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MIP
33,3
330
Prashant Kumar
Received 31 March 2014
Revised 28 June 2014
Accepted 10 September 2014
Bhimrao M. Ghodeswar
Department of Marketing, National Institute of Industrial Engineering,
Mumbai, India
Abstract
Purpose The literature on green consumer behaviour recently focuses upon the Asian markets.
Though environmental consciousness in Indian consumers is observed in the literature, their purchase
behaviour towards green products is not yet clearly understood. So, the purpose of this paper is to
study the factors affecting consumers green product purchase decisions in India.
Design/methodology/approach The research employs a survey-based method to test a
theoretically grounded set of hypotheses. Using a 38-item questionnaire and snowball sampling
method, the data were collected from 403 working Indian respondents in Mumbai. The data were
analysed using exploratory and confirmatory factor analyses. Structural equation modelling was used
to test the proposed hypotheses.
Findings The results witnessed that the respondents possess willingness to support environmental
protection, realization of environmental responsibilities, and inclination towards searching green
product-related information and learning about green products. Supporting environmental protection,
drive for environmental responsibility, green product experience, environmental friendliness of
companies and social appeal are identified as important factors affecting green product purchase
decisions.
Research limitations/implications Results of the research are useful for marketing professionals
for green products to develop effective green marketing strategies emphasizing personal relevance,
social importance and environmental significance of purchasing, using and disposing green products
that produce increased levels of satisfaction for customers and influence their decisions to buy green
products.
Originality/value This research provides valuable insights into green consumer behaviour in
Indian context by examining the factors that influence their purchase decisions towards green
products.
Keywords India, Consumer behaviour, Green issues, Green marketing, Market research
Paper type Research paper
1. Introduction
Awareness of the destruction of natural resources resulting from human activities has
raised the issue of environmental protection and environmental consciousness in
consumer behaviour. This, in turn, has increased the demand for green products in the
market worldwide. A green product is defined as a product that was manufactured
using toxic-free ingredients and environmentally-friendly procedures, and which is
certified as such by a recognized organization (Gurau and Ranchhod, 2005). Greening
of a product takes place over its complete life-cycle from product design and raw
material procurement to manufacturing, storage, transportation, usage and post-usage
activities. Many of the researchers like DSouza et al. (2006) have addressed
consumption aspects of green products across their life-cycles.
Since the knowledge of the consumer market and the variables motivating green
purchase behaviour are found to have important implications (Medeiros and Ribeiro,
2013), researchers have been attempting to understand the nature of green consumers
in different markets. Rooted in consumer behaviour theories and models, the literature
addresses environmental aspects of consumption patterns, elaborates upon demand of
eco-friendly products and motivates business organizations to behave environmentally
favourable to survive in the market (Hansen, 2009). Using and testing samples from
several cities, countries and cross-countries, studies on green consumer behaviour have
witnessed the increasing environmental consciousness in the consumers. The studies
have investigated how consumers make informed choices about green products,
and have attempted to develop an understanding of the determinants of their
behaviour and purchase habits. These behavioural studies have focused on
determinants of environmentally friendly purchase behaviour such as purchase
intentions, purchase decisions, actual purchase behaviour and willingness-to-pay.
Though most of the studies on green consumer behaviour are based in Europe and
American contexts, constant attempts are being made to expand these concepts
universally to understand the similarities and differences that may exist between
cultures in an environmentally conscious setting. The way green consumerism is found
gradually moving to Asian regions (Lee, 2008, 2009; Gurau and Ranchhod, 2005;
Yam-Tang and Chan, 1998), India is found to be a potential market of green products
(Singh, 2004, 2013). The studies in Indian context, so far, have focused on consumer
attitude towards green practices in lodging industry (Manaktola and Jauhari, 2007),
and determinants of consumer food choices and purchase behaviour for products
such as genetically modified food and organic food (Anand, 2011; Chakrabarti, 2010;
Knight and Paradkar, 2008). Findings of the studies reveal that Indian consumers
prioritize products and services from environmentally friendly companies (Nath et al.,
2012; Knight and Paradkar, 2008), and are becoming choosy in their purchase
behaviour in terms of preference for green products, product quality, their competitive
prices and their accountability in the retail stores (Singh et al., 2012; Manaktola and
Jauhari, 2007). Since improved environmental consciousness is observed in the Indian
market (Singh et al., 2012; Singh, 2009), there is a need to understand the factors
affecting environmentally friendly purchase decision making. So, the purpose of the
study is to explore dimensions of environmental consciousness in Indian consumers,
and to test their relationships with green product purchase decisions.
2. Green product purchase decisions
For the purpose of this study, green consumers are described as the ones who take into
consideration the environmental consequences of their consumption patterns,
and intend to modify their purchase and consumption behaviour for reducing the
environmental impact. Purchase decisions of green consumers are found to be the
central theme in the present state of research on green consumer behaviour. The
purchase decisions are described in forms of supporting green companies, purchasing
green products (Albayrak et al., 2013; Schlegelmilch et al., 1996), adopting sustainable
consumption practices (Gadenne et al., 2011) and likely to spend more for green
products (Essoussi and Linton, 2010). The purchase decisions of green consumers are
influenced by broadly two factors. One set of factors are intrinsic to the consumers
such as realization of their environmental responsibilities, quest for gaining knowledge,
self-interest and willingness to act for resource conservation and reduced impact on the
environment. And, the others are extrinsic to the consumers which are related to, for
Green product
purchase
decisions
331
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Supporting environmental
protection
Figure 1.
Conceptual
framework
Social appeal
Green product purchase
decisions
Environment friendliness
of companies
Green product experience
Green product
purchase
decisions
333
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334
importance of products when they interact with others and gather related information
(Oliver and Lee, 2010). Consumers, as a part of a community or a social group, receive
and share information, and know what others think for a particular product (Dholakia
et al., 2004) and evaluate the products based on the comments and opinions of others
(Escalas and Bettman, 2005). This way, they form, clearly define and elaborate on
their own preferences and tastes (Dholakia et al., 2004). Besides, consumers are
generally attracted towards a product that develops a sense of self for them (Kleine
et al., 1993) and the way they want to be perceived by others. Thus, social appeal is also
found influential in developing their product preferences (Lee, 2008). So, they intend to
buy products that follow the perceptions of the society (Sen et al., 2001) as well as
construct their social-identities (Ozaki and Sevastyanova, 2011).
In an environmentally friendly society, consumers widely perceive that it is
reputational and modern way of lifestyle to behave environmentally friendly (Grier and
Deshpande, 2001). And, if they do not behave so, they will be perceived as out-dated
in the society. It has symbolic meaning of morality, unselfishness, nature-orientation
and eco-aspirations. It leads to important functional consequences for consumers such
as pro-social reputation of being trustworthy, valuable companion and status (prestige)
(Griskevicius et al., 2010). So green products purchase decisions communicate
eco-friendliness of consumers (self-image) and exhibits their concerns for
environmental conservation so as to comply with social pressure (social image)
(Park and Ha, 2012; Oliver and Lee, 2010). Thus, they understand the benefits
of choosing green (Nyborg et al., 2006) which increases their desirability of
high-priced green products (van Dam and Fischer, 2013) and strongly influences their
buying decisions of green products (Griskevicius et al., 2010). Hence, following
hypothesis is proposed:
H5. Social appeal significantly affects green product purchase decisions of
consumers.
Thus, the hypotheses developed from the literature are further tested from a sample of
Indian consumers. Methodology for testing the hypotheses and their results are
explained in the subsequent sections.
3. Methodology
Most of the studies on green consumer behaviour have evaluated environmental
behaviour based on the self-reported claims in response to the questionnaire items (Steg
and Vlek, 2009). Though a large number of studies have found a difference between
behaviour intentions of environmentally conscious consumers and their actual
behaviour, Dijksterhuis et al. (2005) conceptualized the influence of perception
on behaviour and advocated strong linkage between perception and behaviour. Hence,
the approach of self-reported claims in response to the questionnaire items seems to be
effective for such studies. Also, the questionnaire method is preferred because it allows
collecting many responses in a short period of time (Ozaki and Sevastyanova, 2011),
hence is suitable for market research. Thus, in order to test and quantify the
relationships hypothesized, a questionnaire-based survey approach was adopted. The
38 items questionnaire was composed of two sections. In first part, it examined
the environmental dimensions of consumer behaviour and the items were adopted from
the literature based on New Environmental Paradigm (NEP) scale. Designed by Dunlap
and Van Liere (1978), NEP scale is a widely used scale for measuring environmental
dimensions of consumers. This scale was developed with the aim of investigating
whether a more general position about society and the environment existed among the
public. It measures a spectrum of attitude related to three main dimensions, i.e. human
as a part of nature, limited carrying capacity of ecosystem and technological ability to
solve environmental problems. This multidimensionality is the main issue with NEP
scale (Roberts and Bacon, 1997) which develops relationship between the scales and
other variables of environmentally conscious consumer behaviours. Thus, a clear
measure of a specific variable to measure environmentally conscious consumer
behaviour is difficult. Still NEP scales are constantly found reliable and valid through a
number of empirical studies across different samples. All measurements in the study
were subjective assessments by the respondents using a five-point Likert-type scale
(with end-points 1 strongly disagree and 5 strongly agree). The second part collected
data about the demographic characteristics of respondents. Demographic measures
such as age, gender, educational qualification, status of employment and sector of
employment were included.
The sample in the study was selected mainly by using a snowball sampling
technique which relied on chain referrals to recruit eligible participants. The candidates
were contacted by telephone or personally and they were asked if they were
willing to participate in the study. The study was conducted in Mumbai, India. The
respondents were selected irrespective of their education, profession, income,
origin and other demographic characteristics. Data collection took place from
November 2011 to August 2012. Consumers were approached in different parts of
the city.
The selection of respondents was carried out in two stages. First, seed informants
were identified in which personal, family and professional networks were
accessed. This stage can be seen as using convenient sampling. The second stage
used snowball sampling technique to recruit the rest of the respondents. Once the
data were collected from the seed informants, they were asked to provide the names
of individuals who may be willing to participate in the study. Through personal
and/or telephonic conversation, they were persuaded to participate in the study.
Those who agreed to participate, a suitable time and place was decided with an
appointment (where appropriate) for data collection. All measurements were
subjective assessments by the respondents using a five-point Likert-type scale
(Wrenn, 1997).
Out of 1,200 consumers contacted, a total of 403 valid responses were obtained.
The demographic characteristics are mentioned in Table I. The data were
analysed using exploratory factor analysis to identify and validate the items
contributing to each component. Model fit was also estimated using confirmatory
factor analysis. Further, hypotheses testing using structural equation modelling
were carried out to test the relationships of variables identified with the green product
purchase decisions of consumers. These tests were then interpreted based on the
support from the literature.
A total of 403 valid responses were collected. Out of these, 202 (50.1 per cent) were
male and 201 (49.9 per cent) were female. The demographic characteristics are
mentioned in Table II. The data were analysed using exploratory factor analysis to
identify and validate the items contributing to each component. Model fit was also
estimated using confirmatory factor analysis. Further, hypotheses testing were carried
out to understand the relationship of variables identified with the green product
purchase decisions of consumers. These tests were then interpreted based on the
support from the literature.
Green product
purchase
decisions
335
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Frequency (%)
Gender (n 403)
Male
Female
202 (50.1)
201 (49.9)
Age (n 403)
20-25
26-30
31-35
36-40
41-45
80
98
90
86
49
9 (2.2)
186 (46.2)
208 (51.6)
12 (3.0)
140 (34.7)
251 (62.3)
Table I.
Sector of employment (n 403)
Demographic
characteristics of the Public
Private
sample
(19.6)
(24.3)
(22.3)
(21.6)
(12.2)
102 (25.3)
301 (74.7)
Items
F1: supporting environmental protection ( 0.623)
i11. Supporting environmental protection makes me feel meaningful
i12. The price for green products should be appropriate in relation to the value for
money
i13. I think environmental protection is meaningless
i14. Ingredients of an environmentally friendly product are not harmful to the animals
and nature
i15. For a green product, good value for money exists in its features
i16. Ingredients of an environmentally friendly product are recyclable
i17. I find green products really relevant to my lifestyle
i18. An environmentally friendly product produces the least amount of pollution in its
usage
i19. I prefer green products over non-green products when their product qualities are
similar
Factor
loading
0.715
0.712
0.710
0.420
0.539
0.917
0.902
0.749
0.575
0.477
0.798
0.695
0.518
0.458
0.962
0.958
337
0.624
0.577
0.552
0.488
Green product
purchase
decisions
0.789
0.619
0.589
0.951
0.947
demonstrated broadly satisfactory levels of fit (Browne and Cudeck, 1993) as CFI was
obtained 0.918; the RMSEA was obtained 0.078. The six-factor model had the best
overall fit to the data with a 2 statistic of 688.626, goodness of fit index (GFI) of 0.890
and an adjusted goodness of fit index (AGFI) of 0.834. Thus, it can be inferred that
green consumer behaviour are best identified along six dimensions.
Composite reliabilities varied between 0.609 and 0.988; which exceeded the
recommended level of 0.6. Further, convergent validity was checked by ensuring all
Table II.
Exploratory factor
analysis
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33,3
338
average variance extracted values W 0.5 and the smallest item test statistic was W 1.96
( 0.001) (Anderson and Gerbing, 1988; Fornell and Larcker, 1981).
The variables identified from the literature review hold support in the empirical
analysis. First factor Supporting environmental protection explains consumer
perceptions for green products and their contribution towards protecting the
environment. It elaborates on consumers choice of green products which is influenced
by the product quality, product attributes, value for money and their relevance to
consumers lifestyles. Second factor Drive for environmental responsibility is related
to consumers understanding of significance of human activities having impact on the
environment and the realization of their responsibilities towards environmental
protection. Third factor Green product experience elaborates upon consumers
experience of green products from self-learning and experience-sharing with friends.
Fourth factor Environmentally friendliness of companies is related to consumers
concern towards the impact of company actions on the environment and their
judgement of buying products based on environmental performance of companies.
Fifth factor Green product purchase decision is related to consumers purchase
decisions of green products. The sixth factor Social appeal describes social
sentiments of environmentally friendly consumer behaviour for their willingness to be
accepted and recognized in the society.
4.2 Hypotheses testing
To test proposed hypotheses, the measurement model was converted to structural
model in AMOS (Figure 2). Using regression weight table, the results are interpreted
and discussed. First, the relationship between supporting environmental protection and
green product purchase decisions is found statistically significant (p o 0.05). This
supports H1; indicating that, individuals with positive predisposition towards green
products are more likely to purchase green products. They also understand the fact
that it is worth paying higher prices for green products that contribute towards
improving the quality of environment. This finding is consistent to those of Follows
and Jobber (2000); who tested positive that consumers who understand environmental
consequences of their consumption patterns have environmentally responsible
purchase intentions.
The relationship between drive for environmental responsibility and green product
purchase decisions of consumers is found statistically significant (p o 0.05). This
supports H2; indicating that, individuals having awareness of their individual
responsibilities towards the environment are more likely to purchase green products.
This finding is consistent to those of Lee (2009), who tested positive that consumers
who understand significant role of individual actions in making a difference in
environmental quality have environmentally responsible purchase intentions.
The relationship between consumers experience with green products and green
product purchase decisions of consumers (H3) is also supported (p o 0.001) in the
study. This finding is consistent to those of DSouza et al. (2006) and Kim and Chung
(2011) who found positive influence of consumers experience with green products
on environmentally friendly purchase behaviour. Oliver and Lee (2010) also
found propensity to seek information about green products positively related with
environmentally friendly purchase behaviour.
Also, the study supports relationship between environmental friendliness of
companies and green product purchase decisions of consumers (H4) (p o 0.001), which
is consistent to those of Laroche et al. (2002) who found the two positively related.
Green product
purchase
decisions
0.65
e9
i11
e8
i12
e7
i13 0.32
e6
i14 0.21
0.48
0.14
0.81
0.69
0.37
0.56
0.45
e5
i15 0.07
e4
i16 0.07
e3
i17 0.25
e2
i18 0.21
e1
i19
0.42
339
F1
0.47
0.50
0.46
0.33
0.40
e26
0.19
i51
0.69 0.44
0.31
e21
0.35
e14
i21 0.72
e13
i22 0.34
e12
i23 0.68
e11
i24
0.59
F5
0.61
0.56
0.29
0.68
i52
e22
0.46
0.85
0.58
i53
F2
e25
0.51
0.82
0.82
0.30
0.31
0.75
e18
e17
i31 0.40
i32 0.23
e16
i33 0.48
e15
i34
e20
0.13
0.19
F3
0.69
0.19
0.29
i41 0.97
i42 0.93
e24
i61 0.99
i62
0.48
0.98
e19
e23
0.26
0.56
0.63
0.99
0.99
0.28
F4
0.08
0.96
0.99
F6
It indicates that consumers buy products from those companies who behave
environmentally friendly and on the contrary, penalize those who do not.
Further, the relationship between social appeal and green product purchase
decisions is found statistically significant (H5) (p o 0.05). This indicates that
individuals who wish to be a part of an environmentally friendly society, and to
develop and maintain environmentally friendly standards of living are more likely to
purchase green products. This result is consistent to those of Lee (2009), Oliver and Lee
(2010) and Ozaki and Sevastyanova (2011).
Thus, green product purchase decisions (F5) was significantly determined by explicit
support to environmental protection (F1), Drive for environmental responsibility (F2),
green product experience (F3), environmental friendliness of companies (F4) and social
appeal (F6), resulting in an R2 0.69. In other words, the variables described above
explained 69 per cent of the variance of green product purchase behaviour. A summary
of the hypotheses testing results is shown in the Table III.
Figure 2.
Output of structural
model using AMOS
MIP
33,3
Sl.
no.
H1
H2
340
H3
H4
Table III.
Results of
hypotheses testing
H5
Hypotheses
Findings
Supported
(p o0.05)
Supported
(p o0.05)
Supported
(p o0.001)
Supported
(p o0.001)
Supported
(p o0.05)
Green product
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decisions
341
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intend to launch their green products in India may use the findings to draw up their
marketing strategies.
6.1 Limitations
This study has certain limitations. The sample data are collected from the metropolitan
region of Mumbai and it may not represent the Indian population per se. The study has
limitations in terms of sampling bias due to snowball sampling. It is a cross-sectional
study rather than a longitudinal in approach which could have measured changes in
behaviour. Also, it is based on self-reports of past behaviours of consumers or
predicting future actions which may suffer from over-reporting or under-reporting.
Though the study suffers from such limitations, it has sought analytical generalization
rather than statistical generalization.
6.2 Direction for future research
Future research on green consumerism can focus on capturing actual behaviour,
and the motives behind green consumer purchase behaviour, such as for environmental
benefits, personal benefits, health benefits and social benefits. It would be interesting to
consider the attitudes of customers across a range of locations and cultures in a diverse
country like India. Cross-country analysis of green consumer behaviour can be an
interesting aspect to study. Practitioners and academics alike would benefit from more
focused research in this area.
Further, future research should also focus on conditions and situations under which
consumers change their behaviour towards the environment. Examining cross-cultural
similarities and differences in green consumers in a diversified country like India is a
domain of challenge. Methodologically, in-depth interviews with individual consumers
can lead to enriched understanding of green consumer behaviour. Kreidler and JosephMathews (2009) mention that the number of consumers who are interested in buying
green products, using sustainable products and being socially responsible are ever
increasing and is no more limited. So, the researchers can also focus on testing
contemporary marketing in environmental perspective.
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