Factors affecting customers green consumption appliances a study of green home appliances pruducts in vietnam

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 th

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HUYNH PHAN MY NHUNG

FACTORS AFFECTING CUSTOMER’S GREEN CONSUMPTION INTENTION: A STUDY OF GREEN

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2015

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HUYNH PHAN MY NHUNG

FACTORS AFFECTING CUSTOMER’S GREEN CONSUMPTION INTENTION: A STUDY OF GREEN

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

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION 1

1.1 Research background 1

1.2 Research problems 2

1.3 Research objectives 3

1.4 Research scope 4

1.5 Research method 4

1.6 Significance of research 6

1.7 Structure of the study 6

CHAPTER 2: LITERATURE REVIEW 8

2.1 Some previous studies related to this research 8

2.2 Definitions of the concepts 10

2.2.1 Attitude toward green brand 10

2.2.2 Green satisfaction 11

2.2.3 Green brand Perceive Value 11

2.2.4 Green Trust 12

2.2.5 Green consumption intention 12

2.3 Hypothesis developing and proposed research model 13

2.4 Research model 19

2.5 Summary 21

CHAPTER 3: RESEARCH METHODOLOGY 22

3.1 Research design 22

3.1.1 Research process 22

3.1.2 Research method 23

3.1.3 Pilot study 23

3.1.4 Sampling 25

3.2 Questionnaire design 27

3.2.1 Measurements scales of the constructs 27

3.2.2 Draft questionnaire 27

3.3.Measurement scales testing 28

3.3.1 Test of scales measurement reliability 28

3.3.2 Exploration factor analysis (EFA) 29

3.4 Hypothesis testing 30

3.4.1 Pearson Correlations 30

3.4.2 Multiple regression 30

3.5 Summarry 31

CHAPTER 4: DATA ANALYSIS AND RESULTS 32

4.1 Sample characteristics 32

4.2 Assessment of measurement scales 33

4.2.1 Reliability analysis 33

4.2.2 Factor analysis (EFA) 35

4.2.3 Factor analysis (EFA) round time 2 36

4.3 Hypotheses testing using multiple regressions 39

4.3.1 Checking assumption of Multiple Regression 39

4.3.2 Hypothesis results 42

4.4 Test the effect of moderating variables 43

4.4.1 Test the moderating of gender: 43

4.4.2.Test the moderating of Age 44

4.4.3 Test the moderating of Family status 45

4.4.4 Test the moderating of Education 47

4.4.5 Test the moderating of Income 48

4.5 Normality, linearity, homoscedasticity and outliers 50

4.6 Discussions 51

4.7 Summary 52

CHAPTER 5: RECOMMENDATION AND CONCLUSION 54

5.1 Research findings 54

5.2 Managerial implications 56

5.3 Research limitations and directions for future research 56

REFERENCES 58

APPENDIXES 64

Appendix 1: Questionaires in English version 64

Appendix 2 : Questionaires in Vietnamese version 67

Appendix 3: Statistical Results 70

3.1 Sample characteristics 70

3.2 Cronbach's aplpha for each constructs 71

3.3 The first time running factor analysis – eigenvalues (for independent variables) 73

3.4 The second time running factor analysis – eigenvalues (for independent variables) 75

3.5 Correlations 76

3.6 Regression 77

3.7 Regression of gender 77

3.8 Regression of Age 79

3.9 Regression of family status 80

3.10 Mean of Education 81

3.11 Mean of Income 82

3.12 Test of assumptions 83

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 37

Figure 6: Histogram 83

Figure 7: Normal P-P Plot 84

Figure 8: Scatterplot 84

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 36

Table 5: Correlations 38

Table 6: R Square value (R2 ) 39

Table 7: Anova 40

Table 8: Coefficients 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

CHAPTER 1: INTRODUCTION 1.1 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., 2006) 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

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

1.2 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., 2006)

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

products 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

Besides, this study determines the different effects of these factors to green consumption

intention related customer groups of gender, age, income, education, family status

1.4 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

1.5 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

In the pilot study and official research, this study choice Vietnamese customers have intended to buy the home appliances products in Electronics supermarkets and new apartment and before interview them about green consumption intention, the paper explained a little bit

about green home appliances products in Viet Nam For example: The green home appliances products such as television, air condition, refrigerator,…which put green label with the stardard from 1 to 5 stars The five stars is better than low stars for more save energy, but the price is often more expensive than low stars The picture for the label of green home appliances products from 1 to 5 stars (Tapdoandienlucvietnam, 2015) as below:

Figure 1: Image for green energy label (Tapdoandienlucvietnam, 2015) After explained for customers to understand about the green home appliances products, this study checked these customers that have accepted to buy these green home appliances products or not The pilot study and official research are performed by face to face interview approach in Electronics supermarkets and new apartment

In pilot study, this study sent the draft of questionnaires to 20 customers have intended to buy green home appliances products to interview in Electronics supermarkets After received feedback information of 20 customers, questionnaires are revised and added in some of contents to suit before official research In official research, perfect questionnaires are sent

300 customers who have intended to buy home appliance productsand checked in total 300 customers, how many customers have green consumption intention

In this study, the hypotheses based on the existing behavioral comsumption theories, the quantitative method is used first to test these hypotheses and then the qualitative method is used to analyze the results with a deeper inspection To test the reliability of the scales measurement, the paper uses SPSS software to test Cronbach’s Alpha based on standardized items After that, the paper tests scales measurement validity: factor analysis - EFA

(Exploratory Factor Analysis) Finally, the paper applies regression for testing assumptions and hypothesis

1.6 Significance of research

The green consumer products has brought many benefits not only for enterprises and consumers, but also for the environment and society They helping enterprises producing, distributing have more once about certified the origin, quality, brand, reputation and help salespeople do not have to explain to the customer as much as before Moreover, consumers completely assured since most products are quality, high stability, especially reduction in power consumption and protect consumer health Therefore, choose a product that is labeled green consumer products, not only bring economic benefits for the consumers but also help to reduce pressure on the national electrical systems, environmental protection, climate change

adaptation

1.7 Structure of the study

Chapter 1 is mention two parts The first part relates to the overview of environmental awareness and green consumption trend in the present The second part involves the problem

statement and gives the reasons to select the topic

Chapter 2, the paper suggests four customer’s factors such as attitude toward green brand, green satisfaction, green brand preceived value, green trust effect green consumption intention and shows hypotheses as well as the conceptual framework of the research

Chapter 3, it presents the research method, research process, questionnaire, sample and data collection and data analysis methods The measurement scales apply for the research factors are determined clearly and suitably This chapter also defines how to collect data and analyze the data collected to test the research hypotheses proposed in chapter 2

Chapter 4, analyses data collected from survey as well as discusses the result finding in connection with research model This chapter explains the empirical part of the study This

part discusses the method for collecting data used to test the hypothesis and it analyses the data received, its reliability and multiple regression

Chapter 5, this chapter concludes research findings, managerial implications, research limitations and directions for future research.The final of this chapter is further research

References and appendixes are included in the end of thesis

CHAPTER 2: LITERATURE REVIEW

This study reviews the literatures of Green consumption intention First, it introduce some of main papers is using for this study Second, it mentions the definitions of the constructs such as Attitude toward green brand, Green satisfaction, Green brand perceived value, Green trust Secondly, main theories of Green consumption intention relates to the research Finally, a research model with hypotheses is showed

2.1 Some previous studies related to this research

Review of previous studies, some researchers discovered that awareness of green marketing has a positive impact on green consumption intention Balderjahn (1988) found that consumers have a positive attitude about environmental protection, then they would bought and used green products Additionally, consumers were beginning to realize and evalue the environmental problems related to health and so they gradually became willing to buy green products (Loudon & Bitta, 1988)

And several studies have demonstrated that the Government initiative is actively involving green consumption intention The government has a large role in protecting the environment Therefore, governments should promote awareness of safe environment for people Accordingly, the Government's policy as encouraging and providing incentive regime

to promote the environmental sustainability development and help marketers in introducing their green products Pavan (2010) argued that the government should implement a campaign

to raise public awareness about the environment and this issue would significantly influence for purchasing behavior green product (Wahid, Rahbar & Tan, 2011) According to Tsen et al (2006) the role of the government was an important element in establishing green product purchasing behavior

Other studies indicate that environmental knowledge was positively related to green consumption intention This knowledge was also considered factors that affect all stages in the

process of implementation intentions In most of the cases have demonstrated knowledge and experience level was found to be significantly related to consumer and consumer would arranged and evaluated the product, and then they built the intention (Alba & Hutchinson, 1987) There are some of studies have tested the assumption that knowledge about the environment was an important predictor of behavior environmentally friendly, consumers would used their knowledge environment to predict the buying behavior the green products in China (Chan & Lau, 2000) In addition, each of the results also shows that China with knowledge of the environment, would have a stronger intentions to buy green products Following Wahid, Rahbar and Tan (2011) demonstrated that knowledge of the environment would have a significant effect on the buying behavior of green products

In previous studies have presented some of factors such as awareness of green marketing, Government initiative, environmental knowledge affecting to green consumption intention as above However, in current study gave some of other factors affecting to green consumption intention and used many papers to reference source for these factors In specific, this study based on main three papers to do the theoretical framework and suggested research model The first paper is Investigating the Antecedents of Green Brand Equity: A Sustainable Development Perspective (Kang & Hur, 2011) The second paper is Effects of green brand on green purchase intention (Huang, Yang & Wang, 2013) And third paper is Antecedents of

Green Brand Equity: An Integrated Approach (Butt, Ng, Khong & Ong, 2013)

In first paper of Kang and Hur (2011) has four factors: green trust, green statisfaction, green effect, green loyalty effecting green brand equity, it has shown for the research model follow:

Figure 2: Kang and Hur (2011)’s research model

However, the Green Brand Equity variables may be not appropriated in the condition about environmental context in Viet Nam So, based on first paper, this study changed Green Brand Equity variable to Green consumption Intention variable and used green satisfaction variable and green trust variable to do theoretical basis for the influence to green consumption intention variable Besides, attitude toward green brand variable in the second paper of Huang, Yang and Wang (2013) and green brand perceived value variable in third paper of Butt, Ng, Khong and Ong (2013) are also used to do the theoretical basis for factors effecting green consumption intention in this study

2.2 Definitions of the concepts

The definitions of the concepts in this study are following:

2.2.1 Attitude toward green brand

Attitude toward the behavior is the individual preference for one object (Ajzen, 1985) Brand attitude is a reflection of a consumer’s preference for and overall evaluation of a brand (Teng, as cited in Huang, Yang & Wang, 2013) In summary, according to Ajzen (1985) and Teng (as cited in Huang, Yang & Wang, 2013) argued that attitude toward green brand as a reflection of a consumer’s preference and overall evaluation of a green brand This is a

element that delivers the information about a product’s unique brand attributes and benefits which particularly, reducing its environmental impact and representing environmentally friendly product attributes

2.2.2 Green satisfaction

There are many different definitions of green satisfaction as well as had several debates

on this definition Satisfaction has been defined as a general feeling of pleasure or gratification experienced by a consumer arising from the ability of a product or service to satisfy the consumer’s expectations, desires, and needs (Mai & Ness, as cited in Kang & Hur, 2011) According to Chen (2009) green satisfaction is defined as “a pleasurable level of consumption-related fulfillment to satisfy a customer’s environmental desires, sustainable expectations, and green need”

In summary, the satisfaction of the green is a form of psychological feelings related to the environment after the customer's needs are met in full, showing a comparison between the real benefits feeling and expectation Customer expectations are formed from the shopping experience, from friends, colleagues and other personal information from sellers and competitors If the actual benefits to meet with the expectations, so customers are satisfied

2.2.3 Green brand Perceive Value

Green brand perceived value is defined as a consumer’s overall appraisal of the net benefit of a product or service between what is received and what is given based on the consumer’s environmental desires, sustainable expectations and green needs (Chen & Chang, 2012a, p 506)

Consumer’s green brand Perceive Value means the perception of consumers including the brand's overall marketing activities performed by the company in a way that they promote production of products or service activities have a positive impact on the environment or other ways to reduce negative impacts on the environment (Cherian & Jacob, 2012)

In summary, according to Chen and Chang (2012a), Cherian and Jacob (2012) green brand perceived value is an overall awareness of consumers about green brand So, the company produce of green products based on the desires, needs about environment of consumers and these products has a positively affect the environment

2.2.4 Green Trust

Green trust can be identified as the tendency of a customer to believe that a brand keeps its promise regarding green performance (Chaudhuri & Holbrook, as cited in Kang & Hur, 2011) In addition, Ganesan (as cited in Kang & Hur, 2011) argued that trust is a willingness

to depend on another partner based on recognition of customer about ability, reliability, and benevolence

Trust is a level of the confidence that another partner would behave as expected (Hart & Saunders, 1997) According to Rousseau et al (1998) asserted that trust is the intention to accept damages based on positive expectations of the behaviors or intentions of another Besides, previous studies argued that trust includes three beliefs: integrity, benevolence, and ability (Blau, 1964)

In summary, referring to Blau (1964), Ganesan (as cited in Kang & Hur, 2011) this study defined green trust as the trends to rely on a product, service, or brand based on the belief or expectation resulting from its credibility, benevolence, and ability about its environmental performance

2.2.5 Green consumption intention

Green consumption intention is defined as a consumer’s desire to purchase the product after they are aware it is a green product or green brand (Chen & Chang, 2012a; Zeithaml, 1988) Green consumption intention is a consumer’s intention or actual purchase of an environmentally friendly product or brand which they are aware of its green attributes (Oliver

& Lee, as cited in Huang, Yang & Wang, 2013)

Green consumption intention is the most precise predictor of purchase behavior (Morwitz & Schmittlein, 1992), it indicates an emotional reaction resulting from consumer’s overall evaluation of a product, and also indicates the possibility that consumers would like to purchase the product (Grewal et al., 1998)

In summary, follow Chen and Chang (2012a), Oliver and Lee (as cited in Huang, Yang

& Wang, 2013), Grewal et al (1998) green consumption intention is a desire and ability of consumers to buy green products after they have been aware about properties of green products, these products are environmentally friendly

2.3 Hypothesis developing and proposed research model

Most current reseach has shown that attitudes towards green brand has a positive effect

on green consumption intention Purchasing intention was evaluated through consumer attitude as thinking, want to buy, and can be purchased that green product (Zeithaml, 1988) Some research suggests that attitudes represent what consumers like and dislike and purchasing intention of consumers often base on their attitudes about green products or green

brand so that suit with environment (Blackwell et al., as cited in Huang, Yang & Wang, 2013)

The Social psychology research has established behavioral attitudes of consumers towards green brands to predict the behavior and purchasing intention (Mostafa, 2007) Some studies also show that green marketing a positive attitude towards green products also affects the intention to buy green products (Smith et al., as cited in Huang, Yang & Wang, 2013) And (Kalafatiset et al., as cited in Huang, Yang & Wang, 2013) has find the idea of buying green products by consumers is derived from their behavior when purchasing products environmentally friendly

Some research suggests the emotional elements of a positive attitude affects the intention

to buy environmentally friendly products (Smith et al., as cited in Huang, Yang & Wang, 2013) Mostafa (2007) showed that consumers’ attitude towards green brand can influence

their Green consumption intention and directly affects their actual green purchase behavior Teng (as cited in Huang, Yang & Wang, 2013) found that consumers have a positive attitude towards a specific green brand increased the green product purchase intention of consumers For example, for customers planning to buy green products, the manufacturers have to improve attitudes consumer towards green products To enhance good attitude, enterprises must enhance the value of green products in accordance with the environmental elements of safe and good quality, style of service, dedication to customer care Meanwhile from the influence of the positive attitude towards customers green products, they lead to intend to buy this green product Therefore, this study is also suggested attitudes towards green brand is positively influence green consumption intention This is the reason to support for first hypothesis below:

H1: Attitude toward green brandis positively associated with Green consumption intention

According to current research, the green satisfaction is positive influence Green consumption intention Customer satisfaction is one of the topics most widely discussed in the field of marketing (Oliver, 1996) Previous studies have demonstrated green satisfaction affects the intention to buy green products of customers (Mai & Ness, as cited in Kang & Hur, 2011) Besides, Chang and Tu (2005) agreed that the green satisfaction will repeat for behavioral intention

Oliver (1996) suggested that the satisfactory shopping experience brought satisfaction in the consumer and may affect future purchase intention, if the purchasing experience unsatisfactory, it can not do customer satisfaction, thereby reducing the customer's purchasing intention Oliver (1996) have confirmed that satisfaction is a key element of attitude and attitude has a positive effect to the intention, leading to a positive relationship between satisfaction and intention and he also said that satisfaction is the ability to perform intention

The continue studies have also demonstrated a positive relationship between satisfaction and behavioral intention (LaBarbera & Mazursky, 1983)

Kotler (2009) emphasized that customer satisfaction always remind them of the willingness to buy the product, although there were many advertising competing brands, but consumers did not buy products for other companies, which showed customer satisfaction about green product impact on their purchasing intention

For example, when using the product lines of refrigerators or washing machines of the brand Electrolux, people often think of the quality, the ability to operate the machine smoothly, using long-term, stable, energy saving, These factors contributed to meet the demand, customer satisfaction and then the customer intended to buy green products Therefore, this study made the following second hypothesis:

H2: Green satisfaction is positively associated with Green consumption intention

Recent studies have shown that green brand peceived values have a positive effect on Green consumption intention The development on the positive perceived value of customers about green products is important because it tends to increase the efficiency of customer value (Malik, as cited in Butt, Ng, Khong & Ong, 2013) So the intention of the consumer when purchasing green products or services can be enhanced when there was a favorable development of a perceived value for green products (Chen & Chang 2012a, b)

Since the green home appliances products with environmentally friendly features, it was brought a higher brand perceived value than normal home appliances products, this feature was extremely important for companies, requirement companies must introduce and distribute the green home appliances products in the best way to create meaning for green consumption intention (Ottman et al., as cited in Butt, Ng, Khong & Ong, 2013)

Seen from another perspective, the green brand perceived value with environmentally friendly features that created consumer preferences and thereby affect intend to buy green

products (Hartmann & Apaolaza - Ibanez, as cited in Butt, Ng, Khong & Ong, 2013) According to Fornell, Johnson, Anderson, Cha and Bryant (1996) has shown that consumers was affected by perceived value when they buy products

Zeithaml (1988) proposed three indexes the possibility that consumers purchased the products, whether they consider buying the product, and whether they recommend the product

to their relatives and friends, this is element to measuring Green consumption intention Research has shown the purpose to measuring Green consumption intention, including purchase possibility, purchase price and purchase intention (Grewal et al., 1998) Thus, the intention of green consumption depends on their green brand perceived value to a product, so have shown a positive association between perceived value and consumer intentions

Kaufman (1998) suggested that perceived value can be used to detect wishes, needs and values of customer through exchange for goods or services when making purchase intention Perceived value is subjective perception of consumers; it is related to reactions, emotions, experience and influence to consumer behavior (Dumana & Mattilab, 2005)

This studies has found that the green brand perceived value is associated with positive green consumption intention (Rizwan et al., 2013) Due to the high perceived value of green products should behavioral intentions of consumers shopping were also encouraged Thus, high green brand perceived value increased purchase intention of consumers for green products (Bellizzi, 1981)

For example, through this green product, consumers are aware of the functions and activities of the environment has brought them many benefits such as health and safety, environmental friendliness, offering good value, different for them and meet their expectations So, when they were aware of the value of green products, then they has intended

to buy green products with the brands so they loved Therefore, this study is proposed that customer’s green brand perceived value is positively influence to Green consumption intention This leads us to propose the following thirth hypotheses:

H3: Green Brand Perceive Value is positively associated with Green consumption intention

And research today, green trust is positive effect with green consumption intention The marketing documents showed that trust was seen as a strategic action in the field of marketing and an essential ingredient in the success of the relationship (Moorman et al., 1993) Moreover, social exchange theory showed that the trust of customers increased social cohesion

in the relationship between customers and businesses (Singh & Sirdeshmukh, 2000) Therefore, green trust is one of the topics that has attracted great attention in the scientific community In addition, current research has shown that green trust with the environmentally friendly products, provided more benefits than normal products (Hartmann & Apaolaza - Ibanez, as cited in Butt, Ng, Khong & Ong, 2013)

The trust of green products was based on consumer’s confidence and they believed that green products were consistent, honest, and responsible (Doney & Cannon, 1997) Therefore, Green trust affected their intention to purchase green product (Gefen & Straub, as cited in Kang & Hur, 2011) However, some companies had advertised their new products but created misunderstandings, confusion about advocacy green products, environmental inflated value of these products, leading to offending customer’s trust and the customers were no longer believed and supported for that product anymore (Kalafatis et al., as cited in Huang, Yang & Wang, 2013) Therefore, to create consumer’s trust in green products and desire the customer has intentied to buy green products, requirement the green products must be evaluated positively and effectively

Trust affected attitudes and attitude was the most directly influence on behavioral intentions (Fishbein & Ajzen, 1975) So, this was the relationship between trust and intention Trust was positively influence intention to buy product (Singhapakdi et al., 2000) Thus, the link between consumer’s green trust and consumer’s green intentions were obvious It was said that, the consumers with high trust was more ability to buy green products than low trust

For example, the manufacturers always put quality criteria of top products as reliable, is not damaged during use, nice design, environmentally safe to build customer’s trust when they has intended to buy green product The aim of the manufacturer is to make customers when they has intent to buy a green product, they are always think about the quality of such products based on their trust So, from the concepts and the studies have shown the relationship between green trust and green consumption intention in the environmental context, this study proposed the following forth hypothesis:

H4: Green trust is positively associated with Green consumption intention

In addition, previous studies showed that consumers with Moderating Variable such as gender, age, income and education were affected the purchasing behavior of consumers (Keillor et al., 2001) So, this study examined the impact of four Moderating Variable: gender, income, education, age to relationship between attitude toward green brand, green satisfaction, green brand perceived value, green trust and green consumption intention

Income (IL) Consumers with high incomes demonstrated their behavior more environmentally proactive than low income (Henion, 1972), so since consumers have higher income, they can afford to pay the cost of green products Therefore, the affects of income groups on the relationship between consumers behavior factors with green consumption intention are tested in this study

Education Level (EL) Some studies suggested that the level of consumer education groups were directly correlated to environmental factors (Granzin & Olsen, 1991), then consumers were high awareness about the enviromental impact Therefore, the affects of education groups on the relationship between consumers behavior factors with green consumption intention are tested in this study

Age (A) The researchers said that age had a positive correlation to the consumer behavior of the environment (Samdahl & Robertson, 1989) However, some other studies suggested that there were no correlation between age and environmental behavior (Kinnear et

al., 1974) Therefore, the affects of age groups to the relationship between consumer behavior factors with green consumption intention are tested in this study

Gender (G) Skills and roles of each gender groups had led some researchers suggested that women were more ability to behavior and environmental initiative (Finisterra et al., 2009) Therefore, the affects of gender groups to the relationship between consumer behavior factors with green consumption intention are tested in this study

Family Status (FS) Besides, this study towards to family because green products for this study are the green home appliances products, so the Moderating Variable of family status groups are also tested for the relationship between consumer behavior factors with green consumption intention

In summary, Moderating Variable affected the purchasing intention (Fishbein & Ajzen, 1975) So, this is proposed for fiveth hypothesis:

H5: Effects of Moderating Variable on relationship between Attitude toward green brand, Green satisfaction, Green brand Perceived Value, Green trust and Green consumption intention

2.4 Research model

Based on the reaction of consumers in the marketing activities as a attitudes towards green brand, green satisfaction, green brand perceived value, green trust to building green consumption intention The researchers suggested testing positive relationship between the dependent variable of green consumption intention with four independent variables of attitude toward green brand, green satisfaction, green brand perceived value, green trust The researchers are also highlight and argued the affects of four independent variables to

dependent variable

The researchers has found that the demographic of consumers, such as income, education, age, gender and family status groups are also influence the relationship between

attitude toward the green brand, green satisfaction, green brand perceived value, green trust and green consumption intention Therefore, the research model is proposed as follows:

Figure 3 is recommended for a detailed description of each variable So, all hypotheses in the proposed research model are stated as follow:

H1: There is a positive relationship between Attitude toward green brand and Green consumption intention

H2: There is a positive relationship between Green Satisfaction and Green consumption intention

H3: There is a positive relationship between Green Brand Perceived Value and Green consumption intention

H4: There is a positive relationship between Green Trust and Green consumption intention

H5: Effects of Moderating Variable on relationship between Attitude toward green brand, Green satisfaction, Green Brand Perceived Value, Green trust and Green consumption intention

H5 H2

Green Brand

Perceived Value Moderating Variable:

Income, Education, Age, Gender and Family Status

Figure 3: Proposed research model

2.5 Summary

After review some of factors affect green consumption intention in previous studies, this study has also used behavioral factors in Kang and Hur (2011)’s research, other researchers such as Huang, Yang and Wang (2013) and the research of Butt, Ng, Khong and Ong (2013) to study the main behavioral factors affecting green consumption intention such as Attitude toward green brand, Green satisfaction, Green brand perceived value, Green trust and study about the effects of demographic groups on relationship between Attitude toward green brand, Green satisfaction, Green Brand Perceived Value, Green trust and Green consumption intention

CHAPTER 3: RESEARCH METHODOLOGY

This chapter shows the research methods used in this study as well as the approaches used to collect and analyze the data These methods aim to test both the scales measurement This chapter includes three parts: (1) Research design: Research method, Research process, Sample size, (2) Measurements scales of the constructs, (3) Factor analysis – EFA

3.1 Research design

3.1.1 Research process

This study used two research methods The first phase, qualitative research identified the models, factors, suitable measurement variables for research in Ho Chi Minh market Through the previous relevant researches, the questionnaire was built then running the pilot test for checking the efficiency and the meaning of the questions The pilot survey was purposed to explore and define the relevant items and building a completed questionnaire The second phase, quantitative survey was the main approached of this study The aim is to identify the factors affecting the green consumption intention Research process includes the steps as illustrated in Figure 4

Figure 4: Research process

Define reseach problem Literature review Research model

Measurement scales

The draft of questionnaire Pilot survey

The final questionnaire

Quantitative research

Assessment of measurement (Cronbach alpha EFA)

Testing of hypotheses (Standard multiple regression) Discussion recommendation

and conclusion

3.1.2 Research method

The research method involves pilot study and official research The 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 for using quantitative methods The study used questionnaires to survey agreement of 233 customers in Electronics supermarket and 67 customers in new apartment that have intention to buy the home appliances products Based

on there, the paper has also checked the number of customers who have green consumption intention for green home appliances products in total 300 customers

3.1.3 Pilot study

The scales of the previous researches were conducted in different culture, the level of economic development and selected respondents was also different Therefore, a pilot study was needed The purpose was gathered information and adjusted variables in these scales The wording Vietnamese language for these scales is also done to this study So, the respondents can understood easily the questions and didn’t confusion The pilot survey is conducted in Ho Chi Minh City and draft questionnaires which be translated to Vietnamese language were sent

20 customers in Electronics supermarkets The results for feedback of customers in the pilot survey were after three days Some small changes on the questionnaire by Vietnamese language to help respondents were better understood Specific, the questionnaire was changed

by the italics font of Current revised Items in table 1 Besides, this study has added in scales of green consumption intention variables is the question number 25, it has shown detail in table 1 with the code of variables is GCI 25, the purpose is increasing the exactly of the survey results when running and analysis survey figures So, measurements scales of the constructs with orginal items, revised items and added itemsin table 1of pilot study as below:

Table 1: Scales

I think the funtion of the brand X is

more reliable than other product ATGB

My friend would have supported me when they discovered I purchased this brand X

I'm happy about the decision to choose this brand X because of its environmental commitments

GS 10

You believe that it is a right thing to purchase this brand because of its environmental performance

I believe that it is a right thing to

purchase this brand X because of its

environmental performance

GS 11 Overall, you are glad to buy this brand

because it is environmental friendly

I'm happy to buy this brand X because it is environmental friendly

GS 12

Overall, you are satisfied with this brand because of its environmental concern

I’m satisfied with this brand X because

of its environmental concern

16

I purchase this brand because it has more environmental benefit than other products

I purchase this brand X because it has

more environmental benefit than other products

Green trust

(Chen, 2009) GT 17

You feel that this brand’s environmental commitments are generally reliable

I feel that this brand X’s

environmental commitments are generally reliable

GT 18

You feel that this brand’s environmental performance is generally dependable

I feel that this brand X’s

environmental performance is generally dependable

GT 19

You feel that this brand’s environmental argument is generally trustworthy

I feel that this brand X’s

environmental argument is generally trustworthy

GT 20 This brand’s environmental concern

meets your expectations

This brand X’s environmental concern

meets my expectations

GT 21

This brand keeps promises and commitments for environmental protection

This brand X keeps promises and

commitments for environmental protection

I would definitely intend to buy those

products of brand X that are

environmental friendly

GCI 23

I would absolutely consider buying those products that are environmental friendly

I would absolutely consider buying

those products of brand X that are

environmental friendly GCI 24

I would absolutely plan to buy those products that are environmental friendly

I would absolutely plan to buy those

products X that are environmental

friendly

GCI 25

I have just only choice to buy the products that are environmental friendly

I have just only choice to buy the

products X that are environmental

friendly The original survey was conducted with total 300 customers in Electronics supermarkets and new apartment After deleted 33 customers that don’t have green consumption intention, the paper tested scales measurement reliability and validity by factor analysis – EFA with (N=267) Finally, the paper used SPSS software for regression to test assumption

3.1.4 Sampling

To empirically test five hypotheses, a survey with the question be made and distributed

to consumers wishing and has intention to purchase green home appliances products in the Electronics Supermarket or in the new apartment areas where consumers has intention to purchase green home appliances devices for their home

Four Electronics supermarkets and One New Apartment selected are the Nguyen Kim (NK), Thien Hoa (TH), Cho Lon (CL), Dien May Thu Duc (DMTD) and SunView Town Apartment (SVT) 233 individuals from four area in Electronics Supermarket and 67

individuals in New Apartment are selected to interview The potential respondents answered the screening questions Screening questions are ensured that the potential respondents buy green home appliances products in the future

The researchers used the five-point Likert scale for almost all questions The questionnaire was distributed on a sample of 20 the respondents as a small pilot study to test their understanding, then some questions were modified to make the language easier to understand Samples were selected for the study that 300 samples, the questionnaires were sent to 233 private customers in each Electronics supermarkets and 67 customers in new apartment to receive their responses relating to the research After removed 33 samples that don’t have green consumption intention The rest samples for this study are 267 samples Next is to represent different values of the conceptual model that has been tested through

on available questionnaire in appendix 1 It includes a summary description of the dependent variable and operating independent variables This study was descriptive, reasoning, applied research could be used to propose solutions about green consumption intention

This study is a quantitative model, because it used quantitative data with a large sample size in population, and involves testing hypotheses in its application It is a cross-sectional study such as the data were collected for using a structured questionnaire to measure the factors that affect the green home appliances productsfrom the perspective of consumers The researchers conducted a survey to collect data using a structured questionnaire, most of the questions in the questionnaire have been passed from Patrick et al (2005), Oliver (1996), Chen (2009), Chen and Chang (2012a, b), Chan (2001), but the research has also some questions to resolve additional variables and modify the questions to fit the objectives of the study and respondents goals The green home appliances products in this studysuch as TVs Sony, Daikin air-conditioning, electric cooker Happy cook,

According to Hatcher (1994), he recommends that the minimum sample size in factor analysis (EFA) is that the number of subjects should be the larger of 5 times the number of

variables, may be 100 or greater (N= 5x items) The paper has 25 questions, and therefore it needs: N= 5 x 25 = 125 Additionally, Tabachnick and Fidell (2007) mentions the rules regarding the sample size of regression analysis, the sample N=50+15*k, k is the number of independent variables There are 4 independent variables in this study, N=50 + 15*4 = 110 The sample for this study must over 125, then it was satisfied and accepted two condition above The real sample in this study is 267 As a result, it is met for this requirement

3.2 Questionnaire design

3.2.1 Measurements scales of the constructs

The measurement scales of the questionnaire items was by use of ‘‘five-point Likert scale from 1 to 5’’ (1 = “strongly disagree”, 2 = “disagree”, 3 = “neutral”, 4 = “agree”, 5 =

“strongly agree”) This study proposes five constructs Attitude toward green brand, green satisfaction, green brand perceived value, green trust and Green consumption intention

The measurement scales of Attitude toward green brand in this study includes eight items which modified from the research of Patrick et al (2005), green satisfaction were adapted from Oliver (1996) and Chen (2009) included four items, green brand perceived value was adapted from Chen and Chang (2012a, b) in this study included four items, green trust was adapted from Chen (2009) included five items and Green consumption intention included three items was adapted from Chan (2001) to study the purchasing intention of behavior consumers to engage in using green home appliances products The details for measurements scales of the constructs has presented in table 1 above

3.2.2 Draft questionnaire

The questionnaire using a five-point Likert scale was employed to collect the data on the factors of the research model Items measuring for the factors were mostly adapted from previous studies in order to ensure content validity Items of measuring attitude toward green brand, green satisfaction, green brand perceived value, green trust and green consumption

intention was done from previous research (it is shown in 3.2.1 Measurement scales of the

contructs)

The questionnaires consist of two main parts:

Part 1: Collect general information to get information about the respondents who have intention to buy green home appliances This information helps select the target respondent to study

Part 2: The main information includes statements (questions) are based on a scale of measurement was proposed for the research The items were measured on the Likert 5 - point scale from 1 to 5 (1 = “strongly disagree”, 2 = “disagree”, 3 = “neutral”, 4 = “agree”, 5 =

“strongly agree”)

The survey questions were translated from English to Vietnamese by the researcher and edited by other After revised and added some contents in draft questionnaire, the paper designed perfect questionnaires to interview 300 customers in official research The detail for perfect questionnaires by English and Vietnamese has shown in appendix 1 and appendix 2

3.3 Measurement scales testing

3.3.1 Test of scales measurement reliability

Cronbach’s Alpha Test is applied to test reliability of scales measurement with 5-point Likert measurements It also presents the consistency of a specific sample of participant’s response through questions or items Additionally, it can assist to predict the reliability of respondents to the measurements (Helms, Henze, Sass & Mifsud, 2006, p.633) Cronbach’s alpha is usually applied for behavioral researches as an indicator of reliability (Liu, Wu & Zumbo, 2010, p.5)

As a result, the Cronbach’s alpha is completely suitable for this research because the questionnaire includes 5-point Likert measurements and the paper is related to behavioral consumers This paper employs Cronbach’s alpha to test of scales measurement reliability

including the factors that are built after the factor analysis Nunnally (1978) proposed that Cronbach’s alpha should be at least 0.7 to make sure that the measurements are reliabled However, many statisticians believed that it could be acceptable if the Cronbach’s alpha was over 0.6 (Shelby, 2011, p.143) Besides, statisticians also recommend that it is important to consider the corrected item-total correlations when using the Cronbach’s alpha index The corrected item-total correlations, which reflect the correlation of items designated with the total score for all other items, should be at the acceptable score of 0.3 or higher (Shelby, 2011, p.143)

Therefore, this research selects the acceptable Cronbach’s alpha is 0.7 – 0.8, with the corrected item-total correlation index is 0.3 or over 0.3 because the measurements of green consumption intention behaviors are the new customers of the Ho Chi Minh market Moreover, the accepted significant level of the F-test in Cronbach’s alpha technique is not

more than 0.05 The Cronbach’s alpha test is finished by SPSS software

3.3.2 Exploration factor analysis (EFA)

In this study, EFA is used to explore the factors that the variables on Green consumption intention of the questionnaire (question 22 to question 25) are belong to EFA is used to reduce the number of items in the questionnaire that do not meet the criteria of the analysis (O’brien, 2007, p.142) In this case, EFA is utilized to test the hypotheses shown in the research model of Chapter 2

In this research, the following criteria of the exploratory factor analysis are applied Factor loadings, KMO, Total variance explained, and Eigenvalue Factor loadings are defined

as correlations of each item with the factor that it belongs to Factor loadings of the items on a factor are greater than 0.5 (with the sample size is 100) ensure that EFA has a practical significance to the analyzed data (Hair et al., 1998)

The Kaiser-Meyer Olkin Measure of Sampling Adequacy (KMO) presents the level of suitability of using EFA for the collected data The KMO should be between 0.5 and 1.0

(significant level less than 0.005) to make sure that factor analysis is suitable for the data (Ali, Zairi & Mahat, 2006, p.16) Total variance explained is used to identify the number of retained factors in which factors can be retained until the last factor represents a small proportion of the explained variance The total variance explained is suggested to be more than 50% (Hair et al.,

1998, p.111) Eigen-value is an attribute of factors, being defined as the amount of variance in all items (variables) explained by a given factor Eigen-value should be greater than 1 because Eigen value is less than 1 means that information explained by the factor is less than by a single item (Leech, Barrett & Morgan, 2005, p.82) The EFA is done by SPSS software

3.4 Hypothesis testing

3.4.1 Pearson Correlations

Because this research used a relatively large set of variables and EFA of independent and dependent variable were separated to run, therefore this research need to test the correlation between the dependent variable and each independent variable to assure that they really had the correlation In that case, the separated EFA result was acceptable and meaningful According to Pallant (2011), Pearson correlation coefficients (r) can only take on values from -1 to +1 and should less than 7

3.4.2 Multiple regression

According to Leech, Barrett and Morgan (2005), regression analysis is a statistical tool for the consumption intention of relationships between variables To explore such issues, the author collected data of variables and employed regression to estimate independent variables affects dependent variables Researchers used adjusted R2 - lower than unadjusted R2 to indicate that how many percentages of the variance can be predicted from the independent variable And adjustment is affected by the magnitude and the sample size Besides that, the author also uses F -test to test significance of model Hypotheses of H0 and H1 are presented

as follows:

H0: ß1 = ß2 = … = ßk = 0 (no linear relationship)

H1: at least one ßi ≠ 0 (at least one independent variable affects Y)

If p-value <0.05, reject H0 and accept H1 and it conclude that the research model is suitable

Additionally, the author mentioned the standardized beta coefficient, which is interpreted similarly to correlation coefficient or factor weights If t value < 0.05, Beta is significant and Beta is used to assess level of impact of independent variables to dependent variables are positive or negative Moreover, the author paid attention to Collinearity statistics – VIF and Tolerance Tolerance = 1/VIF that tells us if there is probably a problem with multicollinearity If the Collinearity statistics – VIF is smaller 2, then this survey result is not problem with multicollinearity

3.5 Summarry

After collected data was be finished and removed the invalid questionnaires Then, this study using software SPSS (Statistical Package for Social Sciences) to analyze the data Collected data was analyzed and interpreted in a series of stage First, the demographic profile

of respondents was summarized and analyzed Second, the reliability of the items used in measuring the constructs was validated using Cronbach‘s alpha Third, the correlation of the independent variables and the dependent variable was ascertained through Pattern Matrixa rotation method At last, standard multiple regression analysis was used to establish the statistical significance of the model and the predictive power of each independent variables in explaining the dependent variable (Green consumption intention)

CHAPTER 4: DATA ANALYSIS AND RESULTS

In this chapter, data background is first discussed with an overview of the measurement reliability based on the pilot study and main study to confirm the impact levels of behavioral factors to green consumption intention as well as correlations among behavioral factors and green consumption intention that identified by structural equation modeling are presented and analyzed Through data analysis, the hypotheses shown in Chapter 2 are tested

4.1 Sample characteristics

In this study, there are 300 customers who have intented to buy home appliances products were choice to interview, after collected data, the paper deleted 33 customers who don’t have green consumption intention, the rest is 267 customers who have intented to buy green home appliances products with regards to groups of gender, age, education, income, family status There are sixth result of sample characteristics for these groups

First, the gender groups include 135 female (50.6 percent) and 132 male (49.4 percent) Second, the age groups have 131 customers from 26-35 (49.1 percent) and 136 customers from 36-45 (50.9 percent) Third, the education groups have total of customers under Bachelor and from Bachelor to Master are 125 (47 percent) and 142 (53 percent) Fouth, the income groups have total of customers low income and high income are 79 (30 percent) and 188 (70 percent) Fiveth, family status groups include 137 Singe (51.3 percent) and total of Married are 130 (48.7 percent) Sixth, the number of green home appliances products which customers choice include 43 customers choice Refrigerator (16.1 percent), 74 customers choice Television (27.7 percent), 74 customers choice Washing machine (27.7 percent), 65 customers choice Air condition (24.3 percent) and 11 customers choice Microwave (4.1 percent)

Table 2 gives a detailed description of the demographic characteristics for the respondents with regards to gender, age, education, income, family status and the number of green home appliances products which customers choice