The Motivations of Consumers Willingness-To-Buy towards Socially Responsible. Products: An Application of the Theory of Planned Behavior.

Transcription

1 The Motivations of Consumers Willingness-To-Buy towards Socially Responsible Products: An Application of the Theory of Planned Behavior Thesis Presented in Partial Fulfillment of the Requirements for the Degree Master of Science in the Graduate School of the Ohio State University By Jia XU, B. Eng. Graduate Program in Human Ecology The Ohio State University 2010 Thesis Committee: Leslie Stoel, Adviser Margaret Binkley Jae Eun Chung

2 Copyright 2010 by Jia XU

3 Abstract Previous research supported the predictive effectiveness of the Theory of Planned Behavior (TPB) model, and extended it to explain consumers behaviors in various social friendly behavioral settings. However, little research has used a psychosocial perspective to examine the predictors of consumers purchase intentions towards socially responsible products. The present study provides an empirical application of the TPB model to increase understanding of socially responsible purchasing. Based on a literature review, in this study I add personal moral norms as a predictor of purchase intention, along with the other three predictors in the original TPB model. Based on the results of an online survey of 198 college students, the original TPB model and the extended model are tested and compared regarding the predictive power for purchasing intention. The relationships of the personal norm to other volitional variables, i.e. attitude and subjective norm, are also discussed, in order to have a better understanding of the comprehensive role of personal norms in a normative-related context. ii

4 Acknowledgments I would like to express my gratitude to my adviser Prof. Leslie Stoel, and to my committee members who gave me the opportunity to complete this thesis. I also want to thank Hua and my other officemates, who inspired me and encouraged me throughout the whole process. iii

5 Vita 2002 B. Eng. Textile Engineering, Donghua University 2004 to Sales Manager, Nijiaxiang Group 2004 to Owner/Sales Manager, Joytex (Shanghai) Co., Ltd Fabric, Color and Wash Intern, Express LLC 2008 to present... Graduate Teaching Associate, Department of Consumer Science, The Ohio State University Major Field: Human Ecology Fields of Study iv

6 Table of Contents Abstract...ii Acknowledgments......iii Vita. iv List of Tables vii List of Figures viii Introduction Chapter 1: List of Key Terms... 7 Chapter 2: Literature Review....9 Chapter 3: Research Methodology.20 Chapter 4: Statistical Analysis and Results 29 Chapter 5: Discussion and Conclusion..39 References..50 Appendix A: Regression Analysis Components of Original TPB.58 Appendix B: Regression Analysis Components of Modified TPB 60 Appendix C: Simple Mediation Relationship Test 1.62 Appendix D: Simple Mediation Relationship Test 2.63 Appendix E: Invitation Letter for Main Survey.64 Appendix F: Questionnaire of Main Survey..66 v

7 Appendix G: IRB Approval of Exempt Determination: Pilot Study 71 Appendix H: IRB Approval of Exempt Determination: Main Study 72 vi

8 List of Tables Table 1. Most frequently mentioned key words expressing feelings related to SPRs purchasing..21 Table 2. Measurements in main survey..28 Table 3. Output of factor analysis..30 Table 4. Reliability of the measures Table 5. Means and SDs of variables Table 6. Means of PBC-difficulty and PBC-controllability Table 7. Correlation among constructs Table 8. Steps of regression predicting purchase intention to SRPs vii

9 List of Figures Figure 1. Conceptual model...17 Figure 2. Gender comparison of participants in main survey 24 Figure 3. Simple mediation relation...36 viii

10 Introduction Corporate Social Responsibility (CSR) is a widely used business strategy in customer-oriented markets. Numerous companies use various socially responsible strategies to attract more consumers, by triggering their compassion for various social causes. Some firms altruistically donate a portion of their profit to charities (direct donation). Others cooperate with non-profit organizations (NPOs) to raise money for the NPOs and simultaneously to promote the company s product or service, which is recognized as Cause Related Marketing (CRM). Many consumers perceive and respond to these socially responsible signals sent through advertisements, public media, and WOM. If these signals are appropriately comprehended, consumers will probably purchase specific cause-related products to reward a company s socially responsible behavior (Becker-Olsen, Cudmore, & Hill 2006; Creyer, & Ross 1997; Lichtenstein, Drumwright, & Bridgette 2004). Numerous empirical and experimental studies have demonstrated consumers behavior changes that are a result of CSR initiatives (Madrigal & Boush 2008; Becker-Olsen, et al. 2006; Lee 2008; Gupta & Pirsch 2006; Mohr & Webb 2005). Because of the widely held belief that some consumers respond to socially responsible initiatives, companies use CSR initiatives as a way to differentiate themselves from competitors (Westberg 2004, Klein & Dawar 2004, Steenhaut & Kenhove 2006). Studies examining consumers purchase decision making processes in relation to CSR initiatives are mainly found in two disciplines. From the marketers point of view, studies 1

11 have focused on the operational strategies of CSR initiatives, and their impact on consumers. Another stream of studies was from the psychosocial perspective, and has examined the formation of consumers mental frameworks in the context of CSR initiatives. From the operational strategic perspective, many researchers have empirically investigated the impact of CSR initiatives in various settings (Finch 2005, Steenhaut & Kenhove 2006, Tsakiridou, Tsioumanis, Papastefanou & Mattas 2007, Becchetti, Solferino & Tessitore 2005, Cornwell & Coote 2005, Madrigal & Boush 2008). Some researchers and marketers found evidence that CSR strategies did not always work if the product-cause fit was low (Lee, 2008, Becker-Olsen et al. 2006, Pracejus & Olsen 2004). In addition, consumers might punish companies if the perceived motive of a CSR initiative was merely to maximize company profit (Westberg, 2004, Creyer & Ross 1997, Becker-Olsen et al. 2006). Overall, the research evidence indicated that market responses to CSR strategies shared certain commonalities. Consumers would not blindly accept CSR initiatives, and responded differently based on their perceptions of the CSR motivations (Becker-Olsen et al. 2006), e.g. the type of cause-related marketing (Lee 2008) and the fit of the product to the cause (Pracejus & Olsen 2004). The primary goal of CSR is to differentiate a company from its competitors and build a clear identity in the market (Westberg 2004). When a company launches a socially responsible initiative, either to support a socially friendly campaign or to raise money for an NPO, the initiative has an impact on targeted customers. This impact is both the purpose and the outcome of any cause-related marketing. But how does a consumer make his/her decision about socially responsible products? And, taking a broader point of view, 2

12 what elements motivate consumers when they make ethical decisions? The body of research on consumers ethical decisions from the social psychological perspective is substantial (Penz & Stöttinger 2005, Tarkiainen & Sundqvist 2005, Arvola et al. 2008, McEachern, Schroder, Willock, Whitelock, Mason 2007, Robinson & Smith 2002). Some researchers studied consumers purchase intentions in the face of different ethical stimuli. For instance, across four studies, Irwin and Naylor (2009) demonstrated that consumers placed more weight on corporate ethical attributes, such as labor practices and animal testing, when excluding alternatives from their consideration set than when including alternative products in their consideration process. Other studies covered a diverse set of product categories related to ethical issues. Consumers ethical consideration of food products, for example, has been a hot topic for a long time. In studies about the consumption of organic food, researchers have expanded their initial considerations of health and food safety concerns to normative components, e.g. subjective norms (Tarkiainen & Sundqvist 2005) and positive moral concerns (Arvola et al. 2008). Other studies examined psychosocial and demographic variables associated with consumer intention to purchase sustainably produced foods (McEachern et al. 2007, Robinson & Smith 2002). In addition to the prevalent topic of ethical food choices, some researchers extended their interests in ethical behavior to the study of non-food products. Shaw et al. (2006) examined volitional elements in consumer decisions to avoid sweatshop clothing. Similarly, the study conducted by Penz and Stöttinger (2005) offered an explanatory model for the volitional purchase of counterfeit products. Problem Statement In previous psychosocial studies on ethical consumption, models based on the theory 3

13 of planned behavior (TPB) (Ajzen & Fishbein, 1980) have dominated theoretical frameworks. The TPB model regards intention as the most proximal psychological determinant of behavior. Intention, in turn, is jointly determined by attitude, subjective norms, and perceived behavior control (Manstead 2000, Tarkiainen & Sundquist 2005, Mahon, Cowan & McCarthy 2006, Davies, Foxall & Pallister 2002). Given that consumers behave differently when making ethical decisions, other prosocial behavior studies indicated that personal-related constructs should be included to help explain individual differences (Bamberg & Möser 2007). Personal normative concerns (Dean, Raats & Shepherd 2008), self-identity (Smith et al. 2007), and moral obligations were added in previous studies attempting to develop a better understanding of the attitude-intention relationship under the ethical consumption domain (Davies et al. 2002, Dean et al. 2008). Evidence of the effects of personal norms on behavioral intention with a moral or ethical dimension has been addressed by previous studies (Manstead 2000, Conner & Armitage 1998, McMillan, Higgins & Conner 2005). Unfortunately, in the domain of ethical consumption little research has examined the role of the personal norms in the context of socially responsible products in general. Further, the existing research is still not very informative in understanding the underlying relationships among intention determinants (Bamberg & Möser 2007). Purpose Thus, the purpose of the present study is to examine the effect of personal norms on consumers willingness to purchase cause-related products, using an extended version of the Theory of Planned Behavior (TPB) model. The TPB (Ajzen, 1991) is acknowledged 4

14 as an expedient approach in the context of studying behaviors. The original TPB model integrated three interdependent variables -- attitude, subjective norms, and perceived behavioral control -- as antecedents of behavioral intention. Considering the present research context in the purchase of ethical products, personal norms, meaning the individual s perceived moral obligation and moral contribution, is integrated as an antecedent of intention along with the other three predictors in the original TPB model. This additional variable provides a more comprehensive view of consumer preference in the face of purchasing socially responsible products (Dean et al. 2008, Godin, Conner & Sheeran 2005). Significance A broad concept of CSR includes four interrelated sub-components: economics, law, ethics, and philanthropy (Fisman, Heal & Nair 2005). Some CSR actions are mandated by law, while others are spontaneously initiated by companies that hope to build a positive image among stakeholders. In Fisman et al s (2005) typology, customer-oriented CSR actions or activities are visible CSRs and only have a direct impact on the firm s final customers. It is difficult to assess accurately the amount of money companies spend on CSR activities, but the huge size of the business can be perceived by looking at the amount of money companies spend on sponsorship (a type of visible CSR initiative) alone. According to the IEG Sponsorship Report (Chicago), over $1.44 billion was spent on sponsorship in 2007, and sponsorship dollars are rising at a dramatic rate (Lee 2008). Further, according to report of Past. Present. Future. The 25th Anniversary of Cause Marketing (Cone 2008), even in the economic downturn, 52% of American consumers thought companies should not decrease their financial support of social and 5

15 environmental causes and NPOs. The 2009 Consumer Environmental Survey (Cone 2009) indicated that, while 55% of Americans declared that their interests in the environment had not changed compared to one year ago, 35% show a rising interest compared to last year. Hence, it is worthwhile from both a corporate and consumer perspective to examine the formation of purchase intention in the context of ethical purchase decisions. An examination from the psychosocial perspective will increase knowledge in both the academic and industrial domains. Contribution The present study, which uses the TPB model to explain consumers socially responsible purchasing, contributes empirical results to the academic literature and practical implications to the industrial realm. From an academic perspective, the study contributes to the body of empirical applications of the TPB model, specifically in the context of socially responsible product patronage. It also expands the model by including an additional normative-related variable, personal norms, to examine its relationship with other volitional variables, i.e. attitude and subjective norms. The results of the study provide empirical evidence for the utility of psychosocial variables as predictors of prosocial behavior. Understanding the motivation underlying consumers socially responsible purchases is also important for marketers who want to upgrade brand image and expand revenue by implementing appropriate CSR initiatives. The present study will depict a model of the consumer s prosocial purchasing, which will help marketing managers have a better understanding of the consumer. Higher profits or sales volumes might be expected if appropriate, strategic socially responsible initiatives are offered to the target market. 6

16 Chapter 1 List of Key Terms Attitude is the overall evaluation of the outcomes of purchasing socially responsible products. Cause-related Marketing (CRM) is a marketing strategy in which companies collaborate with non-profit organizations or other charity groups by selling cause-related products. Partial profits go to the supported cause. Corporate Social Responsibility (CSR) refers to a company s activity regarding its responsiveness to its perceived societal obligations. A Nonprofit organization (NPO) is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Perceived Behavioral Control (PBC) refers to a subjective degree of control over the performance of a behavior. Personal Norms are defined by personal normative beliefs and reflect personal feelings of responsibility to perform or reject certain behavior. Socially Responsible Products (SRPs) or Prosocial Products are products which are produced or sold by companies sponsoring or supporting certain non-profit groups or social causes. These products will have a clear label or slogan on the package which indicates the non-profit group or cause. Socially Responsible Purchasing refers to consumers purchasing of cause-related products as a reward for CSR. 7

17 Subjective Norm refers to the perceived social pressure to perform or not to perform a given behavior. The Theory of Planned Behavior (TPB) assumes that behavioral intention predicts actual behavior, while that behavioral intention is determined by three components: attitude, subjective norm, and perceived behavioral control. 8

18 Chapter 2: Literature Review In this chapter, the literature review covers two major research streams. First, it reviews previous studies about the impact of Corporate Social Responsibility (CSR) on consumer behavior. Some influential variables, e.x. product-cause fit and perception of a company s motivations, will be investigated to illustrate how they influence consumers attitudes and purchase intention. Then, previous studies investigating ethical behaviors using the theoretical framework of the TPB model are reviewed, to reveal predictors of consumers purchase intention. The original TPB variables are covered, as well as personal norms, which is a potential predictor of behavioral intention in ethical or moral contexts (Mastead 2000, McMillan et al. 2005). Five hypotheses will be presented based on the literature reviewed. CSR and Consumer Behavior The motive driving CSR initiatives has evolved from being initially altruistic to being ultimately beneficial to consumers and companies. Traditionally, the initial motive for CSR was acknowledged to be purely altruistic, and companies usually showed their social responsibility by donating to charities or NPOs (Lee 2008). As CSR initiatives became increasingly popular, however, many companies utilized the CSR concept to develop various programs. Cause-related marketing (CRM) has been a widely used CSR strategy in recent years. CRM is recognized as a philanthropic strategy which is designed to achieve business goals through support of a cause or charity (Westberg 2004, Lee 9

19 2008). The first publicized CRM case was launched by American Express in 1983, for the Statue of Liberty Restoration project. The outcome of this experimental campaign was impressive. American Express not only collected $1.7 million for the project, but also had a 28 percent increase in the number of new credit cards issued (Lee 2008). Since then, many other corporations have achieved similar triumphs. Accordingly, the purpose of CRM is not merely to support altruistic causes but also to create revenues for the company while covering the interests of all of the stakeholders. Another commonly used CSR strategy is sponsorship. The underlying goal of sponsorship is to influence consumers preference by building an association between the brand and a sponsored event or organization which targets consumer values (Westberg 2004). Other CSR activities, such as fair trade, ethical conduct, donations, or public relationships, are all effective weapons for marketers to differentiate and create a unique brand image to influence consumers purchase behavior (Shaw et. al. 2006, Ogrizek 2001). Despite the popularity of CSR initiatives in industry, whether consumers are truly concerned with the affiliated causes is still under discussion in the academic domain. Some studies get back to the fundamental issue: Do consumers really care about marketing ethics? Creyer and Ross (1997) conducted a survey to investigate consumers perceptions of CSR and their willingness to buy. In the survey, consumers reported that the ethical dimension of a firm s behavior was an important consideration during the purchase decision, and they would be willing to pay a higher price as a reward to the ethical corporation. The finding provides empirical evidence to support the use of CSR initiatives in the market. However, the results in Carrigan and Attalla s (2001) qualitative 10

20 study are contrary to the general belief about consumers responses to the business ethics issue. They did not find any evidence to support the proposition that an ethical company will have a better business performance, and argued that for a long time marketers and scholars have been misled about the impact of attitudes preferring ethical behaviors on actual ethical purchase. However, the researcher s chosen method is arguably the weak point of this controversial study. Two focus groups with a total of five people were categorized by gender, a smaller sample size than the typical 8 to 12 people in each group. Even though the design of this study is insufficient, though, the results still indicate some ambiguity about consumers perceptions of CSR initiatives. In spite of the controversial debates about the effectiveness of CSR on consumer attitudes and purchase intention, numerous studies repeatedly support the association between CSR and consumer behaviors (Steenhaut & Kenhove 2006, Finch 2005, Becchetti et al. 2005, Cornwell & Coote 2005, Tsakiridou, et. al. 2007). One salient finding was that consumers did not respond to CSR initiatives blindly. They instead reacted differently based on the fit between product and cause (Westberg 2004, Becker-Olsen et al. 2006, Kleina and Dawar 2004), the motive of the firm (Lee 2008, Becker-Olsen et al. 2006, Becchetti et al. 2005), preference for sponsored NPOs (Cornwell & Coote 2005), and different industry categories (Fisman, Heal & Nair 2005). As mentioned in the introduction, the ultimate goal of CSR initiatives is to influence consumers perceptions of the company/brand image. In order to influence consumers, it would be necessary to study what components influence consumers decisions to purchase specific socially responsible products as a response to CSR initiatives. This is a psychological question, so the following section will review psychosocial studies about 11

21 consumers attitudes and behavioral intentions in a moral or ethical behavior context, and try to answer the question: what mental elements drive consumers socially responsible purchases? The Theory of Planned Behavior (TPB) The Theory of Planned Behavior (TPB) model (Ajzen, 1991), a dominant model used in attitude-behavior studies, will provide appropriate theoretical support in the socially responsible purchasing context. Arguably, the TPB model (Ajzen, 1991) is one of the most influential and prevalent psychological and social oriented theories to explain attitude-intention-behavior relationships (Armitage & Conner 2001). The TPB assumes that behavioral intention predicts actual behavior, and that behavioral intention is influenced by three components attitude, subjective norm, and perceived behavioral control (PBC). Ajzen (1991) suggested that beliefs about the outcomes of a behavior, as well as the evaluation of these outcomes, aggregate into a positive or a negative attitude towards performing the behavior. Generally, the more favorable attitudes are, the stronger tendency to perform the behavior will generate. Another motivator of behavioral intention in the TPB model is the extrinsic normative concern, or social pressure, called the subjective norm in the TPB model (Ajzen 2006). In general, the amount of perceived pressure from significant others who desire the subject to perform in a certain way would affect a consumer s inclination to behave in the desirable way. Significant others are individuals whose preferences about a person s behavior in this domain are important to the behavior performer (Conner & Armitage 1998). In Armitage and Conner s (2001) meta-analytic review of studies 12

22 employing the TPB model, subjective norms were the weakest predictor of intentions. They attributed this phenomenon to poor measurement of subjective norms (Armitage and Conner 2001). Consistently, studies on social behaviors, e.g. smoking or food choices, showed that the efficacy of subjective norms were weak or absent (McMillan, Higgins & Conner 2005). In contrast, other studies on ethical issues, such as the purchase of anti-sweat shop apparel (Shaw et al. 2006) and of environment-friendly laundry detergents (Udo 2007), reported that the subjective norm is a significant predictor of purchase intention. As an extension of the theory of reasoned action (TRA), which depends on two volitional components, i.e. attitude and subjective norm, the TPB model explains behavioral intention more accurately by adding perceived behavioral control (PBC) as the third antecedent of behavioral intention. PBC, which is defined as the person s belief as to how easy or difficult performance of the behavior is likely to be (Ajzen and Madden 1986, p. 457), helps to explain that behavioral intentions are not completely volitional. Opportunities or obstacles which may facilitate or impede behaviors will affect intention formation and the performance of behavior. With respect to the effectiveness of PBC on behavioral intention, Ajzen (1991) stated that the relative importance of attitude, subjective norm, and perceived behavioral control in the prediction of intention is expected to vary across behaviors and situations (p.188). A meta-analytic study of applications of the TPB model indicated that PBC may be a more important or more prominent interpreter than the other two antecedents of behavioral intention for some behaviors (Armitage & Conner 2001). The result of a meta-analytic study supported the idea that PBC independently predicted intention and behavior in a wide range of domains, 13

23 which is consistent with claims that the TPB model supersedes the TRA by adding PBC (Dean et al. 2008). However, despite its success in predicting behavioral intention and actual behavior, the TPB model has been criticized for its spotty effectiveness and for failing to predict associations correctly among the antecedents of behavioral intention. An Additional Variable and Application of the Extended TPB model Compared to other models, the TPB is the prevailing model applied in the psychosocial domain, thus endorsing its predictive capability (McEachern et. al 2007). Undoubtedly, the parsimonious TPB model offers a tool to predict and understand human behaviors; however, it is criticized for lacking personal-related variables. When discussing the sufficiency of the TPB model, Ajzen (1991) stated that: The theory of planned behavior is, in principle, open to the inclusion of additional predictors if it can be shown that they capture a significant proportion of the variance in intention or behavior after the theory s current variables have been taken into account (P. 199). Accepting Ajzen s (1991) invitation, the following section discusses the addition of a personal normative relevant variable-- the personal norm-- as a fourth predictor of purchase intention in the context of the purchase of CSR products. In addition, possible relationships with other behavioral intention predictors will be discussed. The personal norm. In some circumstances, the addition of a personal moral norm as a supplement to social pressure may be necessary to explain human behavior (Ajzen 1991, Conner & Armitage, 1998). Ajzen (1991, p.199) defined a personal norm as personal feelings of moral obligation or responsibility to perform, or refuse to perform, a certain behavior. Moral norms are regarded as an individual s conviction about the moral 14

24 correctness or incorrectness of performing a behavior. Moral norms should be an important influence on the decision to engage in those behaviors with a moral or ethical dimension (Conner & Armitage, 1998). To support this view, Manstead (2000) reviewed moral norms from conceptual and empirical perspectives. Conceptually, the moral norm is theoretically distinct from other constructs in the attitude-behavior relationship. And whenever a moral dilemma might be observed, which means a conflict between personal and social gains or losses, it is necessary to include the moral norm in the model (Manstead, 2000). Empirically, studies on altruistic behaviors reported that the inclusion of [the] moral obligation measure in the regression equation significantly improved the prediction of behavioral intentions beyond what was explained by attitudes and subjective norms (Manstead, 2000, p. 15). Results from more recent studies consistently show the importance of personal norms in the context of moral concern circumstances. Shaw et al. (2006) examined the volitional stages in consumer decisions to avoid sweatshop clothing. They used SEM to analyze a modified TPB model and reported significant causal paths from ethical obligation, moral concerns, and obligation to others towards purchase intention (Shaw et al., 2006). Another study about the role of moral concerns in the context of organic foods choices also reveals the important influence of moral concern on purchase decisions (Dean et al., 2008). In their study, Dean et al. (2008) tested positive norms, referring to positive ethical emotions related to purchasing behaviors, and negative norms, like obligations, on purchase choices of two categories of organic food products, fresh products (i.e. organic apples) and processed products (i.e. organic pizza). By including a moral norm, 60 % of the variance in intention was explained for fresh food, and 39% for 15

25 processed food. But only positive norms were found to have a significant influence in predicting purchase intention for the two organic food categories. They explained that only positive moral attitudes (e.g. right thing to do, contribution to others) were relevant to choices of organic food. Obviously, consumers would not feel morally guilty when choosing organic food (Dean et al., 2008). Likewise, Arvola et al. (2008) argued that personal norms were based on both negative and positive anticipated consequences to the self. However, early studies, e.g. Conner & Armitage 1998 and Manstead 2000, have only focused on negative self-feelings (guilt). Positive moral feelings should be observed as a construct of interest under the context of organic food choices: The moral aspects related to organic food (consequences for environment and animals) are more likely to evoke positive (good conscience) than negative feelings (Arvola et al. 2008, pp.445). Surprisingly, the body of studies on the capability of extending the TPB model by including the personal (moral) norm under the purchasing of CRM products context is limited. The present study will thus be a good supplement to the existing literature. Considering the philanthropic nature of CSR initiatives, adding the personal norm as an ethically or morally relevant construct in the TPB model should improve the prediction of socially responsible purchasing as a reward in return for companies kind behaviors. The Extended TPB Model The proposed conceptual model is based on the TPB model, and expands the model by integrating a moral norm-related construct, the personal norm. Manstead (2000) argued that the personal norm/moral norm was an independent predictor of behavioral intention, along with attitude and subjective norm, and suggested having a look at the development of moral norms, putting the TRA or TPB models aside. To answer 16

26 Manstead s proposal, the present extended model proposes that the impact of the personal norm on purchase intention is mediated by attitude. Further, subjective norms impact purchase intention indirectly through the personal norm. Figure 1. Conceptual model that extends the TPB model by adding the personal norm as a new antecedent of purchase intention. The personal norm and attitude. Clearly, previous studies support an improvement in the predictive capability of the extended TPB model. Other studies highlight the influence of the personal moral norm on other constructs in the model (Conner & Armitage 1998). Sparks, Shepherd, and Frewer (1997) reported only a marginally significant contribution of perceived ethical obligation to the prediction of behavioral intention, but, more interestingly, they found that perceived ethical obligation did significantly predict 17

27 attitudes. The evidence would therefore suggest that the personal moral norm is closely correlated with attitudes and may be a predictor of them in some circumstances (Conner & Armitage 1998). In the context of CSR purchasing, consumers attitudes towards CSR initiatives and the CSR-offering company were the outcomes of an evaluation process which was based on an individual s moral criteria or personal normative beliefs (Steenhaut & Kenhove 2006, Smallbone 2005). Generally, the consumer s attitude is strongly and directly affected by his/her personal norms (Tsakiridou et. al. 2007, Steenhaut & Kenhove 2006). Personal norms and subjective norms. Hoffman s moral socialization theory treated the development of moral norms as a process of internalizing initially external norms : A norm that is originally external becomes accepted, or internalized, and is then perceived as having emanated from oneself (Manstead, 2000, p.23). Manstead argued that Hoffman s theory focused on the internalization of social norms and provides the better account of the development of that aspect of morality that involves self-attribution (e.g., of prosocial concern) (Manstead, 2000, p. 24). Based on these theoretical findings, a causal relationship between a personal moral norm and a subjective norm would be expected. Another argument in Armitage and Conner s (2001) meta-analytic review is that only a limited number of studies have revealed a significant association between subjective norms and purchase intention. In some previous studies, the inclusion of moral norms has even led to the exclusion of subjective norms from the TPB model (Conner & Armitage 1998). Results from another study also point to the causal relationship from personal moral norm to subjective norm, which may be a potential explanation for the exclusion of 18

28 subjective norms in certain situations. One stud y, using a conceptual model integrating motivations, i.e. social norms (the subjective norm) and the personal norm within the context of impulsive donation, has confirmed that personal norms mediated the relationship between social norms and charity (Taute and McQuitty, 2004). Hypotheses Based on the literature reviewed above, the following hypotheses are presented: Hypothesis 1: Purchase intention for SRPs is influenced by attitude, subjective norms, and PBC. Hypothesis 2: Purchase intention for SRPs is influenced by personal norm, attitude, subjective norms, and PBC. Hypothesis 3: Personal norm has a direct impact on purchase intention of SRPs. Hypothesis 4: Attitude mediates the relationship between personal norm and purchase intention. Hypothesis 5: Personal norm mediates the relationship between subjective norm and purchase intention. 19

29 Chapter 3: Research Methodology In this chapter, the method and sampling technique are introduced. Some limitations of the selected method are discussed as well. Also, study design, procedure, and measurements are provided in this chapter. Pilot Study When including personal moral norms in the TPB model, one issue requiring attention is the extent to which a moral norm is distinct from attitude toward a given behavior. After all, if attitude toward a behavior reflects favored or unfavored feelings generated by the consequences of the given behavior, attitude should also include moral conviction (Manstead, 2000). To relieve that concern, Ajzen and Fishbein (1980) suggested that one should first identify the so-called modally salient beliefs in the research population (Manstead, 2000). Because of this potential overlap issue, a pilot study was used to elicit frequently repeated attitude related terms, including questions asking participants the advantages and the disadvantages of performing the studied behavior, which leads respondents to focus on the instrumental consequences of their actions rather than their moral implications (Manstead, 2000). In the online based qualitative study, which was approved by IRB (approval number 2009E0789, see Appendix G), subjects were given a link to the questionnaire which had three eliciting questions: 1) What advantages, if any, do you see in buying socially responsible products? ; 2) What disadvantages, if any, do you see in buying socially 20

30 responsible products? ; and 3) We are interested in how buying socially responsible products makes you feel. Please provide a list of all the emotions that you experience when you think about buying socially responsible products. All the questions were adapted from Dean, Raats, & Shepherd (2008), and were followed by enough space for participants to record their responses. In the elicitation phase, after the approval of the IRB, about 60 participants were invited from an undergraduate class at a large, Midwestern university. One $10 gift card was given by lottery as incentive. 13 respondents, consisting of 12 females and 1 male, took the qualitative questionnaire. The response rate was 5.13%, which is not high but enough for the eliciting study. The fact that only one male student participated in the pilot study may reveal that women are more interested in ethical shopping or are more easily attracted by monetary incentives. Table 1 Most frequently mentioned key words expressing feelings related to SPRs purchasing Key Word Frequency Happy (Pleasant) 5 Helpful 4 Supportive 3 Responsible 3 The frequently elicited feeling-related words, which were mentioned over 3 times 21

31 (Table 1), were used to adjust the wording of items about attitudes in the questionnaire for the main survey. Higher price was the most repeatedly used term, when considering disadvantages of purchasing SPRs. Accordingly, I added one item to tap the influence of higher price in PBC scale. Survey Method The present study conducted an internet-based self-administered survey to collect data. This approach is popular among behavioral studies using the TPB framework (Udo 2007, Arvola et al. 2008). Compared to interviewer-administered surveys, a self-administered survey excludes interruptions from the interviewer and ensures a higher level of truth without the influence of social pressure from the interviewer. However, miscomprehending the meaning of survey questions might happen if the questionnaire is not appropriately fashioned (Jenkins & Dillman, 1995). Thus, dedicated explanations of keywords appear at the beginning of the survey, as well as repeatedly throughout the questionnaire, to help participants correctly understand the information. Another concern of utilizing self-administered questionnaires is social desirability behavior, which occurs when respondents artificially inflate their actual level of attitude about some ethically sensitive issues (Udo 2007). However, Vantomme, Geuens, DeHouwer, & DePelsmacker s (2006) study, comparing the effects of both implicit and explicit attitude measures in consumers decision making process in the fair trade context, shows that implicit attitudes also effectively represent consumers real intentions. This indicates that the social desirability bias is not as serious as expected, at least in the context of ethical purchase decision making. With regard to the distribution of the questionnaire, links to the questionnaire were 22

32 sent to the participants by . The survey technique holds considerable promise to eliminate constraints in terms of geography and time, to reduce cost, time and data entry errors per response (Simsek&Veiga, 2000), and to access a sample of populations with high Internet penetration (Bandilla, Bosnjak & Altdorfer, 2003). Sampling In the present study, convenience sampling was used to collect 312 students attending a large, Midwestern university. Unlike probability samples, a convenience sample is minimal and simple, with the objective of accessing a set of data more economically (Ferber, 1977). Ferber (1977) listed three basic criteria which any type of sample for consumer research should satisfy; applying these criteria to a convenience sample could judge the appropriateness of the sampling process. First, the relevance of the sample to the topic under study must be firmly established (Ferber, 1977). In this case, our study topic is consumers purchasing of any socially friendly products, whether a kitchen utensil with a pink ribbon (indicating awareness of breast cancer) or a book that is clearly declared to be made of sustainably sourced paper. Obviously, these SRPs are part of the consumption set of products for college students. The second criterion requires that the sample size must be adequate for analytical purposes (Ferber, 1977). An online sample size calculator showed that 384 people can represent the U.S population at a 95% confidence level and a ±5 confidence interval. In total, 312 invitation s were sent out, which should be an adequate sample of the population of U.S. college students, which decently satisfied the second criterion. The third criterion is that the subjects should be representative of the population being studied. Unlike a probability sample, researchers have to show that the convenience sample is in some way representative of 23

33 the population (Ferber, 1977). In this situation, results should be carefully confined to the sampled population. Procedure In main survey, after the approval from IRB (Approval number: 2009E0840, See Appendix F), invited students, who were chosen from the same population of pilot study (Manstead, 2000), received invitation s containing the questionnaire s web address. They were encouraged to finish the online qualitative questionnaire to get the bonus/actual curricular points offered as incentive. Sample collection and Participants Main study. Respondents were recruited from four large undergraduate classes at a large, Midwestern university. 310 undergraduate students from four classes were invited 140 Female 57 Male Figure 2. Gender comparison of participants in the main survey 24

34 to take the survey. Eventually, 198 usable questionnaires were collected from 202 participants. The response rate was 64%. The age range of participants is from 19 to 31 with an average age of There are 140 (70.7%) female participants and 57 (28.8%) male participants. Measurements in Main Survey The theoretical constructs in the TPB model are hypothetical or latent variables, which cannot be observed directly. All the constructs should be inferred from observable responses under the principle of compatibility, which means all constructs should be defined in terms of exactly the same examined behavior (Ajzen, 2006). The behavior of interest is defined in terms of its Target, Action, Context, and Time (TACT) (Ajzen, 2006). In the present study, the research interest is to examine the consumers (target element) purchasing behavior (action element) for socially responsible products (context element), in the near future (time element). The definition of socially responsible purchasing was explicitly given at the beginning of the questionnaire, in order to help consumers comprehend the focal behavior in a manner consistent with TACT. Socially responsible purchase intention. Kaiser, Huber & Bogner (2005) indicated that an individual s perception of a prosocial purchase might vary for different product categories and organizations. As reviewed previously, CRM is the most commonly implemented CSR initiative today (Westberg 2004, Lee 2008). Hence, in the present research, socially responsible products are defined as cause-related products with a cause-related slogan or label which can easily be seen or perceived by consumers. Purchase intention for the SRPs was measured by three 7-point Likert scale questions such as I expect to buy a prosocial product in the near future, which were adapted from 25

35 Udo s (2007) study of the role of self-identity and ethical obligation on Japanese consumers choice of eco-friendly laundry detergents. Attitude. The scales for attitude were adopted from Smith et al. s (2007) study using an extended TPB model and Udo s (2007) study. Some adjustments were made for the context of the current study with the combination of both instrumental (e.g., valuable vs. worthless) and experiential (e.g., pleasant vs. unpleasant) attitudes (Ajzen, 2006). The direct attitude measurement, which is the most commonly employed, uses six semantic-differential items (Ajzen, 2006). Respondents were asked questions such as For me, to purchase a cause-related product will be. Respondents rated their perceived emotions on six descriptions, on seven-point scales: unpleasant-pleasant, bad-good, negative-positive, unfavorable-favorable, unsatisfactory-satisfactory, and worthless-valuable. At last, according to the result of the pilot study three attitude-related items, which was not covered by adopted items, were added: Helpful, supportive and responsible were elicited from the list of the top feelings which socially responsible purchasing brings to consumers. Questions regarding these three feelings were asked using three bi-polar 7-point scales as well (Table 2). Subjective norms (Influence from reference group). Taute and McQuitt (2004) developed a scale to measure social norms based on previous work done by Park and Lessing (1977) and Bearden and Etzel (1982) describing three different influences from reference groups: informational, utilitarian, and value-expressive. Only value-expressive norms were relevant to social norms and get a high Cronbach alpha value. In the questionnaire, scales were adjusted to fit the present study. Three other scales from the studies of Udo (2007) and Shaw et al. (2006), which are both based on the TPB model, 26

36 were also added. The final measurements included three injunctive questions, like people who are important to me want me to buy socially responsible products in the near future, and one descriptive question: people who are important to me often purchase prosocial products. The design was consistent with the consideration of capturing both injunctive quality and descriptive quality while measuring subjective norms according to Ajzen s (2006) guidelines on TPB questionnaire design. Perceived behavior control (PBC). The measurement of PBC as one of the constructs in the original TPB model has been well developed in previous studies (Shaw & Shiu 2003, Carrus, Nenci & Caddeo 2009). PBC was measured either by general questions about the degree of perceived difficulty to perform the behavior under observation or by items assessing controllability (Ajzen, 2006). The results from the pilot study revealed the main disadvantage or concern which may inhibit the purchasing of socially responsible products was the higher price of such products. Hence, combining the two approaches, questions covering consumers general concern about difficulty and controllability, as well as one additional question about price, were asked (Sparks et al. 1997, Ajzen 2006). For example, one question was For me, buying a socially responsible product in the near future is and was rated ranging from easy (1 point) to difficult (7 points), which were coded reversely. The influence of higher price was also asked in a reversed way, with the answer choices ranging from affordable to too costly (Table 2). Personal norm. Similarly to Arvola et al. s (2008) study on predicting the purchase of organic food, under the context of socially responsible purchases, the personal norm was operationalized as positive self-enhancing feelings of doing the right thing, rather 27

37 than as negative feelings of obligation or guilt. Positive moral feelings evoked by personal normative beliefs were examined by combining positive feelings with Taute and McQuitt s (2004) personal norm items. Respondents were asked to rate their values on 7-point Likert questions, such as I think helping is important. Table 2 Measurements in Main Survey Variables Items Reversed Attitude Satisfactory(=7) vs. Unsatisfactory(=1) Pleasant(=1) vs. Unpleasant(=7) Yes Good(=7) vs. Bad(=1) Positive(=1) vs. Negative(=7) Yes Favorable(=7) vs. Unfavorable(=1) Helpful(=1) vs. Unhelpful(=7) Yes Valuable(=7) vs. Worthless(=1) Supportive(=1) vs. Unsupportive(=7) Yes Responsible(=7) vs. Irresponsible(=1) Personal Norm a I am willing to help others I think helping others is important I am NOT charitable toward others Yes I admire givers Charity is the right thing to do Subjective Norm b People who are important to me often purchase pro-social products Most people who are important to me think that I should buy SRPs The people in my life whose opinions I value would approve of my buying SRPs People who are important to me want me to buy SRPs in the near future PBC For me, buying SRPs would be: Easy(=1) vs. Difficult(=7) Yes It is mostly up to me whether or not to buy SRPs If I want to, buying SRPs in the near future would be: Extremely Yes likely(=1) vs. Extremely unlikely(=7) For me, buying SPRs would be: Affordable(=1) vs. Too costly(=7) Yes How much control do you believe you have in buying SRPs? Completely Yes control(=1) vs. No control(=7) Purchase Intention c I expect to buy a socially responsible product in the near future. I want to buy a socially responsible product in the near future. I intent to buy a socially responsible product in the near future. Note. a,b,c 1=strongly agree, 7=strongly disagree 28

38 Chapter 4: Statistical Analysis and Results Statistical software SPSS version 17-- was used to analyze the collected data. An exploratory factor analysis (PCA) model was estimated to examine the validity of the scale items for each variable. In order to relieve the concern of how well a set of items measures a single unidimensional latent construct, Cronbach s alpha was tested. Then, hierarchical multiple regression was used to test the research hypotheses. In step one, the three constructs in the original TPB model were tested, and then the personal norm was added in step two. Baron and Kenny s four step method was used to test the mediating relationships. Discriminant Validity and Internal Consistency (Reliability) Exploratory factor analysis was performed to assess the unidimensionality and discriminant validity of the measures in the expanded TPB model. The SPSS output suggested five factors (Table 3), which indicates one more factor than the four expected factors. In the first factor group (eigenvalue=7.6), the nine items measure consumers attitude towards moral behavior, with loadings ranging between and In the second factor group, four items measure a latent variable, the personal norm factor (eigenvalue=3.2), with loading between 0.54 and Three items representing the subjective norm (eigenvalue=1.956) have loadings from 0.79 to The five items which are used to test perceived behavior control had been divided into two groups, representing perceived difficulty and ability to control, respectively. In the subsequent 29