Factors Affecting Green Purchase Decision of Consumers. A Study on Energy Saving Light Users of Barishal City

Table of Contents

CHAPTER 1: BACKGROUND OF THE STUDY
1.1 Introduction
1.2 Literature Review
1.3 Research Gap
1.4 Significance of the Study
1.5 Research Objectives and Hypotheses Development
1.6 Conceptual Framework

CHAPTER 2: METHODOLOGY OF THE STUDY
2.1 Research Methodology
2.1.1 Research design
2.1.2 Sampling design
2.2 Questionnaire design
2.3 Data Analysis

CHAPTER 3: ANALYSIS
3.1 Results and Discussions
3.1.1 Data Collection
3.1.2 Testing Reliability and Validity of the Constructs
3.1.3 Testing the Measurement Model: Goodness of Fit Statistics
3.1.4 Structural model: Goodness of Fit Statistics and Hypothesis Testing

CHAPTER 4: DISCUSSIONS AND RECOMMENDATIONS
4.1 Discussions and Recommendations

CHAPTER 5: CONCLUSION AND LIMITATIONS
5.1 Conclusion
5.2 Limitation and Scope for Further Research
5.3 Funding of the Study

References

APPENDICES

Abstract

Climate changes and associated impacts make people think about changing their traditional consumption patterns and go for purchasing green products to make this earth livable for the future generation. The study aimed at verifying the factors determining green purchase decision of energy saving light users of Barishal city. A total of 200 (two hundred) respondents participated in the study who are only from Barishal city and use energy-saving lights. In this study, the author employed judgmental sampling technique to collect responses from the participants through a self-administered questionnaire. Structural equation modeling was employed to analyze the empirical data and test the proposed hypotheses of the study via AMOS 23. The findings of the study revealed that perceived benefits (.41) have the most significant effect towards green purchase decision of energy saving light users in Barishal city. Marketing factors (.18) and environmental knowledge (.15) have also significant effect towards green purchase decision of energy saving light users. In this study, peer groups are considered as insignificant determinants for the consumers of energy saving lights. Marketing factors (.21) have a significant effect on environmental knowledge which is the mediating variable in the study. This paper will help marketers formulate effective strategies based on these results to reach target markets and contribute to the sustainable environment.

Key Words: Climate Change, Green Purchase Decision, Judgmental Sampling, Structural Equation Modeling, Sustainable Environment

Acknowledgment

I would like to express my sincere gratitude to my supervisor Md. Imran Hossain, Assistant Professor, Department of Marketing for his continuous guidance and suggestion throughout the research.

My utmost gratitude to Mr. Wahidur Rahman, Assistant Professor, Department of Marketing and Fatema-Tuz-Zohora, Assistant Professor, Department of Marketing, without their continuous support this study would not have been possible. I would also like to thank my classmates of 1st batch and students of junior batches for helping to carry out my research.

Lastly, I would like to express my sincere appreciation to my parents for encouraging and supporting me throughout the study.

List of Abbreviations

Abbildung in dieser Leseprobe nicht enthalten

List of Tables

Table 1: Demographic Characteristics of the Respondents

Table 2: Descriptive Statistics

Table 3: The results of the measurement model

Table 4: Discriminant Validity

Table 5: CIMN

Table 6: Baseline comparisons

Table 7: The Goodness-of-fit Index (GFI) & Adjusted Goodness-of-fit Index (AGFI)

Table 8: Root Mean Square Error of Approximation (RMSEA)

Table 9: CIMN

Table 10: Baseline comparisons

Table 11: RMR & GFI

Table 12: RMSEA

Table 13: The results of hypothesis testing

List of Figures

Figure 1: Author's own interpretation of the conceptual framework

Figure 2: The factor loading of the measurement model with Standardized estimates

Figure 3: The Regression Weights for Every Path in the Model

APPENDICES

Appendix A: A Summary of Literatures Reviewed

Appendix B: Questionnaire

CHAPTER 1:

BACKGROUND OF THE STUDY

1.1 Introduction

The word “green” is now the buzzword of the modern era of technology. It is known to all the more industrial development leads the more consumption of energy. This situation forces to live in such a world full of environmental pollution, climate change, depletion of natural resources, damaging to the ozone layer, and loss of agricultural land. For this reason, the preference for energy saving technologies and reduction and limit to use energy are growing rapidly. Consumers will favor eco-friendly products and services for sustainable development.

In the recent times, a large number of consumers have realized that their behavior regarding identifying, choosing and purchasing products has a significant influence on the environment. They are diverting their behavior in choosing environmentally friendly products rather than other products (Laroche, Bergeron, & Barbaro-Forleo, 2001). According to Chekima, Khalid Wafa, Igau, and Chekima (2015), environmental degradation has become one of the major concerning issues for all parties involving individuals, governments, and business organizations. Statistics show that 30 to 40 percent of environmental deterioration is occurred because of unplanned and unhealthy consumption pattern of the consumers. Hence, we need a sustainable eco-friendly consumption pattern.

Today's marketers are taking themselves as far as to develop green advertising and green marketing strategies to promote green products and services. Nowadays, eco-conscious is regarded as an environmental competition which profoundly affects the consumer behavior. For this reason, marketers need to develop their products and services with proper visionary to meet requirements of savvy consumers (D’Souza, Taghian, Lamb, & Peretiatkos, 2006).

With the aim of unfolding the effects of the key determinants affecting the green purchase decision of consumers in energy saving lights based on Barishal city, this research is motivated by previous studies (Hafez, 2017; Khorasanizadeh, Parkkinen, Parthiban, & Moore, 2015 ; Khan & Abas, 2011) that claim friends and relatives, salespersons, celebrity, price, perceived benefits, availability, promotional tools, and credibility affect the green purchase decision of consumers. The researcher identified and mentioned these relevant factors that really affect the purchase decision of consumers in energy saving lights.

1.2 Literature Review

1.2.1 Green Consumer

Generally, a consumer can be defined with their purchasing and consumption pattern (Ioan, C., A., Luca, F., A., Sasu, 2014). But a green consumer is different from grey consumers. Green consumers are really concerned about the welfare of the human beings, environment, and society. Green consumers always consider the environmental value of the products. They don't buy those products and services that are harmful to ecology. For this reason, they play environmentally-friendly behavior, and willing to purchase eco-friendly products (Boztepe, 2012). The green consumers are fond of purchasing energy saving light than traditional lights. They believe that using energy saving lights might contribute to the conservation of the environment.

1.2.2 Green Product

A green or eco-friendly product can be defined as an item that is produced in a way that is environmentally mindful, has less effect on the ecology, product or product packaging is made of recycled resources, conserves natural resources and is produced in a locality (Diglel & Yazdanifard, 2014). According to the findings of several pieces of research, consumers demand eco-friendly products (Campher, 2013; Manget, J., Roche, C., & Münnich, 2009) found that consumers seek and value green products that offer safety, freshness, and savings. Ottoman, J., and Mallen (2014) indicate that consumers try to find green products that are healthy, organic, and standard and help to conserve the natural species and ecology.

1.2.3 Environmental Knowledge

Consumers purchase decision of energy saving lights is significantly affected by the level of environmental knowledge. Conraud-Koellner and Arturo Rivas-Tovar (2009) defined environmental knowledge as the sets of ecological knowledge that individuals have of environmental topics.

Most of the people don’t know much about ecological problems. They have very poor knowledge about ecological and environmental issues. That’s why they don’t know properly how to act in environmentally responsible (Kempton, W., Boster, J.S. & Hartley, 1995). We can define environmental knowledge as a set of concepts, philosophies, facts, and interconnected relationships that focus on the environment and ecological aspects ((Fryxell & Lo, 2003). In another way, environmental knowledge can be defined as the thoughts, opinions, relationships that people know and possess regarding the environment and act in collective duties that are required to obtain sustainable development.

Environmental knowledge is affected by several criteria that involve ecological ethnocentrism, a degree of assessing information, past purchasing behavior and perceptions about green products. On the other hand, Chan, R., and Lau (2000) defined environmental knowledge as the amount of knowledge a person has regarding environmental issues. Thus, consumers are increasingly motivated and interested in the environmental protection, as well as socially responsible behavior (Sawant, 2015). According to Rokicka (2002), a significant level of environmental awareness generates a high level of eco-friendly behavior. Consumers seem it easy to change their traditional thoughts regarding the environment. Environmental knowledge plays a vital role to create inertia among consumers to buy green products (Mostafa, 2009).

Previous researchers found this environmental knowledge can be classified as general or specific (Polonsky, Vocino, Grau, Garma, & Ferdous, 2012). Some studies found that several researchers mentioned environmental knowledge as specific knowledge (Brosdahl & Carpenter, 2010) on the other hand, others found environmental knowledge as general knowledge (Laroche, Bergeron, & Barbaro‐Forleo, 2001; Mostafa, 2007). But some researchers stated that environmental knowledge is both specific knowledge and general knowledge (Fryxell & Lo, 2003).

Nelson Barber, Taylor, and Strick (2009) found that there is a strong relationship between environmental knowledge and pro-environmental behavior of consumers. This pro-environmental behavior significantly influences the green purchasing behavior of consumers.

1.2.4 Peer Groups

Consumers have to belong to a society. Thus, the surrounded people like kith and keen, colleagues, salespeople, and celebrity often influence consumer purchase decision (Maram, H. K., & Kongsompong, 2007). These parties can play the influential role towards consumers in choosing eco-friendly products and services. Because the usage satisfaction of relatives and colleagues motivate to go on changing purchase decision. This peer influence can be defined as attitudes, actions and believes of individuals are affected by the other people called peer group peers (Makgosa, R. & Mohube, 2007). Consumers’ purchase decision of most of the products is influenced by peer groups (Ahmad, N., Yousif, M., Shabeer, K., & Imran, 2014).

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