UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- NGUYEN YEN BINH INVESTIGATING THE ROLE OF ENVIRONMENTAL CONCERN, GREEN PERCEIVED KNOWLEDGE, AND GREEN TRUST ON GREEN PURCHASE INTENTION IN HO CHI MINH CITY MAJOR: BUSINESS ADMINISTRATION MAJOR CODE: 7340101 GRADUATION THESIS THESIS ADVISOR: DR. LE THI HAI YEN HO CHI MINH CITY, MARCH 12th 2024 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF BUSINESS ADMINISTRATION --- NGUYEN YEN BINH INVESTIGATING THE ROLE OF ENVIRONMENTAL CONCERN, GREEN PERCEIVED KNOWLEDGE, AND GREEN TRUST ON GREEN PURCHASE INTENTION IN HO CHI MINH CITY MAJOR: BUSINESS ADMINISTRATION MAJOR CODE: 7340101 GRADUATION THESIS THESIS ADVISOR: DR. LE THI HAI YEN HO CHI MINH CITY, MARCH 12th 2024 i TABLE OF CONTENT LIST OF TABLES ___________________________________________________ iii LIST OF FIGURES __________________________________________________ iv ABSTRACT __________________________________________________________ v OVERVIEW _________________________________________________________ 1 1. Reason for choosing the topic: _______________________________________ 1 2.
Overview of the research situation of the topic: ________________________ 3 3. Main content of the topic: _________________________________________ 13 8. Limitations of the topic and future research directions: ________________ 13 CHAPTER 1: INTRODUCTION _______________________________________ 15 1.1 Overview of the situation: ________________________________________ 15 1. Green consumption: ____________________________________________ 16 CHAPTER 2: THEORETICAL BASIS AND RESEARCH HYPOTHESIS ______ 19 2.
Theory of reasoned action (TRA): _________________________________ 19 2. Green purchase intention: _______________________________________ 19 2. Factors of green purchase intention: _______________________________ 20 2. Green perceived knowledge: ____________________________________ 22 2.
Theoretical framework __________________________________________ 26 CHAPTER 3: RESEARCH METHOD ___________________________________ 28 3. Sample and Data Collection Method: ______________________________ 28 3. Data Analysis Method ___________________________________________ 29 3. Pilot study _____________________________________________________ 31 CHAPTER 4: DATA ANALYSIS & DISCUSSION: ________________________ 32 4.
Sample description: _____________________________________________ 32 ii 4.2 Assessing the reliability of the scale: ________________________________ 34 4.3 Exploratory factor analysis (EFA): _________________________________ 36 4.4 Confirmatory Factor Analysis (CFA): ______________________________ 38 4.5 Structural Equation Modeling - SEM: ______________________________ 39 4. Evaluate Regression Coefficient (Regression Weight): _______________ 39 4. Evaluate Standardized Regression Weights: ________________________ 39 4.3 Evaluate the role of mediating variables: ___________________________ 40 4.6 Extensive analysis: ______________________________________________ 42 CHATER 5: CONCLUSION, THEORETICAL CONTRIBUTION & MANAGERIAL IMPLICATIONS _______________________________________ 45 5.4 Limitations & Future research: ___________________________________ 47 iii LIST OF TABLES Table 3. 1: Table of questionnaires.
2: Details of the thesis’s scale. 3: Pilot test’s Cronbach Alpha coeficient Source: Analysis results using SPSS software. 1 Sample description Source: Result from Excel analysis. 2: results of Cronbach's Alpha reliability test for independent variables, intermediate variables and dependent variables Source: Analysis results using SPSS software.
3: KMO coefficient and Bartlett's test Source: Analysis results using SPSS software. 4: Total Variance Explained Source: Analysis results using SPSS software. 5: Results of running Pattern Matrix for the last time Source: Analysis results using SPSS software. 6: Evaluate the model's fit index Source: Author's Amos 20.
7: Results for testing convergent validity. discriminant validity and composite reliability (Critical Ratios) Source: Author's Amos 20. 8: Results of SEM analysis of direct relationships Source: Author's Amos 20. 9: Results of Standardized Regression Weights Source: Author's Amos 20.
10: Results of SEM analysis of indirect relationships Source: Author's Amos 20. 11: Degree of direct, indirect and total influence of variables in the model Source: Author's Amos 20. 12: Summary of results for each hypothesis Source: Author’s analysis. 13: Frequency of mention of individual words in four categories Source: Author’s analysis.
84 iv LIST OF FIGURES Figure 2. 1: Conceptual framework Source: Chairy &Alam (2019). 1: Results of testing the CFA model Source: Author's Amos 20. 2: SEM (standardization) results Source: Author's Amos 20.
87 v ABSTRACT In the backdrop of an acute awareness of the pressing environmental issues and the extensive impact it exerts on society as a whole, this thesis offers a thorough examination of the elements influencing the intention to engage in environmentally friendly purchasing and plays an active role in fostering a sustainable environment. This study, which was done in Ho Chi Minh City, had 279 customers who had previously made green purchases. Besides, it made use of conventional sampling and quantitative techniques to examine the impacts of green perceived awareness of environmentally friendly behaviors and environmental concern, is inspired by the research model used in Indonesia by Chairy & Alam (2019). This thesis also examines how green trust functions as a mediating factor in the relationship that these factors have with customers' propensity to buy ecologically friendly goods and services.
To find out more about the local context-specific elements impacting green purchase intentions, a brief investigation is also included in this thesis. Finally, the findings are in line with those of Chairy & Alam, confirming the positive and direct impact that customers' perceived knowledge of eco-friendly activities and environmental concerns have on their intents to purchase environmentally friendly products, with green trust acting as a mediating factor. Interestingly, pricing is determined to be the main factor influencing purchase intentions, contributing significantly to existing theories and providing a solid theoretical framework. Reason for choosing the topic: In addition to concerns about the economy, healthcare, unemployment, and crime, environmental challenges are the most pressing issues facing modern civilization (Paetz et al.
Along with the issues of population increase and social consumption, Vietnam alone is presently dealing with serious issues related to environmental preservation and sustainable development. Global environmental groups have supplied information showing Vietnam has consistently ranked among the top 5 nations with the highest amount of rubbish thrown into the sea since 2016. Especially in Ho Chi Minh City, there are significant issues with environmental contamination, particularly with water pollution. In particular, data from the Thong Nhat Environment newspaper indicates that in 2022, the daily average of around 40 tons of rubbish and 70,000 m3 of wastewater was dumped into this river system.
Moreover, a major obstacle that both Vietnamese people and those around the Asia facing is the marked loss in natural resources. Waste from daily activities is thought to be one of the main contributing factors to this condition among its causes. According to Jaiswal & Kant, (2018) one of the causes of serious environmental problems, including global warming, water, air and soil pollution, is unsustainable consumption. This is supported by statistics showing that 30- 40% of environmental degradation is due to the consumption activities of private households (Grunert, 1993).
Furthermore, data indicates that Vietnamese consumers' demands have grown significantly over time. In 2022, retail sales of consumer products are expected to rise by 9.5%, outpacing the country's economic development (6.5%), making it challenging to stop the garbage and plastic packaging boom that is seriously polluting the environment. As a result, numerous experts have identified green consumerism as a practical means of resolving this issue and safeguarding the environment for future generations. This is also the driving force why both producers and consumers need to prioritize green products, in which consumers play an important role in protecting the environment.
Besides, in reality, environmentally friendly 2 manufacturing and consumption practices, as well as green consumption, are gaining increasing attention in Vietnam. Vietnamese consumers are becoming more and more interested in the topic of "green" and "clean" consumption, as evidenced by the government's adoption of laws and implementation of several initiatives and programs aimed at improving public knowledge of green consumption. Simultaneously, the national plan on green growth for the 2021–2030 timeframe mentions green consumption as an essential topic. Within the realm of academic inquiry, researchers show considerable interest in the subject of green consumption.
Research directions are very diverse with many topics such as motivation, the gap between attitude-actual behavior, the impact of branding and advertising, challenges and risks when using green products and services, etc. Therefore, this is also an orientation for this thesis to develop based on inheriting research theories of research gaps. However, while originating and having been popular in the West for many years, research on consumer behavior towards green products is still limited, especially in developing countries (Tan et al. Therefore, there is a need for comprehensive research on the aspects of green consumption using different framework approaches, such as economics, psychology, sociology, and culture.
Based on the positive effects of advocating environmentally conscious consumption, this becomes the foundation for the need of investigating factors that influence green purchase intention. However, developing greener consumption patterns requires cooperation from consumers, communities, and civil society. The purpose of this essay is to investigate how different factors affect the intention to consume sustainably. In order to design strategies, initiatives, and plans to promote a green lifestyle for the entire community, green product marketers, public officials, and other stakeholders will benefit from these understanding of the elements that impact consumers' intentions to make green purchases.
It is also particularly advantageous in emphasizing the importance of educating consumers to enhance their environmental awareness, deepen their comprehension of sustainable practices, and foster stronger convictions in green matters. Overview of the research situation of the topic: 2.1 Theories used in research: Commonly used theories in green consumerism and newly formed theories include the Theory of Reasoned Action (TRA) by Fishbein, M. These intricate models aim to depict a comprehensive overview of the factors influencing and limiting consumer choices. Additionally, they propose significant areas that warrant thorough investigation for promoting changes in environmental behavior.
The two most used theories in research articles on green consumption are TPB (Theory of Planned Behavior) and TRA (Theory of Reasoned Action). Firstly, one of the theories widely used in many empirical studies to explain customer behavioral intentions is TPB (Theory of Planned Behavior) proposed by Ajzen (1991). This theory aids in elucidating the reasons behind individuals' engagement or non-engagement in a specific behavior, relying on their intentions and the determinants influencing those intentions. Within this framework, three key constructs are identified: attitudes, subjective norms, and perceived behavioral control, all influencing an individual's intention.
However, this theory has a main limitation in assuming that intentions strongly predict behavior, but intentions do not always accurately predict behavior because there are many external factors that impact this process. Another model that is also widely applied in research on green consumer behavior is the Theory of Reasoned Action (TRA), developed by Fishbein and Ajzen (1975). TRA focuses on explaining human behavior based on attitude and subjective norms. These two factors together form intention - the most important predictor of human behavior.
However, similar to the TPB theory above, this theory still has some limitations, because there are cases where intentions are inaccurate or insufficient to predict actual behavior. In addition, TRA theory focuses mainly on awareness of positive consequences of behavior, ignoring the 4 influence of awareness of negative or undesirable consequences. At the same time, this theory also ignores the important factor of Perceived Behavioral Control, because in reality, the ability to control intention can greatly affect the ability to perform behavior. In general, these theories have tried to generalize the factors that influence customers' consumption intentions and behavior, but in practice the gap between intentions and behavior is still a difficult and difficult problem that requires in-depth research with many other influencing factors.2 Researches on factors influence on green purchasing intention: The concept of green consumption has garnered significant interest from researchers both domestically and internationally.
On this topic of green consumption, after analying through 25 research articles in Vietnam on this issue, and 30 research articles conducted abroad on the same topic, the author has suggested a synthesis that combines the evolution and various research directions concerning behavior in sustainable or green consumption.1 Domestic research: In Vietnam, one of the main research trends is studies rooted in marketing as these studies are conducted to study the motivations leading to customers' purchasing intention and behavior as well as the gap between intention-actual purchasing behavior: For gen Z subjects, Trong Luan Nguyen, Huynh, Ho, Le, Doan, (2021) discovered 4 factors that can affect green consumption intention: green knowledge, perceived environmental responsibility, green product value, and green attitude.