Effects of green consumption on people in Binh Duong province

757 EFFECTS OF GREEN CONSUMPTION ON PEOPLE IN BINH DUONG PROVINCE Pham Van Chinh pvchinh090389@gmail.com Gia Dinh University, Binh Duong, Vietnam Abstract Protecting the environment while maintaining economic growth has been a big issue in many developing countries including Vietnam. According to Gardner & Stern [1], environmental issues such as global warming, climate change, etc., are by nature closely linked to human behaviors. In addition to the Government and businesses, individual consumption behaviors also have a role to play in environmental protection. Therefore, this research focuses on factors affecting green consumption intentions of people in Binh Duong province, using the Theory of Planed Behavior (TPB) approach. The research is based on results of direct survey with consumers in Binh Duong province. Keywords: Environment, Green Consumption, Binh Duong Province, Climate, Behavior 1. Introduction As environmental protection is a great concern in many countries, green consumption has become a tendency in the century. The more consumers are interested in environmental protection, the more they pay attention to green purchase. Awareness on environmental protection has remarkably changed behaviors of consumers. Presently, green consumption is very popular in Vietnam in general and in Binh Duong in particular. Economic growth in Vietnam has resulted in serious decline of natural resources and increase of pollution. Green purchase, green consumption, and raising awareness on environmental protection are considered effective solutions to this problem. Support of the Government and determination of businesses are essential for promotion of green consumption in Vietnam. Green purchase of consumers also plays a key role. As pollution and food safety become a key concern in Vietnam, many organizations and private businesses have started producing and trading in green food products. However, how to transfer awareness into action on green consumption depends very much on various factors, both subjective and objective factors. In practice, there is still a big gap between green purchase intention and actual behaviors in Binh Duong province. 2. Theoretical Bases and Research Models 2.1. Theoretical Bases 2.1.1. Theory of Reasoned Action (TRA) and Theory of Planed Behavior (TPB) TRA was first developed in 1967 by Fishbein, revised and expanded by Fishbein and Ajzen in the following decades. The theory focuses on personal behavioral intention. 758 Accordingly, trust, attitude, intention and behavior are closely linked to each other and might be used to predict what a person might do or might not do. Intention is understood as a plan or ability to perform in a specific manner in a certain circumstance. In order to understand behavioral intention, it is important to point out personal efforts in taking an action. TRA looks at personal attitude to behaviors and subjective norms. TPB was derived from TRA by Ajzen and Fishbein. According to TPB, behavioral intention is affected by attitudes, subjective norms, and perceived behavioral control as an additional element to TBP model. Basically, perceived behavioral control means personal awareness on ease or difficulty of a certain behavior in controlling perceived behaviors, which might indirectly affect such behavior. This mainly creates difference between behavioral intention and actual behaviors. 2.1.2 Consumer Behavior Theories Kotle believed that marketing factors (product, price, location, and promotion) and external factors affect consumer awareness, combining with consumer characteristics in making certain purchase decisions. Marketing experts must understand what is happening inside the customer‘s awareness affected by external factors in making purchase decisions. Kotle introduced a 5-stage model of consumer goods purchase process including aware of the goods, searching for information, assessing options, making purchase decisions, and performing purchase behavior. It is noticed that consumer intention often occurs before consumer behavior. As a result, factors affecting consumer behavior also affect consumer intent. This forms the backdrop for identifying factors affecting green consumption intention based on researches on green consumption behaviors using the following theories. A green product is an ecological and environmental-friendly product. A green product might also be a product causing pollution or damages to natural resources but is recycled or reserved (Vazifehdoust and ctg,2013) Green consumption was first mentioned in 1970 (Peattie, 2010 ) and a number of studies have expanded the term since then. However, green consumption is still a relatively new conception relating to acts of purchasing products which are friendly to the environment, not causing harm or being good for the health of human beings, and acts of using products in a manner that causing least harm to the environment. Consumer intention: consumer intention reflects trust of consumers in series of consumer behaviors (Ajzen and Fishbein, 1980). According to Ajizen (1985), consumer intention is considered a personal driver in planning and making decisions on performing a certain behavior. Ajzen (2002) assumed behavioral intention as an intermediate condition in performing a behavior. Behavioral intention implies a personal willingness in performing a certain behavior. Green consumption behavior: there are various definitions of green consumption, mostly based on definitions of consumer behavior and green product. In general, green consumption behaviors consist of a series of behaviors ranging from purchasing green products to using green products in a manner friendly to the environment (for example, energy saving, recycling, reuse, using green packaging and treatment of wastes) 759 2.1.3 Interest in Environmental Issues and Green Consumption Intention Interest in environmental issues reflects a personal tendency and interest in environmental issues. This is very useful in forecasting perceived behaviors relating to environmental issues including green purchase (Kim and Choi, 2005). Studies by Mainieri and ctg (1997) and Roberts (1999), Kim and Choi (2005), Samarasinghe (2012) confirmed a positive relation between interest in environmental issues and green intention and behaviors. It is logical to believe that people with green consumption intention are also interested in environmental issues as such interest guides them in making positive actions in transferring behavioral intention into green consumption intention. 2.1.4 Awareness on Environmental Protection and Green Consumption Intention This is personal assessment on good and bad behaviors. It is explained and assessed by behavioral results. According to Ajzen [10], if a person has a positive attitude to a certain behavior, it is very likely that his/her intention to perform such behavior is higher. Some researches also show positive attitudes towards green consumption behaviors [12,13,14]. Consequently, H1 assumption is proposed. Accordingly, personal attitude towards certain behaviors has positive effects on green consumption behaviors. Subjective norms: subjective norms mean confidence in other people supporting or not supporting personal behaviors [15]. Results of a research by Vermeir & Verbeke [16], Chen [17 ] confirm positive effects of subjective norms on green consumption intention. As a result, H2 assumption is proposed. Accordingly, subjective norms have positive effects on green consumption behaviors. Perceived behavioral control: perceived behavioral control consists of two elements: controllability and consumer perception on effectiveness of controllability, i.e. ease and difficulty in finding and purchasing products [18]. Many researches also find out that personal confidence in behavioral control has positive impacts on consumer intention. [19]. Consequently, H3 assumption is proposed. Accordingly, controllability has positive effects on green consumption behaviors. 2.1.5 Awareness on Green Products and Green Consumption Intention Awareness on green products is personal knowledge on factors relating to green products including patterns, sizes, etc. Consumers are also able to distinguish between green products and traditional non-green products based on their environmental-friendly features and places of production and delivery. Lack of knowledge on green products and their features is one of key issues in green consumption behaviors. According to a research of Hessami and Yousefi (2013), awareness on green products has positive effects to green consumption intention. 2.1.6 Social Impacts on Green Consumption Intention Social impacts play a key role in increasing awareness on green products of consumers in general and those in Binh Duong province in particular where most of the population are immigrants with low awareness and income, resulting in changes in green 760 consumption intention and behaviors. According to Sinnappan and Rahman (2011), Hessami and Yousefi(2013), there is a positive relation between social impacts and green consumption behaviors, which can be found in Binh Duong province. In order to understand more about factors affecting green consumption intention, this research looks at two additional factors including: Eco-labels or environmental labels are descriptions on productions to provide information on environmental impacts during production and use of such products [21]. A research by Rashid [11] shows eco-label programs are applied in many Asian countries such as China, Japan, Malaysia. Eco labels affect consumers with information on impacts of their purchase behaviors to the environment and how eco labels has positive impacts on green consumption behaviors and intention of people in Binh Duong province. According to a research by Loureiro &Lotade [22], consumers in developed countries are willing to pay higher prices for products with eco labels. Thogersen points out importance of visibility, understandability and reliance of eco labels in affecting green consumption behaviors [23]. Eco labels are considered useful tools for consumers to minimize environmental impacts and pollution [24]. Some researches show that awareness on eco labels does not automatically guide consumers in making decisions on green consumption and most consumers find it difficult to link environmental issues with products [31]. In Vietnam, the Government approved a program on eco label issuance on 5 March 2009 for businesses registered for ISO 1400. Environmental knowledge: the knowledge includes information, definitions and links between the environment and its eco system [26]. The knowledge also reflects awareness on environmental issues of individuals, links between aspects of the environment, and awareness on environmental protection for future generations [18] 2.2 Research Methodologies The research has two phases: preliminary quantitative survey with 180 consumers in Binh Duong province in June 2017 and the official research in August 2017. Preliminary measuring scale consists of 35 variables as follows: 4 variables on personal attitude impacts on behaviors of Do valle et al[30], 4 variables on subjective norms of Vernier &verbeke[16], 5 variables on control of availability of Sparks & Shepherd [31], 4 variables on perception of consumers on behavioral effectiveness of Roberts [32], 5 variables on environmental knowledge of Kwek [33]. Rizwan [34] . Awareness on effectiveness Subjective norms Eco label Environmenta l knowledge Control of availability Green consumption intention 761 3. Results and Discussions 3.1 Research Results Verifying the measuring scale After removing variables such as CCQ04 (subjective norms), KS11 (control of availability) and NST24 (eco labels), analysis of reliance of the measuring scale shows that all requirements are met with Cronbach‘s alpha > 0.6 and other values ranging from 0.630 to 0.836. Analysis of principal component and Varimax rotation factors of 30 independent and dependent variables leads to results as follows: KMO coefficient (0.735) meets requirements while data is proved appropriate with Sig. = 0.000 using Barlett approach. Five variables on eco labels of Kwek [33], Wang [35]. Kong [36]. Based on preliminary research results, two statements in the measuring scale are adjusted and two new variables on eco labels are added to align with four researches. The official survey questionnaire includes 33 variables using 5-point Likert measuring scale and two definitions on green consumption behavior and eco label. Questionnaires are directly distributed to consumers aged 20 and older in Binh Duong province. 210 out of total 220 distributed questionnaires are responded, 17 of these are invalid due to lack of information. Five independent variables and one dependent variable are extracted with total variance of 59.538. Specifically, for control of availability measure - reducing from 4 variables to 3 variables, for environmental knowledge measure - reducing from 5 variables to 4 variables, for eco label measure - preserving 6 variables, for subjective norm measure – preserving 3 variables, for new factors combining personal attitude with consumer behavior and perception on behavioral effectiveness - reducing from 8 variables to 6 variables, as these two factors relate to awareness on effectiveness of green consumption on environmental protection, they are considered awareness on effectiveness factors. With respect to the dependent factor, i.e. green consumption intention - reducing from 4 variables to 2 variables. Therefore, assumption H7 is proposed. Accordingly, awareness on effectiveness has positive effects on green consumption intention. Verifying research models and assumptions: Regression analysis results in adjusted R2 of 0.194. This means variance of the dependent variable of green consumption intention explained by independent variables is 19.4%. Table1: Regression analysis results - green consumption intention in Binh Duong province Unstandardized coefficients Standardized coefficients t Sig. B Standard error Beta 1 Constant 0.512 0.494 1.036 0.302 Eco label 0.217 0.089 0.181 2.447 0.015 Awareness on effectiveness 0.236 0.096 0.174 2.448 0.015 Subjective norms 0.106 0.069 0.109 1.529 0.128 Environmental knowledge 0.283 0.083 0.231 3.405 0.001 Control of availability 0.053 0.077 0.051 0.689 0.492 762 While results are low, they are still meaningful in explanation of relation between research model and green consumption intention as the purpose of the research is using TPB approach with additional eco label variables. As F value of Sig. = 0.000, the research model is in line with observed data. Statistics from Table 1 show that 3 out of 5 independent factors have positive effects on green consumption intention. Consequently, H5, H6, H7 assumptions are supported by this research. 3.2. Discussions Research results show that green consumption intention is affected by three factors: environmental knowledge (β =0,283), awareness on effectiveness (β =0,236) and eco label (β =0,217). Environmental knowledge and awareness on effectiveness having positive effects on green consumption intention are similar to results of the research conducted by Giang & Tran [6]. Subjective norms and control of availability have no effect on green consumption intention. The research also finds out that eco label has positive effects green consumption intention. Results of the research confirm that environmental knowledge forms the backdrop for green consumption intention. Awareness on effectiveness combines attitude and perception. Consumers‘ environmental knowledge on positive effects of green consumption on the environment will affect their green consumption intention. Consumers in Binh Duong province have similar community activities like other Asian countries relating to green consumption [38, 39]. As eco label links environmental knowledge with awareness on effectiveness of consumers, it has certain effects on green consumption intention. This is new compared to results of the research by Giang & Tran [6] but similar to those of Kwek [33]. Subjective norms and control of availability have no effect on green consumption intention due to the nature of surveyed groups mostly young people aged under 35 (60.6%) with post graduate qualifications (74.6%). They have deep knowledge, independent thoughts not affected by other people as well as are able to update information promptly and easily. This is confirmed in the research of Hoang&Nguyen [3]. 4. Conclusions and Recomendations According to the research, environmental knowledge, awareness on effectiveness, and eco label are the top three factors affecting green consumption intention of people in Binh Duong province respectively. Based on comparative research of average value of three factors including environmental knowledge (3.6), awareness on effectiveness (4.09) and eco label (3.07), the author makes recommendations. As value of eco label is lower than that of the remaining two factors and eco label combines environmental knowledge and awareness on effectiveness, the research focuses on making recommendations on programs to promote eco label in Binh Duong province, aiming to increase awareness on green consumption intention and help consumers to understand importance of production, use and performance of green consumption behaviors in order to protect the environment and public health. These programs should aims at affecting the community as a whole but not each individual [23]. The Government must improve trust of the people on eco label 763 through publication of information and making process for eco label registration transparent, establishment of mechanisms for monitoring business activities after registration; making eco label more visible and understandable to consumers through eco label design competition to help consumers understand environmental-friendly characteristic of the products and promote eco label to consumers, businesses especially those providing green consumption products. Eco labels must be more visible and understandable to consumers, focusing on communication, advertising, organizing trade fairs for green consumption, aiming to distinguish green consumption products with normal electricity products through production, use and recall of products, highlighting the information on eco labels. Besides positive contributions, the research also has certain limitations. Firstly, relating to sample representation, as samples are taken for the purpose of convenience, most of surveyed people have post graduate degrees aged under 35 years old. Secondly, it is not enough that the research only focuses on 6 factors affecting consumption intention. As a result, adjusted R2 is only 19.4%. Therefore, in order to improve the research, new factors affecting the model should be added such as activities of the Government [33], culture, business information [40], etc. Reference 1. G.T.Gardner,P.C.Stern,Environmental problems and human behavior (2nd ed.).(Boston, MA:Pearson Custom Publishing,2002) 2. Follows, Scott B; Jobber, David, Environmentally responsible purchase behavior: A test of a consumer model, European Journal of Marketing, 34, 723-746 (2000). 3. Hai.V.H &Mai.P.N, Environmental Awareness and Attitude of Vietnamese Consumers towards Green Purchasing,June 2, 2013. ISSN 2588-1108,VNU 4. Commun