ATTITUDES TOWARDS ENERGY EFFICIENT PRODUCTS: THE INFLUENCE OF ECO- LITERACY AND SOCIAL INFLUENCE

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1 ATTITUDES TOWARDS ENERGY EFFICIENT PRODUCTS: THE INFLUENCE OF ECO- LITERACY AND SOCIAL INFLUENCE Norzalina Zainudin Department of Economics Faculty of Management and Muamalah International Islamic University College Selangor, Malaysia. ABSTRACT This study was designed to identify the key antecedents and moderators that influence consumers willingness to purchase environmentally friendly products. This paper explores the consumer green purchasing behavior on energy efficient products focusing on eco-saving lighting. A survey with face to face interview will be conducted with 120 samples in Bangi and Petaling Jaya Selangor, Malaysia. Analysis from Pearson correlation confirmed that consumers with high level of environmental knowledge and awareness has positively related to a good attitude on green purchasing behavior. Understanding consumers buying decision and choice of products helps in developing market strategies and right government policies. Consumers practice green purchase are important in term to minimize negative environmental impacts by protecting natural resources, reducing energy use and waste and improving health and safety. Field of Research: Green purchasing, energy efficient products, eco-literacy, social influence, attitude Introduction Sustainable consumption and productions (SCP) was one of the importance identified at the Rio Earth Summit in 1992 (Agenda 21), where it was documented to require the change of consumption and production patterns in both developed and developing countries. Ten years later, one of the outcomes of Johannesburg World Summit on Sustainable Development (WSSD) was the recognition of the need for 10 years Framework of Programs on Sustainable Consumption and Production (10-YFP) to enhance SCP throughout the world. After that, the Rio+20 in June 2012 in Malaysia, once again discussed an effort and major step forward in achieving a sustainable future (UNCSD, 2012). Many of the previous studies shows consumption and environment are closely related (Fraj and Martinez, 2006; Mohamad and Teoh, 2006; Moisander, 2007; Li, 2011). Any changes in consumption patterns are likely to have strong implication on the health of the global environment (Galarraga et al., 2010; Zuhal et al., 2012, Krisnan, 2012). The issues of environment deterioration caused by the over consumption and utilization of natural resources from the consumers is always a concern from the public. With an increased in the social and political pressures, many firms embraced green marketing strategies and exploited these environmental issues as a source of competitive advantage. However, some of the greatest challenges faced by these firms include changes in consumer preferences, misgiving of green advertising claim, lack of consumer s awareness and knowledge on green products and the high cost invested in developing green products. Household purchase decisions are particularly important. Goods and services bought by consumers and the way they use them have a direct impact on air and water pollution, waste generation, habitat alteration and climate change (Ricky and Lorett, 2000, Tanner and Kast, 2003; Tan et al., 2011). 2013, Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 473

2 Currently in Malaysia, the environmental issue has received attention not only from the government but also from business sectors (Shila, 2012). The Malaysia market for environmental services, which barely existed a decade ago, has grown by percent a year. Awareness of the destruction of natural resources has raised the issue of environmental protection, which in turn has created ecofriendly consumption (Moisander, 2007). Energy efficiency products are one of the responses to concern for the environment. Since energy efficiency products are relatively new for Malaysia business, there are only few studies about the product and marketing in Malaysia. Thus it is imperative to understand consumer behavior towards energy efficiency products in Malaysia, where the trend is still new. Study in 2002 stated one of the crucial areas that reflect the changing consumption pattern is the demand for energy in Malaysia (ERA consumer Malaysia). Household electricity consumption has continued to grow with the increasing per capita income, resulting in the ownership of household appliances like air-conditioners, refrigerators, microwave ovens, washing machines and television sets (National Energy Balance, 2010). A study on household energy consumption in Johor Bahru, Malaysia found high ownership level of household appliances: almost all respondents own at least one of the first five items namely television (100%), refrigerator (99%), washing machine (96%), rice cooker (95%) and ceiling fan (93%). The changing role of women in society is another factor that influences the rising demand for electrical appliances (Malaysia Journal of Consumer and Family Economics, 1998). In the urban area, many women play a dual role as traditional housekeepers and wage earners to supplement the family income in order to cope with the rising cost of living. With limited time in hand, busy working women often rely on electrical gadgets to do some of their household chores like cooking, washing and cleaning. Micro studies among rural and low-cost housing shows the similar trend. In line with Agenda 21 above, the article is written to discuss how Malaysian consumers perceive environmental issues and to see whether they are willing to change some of their attitude and behavior to help achieve a small part of the very big agenda. This study is fundamental to discover how knowledge on environmental issues and social pressure relates to consumer s behavior. Thus this paper attempts to uncover how these two factors that cultivate the behavior of consumer towards purchasing energy efficient home appliances. The study framework is shows in figure 1 below. The objectives of the study are as the following: a. to analyze consumer s knowledge on environmental issues in relations to energy efficient products buying attitude in Malaysia. b. to analyze how social influence affect consumer s attitude toward buying energy efficient products in Malaysia. c. to understand the relationship between consumer attitude and energy efficient buying behavior. Environmental Knowledge Social influences H1 H2 Figure 1: Research Framework Based on the above objectives and Below are the study hypotheses: H1 consumers eco-literacy correlates positively with attitudes toward the environment. H2 consumers social influence correlates positively with attitudes toward the environment. H3 consumers attitude positive influence toward green purchasing behavior H4 Attitude H5 H3 Green Purchasing Behavior 2013, Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 474

3 H4 consumers eco-literacy correlates positively with green purchasing behavior. H5 consumers social influence correlates positively with green purchasing behavior. 2. Relevant Literature In the developed countries the consumption of green products has increased extensively over the last ten years. However, the total market share of green products still remains low. While most consumers have a positive attitude towards buying green products (Benton, 1994) they are often constrained by important barriers. One of these barriers is uncertainty as to the characteristics of green products itself. Several researchers have reported that greater awareness and additional knowledge concerning green products has a positive influence on attitudes towards buying behavior and levels of consumption (Tsen, Pang, et al., 2006; Aini, 2003). Study by D Souza, Taghian and Lamb (2006) mentioned environmental knowledge evolves in two forms; first, consumers have to be educated to understanding the impact of product to environment; and second, consumer s knowledge in the product itself being produced in an environmentally friendly way. Study by Nabsiah et al. (2011) amongst Penang s environmental volunteers found that the environmental knowledge having significant impact to green purchasing behavior of green volunteers in terms of their ranking of important. Environmental knowledge was defined as an individual general knowledge of facts, concepts, and relationships concerning the natural environment and its major ecosystems (Nik Abdul Rashid, 2009; Nabsiah 2011). Therefore, it involves public knowledge about the environment, key relationships concerning to environmental facets or impacts, an admiration of entire organism, and mutual conscientiousness for sustainable development. The customer s level of environmental knowledge about environmental issues, the available substitutes and solutions to these problems are another factor, which has at times proven to affect the consumer s behavior. Different with social influence which primarily consists of the impact of acting to persuade, convince or influence others for the purpose of having a specific effect. An important determinant of an individual s behavior is the influence of others (Bearden et al., 1989). As part of this process, social influences and physical structures within the environment develop and modify human expectations, beliefs and cognitive competencies. In addition, humans evoke different reactions from their social environment as a result of their physical characteristics, such as age, size, race, sex and physical attractiveness. The social influences of peers, family groups and influential bodies can convey information and activate emotional reactions through factors such as modeling, instruction and social persuasion (Bandura, 1986). Social environments such as family, friends and peer networks (normative susceptibility) strongly influence buying decisions that involve environmentally friendly products. 3.0 Methodology and data Data were collected in Bangi and Petaling Jaya (Selangor), via a survey in September Respondents was selected from users and non-users of energy efficient products numbering 120 were personally approached by face to face interview questionnaire, which took approximately twenty minutes to complete. The face to face interview offered one-on-one interactions with the consumers and provided an opportunity to explain some of the questions to respondents with low literacy levels. This method was vital to ensure high reliability and accuracy of the data collected. Using shopping mall intercept method, the respondents were identified at front door of major shopping malls in the city and the light rail transit stations. To fit with the scope of the study, Pearson correlation analysis was used in the data analysis. It is important to cover a small part of the descriptive analysis of concerning the income background in regard to both awareness and green purchasing behavior. 2013, Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 475

4 4.0 Result of the study Table 1 shows a detailed overview of the socio-demographic characteristic of the sample. From total sample analyzed, males and female are almost equal represented (49.2% and 50.8% respectively), while, the age between 35 years and 44 years as the largest group. The main household income group is between RM1,501 and RM3,000 (33.3%) followed by income less than RM1,500 (24.2%) which consider as vulnerable poor group of people in the urban area. In term of education level, 45.8% has attended to secondary and tertiary level of education. Data also shows more than half of the respondents were married. It represent as the sample of the study are people that are highly involve in purchasing decision since they having their own family and responsibility. Table 1: Socio-demographic characteristics of the sample (n=120). Demographics Frequency Percentage (%) Gender Profession Male female Marital status Single Married Government sector Public sector Government listed company (GLC) Independent Retired Age years years years years years 65 years and above Education Primary Secondary Tertiary Income (RM) per month Less than RM1,500 RM1,501 RM3,000 RM3,001 RM4,500 RM4,501 RM6,000 RM6,001 RM7,500 RM7,501 RM9,000 RM9,001 and above To explain consumer decision, this study was concerned with the knowledge of the consumer for the environmental issues. Table 2 present responses to the 11 items regarding consumer s knowledge about the issue of environment. Total mean shows as 5.11 and its mean majorities of the consumers are aware and have a good of environmental knowledge. Item 3 and 5 express the higher mean as both stated as 5.65 and 5.75 respectively. Item 3 statements as Everyone is responsible to protect the environment was shown consumers are aware about the important of environmental protection. While the statement 5 refers as It is essential to promote energy efficiency in Malaysia 2013, Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 476

5 demonstrations how consumer realize the important of energy conservation in Malaysia since most of the energy source are taking from fossil fuel which is are non-renewable resources. Table 2: Response to the statement about consumer s environmental knowledge (n=120). Statements Mean Most smokes in our big cities come from automobiles Some products pretend to be energy efficient just to charge higher prices. Everyone is responsible to protect the environment Government should enforce the environmental rules and regulations It is essential to promote energy efficiency in Malaysia. The most effective way to combat global climate change is to reduce energy consumption. The production of electricity from renewable sources such as solar, wind and biomass is an effective way to combat global climate change. The government does a lot of program to support energy conservation in Malaysia Malaysia's environmental problems are threatening our health. It is unwise for Malaysia to spend a vast amount of money on promoting environmental protection. Malaysia's environmental problems are worsening. 4 (3.3) (3.3) 3 (2.5) 44 (36.7) 3 (2.5) 5 (4.2) 0 1 (0.9) 3 (2.5) 6 (5.0) 14 (11.7) 4 (3.3) 8 (6.7) 5 (4.3) 4 (3.3) 10 (8.3) 15 (12.5) 5 (4.2) 7 (5.8) 14 (11.7) 17 (14.2) 14 (11.7) 9 (7.5) 13 (11.1) 13 (10.8) 15 (12.5) 23 (19.2) 8 (6.7) 9 (7.5) 13 (10.8) 20 (16.7) 24 (20.0) 29 (24.2) 17 (14.2) 22 (18.8) 26 (21.7) 21 (17.5) 29 (24.2) 17 (14.2) 18 (15.0) 30 (25.0) 78 (65.0) 65 (54.2) 87 (72.5) 63 (53.8) 91 (75.8) 74 (61.7) 72 (60.0) 46 (38.3) 81 (67.5) 28 (23.3) 56 (46.7) Total mean 5.11 Notes: 1 strongly disagree 4 somehow agree 2 disagree 5 agree 3 somehow disagree 6 strongly agree The overall correlation results in table 4 indicate that all three independent variables are significantly and positively correlated with dependent variable. The result reveals that consumer eco literacy is positively and significantly influences to Malaysian energy efficient products buying behavior (r=0.257, p=0.005), H5 is accepted. The correlation matrix also established the positive relationship of social influence with the consumer green purchasing behavior (r=0.374, p=0.001), thus H4 is also supported. For the third hypothesis, again significant and direct relationship found between consumer attitude and green purchasing behavior (r=0.268, p= 0.003). The result in table 3 reveal that the consumer ecoliteracy is positively relates with the consumer s attitude toward energy efficient products (r = 0.410, p= 0.001), thus hypothesis 1 is supported. This result is consistent with the previous study by Tsen and D Souza (2006) which shows the same directions. Social influence also found as positive relationship with consumer purchasing on energy efficient products. The result however reject the second hypothesis which shown the insignificant relationship between social pressure and consumer s attitude. In this situation refers as the attitude of consumers are moderate the relationship between consumers knowledge or ecoliteracy but not social influences. Social influences such families and friends shows not significant in influencing attitude toward the environment. Table 3: Pearson Correlation Results (Relationship between eco-literacy, social pressure and attitude) Variables Pearson correlation Sig. (2-tailed) 2013, Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 477

6 Consumer s eco-literacy 0.410** Consumer s social pressure ** Correlation is significant at the 0.01 level (2-tailed). Table 4: Pearson Correlation Results (Relationship between eco-literacy, social pressure and attitude with green purchasing behavior) Variables Pearson correlation Sig. (2-tailed) Consumer s eco-literacy 0.257** Consumer s social pressure 0.374** Consumer s attitude 0.268** ** Correlation is significant at the 0.01 level (2-tailed). 5. Conclusion Energy efficiency is an important means and initiative towards the development of sustainable energy and reducing the impact of energy sector on the environment. The government of Malaysia recognizes the benefit and importance of energy efficiency in the country and several plans and measures have been taken to ensure economic, energy and environment sustainability. This includes the drafting of National Energy Efficiency Master Plan which is in the process of implementation. From this study, it is important that the level of awareness and the consumer s eco-literacy must be enhanced and a culture of energy conservation must be developed for the initiative to gain further momentum. The outcome of the study will contribute to the energy conservation in Malaysia by making pragmatic policy recommendations that formulate strategies for addressing bottlenecks in accessing energy services by urban consumers which are facing with the high cost living. Understanding the consumer s knowledge and social pressure will provide invaluable insights into urban oriented market segment with new avenues for marketers thought into green marketing strategy. The result of this study was confirmed that is a positive relationship between consumer s eco-literacy, social pressure and attitudes with green purchasing behavior. Acknowledgement This paper benefits from funding of project high Centre of Excellence (HiCoE) of the Institute for Environment and Development (LESTARI), Universiti Kebangsaan Malaysia (Code: XX ) and Ministry of Energy, Green Technology and Water (KeTTHA) for which the author is very grateful. References Aini Mat Said, Fakhru'l-Razi Ahmadun, Laily Hj. Paim, Jariah Masud Environmental concerns, knowledge and practices gap among Malaysian teachers. International Journal of Sustainability in Higher Education, Vol. 4 Iss: 4, pp APEC, (2011) Asia Pacific Economic Cooperation, Peer Review on Energy Efficiency in Malaysia, report for the APEC Energy Working Group. Bandura, A. (1986), Social Foundations of Thought and Action: A Social Cognitive Theory, Prentice-Hall, Englewood Cliffs, NJ. Bearden, W.O., Netemeyer, R.C. and Teel, J.E. (1989), Measurement of consumer susceptibility to interpersonal influence, The Journal of Consumer Research, Vol. 15 No. 4, pp , Langkawi, Malaysia. (e-isbn ). Organized by WorldConferences.net 478

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