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Green Buying Behavior in India: An Empirical Analysis: Richa Chaudhary
Green Buying Behavior in India: An Empirical Analysis: Richa Chaudhary
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Green buying
Green buying behavior in India: an behavior
empirical analysis
Richa Chaudhary
Department of Humanities and Social Sciences,
Indian Institute of Technology Patna, Patna, India 179
Received 1 December 2017
Revised 2 February 2018
Abstract Accepted 27 March 2018
Purpose – Using insights from theory of planned behavior (TPB), this study aims to examine the
determinants and their relative importance in predicting green buying behavior among young educated
consumers in India.
Design/methodology/approach – Data are collected from 202 young Indian consumers using online
questionnaire survey. Confirmatory factor analysis is used to ensure the reliability and validity of study
measures in the present context. Structural equation modeling is used to test the proposed research model.
Findings – Findings confirm perceived value and willingness to pay premium as significant predictors of
the green purchase intention. In turn, green purchase intention significantly influenced green buying
behavior.
Practical implications – This study by advancing the understanding on the factors influencing green
product purchase intention and behavior among Indian youths will help the policymakers to design policies
and programs to encourage the adoption of green purchase behaviors, which in turn will help in addressing
the problem of environmental sustainability, which the whole world is struggling with.
Originality/value – This study validates the importance of TPB framework in comprehending consumer
green product purchase intention and behavior in a culturally different context of India. Thus, this study
contributes to the green marketing literature by examining the unique combination of variables in predicting
green buying behavior in an integrated framework. It also extends the TPB by demonstrating the importance
of additional constructs, perceived value and willingness to pay in predicting green purchase intention and
behavior among young millennials in India.
Keywords Perceived value, Environmental concern, Green purchase intention,
Green buying behavior, Willingness to pay premium
Paper type Research paper
Introduction
Excessive pollution has choked the Indian cities and has made air pollution a natural
emergency (Jain, 2016). Pollution kills more than 1.2 million people every year and has been
found to be fifth principal cause of deaths in India (Times of India, 2017). India is among the
most polluted countries and around 30 Indian cities figure in the top 100 most polluted
global cities across the word (WHO, 2016). Going green has been suggested as one of the
solutions to deal with this ecological crisis. As a result, every individual is recognizing the
need to contribute toward decreasing his/her ecological foot prints. Consumers are no
different and have come forward to participate in this revolution toward sustainable
development by adopting green consumption. Green consumption, which refers to the
adoption of eco-friendly products (Kim et al., 2013), is on the rise as it provide the opportunity
Journal of Global Responsibility
Vol. 9 No. 2, 2018
The author would like to thank Samrat Bisai and Chinmay Panda, Research Scholars, Department of pp. 179-192
Humanities and Social Sciences, Indian Institute of Technology Patna, for their assistance in data © Emerald Publishing Limited
2041-2568
collection. DOI 10.1108/JGR-12-2017-0058
JGR to preserve and protect the degrading quality of natural environment and contribute to
9,2 environment sustainability (Leonidou et al., 2013).
Green consumption has emerged as an opportunity for the marketers, leading to green/
sustainable marketing on their part to meet the changing consumer product needs and
preferences. Companies are designing and coming up with more and more eco-friendly
products to capitalize on this trend of green consumerism. Consequently, it becomes
180 important for the marketers to understand the factors that influence the adoption of green
products among the consumers. This research presents a framework to analyze the factors
influencing green purchase intentions and behaviors of young consumers in India. Young
millennials differ from general population with regard to their high environmental
consciousness (Sheahan, 2005) and stronger preferences (Smith, 2010) and willingness to
buy environment-friendly products (Rogers, 2013). This segment becomes important for the
marketers, as India has world’s largest population of millennials (400 million) constituting
one-third of its workforce (Mogan Stanely, 2017).
Building on the framework of the theory of planned behavior (TPB), this research
presents an integrated model to explore the impact of environmental concern, personal
norms, perceived value and willingness to pay on purchase intentions and behaviors toward
green products. This study contributes to the literature by advancing the understanding of
the factors determining the green buying behavior of young consumers in the context of a
developing country. This will assist the marketers in planning, strategizing and channeling
their green marketing efforts in the right direction.
Personal norms
Personal norm refers to individuals’ moral standards and obligations to engage in the
concerned behavior (Moser, 2015). Jansson (2011) in a study among Swedish consumers
reported that adoption of environment friendly innovations was determined by
environmental values and norms. Thogersen (2007) showed that personal values play a
significant role in determining environment friendly behavior of Danish consumers.
Prakash and Pathak (2017) also reported significant relation between personal norms and
purchase intention toward products with eco-friendly packaging. In contrast, Khare (2015)
failed to show any significant relationship between personal norms and green buying
behavior among young consumers from metropolitan cities in India.
Perceived value
Perceived value is consumers’ opinion about worth of a product or service based on
evaluation of its utility (Chen and Chang, 2012). It determines the price consumers are
willing to pay for the products. Perceived value has been identified in the literature to play a
significant role in consumers’ decision-making process (Dodds et al., 1991) and determining
their purchase intentions and behaviors (Yadav and Pathak, 2017; Zhuang et al., 2010; Chen
and Chang, 2012; Chiu et al., 2014). For example, Yadav and Pathak (2017) demonstrated
significant relation between perceived value and green behavioral intention. Similarly,
perceived value was found to relate to environmentally responsible behavior in a study by
Chiu et al. (2014) in ecotourism industry. Cheung et al. (2015) also reported green perceived
value as an important driver of green product adoption.
Purchase intention
Intentions capture the motivations to perform a behavior such as the willingness to perform
and the intensity of effort an individual is ready to exert. According to TPB, performance of
a behavior is the function of intentions when the behavior is under volitional control (Ajzen,
1991). Studies have reported positive relation between purchase intention and behavior
(Chan, 2001; Chan and Yam, 1995). In the context of green products, Yadav and Pathak
(2017) in a study among consumers in India found support for the positive association
between behavioral intentions and green buying behavior.
Based on the above arguments, we propose the following hypotheses:
H1. Environmental concern relates positively to green purchase intention.
Research methodology
The data were collected from students of an institute of higher education in India through
online questionnaire survey. The questionnaire was sent to the students using institute
group email ids in the month of March 2017. Two weeks later, a reminder email was sent as
a follow-up. The effective sample consisted of 202 responses after removing extreme
outliers. Majority of the respondents were male (89 per cent) with female constituting only
11 per cent of the sample. With regard to age, 69 per cent of the respondents belonged to
15-25 years age group, 26 per cent were in the age bracket of 26-30 and the rest were above
30 years of age. As to education, 44 per cent of the respondents were pursuing B.Tech,
21 per cent were enrolled in master’s (science and technology) program, whereas 35 per cent
were doing PhD.
Green buying
behavior
183
Figure 1.
Hypothesized
research model
Measures
Environmental concern was measured using a five-item scale adopted from Kilbourne and
Pickett (2008), as used by Paul et al. (2016). Personal norm was measured using three-item
scale adopted from Khare (2015). Five-item scale taken from Chen and Chang (2012) was
used to assess perceived value. Again, purchase intention was measured using five-item
scale from Paul et al. (2016). Three-item scale adopted from Jang et al. (2011) and Kang
et al. (2012) was used to measure willingness to pay premium. Finally, purchase behavior
was assessed using three-item scale adopted from Wan et al. (2012). Responses on all the
scale items were recorded on a five-point Likert scale ranging from 1 (strongly disagree)
to 5 (strongly agree). The items and Cronbach alpha value of each study instrument are
presented in Table III.
Control variables
Respondents were asked to share some personal information as well such as gender, age and
education. Gender was coded as 0 (female) and 1 (male), age as 1 (15-20 years), 2 (21-25years),
3 (26-30 years) and 4 (above 30 years), and education as 1 (B.Tech), 2 (M.Tech/MSc) and
3 (PhD). However, we statistically controlled for the above demographic variables to avoid
confounding relationships.
Data analysis
We conducted confirmatory factory analysis (CFA) to examine the convergent and
discriminant validity and verify the goodness of fitness of all the scales in present context.
Hypotheses were tested using structural equation modeling (SEM) with the help of SPSS
AMOS 24 using different indicators such as chi-square ( x 2), chi-square to degree of freedom
ratio ( x 2/df), Tucker–Lewis index (TLI), comparative fit index (CFI), goodness-of-fit index
(GFI) and root mean square error of approximation (RMSEA). Indirect effects were tested
and confirmed with the help of bootstrapping procedures in AMOS.
Results
Table I presents means, standard deviations and inter-correlations among the study
variables. Respondents were found to show high concern for the environment, had high
JGR personal environmental norms and displayed strong green purchase intention as reflected in
9,2 the respective mean scores. However, perceived value of green products, willingness to pay
premium and green buying behavior were found to be at above average level. Furthermore,
significant positive correlations were found between the antecedent and outcome variables,
thereby providing preliminary support for the study hypotheses.
Table III.
0
validity indicators
Reliability and
185
Green buying
behavior
JGR Structural model: model fit and hypotheses testing
9,2 To test the study hypotheses, we used structural equation modeling. All the study measures
were modeled as latent constructs with respective subscale means as indicators of the latent
factor. The proposed framework was found to show good fit to the data. All the CFI, TLI and
IFI values were above 0.91 (Bagozzi and Yi, 1988) and RMSEA value was 0.08 (Browne and
Cudeck, 1993), as shown in Table IV. The structural model with standardized path
186 coefficients is presented in Figure 2.
The results showed that environmental concern, personal norms, perceived value
and willingness to pay premium determine 91 per cent of the overall variance in
purchase intention (R2 = 0.910). Furthermore, purchase intention explained
32.7 per cent (R2 = 0.327) of the variance in purchase behavior. Perceived value ( b =
0.496, p = <0.001) and willingness to pay premium ( b = 0.327, p = <0.001) were found
to exercise significant positive influence on purchase intention. However,
environmental concern ( b = 0.099, ns) and personal norm ( b = 0.111, ns) failed to show
any significant relationship with purchase intention. Furthermore, the study
empirically confirms the role of purchase intention as a predictor of purchase behavior
x2 491.96
x 2/df 2.288
GFI 0.828
CFI 0.923
IFI 0.924
TLI 0.910
Table IV. RMSEA 0.080
SEM model fit R2 (PI) 0.910
indices R2 (PB) 0.327
Figure 2.
Structural model
concerning green products ( b = 0.572, p = <0.001). Thus, H1 and H2 were rejected, Green buying
whereas H3, H4 and H5 were supported. Table V summarizes the results of hypotheses behavior
testing.
The indirect effects of predictor variables on green buying behavior were also
examined using bootstrapping procedures in AMOS. A total of 5,000 bootstrap samples
were requested. Significance of the indirect effects was examined with the help of bias
corrected 95 per cent confidence intervals, as presented in Table VI. The indirect effect
of only perceived value (estimate = 0.368, BC CI [0.003, 0.744] and willingness to pay 187
premium (estimate = 0.230, BC CI [0.028, 0.527]) was significant (Table VI), whereas
environmental concern and personal norm failed to exercise any significant indirect
effect on green buying behavior.
Bootstrap BC 95% CI
Paths Indirect effect Lower Upper
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Corresponding author
Richa Chaudhary can be contacted at: richa.chaudhary18@gmail.com
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