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IMPACT OF GREEN MARKETING AND ENVIRONMENTAL KNOWLE e ON CONSUMER DG PURCHASING PATTERNS AN EMPIRICAL STUDY IN THE CONTEXT OF VIETNAM

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Tiêu đề Impact Of Green Marketing And Environmental Knowledge On Consumer Purchasing Patterns: An Empirical Study In The Context Of Vietnam
Tác giả Trần Thị Tuyết Hân
Người hướng dẫn PhD. Trần Quốc Trung
Trường học Foreign Trade University
Chuyên ngành International Business Administration
Thể loại Graduation Thesis
Năm xuất bản 2021
Thành phố Ho Chi Minh City
Định dạng
Số trang 123
Dung lượng 2,83 MB

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FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Ho Chi Minh City, ….../ 05 / 2021 DISSERTATION REMARKS Student’s full

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-*** -

GRADUATION THESIS Major: International Business Administration

IMPACT OF GREEN MARKETING AND

PURCHASING PATTERNS: AN EMPIRICAL STUDY

IN THE CONTEXT OF VIETNAM

Student : Trần Thị Tuyết Hân Student ID : 1701025194

Class : K56 CLC 1 Supervisor : PhD Trần Quốc Trung

Ho Chi Minh City, May 2021

Thesis Code: 12

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FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

Ho Chi Minh City, … / 05 / 2021

DISSERTATION REMARKS

Student’s full name: TRẦN THỊ TUYẾT HÂN Student code: 1701025194 Subject of the thesis:Impact of green marketing and environmental knowledge on

consumer purchasing patterns: An empirical study in the context of Vietnam

Name of the supervisor: PhD TRẦN QUỐC TRUNG

Department:

DETAILED REMARKS

1 Student’s attitude and progress during the dissertation schedule:

2 Responsiveness of scientific content to the research topic:

3 Format of the dissertation :

4 The supervisor proposes the score for student’s attitude and progress

during the dissertation schedule:

/1

Supervisor

(Signature with full name)

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COMMITMENT

“I guarantee this is my own research

The data and results stated in this graduation thesis are truthful and have never been published in any other author's research ”

Ho Chi Minh, 21 May 2021

Author’s signature

Trần Thị Tuyết Hân

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ACKNOWLEDGMENT

I am indebted to my supervisors PhD Tran Quoc Trung for his patience, careful supervision, and encouragement throughout the completion of my thesis project I sincerely thank you him for being the sort of supervisors every student needs - astute, supportive, enthusiastic, and inspiring The ideal role models for a beginning academic and the best possible leading academics to supervise an ambitious enhancement study

Moreover, the author would like to send sincerest gratitude toward all lecturers

at Foreign Trade University in Ho Chi Minh City for knowledge and experience acquired during her studying as well as enthusiastic support and for granting her greatest opportunities to learn and finish this thesis

Despite having invested much time and effort, due to limited time and insufficient knowledge, shortcomings and errors are unavoidable Hence, the author welcomes straightforward and constructive feedbacks from the scientific instructor for better performance

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TABLE OF CONTENTS

TABLE OF CONTENTS 1

CHAPTER 1 INTRODUCTION 1

1.1 Rationale 1

1.2 Research background 4

1.2.1 In the world 4

1.2.2 In Vietnam 6

1.3 Aims and objectives 8

1.3.1 Aims 8

1.3.2 Objectives 8

1.4 Research subject and research scope 8

1.4.1 Research subject 8

1.4.2 Research scope 9

1.5 Research questions 9

1.6 Research methods 9

1.7 Contribution of the research 10

1.8 Structure of graduation thesis 10

SUMMARY OF CHAPTER 1 11

CHAPTER 2 LITERATURE REVIEW 12

2.1 Introduction of key variables 12

2.1.1 Green marketing 12

2.1.2 Consumer purchasing patterns 13

2.1.3 Environmental knowledge 13

2.2 The importance of green marketing 14

2.3 Understanding consumer purchasing patterns 15

2.4 Consumer purchasing patterns in relation to green marketing 16

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2.4.1 Green marketing through eco-labeling 18

2.4.2 Green marketing through green branding 20

2.4.3 Green marketing through green advertising 21

2.5 Green marketing, environmental knowledge and consumer purchasing patterns 22

2.6 Theoretical framework 25

SUMMARY OF CHAPTER 2 26

CHAPTER 3 RESEARCH METHODOLOGY 27

3.1 Research model design 27

3.1.1 Research approach 27

3.1.2 Research process 27

3.1.3 Research model 29

3.1.4 Research methods 33

3.2 Data collection 33

3.2.1 Data collection 33

3.2.2 Data collection instrument 34

3.2.3 Population and sample 36

3.2.4 Sampling and technique 36

3.3 Data analysis 39

3.3.1 Data analysis technique 39

3.3.2 Research ethics 43

3.3.3 Limitations 44

SUMMARY OF CHAPTER 3 44

CHAPTER 4 RESEARCH RESULTS AND ANALYSIS 45

4.1 Descriptive analysis 45

4.1.1 Descriptive statistics on demographics 45

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4.1.2 Statistical description of factors affecting Customer Purchasing Patterns

48

4.1.3 Statistical description of Customer Purchasing Patterns 50

4.2 Statistical Results 51

4.2.1 Reliability Test 51

4.2.2 Correlation analysis 53

4.2.3 Regression analysis 54

4.3 Mediation analysis 60

4.4 Discussion .67

SUMMARY OF CHAPTER 4 68

CHAPTER 5 CONCLUSION, RECOMMENDATIONS AND FUTURE RESEARCH 69

5.1 Conclusion 69

5.2 Practical recommendation 69

5.2.1 Recommendation 1 70

5.2.2 Recommendation 2 70

5.2.3 Recommendation 3 71

5.3 Study limitations and future research .72

SUMMARY OF CHAPTER 5 73

REFERENCES 74

APPENDIX 87

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LIST OF ABBREVIATIONS

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LIST OF TABLES AND FIGURES FIGURES

Figure 1.1 Consumers' demand for sustainable products based

on care for environment globally in 2016, by region 2 Figure 2.1 Theoretical Framework of the Study 25

Figure 3.3 Statistical research model with hypotheses 32

Figure 3.5 Guidelines to interpreting Pearson's correlation

Figure 4.1: Gender Distribution of Survey Participants 45 Figure 4.2 Marital Status Distribution of Survey Participants 46 Figure 4.3 Education level Distribution of Survey Participants 47 Figure 4.4 Work situation Distribution of Survey Participants 47 Figure 4.5 Age Distribution of Survey Participants 48

Figure 4.7 Statistical relationship between green advertising

Figure 4.8 Statistical relationship between eco-labeling and

Figure 4.9 Statistical relationship between green branding and

Figure 4.10 Statistical relationship between consumer

purchasing patterns and environmental knowledge 60 Figure 4.11 Statistical relationship between green marketing

Figure 4.12 Statistical relationship between green marketing 63

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and consumer purchasing patterns with the existence of

environmental knowledge

Figure 4.13 Statistical relationship between environmental

knowledge and consumer purchasing patterns with the

existence of green marketing

64

Figure 4.1 Statistical relationship between green marketing 4

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TABLES

Table 3.1 Summary of definition of variables used 30

Table 3.3 Summary of demographic information of

Table 4.1 Table of independent variables statistical description 49 Table 4.2 Table of dependent variables statistical description 50 Table 4.3 Table of independent & dependent variables

Table 4.5 Validity analysis using Pearson correlation 53 Table 4.6 Model summary of regression of consumer

Table 4.7 ANOVA results of regression of consumer

Table 4.8 Results of regression of consumer purchasing

Table 4.9 Model summary of regression of consumer

purchasing patterns on environmental knowledge 59 Table 4.10 ANOVA results of regression of consumer

purchasing patterns on environmental knowledge 59 Table 4.11 Results of regression of consumer purchasing

Table 4.12 Model summary of regression of environmental

Table 4.13 ANOVA results of regression of environmental

Table 4.14 Results of regression of environmental knowledge

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Table 4.15 Model summary of regression of consumer

purchasing patterns on green marketing and environmental

knowledge

62

Table 4.16 ANOVA results of regression of consumer

purchasing patterns on green marketing and environmental

knowledge

62

Table 4.17 Results of regression of consumer purchasing

patterns on green marketing and environmental knowledge 63 Table 4.18 Model summary of regression of consumer

Table 4.19 ANOVA results of regression of consumer

Table 4.20 Results of regression of consumer purchasing

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CHAPTER 1 INTRODUCTION

The rationale, research history and methodology, goals and objectives, subject and scope, contribution, and topic structure are all covered in this chapter, which serves as the beginning of the research The chapter also offers a broad summary of the remaining four chapters' contents

1.1 Rationale

Anthropogenic greenhouse gas emissions have risen steadily since the pre-industrial period, owing primarily to economic and population growth, and are now at their highest levels ever This has resulted in carbon dioxide, methane, and nitrous oxide concentrations in the atmosphere that are unparalleled in at least the last 800,000 years Their impacts have been identified in the climate system, along with those of other anthropogenic drivers, and they are highly likely to have been the primary cause of the observed warming since the mid-20th century (Global Carbon Project

by Our World in Data, 2020) Vietnam's per capita emissions have risen by nearly

300 percent in the last two decades This was also true in many other developing countries, such as China, where per capita emissions rose by 170 percent between

2000 and 2019 As a result, China has surpassed the United States as the world's largest carbon dioxide emitter (Statista Research Department, Mar 12, 2021) In

1950, the world's annual production was just 2 million tonnes Annual production has nearly doubled since then, hitting 381 million tonnes in 2015 To put this in perspective, this is about the size of two-thirds of the world's population The worsening of environmental problems around the world, ranging from the high prevalence of plastic in the world's seas and oceans to global warming, raw material use, and waste disposal, has prompted international bodies, as well as companies and individual consumers, to reconsider their lifestyles, especially in the production sector (Science Advances, 2017) When we consider the issue of global warming, a 1°C temperature rise can seem negligible Not only is it true that 1°C of rapid warming can have major effects on climate and natural systems, but this 1°C figure also conceals vast differences in warming around the world

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Individual consumer habits are having unprecedented effects on our natural world (Stern 2000) Society and industry are faced with a confluence of factors including environmental degradation, emissions, and climate change; rising social inequity and poverty; and the growing need for renewable energy sources that lead to a new way of doing business, partly as a consequence of our consumption habits (Menon and Menon 1997) As a result, many businesses are realizing the need for a more sustainable way of doing business, and companies including Interface Carpet, Unilever, Nike, and Starbucks are integrating sustainability into their brand DNA (Hardcastle 2013) Clearly, businesses that can adapt to the demands of our changing environment, including the urgent need for sustainability, are more likely

to succeed over time and reap competitive benefits Identifying new goods and opportunities, exploiting disruptive technologies, spurring creativity, driving operational productivity, and empowering and retaining workers are all benefits of a sustainable business orientation (Berkeley Earth, 2020)

Figure 1 Consumers' demand for sustainable products based on care for 1

environment globally in 2016, by region

(Source: Statista Research Department, Aug 15, 2016)

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In 2016, this figure shows the percentage of consumers who stated that caring for the environment is the reason they would purchase or wish for more sustainable goods, broken down by country At this time, some 22 percent of respondents from Europe stated that they wished there were more sustainable products Younger people are more interested in buying green goods, but older people are the primary purchasers New parents are buying more organic food and goods for their children, which is changing family eating habits drastically As a result, green product production and green consumption habits are on the rise, especially in urban areas

It is important for advertisers, academicians, and researchers to understand the antecedents of consumers' green-purchase intentions because it encourages appropriate green product development strategies In fast-growing developing countries like Vietnam, however, empirical research is still lacking In comparison

to other developing countries, Vietnam is still in the early stages of research on environmental issues, green goods, and green buying decisions In Vietnam, no research has been done on green buying decisions using the Theory of Planned Behavior

Over the years, environmental activities have shifted from voluntary practices to coercion enforced by legislation all over the world, especially in developing countries Since the introduction of the principle of green marketing, the consumerism movement, which began as a way to protect customers from deceptive marketing, has greatly improved It is also expected to protect consumers' environment as well, through environmentally friendly marketing strategies that result in "green consumerism" (Dono et al., 2010) In recent years, green marketing campaigns have exploded in popularity According to figures released by Global Industry Inc in 2011, the global green marketing market is projected to hit $3.5 trillion by the end of 2017 This is primarily due to heightened environmental consciousness among customers, as well as government agencies and the business world This is primarily due to increased environmental consciousness among customers, as well as government agencies and the business sector As a result, even though green goods are costly, it is considered a necessity in today's world to turn to them Green marketing's main aim is to raise public awareness about environmental

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issues and encourage consumers to turn to environmentally friendly goods As a result, it not only acts as a marketing tool, but also contributes to society by raising awareness of environmental concerns associated with items other than green offerings

Realizing the importance of above issues, the author decided to conduct the

research on the topic “Impact of green marketing and environmental knowledge

on consumer purchasing patterns: An empirical study in the context of Vietnam” in order to analyze, with and without the involvement of environmental

awareness, the green marketing practices in Vietnam, as well as assist businesses, advertisers, and policymakers in redesigning marketing tools such as green branding, green ads, and eco-labels based on the experience of young consumers and the findings of our study The findings of this study are expected to provide more new insights to strategy and marketing managers, allowing them to develop new marketing strategies and tools to increase profitability in the green market, formulate strategies for maximizing sustainable value creation, and increase the number of environmentally conscious young consumers The findings could also provide policymakers with ideas for better legal directives to encourage green energy projects and educational programs, assisting in the transformation of the young generation's minds and behavior as business leaders and consumers toward environmental protection

1.2 Research background

1.2.1 In the world

Environmental awareness is one of the most significant factors that influences consumers' green purchasing decisions Green marketing practices of companies may have a greater effect on customers who have a greater understanding of the environment Globally, sales of goods from brands that are actively involved in being socially and ethically responsible rose by more than 4% last year, compared

to less than 1% for other brands Sixty-six percent of customers are willing to pay more for a “socially responsible” brand, up from 55 percent in 2014 and 50 percent

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in 2013 With 52 percent of consumers acknowledging a higher price for so-called

"green" goods, Italians are in line with the rest of Europe It's worth remembering that this is a rising trend that started with 32% in 2013 and is being repeated across Europe Speaking of Europe, there's a lot on the horizon that advertisers should be aware of Companies in Europe (as well as Japan) are preparing to respond to government directives and regulations that will have a significant effect on how many different types of goods are planned and conceived in the future Two such examples are the End of Life Vehicles Policy and the WEEE Directive (Waste Electronics and Electrical Equipment) that require manufacturers to take responsibility for their goods from conception to end of life Moreover, consumers are increasingly demanding that environmental performance be a part of any successful product, as environmentalism is quickly becoming ingrained in American culture

According to several publications, the key issue with today's green marketing is a lack of customer confidence in corporations' environmental information communication (e.g., OECD, 2011; Ottman 2011; Chen & Chang 2013; Lemke & Luzio 2014) One can therefore talk about a trust crisis Nearly half of EU citizens still have reservations about manufacturers' claims about their products' environmental quality, according to the results of the "Attitudes of Europeans Towards Building The Single Market For Green Products" survey (Eurobarometer, 2013), which polled about 25,000 Europeans in 2012 Specifically, 9,024 citizens (36%) had a propensity to doubt certain statements, whereas 2,912 (11%) had no faith in companies at all Exaggerated or deceptive environmental claims were recorded by one-third of the participants Some countries have developed special law laws or guidebooks to control and track green marketing statements in order to prevent such situations Such countries include the USA (the US Federal Trade Commission’s Guide for the Use of Environmental Marketing Claims), Australia (the Australian Trade Practice Commission’s Environmental Claims in Marketing–

A Guideline), the United Kingdom (Defra, 2011), and Canada (Environmental Claims: A Guide for Industry and Advertisers, a document based on the ISO 14021 norm) Environmental Claims: Report from the Multi-Stakeholder Dialogue

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(European Consumer Summit, 2013) was presented at the European Consumer Summit in 2013, demonstrating that the issue of low consumer confidence in green claims has been recognized and is currently being addressed Aside from these examples, there are a variety of general environmental information communication principles in use, derived from environmental management systems or social responsibility standards (e.g., ISO 14063; ISO 26000 (2010); ISO 14025 (2006))

For some time now, environmental sustainability has been one of the most important topics on the global stage, affecting governments, businesses, and customers Green marketing is a significant foundation for influencing customer purchasing decisions However, several studies have looked at it from the perspective of corporate social responsibility rather than marketing As a result, there is always a need to comprehend the variables that affect the consumer's decision-making process This understanding is critical for multiplying the effects of shaping consumer purchasing behavior Therefore, further research is required to fully understand the potential of this important field, which is still in its infancy Furthermore, studies on this topic have been conducted in developed countries, especially in the United States However, in developing countries, where purchasing habits and socioeconomic factors vary, the situation is likely to be different There is a lot of literature on green marketing and how it affects consumer buying behavior in developed countries, but there is a lack of research on why green marketing strategies are needed to influence consumer buying behavior

in developing countries

1.2.2 In Vietnam

In order to conduct green marketing research, the author screened current literature and discovered that the majority of research items are dedicated to developing countries, with associated strategies, findings, and recommendations When it comes to developing countries, expect more diversity because each country varies

in terms of growth, green marketing knowledge and capacity, socio-cultural context, legal and institutional settings, and so on

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In Southeast Asia, Vietnam is a transitional and developing economy.With a population of more than 95 million people, it is considered a fast growing and -promising consumer market Green consumption and green goods are still relatively new and evolving concepts in Vietnam, as they are in many other developing countries (Nguyen et al., 2019) However, scholars and clinicians have been paying attention to these ideas (e.g Le et al., 2019; Nguyen et al., 2019) For example, The Vietnam Textile and Apparel Association and the World Wildlife Fund have collaborated on a project to “green” turn the textile and apparel industry into a more sustainable one for the years 2018–2020 In retailing field, Vinmart (a supermarket chain owned by Vingroup, Vietnam's largest private conglomerate) has launched a number of initiatives to promote green goods and encourage customers to engage in environmentally friendly behavior

Though there isn't much on the topic of green marketing, there are a number of useful studies about green business trends that report on credible relevant findings from the north to the south of Vietnam, such as “An investigation into the relationship between materialism and green purchase behavior in Vietnam and Taiwan” (Nguyen Thi Tuyet Mai, 2019), in which she indicated that consumers who place a high emphasis on success may be more concerned with their own self-esteem, and many green goods may be seen as indicators of success because they cost more and are often associated with the image of something new, fashionable, fresh, and special; or many other related topics: “How do green attributes elicit pro-environmental behaviors in guests? The case of green hotels in Vietnam” (Ho Le Thu Trang, 2018); “Green Marketing Strategy - A New Trend for Businesses in Vietnam” (Thi Thanh & Thien Duy, 2016); “Green entrepreneurship understanding

in Vietnam” (Tien Hoang, 2020);…

Overall, in the current background of Vietnam, there is almost no evidence of depth study published in globally ranked journals on the issues of green marketing However, the majority of related research is likely to be published infrequently in domestic journals As a result, the current study could perfectly fill this void by

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in-conducting original research on green marketing in Vietnam and linking to consumers purchasing patterns

1.3 Aims and objectives

1.3.2 Objectives

With investigation of survey conduction, the purpose of this thesis is to examine the relationship between green marketing and environmental awareness together with consumer purchasing patterns in the case of Viet am through accomplishing these nsubsequent objectives:

Firstly, to gain a better understanding of the idea of green marketing in developing countries like Vietnam, including eco-labeling, green branding, and green advertising

Secondly, to investigate the level of environmental knowledge of consumers in Vietnam

Thirdly, to assess the effect of green marketing on consumer purchasing behavior in developing countries like Vietnam

Finally, to analyze the role of environmental awareness as a mediating factor in the relationship between green marketing and consumer purchasing behavior in developing countries like Vietnam

1.4 Research subject and research scope

1.4.1 Research subject

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The research focuses on the impact of green marketing and environmental knowledge on consumer purchasing patterns of Vietnamese people

This study targets Vietnamese who currently living in Vietnam, regardless demographic characteristics such as age, gender, ethnicity, religion, income, education, home ownership, sexual orientation, marital status, family size,

1.4.2 Research scope

The scope of space: Vietnamese who currently living in Vietnam

The scope of time: The study has been undertaken from January to May 2021, in which primary data was collected through a survey conducted from March 8th to March 31st, 2021

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This research utilizes the Five-point Likert scale, SPSS software to measure the value and meaning of variables The Cronbach’s Alpha test was used to assess the scales’ reliability To check the intensity and significance of the relationships between all variables, correlation and regression techniques were used In addition, the techniques for mediation analysis developed by Baron and Kenny (1986) were used to investigate the role of environmental awareness in mediating the relationship between green marketing and consumer purchasing behavior

1.7 Contribution of the research

Theoretically, the paper focuses on a relatively new subject that has received little attention in previous domestic and foreign studies With self-composed model, this leads to a more detailed analytical interpretation of green marketing and

environmental awareness on consumer purchasing patterns while distinguishing the characteristics of each element when examined on Vietnamese people, which can fill the gap in marketing related research aspect between Vietnam and the world outside

The core idea of green marketing is to create such awareness among people about environmental issues and convince them as to why they should switch towards green products As a result, it not only serves as a marketing tool, but also contributes to society by raising awareness of environmental concerns associated with items other than green offerings On the other hand, the current research has added to the literature by examining green marketing strategies in Vietnam with and without environmental expertise The findings of the study will assist marketers in emphasizing the importance of green ads as a good indicator of consumer purchasing behavior It also encourages them to get their environmentally friendly practices closer to reality in order to increase customer acceptance

1.8 Structure of graduation thesis

The following is a breakdown of the thesis framework for the following chapters:

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Chapter 1: This chapter, which serves as the start of the study, covers the rationale,

research history and methodology, goals and objectives, subject and scope, contribution, and topic structure The chapter also includes a general overview of the contents of the other four chapters

Chapter 2: A detailed frame of reference is given in this chapter Previous research

is discussed on the variables and interrelationships of green marketing, consumer purchasing behaviour, and consumer environmental awareness Three key and three sub-hypotheses are formed on this base These theories are taken from the literature and put to the test using consumer data

Chapter 3: This chapter describes the approach used to perform this study,

including the form of study, data collection methods, and research techniques

Chapter 4: The interpretation of the data is presented in this chapter A discussion

of the overall results is discussed at the end of this chapter

Chapter 5: The final chapter discusses the study's overall results as well as

practical consequences based on the findings It also outlines the study's limitations and makes recommendations for future studies

SUMMARY OF CHAPTER 1 With the aim of thorough investigating “Impact of green marketing and environmental knowledge on consumer purchasing patterns: An empirical study in the context of Vietnam”, the previous chapter has provided a foundation

of this research by discussing an overall background, its aims and objectives as well

as the significance of conducting this research The next chapter provides a theoretical foundation for this research in line with the objective of this study With the help of literature, hypotheses to be tested are developed

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CHAPTER 2 LITERATURE REVIEW 2.1 Introduction of key variables

The meanings of key words are presented in this section, beginning with higher level concepts (green marketing) and moving to more basic concepts

2.1.1 Green marketing

Green marketing aims to guide a company's energies toward developing a product, promoting it, pricing it, and distributing it in a way that helps to protect the environment (Polonsky, 2011) It may cover both manufacturing and distribution processes

Green marketing is a unique opportunity to evolve in ways that benefit the environment while still achieving commercial success (Maheshwari, 2014) As a result, green marketing is a manufacturing mechanism that aims to create goods that are both better to use and environmentally friendly The current research, like previous studies (Rahbar & Wahid 2011; Zandhessami et al., 2016; Sarkar, 2012), used three main variables to evaluate green marketing: eco-labeling, green branding, and green advertisement

2.1.1.1 Eco-labels

Eco-labels are environmental programs that companies undertake and for which they gain third-party certification Companies may also use such certifications in the form of eco-labels as a competitive advantage to draw more buyers by proving that they are selling more environmentally sustainable and safer goods (Ng & Wong, 2015) In the one hand, eco-labeling is used as a marketing tool, and on the other hand, it is used to address the issues of climate change and global warming (Bernard et al., 2015)

2.1.1.2 Green branding

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Any marketing strategy's heart is thought to be branding Companies aim to place their products in a complementary position in order to achieve long term success -

As a result of rising environmental issues, businesses are increasingly concerned with positioning their products in relation to going green, i.e., making their brand appear eco-friendly in order to reassure customers that the brand offers additional benefits such as being environmentally friendly and safe (Grimmer & Bingham, 2013; Wahid et al., 2011)

2.1.1.3 Green advertising

Green advertising aims to convince consumers to buy environmentally friendly goods In other words, to use promotional campaigns aimed at persuading people to buy goods that are made using environmentally friendly methods and producing less waste (Kotler & Armstrong, 2008) Green advertising has become more common in recent years, and consumers who are more environmentally concerned pay increased attention to green advertising (Peter & Olson, 2010)

2.1.2 Consumer purchasing patterns

Market purchasing conduct refers to how people act when they are making purchases Consumer buying behavior is characterized in the context of green marketing by purchasing products that are environmentally friendly and produced using safe manufacturing processes (Herring & Sorrel, 2009) Green purchasing decisions are usually regarded as a source of pride among consumers Consumers are influenced to make green purchasing choices using eco-labeling, green branding, and green advertising strategies (Akenji, 2014)

2.1.3 Environmental knowledge

People are increasingly confronted with environmental issues that have a direct impact on their lives as time passes People must have the necessary expertise to deal effectively with environmental problems in order to deal with them effectively (Wole, 2009)

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2.2 The importance of green marketing

The primary objective of green marketing campaigns is to minimize environmental losses and to create a positive image for the organization as an environmentally friendly company that takes environmental responsibility seriously (Sarkar, 2012) It's a novel concept that aids businesses in achieving their long-term goals of attracting more customers and expanding their customer base Eco-innovation is becoming more popular among businesses as a marketing strategy It is also beneficial for companies to achieve a marketing advantage by manipulating customer behavior to purchase green goods in addition to achieving sustainable manufacturing processes (Singh & Pandey, 2012) Organizations, on the other hand, are obligated to pursue green practices for environmental conservation and to provide customers with safe and green goods and services as a result of increased legal and regulatory pressures (Sarkar, 2012) The ultimate goal of all of these activities is to persuade consumers to buy green products in order to contribute to a healthy environment and a healthy lifestyle

Eco-labeling is becoming increasingly important to modern businesses in order to improve the brand image The capacity for information asymmetry between producers and end consumers is minimized by eco-labeled goods (Okada & Mais, 2010) Consumers can form informed opinions about brands thanks to the detailed description of environmental credentials (Mishra & Sharma, 2010) Some recent studies have emphasized the importance of eco-labeling For example, by comparing the consumer buying behavior of eco-labeled and non-eco-labeled products available in the New Zealand market, Esteves et al (2017) discussed the importance of eco labeled products.- The authors proposed that a detailed description of a product's environmental credentials enhance the market's competitiveness based on the comparative results, which highlighted the importance

of eco-labeled products (Esteves et al., 2017)

Modern businesses operating in competitive markets and dealing with environmentally conscious customers are beginning to recognize the value of green

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branding (Suki, 2016) Successful green branding benefits businesses in a variety of ways, including increased brand equity, improved competitive positioning, and favorable consumer perceptions of competitors (Suki, 2016; Raska & Shaw, 2012) Aside from green branding, green advertising has become popular in a variety of industries, as companies use it as a tool to elicit desired consumer behavior In a variety of industries, effective green advertising has been reported to have a positive impact on consumer buying behavior (Chan, 2004; Tariq, 2014; Habib et al., 2010) The goal of this study is to see how eco-labeling, green branding, and green advertising affect consumer buying behavior in Vietnam

The following sections go into greater depth about consumers' behavioral mechanisms and the role of green marketing in influencing their decisions

2.3 Understanding consumer purchasing patterns

Consumer purchasing behavior can be analyzed using Ajzen's (1991) "Theory of Planned Behavior," which aims to address the motivational factors that affect consumer behavior as conditioned by intentions, subjective norms, and perceived behavioral controls According to this theory, a consumer's intentions have a huge effect on how they behave Person judgments about a certain behavior or assumptions about the outcome of certain acts form attitudes For example, if a customer believes that buying a green product is beneficial to both him and society,

he or she may develop the mentality to purchase it and then take action Normative views, on the other hand, are pressures from society, family, or a spouse to behave

in a certain way For example, social or familial pressure to purchase and promote green product consumption for environmental reasons affects a consumer's decision

to buy green products Finally, perceived behavioral controls are the variables that affect consumer purchasing conduct, such as whether or not they can afford a product and how easy or difficult it is to purchase it Consider the consumer's view

of whether he or she can afford to purchase green goods, which are typically more costly As a result, all three variables, namely personal intentions, subjective norms, and perceived behavioral controls, have a major impact on consumer purchasing

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behavior (Ajzen, 2011) As a result, green marketers employ all of the strategies listed in the theory of planned behavior to influence consumer purchasing behavior for green goods

2.4 Consumer purchasing patterns in relation to green marketing

One of the primary motivators for consumers to choose green products is cost In a survey conducted in India, Manaktola and Jauhari (2007) discovered that 67 percent

of high-income consumers prefer green goods, while 65 percent of upper income, 59 percent of middle-income, and 48 percent of low income consumers -agreed Green goods are typically out of reach for low-income customers, based on the lower number of consumers who express a preference for them (Purohit, 2012) Businesses typically charge higher rates to take advantage of their green philosophy, even though they incur lower costs (Boztepe, 2012)

middle-Researchers have also used behavioral theories to create a behavior – attitude relationship for consumers, in which customers make purchase decisions based on their favorable attitudes toward particular goods However, according to Ottman (2011), the correlation between green behavior and consumer attitudes is weak Albayrak et al (2011) conducted their research in Turkey to better understand the effect of environmental awareness on customer purchase decisions They discovered that green customers are equally perplexed This is due to their inability

to define precisely what "green" means, making it difficult to form an attitude toward green products

Spanos (2008) discussed that due to increased regulatory requirements and to match consumers‘ requirements for green products, the companies are engaged in green manufacturing and green marketing Purohit (2012) made similar claims in a later study, arguing that consumers are forced to migrate toward green goods due to social expectations, and that their intentions are eventually transformed into actual purchasing behaviour

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Consumers, in addition to organizations, now share similar responsibility for environmental conservation through green purchases In this regard, Boztepe (2012) discovered that in Turkey, consumers are influenced by social norms to purchase green goods This social strain, on the other hand, is unique and changes as demographic variables shift In support of this, Lee et al (2012) discovered that in the Korean context, gender, age, qualification, and income all influence consumer purchasing behavior for green goods

Many businesses are attempting to protect the environment by providing environmentally friendly goods (Renfro, 2010) Previous studies have shown that a number of factors affect consumer behavior when it comes to purchasing green goods Consumer income class and social norms in India (Purohit, 2012), environmental protection behavior and social norms pressure in Turkey (Boztepe, 2012), and gender, age, education, and income status in Korea (Lee et al., 2012) all play a role in the purchasing of green goods When it comes to the consistency of green product purchases, psychological and social influences have a stronger influence on consumer behavior than demographic factors (Pickett et al., 1995) Green consumers are more educated and affluent, according to Laroche et al (2001), but there is democratization of purchasing behavior in Europe and North America Animal protection, wellbeing, and the quality of organic goods are also motivators for buying green marketing products (Raska & Shaw, 2012) Parents' attitudes are also a major indicator of green marketing purchasing actions Parents are concerned about green food use and prefer organic products to improve their children's health and safety Organic consumption is a powerful motivator that influences consumer purchasing decisions (Renfro, 2010) Consumer values, environmental consciousness, knowledge of alternative goods, and the consumer's view of environmental sustainability are all factors that affect consumer purchasing behavior (Rashid, 2009)

All of this suggests that not all customers have the same purchasing habits when it comes to green goods and services However, the current study's focus is limited to examining the direct effect of green marketing on consumer purchasing behavior; it

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does not examine the role of demographics in enhancing or decreasing the impact of green marketing practices on consumer purchasing behavior

Overall, many previous studies (such as Purohit, 2012; Spanos, 2008; Boztepe, 2012; Lee et al., 2012) show that green marketing practices by businesses have a positive effect on consumer buying behavior in various consumer goods industries, either directly or indirectly

A wide variety of studies showing promising outcomes in developed countries such

as Europe and the United States, as well as developing countries such as India and Turkey, has led to the following hypothesis:

H1 (d): Green marketing has a significant positive relationship with consumer purchasing patterns for green products in Vietnam

Green marketing is carried out with the aid of three main variables This research looked at issues such as eco labeling, green branding, and green ads.-

2.4.1 Green marketing through eco-labeling

Marketers may use eco-labeling to demonstrate that they have used environmentally friendly and comprehensive methods of manufacturing and delivery These goods have been given a license by independent third parties to be environmentally friendly (Okada & Mais, 2010; Mishra & Sharma, 2010) According to Ng and Wong (2015), the technique of eco-labeling has been widely used by marketers in the Hong Kong construction industry, and it has been documented to bring positive results for marketers, affecting customer purchasing behavior for the purchase of green goods It encourages customers to pay a premium for a high-quality product Similarly, Rashid (2009) discovered that eco-labeling for green goods is effective in influencing consumer purchasing behavior in Malaysia Several other researchers have backed up Rashid's results, showing that environmentally sustainable production practices are very useful in promoting eco-friendly goods and influencing customer decisions to purchase them (Kwok et al., 2014; Chkanikova &

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Lehner, 2015) Similarly, Jarvi (2010) discovered that eco-labeling appears to have

a substantial effect on consumer purchasing behaviour in Finland On the other hand, Leire and Thidell (2005) found conflicting findings, stating that while consumers recognize eco-labeling, it does not always lead to them purchasing certain items Furthermore, using meta analysis, Cherian and Jacob (2012) found -that consumers do not always trust and depend on eco labeling However, the -reasons for this mistrust remain unknown Another research discovered that eco-labeling improves the transparency and trustworthiness of environmental statements related to consumer friendly products (Iraldo et al., 2005) Eco- -labeling often increases the product's vulnerability to changing usage trends (Sitarz, 1994) The eco-labeling of a commodity allows the buyer to make a cost effective decision -(Grunert & Wills, 2007) Compared to other products, eco-labeled environment products are favored (Loureiro et al., 2001; Gallastegui, 2002) Consumers' purchasing decisions are influenced by eco-labeled goods (Daugbjerg et al., 2014) According to the literature, eco-labeled goods from China are favored over those without eco-labels for a number of reasons, including health issues, food safety concerns, and higher quality products, all of which enable customers to buy eco-labeled products (Yin & Ma, 2009) Previous studies have shown that eco labeling -raises consumer concerns about food safety (Wessells & Anderson, 1995), consistency (Salladarré et al., 2010), environmental impacts (e.g Jaffry et al., 2004), sustainability (e.g Sogn-Grundvg et al., 2013), and animal protection (e.g Sogn-Grundvg et al., 2013) (Verbeke et al., 2007) The effectiveness of an eco-label product is measured by the consumers' willingness to use it The ability of customers to buy eco labeled products is used to determine the product's popularity -(Thgersen, 2000) Since the idea of eco-labeling is more common in developed countries, and it has been studied very little in developing countries, many of these findings were primarily taken from studies conducted in developed countries As a result of the above findings, the following hypothesis was developed to decide whether the findings from developed countries are equally relevant to developing countries

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H1 (b): Eco-labeling has a significant positive relationship with consumer purchasing patterns for green products in Vietnam

2.4.2 Green marketing through green branding

Green branding is another significant element in green marketing Green marketing adds value to a company's image (Suki, 2016) Green positioning is the most common technique for green branding (Raska & Shaw, 2012) The positioning may

be emotional or functional, with the functional strategy appealing to rational minds through thorough awareness of product environmental benefits, and the emotional strategy relying on customers' emotional needs For example, functional brand strategies emphasize the products' related environmental benefits in the form of more environmentally sustainable production processes and sound product attributes, while emotional brand strategies emphasize society's well-being as a result of environmentally friendly production processes Emotional branding has been found to be more effective than functional branding (Michaud & Llerena, 2011) Sarkar (2012) explored the use of various emotional appeals, such as selflessness, emotional well-being, and other nature related appeals, as part of a -positioning brand strategy, which demonstrated the efficacy of emotional branding and backed up the findings of Michaud and Llerena (2011) According to Hartmann

et al (2005), companies in Spain will increase the value of their goods by implementing a green branding strategy This may be one of the most successful brand marketing tactics Suki (2016) studied the effect of green brand positioning

on consumer intentions in Malaysia, based on findings from Hartmann et al (2005), and discovered that green brand positioning strategies have a strong positive influence on consumer purchasing behaviour Huang et al (2014) discovered that green branding has a huge effect on green buying intentions in Taiwan However, Raska and Shaw (2012) have challenged the efficacy of a green brand positioning strategy In a study of US consumers, they discovered that consumers may have skepticism about companies' green initiatives, which has a negative impact on their purchasing decisions Finally, Cherian and Jacob (2012) found that green brand positioning has an effect on consumer perception, but there is no evidence that this

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perception has an impact on consumer buying behavior, based on a meta-analysis of brand positioning and consumer buying behavior To learn more about this subject, and based on studies that claim there is a link between green branding and consumer purchasing behavior in developed countries, the following hypothesis was developed to test the findings in a developing world

H1 (c): Green branding has a significant positive relationship with consumer purchasing patterns for branded green products in Vietnam

2.4.3 Green marketing through green advertising

Green advertisement is the third significant determinant of green marketing It involves promoting environmentally sustainable content and environmental sustainability The term was first used in the late 1960s, but it gained popularity in the 2000s as international legislation for green goods developed (Yin & Ma, 2009; Frank-Martin & Peattie, 2009) Advertising plays a critical role in converting customer purchasing decisions It assists in shifting customers' views of green goods before they make purchases (Maheshwari & Malhotra, 2011; Leonidou et al., 2013)

In the Pakistani background, Tariq (2014) discovered that green advertisement has a direct effect on customer purchasing behavior and satisfaction Green marketing, on the other hand, did not affect all customers Similarly, Kordshouli et al (2015) found that eco-labeling and green messages in ads only affected 70% of consumers

in Mashhad, Iran Furthermore, half of the respondents said they didn't pay attention

to green messages in advertisements because they didn't think they were credible According to Chan (2004), factors associated with lower reputation imposed on green ads in the Chinese market include the producer becoming less eco friendly or -being unable to meet consumers' requirements He discovered that in the Chinese market, companies that advertise environmentally conscious activities improve the behavior of 70% of customers According to Rahbar and Wahid (2011), using ecological concepts in advertising in Malaysian advertisements may not entice consumers to buy the product

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The cognitive focus of green ads demonstrates that it has a significant impact on customer knowledge and awareness of environmental issues (Stone et al., 1995) People with little awareness of environmental concerns demonstrated a deep attachment to environmental well-being, according to Ling yee (1997) New -products related to renewable resources, climate and environmental improvements, and eco-labeling tap new realms in green advertising, according to green advertising and customer purchasing behavior researchers (Rowlands et al., 2002) According

to research conducted in Pakistan, exposure to green ads through print and electronic media affected consumers' buying intentions (Habib et al., 2010) People

in Malaysia began to understand environmental issues and favor green goods as a result of increased awareness about eco-labels and green advertisements (Rashid, 2009) The following hypothesis has been proposed to test the suggested relationship:

H1 (a): Green advertising has a significant positive relationship with consumer purchasing patterns for green products in Vietnam

2.5 Green marketing, environmental knowledge and consumer purchasing patterns

People have been more curious about the world around them in recent years People have been inspired to help save the world as a result of problems such as global warming and greenhouse effects, and therefore to promote a shift in behavioral development for the green movement (Khare, 2015) In Vietnam, green marketing

is also in its early stages It is gaining traction as a result of its strong and direct concern for Vietnam's economic and environmental conditions Companies are attempting to raise enough concern about green marketing and green product purchases Further efforts should be considered due to a lack of understanding (Awan & Shahid, 2015) According to Grunert (1993), both underdeveloped and developed countries are actively involved in the green movement in the process of environmental protection Consumer purchasing behavior is linked to awareness of environmental disruption As a result, more and more people are becoming involved

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n nghĩ gì về các thương hiệu được định hình là một thương hiệu "xanh"? Đánh giá mức độ đồng ý của mình đối v i từng khẳng định sau ớ bằng cách chọn vào một con số ở mỗi phát biểu với: (Trang 116)

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