Influence of sustainability on the purchase decision of products

Eylem Bulut, Berkin Yildirim, Amélia Brandão, Bruno Miguel Vieira, Victor Tavares

Abstract


Purpose: This study discusses the question of whether the aspect of sustainability plays a role in the consumer’s purchase decision about green purchase and behavior toward green products.

Methodology: Mixed methods research (combining elements of quantitative research and qualitative research) were used to answer the research question.

Findings: It was found that price awareness and brand awareness of customers have a great influence on their buying behavior for the sustainable product. Price awareness is the strongest element that influences customers' buying behavior. The results of the study show that a person who is aware of environmental concerns and has brand awareness of sustainable products has a higher preference in sustainable buying behavior.

Originality: This study indicates how customers will tend to buy green products and the way they are going to make decisions while purchasing a green product that they think is sustainable on purchase decisions and also eco-friendly. Environment friendly products are found to be more reasonable by the customers to respect the environment and the role of sustainability in the purchase decision.

This behavior that showed by customers found out that they are more conscious and careful about environment and ecological issues.

Keywords: Sustainability, green labels, green marketing.


Full Text:

PDF

References


Adigiconsult GmbH. (n.d.). Generation Silent, Baby Boomer, X, Y, Z oder Alpha. https://www.adigiconsult.ch/glossar/generation-silent-baby-boomer-x-y-me-millennials-z-alpha/

Ahmed, A. (2019, September 4). Benefit of Studying Consumer Behavior. https://bizfluent.com/facts-5949659-benefit-studying-consumer-behaviour.html

Arora, N. (n.d.). Green Marketing in India: A Road Ahead. https://www.academia.edu/11328616/Green_Marketing_in_India_A_Road_Ahead

Barks, A. (n.d.). One-on-one interview guide. https://www.predictiveindex.com/blog/how-to-conduct-a-one-on-one-interview-advantages-questions-to-ask-and-traits-to-look-for/

Chen, T. B., & Chai, L. T. (2010). Attitude towards the Environment and Green Products: Consumers’ Perspective. Management Science and Engineering, 4(2), 27–39. www.cscanada.org

Dey, M. K., and Wang, C. (2012). Return spread and liquidity: evidence from Hong Kong ADRs. Research in international business and finance, 26(2), 164-180. https://doi.org/ 10.1016/j.ribaf.2011.10.002

Díaz, A., and Escribano, A. (2020). Measuring the multi-faceted dimension of liquidity in financial markets: A literature review. Research in International Business and Finance, 51, 101079. https://doi.org/ 10.1016/j.ribaf.2019.101079

Dowling, G. and Moran, P. (2012). Corporate reputations: Built in or bolted on?. California Management Review, 54 (2), 25–42. https://doi.org/10.1525/cmr.2012.54.2.25

D’Souza, C., Taghian, M., & Lamb, P. (2006). An empirical study on the influence of environmental labels on consumers. Corporate Communications, 11(2), 162–173. https://doi.org/10.1108/13563280610661697

Eneizan, B., Mohamad Alhamad, A., Bin.Mat Junoh, M. Z., & Binti Tunku Ahmad, T. S. (2019). Green Marketing Strategies: Theoretical Approach. American Journal of Economics and Business Management, 2(2), 77–94. https://doi.org/10.31150/AJEBM.VOL2.ISS2.69

Eckert, C.(2017). Corporate reputation and reputation risk. Journal of Risk Finance, 18 (2), 145-158. https://doi.org/10.1108/JRF-06-2016-0075

Fahmy El-Sabaa, F. M., Mohamed, A. A., & Zakria, S. K. (2017). The Qualitative and Quantitative Methods of Kovalevskys Case. Journal of Applied Mathematics and Physics, 05(09), 1837–1854. https://doi.org/10.4236/JAMP.2017.59155

Flatt, S. J. and Kowalczyk, S. J. (2011). Corporate Reputation Persistence and Its Diminishing Returns. International Journal of Business and Social Science, 2 (19), 1.

Florackis, C., Gregoriou, A., and Kostakis, A. (2011). Trading frequency and asset pricing on the London Stock Exchange: Evidence from a new price impact ratio. Journal of Banking & Finance, 35 (12), 3335-3350. https://doi.org/10.1016/j.jbankfin.2011.05.014

Floreddu, P., Cabiddu, F. and Evaristo, R. (2014). Inside your social media ring: How to optimize online corporate reputation. Business Horizons, 54, 737-745. http://dx.doi.org/10.1016/j.bushor.2014.07.007

Fombrun, C. J., Gardberg, N. A. and Sever, J. M. (2000). The Reputation QuotientSM: A multi-stakeholder measure of corporate reputation. The Journal of Brand Management, 7 (4), 241-255. https://doi.org/10.1057/bm.2000.10

Fombrun, C. and Shanley, M. (1990). What’s in a Name? Reputation Building and Corporate Strategy. Academy of Management Journal, 33 (2), 233–258. http://doi.org/10.2307/256324

Fombrun, C. and Van Riel, C. (1998). The reputational Landscape. Corporate Review, 1 (1), 1-16. https://doi.org/10.1057/palgrave.crr.1540008

Godfrey, P., Merril, C. and Hansen, J. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal, 30 (4), 425-445. https://doi.org/10.1002/smj.750

Gregoriou, A., and Nguyen, N. D. (2010). Stock liquidity and investment opportunities: New evidence from FTSE 100 index deletions. Journal of International Financial Markets, Institutions and Money, 20(3), 267-274. https://doi.org/10.1016/j.intfin.2010.03.005

Hair, J. F., Black W. C, Babin B. J., & Anderson, R. E. (2014). Multivariate Data Analysis. www.pearsoned.co.uk

Hammond, S. and Slocum, J. (1996). The impact of prior firm financial performance on subsequent corporate reputation. Journal of Business Ethics, 15 (2), 159–165. https://doi.org/10.1007/BF00705584

Hua, J., Peng, L., Schwartz, R. A., and Alan, N. S. (2020). Resiliency and stock returns. The Review of Financial Studies, 33 (2), 747-782. https://doi.org/10.1093/rfs/hhz048

Joshi, Y., & Rahman, Z. (2015). Factors Affecting Green Purchase Behaviour and Future Research Directions. International Strategic Management Review, 3(1–2), 128–143. https://doi.org/10.1016/J.ISM.2015.04.001

Kang, W., and Zhang, H. (2014). Measuring liquidity in emerging markets. Pacific-Basin Finance Journal, 27, 49-71. https://doi.org/10.1016/j.pacfin.2014.02.001

Kasasa. (2021, June 7). Boomers, Gen X, Gen Y, Gen Z, and Gen A. https://www.kasasa.com/exchange/articles/generations/gen-x-gen-y-gen-z

Koch, J. & Cebula, R. (1994). In Search of Excellent Management. Journal of Management Studies, 31 (5), 681-699. https://doi.org/10.1111/j.1467-6486.1994.tb00634.x

Le, H., and Gregoriou, A. (2020). How do you capture liquidity? A review of the literature on low‐frequency stock liquidity. Journal of Economic Surveys, 34(5), 1170- 1186. https://doi.org/ 10.1111/joes.12385

Levine, R. and Zervos, S. (1998) Banks, stock markets and economic growth. American Economic Review 37(3): 537–558

Lin, Z., and Vandell, K. D. (2007). Illiquidity and pricing biases in the real estate market. Real Estate Economics, 35(3), 291-330. https://doi.org/10.1111/j.1540-6229.2007.00191.x

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2012). Basic Statistics for Busineess and Economics. 1–752.

Mann, S.V. and Ramanlal, P. (1996). The Dealers’ Price/Size Quote Market Liquidity. Journal of Financial Research, 19 (2), 243-271. https://doi.org/10.1111/j.1475-6803.1996.tb00596.x

Mogaji, E., Adeola, O., Adisa, I., Hinson, R. E., Mukonza, C., & Can Kirgiz, A. (2022). Green Marketing in Emerging Economies A Communications Perspective PALGRAVE STUDIES OF MARKETING IN EMERGING ECONOMIES. http://www.palgrave.com/gp/series/16591

Naik, P., Poornima, B. G., and Reddy, Y. V. (2020). Measuring liquidity in Indian stock market: A dimensional perspective. PloS one, 15(9), e0238718. https://doi.org/10.1371/journal.pone.0238718

OuYang, Z., Xu, J., Wei, J. and Liu, Y. (2017). Information asymmetry and investor reaction to corporate crisis: Media Reputation as a Stock Market Signal. Journal of Media Economics, 30 (2), 82–95. https://doi.org/10.1080/08997764.2017.1364256

Pagano, M. (1989). Trading Volume and Asset Liquidity. The Quarterly Journal of Economics, 104 (2), 255–274. https://doi.org/0.2307/2937847

Peng, L. (2001). Trading takes time (No. ysm234). Yale School of Management.

Peterson, D. (2018). Enhancing corporate reputation through corporate philanthropy. Journal of Strategy and Management, 11(1), 18-32. https://doi.org/10.1108/JSMA-10-2016-0068

Pfarrer, M. D., Pollock, T. G. and Rindova, V. P. (2010). A tale of two assets: The effects of firm reputation and earnings surprises on investors’ reactions. Academy of Management Journal, 53, 1131–1152. https://doi.org/10.5465/amj.2010.54533222

Polonsky, M. J. (1994). An Introduction To Green Marketing. Electronic Green Journal, 1(2). https://doi.org/10.5070/g31210177

Roberts, P. W. and Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal, 23, 1077–93. https://doi.org/10.1002/smj.274

Roscoe, J.T. (1975). Fundamentals Research Statistics for Behavioural Sciences. Harcourt College Publishers.

Rouwenhorst, K. G. (1999). Local return factors and turnover in emerging stock markets. Journal of finance (Wiley-Blackwell), 54(4), 1439-1464.

Shrum, L.J., McCartey John A., & Lowrey, T. M. (n.d.). Buyer Characteristics of the Green Consumer and Their Implications for Advertising Strategy. http://www.tandfonline.com/doi/abs/10.1080/00913367.2001.10673636

Simões, C., Stancu, A., & Grigore, G. (2022). Corporate Responsibility, Sustainability and Markets: How Ethical Organizations and Consumers Shape. https://link.springer.com/bookseries/15192

Suki, N. M. (2013). Green awareness effects on consumers’ purchasing decision: Some insights from Malaysia. IJAPS, 9(2).

Szegedi, K. (2020). Shifting sands: How consumer behaviour is embracing sustainability. Https://Www2.Deloitte.Com/Ch/En/Pages/Consumer-Business/Articles/Shifting-Sands-Sustainable-Consumer.Html. Accessed on January 28, 2022.

https://www2.deloitte.com/ch/en/pages/consumer-business/articles/shifting-sands-sustainable-consumer.html..html

Tighe, D. (2020). Influence of sustainability on product purchase worldwide in 2017, by product category. https://www.statista.com/statistics/1010879/influence-of-sustainability-on-product-purchase-by-category-worldwide/

Sánchez, G. and Vega, M. (2018). Corporate reputation and firms' performance: Evidence from Spain. Corporate Social Responsibility and Environmental Management, 25 (6), 1231-1245. https://doi.org/10.1002/csr.1634

Tversky, A. and Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5 (2), 207-232. https://doi.org/10.1016/0010-0285(73)90033-9.

Veh, A., Göbel, M., and Vogel, R. (2019). Corporate reputation in management research: a review of the literature and assessment of the concept. Business Research, 12, 315–353. https://doi.org/10.1007/s40685-018-0080-4.

Velnampy, T. and Niresh, J. A. (2012). The Relationship between Capital Structure and Profitability. Global Journal of Management and Business Research, 12(13), 67-73. https://journalofbusiness.org/index.php/GJMBR/article/view/766

Vergin, R. and Qoronfleh, M. (1998). Corporate reputation and the stock market. Business Horizons, 41 (1), 19-26. https://doi.org/10.1016/S0007-6813(98)90060-X

Weigelt, K. and Camerer, C. (1988). Reputation and corporate strategy: A review of recent theory and applications. Strategic Management Journal, 9(5), 443–454. http://doi.org/10.1002/smj.4250090505

Žabkar, M. and Arslanagić-Kalajdži, M. (2013). The impact of corporate reputation and information sharing on value creation for organizational customers. South East European Journal of Economics and Business, 8(2), 42–52. doi: 10.2478/jeb-2013-0009




Copyright (c) 2022 European Journal of Applied Business and Management

 

European Journal of Applied Business and Management

ISSN: 2183-5594

DOI: https://doi.org/10.58869/EJABM

Indexing:

EBSCO | CROSSREF | GOOGLE SCHOLAR | LATINDEX | DRJI | ICI JOURNALS MASTER | REDIB | MIAR