DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN

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Determinants of Consumers Green Purchasing Behavior in Taiwan Isis Hung Michigan State University

Author Note

Isis Hung, Department of Advertising, College of Communication Arts & Sciences, Michigan State University. Correspondence concerning this article should be addressed to Isis Hung,

Communications Arts and Sciences 404 Wilson Road East Lansing, MI 48824.
Email: hungjoyu@msu.edu

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN Abstract Green consumerism has shifted from Western to Eastern regions, yet there remains a scarcity of empirical research focusing on green consumerism in Asia. This study aims to investigate multiple cultural and psychological factors that influence Taiwanese consumers green

purchasing behavior. A survey was employed with a sample of 1,000 consumers to examine how collectivism, attitude toward green purchasing behavior, and environmental concern affect green purchasing behavior. The survey results provide reasonable support for the validity of the proposed model. The finding of the positive relationship among collectivism, attitude toward green purchasing behavior and green purchasing behavior is in consistence of the theoretical value-attitude-behavior hierarchy. The other important finding suggests that environmental concern serves as a direct predictor of green purchasing behavior in Taiwan. Keywords: collectivism, environmental concern, green purchasing behavior, environment

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN Determinants of Consumers Green Purchasing Behavior in Taiwan Since the modern environmental movement in the 1970s, environmental issues have become one of the major hot-button topics. Green consumerism has then emerged as a

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description of consumers attempts to preserve the environment and minimize the environmental damage when purchasing products (McEachern & McClean, 2002). Recently, the trend of green consumerism has shifted from Western to Asian regions (Gura u & Ranchhod, 2005). While marketers are developing new environmental-friendly products as well as modifying existing ones to meet green consumers needs and wants, empirical studies have been exploring the factors relating to green purchasing behavior in Asia. The degree of consumers green purchasing behavior differs due to different cultural and psychological factors. Several researches have assessed correlations among Chinese man-nature orientation, environmental concern, attitude toward green purchasing, purchasing intention and purchasing behavior in China (Chan & Lau, 2000; Kim & Choi, 2005; Liu et al., 2012). Some studies have investigated the relationships among collectivism, peer influence, ecological affect, ecological knowledge and green purchasing behavior in Hong Kong (Chan & Lau, 2002; Lee, 2009). Overall, empirical findings suggest that the more Chinese consumers are involved in the environment, the more they are likely to engage in environmental-conscious purchasing behavior in both China and Hong Kong. However, to date there are no empirical studies investigating cultural or psychological factors relating to green purchasing behavior in Taiwan, which is the fifth largest economy in Asia. Marketers may find difficulties in developing environmentalfriendly products or in executing environmental advertising strategies due to limited scientific researches in Taiwan. Adopting from aforementioned literature that both cultural and psychological factors

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN relate to consumers green purchasing behavior, this study aims to empirically investigate how

traditional collectivism, environmental concern, and attitude toward green purchasing behavior correlate to such behavior in Taiwan. The findings of this study will expand existing understanding of what determines Taiwanese green purchasing behavior as well as provide practical implications for marketers. Literature Review Collectivism and Green Purchasing Behavior Similar to other Confusion nations such as China, Hong Kong, Japan, and South Korea, Taiwan is under the influence of collectivism, which is one of the basic cultural dimensions of the Chinese (Chan. 2001). Based on Hofstedes research (1980), the term collectivism suggests basic beliefs that individuals not only hold their interaction with others in high regard, but also view unity with others as a priority. Individuals who are characterized to be collectivistic are expected to demonstrate a strong tendency to yield their individual interests to group conformity (Hofstede, 1983; Triandis, 1989; Triandis et al., 1988). Lee and Green (1991) also note that collectivistic individuals are willing to weigh the aspects and opinions of the majority within their social circles heavily. Empirical studies have found positive correlations between individuals collectivistic orientation and a variety of environmental-conscious social behavior. For instance, McCarty and Shrum (1993) found a positive relationship between collectivism and consumers belief about recycling to their actual recycling behavior. Lis research (1997) showed significant influence of collectivism on Chinese consumers intention to search for information about environmentalfriendly products as well as on consumers ecological commitment. Chan (2001) found that collectivism has a strong impact on Chinese consumers attitudes toward green purchases, which

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ultimately influences their green purchase intention and green purchase behavior. Similar results were also found for consumers pro-environmental choices, which were made by collectivistic individuals who possess strong beliefs that such choices would alleviate environmental problems (Kim & Choi, 2005). Based on the theoretical framework of the valueattitudebehavior hierarchy (Homer & Kahle, 1988), value is the fundamental guide for attitude and belief development. It indirectly influences corresponding behavior through a specific attitude or belief with regards to an object, topic, or idea (Tolman, 1951). The study by Chan (2001) showed an indirect effect of collectivism on green purchasing behavior mediated by attitudes toward such behavior. Similarly, the effects of collectivism, conceptually defined as an individual-level value orientation, on green purchasing behavior flowed through more specific attitudinal and cognitive concepts (Kim & Choi, 2005). In short, both studies have demonstrated the influence of collectivism as a value orientation on an individuals green purchasing behavior, via the mediating variable of attitude toward such behavior; such a relationship is in consistence with the aforementioned valueattitudebehavior framework. Environmental Concern and Green Purchasing Behavior An individuals environmental concern is fundamental to environmental studies (Hines et al., 1987). On one hand, environmental concern refers to a specific attitude toward environmental-conscious behavior, and therefore determines such behavior ranging from recycling behavior (e.g., Arbuthnot & Ligg, 1975; Kellgren & Wood 1986; Simmons & Widmar 1990) to green purchasing behavior (e.g., Chan, 1996; Donaton & Fitzgerald, 1992; Kerr, 1990; Ottman, 1992). For instance, Kim and Choi (2005) conceptually define environmental concern as an individuals concern level toward environmental issues, and thus it serves as a useful predictor

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN of environmental-conscious behavior. Fransson and Garling (1999) suggest that environmental concern could be viewed as an attitude toward facts, toward an individuals behavior, or toward others' behavior for the environmental-conscious results. Similarly, Chan and Lau (2000) have

conceptualized environmental concern as a broadly defined attitude toward environmental issues, and such an attitude is an important predictor of corresponding behavior. On the other hand, environmental concern could also be referred to as a general value orientation relating to an individuals fundamental beliefs or core values (e.g., Stern, 1992; Schultz, 2000). For example, Fransson and Garling (1999) suggest that environmental concern links to ones anthropocentric altruism, hence what is concerned is the well-being of humans instead of the threat to the environment. Also, ones self-interest lies in the nature of environmental concern; the hidden factor affecting environmentally responsible behavior may be an individuals perceived threats caused by environmental problems (Fransson & Garling, 1999). Similarly, Kim and Choi (2005) suggests that environmental concern relates to ones values, and can be determined by ones core value orientation. In the study, ones altruistic value is compared to collectivism, which is also related to environmental concern due to its focus on the well-being of the group members (Kim & Choi, 2005). Recently, such value orientations are gradually identified altogether as an eco-centric value orientation, which is similar to the perspective of New Ecological Paradigm (NEP), a widely adopted measurement among environmental studies (e.g., Roberts, 1996; Fransson & Garling, 1999; Kim & Choi, 2005; Mostafa, 2007). Theoretically, there is a positive relationship between ecological affect and corresponding behavior (Dispoto, 1977; Li, 1997; Maloney & Ward, 1973). In this context, Benton (1994) has termed such affect as an environmental concern, which represents an individuals attitude toward environmental-conscious behavior. This concern-behavior relationship is in consistence with the

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN aforementioned hierarchical model of value-attitude-behavior, in which attitude is a crucial

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predictor of corresponding behavior. Central to the logic of these two paradigms, environmental concern, which is conceptually defined as a specific attitude toward environmental-conscious behavior, is expected to serve as a determinant of green purchasing behavior. This positive relationship between environmental concern and corresponding behavior is also found in former studies (e.g., Roberts, 1996; Fransson & Garling, 1999; Chan & Lau, 2000; Kim & Choi, 2005; Mostafa, 2012). Hypotheses The purpose of the study is to examine how collectivism, environmental concern, and attitude toward green purchasing behavior correlate to such behavior within Taiwanese consumers. Based on former literature and aforementioned discussions, a proposed model is presented as Figure 1 to visualize the hypothesized causation among variables. In light of the theoretical framework of the value-attitude-behavior hierarchy (Homer & Kahle, 1988), the relationships among collectivism, attitude toward green purchasing behavior, and green purchasing behavior are hypothesized as follows: H1: Collectivism directly and positively relates to attitude toward green purchasing behavior within Taiwanese consumers. H2: Attitude toward green purchasing behavior directly and positively relates to such behavior within Taiwanese consumers. Also, in light of the positive concern-behavior relationship (Dispoto, 1977; Li, 1997; Maloney & Ward, 1973) and aforementioned value-behavior hierarchy, the relationship between

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN environmental concern and green purchasing behavior is hypothesized as follows: H3: Environmental concern directly and positively relates to green purchase behavior within Taiwanese consumers.

H1 Collectivism

Attitude Toward GPB

H2

+ +
H3

Green Purchasing Behavior

Environmental Concern Figure 1: Proposed Model Methodology Survey

To obtain the necessary data for the analysis, a self-administrated survey was conducted in April of 2013 to test the hypotheses. Due to its efficiency and accessibility, an online survey questionnaire was designed to optimize the response rate among the participants. Similar to other cross-cultural studies (e.g., Mostofa, 2007), the Chinese version of the questionnaire was created through translation and back-translation techniques (McGorr, 2000). The author firstly translated the scale items into Chinese. These Chinese items were then back-translated into English by both Chinese and American bilingual experts to ensure the translation accuracy as well as make sure that the original English items were kept in translation to decrease discrepancies between the English and the Chinese measurements.

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN Sample In attempt to acquire approximately 500 good data for the analysis, a total of 1,000 undergraduate students enrolled in National Taiwan Normal University (NTNU) were selected

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by random sampling procedure to participate in the study. NTNU is located in downtown Taipei, the capital of Taiwan; it is the 15th largest university in Taiwan, and the 9th largest university in Taipei with 7,216 undergraduates enrolled in 2013. The participants ranged in age from 18 to 23 years old, with an average age of 20. Of the total participants, 38 percent were male and 62 percent were female. All of the participants are Chinese in terms of race with a diverse range of majors. Measures Each construct was operationally defined and measured by multiple items based on former studies and researchers own judgment. The relevant details are described as follows. Collectivism Participants degree of collectivism, conceptually defined as a value orientation, was measured by 7-point, 6-item Likert-type scale, which was a revised combination of two existing scales. One of them is a 7-point, 3-item Likert-type scale with anchors of 1 = not at all important to 7 = extremely important adapted from McCarty and Shrums measurement instrument (1994). This is a well-adopted instrument and the items are considered to be moderately good indicators of collectivism (McCarty & Shrum, 1994). Two out of three items from the instrument are selected to test the degree of collectivism; one of them --I readily help others in need of help-- is eliminated since its not a determinant of whether or not an individual is collectivistic. The other existing scale is a 7-point, 4-item Likert-type scale with anchors of 1 = not at all important to 7 = extremely important adopted from Yamaguchi (1990) and further

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN tested by Kim and Choi (2005). These two empirical studies showed that all four items loaded

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significantly on the latent construct of collectivism at p < .01. The actual wording of statements is as follows: (a) I work hard for the goals of my group, even if it does not result in personal recognition. (b) I am a cooperative participant in group activities. (c) I respect the majoritys wish. (d) I support my group, where they are right or wrong. (e) I respect decisions made by my group. (f) I maintain harmony in my group. Attitude Toward Green Purchasing Behavior Three statements coded by 7-point semantic-differential scales were utilized to test participants attitude toward green purchasing behavior. This measurement was first employed by Taylor and Todd (1995) and further tested by Li (1997) to operationalize the global measure of attitudes. Chans research results (2001) also showed the validity of such a global attitudinal measure, which is in accordance with with the attitude measuring procedure suggested by Ajzen and Fishbein (1980). The actual wording of statements is as follows: (a) I (1 = dislike; 7 = like) the idea of purchasing green products. (b) Purchasing green is a (1 = bad; 7 = good) idea. (c) I have a/an (1 = unfavorable; 7 = favorable) attitude toward purchasing a green version of a product. Environmental Concern Environmental concern is a measure of the individual's concern, that is, a specific attitude

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toward the environment. Starting from this general perspective of environmental concern, several measures have been developed. Among those existing instruments of measure, two of them are the most frequently used (Fransson & Garling, 1999): the Ecological Attitude Scale (EAS) and the New Ecological Paradigm (NEP) scale. The 7-point, 15-Likert-type items NEP scale was employed to test participants degree of concern toward the environment, since it is the adopted from most of the environmental studies examined, and is also probably the most widely-used environmental measure worldwide. It was first developed as a 12-item scale by Dunlap and Van Liere (1978), later tested by Noe and Snow (1990), and further revised as a 15-item scale by Dunlap et al. (2000). It had been used as a instrument of measure for general environmental concern in the U.S.A., Canada, Sweden, Turkey, the Baltic State, and Japan for decades (Mostafa, 2007). According to Dunlap and Van Liere (1978), the scale has predictive, construct, and content validity. Its predictive and construct validity was later supported in Eastern context by Mostafas research results in Arabic (2007). Statements of New Ecological Paradigm are listed as follows: 1. We are approaching the limit of the number of people the Earth can support. 2. Humans have the right to modify the natural environment to suit their needs. 3. When humans interfere with nature it often produces disastrous consequences. 4. Human ingenuity will insure that we do not make the Earth unlivable. 5. Humans are seriously abusing the environment. 6. The Earth has plenty of natural resources if we just learn how to develop them. 7. Plants and animals have as much right as humans to exist. 8. The balance of nature is strong enough to cope with the impacts of modern industrial nations.

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN 9. Despite our special abilities, humans are still subject to the laws of nature. 10. The so-called ecological crisis facing humankind has been greatly exaggerated. 11. The Earth is like a spaceship with very limited room and resources. 12. Humans were meant to rule over the rest of nature. 13. The balance of nature is very delicate and easily upset.

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14. Humans will eventually learn enough about how nature works to be able to control it. 15. If things continue on their present course, we will soon experience a major ecological catastrophe. Green Purchasing Behavior An existing instrument (Mainieri et al., 1997) was used to measure participants green purchasing behavior. Unlike other existing instruments which only measure participants general environmental buying behavior (e.g., Chan, 1996; Chan, 2000; Kim & Choi, 2005), this instrument measures three aspects of consumers green purchasing behavior: factors that influence purchasing, specific environmental purchases, and general environmental buying behavior. Also, unlike other existing scales that require contacting the participants again one to three months after the first survey to measure their behavior within the time period (e.g., Chan 2001; Liu et al., 2012), this is a one-time measure instrument that may optimize the response rate. Study results showed that all items loaded significantly on the latent construct of green purchasing behavior at p < .01 (Mainieri et al., 1997). Participants used a 6-point scale to rate six factors (quality, cost, prior use of the product, range of sizes available, safety to the environment, other) that influence their buying decisions. In addition, participants indicated whether they had ever purchased a specific type of product since they believed it would make a difference on the environment by using a list of six product

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN categories (household cleansers, laundry detergents, light bulbs, garbage bags, paper products,

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other). A 7-point, 8-item Likert-type scale was employed to measure participants general green purchasing behavior. Items such as I try to buy things that come in reusable containers and I avoid using products that contain fluorocarbons are included. Description of Questionnaire The questionnaire was an attractive five-webpage online survey with a cover page of brief instructions and research information. The questionnaire link was sent to each participant via emails on April 1st; participants were informed to finish the online questionnaire within two weeks. Each questionnaire was closed and each link turned to be invalid right after the participant finished the survey. There were 33 questions in the survey, which took each participant approximately 15 minutes to finish. The questionnaire was divided into four topic categories: consumers degree of collectivism, consumers attitude toward green purchasing behavior, consumers concern toward the environment, and consumers purchasing behavior related to the environment. Data Analysis Pearson correlation was chosen to explore the strength between variables as a statistic method. Tests of hypotheses were based on aforementioned value-attitude-behavior hierarchy and affect (concern)-behavior relationship. The estimated standardized path coefficients of the four constructs under examination were shown in Figure 2. All the estimated path coefficients were significant at p < .05 with the direction of impact as discussed in hypotheses. The standardized path coefficients ranged from 0.321 to 0.727; all of the constructs are greater than the suggested minimum value of significance at 0.20 (Chin, 1998). Therefore, all the tested research hypotheses were supported.

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H1 Collectivism *0.321

Attitude Toward GPB

H2 *0.727 Green Purchasing Behavior

Environmental Concern

*0.601 H3

*Standardized parameter estimates significant at p < .05; t values are given in parentheses.

Figure 2: Path analysis of the latent constructs. Discussion and Implications Discussion and Research Implications The study extends previous environmental researches regarding green consumerism by examining such consumerism within Taiwanese consumers and by supporting theories relating to green consumerism in Asia context. In accordance with previous research findings that a valueattitude-behavior hierarchy lies in the green purchase context (e.g., Chan, 2001; Kim & Choi, 2005), the study confirms that such a theoretical framework also exist within Taiwanese green consumerism. The study concludes that collectivism, conceptually defined as an individual-level value orientation, affects consumers green purchasing behavior, mediated by consumers attitude toward such behavior. The result emphasizes the importance of consumers attitude towards environmental behavior closely related to consumers underlying interest or value of such behavior. An individuals core value is the key to motivate and determine the corresponding environmental-conscious behavior, but his/her attitude or beliefs toward such behavior or a specific topic or object may intervene between an individuals fundamental value and the corresponding behavior. Hence, future researchers could acquire other predictors of green

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN purchasing behavior by accessing different levels of attitude toward a specific topic or object such as behavioral intentions or personal efficacy. The results also provide potential empirical support to the important premises of the classic behavioral theory (value-attitude-behavior). Most of the major consumer behavior theories were developed and tested in western context; however, relatively little attention had

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been paid to investigating the validity of these theories in other cultural settings (Mostafa, 2007), especially in an Asian context. Therefore, this study serves as an essential behavioral research to test the validity of the classic behavioral theory. One surprising result is that environmental concern, conceptually defined as a specific attitude toward the environment, significantly affects green purchasing behavior within Taiwanese consumers. Unlike some of the former western findings which showed that environmental concern was conceptually defined as a general value orientation (e.g., Stern, 1992; Schultz, 2000) (and thus indirectly affect green purchasing behavior via a mediating variable, such as green purchasing intention) the present findings show a direct relationship between environmental concern and green purchasing behavior. It is in consistence with the positive relationship between ecological affect and corresponding behavior (Dispoto, 1977; Li, 1997; Maloney & Ward, 1973). Therefore, consumers environmental concern can serve as a crucial predictor of green purchasing behavior in Taiwan. Marketing Implications The findings suggest that green consumerism in Taiwan is a prevalent phenomenon; however, to what extent the results can be generalized to the whole population is unknown. Marketers may need to identify those environmental-conscious consumers and segment the market in order to effectively communicate their marketing message to the target audience. In

DETERMINANTS OF GREEN PURCHASING BEHAVIOR IN TAIWAN addition, knowing the profile of green consumers in Taiwan helps marketers develop their

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marketing strategies. For instance, by knowing the positive relationship between environmental concern and the green purchasing behavior shown in the findings, marketers could develop their branding strategy. By educating green consumers of the environmental facts or ways to preserve the environment, marketers may not only enhance their brand image but also implant a green business impression on the environmental-conscious consumers in Taiwan. Furthermore, the positive indirect relationship between collectivism and green purchasing behavior suggests that collectivistic Asian markets such as Taiwan are potential markets for international green marketers. Contradicting to the common belief that Asian countries are less environmentalconscious compared with Western developed countries (Mostafa, 2007), collectivistic Asian countries are indeed potential green markets. Going green might be a good entry strategy for those international marketers who are preparing to enter Asian countries. Also, for those existing international marketers who are struggling to survive in the competitive Asian markets, going green might be a useful strategy to create new market segmentation by attracting non -green consumers. Based on Schuhwerk and Lefkoff-Hagiuss study (1995), even though environmental appeals are not significantly more influential than non-green appeals for green consumers, they are indeed much more persuasive than non-green appeals for non-green consumers. Research Program Future Research There are several suggested pieces of information on future studies. First, the study tests the relationship among variables only based on the theoretical value-attitude-behavior hierarchy. Future researches could test the variables based on the theory of reasoned action (TRA) or the

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theory of planned behavior (TPB), which are also important and influential paradigms in social behavioral studies (Mostafa, 2007). Also, future studies could examine other important cultural factors influencing environmental-conscious behavior in Asia that were discussed in former cross-cultural studies such as man-nature orientation (Chan & Lau, 2000; Chan, 2001) and social norms (Mostafa, 2007). By incorporating these crucial cultural components into behavioral theories, the role of cultural factors in the decision to purchase green products can be better understood. In addition, the present study only examines Taiwanese consumers green purchasing behavior; therefore, to what extent the results can be generalized to the collectivistic Asian countries is still unclear. Future studies could take cross-country meta-analysis among collectivistic Asian countries into account for a more comprehensive understanding of green consumerism in Asia. Journal Selection Psychology & Marketing and Environment and Behavior are expected to be outlets for this research. Both of journals are listed on 2011 Journal Citation Reports with about 25% acceptance rate as well as with an impact factor of 1.135 and 1.275 respectively reported by ISI Web of Knowledge. Psychology & Marketing especially welcomes cross-cultural research and psychological studies of individuals or groups with clear marketing implications; it could be a good chance to present research about green consumerism in Taiwan. Research focus on consumer psychology and marketing is shared among the executive editor, Rajan Nataraajan, and other editorial editors; it could also be a chance for the present research examining both consumers psychological and cultural impacts on green consumption. Environment and Behavior welcomes research that investigates relationships between human behavior and the natural and built environment. Research interest in environmental

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psychology and human behavior is shared among one of the senior editors, Carol Werner, and as well as the other editorial editors. Both aforementioned characteristics of Environment and Behavior increase the present researchs opportunity of being accepted.

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