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MSc Executive Programme in Management Studies
Strategy Track
Master Thesis
Consumer Buying Behaviors for Eco-labelled
Processed Foods
by
Yavuz, Nesrin
10989986
February 2017
2015- 2017
Supervisor
DR. Jeroen Kraaijenbrink
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Statement of Originality
This document is written by Student NESRIN YAVUZ who declares to take full responsibility for the contents of this document. I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it. The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
3 TABLE OF CONTENTS
Consumer Buying Behaviors for Eco-labelled Processed Foods ... 1
TABLE OF CONTENTS ... 3
ABSTRACT ... 5
1. INTRODUCTION ... 6
1.1. Background of the study ... 6
1.2. Research questions ... 8
1.3. Purpose of study ... 8
1.4. Structure of the study ... 9
2. LITERATURE REVIEW ... 9
2.1. Eco-labels ... 10
2.1.1. What is Eco-label? ... 10
2.1.2. History of Eco-Labels ... 10
2.1.3. Role of Eco-labels in Green Consumerism ... 11
2.2. Behavioral Theories to Explain Consumers` Green Consumption Behavior ... 12
2.2.1. Attitude Toward Behavior Model ... 12
2.2.2. Theory of Planned Behavior ... 13
2.2.3. Signaling Theory and Green Consumerism : the Role of Eco-labels ... 15
2.3. Literature Review, Variables and Hypotheses ... 16
2.3.1. Consumers` Trust and Green Consumption Behavior ... 17
2.3.2. Consumers` Price Orientation and Green Consumption Behavior ... 20
2.3.3. Consumers` Quality Orientation and Green Consumption Behavior ... 22
2.3.4. Consumers` Demographic Profile and Green Consumption Behavior ... 24
2.3.5. Consumers` Intention Toward Green Consumption Behavior ... 27
2.3.6. Consumers` Actual Buying Act Toward Eco-Labelled Food Products ... 28
2.4. Conceptual Framework... 29
3. DATA AND METHOD ... 30
3.1.1. Overall Research Design ... 30
3.1.2. Sampling ... 31
3.1.3. Target Population ... 32
3.1.4. Sample Size ... 32
3.1.5. Data Collection Methods ... 32
3.1.6. Designing the Questionnaire ... 32
3.1.7. Measurement ... 33
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4. RESULTS ... 37
4.1. Pre-Analysis Phase ... 37
4.2. Descriptive Analysis ... 38
4.3. Demographic Analysis ... 39
4.4. The Model Analysis ... 43
4.4.1. Pearson Correlation ... 43
4.4.2. Conditional Process Analysis via PROCESS of Andrew Hayes and Hypotheses` Results ... 44
5. CONCLUSION ... 50
REFERENCES ... 54
APPENDIX A (1) ... 60
APPENDIX A (2) ... 65
5 ABSTRACT
The purpose of this thesis is to examine the relationship amongst the level of consumers` trust in eco-labels, their intention to buy and their actual buying acts toward eco-labelled food products. In addition to that, this thesis aims to understand the effect of consumers` price and quality orientation on the relationship between their intention to buy and their actual buying acts. The nature of the research design is explanatory, in which we study food consumers` buying behaviors toward eco-labelled food products by explaining the relationship between the variables through the collected quantitative data. A survey research strategy is conducted through the use of a self-administered questionnaire with close end question format which was taken by 188 respondents. The research approach is deductive where the focus is testing conceptual framework which was structured by the inspiration of Signaling Theory and the Theory of Planned Behavior together with other studies that were conducted in green consumerism. Analysis results show that high trust in eco-labels leads to intention to buy, however it does not end up with actual buying acts. Secondly, intention to buy did not result in actual buying act. Furthermore, the effect of intention to buy on actual buying act is not contingent on price or quality orientation of consumers. Additionally, individual price orientation or quality orientation does not mediate the relationship between trust and actual buying act through intention to buy. However, the conditional indirect effect of trust on actual buying act at low level of price orientation and high level of quality orientation is mediated by intention to buy eco-labelled food products. The results of the study emphasize the importance of the effect of price and quality on shopping preferences of consumers next to the importance of trust factor in eco-labels. Building trust in eco-labels may create a positive attitude towards eco-labels (intention to buy), however facilitating an actual buying act at consumers’ side entails price competitiveness and high quality claims on eco-labelled food products.
Key words: Trust, eco-labelled food products, green consumerism, actual buying act, intention to
6 1. INTRODUCTION
1.1. Background of the study
Since the Industrial Revolution, environmental decline has been observed by humanity, but it first became an essential focus in business agenda with the publication of Racheal Carson`s Silent Spring in 1962 (Kilbourne & Beckmann, 1998). This book addressed the consequences of economic activities as a major reason of environmental issues next to human cultural activities (Kilbourne & Beckmann, 1998). In the 1970s, ecological green marketing emerged in developed countries. Back then, green marketing was about reducing the dependency to the special product groups that are responsible for environmental pollution. In 1980s, attention was shifted more towards the interaction between economy and environment which led to the evolution of sustainable eco-technology. By 1990s ‘green’ products become trendier and moved towards mainstream and began influencing the practices of ‘green’ product manufacturers. (Sarkar, 2012). As of the 21st century, ‘green consumer behavior’ has become to be recognized not only by producers as a commercial opportunity for an expanding range of business, but also by researchers and policy makers who try to land consumption behavior towards ‘green’ and ‘eco-friendly’ products (Peattie, 2010).
The importance of considering consumption and production as a holistic system in which both the actions of, and interactions between, consumers and producers determine environmental impacts was addressed by Lebel & Lorek in 2008. They propose to develop more sustainable production and consumption systems which include responsible purchasing, certification and labeling, resources - efficient strategies based on product service substitutions and co-design strategies. One of the tools that plays a critical role to facilitate this change is eco-labelling. Eco-label helps closing the asymmetrical information gap between consumers and producers on the environmental attributes of products (De Boer, 2003; Rex and Baumann, 2007) and also act as a reminder for consumers to take environmental issues into account (Bratt et al., 2011; Thøgersen et al., 2010). It is defined as a label which identifies overall preferences of a product within a product or service category based on life
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cycle consideration which stands for all aspects of the “life” of a product, from design, production, operation and maintenance up to disposal (Global Eco-labelling Network, 2014).
Consumers` willingness to buy eco-labelled products and their actual buying acts can be considered as a success of ‘green marketing’, ‘green products’ or ‘eco-labelling’. In the majority of earlier studies, positive attitudes for and interests in eco-labelled products have been observed (Wandel and Bugge, 1997; Magnusson et al., 2001, Tarkiainen et al., 2005). Healthiness (von
Alvensleben, 1998; Ekelund, 1989; Huang, 1996; Schiffersten and Oude Ophuis, 1998; Tregear et al., 1994; Wandel and Bugge, 1997; Magnusson et al., 2002) and good taste (Land, 1998; Wandel and Bugge, 1997; Magnusson et al., 2002) of products are shown as major motivations toward the
intention to buy eco-labelled products. However, as mentioned by Roddy et al. (1996) the proportion of consumers who purchase eco-labelled food regularly is reported to be low which indicating that positive attitudes towards eco-labelled products, or consumers` ‘intention’ to buy do not necessarily lead to actual buying activities. (Tarkiainen et al., 2005).
With this study, first of all we try to contribute literature by investigating the role of consumers` trust on consumers` attitude (intention to buy) and behavior (actual buying acts) which have not been widely studied before as it was done for understanding the role of healthiness and good taste on consumers` buying intention and behavior. Previously, the role of trust has not been explicitly investigated on consumers` intention to buy and their actual buying acts together. In this study, different than the others, we aim to test the effect of trust on both consumers` buying intention and their actual buying acts. Secondly, we zoom into the relationship between intention to buy and actual buying acts of consumers and try to answer that attitude-behavior gap through consumers` price and quality orientation. Previous studies show contradictory results for the impact of price and quality orientation of consumers on their intention to buy and actual buying acts of eco-labelled food products. First of all, according to some results, eco-labelled products` price premium negatively impact the relationship of consumers` intention to buy eco-labelled products and their actual buying
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acts. The higher the price sensitivity of consumers, the lower the possibility of purchasing green products. On the other hand, for the consumers who do not have high price consciousness prefer not to spend money on eco-labelled products unless they have a positive attitude towards environment and they believe their action will influence the world in a positive way. Secondly, high quality oriented consumers who perceive eco-labelled products as high quality, prefer buying eco-labelled products. However not all consumer link eco-labelled products and high quality. Previous studies generally investigated the impact consumers` price and quality orientation on the relationship of consumers` intention to buy and their actual buying act separately. Above mentioned contradictory findings address the need for further investigation in this area. By this study, we do not only aim to complement previous studies but also investigate the impact of consumers` price and quality orientation on intention-behavior relationship together.
1.2. Research questions
This thesis aims to answer following research questions:
What is the effect of consumers` trust in eco-labels on consumer`s intention to buy and their actual buying acts of eco-labelled food products?
Does intention to buy explain the relationship between consumers` trust in eco-labelled food products and their actual buying acts?
How do consumers` price and quality orientation influence the relationship between intention to buy and their actual buying acts?
1.3. Purpose of study
In this study, we aim to bring a perspective into food consumers` attitudes toward green consumption behaviors through the lens of consumers` trust in eco-labels, their price and quality sensitiveness in their shopping routines by applying different attitude – behavior models. This study will be a complementary work to previous ones that have been done in understanding attitude –
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behavior gap towards eco-labelled food products and it will bring some further insides to ‘green’ manufacturers, marketers and policy makers.
1.4. Structure of the study
This study consists of six sections. The literature review section gives some insights with regards to the previous studies conducted in the same area together with relevant theories. It ends with conceptual framework of the study together with explanation of variables and the developed hypothesis. The data and method section explains the overall research design together with research strategy, measurement scale, reliability and the validity of the data set. The results section provides statistical analysis results including descriptive, demographic, correlation and model analysis. This section also provides the testing results of the hypothesis. The discussion section exposes the significance of findings in a context where findings are benchmarked with the results of previous studies. Finally, the conclusion part states research question, explains approach, shares arguments, results and discussions in summary together with the limitations and suggestions to future studies.
2. LITERATURE REVIEW
This study tries to understand the green consumption intention and act of food consumers through the lens of consumers` trust on eco-labelled products, their price and quality orientation. First of all, before diving into green consumerism, the definition of eco-labels and their role in green consumption are provided. Secondly, behavioral and signaling theories are reviewed to explain consumers` green consumption behavior. These theories helped us to draw the structure of conceptual framework. Finally, by reviewing the literature in green consumerism, variables of the framework and relevant hypotheses are identified and a final shape is given to the conceptual framework.
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2.1. Eco-labels
2.1.1. What is Eco-label?
An ecolabel is basically a label which identifies the overall environmental preference of a product or service based on life-cycle considerations. This environmental preference is guaranteed by the fact that the ecolabel is granted by an independent third party, not influenced by the company who seeks certification. Therefore, an ecolabel is a tool that helps buyers juggle among a number of products and services, often accompanied by unverified claims about their supposed ecological advantages, and recognize those that actually offer a better environmental performance. (Global Eco-labelling Network (GEN), 2004).
2.1.2. History of Eco-Labels
Since the 1980s, many countries have been sponsoring different eco-labelling programmes. In Germany, the ‘Blue Angel ’eco-label has been used on over 4,000 products in 58 categories by 1993, upon its first introduction in 1978. The main drive of the ‘Blue Angel’ logo is the growing consumer demand in Germany towards ‘environmentally friendly products’ (Sarkar, 2012). It has also been observed that eco-labels trigger the sales. For instance, Hoover, being the first manufacturer to be awarded an EU eco-label, has trebled its sales in Germany and doubled its sales in UK for the washing machine market (EU Cross-border Monitor, 1995).
Ecological awareness is more developed in countries further to the north of Europe such as Germany, Holland and Norway (Simon, 1992). Whereas, the countries bordering on the Mediterranean, environmental issues are not perceived as important as in north of Europe (Atkinson & Rosenthal, 2014).
In Canada, an environmental choice guideline has been offered for different range of products, from paints to reusable cloth diapers (Codington, 1993). In U.S. eco-labels have emerged as a result of the United Nations Conference in 1992 on Environment and Development, which promoted the importance of sustainable development. One of the first labels was Energy Star, developed by the
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Environmental Protection Agency (EPA), then followed by many others and today there are more than 300 eco-labels existing in the U.S. market (Atkinson & Rosenthal, 2014).
Other than economically developed countries like the US, Canada or western Europe, undeveloped or developing countries like Mexico are more concerned with economic priorities rather than societal or environmental concerns. On the other hand, we see some exceptions amongst developing countries. For instance Colombia is developing an eco-labelling program to promote environmental conservation in several sectors to address a variety of topics such as polluting emissions and energy and resource use. The same program also helps Colombia to penetrate foreign markets, especially those such as the EU, with considerable ‘green consumerism’ interest (Gaviria, 1995).
2.1.3. Role of Eco-labels in Green Consumerism
As reported by the Massachusetts Department of Environmental Protection in 2002, consumers face some barriers such as information asymmetry to develop green consumption behavior. Therefore the effort in recognizing and locating green products does not always result in actual purchasing decisions.
Eco-labelling is shown as a solution to such market failure caused by information asymmetry (Chekima et al, 2016). Eco-labelling has been a guide for consumers in product selection (Proto et al., 2007) by translating the credence attributes of green products into a trustworthy information basis which enables consumers to make informed choices in their purchasing (Yau, 2012; Proto et al., 2007). It tends to increase transparency and consumer confidence in respect to environmental and social issues (Thøgersen, 2002) and it can be considered to make companies' green initiatives (products/serviced) legitimate. An eco-label acts at the point of sale to inform consumers with regards of the environmental impact of the product throughout its lifecycle (Erskine and Collins, 1997).
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2.2. Behavioral Theories to Explain Consumers` Green Consumption Behavior
Consumer behavior is a study of how consumer spends their resources to search, buy, use and dispose of the needed products (Schiffman et al., 2008). Understanding consumer behavior is key for companies to decide what to produce (Schiffman et al., 2008). The comprehensive definition from one author is “Consumer behavior reflects the totality of consumers’ decisions with respect to the
acquisition, consumption, and disposition of goods, services, activities and ideas by human decision-making units over time” (Hoyer et al,. 2007, p. 3). Marketers are extremely interested in consumer behavior (Hoyer et al., 2007) because knowledge of consumer behavior brings competitive advantage
to organizations. By using this knowledge organizations can increase their profitability (Hawkins et al,. 2007).
2.2.1. Attitude Toward Behavior Model
Having a positive attitude toward a product does not necessarily lead to have a positive attitude to buy that particular product (Schiffman et al., 2008). “The attitude towards behavior model is the
individual’s attitude towards behaving or acting with respect to an object rather than the attitude towards the object itself.” (Schiffman et al., 2008 p. 253). Following is a theory of reasoned action that “represents a comprehensive integration of attitude components into a structure that is designed to lead
to both better explanation and better prediction of behavior” (Schiffman et al., 2008, p. 254). According
to that theory, subjective norms and attitude toward the behavior influence individual`s intention and intention lead to behavior.
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Figure 1: The Theory of Reasoned Action (Source: Schiffman et al., 2008, p. 255)
2.2.2. Theory of Planned Behavior
Theory of planned behavior provides a framework to study attitudes toward behaviors. According
to the theory, the most important determinant of a behavior is an individual`s intention to perform a behavior which is a combination of attitude toward performing the behavior and subjective norms. The individual`s attitude toward the behavior includes; Behavioral belief, evaluations of behavioral outcome, subjective norm, normative beliefs, and the motivation to comply (Ajzen, 1991). This theory is used by many authors to study the buying intention of the consumer. (Tarkiainen et al., 2005; Phuah Kit Teng et al., 2011; Chen 2007; Magnusson et al., 2002; Suprapto et al., 2012; Vermeir et al., 2007; Zeinab S. Saleki et al., 2012). Also this theory has been applied to a study of buying behavior of environmentally friendly products (Kalafatis et al., 1999).
Attitude towards behavior
Subjective norms Beliefs that the
behavior leads to certain outcome
Evaluation of the outcome
Beliefs that specific referents think I should or I should not
perform the behavior Motivation to comply with specific referents
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Figure 2: Theory of Planned Behavior (Source : Ajzen 1991)
Attitude toward Behavior
Attitude is an individual`s positive or negative belief about performing a specific behavior. When individual evaluates a behavior positively, he/she will intend to perform it. Ajzen (1991) defines attitude towards behavior as the degree to which a person has favorable or unfavorable
evaluation of the behavior in question”. According to Ajzen (1991), beliefs about any product can be
developed by relating it with certain attributes. Their attributes are assessed positively or negatively. People tend to form favorable behavior based on the foreseen consequences.
Subjective Norms
An individual will intend to perform a certain behavior when she/he perceives that important others think he/she should. Important others are defined as friends, families, doctors, religious
Attitude toward the behavior Subjective norms Perceived behavioral control Intention Behavior
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organizations (Kalafatis et al., 1999). Ajzen (1991) defined subjective norms as “the perceived social
pressure to perform or not to perform the behavior”. They are internally controlled and do not operate
with external reinforcement (Kalafatis et al., 1999).
Perceived Behavioral Control
People are not likely to form a strong intention to perform a behavior if they believe that they do not have any resources or opportunities to do so, even if they have positive attitudes toward the behavior and believe that important others would approve of the behavior. According to Ajzen (1991) perceived behavioral control refers to the “perceived ease or difficulty of performing the behavior
and it is assumed to reflect the past experience as well as anticipated impediments and obstacles”.
Behavioral control also can affect from indirect information about the behavior like the experiences of friends and by the other factors that can increase or decrease the perceived difficulty of performing the behavior in question (Ajzen, 1991). There is a positive relationship between resources/opportunities and perceived control over behavior and the negative relationship between the person’s obstacles and perceived control over behavior (Ajzen, 1991).
2.2.3. Signaling Theory and Green Consumerism : the Role of Eco-labels
For more than a century, formal economic models of decision-making processes were based on the assumption of perfect information, where such information asymmetries are ignored (Stiglitz, 2002). However organizations and individuals have access to different information (Certo et al., 2011) which creates information asymmetries. Signaling theory is fundamentally concerned with reducing information asymmetry between two parties (Spence, 2002). Signaling theory’s primary elements in the form of a timeline are illustrated in Figure 3. Signaling timeline includes three primary actors: signaler, receiver and signal.
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Figure 3: Signaling Timeline (Source : Certo et al., 2011)
In Signaling theory, signals are used to diminish the information asymmetries between receiver and signaler. In green marketing, “certification seals or eco-labels can work to affirm the credibility
of an advertiser`s environmental claims” (Atkinson & Sonny Rosenthal, 2014). In this case, food
consumers are receivers, signaler is the producer company and signal is the credibility of the environmental claim through eco-labels. Environmentally friendly attributes of products are endorsed through the eco-labels which may offer consumers some degree of transparency and confidence in the credibility of the claims and help facilitating consumer trust (Hansen & Kull, 1994), however the degree of confidence and credibility at consumer side highly depend on the source and the content of the eco-label (Atkinson & Sonny Rosenthal, 2014)
2.3. Literature Review, Variables and Hypotheses
Since consumption has been addressed as the origin of environmental issues, consumers have been trying to adopt a life style and purchasing habits towards alternatives that are more respectful for environment (Purohit, 2012). Scholars have applied different behavioral theories to explain the green consumption behavior of consumers. According to the norm activation model (NAM; Schwartz, 1997) and Value belief norm theory (VBN theory; Stern, 2000), people act pro-environmentally when they feel a moral obligation to do as such and they are aware of the problems caused by their behavior and feel responsible for these problems and their solutions. According to these theories, one might expect that consumers who are seen as the reason of environmental decline
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due to increasing consumption patterns might develop a Private-Sphere Environmentalism behavior which refers to purchase, use, and disposal of personal and household products that have environmental impact (Stern, 2010).
However, the proportion of consumers that have gained a pro-environmental behavior which is leading to actual purchasing of eco-labelled or eco-friendly products regularly is reported to be low (Roddy et al., 1996). Literature addresses many reasons that explain the relationship between consumers` intention to buy eco-labelled products and their actual green consumption behaviors. Some reasons such as health consciousness, higher quality expectations, and environmental consciousness lead consumers to buy eco-labelled products, whereas some others such as higher price, low availability and lack of trust cause a gap between their attitude towards environment and their actual buying decisions.
2.3.1. Consumers` Trust and Green Consumption Behavior
One of the factors that influence the “attitude – behavior gap” is the lack of consumer trust in the content of marketing claims or eco-labels (Atkinson & Rosenthal, 2014). Low or lack of trust in the content of the marketing claims or suspects on an advertising message might be perceived as “green washing” and make consumers less likely to purchase the product or adopt a favorable attitude towards it (Kangun, Carlson, and Grove 1991). The study of Kangunn et al. (1991) shows that a significant number of consumers judge the environmental claims as vague. Their investigation indicated that more than half of the environmental advertisements examined during the study contained at least one misleading or deceptive claim. Researchers have addressed the potential for abuse in environmental advertisement and have emphasized the fact that consumers seemingly desire products that benefit the environment.
The credibility of source in the acceptance of a message is essential and persuasion depends on trust (Boush et al. 1993). Crane (2000) referred to the study of Wong et al. (1996, p.278) and mentioned that the reluctance of consumers to engage in green purchasing behavior originates from
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over-zealous promotional claims, inexact science and inconsistent legislation which discredit the practice of green marketing. The results of the study of Crane have a similar direction to the finding of Wong et al. (1996) and show that this perceived credibility problem in the areas of green product performance and green claims is the backlash of green marketing and, therefore, consumer trust should be built through pro-active green marketing strategies which focus on “facts” of green products rather than the “fallacies”.
Another study that addresses the importance of credibility and trust is the study of Leire and Thuidell (2005). Two factors are pointed as influencers of consumer trust. Firstly, reliability of information sources and secondly, understanding of the environmental relevance of their own actions. Leire and Thuidell (2005) mentioned that literature findings state that consumers generally perceive the main eco-labels as highly trustworthy, but are lacking knowledge about the source of the information and the environmental attributes of eco-labelled products, according to the literature findings. However their own study results showed that although Norwegian consumers are lacking environmental information for some specific products, available information has a potential to be further used for consumer guidance. They concluded that the current problem of Norwegian consumers is not insufficient information, but the level of acceptance of the available information such as trust and motivation to buy eco-labelled products.
Manrai et al. (1997) emphasized the importance of credibility of green claims and added that there is a negative correlation between the extremity of the claim and its effectiveness at consumers` buying behaviors. The stronger the positive message in the claims, the less trustworthy it is perceived by consumers.
Darby and Karni (1973) define green product claims as credence claims in which promised attributes in the claim cannot be verified by personal experience or an easy information search. Credence claims must be accepted at face value as truthful (Atkinson and Rosenthal, 2014). Validation of green claims on packs is not as easy as validation of price vs quality or taste expectations
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of consumers. For instance, the consumer has the opportunity to judge price vs quality and taste profile of a tuna can by simply having a tuna can buying experience. However, the same consumer cannot make a proper judgement on a green claim saying that the way the tuna is caught is safe to dolphins. Instead of experience, the consumer makes a choice by trusting the green claim (Nelson, 1970 and 1974; Bottega and De Freitas, 2009; Atkinson and Rosenthal, 2014). Atkinson and Rosenthal (2014) explained consumer behavior through signaling theory and touched upon the role of eco-labels as a signal to food consumers to bring some understanding and eventually build the credibility towards the product through the claim. Signaling theory refers to the information asymmetry between manufacturers (sellers) and consumers (buyers) in which manufacturers hold more and better information than the consumers. Due to that information asymmetry, consumers rely on cues or signals as a means of evaluating the quality of the product and make a call on purchase. Endorsement of signals in the form of an eco-label can offer consumers some degree of confidence in the credibility of claims and help building trust. However this confidence is influenced by the source of the eco-label and the content of the claim (Atkinson and Rosenthal, 2014).
According to previous studies consumers` trust has been shown to have a powerful impact on market place attitudes and behaviors, with a long tradition of scholarly work demonstrating that persuasion depends on trust (Boush et al. 1993; Hovland and Janis 1959; McGuire 1968). When consumers do not trust the content of the marketing claims or suspect an advertising message of deception or “green washing’, they are much less likely to purchase the product or adopt a favorable attitude toward it (Kangun, Carlson, and Grove 1991; Thøgersen 2002). As a complement to previous findings, in this study trust is an independent variable and we aim to understand the effect of trust in eco-labels on intention to buy and actual buying acts of food consumers. In line with the previous research findings two hypotheses are built :
H1 (Direct Effect)
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More specifically, the higher the consumer trust in the ecolabel, the higher the intention to buy eco-labelled products.
H2 (Direct Effect)
Trust (IV) in the ecolabel is positively related to the actual buying decisions of eco-labelled products (DV).
More specifically, we expect trust in the ecolabel to demonstrate a strong positive effect on consumers` actual buying decisions of eco-labelled products.
2.3.2. Consumers` Price Orientation and Green Consumption Behavior
Price is an important element of the market since it influences both manufacturers and consumers, who are the key players of the market. Price motivates manufacturers by providing revenue and profit, and influences consumers in their shopping preferences. Therefore, price level of green products is one of the key influencers of green consumerism and that is why investigating the impact/influence of consumers` price sensitivity/orientation is an interesting area for scholars to ascertain the relationship between consumers` green consumption intention and their actual purchasing activities.
Chekima et al. (2015) define that price is an indicator of quality by addressing the example in which an expensive shoe is being considered as made of a high quality material in the eye of consumers. Since a green certified product is less available, difficult to harvest or work with or may entail reengineering process, it is more likely to be more expensive, so high quality accordingly.
Gleim et al. (2013) also pointed out that green products generally tend to be more expensive over the conventional ones and this influences the purchase decision of consumers. A number of researchers have discovered that price becomes among the barriers even when consumers demonstrate attitude towards environment (Bonini and Oppenheim, 2008; Mainieri et al., 1997). A green gauge survey carried out by GFK in 2012 revealed that 93% of consumers who claimed to save energy in their home have become less willing to pay premium price for green products (Chekima et
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al., 2015). That shows that having an attitude towards environment does not necessarily lead to green consumption, if it comes with additional cost.
According to Neff (2012), even though more businesses go green, fewer consumers are willing to pay for green products. Main reasons behind the reluctance of consumers towards green products are premium price of them over conventional ones, reluctance to seek information and assess the long term benefits and in the case of lower quality of green product over conventional one (Zhao et al., 2014). Consumers who lack awareness regarding the environmental issues and responsibility for the environment are either more price sensitive or they perceive that the premium requested for a green product is far more expensive over conventional ones (Malhotra and Maheshwari, 2011).
In contrast to what has been mentioned, some other studies show that some consumers are willing to pay more with the premium price of 5 to 23 percent to acquire green products to reduce their environmental impact (Cherian and Jacob, 2012; Pirani and Secondi, 2011; Laroche et al., 2001). Mandese (1991) argue that the willingness to pay premium price for green products is related to how consumers see the added value of a green product on reducing environmental impact rather than consumers` price sensitivity itself. The more the added value of buying eco-labelled products is perceived in the long run, the more price sensitivity becomes a barrier for consumers in purchasing green products. Findings of the study of Chekima et al. (2016) show that premium price becomes a less important factor to express the consumers` intention to buy eco-labelled products, if consumers` have a positive attitude toward the environment, ecolabel as well as cultural values of man-nature. The respondents of the survey takers event claimed that they are willing to pay the additional price up to 20-30 percent more for the eco-labelled products compared with the conventional ones.
In the study of O’Donovan et al. (2002), non-purchasers of organic food claimed the reasons as “too expensive” or “not available”, whereas purchasers believed that the organic meat is superior to conventional meat in terms of quality, safety, labelling, production methods and value.
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In summary, price premium of eco-labelled products has a negative impact on the actual buying act of consumers, even though consumers have a positive intention towards the eco-labelled product. The higher the price sensitivity of consumers, the lower the possibility of purchasing green products. For those who do not have high price consciousness prefer not to spend money on eco-labelled products unless they have a positive attitude towards environment and they believe their action will influence the world in a positive way. As mentioned above consumers` price orientation influence the relationship between intention to buy and actual buying acts of consumers. In this study, price orientation of consumers is a moderator and in line with previous findings, following hypothesis is built.
H3a (Conditional effect = Moderation)
The relationship between intention to buy eco-labelled products (DV) and actual buying decisions (DV) is negatively moderated by the price orientation (IV) of consumers. So that the higher the price orientation of consumers, the weaker the relationship between intention to buy eco-labelled products and their actual buying decision.
More specifically, we expect intention to buy eco-labelled products to demonstrate weaker positive effect on actual buying decisions with a high level of consumer price orientation.
2.3.3. Consumers` Quality Orientation and Green Consumption Behavior
Previous studies address different criterions of consumers that shape their shopping behavior. First of all, consumers consider taste as the most important food purchase criterion (Land, 1998; Wandel and Bugge, 1997; Magnusson et al., 2002), next to their health consciousness (von Alvensleben, 1998; Ekelund, 1989; Huang, 1996; Schiffersten and Oude Ophuis, 1998; Tregear et al., 1994; Wandel and Bugge, 1997; Magnusson et al., 2002) and high quality expectations (Magnusson et al., 2002). One may argue that eco-labels can be shown as one of the criterions that shape shopping preferences. However, it is important to ascertain the main drivers of consumers
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behind preferring eco-labelled products. Consumers link eco-labels with health, quality and/or environment, however that linkage is related to the perception of consumers.
In the study of Jolly (1991), eco-labelled food consumers are more concerned about preservatives, additives, residues, food irradiation, artificial coloring sugar and salt. These attributes are linked to the product’s quality and cause consumers to prefer eco-labelled products. However a quality oriented consumer may not prefer eco-labelled food products, if he/she does not relate eco-label with high quality. In a Norwegian study (Wandel and Bugge, 1997), the majority of consumers gave the first priority (for fruit and vegetables) to the quality properties, but they defined quality as good taste and freshness and only 15 per cent showed the eco-labels among the quality standards. Young consumers chose eco-labelled foods more on the consideration for the environment, whereas old consumers are more influenced by the consideration of their own health (Wandel and Bugge, 1997).
Study of von Alvensleben and Altmann (1987) found both young and older people are high at eco-labelled food consumption but they have different purchasing motivations. Young people have strong criticism towards the conventional food supply and older people have a strong health consciousness. The most important purchase criterions (taste, health, long shelf-life and quality aspects) and the most common beliefs about the eco-labelled foods (more expensive and healthier) do not match well. That might be the reason of why the proportion of regular purchasers is low. For consumption to increase , consumers should perceive that eco-labelled foods match the central purchase criteria or even surpass the quality of conventional food in these respects. An increase of the quality of organic foods and a smaller price difference between conventional and eco-labelled foods would seem to be needed in order to increase the proportion of regular eco-labelled food purchasers.
According to previous studies, consumers consider tasty, healthy and high quality products during their food consumption (Land, 1998; Wandel and Bugge, 1997; Magnusson et al., 2002; von Alvensleben, 1998; Ekelund, 1989; Huang, 1996; Schiffersten and Oude Ophuis, 1998; Tregear et
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al., 1994). Some consumers link eco-labels with high quality and if those consumers are quality oriented, then they prefer eco-labelled products in their shopping behavior. However, that linkage is related to the perception of the consumers. Not all consumers perceive the eco-labelled products in the some way and this may deviate different behavioral choices in the act of quality orientated consumers. Quality orientation in this study is measured as a moderator and in line with previous findings, following hypothesis is built.
H3b (Conditional effect = Moderation)
The relationship between intention to buy eco-labelled products (DV) and actual buying decisions is positively moderated by the quality orientation of consumers. So that the higher the quality orientation of consumers, the stronger the relationship between intention to buy eco-labelled products and actual buying decisions.
More specifically, we expect the intention to buy eco-labelled products to demonstrate stronger positive effect on actual buying decisions with a high level of consumer quality orientation.
2.3.4. Consumers` Demographic Profile and Green Consumption Behavior
Early studies have shown that demographic characteristics influence individual`s green buying behavior both in a positive and negative way (Chekima et al., 2016). Demographics are considered as one of the most influential factors to predict pro-environmental behavior (Berkowitz and Lutterman, 1968 ; Anderson and Cunningham, 1972). Age, gender, education level, occupation, income level and family size are among the demographics that have been found to have a significant relationship with environmental behavior (Sang and Bekhet, 2015; Zhao et al., 2014; Yuan and Zuo, 2013; Yau, 2012; Bekhet and Al-alak 2011).
Age and Green Consumption Behavior
Previous studies have shown the motivation behind green consumption behavior differ per different age groups. Young consumers choose eco-labelled food products based on the
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considerations for the environment, whereas old consumers appear to base their choice towards green products for their own health (Wandel and Bugge, 1997). A Californian consumer survey that was conducted in the study of Jolly (1991) suggests that eco-labelled food consumers tend to be younger than non-buyers. On the other hand, age cannot be considered in isolation to evaluate the green consumption behavior of consumers. According to study of Borgstedt et al. (2010), the buyer of environmentally friendly products is commonly someone aged 30 to 49 years with a high income of €2,000 to €2,900 per month. In contrast, younger people with lower income rarely purchase eco-labelled products.
In this study, to measure the relationship amongst trust in the eco-label, intention to buy and buying act of consumers, age is kept constant as a control variable for the analysis.
Education and Green Consumption Behavior
Majority of studies that tested the level of education have found that a higher education increases the awareness of sustainability issues (Yuan and Zuo, 2013) and leading to green consumption (Diamantopoulos et al., 2003; Schwartz and Miller, 1991). Similar results were observed in the study of Zsoka et al. (2013). Most of the respondents who were university students have high level of environmental knowledge and they feel the need for change in consumer behavior towards green consumption to overcome the environmental issues compared to those who were high school students. Although this study shows the reactions of people who have different level of education, results might be explained through the level of different age groups. Zhao et al. (2014) report that people with higher education level have a higher level of environmental knowledge, attitude towards environment and stronger intention to buy green products. This tendency can be explained by highly educated individuals to be better informed about the environmental issues, therefore have a strong desire to protect the environment (Torgler and Garcia-Valinas, 2007).
The study of Chekima et al. (2016) indicated that education is significantly influenced the effects between environmental attitude and green purchase intention and eco-label on intention to
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purchase green products. Respectively, people with higher education seem to be more willing to pay more for eco-labeled food products (Jolly, 1991; Wandel and Bugge, 1997). Another scholar who observed a positive effect of education on consumer preference for Fair Trade products is Lehnert (2009).
On the other hand, few studies observed that the education level of consumers did not relate to pro-environmental behavior (Wong, 2010; Straughan and Roberts, 1999; de Pelsmacker et al.).
In this study, to measure the relationship amongst trust in the eco-label, intention to buy and buying act of consumers, education is kept constant as a control variable for the analysis.
Gender and Green Consumption
The empirical results of the effect of gender on environmental behavior and green consumerism are contradictory. Several studies found that females are more likely to participate in pro-environmental behavior as well as having higher intention to buy green products (Kalamas et al., 2014; Matthes et al., 2014; Rezai et al., 2011; Zelezny et al., 2000; Davidson and Freudenburg, 1996). The finding of the study that was conducted by Zelezny et al. (2000) showed a significant difference between sexes towards environmental attitudes, where women are more concerned about environmental issues than men. Many studies have found out that women tend to consume more environmentally friendly compared to men.
Another finding of Lehnert (2009) shows a clear preference among women for ethically produced goods. On the other, numerous authors found that men have more knowledge about environmental issues than women and by knowing that men act towards environment in their shopping preferences (Diamantopoulos et al., 2003). Tan and Lau (2010) did not find any significant difference between male and female ‘attitude’ of green products for undergraduate students in main private universities in Malaysia.
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The empirical studies show contradictory results for the effect of gender in green consumerism. Several studies found that females are more likely to have pro-environmental behavior and greater intention to buy eco-labelled products compared to men (Kalamas et al., 2014; Matthes et al., 2014; Rezai et al., 2011; Zelezny et al., 2000; Davidson and Freudenburg, 1996). On the other, numerous authors found that men have more knowledge about environmental issues than women and by knowing that men act towards environment in their shopping preferences (Diamantopoulos et al., 2003). Another study did not find any difference between male and female attitude. Gender is a control variable, categorical data with two categories and a binary variable in this study
In this study, to measure the relationship amongst trust in the eco-label, intention to buy and buying act of consumers, gender is kept constant as a control variable for the analysis.
Income and Green Consumption
One of the reasons for not buying eco-labelled food products are their relatively higher price compared to conventional products (Boccaletti and Nardella, 2000; Magnusson et al., 2001; Fotopoulos and Krystallis, 2002; Zanoli and Naspetti, 2002). For that reason, especially for low-income consumers, purchasing green products can be an issue (Shepherd et al., 1996).
Additionally, a high income on consumer preference for ethically produced products was confirmed by Lehnert (2009), though solely for fair trade products and not for the organic segment.
In this study, to measure the relationship amongst trust in the eco-label, intention to buy and buying act of consumers, income is kept constant as a control variable for the analysis.
2.3.5. Consumers` Intention Toward Green Consumption Behavior
According to the theory of planned behavior, the most important determinant of a behavior is an individual`s intention to perform a behavior which is a combination of attitude toward performing the behavior and subjective norms. Literature addresses many reasons that explain the relationship between consumers` intention to buy eco-labelled products and their actual green consumption
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behaviors. Some reasons such as health consciousness, higher quality expectations, and environmental consciousness lead consumers to buy eco-labelled products, whereas some others such as higher price, low availability and lack of trust cause a gap between their attitude towards environment and their actual buying decisions.
In this study, intention to buy eco-labelled food products is tested as an independent and a dependent variable. Two hypotheses are built to measure the direct effect between intention to buy and actual buying acts and moderated mediation as below:
H3 (Direct Effect)
There is a positive relationship between intention to buy eco-labelled products (IV) and actual buying acts (DV).
More specifically, we expect intention to buy eco-labelled products to demonstrate a strong positive effect on actual buying decisions of eco-labelled products.
H4 (Indirect Effect = Moderated Mediation)
Intention to buy eco-labelled products (IV) mediates the positive relationship between trust and actual buying decisions of consumers (DV) when consumers are less price oriented and more quality oriented.
More specifically, we expect that the intention to buy eco-labelled products will relate to higher trust in ecolabels which will in turn lead to higher level of actual buying decisions when consumers are less price oriented and more quality oriented.
2.3.6. Consumers` Actual Buying Act Toward Eco-Labelled Food Products
Majority of earlier studies point out that consumers have a positive attitude toward eco-labelled products (Wandel and Bugge, 1997; Magnusson et al., 2001, Tarkiainen et al., 2005). However, having a positive attitude toward them is not always followed by an actual buying act (Tarkiainen et
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al., 2005). Previous studies and literature have been proposing several explanations to ascertain the gap between intention to buy and actual buying act, however contradictory findings address the need for further investigation in the area to better understand the underlying reasons of consumers` behaviors which is an extremely interesting area for marketers due to the fact that knowledge of consumer behavior is a competitive advantage for organizations (Hoyer et al., 2007; Khan, 2012).
Actual buying act in this study is measured as a dependent variable .
2.4. Conceptual Framework
The conceptual framework is shaped by the theories of reasoned action (Schiffman et al., 2008), the theory of planned behavior (Ajzen, 1991) and signaling theory applied to green consumerism (Atkinson & Sonny Rosenthal, 2014) together with the findings of previous studies that were done in green consumerism .
First of all, signaling theory helps us to understand facilitating consumer trust for food products through eco-labels. Eco-labels can be considered as a signal between food manufacturers and consumers to reduce information asymmetry between two parties and even can work as an enabler to facilitate the credibility of a claim which may eventually lead to consumer trust. Secondly, we consider that an eco-label which is a tool of conveying ‘environmentally friendly’ attributes of a product can create an attitude toward buying behavior. A consumer who believes eco-labelled products are less harmful to environment may intend to perform the buying behavior (The Theory of Planned Behavior, Ajzen 1991).
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Figure 4: Conceptual Framework
Control Variables: Age, gender, income, education
3. DATA AND METHOD
This chapter presents the overall research design, the sample, sampling techniques, nature as well as the sources of data collection techniques and data analysis employed in the study.
3.1.1. Overall Research Design
This research is a quantitative research which examines the relationship between independent variables that are named ‘trust in the eco-labels’ , ‘intention to buy’, ‘price orientation’, ‘quality orientation’ and a dependent variable called ‘actual buying act’. The main reasons to follow a quantitative research is due to the fact that we have a limited time for the overall research, results can be easily generalized, the research questions aim to examine the relationships among variables, neither feelings nor thoughts and we aim to close the gap of literature and complement the previous findings.
H2 (+)
H3 (+) H3b (+)
Trust in the eco-label Intention to buy eco-labelled food products Actual buying act Quality Orientation Price Orientation H1 (+) H3a (-) H4 (+)
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Dependent and independent variables are measured numerically and control variables (age, income, education, gender) are categorical data. The nature of the research design is explanatory in which we study food consumers` buying behaviors toward eco-labelled food products by explaining the relationship between the variables through the collected quantitative data. A survey research strategy is conducted through the use of a self-administered questionnaire with a close end question format. Survey strategy is picked to collect the data, due to its convenience to qualitative research and explanatory research design. The research approach is deductive where the focus is testing conceptual framework that is displayed in Figure 4. This research is a cross-sectional study which was conducted from June 2016 till February 2017.
3.1.2. Sampling
The sampling technique is predominantly convenience/availability sampling which is a part of non-probability sampling. Target population is overall food consumers above 10 years old, regardless of their gender and education. Predominantly business network, fellow students and colleagues were asked to take the survey through Linkedin, Facebook and office e-mails. However, since those group of people reflect at least bachelor degree and relatively medium to high level of income, to ensure the heterogeneity of the sample group, survey was extended to house wives who have low level of income and education through facebook as well.
Convenience sampling technique is selected to access target group and collect the data faster and easier at no cost. Although it is widely used, it is prone to bias and influences beyond our control (Saunders et al., 2012). One of the other drawbacks of using convenience sample is that findings are often given very little credibility. While sharing the analysis results and making a conclusion, these drawbacks will be considered.
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3.1.3. Target Population
Target population refers to “complete group of objects or elements relevant to the research work” (Hair et al,. 2007, p. 173). In this study the target population is people who buy food from any market and aged above 10, regardless of their gender, education and income.
3.1.4. Sample Size
“For all non-probability sampling techniques, other than for quota samples the issue of sample size is ambiguous and, unlike probability sampling, there are no rules” (Saunders et al., 2012). It is
important to understand what needs to be found out, what will be useful, what will have credibility and what can be done within the available resources to decide the right sample size for the convenience sampling (Patton 2002). While deciding the sample size of this study, recommendations of Saunders (2012) were considered to make a sense check, but since this study is not limited to any geographies or nationalities but tries to understand food consumers` behavior in general, sample size is aimed to be above the recommended levels by Saunders (2012). Overall 188 respondents have taken the survey that was designed for this study.
3.1.5. Data Collection Methods
In this study, primary data which has been gathered through a self-completed questionnaire with close end question format was used. The questionnaire was shared at Facebook, LinkedIn and a business e-mailing group and people were requested to take the survey.
3.1.6. Designing the Questionnaire
The questionnaire was developed on the basis of comprehensive literature review. This is the main source of data collection for the independent, dependent and control variables. The questionnaire contains two pages and it is divided into two parts. The first part contains the purpose of the questionnaire and also contains the eco-label logo so that respondents get the idea about what they are going to answer in the questionnaire. Second part consists of 5 questions. From question 1 till 5, data is collected for following control variables respectively: Gender, age, education, income.
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Question 5 contains 19 statements for assessing ‘trust in the ecolabel’, ‘price orientation’, ‘quality orientation’, ‘intention to buy eco-labelled products’ and actual buying act’ of consumers on seven-point Likert scale ranging from “strongly disagree” to “strongly agree” whereas 1 indicates “strongly disagree” and 7 indicates “strongly agree”. The main reason to use close end questions and Likert scale to measure variables is to shorten the survey filling time for respondents. It is mainly to ensure on time and in full fulfillment of surveys. Questionnaire was prepared in two different languages: English and Spanish. Survey was originally prepared in English . Then it was translated into Spanish by a person who is bilingual in Spanish and English. To ensure the validity of the translation translator was briefed on the background of the study.
3.1.7. Measurement
In this study, a seven-point Likert scale is used ranging from “Strongly disagree” to “Strongly agree”, whereas 1 indicates “strongly disagree” and 7 indicates “strongly agree” for measuring dependent and independent variables. To measure control variables, respondents are asked to pick one of the categories that reflect their situation for each variables. Table 3 shows all variables (dependent, independent and control), their measurement scales and statements that are used to measure the scale.
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Variable Measurement Scale Statements that are used to measure variable
Gender Nominal Male , Female
Income per month Ordinal Less than 1000 EUR
1000 EUR – 1999 EUR 2000 EUR – 2999 EUR 3000 EUR – 9999 EUR 4000 EUR – 4999 EUR 5000 EUR – 5999 EUR More than 6000 EUR
Education Ordinal Primary School
Apprenticeship Secondary
Higher posts- Secondary Schools Bachelor Master Post Master Age Ordinal 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59 60 – 69 70 – 79
35 Intention to buy
eco-labelled food
Interval
(Likert Scale from (1-7))
1. I prefer purchasing eco-labelled food products to other conventional ones (ITB1)
2. I intend to buy those products that are eco-labelled in the future (ITB2)
3. I think it is not important to buy eco-labelled food (r ITB3)
4. Next time I buy food, I will choose eco-labelled ones (ITB4)
Price orientation Interval
(Likert Scale from (1-7))
1. I generally follow discounts at supermarkets and try to arrange my shopping frequency accordingly (PO1)
2. I choose price over quality of a similar product (PO2)
3. I never change the brand of food products I buy just because alternative brands offer a cheaper price for the same product (r PO3)
4. I generally substitute a food product, if I find a cheaper alternative (PO4)
Quality Orientation Interval
(Likert Scale from (1-7))
1. I consider to change my supermarket, if I am not satisfied with the quality of the products (QO1) 2. I generally change the brand of products, if I am
not entirely satisfied with its quality (QO2) 3. I am willing to pay more when the food products
are high quality (QO3)
4. High quality has the highest priority when I purchase goods (QO4)
Actual buying act Interval
(Likert Scale from (1-7))
1. I generally buy eco-labelled food products (ABA1) 2. Most of the food I bought last month was
eco-labelled (ABA2)
3. I have not bought any eco-labelled food products consciously (r ABA3)
Trust in the eco-label
Interval
(Likert Scale from (1-7))
1. I trust eco-labels on food products (TRST1) 2. I trust eco-labels delivered by manufacturers
(TRST2)
3. I trust eco-labels delivered by government entities (TRST3)
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3.1.8. Reliability and Validity
Before going further in the research it is important to know that the selected variables and their measures are valid and reliable (Hair et al,. 2007). Whereas reliability is associated with consistency and validity is associated with accuracy (Hair et al,. 2007). In other terms reliability refers to “an
indicator of a measure’s internal consistency” (Zikmund et al,. 2010, p. 305). Validity defines as “the accuracy of a measure or the extent to which a score truthfully represents a concept” (Zikmund
et al,. 2010, p. 307).
There are two main types of internal consistency, “split-half reliability” and “coefficient alpha” (Hair et al,. 2007). Coefficient alpha is the most commonly used to determine the internal consistency (Zikmund et al,. 2010). Coefficient alpha ranges from 0 to 1 (Hair et al,. 2007). Whereas 0 indicates no consistency and 1 indicates complete consistency and as the value decreases the strength level of consistency decreases (Zikmund et al,. 2010).
In this study, reliability analysis were conducted for multi-item scales; trust, intention to buy, actual buying act, price orientation and quality orientation. Trust and intention to buy have a Cronbach` alpha which is superior than 7, therefore those variables show high level of internal consistency. Although actual buying act has a Cronbach`s alpha that is superior than 7, by removing one item overall consistency will be improved to the level of 0.863. The main motivation behind the removal of the item is that the delta in alpha is being greater than 0.10. On the other hand, alpha for price and quality orientation were lower than 7. By removing one item in the price orientation variable, internal consistency has been improved to 0.626 level which is not a good scale but can be accepted as a fair scale. For quality orientation, alpha is lower than 0.6 which means that scale has a poor internal consistency. During the pilot and intermediate test that was conducted when the survey was taken by 121 respondents, reliability of quality orientation scale was above 0.607. At this moment, there is no way to improve the reliability further by removing any other items in the scale. However, poor internal consistency for quality orientation will be considered for the conclusion of the results.
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Table 2: Reliability of Scales
Variables Cronbach`s
Alpha -Initial Comments
Cronbach`s Alpha -Improved
Trust 0.845
Cronbach`s alpha is greater than 0.7 and for all items corrected item - total correlation values are greater than 0.3. Therefore scale is good and no items should be removed.
0.845
Intention to Buy 0.788
Cronbach`s alpha is greater than 0.7 and for all items corrected item - total correlation values are greater than 0.3. Therefore scale is good and no items should be removed.
0.788
Actual Buying Act 0.741
Cronbach`s alpha is greater than 0.7 and for all items corrected item - total correlation values are greater than 0.3. However, by removing ABA3 alpha can be improved to 0.863. Since delta in alpha is 0.12 and it is greater than 0.10, ABA3 is deleted and alpha is improved to 0.863.
0.863
Price Orientation 0.577
Cronbach`s alpha is lower than 0.7 and for PO3 corrected item - total correlation values (0.204) are lower than 0.3. By removing PO3, alpha can be improved to 0.626 which is accepted as fair reliability.
0.626
Quality Orientation 0.585
Cronbach`s alpha is lower than 0.7. However for all items corrected item - total correlation values are higher than 0.3 and by `11.
0.585
4. RESULTS
4.1. Pre-Analysis Phase
The analysis phase started after having 188 questionnaires from the respondents. First of all, the data from Qualtrics were exported into SPSS software. Secondly, data coding process which refers to “The process of assigning a numerical score or other character symbol to previously edited data” (Zikmund et al., 2010 p. 468) was conducted. Thirdly, counter-indicative items for price orientation
(rPO3), intention to buy eco-labelled products (rITB3) and actual buying behavior (rABA3) were
re-coded as PO3, ITB3 and ABA3. Finally, a frequency check was done for all variables to examine the errors in data entry. No errors were found. Missing values were handled by excluding cases list wise. As a final preliminary step, scale means have been computed for trust (TRST1, TRST2, TRST3,
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TRST4), intention to buy (ITB1, ITB2, ITB3, ITB4), actual buying behavior (ABA1, ABA2), price orientation (PO1, PO2, PO4) and quality orientation (QO1, QO2, QO3, QO4). And computed means called as TRSTTOT, ITBTOT, POTOT, QOTOT, ABATOT.
4.2. Descriptive Analysis
Descriptive analysis refers to “The elementary transformation of raw data in a way that describes
the basic characteristics such as central tendency, distribution and variability” (Zikmund et al., 2010
p. 486).
As explained on the pre-analysis phase, the independent and dependent variables in this study were investigated by many different statements. The scale means have been computed: trust (TRSTTOT), intention to buy (ITBTOT), actual buying act (ABATOT), price orientation (POTOT) and quality orientation (QOTOT). The mean value and standard deviation for each variables were calculated. Table 5 shows the values of the mean, standard deviation, skewness and kurtosis of different variables. The values for skewness and kurtosis between -2 and +2 are considered acceptable in order to prove normal univariate distribution (George & Mallery, 2010). Skewness and kurtosis of TRSTOT, ITBTOT, ABATOT, POTOT and QOTOT are between -1 and +1 and we may conclude that data is normally distributed.
Table 3 : Descriptive Statistics for dependent and independent variables
N Minimum Maximum Mean Std. Deviation Skewness Kurtosis Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic
Std. Error Trust in eco-labels 180 1.50 7.00 4.7542 1.13738 -.665 .181 .129 .360
Intention to buy 180 1.00 7.00 4.6431 1.15967 -.458 .182 -.012 .361 Actual buying act 180 1.00 7.00 3.7528 1.45366 .116 .183 -.817 .362 Price orientation 180 1.00 6.33 3.5046 1.21053 .111 .184 -.477 .363 Quality Orientation 180 3.25 7.00 5.7134 0.74234 -.357 .185 -.093 .364
