(Luận văn thạc sĩ) critical factors affect consumers purchase intention towards greeen products in ho chi minh city

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business

TRAN HUY BAO

CRITICAL FACTORS AFFECT CONSUMERS’ PURCHASE
INTENTION TOWARDS GREEN PRODUCTS
IN HO CHI MINH CITY

ID: 22120003

MASTER OF BUSINESS (HONOURS)
SUPERVISOR: Dr. Vo Xuan Vinh

Ho Chi Minh City – 2015


ACKNOWLEDGEMENTS

I would like to express my greatly appreciation in thanking people who helped me to
complete this thesis. Firstly, I am very grateful to my advisor, Dr. Vo Xuan Vinh, for his
valuable advices. I especially appreciate his continual support in responding, reminding, and
assisting in all aspects of this endeavor.
On the other hand, I would like to thank my colleagues, friends and classmates for their
valuable encouragement during months that I was working on this thesis. Special thanks for
people who spent their precious time with me in both pilot and main surveys.
Finally, I would like to express my heartfelt thanks to my family for their support, their
encouragement, and their faith during the time I accomplish my thesis.

2

ABSTRACT

One of the largest and the most urgent problems that the world is facing today is the
environmental pollution which both the government and civilians contribute to solve this issue.
In fact, the injurious smoke emitted by cars, buses, trucks, trains, and the wastes from factories,
namely sulphur dioxide, carbon monoxide or nitrogen oxides have been creating more bad effects
on environment. For this reason, corporations must find effective environmental solution in
reducing the pollution. Therefore, green product is one of the suitable solutions which are applied
in many countries over the world. There are also many researches about green product studies;
however, it is still rather new in Vietnam and green products have not yet approached to
Vietnamese consumers. Moreover, the corporations in Vietnam have not had a thorough grasp of
this kind of product and how consumers reach with green product. Thus, this research needs to be
profoundly supported. This paper is researched based on the theory and the foundation from the
study of Wilson King, Amran Harun, Rini Suryati Sulong and Jaratin Lily (2014). In that, there
are five factors including eco-label, green packaging, green corporate perception, green product
value and green advertisement which are considered in order to test influence on consumers’
purchase intention. This research aims to find out which and how factors of green product affect
purchase intention and from that, give recommendations.
By applying both qualitative and quantitative method, the data is collected through in-depth
surveys. Then, the collected data is analyzed by SPSS software. According to reliable results, this
paper proposes recommendations for corporations which want to develop green product line.
Keywords – Purchase intention, eco-label, green packaging, green corporate perception, green
product value, green advertisement.

3


TABLE OF CONTENTS

LIST OF FIGURES ......................................................................................................................................... 6
LIST OF TABLES ........................................................................................................................................... 7
CHAPTER 1: INTRODUCTION ................................................................................................................... 8
1.1Research Background ................................................................................................................................. 8
1.2Research gap................................................................................................................................................ 9
1.3Research Objectives .................................................................................................................................. 10
1.4Research scope........................................................................................................................................... 10
1.5Research structure of thesis ..................................................................................................................... 11
CHAPTER 2: LITERATURE REVIEW ..................................................................................................... 12
2.1 Green product .......................................................................................................................................... 12
2.2 Purchase intention.................................................................................................................................... 13
2.3 Eco - label.................................................................................................................................................. 15
2.4 Green packaging ...................................................................................................................................... 16
2.5 Green corporate perception .................................................................................................................... 17
2.6 Green product value ................................................................................................................................ 17
2.7 Green Advertisement ............................................................................................................................... 18
2.8 Conceptual model ..................................................................................................................................... 19
CHAPTER 3: RESEARCH METHODOLOGY......................................................................................... 20
3.1 Research approach ................................................................................................................................... 20
3.2 Sampling ................................................................................................................................................... 20
3.3 Data collection methods ........................................................................................................................... 21
3.4 Measurement scales ................................................................................................................................. 22
3.4 Data analysis methods ............................................................................................................................. 24
CHAPTER 4: DATA ANALYSIS AND RESULTS.................................................................................... 26
4.1 Respondents’ demographics.................................................................................................................... 26
4.2 Reliability Analysis .................................................................................................................................. 28
4.3 Exploratory Factor Analysis (EFA) ....................................................................................................... 31
4.3.1 EFA for independent variables ............................................................................................................ 31
4.3.2 EFA for the dependent variable........................................................................................................... 33
4.4 Correlation Testing .................................................................................................................................. 34

4.5 Multiple Regression Analysis .................................................................................................................. 35
4


CHAPTER 5: CONCLUSION, IMPLICATIONS AND LIMITATIONS................................................ 40
5.1 Main findings ............................................................................................................................................ 40
5.2 Managerial implications .......................................................................................................................... 43
5.3 Limitations and future research ............................................................................................................. 44
REFERENCES................................................................................................................................................. 46
APPENDIX A .................................................................................................................................................. 52
APPENDIX B .................................................................................................................................................. 58
APPENDIX C .................................................................................................................................................. 63
APPENDIX D .................................................................................................................................................. 65

5


LIST OF FIGURES

Figure 2.1: A Research Model…………………………………………………………...… 19

6


LIST OF TABLES

Table 2.1: Objectives for a green product………………………………………..................13
Table 4.1: Respondents' characteristic……………………………………………...............27
Table 4.2a: Reliability Statisticsa…………………………………………………................29
Table 4.2b: Reliability Statisticsb……………………………………………………………30

Table 4.3: KMO and Bartlett's Test of Independent Variables…………………...................31
Table 4.4: Rotated Component Matrix for Independent Variable………………..................32
Table 4.5: Table KMO and Bartlett's Test…………………………………………………..33
Table 4.6: Rotated Component Matrix for The Dependent Variable……………………….33
Table 4.7: Correlations……………………………………………………………………...34
Table 4.8: Model Summary………………………………………………………………....35
Table 4.9: ANOVA…………………………………………………………………………36
Table 4.10: Coefficients…………………………………………………………………….36
Table 4.11: Summary of hypotheses testing result…………………………………………39
Table 5.1: Research questions, related hypotheses and results…………………...................40

7


CHAPTER 1: INTRODUCTION
1.1 Research Background
Nowadays, modern industry develops with gigantic growth rate. Along with both
population and economic growth, the world is facing environmental degradation including
Vietnam. The Doi Moi policy which was started by government in 1986 has brought high
economic growth rate but it also causes harm in environment. Evidently, ten years later, Quy
Vo (as cited in Mai & Nguyen, 2003), who is president of the Center for Natural Resources
and Environmental Studies at the National University in Hanoi, stated that “Vietnam is being
confronted with a number of serious Environmental problems, including deforestation,
degradation of land resources, shortages of fresh water, over-exploitation of biological
resources, threats to ecosystems, and increasing pollution”.
Because modern industry brings many problems; hence, it is responsible to find out
solution. Government appeals incessantly to everyone for environmental protection which
contributes to increase people’s awareness. “The mass media in Vietnam have recently begun
to distribute a large quantity of news related to various environmental problems” (Pham &
Rambo, 2003). For this reason, people might be aware of the associations between major

environmental issues, such as water and air pollution, land degradation and chemical
contamination, and everyday consumption items, such as clothing, food, housing and
transport (Adams, 1990; McKusick, 1990). Simultaneously, people increasingly recognize
environmental problems which increase by manufacturing activities in the world (Chen,
2011). Therefore, people take consumptions not only for needs but also green, cleanliness and
environmental friendliness of products, guarantee for future life of their progeny. “More and
more consumers have started to assess the environmental impact of product/service choices
and to change their behavior in purchasing, consuming and dispensing of the product” (Ting,
1991). For instance, over 70 percent of Americans reported that they contributed to protect
environment, and 49 percent said that they would avoid buying harmful environmental
products (Hueber, 1991). Especially, in Vietnam, people have recently begun to pay attention
to environmental issues. A research refers that “Respondents’ concerns about the environment
are based primarily on their own personal experiences and observations. In other words, they
8


are concerned about environmental problems that they can directly sense (e. g., smell, see,
hear) or that directly affect their health and lives.” (Pham & Rambo, 2003). Indeed, in the
case of Vedan, consumers immediately ostracized Vedan when that company eliminated
harmful toxic for health of people living near Thi Vai River (Ngo, 2011).
To put forward an effective solution, marketing researchers appreciate consumers’
growing environmental consciousness and begin to recognize the value of green products.
Based on the findings of the previous articles, the researcher comes to the point that people
become more concerned about the environment as well as green products. Actually, people
are becoming more knowledgeable about nature and ecology and the positive impact of the
green products on nature. There are so many articles, comments, evaluations, definitions or
issues that concern green products topic. Conceivably, “More and more companies are
involved in turning the region’s growing environmental awareness into an expanded business
opportunity rather than an obstacle.” (Barrett, 1990). Consequently, in early 1980s, green
marketing began in Europe and became more and more popular in other continents (Preece,

Pheng, Padfield & Padfield, 2011). For the time being, green products are brought into the
world such as recycled paper, environmentally-friendly packaged products, energy-efficient
light bulbs, electric steam irons, cleaning goods as well as organic foods.
1.2 Research gap
Around the world, green marketing developed with many practical activities and was
also a field research in many companies. Foreign countries like Europe and North America
conducted many researches about green marketing, especially consumers’ green purchase
behavior, in order to support for marketers (Afzaal, Ali, Israr & Waseem, 2011). Furthermore,
previous researches conducted to identify young consumer intention buying green products
in Hong Kong (Lee, 2010) or investigated green products through green energy, consumption,
constructional materials in Sweden (Haraldsson, 2001; Rex & Baumann, 2007; Emilsson,
2008). However, this is still rather new form of marketing and has not yet been researched
much in the context of Vietnam. The consumer purchase intention on green products are also
not involved in Vietnam. Hence, companies are discreet in manufacturing “Green” for their
products accordingly because of special process which guarantees low pollution, resource
9


saving and safety for health. If any company takes the lead in the application of this kind of
marketing, it will attain competitive advantages as well as positive evaluation from
consumers. “Not only does environmental responsiveness help organizations to remain
competitive and increase market share but also there is some evidence showing increases in
customer loyalty” (D’ Souza et al., 2006).
In general, green products are not only unfamiliar to consumers in Vietnam but also
rare researched in the awareness of consumer purchase intention. Therefore, there is an urgent
quest to investigate the critical factors affect green purchase intentions of consumers in order
to fill in the research gap in developing green marketing.
1.3 Research Objectives
By improving environment in Vietnam and achieving the success in green products,
this research is to support for corporations which find out the relationship between specific

factors and consumers’ purchase intention of green products in Ho Chi Minh City. In order
to evaluate problems above, this study aims to answer for these following research questions
(RQ) below:
RQ1: Is there a positive relation between eco-label and consumers’ purchase
intention in Ho Chi Minh City?
RQ2: Is there a positive relation between green packaging and consumers’
purchase intention in Ho Chi Minh City?
RQ3: Is there a positive relation between green corporate perception and
consumers’ purchase intention in Ho Chi Minh City?
RQ4: Is there a positive relation between green product value and consumers’
purchase intention in Ho Chi Minh City?
RQ5: Is there a positive relation between green advertisement and consumers’
purchase intention in Ho Chi Minh City?
1.4 Research scope
The research attempts to cover all aspects of the problem. However, there are some
limitations about times, geography, human resources, and finances. For that reason, it leads
to scopes in the research. Firstly, due to the limitation of finance and geography, this research
10


can not be studied in all cities of Vietnam. Therefore, the study framework is carried out in
Ho Chi Minh City where is considered as the most important economic center of Vietnam.
Additionally, this research only concentrates on consumers who are over 18 years old have
greater or equal middle income level.
1.5 Research structure of thesis
The research structure is organized as follows:
-

Chapter 1 presents the research background, research gap, research objectives, and
research scope.

-

Chapter 2 introduces the conceptual model and its hypotheses as well as its literature
review.

-

Chapter 3 illustrates the research methodology conducted in this paper.

-

Chapter 4 presents research results which are based on data collected.

-

Chapter 5 summarizes the research results, provide the findings and recommendations.

11


CHAPTER 2: LITERATURE REVIEW

This chapter mainly introduces theories which are proposed by many scholars in
academic field, and theoretical model in order to create foundation for this research. Firstly,
the general introduction is about green products and definition of dependent and independent
variables are discussed in this section. On the other hand, the related theories of each factor,
including eco-label, green packaging, green corporate perception, green product value and
green advertisement affect green consumers’ purchase intention are discussed respectively.
Finally, this chapter proposes theoretical model which its constructs and hypotheses are

discussed.
2.1 Green product
Firstly, it is necessary that finding out the products which nearly involve environment
called environment sensitive commodities (Wuttke, Skrylnikov, Kutonova & Yevseyev,
2011). These products eliminate the cause of environmental pollution, the cause of national
resource degradation or the cause of human health, etc… In order to manufacture the products
which should be friendly with environment becomes essential, called “green products”. A
product, satisfies some criteria, should be called “green”. According to Department of Natural
Resources and Environment of Thanh Hoa Province (2009), it stated that:
A product is created from environmental friendly materials. It means the product
includes recycled commodities, instead of new and raw materials that called a green
product.
A product brings safe and healthy environment for human beings instead of traditional
toxic products. For instance, the materials replace the preservation of woods like
creosote, as considered the compound causing cancers.
A product decreases the effect of environment when using (small toxic, small cost of
service, using recycled energy). Lots of Europeans reuse glass milk bottles, decreasing
the proportion of using plastic milk bottles. Hence, the glass milk bottles can be
recycled easily for long usage.
A product creates the friendly relationship of environment and safety for human health.
In details, green products associate closely to human life in housing, eliminate the
12


spread of pollution throughout ventilation and air filter of eco- air conditioning.
Tan and Lau (2010) defined terminology of green product as product which associates
with corporate strategy in recycling or with recycled content, reducing packaging, using less
toxic materials to diminish bad green product is characterized by features such as “original
grown, recycle/ reusable, contain natural ingredients, contain recycled content, do not pollute
environment, contain approved chemical and not test on animals” (Panvan, 2010). Moreover,

Shamdasami et al. (1993) stated that green products as the product that will not pollute the
earth or deplore natural resources, and can be recycled or conserved. In general, Roy, Wield,
Gardiner and Potter (1996) depicted green product through its objectives showed in Table 2.1.
Table 2.1 : Objectives for a green product
 Capable of lessening global environmental problems
e.g. eliminate CFCs (chlorofluorocarbons); reduce CO2 (carbon dioxide) emissions
 Energy efficient
 Easily repairable
 Designed to last , or to be reused, reconditioned or recycled
 Generates minimum pollution and waste
 Can be disposed of safety
 Minimal use of materials, including packaging
 Manufactured, if possible, locally and from locally obtainable materials to reduce
transport requirements
 Environmental information on product available to purchaser
 Not harmful to human health
 Satisfies a genuine human need
2.2 Purchase intention
According to Whitlark, Geurts and Swenson (1993), purchase intention is a purchase
probability associated with an intention category at the percentage of individuals that will
actually buy product. They are indications of how hard people are willing to try, or how much
of an effort they are planning to exert in order to execute the behavior; in short, the stronger
the intention to engage in certain behavior, the more likely an actual behavior would be
performed (Ajzen, 1991). Nik, Jusoff and Kassim (2009) referred green purchase intention as
the probability and willingness of a person to give preference to products having eco-friendly
features over other conventional products in their purchase considerations. Similarly, Chen
13


and Chang (2012) defined green purchase intention as the likelihood that a consumer would

buy a particular product resulting from his or her environmental needs. Constructs like
considering something purchasing a brand and anticipating to purchase a brand aids to scope
the intentions of purchasing (Porter, 1974). Porter (1974) also elaborated customers’ intention
to purchase a focused brand is not merely by his same brand attitude, but also by his attitudes
leading to other brands in choice of set considered. Porter (1974) explained that customers
buying behavior also depend on the level of existing competition in the industry. Schoen
(2004) explained a type of loyal customer, whose purchase intention is insensitive to pricing
and the show their loyalty by suggesting positive recommendations to firm and even investing
money in the brand which show their extreme trust in the brand.
Besides, Chan (2001) defined green purchase as a specific kind of eco-friendly
behaviour that consumers perform to express their concern to environment. Purchase
intention is a critical factor to predict consumer behaviour (Fishbein & Ajzen, 1975).
Consumers’ intention has been used as a proxy for actual behaviour (Follows & Jobber, 1999).
Kotler and Armstrong (2001) argued that, in the evaluation stage, the consumer ranks brands
and forms as part of the considerations in the purchase intention process. Purchase intention
are completely under the consumer's volitional control (Dodd, 2010). There were also other
scholars who have conducted similar studies on purchase intention. Anand, Holbrook, and
Stephens (1988) and Laroche, Toffoli, Kim and Muller (1996) testified the advertising
endorser's exposure rate can change consumer's preference and attitude and promote purchase
intention. Wang (2006) used brand image as independent variable, product category as
moderator, and purchase intention as dependent variable and found that the higher the brand
image is, the higher the purchase intention. Moreover, Kamins and Marks (1991) and Laroche
et. al., (1996) found that consumer's brand attitude and purchase intention will be higher when
a product has high preference image and familiarity. In the context of purchase intention for
the green product, Iman and Zainuddin (2011) concluded that the perceived government
legislation did not have an influence neither on environmental attitude nor purchase intention.
Ng and Paladino (2009) conducted an empirical investigation amongst young consumers
within the Australian context on the purchase intention on green mobile phones. The study
14

indicated that peers and environmental knowledge appeared to be significant factors in
encouraging green purchase. In any circumstances, consumer’s purchase intention is kind of
the intention which consumer has interesting thought and then makes a decision to buy; first
impression always takes shape in consumers’ mind that becomes an intention. In fact,
intention is the best predictor of behavior (Ajzen, 1991).
2.3 Eco - label
Label is considered as an important tool to communicate with consumers about
information, characteristics, functions and assertion of safety of product. According to
D’Souza, Taghian, Lamb and Peretiatkos (2006), environmental labelling on products is an
effective way of communicating to the customer the specific benefits and characteristic of the
product and the claim of safety; thus, label is measured by accuracy and easiness to read.
Sammer and Wustenhagen (2006) advocate eco-label as an important marketing tool to
overcome market failure due to information asymmetries between buyers and sellers of
environmental friendly products. Marketers communicate green of brand to consumer through
information claims on label; for example, “eco ‐ friendly”, “environmentally safe”,
“recyclable”, “biodegradable” and “ozone‐friendly” (Morris et al., 1995). Likewise, Elham
and Nabsiah (2011) developed a conceptualized model that investigated the effects of ecolabel, eco-brand, and environmental advertising on consumers’ purchasing behaviour in
Penang, Malaysia. They suggested that these three marketing tools are useful in enhancing
consumers’ knowledge about environmental friendly products and their ability to distinguish
between green products and conventional products. Eco-label is a mean of information tool
that usually utilized logo to convey information to consumers on the environment implications
of buying such product (Tang et al., 2004). Sonderskov and Daugbjerg (2011) described ecolabel as a product claim to furnish consumers with credible and easily accessible information
on the environmental attributes of a product. Moreover, some previous researches showed
that eco labels have an effect on consumer perception and behavior in the positive way as
well as help companies expand market share (Kuhn, 1999; Rashid, 2009). Philips products
that have a Green logo offer consumers and society an environmental improvement of energy
efficiency, recycling, disposal and lifetime reliability. Based on this discussion, the following
15

hypothesis (H1) is proposed
H1: Eco-label positively affects purchase intention towards green products.
2.4 Green packaging
Van Dam and Van Trijp (1994), in their attemp to unveil consumers’ perceptions and
preference for beverage containers in the Netherlands, define green packaging as to the extend
consumers recognize environmental aspects in their overall preference formation. Packaging
is communication tool between businesses and consumers and it is capable of attracting
consumers’ attention. Consumers’ overall perception of packaging is a sum of individual
perspective of packaging shape, size, colour, materials, and labelled information. According
to Gaafar and Ra’id (as cited in Panwar, 2004), packaging is to contain, protect and present
the information through sequence of producing, handling and transporting good to the point
of arrival with state of good as the moment of production. In the other point of view, Joonas
and Liisa (2008) stated that packaging research had focused on communicative characteristics
of the package such as labeling, functionality, colour, size (Roper & Parker, 2006; Silayoi &
Speece, 2007). On the other hand, in the field of environment, Lamb et al. defined the
terminology of packaging associated with four functions. In that, three functions is relatively
similar to non-green products are contain and protect products, promote products, and
facilitate the storage, use and convenience of products and the fourth role of packaging is
important with function of recycling and reducing environmental damage. In a more recent
study, Juwaheer, Pudaruth and Noyaux (2012) analyzed the impact of green marketing
strategies on consumer purchasing patterns in Mauritius, and developed a conceptualized
model that consisted of five predictor variables. One of the predictor variables is consumers’
perceptions towards green packaging, and eco-labelling is conceptualized as a twodimensional variable with three measurement items for green packaging and two
measurement items for eco-labelling. Additionally, Rosa and Devashish (2010) researched,
interviewed and stated that initiatives for packaging include use materials which are natural,
biodegradable or recycled. The following hypothesis (H2) is proposed
H2: Green packaging positively affects purchase intention towards green products.
16

2.5 Green corporate perception
Okada and Mais (2010) describe that green companies are contrasted with non-green
companies in the extend to which they take proactive measures in environmental
sustainability and position themselves based on environmental philosophy. Furthermore,
Aysel (2012) stated that strategies targeting not only making a profit for the day but also for
long-term profitability and environmentally friendly sustainability have started to become
agendas of the companies. Corporate ethical code of the 21st century is being green.
Companies should be aware of their responsibilities towards the environment and the society
in the same way as towards clients, shareholders and employees. Climate change,
environmental issues and social problems will challenge the leaders of future generation for
taking efficient and comprehensive decisions (Aysel, 2012). The basic concern for most
businesses is more an attempt to manage their firm’s resources towards environmental
impacts effectively and efficiently, rather than the restructuring of the business and their
market offerings around environmental safety issues (D’Souza et al., 2006). Corporate
perception, which is evaluated through socially responsibilities and environmental concerns
of organizations by customers, influences on consumers’ purchase intention. Corporate
perception about environmental protection has accepted into organizational strategy with
managing their resource effectively, rather than restructuring business. Besides, the challenge
of firms is to balance environmental concerns with profit and competition in the market
(D’Souza et al., 2006). Based on these considerations, the hypothesis (H3) follows
H3: Green corporate perception positively affects purchase intention towards green
products.
2.6 Green product value
A study by Bhaskaran et al. (2006) indicated that customers do not perceive those
products produced under environmental sustainable standards as offering any distinct benefits
to them and customers distrust the claims made by these organizations. This is the way
consumer perceives about safe of product in aspect of quality and price (D’Souza et al., 2006).
Characteristics of traditional product such as brand name, price and quality are still the most
concern of consumer when purchase product. Green products are perceived as lower quality

and higher price by most consumers. In addition, these products are more costly to
17


manufacture than conventional products, and thus, they are simply more expensive for
consumers to purchase (Royne et al., 2011; Sonderskov and Daugbjerg, 2011). Hence, Chen
and Chang (2012) suggested that companies should develop products with both green features
and high-value attributes to attract consumers. They further argued that increasing consumer
perceived value about green products may make customer no more doubtful about green
products and enhance consumers’ purchase intention. Therefore, green products also have to
create competitive advantage about not only environmental aspects, but also other important
product characteristics like price, quality, convenience and durability (Diamantopoulos et al.,
2003). The green product value indicates the hypothesis (H4)
H4: Green product value positively affects purchase intention towards green products.
2.7 Green Advertisement
Most consumers can not be sure to identify whether a product is really green or not.
Labels can not communicate all content of product to make consumer trust. Therefore,
advertisement is a tool to help marketers spread out green message of product to consumers
more easily and efficiently. Elham and Nabsiah Abdul (as cited in Chase & Smith, 1992)
stated that environmental messages in advertisements and product labeling was found to
“sometimes” influence the purchasing decisions of 70 percent of the respondent. In addition,
consumers are more positive with green product in the condition that environment message
of product is credible (Habib et al., 2010; Mathur and Mathur, 2000). Whereas Chan (2004)
defined green advertisement as claims that the attributes of the advertised product or
associated production process contributed to environmental protection or with other positive
effects to the environment. Corporate environmental advertisement typically contains three
elements (Davis, 1994): First, the advertisement presents a general statement of corporate
concern for the environment. Second, the advertisement describes how the corporation has
initiated a number of activities to demonstrate its concern and commitment towards
environmental improvement. Third, the advertisement provides a description of specific

environmentally related activities, in which the corporation is engaged and / or outcomes for
which the corporation takes credit. Based on the previous researches, consumers’ affective
responses are influenced by other ads, consumers’ emotions and the current circumstance
18


(Gardner, 1985; Aaker et al., 1986). Therefore, how the consumers feel about the ad that they
are exposed will affect their assessments of the brand (Edell & Burke, 1987). The study of
consumers’ attitudes towards green advertising has been very comprehensive. Consumers
who are environmental concerned normally have generated positive attitudes towards green
advertising and environmental issues (Carlson et al., 1993). From that, the hypothesis (H5) of
green advertisement is indicated
H5: Green advertisement positively affects purchase intention towards green products.
2.8 Conceptual model
The main purpose of this study is to investigate if consumers’ perception on green
corporate, eco-label, green advertisement, green packaging, and green product value
influence their green purchase intention in Ho Chi Minh City.
In Ho Chi Minh City, green product has new features which consumers are familiar
with; thus, they could not have enough experience to evaluate a green product. Consequently,
the research model with factors affecting directly on purchase intention about green products
is showed in Figure 2.1
H1+

Eco-label

Green packaging

H2+

Green product

value

H3+

Purchase intention

H4+

Green corporate
perception

Green
advertisement

H5+

Figure 2.1: Research Model
19


CHAPTER 3: RESEARCH METHODOLOGY

This chapter presents research methodology of this study. Firstly, it started with
research approach, introduced about methods using for this research. Secondly,
measurement scales are followed by sampling and data collection methods. Thirdly, data
collection methods are mentioned in this chapter. Finally, this chapter also aimed at data
analysis methods and presenting the purpose of using that method.
3.1 Research approach
This research mainly applies quantitative method while qualitative method is used to
support. Quantitative method aims to collect, analyze the data in order to come up with

findings. Qualitative method helps to build and improve the survey explain more clearly for
findings and results which is analyzed by quantitative approach. Concerning to the qualitative
phase, the Vietnamese version of the survey questionnaire is pre-tested using in-depth
interviews during two weeks with five experts to collect their ideas about the accuracy, the
clarity, and the understandability of the questionnaire. During the interview, the author
decides to find out if the chosen measurement scale is suitable for conducting the research in
Ho Chi Minh City. All the comments from the interviewees are gathered with the aim to
modify the measurement scales.
3.2 Sampling
The survey is conducted in Ho Chi Minh City where is the most populous city. The
target population is green consumers who are belong to many social backgrounds such as
office staff, teacher, businessman, doctor, engineer, etc…They have quite clear overview that
green products include energy – efficient light bulbs, eco bags, recycled paper, electric steam
irons, organic foods and over in the survey. Especially, the survey concentrates on office staff
in corporation groups including Petrovietnam, Vinamilk and Bankings. The survey is sent to
these places by directly hand, email or post. In details, this research exploits the quantitative
method (questionnaire survey) to empirically examine the relationship between eco-label,
green packaging, green corporate perception, green product value, green advertisement and
the purchase intention.
20


Furthermore, the target respondents of this research are individual consumers who are
over 18 years old, with the assumption that this group of consumers has middle income and
over, being aware of green products and independent in their own decisions for choosing the
right products among many available choices.
In terms of sample size, Haire et al. (2009) stated that the minimum sample for
appropriate use for statistic analysis is equal to or greater than five times of number of
variables, but not less than 100.
n>=100 and n>=5k (k: number of variables)

The model in this study consists six factors with twenty-six variables, thus, at least the
necessary sample size should be: 5*29=145 observations.
For Exploratory Factor Analysis, a general rule is that the minimum sample size is to
have at least five times as many observation as the number of variables to be analyzed and
larger than 100 (Hair et al., 2009). This the minimum sample size by EFA in this research is:
n=5*29=145 observations.
3.3 Data collection methods
Before collecting data, the pilot study is carried out to test preliminarily the viability
of the questionnaire and to see if there are any needed modifications or improvements. The
in-depth interviews are conducted in order to modify and revise all observed items of the draft
questionnaire to make improvement for the official questionnaire.
Convenience sampling is conducted for the sampling process in the study. The original
English questionnaire is translated into Vietnamese and back translated for validity check
purposes. Participants are self-completed surveys with most of items measured by 5-point
Likert scale. The questionnaire is divided into two sections. The first section explores
demographics information which include living place, gender, age and education of the
respondents. Such information is used to classify and compare groups of respondents.
Furthermore, this section includes a screening question to identify exactly the target respondent

of this survey. Screening question is the following question: “Have you ever heard about
green products?”. The respondents will answer this question before starting doing the survey.
If anyone answers “No” meaning that they are not the target respondents of this survey and
21


they will stop their job. The second section explores the determinants affecting to the
consumers’ purchase intention towards green products.
The questionnaires are delivered to respondents through two ways of handling directly
to respondent or indirectly by email which suggests using online Google Drive to survey. A
cover letter is also attached explaining the purpose of the study. Moreover, informed consent,

explanation of study, procedure of maintaining confidentiality, and detailed instructions on
how to complete the questionnaire successfully is included. For those questionnaires
completed through hard copy format, the data is entered manually. For those questionnaires
completed through the Google Drive web link, the data is converted into a database in an
SPSS format file for analysis.
3.4 Measurement scales
This study will examine relation between factors of green products and purchase
intention. The measurement scale for this research is built and mainly based on measurement
scale of Wilson et al. (2014). Besides, items are referred from other measurement scales
which are suitable for the consumers’ purchase intention towards green products in the context
of Ho Chi Minh City. Items are measured by 5-point Likert scale (1= strongly disagree, 2=
disagree, 3= neutral, 4= agree, 5= strongly agree)
The green products constructed in this study were multi-dimensional constructs, which
comprised of five independent variables; namely, eco-label, green packaging, green corporate
perception, green product value and green advertisement. In detail, eco-label is assessed by
using a 5-item measure: Wilson et al.’s 3-item eco-label scale (2014) and Thanika et al.’s 2item label scale (2012). Actually, eco-label is conceptualized as a single-dimension variable
that consists of five items, ranging from consumers’ recognition of various eco-labels, use of
eco-labels, the comprehension of the meaning of eco-label, and trust of the eco-label’s
message (Wilson et al., 2014).
Coding

Contents

EL1

I consider what is printed on eco-labels to be accurate.

EL2

The information on eco-labels is usually easy to understand.

EL3

Green label is prerequisite criteria to consider a green product.
22


EL4

Green advertisements are always trustworthy.

EL5

Sufficient information is provided on eco-labels.

Green packaging is measured using the scale developed by Wilson et al. (2014). This
scale contains five items which each respondent is asked to indicate either agreement or
disagreement with each of five items using a 5-point Likert scale.
Coding

Contents

GP1

That the packaging is made from recyclable materials.

GP2

That the packaging is biodegradable.

GP3

That the packaging is recyclable.

GP4

That the packaging is reusable.

GP5

That the product has no excessive packaging.

Green corporate perception is conceptualized as a single dimension variable based on
a study by D’Souza et al. (2006) and Smith and Perks (2010). D’Souza et al. (2006) offered
measurement scale with 2 items like companies should give priority to reducing pollution
even if jobs are at risk, and companies should aim to reduce pollution than increase profit.
Furthermore, Smith and Perks (2010) indicated a 3-item measure which is greening the
business functions by the corporation.

Coding

Contents

GCP1

Companies should place higher place priority on reducing pollution than on increasing their own
profitability.

GCP2

Companies should place higher place priority on environmental protection than on increasing their
own profitability.

GCP3

Companies create byproducts, recycle and re-use to eliminate waste.

GCP4

Companies use alternative energy sources in production and manufacturing processes.

GCP5

Companies use space - saving warehousing or storage facilities to reduce environmental impact.

Based on the study by Wilson et al. (2014), the green product value is assessed by using a

5-item measure.
Coding
GPV1

Contents
This product’s environmental performance meets my expectations.
23


GPV2

This product’s environmental functions provide very good value for me.

GPV3

I purchase this product because it has more environmental benefits than other products.

GPV4

I purchase this product because it has more environmental concerns than other products.

GPV5

I purchase this product because it is environmentally friendly.

Green advertisement is based on measurement scale of Wilson et al. (2014) and
Thanika et al. (2012). Hence, green advertisement which is conceptualized as an independent
variable comprises 5 items.

Coding

Contents

GA1

Green advertisements are attractive.

GA2

The contents of green advertisements are of great relevance to my daily life.

GA3

Green advertisement should promote environmental friendly products in a
credible manner.

GA4

Environmental advertisements are not exaggerated for Green Products.

GA5

Overall, I’m satisfied with the information currently available on the eco-label of the products I
purchase.

Purchase intention towards green products is conceptualized as a single-dimension
variable, which is in line with Wilson et al. (2014). The green purchase intention scale
contains 4 items which is shown below:
Coding

Contents

PI1

I would buy green products that are not harmful to the environment.

PI2

I plan to switch to a green version of a product.

PI3

I consider switching to other brands for ecological reasons.

PI4

I consider buying green products because they contribute to less pollution.

3.4 Data analysis methods
Two methods, Cronbach’s reliability and factor analysis, are used to assess and select
the final items (5-point questionnaire responses) that will be employed for hypothesis testing.
First, Cronbach’s reliability coefficient is calculated for the items of each higher level
24


construct (e.g., purchase intention). A coefficient of .70 is considered the cut-off level of
reliability recommended for theory testing research (Nunnally & Bernstein, 1994). Items that
do not significantly contribute to the reliability will be eliminated in the interests of
parsimony.
Then Exploratory Factor Analysis (EFA) to examine reliability and validity of the scale
measurement. Factor analysis is applied to determine whether the items in fact aggregated
around their proposed factors, and whether the individual items are loaded on their appropriate
factors as intended. Factor analysis with a Varimax rotation technique is conducted on all
measured items. Finally, multiple regression is used to identify the correlation and measure
the impact level of each independent variable to purchase intention towards green products.
After all, results of hypotheses testing are also discussed.

25