Kennesaw State University DigitalCommons@Kennesaw State University Dissertations, Theses and Capstone Projects Spring 2014 An Investigation of Sustainable Product Purchase Behavior: A Social Cognitive Perspective of Consumer Action Keith Edmund Ferguson Kennesaw State University Follow this and additional works at: http://digitalcommons.kennesaw.edu/etd Part of the Marketing Commons Recommended Citation Ferguson, Keith Edmund, "An Investigation of Sustainable Product Purchase Behavior: A Social Cognitive Perspective of Consumer Action" (2014). Dissertations, Theses and Capstone Projects. Paper 602. This Dissertation is brought to you for free and open access by DigitalCommons@Kennesaw State University. It has been accepted for inclusion in Dissertations, Theses and Capstone Projects by an authorized administrator of DigitalCommons@Kennesaw State University. AN INVESTIGATION OF SUSTAINABLE PRODUCT PURCHASE BEHAVIOR: A SOCIAL COGNITIVE PERSPECTIVE OF CONSUMER ACTION by Keith Edmund Ferguson A Dissertation Presented in Partial Fulfillment of Requirements for the Degree of Doctor of Business Administration In the Coles College of Business Kennesaw State University Kennesaw, GA 2014 Copyright by Keith Edmund Ferguson 2013 DEDICATION I want to dedicate this work to the constant love and support of my wife Maureen and my two lovely daughter‘s ‒ Lauren and Delainey. Their understanding of my traveling to Georgia, the inability to attend all functions, and encouragement made the pursuit of my D.B.A. possible. I would also like to dedicate this work to my Brother Kevin who passed away unexpectedly a month before starting at Kennesaw. His memory and love will not be missed and I am sorry I could not share the excitement of this research with him. In addition, I want to dedicate this paper to my parents for the love and support they have provided me all my life. Their belief in me gave me the courage to pursue this dream. Finally, I want to dedicate this research toward making our planet a better place for future generations with the hope that it will inspire others to investigate the necessity toward finding new ways to encourage purchasing sustainable products. iv ACKNOWLEDGEMENTS I want to acknowledge the mentorship, unselfish gift of their time, and high expectations of my committee. Their guidance and support allowed me to complete this journey and realize what the expectations are to produce quality research. Joe Hair is a mentor, friend, and true global scholar. The accessibility he allowed me to himself is a priceless gift. He is one of a kind and I appreciate his determination and guidance. Vicky Crittenden gave me a glimpse into what a top researcher in marketing is all about. Her attention to detail, prompt responses to questions, and guidance is very much appreciated. Armen Tashchian provided the final touches that completed this research. His comments and suggestions allowed this research to be more robust and richer. I also want to acknowledge the friendship and support of David Williams. David and I were teamed up the first day of class and have developed a brotherly bond ever since. I appreciate David‘s encouragement and friendship that helped me to graduate from the KSU D.B.A program. I finally want to acknowledge my family and adopted family for their support ‒ the Thelen, Davis, and Williams families provided a soft bed, plenty of laughs, and great meals. v ABSTRACT AN INVESTIGATION OF SUSTAINABLE PRODUCT PURCHASE BEHAVIOR: A SOCIAL COGNITIVE PERSPECTIVE OF CONSUMER ACTION by Keith Edmund Ferguson Environmentally friendly products have been available since the 1970s receiving both praise and skepticism on the part of consumers. More recently, product focus has shifted towards a product‘s social, economic, and environmental concerns (sustainable products). While consumers admit they would buy sustainable products, this behavior is currently not occurring at the point of purchase. This research contributes to the existing literature by further exploring why a consumer‘s likelihood to purchase sustainable products is not translated into actual sales. Based on an extensive review of the extant literature a theoretical model was developed and tested using an online survey distributed to employees from a Mid-Western community college. The results will be analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The study contributes to the literature by answering calls from Henry (2009) to use social cognitive theory (Bandura, 1986) and Grant, Franklin, and Langford (2002) to use the Self-Reflection and Insight Scale in a research realm outside of psychology. Moreover, this research tests eco-labels as a antecedent of willingness-to-pay as called for by Laroche, Bergeron, and Barbaro-Forleo (2001). Other contributions of this study include extending the research examining sustainable consumption and using self-efficacy as a mediator. In summary, this research tests a theoretical model to gain insights into the factors influencing vi likelihood to purchase sustainable products. Overall, sustainability perceptions are strong predictors of likelihood to purchase sustainable products, explaining 63% of the variance. Keywords: Sustainability, ecologically conscious consumer, willingness-to-pay, likelihood to purchase, and sustainable products. vii TABLE OF CONTENTS Title Page…………………………………………………………................i Copyright Page……………………………………………………………...ii Signature Page………………………………………………………………iii Dedications…………………………………………………………………iv Acknowledgements………………………………………………………...v Abstract……………………………………………………………………..vi Table of Contents…………………………………………………………...viii Chapter 1-Introduction……………………………………………………...1 Motivation for this research…………………………………………………1 The Origins of Sustainability………………………………………………..3 The Conceptual Model……………………………………………………...4 Theoretical Foundation of this Study………………………………………10 Research Objectives………………………………………………………...11 Organization of the study…………………………………………………...12 Chapter 2-Literature Review………………………………………………..14 Overview……………………………………………………………………14 The Theoretical Model to Be Used For This Study………………………...19 Development of the Research Hypotheses………………………………….20 How the Constructs will be measured………………………………………21 Ecologically Conscious Consumers .........................................................22 Ecologically conscious consumer behavior…………………………23 Psychographics……………………………………………………...24 Self-Reflection……………………………………………………...25 viii Willingness-to-Pay for Sustainable Products……………………………26 Defaults …………………………….................................................27 Attitudes……………………………………………………………29 Values………………………………………………………………31 Environmental knowledge………………………………………….34 Eco-literacy……………………………………………………..36 Eco-labels……………………………………………………….37 Sustainable Consumption……………………………………………….40 Recycling frequency………………………………………………...42 Consumption reduction……………………………………………..44 Waste reduction……………………………………………………..45 Consumptions levels………………………………………………...47 Self-Efficacy………………………………………………………..49 Dependent Variable: Likelihood to Purchase Sustainable Products……….51 Chapter 3-Methodology…………………………………………………….54 Independent variables…………………………………………………...59 Self-Efficacy as a Mediator……………………………………………..72 Dependent Variables: Likelihood to Pay for Sustainable Products…….73 Questionnaire Design and Development………………………………...74 Qualitative Assessment of the Questionnaire……………………………85 Quantitative Assessment of the Questionnaire…………………………..88 Findings of an exploratory factor analysis of the initial questionnaire…..89 Description of the final questionnaire…………………………………....90 Chapter 4-Results…………………………………………………………....91 PLS-SEM Measurement Model…………………………………………94 Results of the Hypothesis Tests…………………………………………102 ix Goodness of Fit Criteria of the Predictive Model……………………….108 Chapter 5-Conclusions, Limitations, and Future Research…………………111 The Objectives of the Research as Supported by the Findings………….111 Managerial Implications…………………………………………………114 Limitations and Future Research………………………………………..116 References…………………………………………………………………..119 Appendix……………………………………………………………………138 x LIST OF TABLES Table 1 Summarizing the Operationalizing of the Ecologically Conscious Consumer………………………………………………...61 2 Summarizing the Operationalizing of Willingness-to-pay…………..64 3 Summarizing the Operationalizing of Sustainable Consumption………………………………………………………..68 4 Summarizing the Operationalizing of Self-Efficacy……………….72 5 Summarizing the Operationalizing of Likelihood to Pay for Sustainable Products……………………………………….74 6 Constructs and Indicators ‒ Initial and Final Numbers……………..97 7 Convergent Validity and Reliability………………………………...98 8 Fornell-Larcker Analysis ‒ Assessment of Discriminant Validity….99 9 Theoretical Model Relationships……………………………………100 10 Results of the Hypotheses Tests…………………………………….102 11 Goodness of Fit Criteria……………………………………………..109 xi LIST OF APPENDICES Appendix A Conceptual Framework……………………………………………..138 B Theoretical Model…………………………………………………..139 C IRB Letters of Approval…………………………………................140 D Alternative Theoretical Model……………………………………...142 E Summary of the Path Coefficients and Hypothesis Testing of the New Model…………………………………………………...143 F Summary of Key Literature………………………………………....144 G Initial Survey………………………………………………………..154 H Final Survey………………………………………………………...168 I Final Survey Sample Size Characteristics…………………………..177 J Criterion to Distinguish Reflective versus Formative Constructs…..179 K Sample Size Requirements for PLS-SEM…………………………..180