Exploring Consumers’ Purchase Intention toward Green Products in an

Emerging Market: The Role of Consumers’ Perceived Readiness

Author:

Denni Arli*
Department of Marketing
Griffith University, Australia,
Email: d.arli@griffith.edu.au

Lay Peng Tan

Department of Marketing and Management
Macquarie University, Australia,
Email: laypeng.tan@mq.edu.au

Fandy Tjiptono
Department of Marketing
Monash University, Malaysia,
Email: fandy.tjiptono@monash.edu

Lin Yang
Department of Marketing| Tasmanian School of Business & Economics
University of Tasmania
Email:l.yang@utas.edu.au

*Corresponding Author

This article has been accepted for publication and undergone full peer review but has not been
through the copyediting, typesetting, pagination and proofreading process which may lead to
differences between this version and the Version of Record. Please cite this article as an
‘Accepted Article’, doi: 10.1111/ijcs.12432
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 Abstract

Consumers’ awareness of green products has increased in the last few years, but studies show
that the demand for green products has been stagnant. The purpose of this study is to explore
the roles of consumers’ perceived readiness to be green and subsequently, how readiness to
be green affects consumers’ purchase intention toward green products in an emerging market,
Indonesia. A total of 916 survey responses were collected in three universities, two major
shopping malls and several housing areas in Yogyakarta, Indonesia. The findings reveal that
consumers’ attitude (ATT), subjective norm, perceived behavioral control (PBC), pro-
environmental self-identity (PEI), ethical obligation and consumers’ readiness to be green are
the determinants of intention to purchase green products. Consumers’ readiness to be green
mediates the effects of ATT, PBC, PEI and perceived sense of responsibility on purchase
intention. The study provides further insights into the discrepancy between professed positive
attitudes toward the environment and the slow uptake of green behavior in an emerging
market.

Keywords: Consumer Green Perceptions, Readiness to Be Green, Green Marketing, Green

Attitude–Behavior, Theory of Planned Behavior

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Introduction

Studies indicate that environmental beliefs have had a significant impact on consumer

behavior (D’Souza et al. 2007; Pereira and Chatzidakis 2012; Line and Hanks 2015; Vitell

and Muncy 2005). A report shows that ethical spending continues to grow, despite difficult

market conditions, with combined ethical money and ethical spending totals rising to US$111

billion in 2014 (Co-operative Group 2015). Consumers are reported to be more and more

willing to purchase green products (Chen 2010). As green products become increasingly

popular, companies are competing to produce products and services that satisfy customers’

environmental needs without damaging the environment (Chen and Chang 2012; McIntosh

1991; Whitson et al. 2014). Such marketing practices are suggested to be related to increased

firm performance and value as well as lower firm-idiosyncratic risk and higher cost-saving

advantages (Luo and Bhattacharya 2006; Menguc and Ozanne 2005; Porter and van der

Linde 1995).

However, an attitude–behavior gap phenomenon has been found consistently in many

studies on green/sustainable consumption (e.g., Fraj and Martinez 2007; Hines et al. 1986;

Kilbourne and Beckmann 2002; Lee and Holden 1999; Moisander 2007; Szmigin et al.

2009). Consumers’ positive attitudes about environmental issues do not necessarily translate

into actual green purchase behavior (Carrington et al. 2010). A survey by Pew Research

Center (2010), for instance, reveals that despite most respondents agreeing that the

environment should be protected, only one-third of the consumers are willing to pay higher

prices to address global climate change. Some of the reasons why consumers decided not to

buy greener products include price, brand image, green product availability, perceived low

performance, cynicism, confusion, trust, lack of environmental knowledge, situational factors

(e.g., economic constraints, lack of choice) and consumers’ internal obstacles (e.g., ethical

standards, sense of responsibility) (e.g., Albayrak et al. 2013; Bray et al. 2011; Chan et al.

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2008; Gleim et al. 2013; Gupta and Ogden 2009; McDonald et al. 2012; Pagiaslis and

Krontalis 2014; Pickett-Baker and Ozaki 2008; Tanner and Kast 2003). Johnstone and Tan

(2015a) classified these barriers to green behavior into three categories: “it is too hard to be

green,” “the green stigma” (i.e. a mark of disgrace toward green consumers) and “green

reservations,” (i.e., consumers’ ambivalence or uncertainty that greener consumption

practices will make a difference to the environment). Nevertheless, it is important to note that

most of the existing research focused on developed-country contexts. Empirical studies on

the responsible consumption issue in emerging markets are rather limited, although there has

been a growing body of research in China and India in recent years (Chan et al. 2008; He et

al. 2015; Khare 2015; Nittala 2014). The context of this study is Indonesia, one of the largest

emerging markets, with a population of about 256 million people (Population Reference

Bureau 2015). Indonesia offers a unique perspective as it is currently being deforested faster

than any other country in the world (Oakford 2014). Indonesia is the fourth most populous

nation in the world with the Gross Domestic Per capita of US3,475.25 (Population Reference

Bureau 2015). Despite significant economic growth, due to lack of strong policy, Indonesia

suffers from environmental degradation (Measey 2010). Moreover, consumers’ attention and

support toward green product and services remains unclear. Thus, the current study aims to

focus on Indonesia as an emerging market, and explore how consumers’ attitude toward the

environment, perceived behavioral control, subjective norm, pro-environmental self-identity,

perceived sense of responsibility and ethical obligation influence their readiness to be green,

and subsequently how perceived readiness to be green affects consumers’ purchase intention

toward green products.

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Literature Review

Theory of Planned Behavior

The present study uses the Theory of Planned Behavior (Ajzen 1985, 1991, 2005), which is

an extension of the Theory of Reasoned Action (TRA) developed by Fishbein and Ajzen

(1975). This well-known theory links attitude toward the behavior (i.e., the degree to which

an individual evaluates the particular behavior favorably or unfavorably), subjective norm

(i.e., perceived social pressure to perform the particular behavior) and perceived behavioral

control (i.e., perceived ease or difficulty of performing the particular behavior) to behavioral

intention.

Subsequently, research has supported the inclusion of further predictive variables to

the Theory of Planned Behavior, such as self-identity and ethical obligation (Shaw et al.

2000). In the last few decades, Theory of Planned Behavior has been used to predict various

behaviors, including physical activity (Armitage and Conner 2001; Conner and Sparks 2005;

Godin and Kok 1996), fat intake (de Bruijn et al. 2008; Paisley and Sparks, 1998); fruit and

vegetable consumption (Bogers et al. 2004), healthy eating behavior (Conner et al. 1991;

Povey et al. 2000), academic integrity behavior (Cronan et al. 2015) and weight control

(Netemeyer et al. 1991). Building on Theory of Planned Behavior, the current study attempts

to test new variables, namely consumers’ perceived sense of responsibility and consumers’

perceived readiness to be green as an effort to explore the gap between attitude and behavior

in the context of green marketing. We use the terms “environmentally friendly products” or

“green products” interchangeably throughout the paper. We define green products as

“products that consumers perceive to be environmentally friendly, whether it is due to the

types of materials used, the production process, packaging, promotion, and so on” (Johnstone

and Tan, 2015a, p.312). “To be green” is defined as engaging in environmentally friendly

activities, including purchasing/using green products (Polonsky 2011).

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Green Attitude and Behavior

As widely posited in social psychology literatures, attitudes guide human behavior (Bredahl

2001). Multi-attribute models such as the Theory of Reasoned Action (Fishbein and Ajzen

1975) and Theory of Planned Behavior (Ajzen 1985, 1991, 2005) have theorized that

attitudes affect people’s intentions to perform behavior, and intentions subsequently impact

behavior (Petty et al. 1991). However, consumers’ uptake of green products has not kept pace

with their positive attitudes about the environment and their growing environmental

consciousness (e.g., Eurobarometer 2011; Finisterra do Paço et al. 2010; Pew Research

Center 2010). This attitude–behavior discrepancy is often referred to as “the green gap” in the

literature. Over the past few decades, numerous theoretical frameworks have been developed

to explain the green gap but no definitive explanation has yet been found (Kollmuss and

Agyeman 2002; He et al. 2015). In an exploratory study by Johnstone and Tan (2015a), the

authors identified several barriers to green consumption behavior. In particular, they suggest

that even though consumers may have pro-environmental attitudes, their perceptions toward

“being green” may influence their perceived readiness, and thus intention to engage in green

consumption behavior. Social norms, or “behaviors we perceive to be morally right or what

ought to be done”, can play a large role in influencing green consumption practices (Peattie

2010, p. 211). Evidently, “being green” is not yet perceived as a social norm in most

countries, in particular emerging markets such as Indonesia. When green social norms are not

strong enough, consumers will probably experience minimal to no dissonance if there is a

discrepancy between their attitudes and behavior. As such, consumers’ attitude toward the

environment might be inadequate to predict their behavior. The next section will discuss the

hypothesis development of this study.

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Hypothesis Development

Attitude

Attitude refers to the degree to which an individual has a favorable or unfavorable evaluation

of the behavior in question (Ajzen 1985). In general, attitude is a significant factor

influencing consumer behaviors such as: adoption of internet banking (Lee et al. 2009), halal

food purchasing (Shar and Sayuti 2011) and exercise (Rhodes and Courneya 2003). In regard

to green products, studies show that consumers’ purchasing decisions are also being

influenced by their attitude (e.g., Ha and Janda 2012; Irland 1993; Schwepker and Cornwell

1991; Tanner and Kast 2003; Zhou et al. 2013). Hansla et al. (2008) found that consumers’

willingness to pay for green electricity increased with a positive attitude toward green

electricity. The same was found for environmentally-friendly wines (Barber et al. 2010). In

the green-hotel context, many studies determined that intention is positively influenced by

attitude (e.g., Chen and Tung 2014; Han and Yoon 2015). In a nutshell, the literature posits

that the more favorable the attitude toward a behavior, the stronger the individuals’ intention

to perform the behavior. Thus, it is hypothesized that:

H1a: Attitude toward green products has a direct, positive influence on consumers’
perceived readiness to be green.
H1b: Attitude toward green products has a direct, positive influence on purchase intention
toward green products.

Subjective Norm

Derived from the Theory of Reasoned Action (Ajzen and Fishbein 1980; Fishbein and Ajzen

1975), subjective norm refers to the belief about whether most people approve or disapprove

of the particular behavior (Ajzen 1991). Subjective norm recognizes the importance of

reference groups and it is also interested in finding out to what degree an individual will be

motivated to comply with these groups. Studies found that subjective norm significantly

influences various green-related consumer behavioural intention, such as intention to buy

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environmentally friendly products (Kalafatis et al. 2006; Wahid et al. 2011) and buying

organic foods and organic personal care products (Smith and Paladino, 2010; Tarkiainen and

Sundqvist 2005; Yeon and Chung 2005). It has also been found that consumers’ choice of

green products is influenced by their reference group (Welsch and Kühling 2009). Subjective

norm will influence consumers’ perceived readiness to be green and their purchase intention

toward green products as peers or people of importance often influence an individual’s intent

to act in a certain way. People who perceive a higher social pressure from significant others

will perceive themselves to be more ready to be green, and in turn will have a greater

tendency to purchase green products. Hence, we hypothesize:

H2a: Subjective norm has a direct, positive influence on consumers’ perceived readiness to
be green.
H2b: Subjective norm has a direct, positive influence on purchase intention toward green
products.

Perceived Behavioral Control

Perceived behavioral control refers to the perceived difficulty or ease of performing the

behavior (Ajzen 1985). Perceived behavioral control has been shown to influence intention

in various contexts, such as digital piracy (Chang 1998; Chen et al. 2009; Cronan and Al-

Rafee 2008), sun-protective behaviors (Banon, 2013), taxpayer acceptance of E-tax payment

system (Keramati et al. 2012), problem drinking (Schelegel et al. 1992), leisure activities

(Ajzen and Driver 1992) etc. The effect of perceived behavioral control on pro-environmental

behavior has also been found significant in energy conservation (Albayrak et al. 2013) and

the choice of green electricity products (Bamberg 2003). Ajzen (1988) suggests that

perceived behavioral control should predict behavioral intention. In the context of green

product consumption, perceived behavioral control will have positive influence on

individuals’ readiness to be green and purchase intention toward green products. Thus, we

hypothesize that:

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H3a: Perceived behavioral control has a direct, positive influence on consumers’ perceived
readiness to be green.
H3b: Perceived behavioral control has a direct, positive influence on purchase intention
toward green products.

Pro-Environmental Self-Identity

One of the key predictors of behavior is self-identity (Sparks and Shepherd 1992). This can

be described as the label used to describe oneself (Cook et al. 2002). Self-identity serves both

as a means to differentiate oneself from others and to conform to the values, beliefs and

behavior of the social groups to which one belongs (Christensen et al. 2004; Whitmarsh and

O’Neill 2010). It has long been established that the self-expressive nature of consumption is

important for consumers to construct and preserve their identities (e.g., see Belk, 2010;

Thorbjornsen et al., 2007). Some researchers go beyond and state that identity may even

override attitude in cases where our role identity dictates the way we behave, irrespective of

how we feel about that behavior (Charng, Piliavin & Callero, 1988). Environmental identity

significantly influences a person’s self-identity. It includes self-meanings that are tied to an

individual instead of being attached to a particular role (Stets 1995; Stets and Biga 2003).

Pro-environmental self-identity has been found to predict environmental behavior, such as

recycling (White & Hyde, 2012), carbon offsetting, waste reduction and energy conservation

(Whitmarsh & O’Neill, 2010). Hence, consumers who consider themselves to be pro-

environment are more likely to be ready and more likely to purchase green products. Thus,

we propose:

H4a: Pro-environmental self-identity has a direct, positive influence on consumers’

perceived readiness to be green.
H4b: Pro-environmental self-identity has a direct, positive influence on purchase intention
toward green products.

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Perceived Sense of Responsibility

Consumers in different countries and cultures behave differently according to the acceptable

practices and rules in those cultures (Ji et al. 2000; Kalafatis et al. 1999; Kan et al. 2014).

When environmental issues are considered as a major concern in a country, consumers may

have a higher sense of responsibility toward the environment (Quazi et al. 2015; Quazi et al.

2016). A study conducted by Chan and Lau (2001), for instance, found that consumer

behavioral intention toward green products is higher among American consumers than

Chinese consumers. They suggested that Chinese consumers tend to have a weaker sense of

responsibility toward environmental sustainability than their western counterparts. In this

study, we argue that perceived sense of responsibility intertwines but differs from ethical

obligation in that the former addresses “what an individual perceives as their responsibility to

improve a situation”. It captures first an individual’s acknowledgement of “situation of

concern and/or consequences”, and then, their “sense of responsibility” of doing something

toward it. It is an attributed responsibility of righting the wrongs. On the other hand, ethical

obligations address an individual’s internalized ethical rules, which reflect their belief about

appropriate behavior (Kan et al. 2014; Shaw et al. 2000), i.e., “what is the right thing to do”.

Therefore, consumers who perceive stronger responsibility for environmental deterioration

may be more ready to adopt a green behavior and are more likely to purchase green products

(Johnstone and Tan 2015a). Hence, we propose the following hypotheses:

H5a: Perceived sense of responsibility has a direct, positive influence on consumers’

perceived readiness to be green.
H5b: Perceived sense of responsibility has a direct, positive influence on purchase intention
toward green products.

Ethical Obligation

In the context of consumer behavior, ethical obligation is an important driver, in part driven

by a sense of obligation with ethical issues (Cook et al. 2002; Shaw and Shui 2002). Studies

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found strong support for the impact of ethical obligation on behavioral intention (e.g., Valle,

et al, 2005, Nordlund and Garvill, 2002). Ethical consumers do hold stronger ethical

obligation than others that influence their purchase choices (Shaw and Clarke 1999).

Consumers with higher ethical obligation tend to support environmentally friendly behavior

such as recycling and purchasing green products (Arli et al. 2016; Shaw et al. 2000).

Consequently, we hypothesize that ethical obligation will influence consumers’ perceived

readiness to be green and intention to purchase green products. Hence:

H6a: Ethical obligation has a direct, positive influence on consumers’ perceived readiness
to be green.
H6b: Ethical obligation has a direct, positive influence on purchase intention toward green
products.

Consumers’ Perceived Readiness to be Green

We conceptualize consumers’ perceived readiness to be green as a condition in which

consumers perceive themselves as “ready” to engage in green consumption behavior, such as

buying green products. As Haller and Handler (2008) posits, to change ones’ attitude and

behavior to be more compatible with the environment, “individuals must engage in some

personal sacrifices and even major changes in lifestyle” (p.282). The concept of “readiness”

is well established in the behavior-change literature, underpinned by cognitive-behavior

theories, including the Theory of Planned Behavior (Ajzen 1985, 1991, 2005) and Theory of

Triadic Influence (e.g., Snyder and Flay 2012). In particular, an individual’s readiness to

change is often posited as a proximal predictor of behavior change, for example to quit

smoking (Kleinjan et al. 2009), or the likelihood to adopt new technology, like self-service

technologies in hospitality settings (Kim et al. 2012). In this study, we argue that in countries

where “being green” is not yet perceived as a social norm, engaging in green consumption

behavior is parallel to “behavior change”. Beyond the business discipline and within the

context of nursing, readiness is a ubiquitous term associated with a patient’s willingness to

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change or to comply with a medical regime (Dalton and Gottlieb 2003). As Dalton and

Gottlieb exert, “…before clients can create change, they need to become ready to change”.

The authors went on to propose that, “the process of readiness involves recognizing the need

to change, weighing the costs and benefits, and when benefits outweigh costs, planning for

change” (p.108). Readiness can also be conceptualized as “a state where a person is assessed

as ready or not ready” (Dalton and Gottlieb 2003). We postulate that this state of mind

facilitates and expedites the formation of tendency or intention to act. As such, we argue that

consumers’ perceived readiness to be green would be an immediate precursor to their

intention of “being green.” Hence, we propose that:

H7: Consumers’ perceived readiness to be green has a direct, positive influence on

purchase intention toward green products.

Furthermore, consumers’ readiness to be green will mediate the relationship between

the antecedents and consumers’ intention to purchase green products (Johnstone and Tan

2015a). Therefore, we hypothesize that:

H8: Consumers’ readiness to be green will mediate the relationship between: (a) Attitude;
(b) Subjective Norm; (c) Perceived Behavioral Control; (d) Pro-environmental Self-
identity ; (e) Ethical Obligation; (f) Perceived Sense of Responsibility and purchase
intention toward green products.

Methodology

Data Collection

We collected data in Indonesia, the world’s 17th-largest economy and the sixth largest among

developing countries (Fletcher 2012). Data were derived using a convenience sampling of

student and nonstudent populations. Student samples were approached in classrooms and

public spaces of three universities (one public and two major private universities) in

Yogyakarta, Indonesia. Nonstudent samples were interviewed in two shopping malls and

several housing areas in the city. A total of 1,000 questionnaires were distributed, 970

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returned and only 916 were usable, thereby offering an overall response rate of 92%. About

56% of the samples were students, while 44% of them were non-students. Male and female

respondents were 48.3% and 51.7%, respectively. A majority of the respondents was between

the ages of 18 and 20 years (38.3%) followed by 21–23 years (17.6%), 24–26 years (13.5%)

and aged above 26 years old (30.6%). In terms of income, most respondents earned less than

20 million rupiah annually (±US$1,493, where US$ 1 = Rp. 13,394 as of 10 March 2017).

This income distribution reflects the condition of Indonesia as a low income country (Credit

Suisse, 2016). Despite the Statistics Indonesia (BPS) does not provide the Indonesian

population income distribution data (Pulungan, 2017), it was estimated that about 82% of the

Indonesia’s population had income of less than US$ 4 per day (or US$120 per month) (World

Bank, cited in Sharpe, 2014) and almost 100 million (± 39%) Indonesians earned less than

US$2 per day (The Economist, 2011). Finally, most of the respondents were Muslim

(47.4%), followed by Christians (25.1%), Catholics (20.9%) and others (6.6%). About 74.2%

of the respondents reported that they had previously purchased household products that were

promoted as environmentally friendly. In the questionnaire, we provided four household

products, i.e., soaps, toilet paper rolls, laundry detergents and dishwashing liquids. These

products are commonly available to consumers and easy to understand, unlike for example

biofuel or green cars. Additionally, the four products are rather homogenous (cleaning). This

would avoid potential, unnecessary additional source of variation within the dataset as

compared with studies examining diverse pro-environmental behaviours in one study (e.g.,

recycling, water reduction, eco-shopping, energy conservation, eco-driving, etc.) (Whitmarsh

& O’Neill, 2010). The respondents were instructed to choose the product category that they

were most familiar with because product knowledge may influence consumers’ product

evaluations (Blair & Innis, 1996) and perceptions (Laroche, Bergeron, & Goutaland, 2003).

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Soaps and laundry detergents were mentioned as the most purchased green products during

the last six months. Table 1 summarizes the respondent profiles.

Insert Table 1 about Here

Measures

Ajzen’s (1991) measures were used for “attitude” (single item), “subjective norm” (three

items) and “perceived behavioral control” (single item). We adopted the scales by Cook et al.

(2002) to measure “pro-environmental self-identity” (three items) and “ethical obligation”

(four items). Consumers’ perceived sense of responsibility (two items–reverse coded), and

consumers’ perceived readiness to be green (three items–reverse coded) were measured using

consumers’ green perception scales developed by Johnstone et al. (2014). These factors

display good internal consistency with alpha greater than .70 (Hair et al. 2010; Nunnally

1978). The scale items used in this study are presented in Table 2. Structural equation

modeling was used to address the research objectives and Likert scales were employed

(1=strongly disagree; 5= strongly agree).

Analysis

Using structural equation modeling (SEM), the analysis followed Andersen and Gerbing’s

(1988) two-stage procedure. First, the goodness of the measurement instruments was

analyzed using confirmatory factor analysis and second, the structural relations among the

theoretically proposed latent variables were analyzed through SEM. Both the measurement

model and the causal-relations model were estimated using maximum likelihood methods

(Satorra and Bentler 1994) for the model fit. The goodness-of-fit indicators for the

measurement instrument (Bentler–Bonett Nonnormed Fit Index (BBNFI)) = .941,

comparative fit index (CFI) = .958, incremental fit index (IFI) = .959, root mean square error

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of approximation (RMSEA) = .049, easily exceed the commonly accepted critical values

(Andersen and Gerbing 1988). Table 2 shows that the measurement instrument reliability can

be confirmed as Cronbach’s alphas exceed the critical value of .7 (Cronbach 1951) and

composite reliability and average variance extracted indexes also exceed the critical values of

.7 and .5, respectively (Fornell and Larcker 1981). In addition to the goodness-of-fit

indicators, two criteria were used to verify convergent validity. The results show that the

observed variables were significant and the average loads were above .7 (Hair et al. 2010).

Insert Table 2 about Here

Finally, the measurement model was checked to ensure discriminant validity. First, it

was found that interfactor correlations were significantly below 1. Second, for each pair of

factors, it was verified that the difference of 2 between the proposed measurement model

and a restricted model where the correlation between said factors was set at 1 (Fornell and

Larcker 1981) was significant. The variance extracted test was carried out, which showed that

Average Variance Extracted for each factor was higher than the square of the correlation

coefficient with each of the other factors (see Table 3). Thus, in Table 3, the test confirms the

measurement model’s discriminant validity (Fornell and Larcker 1981).

Insert Table 3 about Here

Results

Direct Effect

Having established the reliability and validity of the model, in the next step we estimate the

hypothesized relationships between the constructs of the present study. The analysis was

conducted to examine the impact of attitude, subjective norm, perceived behavioral control,

pro-environmental self-identity, perceived sense of responsibility, and ethical obligation on

consumers’ perceived readiness to be green and purchase intention toward green products.

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Subsequently, we examine the impact of consumers’ readiness to be green on purchase

intention. The findings presented in Table 4 suggest that the hypothesized structural model

(BBNFI = .948; Tucker–Lewis Index (TLI) = .952; CFI = .965; IFI = .965; RMSEA = .046;

2/df = 361.941/124) fits the data well.

The results show that attitude toward green products significantly influences

consumers’ readiness to be green (β = .090, p < .05) and purchase intention (β = .190, p <

.01). Hence, H1a and H1b are supported. Moreover, subjective norm significantly influences

purchase intention toward green products (β = .228, p < .01) but not readiness to be green.

Thus H2b is supported while H2a is not. Perceived behavioral control positively influences

both consumers’ readiness to be green (β = .076, p < .05) and purchase intention (β = .138, p

< .01). Therefore, H3a and H3b are supported. Pro-environmental self-identity positively

influences both readiness to be green (β = .329, p < .01) and purchase intention (β = .260, p <

.01). Hence, H4a and H4b are supported. Additionally, perceived sense of responsibility

positively affects consumers’ readiness to be green (β = .340, p < .01). However, the effect of

perceived sense of responsibility on purchase intention was negative (β = –.082, p < .05). As

a result, H5a is supported while H5b is not. In regard to ethical obligation, the results indicated

that ethical obligation positively influences purchase intention (β = .090, p < .05) but not

consumers’ readiness to be green. Consequently, H6b is supported while H6a is not. Finally,

consumers’ readiness to be green positively influences consumers’ intention to purchase

green products (β = .160, p < .01). Consumers who are ready to be green are more likely to

purchase green products. Hence, H7 is supported.

Insert Table 4 about Here

Mediating Effects

To test for mediation effects, two separate bias-corrected bootstrap analyses with the

mediator (perceived readiness to be green) were conducted using a series of multiple

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regression analyses (Baron and Kenny 1986; Preacher 2008; Zhao et al. 2010). Meaningful

mediating effects can occur without a significant direct relationship between independent and

dependent variables (Zhao et al. 2010). Thus, only direct effects between the mediator and

independent variables and between the mediator and dependent variables were established

prior to assessment of mediation. A mediating effect is significant (p < .05) if the 95%

confidence intervals do not include zero. This test establishes whether statistically significant

results exist for mediation by perceived readiness to be green of the relationship between

attitude, subjective norm, perceived behavioral control, pro-environmental self-identity,

perceived sense of responsibility, ethical obligation and intention to purchase green products.

Finally, following Podsakoff et al. (2003) we adopted statistical methods to assess common-

method bias. We applied a marker variable (MV) to assess whether our measure suffered

from common-method bias. We found that common-method bias was not an issue in this

study.

The results show that readiness to be green mediated the relationship between attitude

and purchase intention; perceived behavioral control and purchase intention; pro-

environmental self-identity and purchase intention; and perceived sense of responsibility and

purchase intention. Thus, H8a, H8c, H8d and H8f are supported. However, readiness to be green

did not mediate the relationship between subjective norms and purchase intention and the

relationship between ethical obligation and purchase intention. Therefore, H8b and H8e are not

supported. Table 5 summarizes the hypothesis-testing results of the mediating effects.

Insert Table 5 about Here

Discussions and Implications

From a theoretical perspective, the results of the present study provide further empirical

support for the usefulness of the Theory of Planned Behavior as a guiding framework to

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understand how to influence green products purchase intention in the context of an emerging

market. In addition, the present study highlights the role of consumers’ perceived readiness to

be green as an important determinant of green product purchase intention. When consumers

think that they are ready to be green (e.g., have the ability in terms of knowledge and time),

they are more likely to purchase green products (Johnstone et al., 2014). This finding is

consistent with behavior-change literature in that “readiness” is a proximal predictor for

behavior change. Readiness to be green also mediates the impacts of attitude, perceived

behavioral control, pro-environmental self-identity, and perceived sense of responsibility on

purchase intention. Our findings suggest that positive attitudes toward buying a green product

may not translate into green purchase intention if consumers do not think that they are ready

to be green. This may in part help to explain the subsequent discrepancy between attitude and

behavior. These initial findings highlight the potential of consumers’ “green readiness” to

better understand the green gap.

The current study reveals that green products purchase intention is being influenced

by multiple factors. First, we will discuss antecedents of consumers’ readiness to be green. It

shows that people who have stronger attitude, perceived behavioral control, self-identity

toward the environment and perceived sense of responsibility are more likely to be ready to

be green. Meanwhile, subjective norm and ethical obligation were found to be insignificant

predictors of consumer readiness to be green. The findings suggest that perceived readiness to

be green comes from the “internal” commitment of those consumers (e.g., identity, sense of

responsibility) and not from other external influences (i.e., families and obligation). That is,

to increase consumers’ readiness to be green and subsequently green product purchase

intention, marketers/policy-makers should focus on those “internal drivers.” For example,

heightening the sense of responsibility toward the environment, and reinforcing pro-

environmental self-identity through education and training. However, marketers/policy-

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makers should be cautioned that consumers’ pro-environmental behaviors do not necessarily

increase when they are provided with very detailed technical information (Kollmuss and

Agyeman 2002). In fact, as Chan (2001) found, intuitive and emotional factors can exert a

greater influence on attitudes toward green purchases. In the Indonesian context, a more

integrative and comprehensive program will be needed. This could include using joint

industry, government and nongovernmental organizations’ action to drive home the message

that the environment is a major concern in the country, which requires immediate actions.

Building on the findings of this study, the focus on these joint actions could also be on

reinforcing the belief that “individuals” can and have the responsibility to make a difference,

and that all individuals have the responsibility to protect the environment for future

generations. Furthermore, it is necessary to encourage consumers that their small acts toward

sustainability do matter to the environment. Recently, the Indonesian Retailers Association

(Aprindo) decided to support the Indonesian government’s policy to reduce plastic waste.

Since 21 February 2016, customers have had to pay for plastic bags when they shop at

modern markets, such as supermarkets, department stores, minimarkets and other retail

outlets throughout 23 major cities in Indonesia (Jong, 2016).

The findings also provided empirical support for the positive impacts of attitude,

subjective norm, perceived behavioral control, pro-environmental self-identity and ethical

obligation on purchase intention of environmentally friendly products. Among the significant

predictors, pro-environmental self-identity and subjective norm are the strongest. The

findings again highlight the importance of building/reinforcing pro-environmental self-

identity amongst consumers. In addition, although subjective norm was not found to affect

consumers’ green readiness significantly, it was a significant predictor for consumers’ green

product purchase intention. These results suggest that consumers would be likely to purchase

green products when they believe that such behavior will gain the approval of people that are

19

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important to them, regardless of whether they are ready to be green. This illustrates the

importance of using “social approval” to drive greater green uptake. On the other hand, an

interesting research question could be, “Will the behavior of these consumers who purchase

green products to ‘gain social approval’ persist, when the external influence is absent?”

(Johnstone and Tan 2015b).

Surprisingly, perceived sense of responsibility was found to influence consumers’

purchase intention toward green products negatively. When consumers felt responsible for

environmental deterioration, they were less likely to buy green products. This finding is

counterintuitive. However, readiness to be green mediates the effect of perceived sense of

responsibility on purchase intention. This may further indicate the importance for a highly

responsible consumer to be ready before he/she is willing to buy a green product. More

empirical studies would be needed to delineate further the roles of “consumers’ readiness” in

pursuing green/sustainable consumption behavior.

Limitation and Future Research

Our study has several limitations that also offer opportunities for future research. First, our

respondents are mainly younger consumers and earning lower income compared to the

general population. Future research should explore consumers from various age cohorts to

increase the generalizability of the study. Secondly, the current study found that readiness to

be green and purchase intention is not significantly different across religions. Further study

may explore the role of religiosity instead of religion in examining green attitude and

behavioral intentions (Martin and Bateman 2014). Several previous studies have indicated

that religiousness influences consumer attitude, which subsequently affects purchasing

behavior (Essoo and Dibb 2004) including consumer ethical behavior (Arli and Tjiptono 2014;

Vitell et al. 2005). Moreover, although some interesting findings are drawn from a

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combination of student and nonstudent samples, it is important to note some caveats in

interpreting the results. The research context (one city in one country) may limit its

generalizability. Future study may focus on more cities and/or cross-country comparisons.

This study did not look at the impact of green products’ price and quality on consumers’

readiness and purchase intention. Through a series of experiments, future studies may

examine the impact of price and quality on consumers’ purchase intention between high and

low environmentally conscious consumers.

Another limitation of this study is the construct perceived behavioral control used in

this study. This construct may represent two dimensions (i.e. controllability and self-efficacy)

(Ajzen 2002).1 Hence, the results of this study may be interpreted in light of this issue. This

result, however, is consistent with Bamberg’s study which also investigated specific

environmentally related behaviour, with unsatisfactory factor loading of the item capturing

controllability (λ=0.43) (Bamberg, 2003). Future research in the similar context may be

required to examine and validate the dimensions of this construct. Some consumers may

have more control and self-efficacy than other consumers which subsequently affect their

attitude and purchase intention.

In this study, we adopted the suggestions by several scholars to include ethical

obligation to the Theory of Planned Behaviour (e.g., Cook et al., 2002; Shaw and Shui, 2002

and Chatzidakis, Hibbert, and Smith, 2007) and further distinguished the difference between

ethical obligation and perceived sense of responsibility. We acknowledge that the constructs

of ethical obligations, perceived sense of responsibility to some extent overlap with the

prevailing “moral norm” used in many other studies2. Future studies could attempt to

disentangle the definition of moral norms and further delineate the relationships / differences

amongst these constructs.

1
We thank an anonymous reviewer for this feedback.
2
We thank an anonymous reviewer for this feedback.

21

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 The result of this study may only be applicable to a particular product, for example

household products. Future research should test various products such as organic food,

durable products and appliances3. Finally, this study did not examine consumers’ revealed or

actual purchase behavior as such data is scarce to the academic community. Future research

may include consumers’ purchase behavior which can be matched clearly with their intention

to purchase green products.

3
We thank an anonymous reviewer for this feedback.

22

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Table 1. Profiles of Respondents

n = 916 Frequency Percentage

Age
18-20 years old 351 38.3%
21-23 years old 161 17.6%
24-26 years old 124 13.5%
> 26 years old 280 30.6%
Gender
Male 442 48.3%
Female 474 51.7%
Annual Income
< Rp 20 million 681 74.3%
Rp 21 million - Rp 40 million 111 12.1%
Rp 41 million - Rp 60 million 61 6.7%
> Rp 60 million 63 6.9%
Religion
Islam 434 47.4%
Christian (Protestant) 230 25.1%
Catholic 191 20.9%
Others 61 6.6%
Ever purchased household
products that were promoted as
environmentally-friendly
No 236 25.8
Yes (can be more than 1 answers): 680 74.2
Laundry detergents 334 42.1
Dishwashing liquids 256 32.2
Toilet paper rolls 214 27
Soaps 383 48.2
Others 130 16.4

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Table 2. Confirmatory Factor Analysis

Factor Item Convergent Validity Reliability

Factor loading Loading average Cronbach’s α CR AVE
Purchase Intention (PI)
In the next six weeks, how likely are you to purchase PI01 0.85 0.81 0.79 0.65
environmentally-friendly household products?
I intend to buy environmentally-friendly household PI02 0.77
products during the next six weeks.
Readiness to Be Green (RI) (Reversed Coded)
I do not have sufficient knowledge about environmental RI01 0.63 0.74 0.78 0.83 0.56
issues to make decisions about these types of
products.
I do not have sufficient time to learn about RI02 0.80
environmentally-friendly household products.
I have too many other responsibilities at the moment to RI03 0.80
think about environmentally-friendly household
products.
Attitude (ATT)
In general, my attitude towards purchasing an ATT N/A
environmentally-friendly products is (favorable –
unfavorable).
Subjective Norm (SN)
Most people who are important to me buy SN01 0.80 0.82 0.86 0.86 0.55
environmentally-friendly household products.
Most people who are important to me are concerned SN02 0.80
about issues related to the environment.
Most people who are important to me think it is SN03 0.86
important to buy environmentally-friendly
household products.
Perceived Behavioral Control (PBC)
If I wanted, it would be easy for me to buy PBC N/A
environmentally-friendly household product

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Table 2 (Cont). Confirmatory Factor Analysis

Factor Item Convergent Validity Reliability

Factor loading Loading average Cronbach’s α CR AVE
Pro-Environmental Self-Identity (PEI)
I think of myself as someone who is very concerned PI01 0.71 0.74 0.77 0.88 0.55
about environmental issues.
I think of myself as an environmentally-friendly PI02 0.85
consumer.
Purchasing environmentally-friendly products reflects PI03 0.66
who I am.
Ethical Obligation (EO)
The environment is one of the most important issues EO01 0.71 0.74 0.83 0.86 0.50
facing society today.
Unless each of us recognizes the need to protect the EO02 0.76
environment, future generations will suffer the
consequences.
The benefits of protecting the environment do not EO03 0.70
justify the expense involved.
The importance of the environment is not being EO04 0.79
exaggerated.
Perceived Sense of Responsibility (PSR)
(Reversed Coded)
I do not need to do anything at the moment because the PS01 0.92 0.92 0.83 0.84 0.84
environment is not a major concern in Indonesia.
I do not feel responsible for environmental PS02 0.91
deterioration.

Goodness-of-fit measures
BBNFI TLI CFI IFI RMSEA
X2 (130df) = 272.370 (p = 0.00) 0.941 0.945 0.958 0.959 0.049
Notes: CR Composite Reliability, AVE Average Variance Extracted

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Table 3. Correlation and Discriminant Validity

1 2 3 4 5 6 7 8
1. Attitude N/A 0.132 0.030 0.158 0.152 0.059 0.073 0.179
2. Subjective Norm 0.364** 0.55 0.016 0.212 0.005 0.002 0.020 0.182
3. Perceived Behavioral Control 0.174** 0.129** N/A 0.015 0.031 0.000 0.017 0.063
4. Pro-environmental Self-Identity 0.398* 0.461** 0.123** 0.55 0.116 0.015 0.075 0.210
5. Ethical Obligation 0.390** 0.227** 0.177** 0.341** 0.50 0.126 0.072 0.093
6. Perceived Sense of Responsibility 0.244** 0.041 0.017 0.123** 0.356** 0.84 0.113 0.008
7. Perceived Readiness to be Green 0.271** 0.142** 0.129** 0.275** 0.268** 0.337** 0.56 0.080
8. Purchase Intention 0.424** 0.427** 0.251** 0.459** 0.305** 0.091** 0.284** 0.65
Mean 3.88 3.36 3.33 3.36 4.15 3.83 3.23 3.19
Std Dev 0.66 0.70 0.85 0.61 0.57 0.74 0.74 0.73
Notes: Values below the diagonal are bivariate correlations between the constructs, bold diagonal elements represents the Average Variance Extracted (AVEs) for the
relevant construct; Values above the diagonal represent squared correlations.
** significant at  = 1%; * significant at  = 5%.

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 Table 4. Structural Equation Model Results

Hypothesis Structural relationship Standardised coefficient Result

H1a Attitude  Perceived Readiness to Be Green 0.090* Supported
H1b Attitude  Purchase Intention 0.190** Supported
H2a Subjective Norm  Perceived Readiness to Be Green -0.039 Not supported
H2b Subjective Norm  Purchase Intention 0.228** Supported
H3a Perceived Behavioral Control  Perceived Readiness to Be Green 0.076* Supported
H3b Perceived Behavioral Control  Purchase Intention 0.138** Supported
H4a Pro-Environmental Self-Identity  Perceived Readiness to Be Green 0.206** Supported
H4b Pro-Environmental Self-Identity  Purchase Intention 0.294** Supported
H5a Perceived Sense of Responsibility  Perceived Readiness to Be Green 0.057** Supported
H5b Perceived Sense of Responsibility  Purchase Intention -0.115** Not Supported
H6a Ethical Obligation  Perceived Readiness to Be Green 0.057 Not Supported
H6b Ethical Obligation  Purchase Intention 0.090* Supported
H7 Perceived Readiness to Be Green  Purchase Intention 0.160** Supported
Goodness-of-fit measures
BBNFI TLI CFI IFI RMSEA
2
X (124 df) = 361.941 (p = 0.000) 0.948 0.952 0.965 0.965 0.046

Notes: ** significant at  = 1%; * significant at  = 5%.

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Table 5. Mediating Model Results

Hypothesis Structural Relationship Mediator: Readiness to be Green Results

Standardized S.E Lower Upper
indirect effects
H8a Attitude  Purchase Intention 0.014 0.037 0.003 0.037 Supported
H8b Subjective Norm Pro-Environmental Self- -0.006 0.040 -0.024 0.007 Not Supported
Identity  Purchase Intention
H8c Perceived Behavioral Control  Purchase 0.012 0.024 0.000 0.029 Supported
Intention
H8d Pro-environmental Self-Identity  Purchase 0.033 0.024 0.014 0.066 Supported
Intention
H8e Ethical Obligation  Purchase Intention 0.009 0.054 -0.008 0.027 Not supported
H8f Perceived Sense of Responsibility  0.053 0.041 0.023 0.095 Supported
Purchase Intention

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Figure 1. Conceptual Framework
ATTITUDE

(+)
SUBJECTIVE
NORM (+)

(+)
(+)
PERCEIVED
BEHAVIORAL
CONTROL (+)

(+) PURCHASE
PRO-ENVIRONMENTAL (+) INTENTION
SELF-IDENTITY

(+) (+)

ETHICAL OBLIGATION
(+) (+)
(+)
PERCEIVED
PERCEIVED SENSE OF READINESS TO BE
RESPONSIBILITY GREEN
(+)

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