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PERCEPTION OF GREEN BRAND POSITIONING ON GREEN PURCHASE

INTENTION

Submitted by:

Shreena Marasini

Exam Roll No.: 848/20

T.U. Registration No.:7-2-39-1937-2015

A Graduate Research Report submitted in partial fulfillment of the requirements for the

degree of

MASTER’s OF BUSINESS ADMINISTRATION (MBA)

At the

School of Management Tribhuvan University

The Faculty of Management

Tribhuvan University

Kirtipur, Kathmandu

February 2023
RECOMMENDATION
CERTIFICATION

3
DECLARATION OF AUTHENTICITY

I, Shreena Marasini declare that this GRP is solely my original work. I didn't plagiarize anyone
else's work, and I properly acknowledged and documented each source I used to complete this
thesis. Further, I am aware of SOMTU's policy that allows it to cancel any credits given to me
based on material that demonstrates misrepresentation and misconduct in relation to any
component of my work.

Signature: ………………………………………….

Name: Shreena Marasini

Date

4
ACKNOWLEDGMENTS

This graduate research project titled "Perception of Green Brand Positioning on Green Purchase
Intention," was written in partial fulfillment of the requirements for the degree of Masters of
Business Administration (MBA) at Tribhuvan University, School of Management. I owe a debt
of appreciation to a number of persons without the help of whom I could not have finished this
work.

I am truly grateful to all those who have helped me in my research and report writing journey. I
would like to acknowledge my supervisor, Dr. Govinda Tamang, for his unwavering support and
invaluable guidance throughout my research process. I am also thankful to Dr. Ganagaram
Biswokarma, the Acting Director of SOMTU, for his professional support and encouragement.

Furthermore, I would like to express my gratitude to my advisor and mentor, who provided me
with insightful guidance and support throughout the entire research journey. Their expertise and
encouragement was instrumental in helping me complete this project successfully.

I am also thankful to my colleagues and friends for their contribution to this project, as they
provided me with feedback, encouragement, and motivation. Their support was invaluable and
made this project a huge success.

In addition, I would like to extend my sincere thanks to the participants of my research study for
taking the time to complete the survey. Their responses provided me with valuable information
that helped me deepen my understanding of the subject matter.

Finally, I want to express my appreciation to my family for their unwavering support and
encouragement during my studies. Without their help, this project would not have been possible,
and I am forever grateful to each and every one of them. This project was made possible through
the help and support of all these individuals, and I am truly thankful for their contributions.

Shreena Marasini

February 2023

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TABLE OF CONTENTS

RECOMMENDATION....................................................................................................................i
CERTIFICATION...........................................................................................................................ii
DECLARATION OF AUTHENTICITY.......................................................................................iii
ACKNOWLEDGMENTS..............................................................................................................iv
TABLE OF CONTENTS................................................................................................................v
LIST OF TABLES........................................................................................................................vii
LIST OF FIGURES......................................................................................................................viii
ABBREVIATIONS........................................................................................................................ix
EXECUTIVE SUMMARY.............................................................................................................x
CHAPTER I.....................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Background of the Study........................................................................................................1
1.2 Statement of Problem.............................................................................................................2
1.3 Research Objectives...............................................................................................................3
1.4 Hypothesis..............................................................................................................................4
1.5 Scope and Significance of the Study......................................................................................4
1.6 Limitations of the Study.........................................................................................................5
1.7 Structure of the Report...........................................................................................................5
CHAPTER II...................................................................................................................................7
RELATED LITERATURE AND THEORETICAL FRAMEWORK............................................7
2.1 Theoretical Review................................................................................................................7
2.2 Empirical Review...................................................................................................................9
2.3 Research Gap.......................................................................................................................24
2.4 Theoretical Framework........................................................................................................25
2.5 Operational Definition of Variables.....................................................................................25
CHAPTER III................................................................................................................................28
RESEARCH METHODOLOGY..................................................................................................28
3.1 Research Design...................................................................................................................28
3.2 Population and Sample.........................................................................................................28
3.3 Sources of Data....................................................................................................................29

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3.4 Instrumentation....................................................................................................................29
3.5 Pilot Survey..........................................................................................................................29
3.6 Validity and Reliability Analysis.........................................................................................30
3.6.1 Composite Reliability and Validity...............................................................................30
3.6.2 Discriminate Validity....................................................................................................31
3.7 Data Analysis Technique.....................................................................................................33
3.8 Ethical Consideration...........................................................................................................34
CHAPTER IV................................................................................................................................36
ANALYSIS AND RESULTS........................................................................................................36
4.1 Demographic Profile of Respondents..................................................................................36
4.2 Descriptive Statistics of Independent Variables and Dependent Variables.........................40
4.3 Normality Test.....................................................................................................................43
4.4 Collinearity Test...................................................................................................................44
4.5 Correlation Matrix................................................................................................................44
4.6 Structural Equation Model Analysis....................................................................................45
4.7 Major Findings.....................................................................................................................49
CHAPTER V.................................................................................................................................52
DISCUSSION, CONCLUSION, AND IMPLICATION..............................................................52
5.1 Discussion............................................................................................................................52
5.2 Conclusion...........................................................................................................................53
5.3 Implication...........................................................................................................................54
5.3.1 Managerial Implication.................................................................................................54
5.3.2 Implication for Future Research....................................................................................55
References......................................................................................................................................57
APPENDIX....................................................................................................................................64

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LIST OF TABLES
Table 1
Summary of Reviewed Literature 9
Table 2 Compositite Reliability and Validity................................................................................30
Table 3 Fornell-Larcker Test……………………………………………………………………32
Table 4 Cross Loading...................................................................................................................32
Table 5 HTMT...............................................................................................................................33
Table 6 Demographic Profile of Respondents...............................................................................36
Table 7 Frequency of Green Product Purchased in the past 3 months………………………… 37
Table 8 Source motivated to purchase green product ...................................................................38
Table 9 Most conviently purchased green product........................................................................39
Table 10 Descriptive Statistics of Green Brand Positioning.........................................................40
Table 11 Descriptive Statistics of Attitude Towards Green Products...........................................41
Table 12 Descriptive Statistics of Green Brand Knowledge.........................................................41
Table 13 Descriptive Statistics of Green Purchase Intention........................................................42
Table 14 Shapiro-Wilk Test...........................................................................................................43
Table 15 VIF..................................................................................................................................44
Table 16 Correlation Matrix..........................................................................................................44
Table 17 Path Coeffecient.............................................................................................................47
Table 18 R Square.........................................................................................................................47
Table 19 F Square..........................................................................................................................48
Table 20 SRMR Statistics..............................................................................................................48
Table 21 Hypothesis Testing Summary.........................................................................................49

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LIST OF FIGURES

Figure 1
Theoretical Framework 25
Figure 2 Graphical Output.............................................................................................................46

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ABBREVIATIONS

ABC Attitude Behaviour Context Theory


ATG Attitude Towards Green Products

AVE Average Variance Extracted

GBK Green Brand Knowledge


GBI Green Purchase Intention
GBP Green Purchase Intention
HTMT Heterotrait-Monotrait Ratio
PLS Partial Least Squares
SD Standard Deviation

SEM Structure Equation Modeling

SPSS Statistical Package for Social Sciences

SRMR Standardized Root Mean Square Residual

TPB Theory of Planned Behavior

TRA Theory of Reasoned Action

VIF Variance Inflation Factor

WTP Willingness to Pay

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EXECUTIVE SUMMARY
Environmental issues have become more severe since the industrial and technological revolution,
and companies are exploring new ways to position themselves as leaders in the eco-friendly
space. Consumers' increased concern for the environment has led to the growth of the "going-
green" movement and the demand for eco-friendly products worldwide. Green brands offer a
significant advantage over their competitors in terms of their environmental impact, and
consumers with a high degree of awareness and resources are willing to pay more for
environmentally friendly products. The relationship between green brand positioning, attitude
toward green products, brand knowledge, and green purchasing intention was examined for the
study. The goal of the study was to ascertain whether factors such as green brand positioning,
consumer attitudes toward green products, and brand knowledge had a favorable effect on green
purchase intentions.

The study used a self-administered questionnaire survey on a five-point Likert scale. The survey
was completed by 386 respondents. The sample was chosen from several individual who are
consumer of green product or general household products. The data were analyzed using a
measurement model, a demographic profile, descriptive statistics, and structural equation
modeling. For the descriptive and correlational analysis, IBM SPSS 26 was employed. The
results were confirmed using Smart PLS 4.

The results show that there is a positive relationship between the green brand positioning,
attitude towards green products, and green purchase intention. The study's conclusions imply
that three variables—green brand positioning, attitude toward green products, and brand
knowledge—are essential elements in figuring out consumers' intentions to buy green products.
This study provides valuable insights into the ways companies can effectively communicate the
environmental benefits of their products and encourage more sustainable purchasing behaviors.
These findings have implications for both businesses and policy makers, as businesses can use
them to inform their green branding efforts, while policy makers can use them to inform the
development of policies promoting sustainable consumption patterns.

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CHAPTER I

INTRODUCTION
1.1 Background of the Study
The severity of environmental issues such as deforestation, natural resource depletion, global
warming, and climate change has increased significantly since the onset of the industrial and
technological revolution. Many policymakers, environmentalists, and non-profit organizations
see consumer demand and large-scale manufacturing as the most significant threats to future
generations (Mehraj and Qureshi, 2020). As a result, both industrialized and emerging nations
must address their environmental challenges, which are exacerbated by environmental
degradation and the depletion of finite resources (Papadas et al., 2017; Tiwari et al).

In addition to prioritizing profits, businesses are also seeking to establish themselves as


frontrunners in promoting eco-friendliness. They are doing so by devising fresh tactics and
concepts that can appeal to a larger customer base. Grant (2008) defines a green brand as a
product or service that provides a notable edge over its rivals regarding its ecological footprint.

Hartmann and Ibanez (2006) state that a green brand encompasses a set of characteristics and
advantages associated with reducing harmful environmental impacts and creating a favorable
image among consumers by demonstrating environmental concern. Customers who possess a
strong environmental awareness, significant concern for the environment and the means to act on
it are referred to as green consumers (Norazah and Norbayah, 2015).

The trend towards environmental consciousness among consumers has led to an increase in
demand for eco-friendly products, as reflected in the "going-green" movement, which has gained
momentum worldwide due to the greater awareness of healthier lifestyles (Norazah, 2013).
Soyez (2012) has further suggested that consumers' inclination towards green purchasing
behavior is influenced by both the functional attributes of the product and their environmental
concerns. Some businesses have also taken genuine steps towards environmental conservation.
For instance, companies like Honda, Toyota, and GM in the automobile sector have
demonstrated their commitment to green brands by utilizing green technologies that conserve
natural resources and reduce greenhouse gas emissions, particularly in the production of hybrid
cars (combining electric and conventional engines) aimed at promoting environmental protection
(Marcus and Fremeth, 2009).Cooney (2010) reported that a positive eight out of ten participants
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in the Lifestyles of Sustainability and Good Health (LOHAS) Club purchased eco-friendly goods
for $300 billion in 2008.

Sustainable development has gained global attention since the Earth Summit in 1992 and the
Brundtland Commission in 1987, as noted by (Lubin and Esty 2010). Today, an increasing
number of businesses strive to be sustainable, recognizing that customers are paying closer
attention to a brand's sustainability efforts. To address this, many companies are making efforts
to clearly communicate their sustainability initiatives (Raska and Shaw, 2012). The cosmetics
and personal care industry is particularly affected by environmental trends, with environmentally
responsible businesses being encouraged to consider entering the market, according to
Euromonitor data from 2013 (Euromonitor International, 2013).

As per Suki's (2016) findings, consumers harbor doubts regarding the quality of eco-friendly
products and may not have sufficient information to trust them. Therefore, it is imperative to
educate consumers about sustainability and the importance of adopting eco-friendly practices.
Additionally, businesses need to take steps to raise consumer awareness of their green brands.

To enhance consumer demand for eco-friendly products, it is crucial for businesses to provide
consumers with both access to green products and information, according to Suki's (2016)
research. Green products play a critical role in energy conservation by reducing pollutant levels
and carbon footprints.
1.2 Statement of Problem
It is anticipated that the results obtained would add to the wealth of information currently
available on green product usage, and green purchase intention.

The research provides valuable insights for businesses seeking to enhance their green marketing
strategies and promote the eco-friendly attributes of their products, with the aim of educating and
increasing customer awareness. A well-designed and effectively executed Green Branding
Program (GBP) can also influence customers' attitudes towards green products, further boosting
consumer demand for such products and promoting awareness of their benefits. By learning
about green brand products, consumers may become more willing to buy eco-friendly products
and develop a greater understanding of the importance of environmental protection (Juwaheer,
Pudaruth, & Noyaux, 2012). The study offers new knowledge to businesses, enabling them to
leverage media channels to educate customers on the added value of their products, such as

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energy savings and reduced waste and emissions through the principles of reduce, reuse and
recycle.

This study can help companies improve their decision-making in the management of eco-friendly
products. Additionally, it can serve as a guide for future researchers by providing initial data for
more comprehensive and reliable investigations. By utilizing the insights gained from this study,
companies can make informed decisions and develop effective strategies for promoting and
managing green products. This, in turn, can contribute to a more sustainable future.

1. What is the nature and extent of relationship between customers’ green brand positioning
and green products purchase intention?

2. What is the level of awareness among consumers about green products?

3. Does attitude of green brand affect consumers purchase intention?

4. Does green brand knowledge, attitude towards green products, green brand positioning
create an impact on the purchase of green products?

1.3 Research Objectives


The research has been carried to figure out the effect the green brand positioning, attitude
towards green brands, and green brand knowledge on green purchase intention. This study
focuses on the characteristics and factors that influence customers' intentions to buy green
products, causing them to prefer green ecological items to other products and making that
decision.
1. To measure the relationship between customers’ green brand positioning and green products
purchase intention.
2. To examine the relationship between customers’ green brand knowledge and green products
purchase intention.
3. To assess the relationship between customers’ attitude towards green brand and green products
purchase intention.
4. To analyze the impact of green brand knowledge, attitude towards green products, green brand
positioning on the purchase of green products.

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1.4 Hypothesis
Lin & Chang (2012) assert that because of strong green brand positioning, customers who have
previously purchased eco-friendly products and who are aware of environmental issues are more
inclined to do so in the future. Suki (2016) asserts that a consumer's tendency to purchase a green
product is influenced by their usage of the product in issue and their level of familiarity with the
green companies that are vying for their business. Huang et al. (2014) claim that consumers'
inclinations to purchase green products are significantly influenced by the green brand
positioning. Consequently, the following theory is put forth:

H1: There is a positive and significant relationship between green brand positioning and
green products purchase intention.

According to Teng's (2009) research, a consumer's inclination to buy a green product is closely
tied to how positively they feel about a green brand. Chang and Wu (2015) assert that customers'
intentions to buy green products are influenced by their favorable and positive perceptions of the
green products themselves. Additionally, Mostafa (2007) discovered that consumers' buy
intentions for green items would be stronger if they had a positive attitude about the green brand.
H2 is as follows in light of the explanation above.

H2: There is a positive and significant relationship between attitude towards green brand
and green products purchase intention.

Customers who are aware of organic or "green" foods are more likely to make direct purchases
of organic products, according to Smith and Paladino's (2010) research. Connell (2010) also
found that consumers who lack knowledge about green brand products are less likely to buy the
green product. Consumers are more likely to purchase and consume green products if they have a
positive attitude toward the green brand and are aware about the environment, according to
Huang et al. (2014). As a result, this study proposed the following:

H3: There is a positive and significant relationship between green brand knowledge and
green products purchase intention.

1.5 Scope and Significance of the Study


Green purchase intention refers to the tendency of consumers to buy environmentally friendly
products. The study of green purchase intention is significant as it examines consumers' behavior

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towards environmentally friendly products. It helps to understand the factors that influence
consumers to make a purchase decision and how they consider the environmental impact of
products. The scope of the study covers various aspects of consumer behavior, such as attitudes,
beliefs, values, and decision-making processes related to green purchasing. The results of this
research can be used by marketers and policymakers to design effective strategies to promote
environmentally friendly products and to encourage sustainable consumption patterns.
Additionally, the study can also help companies to identify opportunities to improve the
environmental performance of their products and to create more sustainable supply chains. This
area of research is significant because it sheds light on the motivations, attitudes, and behaviors
of consumers towards products that have a lower environmental impact. The results of this
research can be used by businesses, policymakers, and researchers to make informed decisions
about promoting sustainable products and reducing the environmental impact of consumption.
Overall, the study of green purchase intention is important for understanding how consumers
make purchasing decisions with regards to the environment.

1.6 Limitations of the Study


Each study topic has its own specific set of limitations. Data from a primary source is the
foundation of this investigation. As a result, the following are the study's limitations:
 The study may not consider external factors such as social norms, environmental
concerns, and cultural differences that can impact green purchasing behavior.
 The study only examines green purchasing intentions in a specific context, such as a
particular product category or geographical region, limiting the generalizability of the
findings.
 Time constraint is another limitation.
 Green purchase intention is measured through surveys, which may suffer from social
desirability bias and self-reported limitations.
 The validity and reliability of measures used to assess green purchase intention may be
questionable in some other studies.
 The small sample size makes it difficult to generalize the data.
1.7 Structure of the Report
Five chapters make up the structure of the proposed study: an introduction, a literature
review and theoretical framework, a research design and methodology, results and

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discussion, and a summary and conclusion. The report's preliminaries include the title page,
certification, and statement of authenticity, acknowledgment, and table of contents, list of
figures, list of tables, abbreviations, and executive summary. References and appendices are
located in the supplemental section.

Chapter I

Chapter one includes the introductory part first. This chapter contains information about the
study's background, a summary of the problem, objectives of the study, a research
hypothesis, the study's scope and importance, its limitations, and an outline of the report.

Chapter II

A review of the literature, comprising a theoretical review, an empirical review, a research


gap, and the development of a theoretical framework, is offered in the second chapter of the
study.

Chapter III

Chapter three covers the research techniques that served as the foundation for this study. It
consists of the research concept, the sample and population, the sampling method, the
instrumentation, the sources and techniques for gathering data, and the method for analyzing
that data.

Chapter IV

Chapter four contains data analysis. Its main emphasis is on the data that has been collected
and is presented in a systematic manner. Diagrams and tabular data are used to show
information in a way that is easy to understand. It also covers the main findings and
recommendations from the statistical analysis of the survey data.

Chapter V

The discussion, verdict, and repercussions are all included in the last chapter. The discussion
compares the study's findings to those of other studies in related fields. The concluding
conclusion enumerates the conclusions drawn from the comparison. The paper's implications
section explores the study's practical applications.

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CHAPTER II
RELATED LITERATURE AND THEORETICAL FRAMEWORK
2.1 Theoretical Review
Theory of Planned Behaviour

Ajzen (1991) Theory of Planned Behavior proposes that consumers' attitudes towards products
can greatly influence their purchasing decisions, specifically in regards to environmentally
friendly goods. The theory aims to identify the factors that affect a consumer's intention to
purchase eco-friendly products. As per Ajzen's theory, a consumer's attitude towards a product
plays a crucial role in determining their purchase behavior, with a positive attitude increasing the
likelihood of purchasing the product (Mostafa, 2007; Oliver & Lee, 2010). Consumers' favorable
opinions towards environmentally sustainable products reflect their concern for the environment,
and such positive perceptions can significantly impact their purchase decisions (Albayrak,
Aksoy, & Caber, 2013). Environmental concern is a crucial factor in both the TPB (Ajzen, 1988;
Ajzen, 1991) and the model of environmentally friendly behavior (Hines et al., 1987), as they
both emphasize that individuals' attitudes toward the environment can motivate them to act in an
environmentally friendly way. The concern that people have for the environment can create a
social atmosphere that supports environmental conservation, and this can have a significant
impact on the development and implementation of environmental policies at the organizational
level (Poortinga et al., 2004).

In Ajzen's (1991) Theory of Planned Behavior (TPB), the attitudes of consumers play a critical
role in shaping their behavioral intentions, which in turn determine their actual behavior. One
key internal factor that motivates environmentally responsible behavior is the level of
environmental concern that individuals hold. This refers to their knowledge of and support for
environmental issues and solutions (Dunlap & Jones, 2002).

Both the TPB (Ajzen 1988; Ajzen 1991) and the model of environment-friendly behavior (Hines
et al. 1987) highlight the significance of environmental concern in motivating individuals to take
action towards environmental protection. This implies that people who have a greater awareness
of environmental issues are more inclined to behave in an environmentally responsible manner.

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Theory of Reasoned action

The Theory of Reasoned Action (TRA) model, developed by (Ajzen and Fishbein 1980),
suggests that an individual's attitude plays a significant role in predicting their behavior, and that
their behavior is influenced by their perception of what is important to others. In the context of
green products, a consumer's intention to purchase a product that is less harmful to the
environment and society is related to their intention to buy a green product. This means that if a
consumer has a positive attitude towards green products, they are more likely to purchase them.
Previous studies have shown that a consumer's perception of a product's green value and their
positive attitude towards green products significantly impact their decision to purchase such
items. This means that if a consumer believes a product is environmentally friendly and has a
positive attitude towards green products, they are more likely to purchase that product. In
addition, a consumer's mindset has been found to affect their inclination to buy a green product.
This suggests that the way in which a consumer thinks about green products may influence their
decision to purchase them. Marketers of green products need to consider how they measure
consumer attitudes and intentions to gain a better understanding of what customers really want. It
is also important for marketers to distinguish between consumers' new and existing views about
green products. By doing so, they can better tailor their marketing strategies to the needs and
preferences of their target audience and increase the likelihood of consumer demand for green
products (Ajzen, 1980).

The Theory of Reasoned Action (TRA) introduced the concept of subjective norms to account
for the effects of social influence on individuals' intentions (Fishbein & Ajzen, 1975). Social
influence, which refers to the impact of other people's decisions, actions, and beliefs on an
individual's behavior, is a well-established idea in the social sciences. Some of the terms used to
describe this phenomenon include social proof, peer pressure, bandwagon effects, conformity,
and herding (Cialdini & Goldstein, 2004).

Attitude Behaviour Context Theory

The Attitude-Behavior-Context (ABC) theory is a prominent model in the field of consumer


behavior and environmental psychology that aims to explain how consumers' attitudes and
behaviors are related. According to the theory, consumers' actions are influenced by their beliefs
and expectations about particular behaviors. In other words, their attitudes and intentions play a

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critical role in determining their behavior. Moreover, the ABC theory also acknowledges the role
of context in shaping consumers' behavior. Context can include a variety of factors such as the
physical environment or social norms. For instance, Guagnano et al. (1995) discovered that
social norms and the physical environment can play a crucial role in shaping consumers' green
purchasing intentions. This suggests that consumers are more likely to engage in green
purchasing behavior if the context is conducive to such behavior. Therefore, the ABC theory
emphasizes the importance of considering the context in which consumers make purchasing
decisions.

The ABC theory holds that consumer behavior is impacted not only by attitudes but also by the
environment in which it takes place. This underlines how crucial a role the environment plays in
influencing consumer behavior is, as well as how attitudes and contextual factors interact
(Salonen & Hlberg, 2012).

The ABC theory posits that consumers' attitudes and values towards environmental sustainability
are important factors in predicting their intention to purchase green products (Liao et al., 2020).
These attitudes and values may be influenced by a range of factors, such as prior experiences,
individual beliefs, and exposure to environmental information. Put simply, consumers who are
committed to environmental sustainability are more likely to purchase eco-friendly products
(Goh & Balaji, 2016).
2.2 Empirical Review
Numerous theoretical and empirical studies have been conducted on the influence of green brand
positioning on consumers' intentions to make green purchases. In this regard, considerable
research have investigated the effects of influencing variables, and the majority of these studies
are consistent with the aspects green brand positioning, attitude towards green products, green
brand knowledge, and green purchase intention. If these criteria are associated with green buying
intention, it can be determined from the table below empirical data.

Table 1
Summary of Reviewed Literature
Study Theory Methodology Variables Findings

Influence of Green Theory of Analytical model of Green Customer The primary


Marketing on Reasoned investigation Base factor influencing
Consumer Action a consumer's
Detailed survey using Consumer

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Behavior: A a structured Attitude decision to
Realistic Study on questionnaire acquire a product
Bangladesh Purchase is the consumer's
Influence of Green Total of 384 Intention attitude toward it.
Marketing. A S M respondents from
different districts in Purchase
Saifur Rahman,
Bangladesh. Behaviour
Adita Barua,
Rajidul Hoque &
MD Rifat Zahir
(2017)

Does green brand Theory of Questionnaire survey Green Brand Marketing


positioning translate Planned through stratified Knowledge managers should
into green purchase Behaviour random sampling. Attitude take into account
intention? Danish Total 600 students towards Green a company's GBP
Mehraj & Ishtiaq from nine universities Brand strategy as a key
Hussain Qureshi in India. Green Brand element in
(2022) Positioning creating
Willingness to promotional
pay messages that
Green Purchase encourage
Intention customers to
support the green
initiatives of the
company.

The Effects of Nil Purposive Sampling Green Brand Green brand


Green Brand Method Knowledge positioning has a
Positioning, Green Non-probability favorable impact
Brand sampling Attitude on green brand
Knowledge, and 347 respondents towards green knowledge but
Attitude towards through questionnaire Brand has no influence
Green Brand on survey on attitudes
Green Brand
Green toward green
Positioning
Products Purchase brands.
Intention. Lendy Green Purchase Knowledge of
Aulina, Elevita Intention green brands
Yuliati (2017) favorably affects
attitudes toward
them, and
attitudes toward
green brands
positively affect
intentions to
make green

10
purchases.

Effects of green Theory of Questionnaire Survey Green Brand Green brand


brand on Planned Structure Equation Knowledge positioning and
Green Purchase Behaviour Modeling green brand
Intention. Yi-Chun 425 samples Attitude knowledge each
Huang, Minli Yang towards green have an
& Yu-Chun Wang Brand individual impact
(2014) on green brand
Green Brand
perceptions.
Positioning
Green brand
Green Purchase perceptions are
Intention influenced by
green brand
understanding.
Green brand
views also affect
consumers'
inclinations to
make green
purchases.
Effect of Green Theory of Snowball sampling Green Brand The most reliable
Brand Positioning, Planned technique Knowledge indicator of
Knowledge, and Behaiour Online Survey buying green
Attitude of 162 respondents Attitude products is
Customers on towards green customer
Green Purchase Brand knowledge of
Intention. Thoo Ai green issues.
Green Brand
Chin,Nor Haslinda Consumers'
Positioning
binti Mohd Lawi, intentions to
Zuraidah Sulaiman, Green Purchase purchase green
Adaviah Mas’od, Intention products are
Farrah Merlinda unrelated to their
Muharam & Huam attitudes about
Hon Tat (2020). green brands.

Brand Positioning Theory of This study used a Green Brand The propensity to
and Repurchase Planned structural equation Knowledge repurchase is
Intention: The Behaviour approach with a Attitude significantly
Effect sample size of 175 and towards green impacted by
of Attitude Toward uses an eight-point Brand green brand
Green Brand. Likert scale. Green Brand positioning. The
Tumpal Pangihutan, The data collection Positioning association
Farida & Harry technique used Green Purchase between green
(2020) purposive sampling. Intention brand positioning

11
and repurchase
intention can be
successfully
mediated by one's
attitude toward
green brands.

Are brands forever? Structural Equation Brand It has been


How brand Modeling Knowledge found that brand
knowledge and 400 respondents awareness mostly
relationships affect Brand indirectly and
Current and Future Awareness brand image
Purchases. Franz- primarily directly
Brand
Rudolf Esch, influence current
Realtionship
Tobias Langner, purchases.
Bernd H. Schmitt & Purchase Instead, brand
Patrick Geus (2006) Behaviour knowledge
influences future
purchases
through a brand
relationship route
that includes
brand
satisfaction,
brand trust, and
brand attachment.
In contrast,
neither
component of
brand knowledge
directly
influences future
purchases.

How do Theory of Questionnaire Survey Environmental The intention to


environmental planned concern acquire green
values impact green behavior With 577 responses Environmental products was
product purchase values significantly
intention? The Green trust influenced
moderating role of Green products positively by
green trust. purchase altruistic and
Guangxia Li, intention biospheric values
Lifeng Yang, and negatively by
Baojie Zhang, egoistic values.

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Xiaoxuan Li1 & The association
Feiyu Chen (2021) between
environmental
concern and
intention to buy
green products
was positively
moderated by
green trust.
The demographic Attitude Questionnaire Survey Green Purchase Green purchasing
impact of consumer Behaviour N= 659 Attitude attitudes and
green purchase Context Green Purchase green behavior
intention toward Theory Intention intentions have a
Green Theory of strong positive
Hotel Selection in Planned link.
China. Lei Wang, Behaviour Male and female
Philip PW Wong & influences on
Elangkovan A green purchase
Narayanan (2019) attitudes and
green behavioral
intention also
differ
significantly.
Green purchase Theory of Random Sampling Environmental Concern for the
intention Planned 450 respondents Belief environment
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of factors Theory of survey Concern attitudes toward
influencing Reasoned Purhase eating green
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Enhance green Theory of Emperical study Green Perceived While green
purchase Planned through questionnaire value perceived risk has
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green trust. Yu- Intention perceived value
Shan Chen& has a favorable
Ching-Hsun Chang impact on both.

13
(2012)
An Empirical Study Theory of Descriptive research Green Effective green
about Green Green N= 150 Awareness marketing tactics
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Hadiwidjojo (2019) mediates the
association
between
environmental
knowledge and
intention to make
green purchases.

14
Spence and Pappu (2010) emphasized the significance of investigating the impact of green
marketing activities on consumer behavior, particularly in terms of consumers' perceptions of
green values and their decision-making processes when purchasing environmentally friendly and
sustainable products. While previous studies have examined the influence of peer pressure and
social norms on consumer behavior, there is a lack of research on the precise effects of green
marketing initiatives on consumer perception and green purchase intention, especially in the
Bangladeshi market. Green marketing initiatives, such as eco-labeling, environmental
messaging, and corporate social responsibility, aim to promote the adoption of environmentally
friendly and sustainable products. These initiatives are becoming increasingly common in the
marketplace, and consumers are more likely to purchase products from companies that engage in
such activities. However, it is essential to understand how green marketing activities affect
consumer perceptions and behaviors, particularly in countries like Bangladesh, where
environmental issues are becoming more pressing.

To bridge the research gap in this area, the authors of the study planned to conduct a survey that
focused on consumer products and green marketing. The authors designed a questionnaire based
on previous research to investigate the extent to which green marketing efforts influence
consumer perception and intention to purchase environmentally friendly products. By using this
approach, the study aimed to provide a better understanding of how green marketing activities
affect consumer behavior in terms of environmental values and purchase intentions.

The results of the study suggest that there is a significant potential for green products to be
utilized more widely within the Bangladeshi market. However, the authors argue that green
marketing communication is not yet effective enough in influencing consumer behavior. The
study highlights the need for greater use of marketing and branding strategies to promote
environmentally products and to educate consumers about the benefits of such products.

In a recent study conducted by Mehraj, and Qureshi (2022), the relationship between various
aspects of green marketing strategies and green consumer behavior was investigated.
Specifically, the study examined the impact of green brand positioning (GBP), green brand
knowledge (GBK), attitude toward green brands (ATGB), willingness to pay (WTP) a premium,
and intention to make a green purchase, collectively referred to as GPI. The researchers collected
data through a questionnaire survey from 600 students attending nine state institutions in India,

15
using a stratified random sampling method. The study's results indicate that a company's green
marketing tactics can significantly influence green consumer behavior, as reflected by the GPI
elements.

The research indicates that the two components of green marketing strategy, GBP and GBK,
have distinct impacts on customers' perceptions of green brands. Moreover, these perceptions of
green brands play a crucial role in influencing customers' inclination to make environmentally
responsible purchases. Furthermore, the study identified that the customer's willingness to pay a
premium acts as a critical moderator of the association between ATG and GPI. In other words,
the customer's attitude toward green brands positively impacts their green purchase intention, but
this relationship is further influenced by their willingness to pay a premium.

Huang et al. (2014) looked at how green brand positioning, familiarity with green brands, and
attitudes toward green brands affected consumers' intentions to make green purchases. This
research focuses on personal care and cosmetic products, specifically The Body Shop brand, as
opposed to the prior study, which concentrated on the purchase intention of green cars. The study
included a sample of 347 consumers who lived in Jakarta and the surrounding area, had never
made a purchase from The Body Shop, and participated in the survey (Jabodetabek). Structural
Equation Modeling and the statistical program LISREL 8.51 were used to examine the data.

The study findings showed that green brand positioning had a favorable impact on green brand
knowledge, but did not have a significant influence on attitude toward green brand. Conversely,
green brand knowledge had a positive effect on attitude toward green brand.

In a study by Yi-Chun Huang, Minli Yang, and Yu-Chun Wang (2014), the objective was to
investigate how green brands can influence consumers' green purchase intentions, utilizing the
theory of planned behavior as the theoretical basis. Data was gathered through a questionnaire
survey of 425 participants, and the data was analyzed using structural equation modeling.
According to the study findings, green brand attitudes were influenced by green brand
positioning and green brand knowledge separately. Moreover, the research indicated that green
brand knowledge had a positive impact on green brand attitudes, which, in turn, positively
affected green purchase intention.

The results of the study conducted by Yi-Chun Huang, Minli Yang, and Yu-Chun Wang (2014)
make a significant contribution to our understanding of the relationship between green brands

16
and green purchase intentions. Specifically, the findings suggest that both green brand
positioning and green brand knowledge can have a positive impact on green brand attitudes. In
turn, these attitudes can significantly influence green purchase intentions. The findings of the
study offer valuable insights that can guide marketing managers in developing effective green
marketing strategies, leading to increased sales of environmentally friendly products and a more
sustainable future.

Pangihutan, Indrani, and Agus (2021) conducted a study to investigate the relationship between
attitudes toward green brands, green brand positioning, and repurchase intention, as well as the
impact of product knowledge on these factors. The study's participants were selected based on
their use of eco-friendly cosmetic products and their residence in Central Java. The researchers
utilized a structural equation modeling approach, and the data was collected through an online
survey created with Google Forms. The sample size comprised 175 individuals, and AMOS 22
software was used to analyze the data.

According to the study conducted by Pangihutan, T., Indrani, and Agus (2021), the positioning
of green brands has a significant impact on consumers' repurchase intentions, and this
relationship is positively mediated by attitudes toward green brands. The study also found that
brand awareness has no direct impact on the desire to make additional green purchases but has a
significant effect on attitudes toward green products.

The results of the study highlight the importance of green brand positioning in shaping consumer
attitudes toward eco-friendly products and the need for businesses to continuously improve and
differentiate their eco-friendly products from those of their competitors. These insights are
valuable for companies looking to develop effective green marketing strategies that prioritize
eco-friendliness and resonate with environmentally conscious consumers. The study's findings
provide important insights for businesses seeking to promote their environmentally friendly
products and develop effective green marketing strategies. By focusing on brand positioning and
brand awareness, companies can enhance consumer attitudes toward their eco-friendly products
and increase the likelihood of repurchase intentions, ultimately leading to increased sales and a
more sustainable future.

Esch, Langner, Schmitt, and Geus (2006) examined previous studies that explored the impact of
brand relationships and brand knowledge on consumer behavior. The review aimed to synthesize

17
different perspectives and models on the link between brand knowledge (i.e., brand image and
brand awareness) and current and future purchases. It also discussed the use of structural
equation modeling as a tool to assess the validity of the proposed model. The review likely
provided a summary of prior research on how brand awareness and brand image affect recent
purchases, as well as how brand satisfaction, trust, and attachment influence subsequent
purchases. The study emphasized the importance of considering brand relationship variables, in
addition to brand knowledge, when developing strong and long-lasting brands. The practical
implications of the review suggested that brand managers should focus on creating activities to
ensure consumer satisfaction, trust, and attachment to the brand, as well as measuring brand
relationship variables alongside brand awareness and brand image measures.

Wang, Wong, and Narayanan (2019) conducted a study to investigate the impact of demographic
variables on customers' attitudes and behaviors towards green purchases, specifically in the
context of green hotel selection. The study used a questionnaire survey and the theoretical
frameworks of the theory of reasoned action and the theory of planned behavior, with 659 valid
responses used to test the hypotheses. The study found a significant positive relationship between
customers' attitudes towards green purchases and their intention to engage in green behavior.
Additionally, education and income significantly influenced green behavioral intention, while
age and income significantly impacted green buying attitudes. Furthermore, there were
significant differences in how gender affected attitudes and behavioral intention towards green
purchases. The study highlights the importance of considering demographic variables when
examining consumer attitudes towards eco-friendly products in the hotel industry, and provides
insights for both practical and academic purposes.

Naalchi Kashi (2019) conducted a survey to determine the factors that influence consumers'
decision to purchase environmentally friendly products. The study involved 450 students from
the Yazd Islamic Azad University who were randomly selected, and both descriptive statistics
and structural equation modeling were used to analyze the data. The findings indicate that there
is a strong correlation between environmental beliefs and environmental concern, as well as
between environmental concern and the attitude towards buying environmentally friendly
products. Moreover, the study found that an increase in environmental concern led to a higher
demand for green products and positive emotions, whereas no significant relationship was found

18
between negative emotions and the intention to purchase green products. These results contribute
to the existing literature by providing insights into the influence of environmental beliefs,
attitudes, emotions, and concerns on consumers' purchasing behavior towards green products.

Chen & Chang (2012) created a model to examine how green perceived value and green
perceived risk affect green purchase intentions and whether green trust acts as a mediator in
these relationships. To test the proposed framework, they conducted an empirical study and
collected data through a questionnaire survey. Structural equation modeling (SEM) was used to
analyze the data and validate the proposed framework.

The study's results offer valuable knowledge into the determinants of consumers' intentions to
purchase eco-friendly products, emphasizing the roles of green perceived value and green
perceived risk. Furthermore, it underscores the importance of green trust as a mediator between
these factors and green purchase intentions. These findings have practical implications for
marketers and policymakers who aim to encourage environmentally conscious purchasing
behavior among consumers.

Arshad, Mahmood, Siddiqui, and Tahir (2014) conducted a study to investigate how various
marketing and branding strategies influence the emergence of green brands and green purchase
intentions among consumers. The study specifically examined the impact of green purchase
intention on factors such as green perceived risk, green perceived trust, value, brand image, and
green advertisement. The research methodology involved a consumer survey based on a
questionnaire. The study was carried out by sampling 150 respondents from various
supermarkets. The data collected was processed and analyzed using SPSS, as well as descriptive,
correlational, and factor analytic approaches.

The study's findings suggest a growing consumer interest in purchasing environmentally friendly
products and adopting green consumption patterns. To encourage this behavior, businesses are
advised to implement green branding, eco-labeling, and green packaging practices. Furthermore,
the study reveals that effective green marketing methods have a positive impact on consumers'
green purchasing habits.

Chen and Deng (2016) explored the impact of product knowledge on the relationships between
green purchase attitudes, subjective norms, perceived behavior control, and green purchase

19
intentions, as proposed by the theory of planned behavior. Their study aimed to investigate how
product knowledge affected the strength of these relationships in predicting consumers'
intentions to make green purchases. A survey was conducted, and data from 306 respondents
were analyzed using stepwise regression analysis and confirmatory factor analysis. The results
showed that product knowledge significantly moderated the relationships between the
independent variables and green purchase intentions. The moderating effect of product
knowledge varied across different product categories. The study contributes to the existing
literature by examining the role of product knowledge as a moderating variable in the theory of
planned behavior and emphasizing the importance of considering product knowledge when
analyzing green consumer behavior.

The aim of Indriani, Rahayu, and Hadiwidjojo's (2019) study was to investigate the relationship
between environmental knowledge, green brand image, attitude towards green products, and
green purchase intention in the context of body care and cosmetic products. The sample
consisted of students from state colleges in Manado, Indonesia who intended to purchase
products under The Body Shop brand. Data was collected using a survey as part of a quantitative
research approach, and analyzed using Smart PLS statistical program. Results indicated that
environmental awareness did not have a significant impact on consumers' green purchase
intentions, but attitude towards green products completely mediated the relationship between
environmental knowledge and intention to purchase green products. By exploring the
relationship between these variables in the specific context of body care and cosmetic products,
this study contributes to the existing literature.

Guangxia Li et al. (2021), conducted a study to investigate the influence of environmental values
on green product purchase intention, as well as the moderating role of green trust. The study
utilized a questionnaire survey, based on the theory of planned behavior, with 577 respondents.
The results revealed that egoistic values negatively impact consumers' green purchase intentions,
while altruistic and biospheric values have a positive effect. Furthermore, the study found that
green trust moderates the relationship between environmental concern and green purchase
intention in a beneficial way. This study contributes to the literature by examining the role of
green trust in the relationship between environmental values and green purchase intention, and
sheds light on the importance of environmental values and green trust in predicting green product
purchasing behavior.
20
Kauser et al (2021) aimed to investigate the variables influencing consumers' green purchase
intentions (GPI). The study essentially examined the topic of green marketing in the context of
working consumers at private institutions in Khyber Pakhtunkhwa, Pakistan. The current study
primarily focuses on identifying the aspects and factors influencing customers' intentions to
make green purchases. The research study used a quantitative approach to test the validity of the
instruments and the stated hypothesis. The distribution of the questionnaire among the chosen
sample size is accomplished using a purposive sampling technique. The unifactoriality of the
variables is examined using principle component analysis with varimax rotation.

The results of all the tests indicated a significant correlation between the various items or objects
of each factor, which provided sufficient evidence to validate the construct.

The related hypotheses were tested using descriptive statistics, factor analysis, and eventually
structural equation modeling (SEM). The study's findings demonstrate a strong correlation
between customer awareness, health conscience, product availability, and intention to make
green purchases. The current research study can assist managers and business owners in
determining the best alternatives to the traditional transportation methods now employed from
the point of production to the point of consumption.

Ghimire (2020) sought to explore young people's views about environmentally friendly
purchases in Nepal. Rapid technological advancements may have good or bad effects on the
environment. The goal of this study is to determine what variables motivate Nepalese youth to
buy environmentally friendly products there targeting young people between the ages of 18 and
35 with friendly products. In this study effort, two independent variables have been found that
may have an impact on young consumers' intentions to buy green products. These include beliefs
in environmental protection and knowledge and awareness of environmentally friendly products.
Other factors, such as eco labels, educational attainment, and experience, have been identified as
the intervening factors, all of which have been shown to have a significant impact on the green
purchasing intention (GPI). In order to examine the research objectives, primary data were
gathered via the questionnaire. There were 115 responses in total, and the reliability test,
descriptive analysis, hypothesis test, and Pearson correlation analysis were all completed. In
order to ascertain the significance of contributing young attitudes toward intention to purchase
green products in the Nepalese scenario, this study was conducted.

21
Shrestha (2018) tried to investigate how customers' purchasing intentions are affected by green
initiatives and how green marketing strategies affect the products they choose to buy. The study
also makes an effort to investigate the connection between customer purchase intention in
connection with green marketing techniques and age, income, education, and occupation.

The descriptive aspect of the research focuses on evaluating hypotheses using structured
questionnaires and interviews. Primary data are gathered from a sample of 120 respondents using
a structured questionnaire, with an emphasis on employed, self-employed, student, and
homemakers. In today's society, these organizations are thought to represent green purchasing.
However, the views of marketing experts have also been taken into account. People who go
shopping make up the survey population, and information has also been gathered from the place
of sale. Given the rise in personal knowledge levels, it was determined that green purchasing
intentions were incremental. Environmental awareness, green packaging, green branding, green
advertising, and green labeling are examples of green marketing tactics that have been
considered in relation to customer purchase intentions. The hypothesis testing was done using
Likert scale questions with a five-scale rating. Statements about the impact of green marketing
tools on customer purchase intentions were included in the questions. The study found that using
green marketing strategies effectively influenced consumers' intentions to buy green goods.
Although there is an increasing preference for green products, affordability is a key factor in
product selection.

Shrestha (2020) aimed to gauge customer interest in buying organic foods. It was conducted
using a descriptive and causal study design. Structured questionnaires were used to administer
primary cross-section data. There were 200 replies gathered. The method of convenient sampling
was employed. The psychometric and econometric components of the suggested model were
tested using the PLS-SEM tool. According to this study, availability, trust, and environmental
concern were the key predictors for influencing consumers' intentions to buy organic food.
Health concerns and awareness did not encourage the aim to buy organic food. With an eye
toward health and environmental concern, marketers must make their organic food readily
available in the markets in order to build confidence.

Thapa (2019) investigated customer perceptions of green products in Nepal and their level of
consumer knowledge. A thorough questionnaire was used to gather the information from 192

22
respondents in Kathmandu. A growing number of consumers are aware of the benefits of green
products, and the majority of them believe that they are healthy and secure. Although consumers
would prefer to think that green items are superior to conventional ones in terms of quality, they
do not have a clear judgment regarding the exorbitant costs of green goods. The study's findings
reveal consumers' dissatisfaction with the marketer's promotional efforts. The marketing
community will benefit from this study's increased awareness of the importance of educating
consumers about the advantages of green products and encouraging the adoption of these items.

Tandukar and Shrestha (2020) concentrated on the state of green marketing strategies employed
for the green economy and further investigated the level of awareness among the involved parties
for sustainable development in Nepal, a landlocked mountain nation in South Asia. In order to
promote sustainable development in the Nepalese market, this article illustrates how green
marketing and the green economy can work together. Sustainable economic development
through environmentally friendly means is made possible with the help of green marketing
concepts, which are particularly helpful in areas of increasing the economical replacement and
decrease in disposal costs. With the advent of eco fairs and initiatives, backed by both profit- and
non-profit-oriented firms, the idea of green marketing is still in the "formative stage," with the
aspect of becoming green becoming more than just a trend. Green marketing results in more
monetary and other intangible benefits. Additionally, when consumers are emotionally invested
in a product, which is facilitated by the effective use of green marketing tactics, they are more
likely to pay a higher price for it.

Although the idea of green marketing is fairly effective in rich nations, it still appears that
unfavorable political influence is slowing its expansion in developing nations like Nepal. Lack of
commitment to environmental preservation, resistance to change, the dominance of traditional
marketing strategies, the unsuccessful implementation of policies, the lack of consumer
awareness and education, and the excessively high costs of eco-friendly products can all be seen
as major barriers to the promotion of green marketing as a more practical, long-term solution for
sustainability and environmental preservation.

Sharma and Poudel (2018) aimed at investigating how perceived green brand performance and
quality affect consumers' trust in green brands through boosting brand satisfaction. We examine
the relationships between perceived green brand quality and perceived performance with

23
perceived green brand trust, as well as the mediating effects of perceived green brand satisfaction
on these relationships, using a sample of 108 customers in Hong Kong who were observed
purchasing green tissue products. The findings demonstrate that green brand satisfaction is a
powerful mechanism by which perceived green brand quality and perceived performance
effectively promote trust in a green brand. Additionally, the results demonstrate that perceived
green brand quality and perceived performance positively contribute to green brand trust
indirectly.

2.3 Research Gap


There are several areas in which research on the influence of green brand positioning on green
purchasing intention is lacking. Specifically, there is a scarcity of studies that examine how
cultural differences impact perceptions of green brands and the likelihood of making green
purchases. While previous research, such as the study by Grier and Karecha (2011), has found
that cultural beliefs can impact consumers' attitudes towards environmentally friendly products,
further investigation is necessary to determine how cultural variations affect global perceptions
of green brands and consumers' intentions to purchase green products. Moreover, there is limited
information available regarding how customer values and beliefs influence the decision to
purchase environmentally sustainable products.

Thogersen and Bukowski (2008) found that consumers who held pro-environmental views were
more likely to purchase environmentally sustainable products. However, there is a need for
additional research to gain a more in-depth understanding of the specific values and beliefs that
drive the intention to purchase green products, as well as how these factors may differ across
various communities and cultures.

There is currently insufficient understanding of how green marketing strategies impact consumer
perceptions of green brands and their intention to purchase environmentally sustainable products.
Peattie (2001) found that green marketing tactics have a positive impact on consumer
perceptions of green brands; more research is needed to identify the specific marketing
techniques that are most effective in influencing these perceptions and driving green purchase
intent. The existing gaps in the literature suggest potential avenues for future research in this
area.

24
The role of social and psychological factors in influencing consumers' intentions to purchase
environmentally sustainable products is not well understood, and there is a lack of information in
this area. Spence and Pappu's (2010) research highlighted the impact of peer pressure and social
norms on consumer behavior; further investigation is needed to identify the specific social and
psychological variables that influence consumers' intentions to purchase green products.
Moreover, it is important to understand how these variables vary across different groups and
cultures.

2.4 Theoretical Framework


Figure 1
Theoretical Framework

Adopted from (Chin, Lawi, Sulaiman, Mas’od, Muharam, & Tat, 2019)

2.5 Operational Definition of Variables


Green Brand Positioning
Clancy and Trout (2002) have emphasized the significance of green brand positioning as a means
to achieve a competitive advantage in the market. Keller et al. (2011) have defined brand
positioning as an organizational effort to establish a specific place in the consumer's mind by
aligning the brand image with their preferences, resulting in repeat purchases. In the context of
green brand positioning, it is essential to prioritize environmental concerns and characteristics to
gain a competitive edge (Coddington and Florian, 1993; Hartmann et al., 2005). Situmorang et
al. (2021) have proposed an emotional and functional framework for a company's green brand
positioning. Various researchers have described brand positioning as an art of creating a product
that occupies a unique and specific place in the customer's mind, giving the company an

25
advantage over its competitors (Aaker and Joachimsthaler, 2000; Hooley et al., 1998; Kotler et
al., 2018; Pebrianti and Aulia, 2021; Wahyuningtias and Artanti, 2020). According to
Situmorang et al. (2021), the competitive advantage is determined by the distinctiveness and
differentiation of the product and brand from its competitors.

The current study differs from some recent studies which view green brand positioning as having
multiple dimensions (Borah et al., 2021; Pebrianti & Aulia, 2021; Situmorang et al., 2021) and
instead treats it as a one-dimensional construct, as seen in previous studies (Aulina & Yuliati,
2017; Baiquni & Ishak, 2019; Himawan, 2019; Tristiani et al., 2019).

Attitude towards Green Products

Consumers' attitudes towards green products are considered a critical factor in their decision to
purchase such products. These attitudes can be influenced by several factors, such as the opinion
of family, friends, and colleagues, the positive image associated with green brands, and the
emotional benefits that these products offer. (Mostafa, 2007; Solomon, 2014). (Blackwell,
Miniard, & Engel, 2009; Mostafa’s, 2007) research studies have suggested that a consumer's
environmental attitude plays a significant role in their evaluation and preference for a green
brand. Hartmann and Ibanez (2006) have proposed that green brand attitudes can be categorized
into two types, namely, functional and emotional benefits. Teng (2009) has defined brand
attitude as a consumer's evaluation of the brand. Moreover, according to Wang (2016), a green
brand's success is contingent upon meeting the expectations and values of the consumers.
Overall, the above factors indicate that consumer attitudes towards green brands are multi-
dimensional and play a vital role in the marketing of such products.

Green Brand Knowledge

Smith and Paladino (2010) found that consumers' future purchase intentions of organic products
are influenced by their knowledge and information about the product. The delivery of
environmental knowledge by the brand plays a vital role in creating positive attitudes toward the
brand (Chang & Wu, 2015). Suki (2016) defined green brand knowledge as the provision of
reliable information by a company through the brand about the unique attributes of its products.
To make environmentally friendly purchases, consumers need to enhance their knowledge about

26
green products, which can be achieved through reliable and informative brand communication
(Keller, 1993).

A study by Connel (2010) suggested that a lack of information or knowledge about a green brand
or product could negatively impact a consumer's intention to purchase. Research by Huang et al.
(2014) has shown that consumers with a high level of knowledge about environmental protection
are more likely to engage in environmentally friendly consumption, including the purchase of
green products for their families. Andres and Salinas (2007) also reported that green consumers
have a higher tendency to purchase green products. To increase consumer knowledge about a
specific brand or product, it is essential for companies to provide reliable information about the
brand's green attributes (Ganapathy et al., 2014). Consumers who have knowledge about
environmental protection and the importance of preserving the earth are more likely to purchase
green products and brands (Chen & Chang, 2012; Suki, 2016).

Green Purchase Intention

Cheng and Chayapa (2011) describe consumer buying decision as consumers who have
knowledge of a product and are willing to look up information about it online and ask for
feedback from other customers before making a decision to buy it.

To Oliver and Lee (2010), the intention to purchase a green product is defined as the consumer's
willingness to purchase an eco-friendly product after becoming aware of its environmental
attributes. Suki (2016) added that consumers intend to purchase products that have a lower
negative impact on society and the environment.

Schiffman and Wisenblit (2014) suggest that consumers may choose to purchase a green product
instead of a non-environmentally friendly one if they have a positive perception of the green
brand and hold favorable feelings toward it. Consumers are more likely to choose green brands
over non-green ones because of their awareness of environmental issues, according to Chen and
Chang (2012). Suki's (2016) study measures consumers' future purchasing intentions of green
products based on their concern for the environment, the environmental benefits of the products,
and their personal satisfaction.

27
CHAPTER III

RESEARCH METHODOLOGY
This chapter explains the methods that are used in to study The Perception of Green Brand
Positioning on Green Purchase Intention. It provides brief overview of the various
methodologies, including research design, description of populations and sample size, sampling
technique, sources of data, instrumentation, measurement and data analysis tool.

3.1 Research Design


The study focuses on identifying the effects of green brand positioning, attitude towards green
brands, green brand knowledge on green purchase intention. The sampling procedure, sample
characteristics, instrument development, content reliability, pre-test, statistical analysis plan,
data, and overall methodology used for this research are all covered in this chapter. For the study
descriptive research design has been used. A causal research strategy is applied to find the
impact of green products on green purchase intention. This study adopted quantative research
strategy. The data has been analyzed using SPSS and PLS 4.0.

3.2 Population and Sample


The study’s population is made up of every consumer who has used green products. Since the
population size is unknown sample size formula by Cochran (1963) was used. The following
formula by Cochran was used to determine the representative sample size for large populations.
𝑛0 = 𝑍 2 𝑝𝑞/e2

Where,

𝑛0 = Size of Sample

𝑍 2= abscissa of normal curve that cuts to an area α at tails

p = estimated proportion of the population with the given characteristic

q = 1-p

28
e= Error margin

The suggested value of p and q for the unidentified population is 50% for each. At a 95% level of
confidence, the z value is 1.96 and the sampling error e = 5%.

𝑛0 = 𝑍 2 𝑝𝑞/e2

𝑛0 = 1.962 ∗0.5∗0.5/0.052 = 384

Hence sample size of 384 respondents is taken for this study.

3.3 Sources of Data


This study is based on a primary source where the data were collected from administered
questionnaire. There were 19 standard questions based on the objectives of the study.
Questionnaires were distributed to consumers through printed form, emails, and other social
media. A total of 386 responses were obtained. Thus survey is based on primary data collected
from the consumers who used green products. Each measuring item is rated on a five-point
Likert scale, with 1 indicating strong disagreement and 5 indicating strong agreement on the
statements. Questionnaires were distributed to 400 respondents through printed form (50), emails
(200), and (150) other social media. A total of 386 responses were obtained.
3.4 Instrumentation
The questionnaire contains the constructs that measure Green Products Purchase Intention. The
constructs of the variable are drawn from the existing empirical studies and literature. The effect
of green brand positioning is measured using the scale developed by Suki (2016). The effect of
attitude towards green brand is measured by scale developed by Patrick Hartmann, Ibanez, &
Sainz, (2005). Similarly, the green brand knowledge is measured using the scale developed by
Suki (2016). Finally the green product purchase intention is measured by using the scale
developed by Suki (2016).

This study's questionnaire is divided into two sections. The questionnaire's first section asks
about personal information such gender, age, educational background, employment position,
frequency of purchases, sources that prompted respondents to make green purchases, and the
most conveniently purchased green products. The questionnaire’s second section includes close-
ended Likert-scale questions about independent and dependent variables.

29
3.5 Pilot Survey
It is crucial to carry out pilot testing while employing referral sampling to judge the method's
efficacy. Pilot testing assists the researcher in assessing the method's efficacy and the necessity
of additional referrals. For the pilot study, a total of 50 responses were received. Construct
reliability analysis tests were conducted. In order to make sure that the participants that are
referred are representative of the target demographic, pilot testing is also crucial. To measure
the scale's validity, Cronbach alpha was used. Cronbach alpha should be greater than 0.7,
according to Hair et al. (2014). The subsequent Cronbach alpha of variables green brand
positioning, attitude towards green products, green brand knowledge and green purchase
intention are 0.708, 0.625, 0.756 and 0.623 respectively. Two variables had a Cronbach alpha
value greater than 0.7, and two variables had Cronbach alpha less than 0.7 which could be
because of smaller sample size.

3.6 Validity and Reliability Analysis


3.6.1 Composite Reliability and Validity
After successful completion of data collection Cronbach Alpha was calculated to test the validity
and reliability of instruments used. The internal consistency of a set of items, or how closely
connected they are to one another as a group, is measured by Cronbach's alpha. It is regarded as a
gauge of the stability of the scale. Acceptable internal consistency is shown by data with
Cronbach's alphas and construct reliability composites higher than 0.7 (Fornell & Larcker, 1981).
The degree of similarity between the construct's items is measured by convergent validity. AVE
values above 0.5 signify good convergent validity (Fornell & Larcker, 1981).

Table 2
Composite Reliability and Validity
CR CR
Cronbac
Construct and Items Factor Loading (rho_a (rho_c AVE
h Alpha
) )
Attitude towards green products 0.701 0.702 0.817 0.527
ATG 1 0.738
ATG 2 0.712
ATG 3 0.704
ATG 4 0.709

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Green Brand Knowledge 0.594 0.603 0.783 0.546
GBK 2 0.718
GBK 4 0.723
GBK 5 0.775

Green Brand Positioning 0.506 0.516 0.75 0.501


GBP 2 0.682
GBP 3 0.655
GBP 4 0.78

Green Purchase Intention 0.668 0.679 0.819 0.602


GPI 1 0.832
GPI 2 0.71
GPI 3
0.781
Table 2 demonstrates the factor loading of the items and composite reliability and the validity of
the constructs. With the exception GBP 2 and GBP 3 of all items have the factor loading of
greater than the threshold of 0.7. Items GBP 2 and GBP 3 are kept in the model despite having
cronbach's alphas that are less than 0.7 since their AVEs are higher than the cutoff of 0.5. The
constructs' composite reliability and Cronbach's alphas are all more than 0.7, showing acceptable
internal consistency (Fornell & Larcker, 1981).
The degree to which the construct's items are related to one another is measured by convergent
validity. Due to the fact that all of the constructs have AVE values more than 0.5, the table
shows good convergent validity (Fornell & Larcker 1981). Table 2 serves as evidence that all
internal consistency standards have been met. Several items like GBP1, GBP3, GBP6, ATG5,
GBK1, and GBK3 have been dropped because their AVE was less than 0.05.
3.6.2 Discriminate Validity
When compared to all other constructs in the measurement model, the discriminant validity
evaluation verifies that a reflective concept has the strongest connections with its indicators (Hair
et al., 2020). Using the Fornell-Larcker criterion, one can evaluate discriminant validity, or how
distinct one concept in the model is from the other (Fornell & Larcker, 1981). Fornell-Larcker is
not adequate, according to Henseler et al. (2015), to evaluate discriminant validity. As a result, it

31
is suggested to use the cross-loading approach and the Heterotrait-Monotrait (HTMT) ratio scale
to test the discriminant validity.

Table 3
Fornell-Larcker Test
Variables ATG GBK GBP GPI
ATG 0.726
GBK 0.565 0.739
GBP 0.566 0.471 0.708
GPI 0.517 0.6 0.454 0.776

The Fornell-Larcker test is used to evaluate any correlation between the square root of AVE and
any other construct. At the diagonal of the table is a depiction of AVE's square root. The square
root of each AVE is bigger than the inter-construct correlation that follows, as seen in Table 3,
which suggests good discriminant validity. (Hair et al. 2020).

Table 4
Cross Loading
Attitude Towards Green Brand Green Brand Green Purchase
Green Products Knowledge Positioning Intention
ATG1 0.738 0.434 0.417 0.4
ATG2 0.712 0.421 0.426 0.39
ATG3 0.704 0.359 0.389 0.342
ATG4 0.749 0.422 0.41 0.364
GBK2 0.518 0.718 0.382 0.387
GBK4 0.411 0.723 0.292 0.383
GBK5 0.354 0.775 0.368 0.533
GBP2 0.323 0.306 0.682 0.32
GBP3 0.342 0.322 0.655 0.259
GBP4 0.516 0.371 0.78 0.372
GPI1 0.439 0.529 0.397 0.832

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GPI2 0.386 0.422 0.328 0.71
GPI3 0.375 0.436 0.325 0.781

Table 4 represents the cross loading. The cross-loading table shows the factor loadings of the
items of a measurement instrument on different factors, it can be used to evaluate the factor
structure of the instrument and the items-factors relationship. It can help identify if the items are
loading on the correct factors, and it can also help identify if the items are measuring multiple
constructs. Given that the cross-loading values of the items are less than 0.7 with other
constructs, the table demonstrates that there is no problem with cross-loading (Hair et al., 2020).

Table 5
HTMT
Original Sample Sample Mean 2.50% 97.50%
GBK -> ATG 0.889 0.893 0.765 1.019
GBP -> ATG 0.931 0.939 0.797 1.096
GBP -> GBK 0.848 0.857 0.677 1.043
GPI -> ATG 0.751 0.754 0.608 0.892
GPI -> GBK 0.923 0.926 0.781 1.048
GBI -> GBP 0.765 0.77 0.59 0.953

The average correlations of items measuring across the latent variable are compared to the
average value of the item correlations of the same variable to determine the Heterotrait-
Monotrait (HTMT) correlation ratio (Hair et al., 2019). When the HTMT crosses the 0.9
threshold, there may be problems with discriminant validity. The threshold value of 0.90 is
suggested by (Henseler, Ringle, & Sarstedt, 2015) for structural models containing constructs.
From Table 4, it is clear that, with the exception of Green Brand Positioning <-> Attitude
Towards Green Products and Green Purchase Intention <-> Green Brand Knowledge the
threshold value of 0.9 is not reached by any of the HTMT ratios. Even when there is a
relationship Green Brand Positioning <-> Attitude towards Green Products and Green Purchase
Intention <-> Green Brand Knowledge there is no 0 between the bias-corrected intervals.
Therefore, discriminant validity at constructs is not a problem.

3.7 Data Analysis Technique


Data analysis was carried out in three steps, including data screening, measurement modeling,
and structural equation modeling. The Shapiro-Wilk test was then used to see whether 386 data

33
were normal. Further analysis was carried out in Smart PLS 4.0 because the findings were not
normal. Average variance extracted (AVE), composite reliability, and Cronbach's alpha were
calculated to evaluate the data's internal consistency.

Other metrics, including the Heterotrait-Monotrait Ratio, Cross Loading, and Fornell Larcker
Criterion, were applied to support the discriminant validity. The Fornell Larcker requirements
state that each construct's AVE must be higher than its correlation with other constructs. It is
recognized as evidence that discriminant validity has been established between two reflective
constructs when the HTMT score is less than 0.9. Cross loading percentages below 0.7 further
bolster the construct's discriminant validity (Henseler et al. 2014).

Descriptive statistics were also conducted for the purpose of measuring a demographic profile
using IBM SPSS 26. Preliminary data analysis, which included frequency, percentage, mean, and
standard deviation computations, was done in order to evaluate the respondents' general profile.
A correlation analysis was carried out to comprehend the relevance of the relationship between
green brand positioning, attitude towards green products, green brand knowledge and green
purchase intention. The modeling of structural equations was then done using Smart PLS 4. The
route model was used to assess every hypothesis. By assessing the VAF after determining the
direct and indirect causal links among the variables, it was possible to evaluate the impact of
mediation of organizational learning culture on the relationships between personality traits and
information sharing behavior.

3.8 Ethical Consideration


This research adheres to ethical standards to ensure the rights of individuals who are the subjects
of the study or are impacted by it. The study design, data collection, and analysis present ethical
considerations as they involve human participants. The ethical principles, rules, and regulations
of the university were followed during the conduct of the survey and composition of the report
(Saunders et al., 2019).

The participants in this study provided their consent to participate and were provided with a
detailed explanation of the study's purpose and the researcher's background through a survey
questionnaire. The principle of informed consent was followed, as the participants were fully
aware of their participation, the potential outcomes, and were informed that their responses
would remain confidential. They were also informed that their participation was voluntary, and

34
they could choose to withdraw at any time for any reason. The ethical principles of the university
were followed in accordance with the guidelines outlined by Bryman and Bell (2015) and
(Saunders et al. 2019).

The primary objective of the researcher was to establish a conducive and collaborative
atmosphere during the survey, and the participants were assured that their information would
only be utilized for academic purposes. Consequently, the privacy of the respondents and the
confidentiality of the data were safeguarded (Bryman & Bell, 2015).

Additionally, to demonstrate ethical research conduct, the researcher ensured that proper
citations and references were used to acknowledge the original creators of the concepts and ideas
incorporated in this study. This measure aimed to avoid plagiarism and uphold academic
integrity.

The researcher took various measures to guarantee a comfortable and supportive survey
environment while maintaining the confidentiality and privacy of the participants' data.
Furthermore, ethical research practices were followed by acknowledging the sources of the ideas
used in the study, thus avoiding plagiarism and respecting academic norms.

35
CHAPTER IV

ANALYSIS AND RESULTS


This chapter consists of data analysis and findings on the relationship between green brand
positioning, attitude towards green products, green brand knowledge and green products
purchase intention. IBM SPSS is used to run a descriptive analysis and determine the
respondents' demographic profile. Using Smart PLS 4, the general model and hypotheses were
tested.
4.1 Demographic Profile of Respondents
Table 6
Demographic Profile of Respondents
Demographic Frequency Percentage
Gender Male 209 54.1
Female 176 45.6
Age Below 25 57 14.8
26 to 35 124 32.1
35 to 45 83 21.5
45 to 55 84 21.8
55 and above 38 9.8
Education Level +2/Intermediate/Diploma 62 16.1
Bachelor’s degree 124 32.1
Master’s Degree 163 42.2
Doctorate Degree 37 9.6
Work Status Students 60 15.5
Housewife 55 14.2
Private Job 128 33.2
Government Job 65 16.8
Unemployed 47 12.2
Business Owner 31 8.0
Monthly income 0-20000 92 23.8
20,000-50,000 86 22.3
50,000-80,000 107 27.7
80,000-110,000 73 18.9

36
110,000-above 28 7.3

Table 6 in the study provides the demographic information of the respondents who participated
in the online questionnaire. A total of 358 responses were collected, and the respondents were
categorized based on various factors such as gender, age, monthly income, education level, work
status, etc.
The study found that the majority of the respondents were male (54.1%), while the rest were
female (45.6%). In terms of age, the largest representation was from the 26-35 years age group
(32.1%), followed by 45-55 years (21.8%) and 35-45 years (21.5%). The least representation was
from the age groups below 25 years and above 55 years, accounting for only 14.8% and 9.8%
respectively.
Regarding education level, 16.1% of the respondents had completed +2/Intermediate/Diploma,
32.1% had a Bachelor's degree, 42.2% had a Master's degree, and 9.6% had a Doctorate degree.
The work status of the respondents was diverse, with 15.5% being students, 14.2% being
housewives, 33.2% being private jobholders, 16.8% being government jobholders, 12.2% being
unemployed, and 8% being business owners.
In terms of monthly income, the majority of the respondents earned between Rs. 50000-80000,
while those earning more than 110,000 were minimal. The distribution of the respondents'
monthly income was grouped into five categories, with 23.8% earning below 20,000, 22.3%
earning between 20,000 and 50,000, 27.7% earning between 50,000 and 80,000, 18.9% earning
between 80,000 and 110,000, and 7.3% earning more than 110,000.
In conclusion, the study provides a comprehensive analysis of the demographic information of
the participants, giving insight into their gender, age, education level, work status, and monthly
income.
Table 7
Frequency of Green Product Purchased in the past 3 months
Frequency Percent
1-2 times 101 26.2
3-4 times 146 37.8
5-6 times 99 25.6
More than 6 40 10.4

37
Table 7 provides information about the frequency of green product purchases made by a group of
people over the past three months. The "Frequency" column lists the number of times each
individual has purchased green products in the past three months, grouped into four ranges: 1-2
times, 3-4 times, 5-6 times, and more than 6 times. For instance, 26.2% of the individuals
purchased green products 1-2 times, 37.8% purchased 3-4 times, 25.6% purchased 5-6 times, and
10.4% purchased green products more than 6 times in the past three months. Overall, this table
gives us a clear picture of the frequency of green product purchases made by the group in the
past three months and helps us understand the trend in their behavior.

Table 8

Source motivated to buy green product

Frequency Percent
Family members 58 15
Relatives 76 19.7
Friends 84 21.8
Word of Mouth 104 26.9
Others 64 16.6

This table shows the source of motivation for individuals to buy green products. The data is
broken down by frequency and percent. For instance, 58 individuals (15% of the total) were
motivated to buy green products because of their family members, 76 individuals (19.7% of the
total) were motivated by their relatives, 84 individuals (21.8% of the total) were motivated by
their friends, 104 individuals (26.9% of the total) were motivated by word of mouth, and 64
individuals (16.6% of the total) were motivated by other sources. This table provides insight into
the most influential sources of motivation for individuals to purchase green products.

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Table 9

Most conveniently purchased green product

Frequently purchased Green Product Frequency Percent


Organic Food 70 18.1
Organic Food Clothing 37 9.6
Organic Food Clothing, Beauty Products 27 7
Organic Food Clothing, Beauty Products, Green electronic
products 6 1.6
Organic Food Clothing, Green electronic products 12 3.1
Organic Food Beauty Products 21 5.4
Organic Food Beauty Products, Green electronic products 15 3.9
Organic Food , Green electronic products 42 10.9
Organic Food, Others 5 1.3
Clothing 19 4.9
Clothing, Beauty Products 12 3.1
Clothing, Beauty Products, Green electronic products 5 1.3
Clothing, Green electronic products 11 2.8
Beauty Products 35 9.1
Beauty Products, Green electronic products 15 3.9
Beauty Products, Others 5 1.3
Green electronic products 30 7.8
Green electronic products, Others 7 1.8
Others 12 3.1
Table 9 summarizes the frequency and percentage of green products purchased by consumers.
The most frequently purchased green product is organic food, 18.1% of the total. The table also
indicates that some consumers purchase combinations of green products, such as "Organic Food
Clothing, Beauty Products" or "Clothing, Beauty Products, Green electronic products ". The
"Others" category in the table represents green products that are not listed in the table constitute
3.1%. This category serves as a catch-all for green products that are not listed in the table and

39
provides a general idea of the proportion of total purchases represented by green products that
are not specifically listed.

4.2 Descriptive Statistics of Independent Variables and Dependent Variables

Table 10
Descriptive Statistics of Green Brand Positioning

Std.
Green Brand Positioning Items Mean Deviation
Price matters when consumers buye green
products. GBP2 4 0.905
Advertisement helps me know about green
branding. GBP3 3.9 0.986
Green items have satisfied my individual needs
and wants. GBP4 3.8 0.917
Green Brand Positioning 0.66
3.9

The descriptive data are shown in the table. Responses range from strongly disagree to strongly
agree for each of the issues. In the table, it can be seen that the majority of respondents tend to
agree with the assertion that green brand positioning effects green purchase intention because the
mean value of every item is more than 3. The highest mean is 4 which are GBP2 where
respondents agree that price is important while purchasing green products. Similarly, the lowest
mean is 3.8 of GBP4 which indicates lowest level of agreement that green products have slightly
matched the individual wants and needs. In the same way the highest standard deviation is 0.986
for GBP3 indicating maximum deviation of the responses. The lowest standard deviation is for
GBP2 which is 0.905 showing lowest deviation.

To determine if the respondents are leaning towards agreement or they are neutral about the
variables, one sample t-test was conducted. The results of one sample t-test indicate that there is
a 95% confidence interval that the mean for items GBP2, GBP3, GBP4 are 4, 3.9 and 3.8
respectively. Green brand positioning, attitude toward green products, and green purchasing is
larger than 3, indicating that the responses are not neutral but rather lean toward the agree side.

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Table 11

Attitude towards Green Products

Std.
Attitude Towards Green Products Items Mean Deviation
I have faith in the eco-friendly things I use.
ATG1
4.13 0.772
I think the things I use are dedicated to addressing
environmental issues. ATG2
3.9 0.887
I think the materials used to make the things I use are safe
for the environment. ATG3
3.98 0.871
I think the company goes above and beyond to save the
environment. ATG4
3.93 0.877

Attitude towards green products 3.985 0.6175

Table 11 shows the descriptive data. There are altogether four statements. According to the
overall mean score, which is 3.985, the respondents are skewed to the agree side. Since, the
average mean is above 3 it shows that attitude influences green purchase intention. The highest
mean score is of the item ATG1 which is 4.13 indicating that respondents believe the products
they use. Whereas the lowest mean is of the item ATG2 which is 3.98 indicating lowest level of
agreement. The highest standard deviation is 0.887 for ATG2 indicating maximum deviation and
lowest standard deviation is 0.772 indicating lowest deviation for the item ATG1.
The results of one sample t-test indicate that there is a 95% confidence interval that the mean for
items ATG1, ATG2, ATG3, and ATG4 are greater than 3 indicating that the responses are not
neutral but rather lean toward the agree side.

Table 12

Green Brand Knowledge

Std.
Green Brand Knowledge
Items Mean Deviation
3.87 0.817
The environmental performance of green products meets my GBP2

41
expectations.
I choose green products because they are favorable to the
environment. GBP4
3.97 0.786
I choose green products over others because they are better
for the environment. GBP5
4.03 0.851

Green Brand Knowledge 3.96 0.60

Table 12 exhibits descriptive data of green brand knowledge. There are altogether three
statements. The responses are leaning toward the agree side, as indicated by the overall mean
score of 3.96. The highest mean score is 4.03 of the item GBP5 indicating that the respondents
agree they choose green product because it is better for the environment. The lowest mean score
is 3.87 indicating lowest level of agreement among all other statements. Standard deviation of
0.851 is the highest showing maximum deviation and standard deviation of 0.786 shows
minimum deviation of the item GBP4.
The results of one sample t-test indicate that there is a 95% confidence interval that the mean for
items GBK2, GBK4, GBK5 are greater than 3 indicating that the responses are not neutral but
rather lean toward the agree side.

Table 13

Green Purchase Intention

Std.
Green Purchase Intention
Items Mean Deviation
I want to purchase green products because I care
about the environment. GPI1
4.05 0.865
Because green products are better for the
environment, I intend to buy them in the future. GPI2
4 0.874
Overall, because green products are environmentally
beneficial, I am happy to acquire them.. GP13
4.12 0.821

Green Purchase Intention 4.06 0.66

Table 13 shows descriptive data for green purchase intention. The overall mean score is 4.06
which shows the responses are leaning towards the agree side. The highest mean score is 4.12 of
the item GPI3 indicating the respondents are glad to purchase green product because it is

42
environment friendly. The lowest mean score is 4 for the item GPI2. The highest standard
deviation is 0.865 showing maximum deviation whereas the standard deviation of 0.821 shows
minimum deviation.
The results of one sample t-test indicate that there is a 95% confidence interval that the mean for
items GPI1, GPI2, GPI3 are greater than 3 indicating that the responses are not neutral but rather
lean towards the agree side.

4.3 Normality Test


Table 14
Shapiro-Wilk Test

Variables Statistic df Sig.


Green Brand Positioning 0.908 386 0
Attitude Towards Green Product 0.875 386 0
Green Brand Knowledge 0.904 386 0
Green Purchase Intention 0.868 386 0
Table 13 summarizes the results of a Shapiro-Wilk test, which is a statistical test used to assess
the normality of a sample. The test determines whether the sample is drawn from a normally
distributed population. The variables that were tested for normality, including Green Brand
Positioning, Attitude Towards Green Product, Green Brand Knowledge, and Green Purchase
Intention. The Shapiro-Wilk statistic is a value between 0 and 1 that measures the goodness of fit
of the sample to a normal distribution. A significance level of 0 indicates that the sample is not
normally distributed, while a significance level greater than 0 indicates that the sample is
normally distributed.

In this table, the significance level of the test statistic is 0 for all variables, which means that the
sample is not normally distributed. This result indicates that the sample does not follow a normal
distribution and that alternative methods of analysis, such as non-parametric tests, should be used
to analyze the data.

43
4.4 Collinearity Test
Table 15
VIF
Attitude Towards Green Brand Green Brand Green
Green Products Knowledge Positioning Purchase
Intention
Attitude Towards 1.77
Green Products
Green Brand 1.545
Knowledge
Green Brand 1.548
Positioning
Green Purchase
Intention
Table 15 displays the variance inflation factor (VIF) for a set of variables. The VIF is a measure
of the degree of multicollinearity among the predictor variables in a multiple regression analysis.
The table clearly demonstrates that there are no issues with multicollinearity because every
construct used in the study had items with variance inflation factors (VIF) fewer than 5.

4.5 Correlation Matrix


Table 16
ATG GBK GBP GPI
ATG 1 0.565 0.566 0.517
GBK 0.565 1 0.471 0.6
GBP 0.566 0.471 1 0.454
GPI 0.517 0.6 0.454 1
** Correlation is significant at the 0.05 level (2-tailed).

44
This table is a correlation matrix; it shows the strength and direction of the relationship between
different variables. The table shows the correlation coefficients between four variables: "Attitude
towards Green Products", "Green Brand Knowledge", "Green Brand Positioning", and "Green
Purchase Intention". The table shows that at a 0.05 p-value, every correlation value is significant.

Relationship between Attitude towards Green Products and Green Purchase Intention
Table 15 shows that there exists a moderate positive relationship (r=0.5.7) between attitude
towards green products and green product purchase intention. Thus, attitude towards green
products tends to increase green product purchase intention.
Relationship between Green Brand Knowledge and Green Purchase Intention
Pearson correlation of (r=0.6) shows that there exists a moderate positive relationship between
Green Brand Knowledge and Green Purchase Intention. It means that if green brand knowledge
increases then intention to purchase green products also subsequently increases. The more the
number of knowledgeable consumers the more will be their intention to purchase green products.
Relationship between Green Brand Positioning and Green Purchase Intention
Pearson correlation of (r=0.454) indicates that there is a mild positive relationship between
Green Brand Positioning and Green Purchase Intention. As green brand positioning increases the
intention to purchase green products also rises but slowly as indicated by the mild relationship
between them.
4.6 Structural Equation Model Analysis
Graphical Output of SEM

45
The path coefficient and R2 value of the developed structural model are displayed in Figure 2.
According to figure R2 value illustrates the model's ability to predict outcomes since it indicates
how much of the endogenous construct's variance can be explained (Hair et al., 2017). The figure
shows mild predictive power of green purchase intention which has R2 value of 0.42. It shows
that only 42% of variation in green purchase intention is explained by independent variables.

46
Table 17
Path Coefficient
Original sample Sample mean SD T value P value
ATG -> GPI 0.199 0.201 0.061 3.245 0.001
GBK -> GPI 0.42 0.418 0.059 7.107 0.000
GBP -> GPI 0.144 0.148 0.045 3.213 0.001
The path coefficient is a measure of the direct effect of one variable on another variable,
controlling for the effects of other variables in the model. The path coefficients are similar to
correlation coefficients, but they also take into account the relationship between other variables.

The path coefficients in this table represent the direct effect of each independent variable
(Attitude Towards Green Products, Green Brand Knowledge, Green Brand Positioning) on the
dependent variable (Green Purchase Intention), controlling for the effects of other variables in
the model. The p-value of a path coefficient estimate can be used to evaluate the significance of
the relationship between the independent and dependent variables, in this table we can see that
all path coefficients have a p-value less than 0.05, this means that the relationship between the
independent and dependent variables is statistically significant.

Table 18
R Square

Original Sample Bias 2.50% 97.50%


sample mean
Green Purchase 0.42 0.429 0.009 0.3 0.518
Intention
Table 18 shows the results of a statistical analysis known as R-Squared, which is used to
evaluate the proportion of variance in the dependent variable that is explained by the independent
variables in a regression model. In this table, the R-Squared value of 0.42 indicates that 42% of
the variance in "Green Purchase Intention" is explained by the independent variables in the
model. An R-squared score of 0.20 is typically regarded as strong in the study of consumer
behavior. (Hair et al., 2011; Henseler et al., 2009) As a result, exogenous variables have a
significant impact on endogenous variables.

47
Table 19
F Square
Original Sample Standard T P
sample mean deviation statistics values
ATG -> GPI 0.038 0.044 0.026 1.452 0.147
GBK -> GPI 0.196 0.203 0.065 3.026 0.002
GBP -> GPI 0.023 0.027 0.016 1.458 0.145

F-square is a measure of effect size which is used to evaluate the proportion of variance
explained by an independent variable in a multiple regression analysis. This table shows the
results of a statistical analysis that calculates the F-square values for each independent variable in
the model and its associated statistics. F-square value ranges from 0 to 1, with higher values
indicating that the independent variable explains more variance in the dependent variable. In this
table, the F-square values for the independent variables "Attitude Towards Green Products",
"Green Brand Knowledge" and "Green Brand Positioning" are 0.038, 0.196 and 0.023
respectively. These values indicate that these independent variables explain a small proportion of
the variance in the dependent variable "Green Purchase Intention".

Table 20
SRMR

Original sample Sample mean 95% 99%


Saturated model 0.093 0.065 0.07 0.073
Estimated model 0.093 0.065 0.07 0.073
This table shows the results of a statistical analysis known as the Standardized Root Mean
Square Residual (SRMR) analysis, which is used to evaluate the goodness of fit of a structural
equation modeling (SEM) model. In order to avoid model misspecification, Henseler et al.
(2014) presented the SRMR as a PLS-SEM goodness of fit metric. Hu and Bentler (1999) used a
more cautious criterion of a good match, defining it as SRMR values less than 0.10 or 0.08.
According to Table 19, the model's SRMR value is 0.093. As a result, it is concluded that the
model fit for this research investigation is generally good.
48
Table 21
Hypothesis Testing Summary
Hypothesis Path Coefficient P value Hypothesis Support
H1 GBP -> GPI 0.144 0.001 Yes
H2 ATG -> GPI 0.199 0.000 Yes
H3 GBK -> GPI 0.42 0.001 Yes
The table presents the results of a statistical analysis testing three hypotheses (H1, H2, and H3)
about the relationships between three variables: GBP (variable 1), ATG (variable 2), and GBK
(variable 3), and the dependent variable GPI (variable 4). The hypothesis being tested is whether
the independent variables (GBP, ATG, and GBK) are related to the dependent variable (GPI).

In this table, all three hypotheses are supported, meaning that the results provide evidence that
each independent variable (GBP, ATG, and GBK) is related to the dependent variable (GPI) in
the way hypothesized. A p-value of less than 0.05 (0.001 in this table) indicates that the
relationship is statistically significant. The path coefficients suggest that GBK has the strongest
relationship with GPI, followed by ATG and then GBP.

4.7 Major Findings


The major key findings are summarized.

 Out of 386 respondents 54.1% of the respondents were male and 45.6% were female.
This shows that majority of the respondents were male.
 Largest proportion of individuals in the sample fall within the 26 to 35 age group
representing 32.1%, in this age group, which is the largest proportion of any of the five
age groups. There is a relatively even distribution of individuals across the five age
groups. The second largest proportion of individuals falls within the 45 to 55 age group
21.8%, and the third largest proportion falls within the 35 to 45 age group, with 83
individuals, or 21.5%.
 In terms of academic qualification, majority of individuals in the sample have either a
Bachelor’s degree (32.1%) or a Master’s Degree (42.2%). 16.1% completed intermediate
degree and only 9.6% had completed Doctorate degree.

49
 According to the data in the table, over 33.2% of the population in this demographic is
employed, indicating that the majority of people. 16.8% of people worked for the
government. 15.5% of the population is still enrolled in school, while 12.2% of the
population is unemployed, a far lesser percentage.
 This demographic includes 386 people in total. The second largest proportions of
individuals fall within the 0-20,000 income group 23.8%. The largest proportion of
individuals in the sample fall within the 50,000-80,000 income group 27.7%. 22,3%
made between 20,000 and 50,000. Between 80,000 and 110,000 per month was the range
for 18.9%. Only 7.3% earned monthly income above 110,000.
 In terms of frequency of green product purchase, 26.2% of the individuals purchased
green products 1-2 times, 37.8% purchased 3-4 times, 25.6% purchased 5-6 times, and
10.4% purchased green products more than 6 times in the past three months.
 The most common source of information for green product purchase was word of mouth
with 104 people or 26.9%. Friends were the second most common source with 84 people
or 21.8%. The third most common source was relatives with 76 people or 19.7%. The
fourth most common source was family members with 58 people or 15%. The least
common source was others with 64 people or 16.6%.
 The most frequently purchase green product was organic food, with 70 frequency
(18.1%). The next most frequently purchased products are organic food and green
electronic products with 42 frequency (10.9%) and beauty products with 35 frequencies
(9.1%). The least frequently purchased green product combination is organic food,
clothing, beauty products, and green electronic products with only 6 frequencies (1.6%).
 The overall mean score of green brand positioning is 3.9 indicting that it influences green
purchase intention.
 In the same way the average score of attitude towards green product is 3.985 indicating
that a positive attitude towards environment and sustainability influences the purchase of
environmental friendly products.
 The average score of green brand knowledge is 3.96 indicating that knowledgeable
consumers that are aware of the environmental problems and know the ways to minimize
them purchase of green products.

50
 The correlation matrix reveals a moderate degree of correlation among the variables. The
correlation between GBK and GPI is 0.6, which indicates a moderate to strong positive
correlation between these two variables. The correlation between GBP and GPI is 0.454,
which indicates a moderate positive correlation between these two variables. The
correlation between ATG and GPI is 0.517, which indicates a moderate positive
correlation between these two variables.
 According to the Shapiro-Wilk test, none of the variables (green brand positioning
attitude toward green products, green brand knowledge, and green purchase intention) are
normally distributed because their significance levels are all less than 0.05 (0.000).
 The path coefficients have a p-value less than 0.05, meaning that the relationship between
the independent variables GBP, ATG, GBK and dependent variable GPI is statistically
significant.
 F-square values for the independent variables ATG, GBK, AND GBP are 0.038, 0.196
and 0.023 respectively indicating that these independent variables explain a small
proportion of the variance in the dependent variable GPI.
 The sample mean and original sample SRMR values are all below the 95% and 99%
thresholds, indicating that the estimated model adequately fits the data.
 R-Squared value of 0.42 indicates that 42% of the variance in "Green Purchase Intention"
is explained by the independent variables in the model.

51
CHAPTER V

DISCUSSION, CONCLUSION, AND IMPLICATION


The summary of the study is contained in this chapter. Discussion, analysis, and implications
related to the study are included in this chapter. Conclusions have been drawn after a thorough
summary of the entire body of research. Based on prior study in the relevant field and a number
of consequences, the research area has been outlined.

5.1 Discussion
This study investigated how customers perceive their desire to make green purchases by looking
at the effects of green brand positioning, attitudes toward green products, and green brand
knowledge. The primary objective was to study the effect of variables like green brand
positioning, attitude towards green brands, green brand knowledge on the dependent variable
green purchase intention. Three hypotheses were developed to examine the relationship between
these variables. The results of the hypothesis testing were analyzed and discussed in relation to
the order of the research hypotheses.

In order to gain insight into the direct and indirect impacts of these factors on one another, a
number of hypothesis tests were used in the research. The outcomes of these hypothesis tests
offer insightful information on the link between these variables and will assist businesses and
consumers in making knowledgeable choices regarding their intention to make green purchases.

The study's findings indicated that the association between green brand positioning and the
intention to buy green products is favorable and significant. This outcome is consistent with
findings from earlier research (Huang et al., 2014; Suki, 2016). Suki (2016) cited that green
brand positioning as one of the crucial tactics that might influence a consumer's decision to buy
environmentally friendly goods. Descriptive findings indicated that through strong green brand
positioning customers were knowledgeable and selective when making their purchases. Thus, it
is crucial for marketers to position their brands as environmentally friendly when promoting their
products. Additionally, green products satisfied the needs and preferences of the consumers

52
This finding is in agreement with (Chen and Chang's 2012) and Suki's (2016) findings. In fact,
information on green brand products may raise consumers' willingness to buy green goods and
heighten their awareness of environmental protection (Juwaheer, Pudaruth, & Noyaux, 2012). In
support, Huang et al. (2014) noted that consumers who have a high level of green awareness are
more inclined to buy green products. The best indicator of consumers' intentions to make green
purchases is brand knowledge. Respondents were in line with the expectation that green products
met their needs. In the same way they agreed with the fact that green products had more
environmental benefits.

The findings indicated a substantial and favorable correlation between attitudes toward green
brands and intentions to buy green products. The result agrees with earlier research (Suki, 2016;
Huang et al., 2014). Perhaps one of the key elements affecting consumers' intentions to purchase
green products is the green product's environmental reputation. Additionally, some consumers
think that purchasing green products will uphold their commitment to environmental protection.

5.2 Conclusion
The study on the perception of green brand positioning and its effect on green purchase intention
revealed that consumers are becoming increasingly aware of environmental issues and are
inclined towards environmentally friendly products. Effective green brand positioning can
positively influence consumer perceptions and lead to a higher intention to purchase green
products. Companies should consider highlighting their environmentally friendly practices and
promoting a green brand image to attract eco-conscious consumers and enhance their green
purchase intention.

The findings of the study indicate that the variables green brand positioning, attitude towards
green brands and green brand knowledge impacted green purchase intention. These factors were
dominant in increasing the purchase decision of the green products. A proper positioning of the
green brands could increase the purchase of ecofriendly products. Proper knowledge about green
brands makes consumers aware about the environmental problems and makes them responsible
towards maintaining sustainable consumption which would further promote the purchase of
green products. The more the environmental friendly products the more is the intention to buy
green products by the conscious consumers.

53
Furthermore, the findings of this study have implications for both business practitioners and
policy makers. For businesses, the results highlight the importance of effective green branding in
attracting environmentally conscious consumers. Policy makers, on the other hand, can use the
findings of this study to inform the development of policies and initiatives aimed at promoting
sustainable consumption and production patterns.

Moreover the results of this study demonstrate that there is a positive and significant relationship
between the perception of green brand positioning, attitude towards green products, and green
purchase intention. The results further indicated that green brand knowledge impacted on green
purchase intention the most than other variables. These findings can inform both business and
policy-making efforts aimed at promoting green brand knowledge for sustainable consumption
patterns and protecting the environment through the purchase of green products.

5.3 Implication
This study adds to the body of knowledge about environmentally friendly products purchase. The
companies and marketers can potentially increase their sales of environmentally-friendly
products by strategically positioning their brands as "green" and promoting eco-friendliness in
their marketing campaigns. The study can also provide insights on how consumers perceive and
respond to such marketing efforts, which can inform future marketing strategies aimed at
promoting sustainable consumption.

5.3.1 Managerial Implication


In order to inform and raise customer knowledge of the company's products and benefits,
marketing managers should place an emphasis on green brand positioning by enhancing green
marketing programs and enhancing the green features of their products. GBP's meticulous
creation and effective implementation of a plan will not only make consumers informed of the
advantages of green products, but it will also improve their attitude toward products, increasing
the likelihood that consumers will purchase them. A properly applied GBP strategy can result in
a more positive perception of the GBK, which in turn can help the creation and upkeep of a
green brand for businesses.

The study's insights are beneficial for marketing managers who aim to develop effective green
marketing strategies. By recognizing the critical role of green brand attitudes, managers can
focus on designing branding and communication strategies that create positive perceptions and

54
attitudes toward environmentally friendly products. Moreover, by emphasizing the importance of
green brand knowledge, marketers can design campaigns that educate customers about the
benefits and features of environmentally friendly products, which can influence their attitudes
and purchase intentions positively.

Businesses and marketers must comprehend how consumers react to environmental claims in
order to develop genuine and transparent eco-friendly branding and marketing strategies.
Customers are growing more environmentally conscious and knowledgeable, and they are more
willing to buy items from companies they believe to be really devoted to sustainability.

Businesses can enhance the likelihood that customers will make a purchase by using media to
inform consumers about the added benefits of their products, such as energy savings or the
reduction, reuse, and recycling of pollutants. Governmental agencies, on the other hand, can
educate the public about environmental protection and the detrimental repercussions of problems
with the environment, such as pollution and the greenhouse effect. If there is strong brand
awareness and positioning for green products, purchase intent for green products may increase.

5.3.2 Implication for Future Research


The current study assessed the impact of green brand positioning, brand knowledge, and brand-
attitude on green purchase intention. Future research can address the shortcomings of the current
limitations.
The sample for the study was taken only from Kathmandu. The findings may not be
representative of all consumers of goods in Nepal, as different regions or cultures may have
varying attitudes and behaviors towards environmental sustainability and green purchase
intention. This may limit the generalizability of the findings to the larger population of Nepal.
Therefore, the future researcher could gather data from other areas in Nepal to overcome this
limitation and generalize the findings. By gathering data from a larger, more diverse sample, the
researcher could ensure that the results are more representative of the population, which would
increase the validity and reliability of the findings. This would involve a larger study that
includes a more geographically and culturally diverse sample of participants

Theory of planned behavior, theory of reasoned action and attitude behavior context theory are
the theories the study is relied on. There are several other theories that can be used by the future
researcher.

55
The moderating and mediating variables have not been included in this study. Future studies
could include moderating and mediating variables to gain a deeper understanding of the complex
relationships between green brand positioning and green purchase intention. This could help to
identify the underlying mechanisms and factors that drive the relationship and provide insights
into the most effective marketing strategies for promoting environmentally-friendly products.

The three variables (green brand positioning, green brand knowledge, and attitude toward green
brand) that affect consumers' intentions to buy green products were the only ones the study
concentrated on. Future research should also look into additional contributing elements that
affect the intention to buy green items, such as green trust and green consumption value.

56
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APPENDIX
PERCEPTION OF GREEN BRAND POSITIONING ON GREEN PURCHASE
INTENTION
Section A: Demographics
1. Gender: a. Male [ ] b. Female [ ]
2. Age Group: a. Below 25 [ ] b. 26-35 [ ]
c. 36-45 [ ] d. 46-55 [ ] e. 55 & above [ ]
3. Level of Education:
a. [ ] +2/Intermediate/Diploma b. [ ] Bachelor’s degree
c. [ ] Master’s Degree d. [ ] Doctorate Degree

4. Work Status:
a. Student [ ] b. Housewife [ ] c. Private Job [ ]
d. Government Job [ ] e. Unemployed [ ] f. Professional [ ]

5. Monthly Family Income:


a. Below Rs 20,000[ ] b. Rs. 20,000- Rs. 50,000 [ ] c. Rs. 50,000- Rs80,000 [ ]
d. Rs. 80,000- Rs. 1,10,000 [ ] e. Rs. 1,10,000 & above [ ]

6. Frequency of Green Product Purchased in the past 3 months


a. 1-2 times [ ] b. 3-4 times [ ] c. 5-6 times [ d. More than 6 times [ ]

7. Source motivated to buy green product


a. Family members (i.e., parents & siblings) [ ]
b. Relatives [ ]
c. Friends [ ]
d. Word of Mouth [ ]
e. Others [ ]

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8. Most Conveniently purchased green product
a. Organic food [ ]
b. Clothing [ ]
c. Beauty products [ ]
d. Green electronic products [ ]
e. Others [ ]

Section B:
Please make a circle on the statements below where 1= Strongly Disagree, 2= Disagree, 3=
Neutral, 4= Agree and 5= StronglyAgree
Green Brand Positioning
Code Statement SD D N A SA
GBP 1 Quality is important when consumers purchase green 1 2 3 4 5
products.
GBP 2 Price is important when consumers purchase green 1 2 3 4 5
products.
GBP 3 I get to know about green branding through 1 2 3 4 5
advertisement.
GBP 4 Green products have matched my personal wants and 1 2 3 4 5
needs.
GBP 5 Green product always overpriced. 1 2 3 4 5
GBP 6 I prefer to purchase environmentally green products. 1 2 3 4 5

Attitude towards Green Brand


Code Statement SD D N A SA
ATG 1 I believe in the green products that I use. 1 2 3 4 5
ATG 2 I believe the products that I use are committed to 1 2 3 4 5
tackling environmental problems.
ATG 3 I believe the products I use are made of 1 2 3 4 5
environmentally friendly materials.
ATG 4 I believe the company makes optimal efforts to 1 2 3 4 5
protect the environment.
ATG 5 Environmental care products that are environmentally 1 2 3 4 5
friendly are in line with my expectations.

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Green Brand Knowledge
Code Statement SD D N A SA
GBK 1 Going green products could be a beneficial 1 2 3 4 5
investment in long term
GBK 2 Green product’s environmental performance meets 1 2 3 4 5
my expectations,
GBK 3 Lack of availability of access is a major reason for 1 2 3 4 5
low popularity and demand of green products.
GBK 4 I purchase green product because it is environmental 1 2 3 4 5
friendly.
GBK 5 I purchase green product because it has more 1 2 3 4 5
environmental benefit than others.

Green Purchase Intention


Code Statement SD D N A SA
GBP 1 I intend to buy green product because of my 1 2 3 4 5
environmental concern.
GBP 2 I expect to purchase green product in the future 1 2 3 4 5
because of its environmental benefits.
GBP 3 Overall, I am glad to purchase green product because 1 2 3 4 5
it is environmental friendly.

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