This Presentation is about Research paper.

1. Chinese consumer attitude and
purchase intent towards green
products
By
Yiming Teng, Xiucum Wang and Pingping Lu
Asia-Pacific Journal of Business Administration, Vol. 6 Issue: 2, pp.84-96
Presented by:
Shafqat Rasool- 41015
Muhammad Awais Zameer- 41012
Syed Abdul Basit – 41005
Muhammad Awais Khan- 41050
Presented to:
Dr. Yasir Tanveer
GC. University Faisalabad
22/11/2019

2. 1) Abstract:
• Purpose : Examining how Chinese customer attitude act between
factors that effect their purchase diversion to low-displacement
vehicles (green product).
• Methodology : Online survey data is used in China :
 Multiple regression
 Recursive regression models
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3. Contd..
• Findings : The findings of current research studies:
 Customer environmental concern.
 Perceived effectiveness belief.
 Functional benefit (value).
• It is positively affect their attitudes towards green product.
3

4. Contd..
• Value of studies : It is first practical study to systematically examine
Chinese customer attitude act between factors and purchase
intention of green product.
• Paper type : Research paper
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5. 2) Introduction:
• Chinese superior economic growth is achieved by conventional
economic growth model.
• Which makes china the world biggest greenhouse gas producing
country.
• Global warming rise concern in the world and low carbon growth is
used to reduce the global warming concerns.
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6. Contd..
• Green economy requires joint participations of all stake holders.
• Businesses also introduced the green product in market.
• There are constraint for customer to adopt the green product.
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7. Contd..
• Product quality, price and services are the top factor to influence the
purchasing decision.
• There is lack of awareness in customer about green product in china.
• Examine factors effecting consumer attitude toward green product.
• Attitude act between these factors impact on consumer purchase
decisions.
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8. 3) Literature Review:
• Hubacek et al. (2012):
Government and
business efforts are
insufficient for
adoption of Green
products in China.
• Gao et al. (2008):
Green Consuming (GC)
concept was first
introduced in Europe
and other developed
countries in 1960s.
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9. Contd..
• Evidence on the relationship between household income and GC
level are mixed:
Some found positive relationship (Zhu and Tong, 2009)
Some found negative relationship (Wang and He, 2011)
Some found no relationship between these 2 (Li 2006, Wang 2008)
• Studies also examined the relationship of education level with green
consumption in China,
People with higher education level are more interested in Green
Consumption in China (Yan 2003).
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10. Contd..
• Qian and Sun (2009), Wang and Li (2003):
Retail price for organic food products is 2 to 5 times that of ordinary
products in China. While urban consumers are only willing to pay up to
10-30% for such products.
• Results on the gender and Green Purchase are also mixed:
• Some found a higher percentage of women who buy organic food
products (Cheng et al. 2002, Zeng et al. 2007).
• Men are dominant buyers of green building materials (China
Environmental Federation 2009).
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11. 4) Conceptual Framework and Research
Hypothesis:
Hsieh (2011) conducted
an experimental study on
the impact of a Carbon
Footprint (CF) Label on
the purchase intention
towards bottled drinks in
Taiwan.
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12. Contd..
• If this message is delivered, communicated and CF label are present,
the consumers will prefer low 𝐶𝑂2 - high price product over high
𝐶𝑂2 - low price product.
• Most of studies in literature review are descriptive in nature and a
systematic research effort has been lacking in this field. The current
study represents a first step toward mending such research gap in
china.
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13. Contd..
• The author constructed a research model explaining the attitude-
intention relationship.
• The research model examines how
1) Consumer’s environmental concern,
2) Their perceived effectiveness belief,
3) Their perception of product functional value &
4) Their awareness of Govt. policy
Influence their attitude toward green products and how such attitude
impacts over consumers purchase intention toward such products n China.
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14. 14
Environmental
Concerns
Awareness of
Government Policy
Perceived
Effectiveness
Belief
Functional Value
Perception
Consumer Attitude
Consumer
Purchase Intention
Fig. Research Model

15. Contd..
1. Consumer environmental concerns:
Hansla et al. (2008) maked a research outside China and found that
people with higher environmental concerns have more positive attitude
toward green product purchase.
It is therefore hypothesize that,
H1a - environmental concern is positively associated with consumer
attitude toward green product and
H1b – such an attitude mediates their intention to purchase such
products.
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16. Contd..
2. Consumer perceived effectiveness belief:
Consumer’s belief in their ability to effectively solve environmental
problems has been linked to their green product purchase.
Those who believe Govt. and corporations should responsible for solving
environmental problems not individuals, are less willing to pay high prices
for such products.
H2a - consumer’s perceived effectiveness belief is positively associated
with their attitude toward green purchase.
H2b – such an attitude mediates their intention to purchase such
products.
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17. Contd..
3. Consumer perception of product functional value:
Consumer purchase certain products to seek certain value from such purchases.
Yuan and Hao (2008) found users of energy saver lamps have positive
perception of product’s functionality.
Moreover, 84% of Chinese consumers who were surveyed buy green food
products due to claimed health benefits.
H3a - consumer’s positive perception of the functional value of green products
is positively associated with their attitude toward such products.
H3b - such an attitude mediates their intention to purchase such products.
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18. Contd..
4. Consumer awareness of government policy:
In recent years, Chinese govt. has legislated specific energy saving and
low emission targets to reduce carbon emission.
A shift in govt. policy and consumer awareness have effectively changed
the nation’s consumption levels and patterns.
H4a - consumer awareness of govt. policy on green products is positively
associated with their attitude toward green products and in return,
H4b - such an attitude mediates their intention to purchase such
products.
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19. 19
Human Don’t Deserve Earth?

20. 5) Methodology:
• Current study adopted an online survey using Convenient Sampling
Method.
• Out of 639 online survey they received only 408 useable survey which
shows 63.9% response rate.
• The measurements utilized in this study are adopted from previous
research in this field.
• The environmental concern measure, consisting of three statements, is
adapted from Hirsh (2010).
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21. Contd..
• The perceived effectiveness belief measure, consisting of two statements,
is adapted from Ajzen (2006).
• The awareness of relevant Government policy, being made up of two
statements, is adopted from Chen (2007).
• The purchase intention measure, consisting of three statements, is adapted
from Aguilar and Vlosky (2007),
• These statements is set on a seven-point scale, ranging from “1=least
agree” to “7=most agree ”
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22. Contd..
Independent Variables
• Environmental concern
• Low-carbon Effectiveness belief
• Functional value perception
• Government Policy awareness
• Attitude
Dependent Variables
• Attitude
• Intention
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23. Contd..
• First, the effect of the four independent variables on the dependent
variable of consumer attitude was assessed.
• Second, the effect of the four independent variables on the dependent
variable of consumer intension was assessed.
• Third, the effect of all four independent variables plus consumer attitude
on purchase intention was assessed.
• Fourth, the impact of consumer awareness of government policy on both
consumer attitude and their purchase intention remains not significant.
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24. 6) Hypotheses Testing Results:
H1a: Environment concern is positively
associated with attitude.
Accepted
H1b: Attitude mediates environmental
concern on purchase intention.
Accepted (Partial mediation)
H2a: low-carbon effectiveness belief is
positively associated with attitude.
Accepted
H2b: Attitude mediates low-carbon
effectiveness belief on purchase intention.
Accepted (Full mediation)
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25. Contd..
H3a: Functional value perception is
positively associated with attitude
Accepted
H3b: Attitude mediates functional value
perception on purchase intention.
Accepted (Partial mediation)
H4a: Consumer awareness of government
policy is positively associated with attitude.
Rejected
H4b: Attitude mediates policy awareness on
purchase intention.
Rejected
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26. 7) CONCLUSIONS : OBJECTIVES OF CURRENT
STUDY:
• Examining factors affecting consumer attitude towards low-
displacement vehicles.
• Such attitude mediates (intervene) these factors impacts on
consumer purchase intention towards such green products.
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27. CONCLUSIONS : HYPOTHESIS TESTING RESULTS
• These are the key factors influencing consumer attitude (view)
towards low-displacement vehicle.
a) Consumer environmental concern.
b) Recognize low-carbon effectiveness belief.
c) Concept of product functional benefits or values.
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28. CONCLUSIONS : CONSUMER VIEW MEDIATION
• These findings is clear answers of current study to research
objectives:
a) Consumer attitude fully act between the influence of low-carbon
effectiveness belief on customer green vehicle purchase
intention.
b) Consumer attitude partly act between environmental concern &
functional benefit on customer green vehicle purchase intention.
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29. 8) LIMITAIONS : STUDY DATA FACTORS
• The current study data is based on online survey through :
a) Convenience sampling method.
b) Get data from residents in Beijing.
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30. LIMITAIONS : POTENTIAL LIMITATIONS
• The pervious study data factors leads to some potential limitations in
form of :
a) Geographic areas limitation.
b) Limit of demographic partition of population.
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31. LIMITAIONS : PRICE LEVEL FACTOR
• Price level is important factor to influence and put limitation on:
a) Customer attitude (viewpoint).
b) Purchase intention towards green products.
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32. 9) FUTURE RESEARCH DIRECTIONS:
• Current studies is used for further future research work :
a) For broader geographical areas in terms of tier-1 & tier-2 cities.
 Classification of cities in terms of population & infrastructure-
wise:
 A-1 cities > X cities > Tier-1 cities.
 A, B-1, B-2 cities > Y cities > Tier-2 cities.
b) Wider customer demographic & social-economic partitions.
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33. FUTURE RESEARCH DIRECTIONS:
• Consider these factor’s potential impact of consumer knowledge:
a) Government policy's instructions about green products.
b) Examine specific pricing levels of green products.
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