VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: ANALYZING THE DETERMINANTS OF GEN Z'S PURCHASING INTENTION FOR GREEN CONSUMER PRODUCTS Student’s name: TIEU THI NGUYET HA Hanoi - June 2024 1 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT PROJECT NAME: ANALYZING THE DETERMINANTS OF GEN Z'S PURCHASING INTENTION FOR GREEN CONSUMER PRODUCTS: A CASE STUDY AT THE INTERNATIONAL SCHOOL - VIETNAM NATIONAL UNIVERSITY. Le Thi Mai STUDENT: Tieu Thi Nguyet Ha STUDENT ID: 20070157 COHORT: QH–2020-Q Hanoi - June 2024 2 LETTER OF DECLARATION I affirm that the Graduation Project titled "Analyzing the determinants of Gen Z's purchasing intention for green consumer products: A case study at the International School - Vietnam National University" is the outcome of my independent research and has not been previously published in any other work. Throughout the implementation of this project, I have diligently adhered to research ethics. All the findings presented in this project are the direct outcomes of my own research and surveys.
In accordance with the relevant legislation, I have fully acknowledged all sources cited in this project. I assume complete accountability for the accuracy and reliability of the figures, data, and other elements included in my graduation project. Hanoi, 17 th June, 2024 Student Tieu Thi Nguyet Ha 3 ACKNOWLEDGEMENT Throughout the process of researching and completing my graduate thesis on "Analyzing the determinants of Gen Z's purchasing intention for green consumer products," I have received significant assistance and valuable guidance from the Training Department of the International School at Vietnam National University, as well as from my professional instructor and other supportive individuals involved. First and foremost, I would like to express my appreciation for the excellent assistance provided by the Academic Department - Vietnam National University.
They have provided a well-defined schedule and procedure for this subject. Furthermore, I would like to extend my immense gratitude to my esteemed mentor, Dr. Le Thi Mai, who possesses extensive expertise and demonstrates a flexible and dedicated work ethic. Despite her demanding teaching responsibilities and the responsibility of being a mother, she generously gave her time.
I deeply value her enthusiastic mentorship and the exceptionally advantageous circumstances provided to me since the inception of my collaboration with her on my graduate thesis. Furthermore, I am very grateful to all the participants who dedicated their time to completing the survey. Their valuable input allows me to collect data and analyze it, enabling me to obtain the most precise and logical study findings on this subject. Lastly, I express my gratitude to my family and exceptional friends for consistently inspiring and backing me during both favorable and challenging periods.
I am profoundly grateful to have such a group of loving individuals accompanying me on this academic journey. While numerous efforts have been made to apply the topic, it is important to acknowledge that there may be limitations and drawbacks. Therefore, I eagerly anticipate obtaining feedback and guidance from other teachers and judges to further my future study. 4 TABLE OF CONTENT LETTER OF DECLARATION .4 TABLE OF NOTATIONS AND ABBREVIATIONS .7 LIST OF CHARTS AND FIGURE.
Background of Study. Objectives of the study. Contribution of the study .17 CHAPTER II LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT. Extending the Theory of planned behavior (TPB).
Attitude towards green product (AT). Awareness of Consequences .22 CHAPTER III METHEDOLOGY. The Operational Definition and Measurement Design. Scale of study.
Data Gathering Procedure. Population, Sample size and Sampling Techniques. Data Collection Technique. Data Analysis Technique.
Descriptive Statistics Analysis. Reliability and Content Validity Analysis. Comparing Mean Test. Structural Equation Model .33 CHAPTER IV RESULTS AND DISCUSSION.
Descriptive Analysis and Mean Comparison. Structural equation model .45 CHAPTER V CONCLUSIONS AND RECOMMENDATIONS. Limitations and future research .52 6 TABLE OF NOTATIONS AND ABBREVIATIONS Abbreviation Meaning GCT Green Customer Product PI Purchase Intention EA Environmental Attitude EC Environmental Concern ER Environmental Responsibility SM Social Media TPB Theory of Planned Behavior TRA Theory of Reasoned Action 7 LIST OF CHARTS AND FIGURE Figure 1: The proposed research model .26 Figure 2: The result of research model .42 8 ABSTRACT The exponential growth of the economy presents firms with both advantageous prospects and formidable obstacles. To achieve sustainable development, companies must meet customer needs while minimizing environmental impact.
Promoting green consumption is crucial globally, including in Vietnam, where 80% of consumers are willing to pay more for eco-friendly practices like reducing plastic use and supporting green brands. The study aims to examine the determinants influencing the inclination of young Gen Z consumers to engage in environmentally friendly purchasing. Specifically, it focuses on the case of students from the International School - Vietnam National University and their attitudes towards creative design and sustainable consumption in the Vietnamese market. This study examines the impact of four elements, namely Environmental Responsible, Subject Norms, Awareness of Consequences, and Social Media, on the green buying behaviour of the younger generation.
Specifically, social media (SM) is more supplementary than earlier research, making it appropriate and significantly impacting the desire to make a purchase. An analysis was conducted using a sample size of 252 students. The data was analysed using the Statistic Package for Social Science (SPSS) software version 29 and Partial Least Square (Smart PLS) version 4. The results show that there is a big difference between male and female green purchase intentions.
In particular, male tend to want to buy environmentally friendly products more than female. The remaining criteria such as income, year, location have no notable differences. Through examination of primary data, several factors were identified as contributing to purchase intention. Research results show that media has the most significant impact on young people's purchasing intentions for environmentally friendly products today.
Next is the influence of attitude towards the green products as an intermediary factor promoting research and intention to purchase green products. Other conditions: responsibility for the environment, awareness of the consequences of toxic products on the environment, and compliance with subject 9 norms by consumers are conditions that are considered quite important and have important factors. weaker impact on green purchase intention. This study offers valuable contributions to address the shortcomings of prior research and offers practical ideas for promoting sustainable consumption.
Background of Study Worldwide, it appears there is an increased awareness of the dangers of environmental degradation by consumers and organizations at large. Individuals and entities are putting environmental issues at the forefront when deciding on which products to purchase (McDonald and Oates, 2006). This is largely due to an increase in environmental degradation as a result of pollution, resource wastage and ozone layer depletion, amongst other causes. There is now global consensus that unsustainable consumption patterns result in ecological imbalance and ultimately translate into environmental degradation (Hume, 2010).
Gradually, consumers are realizing the need to take a lead in environmental preservation, which may be achieved by abandoning non-green conventional products for green products. Consequently, the adoption of sustainable consumer items has emerged as a recent phenomenon (Darnall, Ponting et al. Engaging in sustainable consumption behaviors, which involve purchasing and using things in an environmentally responsible manner, is a crucial element of sustainable development (Nekmahmud, Ramkissoon et al. Sustainable consumption is a component of the Sustainable Development Goals (SDGs) that focuses on reducing negative environmental and health effects and encouraging environmentally friendly ways of living (Ramkissoon, Smith et al.
This study primarily focuses on comprehending the concept of "green consumption," which is a component of sustainable consumption. Green consumption refers to the inclination to purchase environmentally friendly products or services that have minimal adverse effects on the environment in terms of their contents and production methods (Young, Hwang et al. Numerous prior research have provided definitions for the concept of a green product. Green products are those that incorporate recycled materials, minimize waste, conserve energy or water, utilize little packaging, and minimize the amount of harmful substances disposed of or consumed (Hema and RENUKADEVI, 2021).
Green products are those that aim to protect the natural environment by utilizing energy-efficient resources and 11 minimizing the usage of harmful substances, pollution, and waste (Ottman, 1992). The Organization for Economic Cooperation and Development (OECD) has provided a definition for green products, which refers to products that are designed to prevent or minimize environmental harm, such as damage to ecosystems, waste, noise, water, air, and soil (Monkelbaan, 2011). Paul, Modi et al. (2016) found that customers in rich countries exhibit greater environmental concern compared to consumers in developing countries.
In addition, developing countries such as China (Zhao, 2014; India Kumar, 2012, Biswas, 2015; Indonesia Chairy, 2012; and Malaysia Tan, 2011, Onwezen, 2014) have also shown interest in ecological products. In Vietnam, research on environmental issues and green purchasing behaviour is in its early stages, with a particular focus on young customers in comparison to other developing nations. According to the findings of a study conducted by Nielsen Vietnam Company and published in 2017 at a seminar titled "Brand strategy associated with green development" organised by the Department of Trade Promotion - Ministry of Industry and Trade in collaboration with the Institute for Trade Strategy brand and organisational competition, 80% of consumers are willing to pay a higher price for environmentally friendly and clean products. Furthermore, brands that demonstrate a commitment to "green" and "clean" practices experience a significant growth rate of approximately 4%.
For example, in the food and beverage industry, the growth rate ranges from 2.4%, which is significantly higher than the overall market growth rate (Luu, 2017). In addition, to facilitate the advancement of transitioning towards a more environmentally sustainable economy, the Prime Minister has issued Decision No. 1393 / QD-TTg, titled "Approval of the Green Growth Strategy for the period of 2011-2020 and vision to 2050". This decision encompasses two key objectives pertaining to green consumption: greening of production and greening of consumption.
As per the Ministry of Natural Resources and Environment, green consumerism in Vietnam has the potential to be a profitable commercial sector. Additionally, it can also address social and environmental problems through economic activity. The extent to which consumers shift from awareness to green consumption is contingent upon various objective and subjective elements (Chinh, 2020). Corporate 12 decision-makers are increasingly prioritising sustainable consumption in response to stringent environmental legislation and mounting pressure from stakeholders that prioritise environmental protection (Banerjee, 2003, Maignan, 2004, Paul, 2016).
As stated by Mr. Vu Xuan Truong from the Research Institute of Brand and Competitive Strategy, the primary challenge faced by businesses, particularly small and medium firms, is the tension between two objectives: maximising profit and promoting environmentally sustainable growth (Hung, 2017). The idea of incorporating environmentally-friendly practices into branding, known as "greening," is gaining popularity as companies strive to remain competitive in the market. Enterprises must establish client trust in their brands by making firm promises to social and environmental responsibility.
Furthermore, due to the majority of businesses being small and medium-sized organisations, there is a scarcity of funds for investing in the development of environmentally friendly products. Furthermore, there are technological challenges. While there are numerous green technologies available worldwide, their real implementation in Vietnam is still limited. Enterprises can be moved using advanced environmentally- friendly technology; nevertheless, there are instances where the human element and capability have not progressed at the same pace.
Therefore, there is an urgent need to examine the factors that impact the intention of green consumption in order to gain a thorough grasp of customer insights. This will give a scientific foundation for developing suitable business strategies and informing policy-making for enterprises. Subsequently, it provides guidance to managers regarding policies that promote eco-friendly consumption in order to attain the objective of sustainable development. Green marketers need to develop precise marketing communication methods to effectively target diverse consumer groups.
One particular group of interest in the present study is the younger demographic (Heo and Muralidharan, 2019).