food and beverage products, bamboo and rice straw for drinks, reducing price for customers 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com who bring their own jars to buy products. The variety of green products has been broaden, besides traditional green products like energy saving electronic appliances, companies provide a wide range of organic foods and beverage, natural component cosmetic, home appliance, green construction, ecotourism, etc.
Vietnamese consumers also show their interest in green products and services. As Nielsen Vietnam reported, Vietnamese consumers are concerned on “green”, “clean” issues and willing to pay higher for brands which commits on environmental friendly products and services (Thuy Ho Thanh, 2018). However, other polls show contrast results with the above positive patterns, both in the context of Vietnam and global (Gupta & Ogden, 2009; Goh & Balaji, 2016; Shao & Ünal, 2019; Joshi & Rahman, 2015; Gleim et al. Actually, green products accounts for a small part of global demand, about 1-3% of the total market, green product sales seem to be trending downward (Goh & Balaji, 2016).
Regarding to consumer, there is group of consumer does not trust in green claims of the products to be accurate (Goh & Balaji, 2016). There is another group who even shows their concern for environment or preference attitude for green product, but does not willing to obtain or pay a premium price for sustainable product (Gupta & Ogden, 2009), even there is the growing popularity of green products on retail shelves (Gleim et al. This result is similar with what written in Jing Shao’s study (Shao & Ünal, 2019): Almost 50% of respondents showed preference when being asked about buying hybrid cars, less than 12% of the respondents are predicted to purchase one due to current trade-offs. Hence, the positive tendency of consumers’ attitude would not predict accurately for their purchase on green product.
These phenomena show that it is challenge for marketer in green products field, there are barriers for consumers to acquire environmental friendly products. Besides, it is essential to have perspective on the demand side. Firstly, as Groening said: “The need to understand green purchasing behavior is especially timely due to environmental, scientific, and communication advances, such as the internet, and social media, and increases in consumer awareness of and concern with environmental issues including population growth and global warming” (Groening 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com et al. Secondly, it is advantage for business to capture benefits from green orientation (Gleim et al.
Hence, to have an insight of green purchase decision is necessary when the pattern of producing and consuming should be changed toward sustainable development goal for the current as the future generation. Research objectives Derived from the context described above, this present research aims to contribute prior studies on identifying factors for purchase decision on green products of consumers. In particularly, the present study examines proposed framework from previous theoretical studies to understand determinants on consumers’ green purchase based on two theories - social dilemma theory and self-control theory. These determinants are categorized into three groups including individual, situation and social factors.
- Individual factors are: value (altruism and egoistic), hedonic motivation (novelty seeking), and knowledge. - Situation factors are: perceived behavior control and perceived product efficiency. - Social factors are: reference group’s influence (informative, utilitarian and value expressive influences), in-group identity and expectation to others’ cooperation. This research aim to find answer for research question which is: - What factors influence on consumers’ green purchase decision? - To what extend these factors impact on consumers’ green purchase decision? 1.
Content scope: Factors influencing on consumers’ green purchase decision. Place scope: Hanoi and Ho Chi Minh City. 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In Vietnam, due to the fast speed of emerging economy, high rate of urbanization, social changes which led to numerous issues related to environment. Thus, many cities in Vietnam are polluted with atmosphere indication and waste problem are urgent recently with the fast pace of living lifestyle.
Besides, citizens, especially in fast-growing cities like Hanoi or Ho Chi Minh City, is considered to concern for green products and services, and also would have chances to approach this product segment.