UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business --------------------------- Truong Duong Tam AMBIVALENT ATTITUDE TOWARDS GREEN PRODUCTS: EVIDENCE FROM VIETNAM MASTER OF BUSINESS (Honours) Ho Chi Minh City – 2015 123doc UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business --------------------------- Truong Duong Tam AMBIVALENT ATTITUDE TOWARDS GREEN PRODUCTS: EVIDENCE FROM VIETNAM ID: 22130065 MASTER OF BUSINESS (Honours) SUPERVISOR: DR. LE NHAT HANH Ho Chi Minh City - 2015 123doc -i- ACKNOWLEDGEMENT Firstly, I would like to express my gratefulness to my supervisor Dr. Le Nhat Hanh for her intensive support, valuable suggestions, instructions and encouragement during my research time period. Besides my supervisor, I would like to express my deepest gratitude to Professor Nguyen Dinh Tho, Professor Nguyen Dong Phong, Dr.
Tran Ha Minh Quan, Dr. Nguyen Thi Mai Trang, Dr. Nguyen Thi Nguyet Que, Dr. Nguyen Phong Nguyen and other lecturers for their valuable time as the members of the ISB research committee.
Their comments and meaningful suggestions have significantly contributed to this research. I would like to sincerely thank all of my teachers at International School of Business – University of Economics Ho Chi Minh City for their teaching and guidance during my Master’s course. Additionally, I would like to give my special thanks to my family for their supports either in financially or mentally. They are the ones who supported me throughout the way I managed to complete my thesis.
Ho Chi Minh City, December, 2015 Truong Duong Tam 123doc - ii - ABSTRACT The comprehensive review of literature reveals that there is a shortage of research regarding to the ambivalent attitude toward green products. This research aims to explore the predictors as well as predictive effect of ambivalent attitude toward green products in Vietnam. Accordingly, new negative perceptions are added in model to distinguish this study from previous researches. The conceptual framework and hypotheses development are grounded on related literature.
A qualitative study was conducted by in-depth interviews of eight consumers in order to modify the Vietnamese versions of the questionnaire and main survey. This study was then undertaken with 310 respondents to test the measurement and the structural model. The results demonstrated the reliability and the validity of the final measurement model, which were consistent with market information and the hypotheses which were accepted. A framework model illustrated greenwashing, perceived consumer skepticism, green consumer confusion and green perceived risk have positive influence on ambivalent attitude toward green products.
Specifically, it was also revealed that the important role of green consumer confusion in relation to ambivalent attitude toward green products, compared to that of the rest of antecedents in the context of Vietnam. Through the mediator role of ambivalence, this paper also examined the resistance to change as its consequence. The results contributed to the extent of knowledge of ambivalent attitude as well as its antecedents and consequences in the field of green marketing, especially in Vietnamese market. In addition, it provided practical implications for marketing managers in order to understand clearer attitude of consumers, from that they can build appropriate strategies to approach target consumers.
Keywords: ambivalent attitude toward green products, greenwashing, perceived consumer skepticism, green consumer confusion, green perceived risk and the resistance to change. 123doc - iii - TABLE OF CONTENTS ACKNOWLEGEMENT. ii TABLE OF CONTENT. iii LIST OF FIGURES.
vi LIST OF TABLES. vii CHAPTER 1 – INTRODUCTION .2 Statement of the problem .4 Research methodology and research scope. 7 CHAPTER 2 – LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT .2 Ambivalent attitude toward green products .1 Greenwashing & ambivalent attitude toward green products .2 Perceived consumer skepticism & ambivalent attitude toward green products .3 Green consumer confusion & ambivalent attitude toward green products .4 Green perceived risk & ambivalent attitude toward green products .5 Ambivalent attitude toward green products & resistance to change .5 The proposal model and hypotheses of the research. 21 CHAPTER 3 – RESEARCH METHODOLOGY.2 Data collection and procedure .3 Data analysis method.
32 CHAPTER 4 – DATA ANALYSIS .3 Reliability and Validity test.4 Confirmed factor analysis (CFA) .5 Structural equation modeling (SEM) .7 Discussion of research findings. 47 CHAPTER 5 - CONCLUSION, IMPLICATION AND LIMITATION .3 Limitation and further research. 56 APPENDICES Appendix A: Questionnaire in English version. 1 Appendix B: Questionnaire in Vietnamese version.
4 Appendix C: List of in-depth interview participants. 7 Appendix D: In-depth Interview’ refinement measurement scale. 7 Appendix E: Observation distribution test. 9 Appendix F: Standardized Regression Weights.
10 Appendix G: Bootstrap Distribution. 11 123doc -v- LIST OF FIGURES Figure 2.1 Final measurement model. 43 123doc - vi - LIST OF TABLES Table 2.1 Operational definitions of variables used .1 Sources of measurement scale .2 Calculating sample with quota sampling method .3 Source of data collection .2 Convergent and discriminant validity of the model constructs .4 Correlation among constructs .5 Unstandardized structural paths. 44 123doc 1 CHAPTER 1 – INTRODUCTION 1.1 Research background “Seven billion dreams.
Consume with care” is the slogan claimed by The United Nations Environment Program (UNEP) for the World Environment Day (WED) 2015 in the context of the increasing climate change currently faced by humans. According to Galizzi (2006), 34 years after the first World Environment Day which was established by the UN General Assembly at Stockholm in 1972, the global community has made efforts to bring environmental issues into the agenda at international and national levels. Yet the global environment in general has not remarkably improved. It must be pointed out that due to the weak effort in environmental protection of humans, the abnormal climate phenomenon occurs at increasingly frequent and severe pace in recent years (Kuo and Chang, 2015).
The main cause of abnormal phenomena which has been widely reported by scientists and organizations is carbon emission. Reducing carbon emission as well as negative effects for the environment is a shared responsibility not only of nations but also of organizations and each individual. At macro level, many nations have put in place legislation with specific policy and goal to raise the public concern about the environment and promote low-carbon economy. For instance, in South Australia, the government claimed that their target was a 60 per cent reduction on 1990 levels by 2050 (Weatherill, 2015) or 40 per cent below 1990 levels by 2030 in North America (Brown, 2015) while in Vietnam, this number is at least 2 to 3 per cent per year by 2030 (Nguyen, 2013).
As a result, public concern about the environment is increasing and going global day by day in the United States, Europe and East Asia throughout the 21st century (Eurobarometer 2008; Saad 2007; Xinhua News Agency 2008 as cited in Chang, 2012). Specifically, the more the nation is covered by coastal borders, the greater the percentage of consumers will concern about environmental issues. These nations include Thailand (93%), Indonesia (92%), Vietnam and Philippines (91%) (Nielsen Sustainability Report, 2012). Green products which is termed as environmentally friendly products or eco-products are the products minimizing the pollution or damage to our environment; and in addition, they can be recycled or conserved (Shamdasani et al., 1993); whereby people who buy these products are called green consumers (Carrigan et al.
Most people believe that 123doc 2 environmental problems such as global warming, pollution of rivers and sea, acid rain, desertification, loss of biodiversity, and land degradation impact on their daily lives (Ellen, 1991; Junaedi, 2007). As a result, using eco-friendly products that minimize the negative effect on the environment have emerged as the best ways to behave toward the environment. Although most consumers manifest their concern about environmental problems, yet they do not necessarily turn these concerns into green buying behavior (Pickett-Baker and Ozaki, 2008). While some previous researches indicate the positive relationship between environmental concern and behavior (Fraj-Andres and Martinez-Salinas 2007; Mostafa 2007), numerous recent studies have supported that there is a weak concern – behavior link of consumer toward green products (Gupta and Ogden 2009; Tanner and Kast 2003), leading to slow green consumption.
That is, the rate of environmental concerns of consumer is not proportional to their attitude toward green products, leading to a chasm which persists between environmental concerns and purchasing green products (Chang, 2012). When it comes to Vietnam, the country which according to the United Nations, is one of the top ten nations most affected by climate change and rising sea level in the world (Vietnam Breaking News, 2014; Development Committee, 2008), the government is spending more efforts in protecting the environment with main concerns about resource efficiency and sustainable consumption and production. In order to pave the way for fostering green consumption correlated with sustainable development, more than 300 legal documents belonging to the environmental activities have been issued as well as establishing Vietnam Green Purchasing Network (VNGPN) in 2009 to guide communities, organizations on the right track in behaving toward the environment and raising the public concern (Hoang and Nguyen, 2012). In addition to the numerous green consumption campaigns held annually, investigations have been under way into purging the so-called black enterprises, which are enterprises polluting the environment.
In 2012, an extensive investigation about 200 enterprises was conducted to detect 67 firms violating the environmental laws while eight of them were shut down (Vietnam News, 2013). This manifests the considerable effort of the government in the field of the environmental protection. Green enterprises, consequently, have become a target construction of organizations, attracting many foreign direct investment (FDI) businesses (Talk Vietnam, 2014). According Hoang and Nguyen (2012), consumers in countries facing high 123doc 3 environmental problems may respond by have a purchasing behavior different from that of consumers in nations with less environmental issues.
It is expected that Vietnamese consumers facing high environment-related problems in combination with high environmental concerns may positively respond to eco-products or green products. Nevertheless, there are a large percentage of Vietnamese consumers who view price as the priority when making decision about buying different products: green or non-green (Nielsen Sustainability Report, 2011). It supports that the awareness of Vietnamese consumers and their attitude toward eco-products seem to be limited when compared with other nations in the region (Hoang and Nguyen, 2012), leading to low green consumption percentage. It is argued that the inconsistency between environmental concerns and purchasing eco-products of consumers is virtually caused by the presence of ambivalent attitude toward green products.
Furthermore, it is suggested that understanding the determinants and consequences of ambivalent attitude toward environmentally friendly products in depth is not only stimulating green consumption but also motivating producing enterprises go green.2 Statement of the problem Individuals may adopt positive and negative evaluation toward an issue or object in their attitude at the same time and these emotions are called ambivalence. According to Cacioppo, Gardner, and Berntson (1997), ambivalent attitudes toward an object come out when people hold simultaneously both positive and negative evaluations. On the one hand, it is shown that the stronger the attitude is the more likely it is to guide ones’ behavior and if ambivalence is viewed as an index of attitude strength, it has an influence on the relationship between attitude and intention (Krosnick and Petty, 1995). A more convincing argument is confirmed in the research of Sparks, Hedderley, and Shepherd (1992) about the association between attitude and intention which is a key antecedent of consumers’ behavior in the context of food consumption.
On the other hand, Erber, Hodges, and Wilson (1995) shows that ambivalent attitude may be unpredictable and not stable over time. Ambivalent attitude toward an object at one time might not be identical at a later time so that it is difficult in predicting intention and behavior of people in the further. Regarding to green consumption, it is explained that consumers might consist of ambivalent attitude toward green products caused by emerging positive and negative 123doc 4 evaluations of such products. That is, ambivalent attitude may make consumers fail to engage in environmental activities, namely purchasing green products.