17062988

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Predicting consumer intentions to purchase energy-efcient products Hong-Youl Ha Department of Marketing, Kangwon National University, Chuncheon-si, South Korea, and Swinder Janda Department of Marketing, College of Business Administration, Kansas State University, Manhattan, Kansas, USA Abstract Purpose  – This research aims to examine behavioral intentions toward purchase of energy-efcient products utilizing the theory of reasoned action framework. Design/methodology/approach – Survey data from a sample of 202 shoppers of electrical appliances and small electronic products was utilized to estimate the proposed model. Findings  – The main nding is that attitude toward energy-efcient product has a stronger effect on intentions compared to the subjective norm component. Research limitations/implications  – In order to maximize use of their nancial resources, companies marketing energy-efcient products need to focus more on enhancing consumer attitudes toward their brands and spend relatively less on efforts to educate consumers about using energy – efcient appliances in general. Practical implications  Sinc e atti tudes are forme d from beliefs and knowledge, use of infor mational ads that clearly illustrate energ y-sav ing consequences of their specic brands of products will be an effective marketing approach. Originality/value  – This study is timely considering the recent steady increase in energy prices accompanied by growing environmental concerns among businesses, governments, and consumers. Keywords  Attitude formation, Theory of reasoned action, Energy-efcient product, Eagerness of environmental engagement, Energy conservation, Consumer behaviour Paper type  Research paper An executive summary for manag ers and exe cut ive readers can be found at the end of this article. Introduction An enhanced sense of concern rela ted to gl obal climate change and increasing media coverage attributed to this issue has led to an increase in number of consumers acti ve ly seek ing out and ado ptin g ener gy-e fc ient produc ts. In a rec ent multi-country survey, res pondents reported that a corp ora tion’ s record of addressing key environme ntal and climate change issues has a bearing not only on how much they trust the company but also their likelihood of purchasing the company’ s produc ts (Bo nini  et al ., 200 8). Mor eov er, research suggests that the increasing environmental concern and a greater emphasis on global sustainability issues have in r ec e nt years become important pri ori ties of global organizations such as the OECD and the UN (Jansson et al., 2010). Several prior studies have also found, however, that enviro nment ally-c onscio us people do not show a consist ent prefer ence for purchas ing enviro nment ally- friendl y produc ts or in many cases are not willing to pay a premium for such products (e. g. Kil bourne and Pic ket t, 200 8; Ohtomo and Hirose, 2007 ). Prior resear ch also shows how busine sses have had very limit ed success in terms of market ing produc ts uti liz ing renewa ble ene rgy source s (Gl eason  et al ., 1996; Rader and Norgaard, 1996). A good und erstandin g of consumer att itu des toward env iro nme nta l issu es and consumpti on of green produc ts may be particularly important due to the previously outlined discrepancy between consumer opinions about environmental issues and actual purchase behavi or. In order to bet ter understand consumer attitudes toward energy-saving p ro du cts, it may be i mp or t ant to inves ti ga te how environmental attitudes are formed. It has been previously shown, for instanc e, that a con sumer genera lly concerned about the e nv ir o nment may st il l not be proa ct iv e in a behavioral sense unless he/she feels that individuals can play an active role in posit ively affecti ng the environment (Straughan and Roberts, 1999). Thus a study of attitudes in this context can provid e mea ningful ins ight int o pot ential pur cha se beha vior. As Eagly and Cha ike n (19 93, p. 191) reiter ate, “theories of behavi or should consider how people conceptualize and then execute the set of actions required to engage in a consequential behavior.” The current issue and full text archive of this journal is available at www.emeraldinsight.com/0736-3761.htm  Journal of Consumer Marketing 29/7 (2012 ) 461–469 q Emerald Group Publishing Limited [ISSN 0736-3761] [DOI 10.1108/07363761211274 974] This research has been supported by the National Research Foundation of Korea, NRF-2010-332-B00133. 461

Transcript of 17062988

  • Predicting consumer intentions to purchaseenergy-efficient products

    Hong-Youl Ha

    Department of Marketing, Kangwon National University, Chuncheon-si, South Korea, and

    Swinder JandaDepartment of Marketing, College of Business Administration, Kansas State University, Manhattan, Kansas, USA

    AbstractPurpose This research aims to examine behavioral intentions toward purchase of energy-efficient products utilizing the theory of reasoned actionframework.Design/methodology/approach Survey data from a sample of 202 shoppers of electrical appliances and small electronic products was utilized toestimate the proposed model.Findings The main finding is that attitude toward energy-efficient product has a stronger effect on intentions compared to the subjective normcomponent.Research limitations/implications In order to maximize use of their financial resources, companies marketing energy-efficient products need tofocus more on enhancing consumer attitudes toward their brands and spend relatively less on efforts to educate consumers about using energy efficient appliances in general.Practical implications Since attitudes are formed from beliefs and knowledge, use of informational ads that clearly illustrate energy-savingconsequences of their specific brands of products will be an effective marketing approach.Originality/value This study is timely considering the recent steady increase in energy prices accompanied by growing environmental concernsamong businesses, governments, and consumers.

    Keywords Attitude formation, Theory of reasoned action, Energy-efficient product, Eagerness of environmental engagement, Energy conservation,Consumer behaviour

    Paper type Research paper

    An executive summary for managers and executive

    readers can be found at the end of this article.

    Introduction

    An enhanced sense of concern related to global climatechange and increasing media coverage attributed to this issuehas led to an increase in number of consumers activelyseeking out and adopting energy-efficient products. In arecent multi-country survey, respondents reported that acorporations record of addressing key environmental andclimate change issues has a bearing not only on how muchthey trust the company but also their likelihood of purchasingthe companys products (Bonini et al., 2008). Moreover,research suggests that the increasing environmental concernand a greater emphasis on global sustainability issues have inrecent years become important priorities of globalorganizations such as the OECD and the UN (Jansson et al.,2010). Several prior studies have also found, however, thatenvironmentally-conscious people do not show a consistentpreference for purchasing environmentally-friendly products

    or in many cases are not willing to pay a premium for such

    products (e.g. Kilbourne and Pickett, 2008; Ohtomo and

    Hirose, 2007). Prior research also shows how businesses have

    had very limited success in terms of marketing products

    utilizing renewable energy sources (Gleason et al., 1996;

    Rader and Norgaard, 1996).A good understanding of consumer attitudes toward

    environmental issues and consumption of green products

    may be particularly important due to the previously outlined

    discrepancy between consumer opinions about environmental

    issues and actual purchase behavior. In order to better

    understand consumer attitudes toward energy-saving

    products, it may be important to investigate how

    environmental attitudes are formed. It has been previously

    shown, for instance, that a consumer generally concerned

    about the environment may still not be proactive in a

    behavioral sense unless he/she feels that individuals can play

    an active role in positively affecting the environment

    (Straughan and Roberts, 1999). Thus a study of attitudes in

    this context can provide meaningful insight into potential

    purchase behavior. As Eagly and Chaiken (1993, p. 191)

    reiterate, theories of behavior should consider how people

    conceptualize and then execute the set of actions required to

    engage in a consequential behavior.

    The current issue and full text archive of this journal is available at

    www.emeraldinsight.com/0736-3761.htm

    Journal of Consumer Marketing

    29/7 (2012) 461469

    q Emerald Group Publishing Limited [ISSN 0736-3761]

    [DOI 10.1108/07363761211274974]

    This research has been supported by the National Research Foundation ofKorea, NRF-2010-332-B00133.

    461

  • Extant research also indicates that consumer attitudes are

    one of the most relevant predictors of green purchasing

    decisions (Grob, 1995; Schlegelmilch et al., 1996). Thus, themain focus of this study is to understand consumer attitudes

    and behavior related to two product categories (energy-

    efficient electronics and appliances) purchased by a widevariety of consumers. This is accomplished by applying the

    theory of reasoned action [hereafter referred to as TRA]

    (Fishbein and Ajzen, 1975) in the context of energy-efficientproduct purchases. The ultimate goal of this study is to

    further understand consumer purchase behavior toward greenproducts and provide managerial implications for the benefit

    of companies that market such products.This study aims to contribute to the body of research on

    energy-efficient products in two important ways. First, by

    applying the TRA framework to the context of energy-efficient product purchases, we extend the overall body of

    theoretical knowledge surrounding the Theory of Reasoned

    Action. Second, we empirically demonstrate that our attitudeformation model for energy-efficient products has distinct

    behavioral implications. A deeper understanding of the

    consumer attitude formation process obtained from differentglobal markets contributes insights useful in predicting actual

    consumer behavior related to energy-efficient products.The remainder of the paper is organized as follows: we first

    outline key theoretical perspectives and summarize the

    proposed hypotheses. Thereafter, we provide an overview ofthe methodology, analysis procedures, and key results. The

    last part of the paper delves into the discussion and

    implications of this research and potential avenues for futureresearch.

    Overview of the theoretical framework

    The theory of reasoned action (TRA) posits that an

    individuals behavior is determined by his/her behavioral

    intention, which in turn is defined as a function of attitudetoward the behavior and subjective norm (Fishbein and

    Ajzen, 1975). The theory thus predicts intention to perform abehavior by the attitude toward that behavior rather than by

    attitude toward a product or service. This perspective may be

    particularly useful for predicting behavior in the energy-savingindustry because in this context consumers often decide to

    perform behaviors that they can associate with desirable

    outcomes (Bang et al., 2000). For instance, a shopper maypossess a favorable attitude toward an inexpensive refrigerator

    and may view that option as more affordable. However, while

    looking at different alternatives, s/he may decide on a high-performance energy-saving refrigerator. The final intention to

    purchase this particular product (even though it may often bea more expensive option) may be influenced by beliefs about

    the positive consequences of purchasing this product (in an

    environment where the issue of global warming gainsincreasing prominence) and the individuals level of

    motivation to comply with those normative beliefs (Hansen

    et al., 2004).An attitude has been noted in prior research as an

    evaluative appraisal (Bagozzi, 1992). If an individual makesfavorable (unfavorable) evaluative judgments, then attitudes

    will lead to intentions to perform (or not) the behavior.

    However, the TRA applies only to behaviors in which noexternal or internal impediments exist that may potentially

    prevent the behavior after the intention to perform the

    behavior has been established. In an attempt to minimize this

    criticism, we attempt to extend the theoretical framework

    proposed by Bang et al. (2000), who have previously appliedthe TRA to understand behavioral intentions in the renewable

    energy industry.The major constructs studied in this research include

    knowledge and beliefs related to the energy-efficient product

    being evaluated, confidence of consequence, environmental

    awareness, and eagerness of environmental engagement. We

    included environmental awareness and eagerness of

    environmental engagement in the study in order to better

    understand the subjective norm component of the TRA and

    in this sense to build on Bang et al.s (2000) findings. Figure 1outlines the framework of hypothesized relationships, which

    are discussed in detail in the following section.

    Conceptualization and research hypotheses

    Consumer knowledge is comprised of two major components:

    familiarity and expertise. Familiarity, or product related

    experience, is the first component of product knowledge,

    while the more profound component of product knowledge is

    expertise, or the ability to perform product-related tasks (Alba

    andHutchinson, 1987;Cordell, 1997). Product knowledge can

    include objective or subjective components.Weargue that in the

    context of environmental sustainability, objective knowledge

    may be a stronger contributor to the formation of consumer

    attitudes. Consumers who plan to purchase durable products

    such as refrigerators or washing machines may have little

    objective experience with a specific brand of the product

    (compared to the situation of purchasing a frequently replaced

    item).Thus, their perceptions andbeliefs about energy-efficient

    products as well as the environment will be shaped positively by

    objective factual information (Farhar, 1996).In the context of TRA, energy-saving products which are

    marketed as contemporary product innovations (and energy

    efficient devices) should enhance consumer beliefs. Bang et al.(2000) highlight that knowledge about green products leads

    to stronger beliefs about benefits of the use of green products

    and to more positively balanced beliefs about the impact of

    product use. Thus we propose the following hypothesis:

    H1. Consumer knowledge will positively affect beliefsabout energy-efficient products.

    Fishbein and Ajzen (1975) propose a relationship that links

    beliefs, attitude, intentions, and behaviors. Beliefs influence a

    consumers overall attitude about an object. Beliefs often

    reflect commonly available evidence about product

    characteristics that helps enhance peoples psychological

    comfort (Jervis, 2006). However, we argue that specific

    beliefs about consequences of energy-efficient products will

    affect specific attitudes toward use of an environmentally

    friendly product [rather than general beliefs about a concern

    for the environment] (Gardner and Stern, 1996; Hines et al.,1986/1987; Mainieri et al., 1997; Tanner and Kast, 2003).Thus the following hypothesis:

    H2. Stronger beliefs about engaging in behaviors favoringenergy-efficient products will positively affect

    consumer attitudes toward energy-efficient products.

    TRA posits that beliefs are based on knowledge, or that which

    the individual perceives to be true. Research in the decision-

    making realm has defined confidence as an individuals belief

    Predicting consumer intentions to purchase energy-efficient products

    H.-Y. Ha and S. Janda

    Journal of Consumer Marketing

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  • that his/her judgment is accurate (Berger, 1992) or that future

    events will occur as expected (Siegrist et al., 2003). As noted

    previously, both belief and confidence are psychologically

    classified as similar perceptions, but the degree of confidence

    reflects how sure the consumer is that the product addresses a

    genuine issue [it represents an environmental benefit in this

    context] (McDonald and Oates, 2006). Thus, confidence

    should be considered as an evaluation of consequences in the

    TRA.Self-confidence has been cited as an important construct

    for understanding consumer behavior. Similarly,

    psychological confidence is a fundamental aspect of human

    judgment and thought (Tormala et al., 2008). Confidence is a

    cognitive component that reflects the degree of conviction or

    certainty with which an attitude is held (Berger and Mitchell,

    1989; Krishnan and Smith, 1998). In the context of this

    study, confidence is defined as the extent to which an

    individual feels capable and assured with respect to his/her

    marketplace decisions related to energy-efficient products

    (Bearden et al., 2001). As such, confidence reflects subjective

    evaluations of ones ability to generate positive experiences as

    a consumer in this context (Adelman, 1987). Prior research

    has shown that attitudes play a more prominent role in choice

    behavior when they are confidently held (Fazio, 1990;

    Krishnan and Smith, 1998). This stance is supported by

    Straughan and Roberts (1999) who found that consumer

    confidence about the likelihood of affecting desirable

    outcomes had a strong effect on their attitudes and

    responses to environmental appeals. Correspondingly,

    research shows that people are more likely to engage in

    behavior related to environmental causes when they believe

    that they have the capability to help solve environmental

    problems through their behavior (Axelrod and Lehman, 1993;

    Grob, 1995; Tanner, 1999). Based on this discussion, the

    following hypotheses are proposed:

    H3. Consumer confidence will be positively related to

    attitude toward energy-efficient products.H4. Attitudes toward energy-efficient products are

    positively related to behavioral intentions.

    The present model proposes that the more conscious

    individuals are of the current state of the environment, the

    more likely they will be to act in an environmentally conscious

    way (Grob, 1995; Maloney and Ward, 1973). From a TRA

    perspective, environmental awareness may be considered a

    determinant of subjective norm. The environmental

    awareness is represented by environmental knowledge and

    the recognition of environmental problems (Grob, 1995). In

    pertinent situations, it should then be directly linked to

    whether environmental attitudes predict actual behavior.We propose that a heightened sense of environmental

    awareness may enhance a consumers sense of moral

    obligation, and in turn, indirectly affect environmental

    behaviors (OConnor et al., 1999). Since a personal norm,e.g. a feeling of moral obligation, is a powerful motivator of

    environmental behavior (Hopper and Nielsen, 1991; Tanner

    and Kast, 2003), we can expect a positive correlation between

    environmental awareness and subjective norm. This leads to

    the following hypothesis:

    H5. Environmental awareness is positively related tosubjective norms.

    Subjective norm refers to the influence of ones group of

    significant others on his/her behavior (Young and Kent,

    1985). Because the subjective norm is equal to the sum of the

    strength of each normative belief times the motivation to

    comply (Buchan, 2005), we propose it should positively affect

    consumer eagerness. Eagerness is conceptualized as a desire

    to take action and is similar to the desire measure adopted by

    Fitzmaurice (2005) and Perugini and Bagozzi (2001). We

    define it as the extent to which an individual has a strong

    internal drive to engage in an activity. This study uses

    eagerness to indicate a proactive stance toward environmental

    activity.Much research has suggested that consumers vary in their

    eagerness to engage in a new behavior (Bargh, 2002;

    Fitzmaurice, 2005). Consumer eagerness has been shown to

    encourage consumers to reach toward desired end states and

    in that sense eagerness would be expected to trigger a drive to

    engage in opportunities supporting sustainability goals (Pham

    Figure 1 Model

    Predicting consumer intentions to purchase energy-efficient products

    H.-Y. Ha and S. Janda

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  • and Avnet, 2004). Thus strong subjective norms related to

    engaging in an environmental behavior would enhance

    consumer eagerness if consumers feel that doing so wouldimprove the current environment. More specifically, such

    norms foster a more eager form of environmental behavior, inwhich the consumer is more willing to engage in the proactive

    environmental activity which leads to further behavioral

    intentions (Carver, 2001). This is also consistent with the ideathat subjective norms based on environmental motivations

    should encourage behavioral intentions (Fishbein and Ajzen,

    1975). Thus,

    H6. Subjective norms will positively affect consumereagerness.

    H7. Eagerness will positively affect behavioral intention.H8. Subjective norms will positively affect behavioral

    intention.

    Methodology

    Participants and procedure

    Well-established electronics and appliance stores wereselected in order to sample for respondents. A total of 320

    hand-delivered surveys were distributed to consumers outsideTechnomart and Etland in Seoul, South Korea. Etland is the

    number one store and Technomart is the second one by sales

    volume in the capital city of South Korea. Respondents whohad recently purchased energy-saving products (e.g. bulbs, air

    conditioners, TV, fridges, and washing machines) were

    selected into the sample.In each case, the primary shopper was asked to fill out the

    survey instrument. 218 surveys were returned, representing aresponse rate of 68.1 per cent. Due to missing information

    and inadequate responses, a total of 202 usable questionnaireswere obtained. Participants were 72 males and 130 females

    ranging in age from 26 to 57 years with a mean age of 41.3

    years (s.d. 7.14). In terms of gender distribution, theproportion of women in our sample (64.3 per cent) was

    found to be higher than the corresponding proportion in the

    nationwide population (51 per cent). This is reflective of theSouth Korean context where shopping on behalf of the

    household is still done more by women than by men. In total37 percent of participants indicated that their gross income

    was less than $30,000, 46 percent between $30,000 and

    $50,000, 13 percent more than $50,000 and for 4 percentof the respondents these data were missing. The distribution

    of highest educational level attained showed 24 percent hadcompleted high school, 68 percent had completed a college or

    university degree, and 8 percent had attained a master or

    doctoral degree.Response bias was also examined using the method

    proposed by Armstrong and Overton (1977). One viablecheck for non-response bias is to split the sample into early

    (n 126) and late respondents (n 76). Both comparisonsshowed that the subjects demographic profiles were similar,and that ratings on various measures included in the study

    were statistically similar. Thus, we are reasonably assured thatthe data set used in this study is not biased.

    Measures

    All constructs were measured via five-point Likert scalesmainly because this type of scale has been shown to be robust

    even in non-US cultural settings (Flaskerud, 1988). The six

    constructs measured were the following: knowledge [with four

    items adapted from Bang et al. (2000) and Tanner and Kast

    (2003)]; belief [with three items adapted from Bang et al.

    (2000) and Mainieri et al. (1997)]; confidence [with three

    items adapted from Tanner and Kast (2003)]; environmental

    awareness [with three items adapted from Grob (1995)];

    subjective norm [with four items adapted from Tanner and

    Kast (2003) and Thgersen and Olander (2006)]; and

    attitude [with four items adapted from Tanner and Kast

    (2003)].To measure consumer attitude toward energy-saving

    products, measurement scales for eagerness and behavioral

    intention were developed based on the guidelines suggested

    by Churchill (1979). We first conducted in-depth discussions

    with 27 shoppers to generate the initial pool of scale items

    (these individuals were different from those who participated

    in the main study). Two academic researchers then evaluated

    this pool of items for face validity. Based on their feedback,

    several items were deleted or modified. We then conducted a

    focus group study with 14 shoppers. Inputs from these

    respondents were used to further refine and modify the final

    items. Based on these procedures, we ended up with a three-

    item scale for eagerness and a two-item measure for

    behavioral intentions.

    Results

    Confirmatory factor analysis

    As shown in Table I, the CFA measurement model provided a

    good fit to the data. While the chi-square statistic was

    significant (p , 0.01), it is known to be highly sensitive tosample sizes (Joreskog, 1993), so various alternative fit

    statistics were computed [e.g. the comparative fit index (CFI);

    the non-normed fit index (NNFI); and the root mean square

    error of approximation (RMSEA)]. Values in the mid- to

    high- 0.90 range indicate good fit for the CFI and NNFI, and

    values of 0.80 and less indicate good fit for the RMSEA (Hu

    and Bentler, 1999). The CFI estimate was 0.987. The

    RMSEA estimate was 0.057, indicating that the fit is good

    because the RMSEA is the least affected by sample size

    (Sharma et al., 2005). Similarly, the NNFI estimate was 0.965

    which further supports the adequacy of the measurement

    model.Composite reliability was calculated using the procedures

    outlined by Fornell and Larcker (1981). We examined the

    parameter estimates and assessed the average variance

    extracted for each construct (Anderson and Gerbing, 1988;

    Bagozzi and Yi, 1988). The composite reliabilities for the

    eight constructs ranged from 0.82 to 0.89. The average

    variance extracted ranged from 0.54 to 0.76. The factor

    loadings ranged from 0.610 to 0.862 ( p , 0.01). In aconfirmatory factor analysis, each measure also loaded

    significantly on the expected constructs, which demonstrates

    convergent validity.On the basis of the validation sample, we assessed

    discriminant validity with Fornell and Larckers (1981)

    criterion. Table II shows that the smallest AVE exceeds the

    squared correlation between each pair of the relationship

    value dimensions. This indicates a satisfactory level of

    discriminant validity.

    Predicting consumer intentions to purchase energy-efficient products

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    Journal of Consumer Marketing

    Volume 29 Number 7 2012 461469

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  • Table I Loadings of all measurement items using CFA

    Variables CR AVE Loadings

    Knowledge 0.85 0.59

    How familiar are you with energy-efficient products? 0.618

    How knowledgeable are you about energy-efficient products? 0.736

    Energy-efficient appliance is more appropriate for the environment than conventional cost-saving

    appliance

    0.771

    Energy-efficient appliance is produced by the environmentally friendly process. 0.693

    Belief 0.87 0.70

    I believe that being environmentally conscious when buying does not directly benefit the environment 0.816

    How important is the environment when considering energy-efficient products 0.772

    How important is reliability when considering energy-efficient products 0.630

    Confidence 0.88 0.71

    I believe in the quality guarantee of energy-efficient products 0.734

    I trust my own judgment when deciding which appliances to consider 0.783

    I am very confident about which appliances are worth considering for the environment 0.739

    Environmental awareness 0.84 0.65

    The main cause of the climate change is a lack of environmental risk perceptions 0.718

    Current environmental situations are very serious for our future 0.675

    Without innovation, conventional production is a serious environmental problem 0.716

    Subjective norm 0.82 0.54

    Everyone has a responsibility to contribute to environmental preservation by purchasing energy-

    saving products

    0.781

    I feel morally obligated to refrain from buying the conventional cost-saving products 0.828

    I get a bad conscience if I choose conventional instead of energy-saving products 0.624

    I accept and carry out the environmental activity even though it is different from me 0.610

    Eagerness 0.89 0.73

    I like helping the current climate change 0.680

    I like engaging in the environmental campaign 0.791

    I can be very enthusiastic if my action helps the planet 0.862

    Attitude 0.88 0.65

    It is not important to me whether the product is energy-saving or not 0.776

    Environmental protection is important to me when making purchases 0.740

    If I can choose between energy-saving and conventional products, I prefer energy-saving one 0.660

    I have a favorable attitude toward purchasing an energy-saving product 0.727

    Behavioral intention 0.89 0.76

    The probability that I will buy the energy-saving product is very high 0.770

    I will buy an energy-efficient product in a more effective way 0.816

    x2 5 517.328; DF 5 271

    CFI 5 0.987; NNFI 5 0.965; RMSEA 5 0.057

    Note: CR=Composite Reliability

    Table II Discriminant validity

    Mean SD 1 2 3 4 5 6 7 8 a

    1. Knowledge 3.11 0.86 0.59 0.772. Belief 2.88 0.96 0.41 0.70 0.783. Confidence 3.25 0.66 0.42 0.49 0.71 0.794. Environmental awareness 3.48 0.87 0.38 0.45 0.46 0.65 0.745. Subjective norm 3.39 1.01 0.31 0.37 0.38 0.35 0.54 0.736. Eagerness 3.36 0.93 0.43 0.51 0.51 0.47 0.39 0.73 0.827. Attitude 3.22 0.91 0.38 0.45 0.46 0.42 0.35 0.47 0.65 0.818. Behavioral intention 2.66 1.12 0.44 0.53 0.53 0.49 0.41 0.55 0.49 0.76 0.77

    Notes: Italic numbers on the diagonal show the AVE. a is Cronbachs Alpha

    Predicting consumer intentions to purchase energy-efficient products

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    Volume 29 Number 7 2012 461469

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  • Structural equation model results

    The structural model revealed a x2 of 678.231(df 288; p , 0:01; x2=df 2:355), CFI of 0.921, TLI of0.903, and RMSEA of 0.065. All relationships proposed by

    the model were significant, except for the path from subjective

    norm to eagerness of environmental engagement. Overall fit

    was excellent. The squared multiple correlations for the

    structural equations were as follows: belief about energy-

    efficient product, 0.25; attitude toward the product, 0.72;

    subjective norm, 0.16; eagerness of environmental

    engagement, 0.23; and behavioral intention, 0.43. Thus, a

    substantial proportion of variance in each of these constructs

    is explained.H1, predicting a positive relationship between consumer

    knowledge and beliefs, was statistically significant

    (b 0:49; p , 0:001). The proposed relationship (H2)between beliefs and attitude toward energy-efficient

    products was also significant in the current data

    (b 0:72; p , 0:001).H3, predicting a positive relationship between consumer

    confidence and attitude toward energy-efficient products, was

    also supported (b 0:32; p , 0:001). H4, predicting a keyrelationship between attitude and intention, was strongly

    positive (b 0:46) and significant at p , 0.001.The proposed relationship (H5) between environmental

    awareness and subjective norm was supported

    (b 0:40; p , 0:001), but interestingly, the proposedrelationship (H6) between subjective norm and eagerness

    was not statistically significant. Further, the proposed

    relationship (H7) between eagerness and behavioral

    intention was also supported (b 0:27; p , 0:01). Finally,H8, predicting one of key relationships of TRA between

    subjective norm and behavioral intention, was positive

    (b 0:25) and significant at p , 0.01.In general, the results of the proposed model are consistent

    with those of prior TRA studies. However, we find a non-

    significant relationship between subjective norm and

    eagerness of environmental engagement. In other words, our

    study failed to find evidence of whether subjective norm

    enhances a consumers eagerness of environmental

    engagement.

    Discussion and managerial implications

    This study draws on the TRA framework to understand

    consumers decisions related to purchasing energy efficient

    products. This study is relevant in todays environment as the

    recent spike in global energy prices and growing concerns for

    the natural environment (Jansson et al., 2010) has led

    consumers toward seeking out energy-efficient green

    products. A sample of respondents in South Korea is

    utilized to empirically evaluate a proposed model that looks

    at the effect of attitudes and subjective norm components on

    behavioral intention in this context. Belief about energy-

    efficient product being considered and confidence of

    consequence are tested as predictors of attitude toward the

    energy-efficient product. Similarly, environmental awareness

    is used as a predictor of subjective norm. In addition, the

    model also looks at how eagerness of environmental

    engagement affects behavioral intention. Overall, the

    proposed model successfully accounts for 43 percent of the

    variance explained in predicting intention to engage in the

    behavior of purchasing the energy-efficient product.A notable finding of the research is that even though both

    attitude and subjective norm had significant effects on

    behavioral intention as the TRA would suggest, the effect of

    attitude on behavioral intention is much stronger

    (b 0:46; p , 0:001) than the effect of subjective norm onbehavioral intention (b 0:25; p , 0:01). The implication ofthis finding in this context is that companies marketing

    energy-efficient products need to make sure that potential

    consumers have strong favorable attitudes toward their brand

    of such products. Since attitudes are formed from beliefs and

    knowledge, such companies need to utilize informational

    advertisements that clearly illustrate the energy-saving

    consequences of their particular brands of such products.

    Lack of clear, detailed information related to

    environmentally-friendly products has often been cited as a

    challenge faced by consumers (Pickett-Baker and Ozaki,

    2008). One way of accomplishing this (in the context of an

    appliance) would be to use a factual, comparative approach

    where the featured energy-saving appliance would be

    illustrated as saving a considerable percentage of energy

    over a regular appliance (non energy-efficient appliance).

    Figures related to the monetary amount of energy savings per

    year can similarly be added to such advertisements in order to

    make a compelling argument. Our research shows that even

    though general environmental awareness and normative

    influences will positively affect behavior, promotions

    focusing on informational appeals must be used to

    effectively influence potential consumers in this context.The relationship between subjective norm and eagerness of

    environmental engagement has previously been established

    (Fitzmaurice, 2005), but the current study did not find this

    link to be significant. However, the results do indicate that a

    higher level of eagerness of environmental engagement has a

    positive and significant effect on behavioral intention

    (b 0:27; p , 0:01). The implication of these findings isthat someones intention to engage in the purchase of an

    energy-efficient product may be shaped by how much he/she

    feels that his/her behavior is empowering in terms of affecting

    the environment in a positive way. Thus even though factual

    and informational promotions featuring the focal brand would

    be effective in affecting behavioral intentions in this context

    (as pointed out previously), at the same time, strategies

    focusing on general information about the necessity of

    protecting the environment and saving resources would also

    play a role in affecting intentions.

    Limitations and future research

    Several limitations exist in terms of the generalizability and

    interpretation of the results of the study. First, this study did

    not find the relationship between subjective norm and

    eagerness to be significant, which is contrary to previous

    research findings. Future research may need to look further

    into this relationship. Second, future research needs to

    examine our model in the industrial purchasing context (in

    place of final consumers). This would be pertinent as

    industrial purchasers are typically responsible for high levels

    of energy use (compared to final consumers). Third, it would

    be important to test the robustness of this model by

    replicating it in other contexts outside of South Korea.

    Predicting consumer intentions to purchase energy-efficient products

    H.-Y. Ha and S. Janda

    Journal of Consumer Marketing

    Volume 29 Number 7 2012 461469

    466

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    About the authors

    Dr Hong-Youl Ha is an Assistant Professor of Marketing at

    the Kangwon National University in Korea. He obtained his

    PhD from Swinburne University of Technology in Australia

    and his articles have been previously published in the

    European Journal of Marketing, International MarketingReview, Service Industries Journal, Journal of ServicesMarketing, among others.Dr Swinder Janda is a Professor of Marketing and The Paul

    Edgerley Endowed Chair in Global Business at Kansas State

    University, Manhattan, Kansas, USA. He has published

    numerous times in journals such as Psychology & Marketing,European Journal of Marketing, International Journal of ServiceIndustry Management, International Marketing Review, Journal

    of Brand Management, and Journal of Consumer Marketing,among others. Swinder Janda is the corresponding author and

    can be contacted at: [email protected]

    Executive summary and implications formanagers and executives

    This summary has been provided to allow managers and executivesa rapid appreciation of the content of this article. Those with aparticular interest in the topic covered may then read the article intoto to take advantage of the more comprehensive description of theresearch undertaken and its results to get the full benefits of the

    material present.

    Growing concern about climate change has attracted

    increased attention from media and consumers alike. One

    effect is greater consumer interest in products rating high in

    energy efficiency. Evidence suggests that such individuals are

    likely to seek out these products from companies which share

    their apprehension about ecological issues. For their part,

    businesses have recognized that a focus on the environment

    and sustainability can help secure a competitive edge.However, different studies have confirmed that

    environmental-consciousness is not necessarily reflected in

    purchase behavior. A reason commonly cited for the apparent

    consumer reluctance to buy green products is the higher price

    typically attached to them. This unwillingness is further

    reflected by the difficulties experienced by firms when

    Predicting consumer intentions to purchase energy-efficient products

    H.-Y. Ha and S. Janda

    Journal of Consumer Marketing

    Volume 29 Number 7 2012 461469

    468

  • marketing products which exploit sources of renewable

    energy.Certain theorists posit that attitude towards a certain

    behavior impacts both on behavioral intention and on actual

    behavior. This theory of reasoned action (TRA) is considered

    potentially useful in predicting consumer behavior regarding

    energy-saving products. At its core is the notion that attitude

    towards a behavior impacts on intention to engage in the

    behavior and that intention in turn determines actual

    behavior.It is argued that behavior regarding energy saving could be

    predicted using this outlook. Existing beliefs about the

    positive impact of buying an energy efficient product might

    persuade green consumers to select that option instead of an

    alternative which appeals because of its lower price.These beliefs can increase when energy-saving products are

    marketed as being innovative as well as energy-efficient, some

    sources claim. Consumer familiarity with a product and,

    particularly, their objective knowledge obtained through such

    as factual information also influence attitude in this context.

    One assumption of this is that people are more inclined to

    hold favorable attitudes towards the use of energy-saving

    products when they retain similarly positive beliefs about their

    impact.Individuals who possess knowledge about a product are

    confident in their judgment of its capabilities. Increased

    confidence also tends to heighten the impact of attitude on

    intention and behavior. Where energy-saving is concerned,

    evidence indicates that consumers become likelier to engage

    in certain behaviors when they are confident that the effect on

    the environment will be positive.Another assumption of TRA is that correlation exists

    between levels of environmental consciousness and the

    propensity to engage in green behaviors. Concerned

    individuals will feel morally compelled to act in such ways.

    One assumption is that conducting activates in an

    environmentally-responsible manner is a subjective norm

    among these consumers. Some analysts point out that the

    presence of eagerness and internal motivation further

    heighten the propensity to engage in such behaviors,

    especially when those involved perceive that doing so will

    benefit the environment.Ha and Yanda explore these issues in a study of consumers

    in the South Korean capital, Seoul. Subjects were approached

    outside leading appliance and electronics stores and those

    who had recently purchased energy-saving products were

    selected. The final total of 202 usable responses consisted of

    72 from males and 130 from females between 26 and 57

    years-old. The number of women in the sample was higher

    than represented in the general population but reflected the

    tendency in South Korea for females to be likelier than men to

    shop for the family. Survey questions measured knowledge,

    belief, confidence, environmental awareness, subjective norm

    and attitude towards energy-saving products.Analysis of the data revealed that:

    1 consumer knowledge positively influences belief aboutenergy-saving products;

    2 those with strong beliefs about engaging in activitiesinvolving energy-efficient products have a more positiveattitude towards such products;

    3 attitude towards energy-saving products is positivelyinfluence by consumer confidence;

    4 a positive relationship exists between attitudes towardsenergy-efficient products and behavioral intention;

    5 environmental awareness is positively associated withsubjective norms;

    6 behavioral intention is positively influenced by eagerness;and

    7 subject norms positively impact on behavioral intentions.

    Contrary to expectation, no statistically significantrelationship was found between subjective norm andeagerness towards participating in pro-environmentalbehaviors. Previous studies had indicated otherwise.Eagerness did show a strong positive effect on behavioralintention, though. The authors believe that consumerintention to use energy-efficient products could increasewhen they feel their actions will have a favorable impact onthe environment. As a means to influence intention, theysuggest that marketers should focus on providing generalinformation to remind consumers of the importance ofenvironmental protection and resource conservation.Results showed a considerable impact on behavioral

    intention from both attitude and subjective norm. That theeffect of attitude was found to be considerably stronger is seenas especially significant. Firms are advised to note this andtake measures to ensure that consumers have a favorableattitude towards their energy-saving products. Since beliefsand knowledge influence attitude, Ha and Yanda point out theimportance of providing consumers with relevantinformation. A recommend strategy is to incorporate intoadvertisements details of the energy-saving effects of using thecompanys products and brands. Providing detailed factualinformation so that potential buyers can compare energyconsumption between energy-saving and regular appliancescan prove persuasive. Marketers could even include figures toemphasize the amount of monetary savings to furtherstrengthen their case. Certain studies have indicated theeffectiveness of informational appeals in this context. In othercases, consumer reluctance to embrace ecologically-friendlyproducts has been attributed to detailed information beingabsent.Further exploration of the relationship between subjective

    norm and eagerness is urged. Researchers could also replicatethe study using industrial consumers since energy usage levelsare much higher in that environment. Examining the use ofenergy-saving products within other nations and cultures canalso help test the robustness of these findings.

    (A precis of the article Predicting consumer intentions to purchaseenergy-efficient products.)

    Predicting consumer intentions to purchase energy-efficient products

    H.-Y. Ha and S. Janda

    Journal of Consumer Marketing

    Volume 29 Number 7 2012 461469

    469

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