UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------- HUYNH PHAN MY NHUNG FACTORS AFFECTING CUSTOMER’S GREEN CONSUMPTION INTENTION: A STUDY OF GREEN HOME APPLIANCES PRODUCTS IN VIET NAM. MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2015 TIEU LUAN MOI download : skknchat@gmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business ------------------------------- HUYNH PHAN MY NHUNG FACTORS AFFECTING CUSTOMER’S GREEN CONSUMPTION INTENTION: A STUDY OF GREEN HOME APPLIANCES PRODUCTS IN VIET NAM. ID: 22120135 MASTER OF BUSINESS (Honours) SUPERVISOR: DR. PHAM NGOC THUY Ho Chi Minh City – Year 2015 TIEU LUAN MOI download : skknchat@gmail.com i ABSTRACT Research suggests four structures: the impact of attitudes toward green brand, green satisfaction, green brand perceived value, green trust to green consumption intention and this study learn the relationship between these variables.
In addition, this study also has recommended to learn the effects of demographic variable to the relationship between the attitude toward green brand variable, green satisfaction variable, green brand perceived value variable, green trust variable and green consumption intention variable. Green home appliances products with foreign brand which are distributed in Vietnam are the focus for this study, the green appliances products have green energy label to energy saving and environmental friendly. A survey involving 300 respondents are conducted for this study, the method is used by face-to-face interview. Keywords: green consumption intention, green satisfaction, green brand perceived value, attitude toward green brand, green trust, green marketing.
TIEU LUAN MOI download : skknchat@gmail.com ii TABLE OF CONTENTS CHAPTER 1: INTRODUCTION. Significance of research. Structure of the study. 6 CHAPTER 2: LITERATURE REVIEW .1 Some previous studies related to this research.
Definitions of the concepts .1 Attitude toward green brand. Green brand Perceive Value. Green consumption intention. Hypothesis developing and proposed research model.
21 CHAPTER 3: RESEARCH METHODOLOGY. 27 TIEU LUAN MOI download : skknchat@gmail. Measurements scales of the constructs .Measurement scales testing. Test of scales measurement reliability.
Exploration factor analysis (EFA). 31 CHAPTER 4: DATA ANALYSIS AND RESULTS. Assessment of measurement scales. Factor analysis (EFA) round time 2.
Hypotheses testing using multiple regressions. Checking assumption of Multiple Regression. Test the effect of moderating variables. Test the moderating of gender: .Test the moderating of Age.
Test the moderating of Family status. Test the moderating of Education. Test the moderating of Income. Normality, linearity, homoscedasticity and outliers.
52 TIEU LUAN MOI download : skknchat@gmail.com iv CHAPTER 5: RECOMMENDATION AND CONCLUSION. Research limitations and directions for future research. 64 Appendix 1: Questionaires in English version. 64 Appendix 2 : Questionaires in Vietnamese version.
67 Appendix 3: Statistical Results. Cronbach's aplpha for each constructs. The first time running factor analysis – eigenvalues (for independent variables). The second time running factor analysis – eigenvalues (for independent variables).
Regression of gender. Regression of Age. Regression of family status. Mean of Education.
Mean of Income. Test of assumptions. 83 TIEU LUAN MOI download : skknchat@gmail.com v TABLE OF FIGURES Figure 1: Image for green energy label (Tapdoandienlucvietnam, 2015) .5 Figure 2: Kang and Hur (2011)’s research model.10 Figure 3: Proposed research model .20 Figure 4: Research process.22 Figure 5: Revised research model .83 Figure 7: Normal P-P Plot .84 TIEU LUAN MOI download : skknchat@gmail.com vi LIST OF TABLES Table 1: Scales .23 Table 2: Sample Description characteristics .33 Table 3: Cronbach’s alpha test of items (N=267) .34 Table 4: Pattern Matrix in Factor analysis (EFA) round time 2 .38 Table 6: R Square value (R2 ) .40 Table 9: Results of hypothesis test .42 Table 10: Comparison of coefficients related gender: Female .43 Table 11: Comparison of coefficients related gender: Male .43 Table 12: Comparison of coefficients related Age: <=35 .44 Table 13: Comparison of coefficients related Age: >35 .45 Table 14: Comparison of coefficients related family status: Single .45 Table 15: Comparison of coefficients related family status: Married .46 Table 16: Mean related Education of 267 samples.47 Table 17: Mean related education: under Bachelor groups with 125 samples .48 Table 18: Mean related education: Bachelor and Master groups with 142 samples .48 Table 19: Mean related Income of 267 samples .49 Table 20: Mean related low income groups: ≤ 12 million with 79 samples .49 Table 21: Mean related high income groups: >12 million with 188 samples .49 TIEU LUAN MOI download : skknchat@gmail.com 1 CHAPTER 1: INTRODUCTION 1. Research background In recent years, consumers are aware of the environmental problems in the world because of the impact of environmental disasters and environmental protection is being enhanced consumer (Mclntosh, 1991).
So, environmental concerns quickly developed as a key issue for consumers and more companies are seeking to catch the opportunity, sales of green products have increased significantly and consumers are willing to pay a higher price for green products (Chen, 2008b). Therefore, green marketing has become increasingly important for some types of products so that manufactured and using green technology from green materials, such as green home appliances products (Chen et al. The companies understand that if they offer products and services that meet customer requirements on environment, these customers supported their products. Besides, in the current, Vietnam's government has also encouraged people consuming of green products.
Promoting green labeling and information dissemination of environmentally friendly products to all of society, apply green program for buying some green product groups and to encourage businesses save resources and limited waste of energy and resources (Hiep hoi son, 2015). So the responsibility of the business such as Electronics supermarkets that distribute and sell green products to customers as requested by the government. Therefore, this study helped businesses learn to the attention of customers that have willing to buy green products or don’t have willing to buy green products. Moreover, this study based on green marketing’s element to learn the green comsumption intention of customers.
There are four factors about customer behavior leading to use the green products, that is attitude toward green brand (Huang, Yang & Wang, 2013), green brand perceived value (Butt, Ng, Khong & Ong, 2013), green satisfaction and green trust (Kang & Hur, 2011). So, it is proposed for using these factors to learn for their effects to Green consumption intention in user's green home appliances products in Viet Nam. TIEU LUAN MOI download : skknchat@gmail.com 2 In summary, research on environmental concerns context by exploring the dynamics, it has provided an assessment with the new concept of green marketing. Besides, an understanding of the relationship between Attitude toward green brand, Green satisfaction, Green brand perceived value, Green trust and Green consumption intention has expected meaningful and practical reasoning in green product management.
Research problems According to (Bienphongvietnam, 2013) has shown that the level of environmental pollution is increasing, directly threaten to economic, social development in Viet Nam. There are three environmental pollution: soil pollution, water pollution and air pollution. In three types of pollution that the air pollution in large cities is the most serious. For example: The use of multiple air conditioners in cities today shows that the risk of noxious gases emitted from these products is increasing, it has caused environmental pollution, in particular air pollution, a profound impact on the lives and health of people.
Therefore, to handle effectively for the enviromental problems, requiring consumers to use home appliances devices to saving and efficiency such as turn off air conditioner and equipment when not needed. However, the best way so the author warned that the consumers need to buy green home appliances products that are environmentally friendly and save energy to meet the demands of them (Chen et al. Properties of green products: green products are the product must pass strict criteria: compliance with legal regulations on environmental protection, satisfactory quality, energy saving, limited use of toxic components in the manufacturing process and reduce pollution. Besides, it responsible for ensuring the health of consumers, guide and encourage consumers to use the product in a manner friendly to the environment (Hawari & Hassan, 2008).
The models of green product is variety, has a good warranty, reputation, energy saving and save money on long-term use. The problem that if the price of green products is often higher than other products but they have save energy and protect the enviroment. The consumers have ready to buy these green products or don’t have ready to buy these green TIEU LUAN MOI download : skknchat@gmail. There are some person argued that although they had average incomes, but they are also tried to buy the green home appliances which has a high energy saving and safety environment.
So, the first time they have to spend large sums of money to buy and use these products, but in the long run save power consumption, synonymous with saving money and these products are environmentally friendly, non-toxic, health are protected. Other products may be the price is cheaper but it is not save energy efficient, resulting in the use of waste and environmental pollution. For example, when buying a aircondition with Daikin brand has environmental safety, energy saving and electricity saving, it may be more expensive than the normal air conditioner but in the long time the electricity bills must pay monthly significantly reduced because they are the products saving electricity and energy saving. Besides, the Daikin air conditioning products or Panasonic has clean natural gas, very good for the older and children (Baocongthuong, 2013).
So, it is also belong to what kind of products use. To promote for using of energy-saving and environmental protection, in the current, the government and business encouraged and gradually set up for the consumers acquainted with use green products. Especially for green home appliances products. Research objectives Because of the problem presented above, this study aims to investigate the factors affecting customer’s green consumption intention: a study of green home appliances products in Viet Nam.
In specific, this study aims to: Identify factors effecting customer's green consumption intention toward green home appliances products. Besides, this study determines the different effects of these factors to green consumption intention related customer groups of gender, age, income, education, family status. TIEU LUAN MOI download : skknchat@gmail. Research scope Green home appliances products (Television with Sony brand, air conditioners with Daikin brand, refrigerators with Sam Sung brand, rice cooker with Happy Cook brand and so on) in Ho Chi Minh market, Viet Nam were focused in this study because of environmental safety, energy saving and electricity saving.
These products are labeled green, showing the standard from 1 to 5 stars, depending on the quality standards of products. Through advertising program, promotion discounts price, discounts on purchases has introduced these green products to consumers. We interview the customers have intend to buy the home appliances products in Electronics supermarkets or the customers live in the new apartment who have intend to buy the home appliance products for their new house. Moreover, this study based on these customer groups to focus in asking more that they have intend or they don’t have intend to buy green home appliances products.
This study focuses on the Ho Chi Minh market because Ho Chi Minh City is the biggest and most developing city in Vietnam. The Ho Chi Minh helps enterprises can introduce many good green products and customers can buy many satefy enviroment products, saving money. Moreover, due to time limitations, choosing Ho Chi Minh market for this research helped the this study shorten the distance, provided more accurate survey information and offered more effective interview data as well. Research method This study employs both qualitative and quantitative methods.
This research process involves pilot study and official research. This pilot study is based on the qualitative method. The purpose of pilot study to make questionnaires more perfect before the official research. Official research was carried out using quantitative methods.