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DETERMINANTS OF PRO-ENVIRONMENTAL BEHAVIOURS WITHIN INDIVIDUAL CONSUMERS Souad HMida Ph.D, Associate professor Graduate School, Universit de Moncton Massey Street, Moncton, NB, Canada E-mail: Souad.Hmida@umoncton.ca Emmanuel Chvez, Student School of Management and Economic Sciences Universidad Pamericana, Campus Guadalajara, 49, CD. Granja, 45010 Zapopan, Jal. Mxico. E-mail: emm.chavez@gmail.com Corinne Guindon, Student Master in Environmental Studies, Universit de Moncton Campus de Moncton, E1A-3E9, NB, Canada E-mail: ecg4819@umoncton.ca Abstract This paper examines the determinants of pro-environmental behaviour of individual consumers. Some studies show that younger and educated consumers seem to be more informed and more concerned about the environment. Others argue that culture and revenue have an impact on consumers decision to buy (or not) green products. However, there are scant studies dealing with what causes proecological behaviour. In this paper we develop a conceptual model where environmental consciousness and willingness to pay extra money for green products impact directly proenvironmental behaviours. Several research propositions are discussed. Key words: Green marketing, Consumer behaviour, Environmental consciousness. JEL Classification: M31

1. INTRODUCTION Since the industrial revolution, humans have done irreparable damage to the planet. Theyve exploited natural resources beyond their regenerative capacity, altered ecosystems and extinguished entire species of plants and animals. According to some studies, thirty to forty per cent of current environmental degradation is due to the consumption activities of private households (Grunert, 1993). Reports show that this trend is growing (Grant, 2000: 5) and in countries like the United Kingdom, environmental concern is the socially accepted norm (Schwepker and Cornell, 1991). Although the level of consciousness and concern about environment is proven to be high in many countries, this doesnt translate automatically into pro-environmental behaviour. A recent report on forest certification released by the Vermont Sustainable Jobs Fund (VSJF) in 2006, shows that there is inconsistency between consumer environmental concern and purchase behaviour of certified wood products. The impact of environmental consciousness on consumer purchasing behaviour therefore remains unclear. The objective of the current study is to examine the determinants of consumers pro-environmental behaviour. More specifically, this paper seeks to explore whether or not an increase in environmental consciousness has a positive impact on consumer behaviour. The proposed conceptual model illustrates the determinants and the consequences of environmental consciousness. Through this model, the link between environmental consciousness, ecological buying behaviour, and willingness to pay a higher price for a green product will be clarified. These key concepts will also de defined accordingly. 2. ENVIRONMENTAL CONSCIOUSNESS AND GREEN BEHAVIOR As the causes and consequences of environmental degradation are increasingly discussed by the international community, the concept of environmental consciousness and its attributes (cognitive, attitudinal and behavioural variables) have been of particular interest to numerous researchers from various academic backgrounds. An extensive literature review could illustrate the wide range of studies which have focused on environmental consciousness and proenvironmental behaviour alike. However, certain disciplines have proven to be leaders in the matter. The fields of sociology, psychology, business, marketing,

3 administration, and business management have shed some light on the determinants of environmental consciousness. Various definitions have been suggested throughout the years. For some, environmental consciousness is best defined as an attitude. Ecologically conscious consumers believe that current environmental conditions are deteriorating and represent serious problems facing the security of the world, whereas consumers who are less sensible to ecological issues perceive that environmental problems will solve themselves. (Laroche et al., 2002, p.268) For others, environmental consciousness constitutes an action, or behaviour. Kang and James (2007) have formulated a definition that is relevant to firms. According to these authors, environmental consciousness translates the degree to which an organization produced a product which is advantageous to the natural environment while minimizing negative impacts on the environment (Kang & James, 2007, p.310). This definition can be adapted to better fit a consumer reality: consumer behaviour which aims at reducing human ecological footprint. In this case, environmental consciousness is considered a form of social orientation, as it can be defined as the effort to concentrate on the long-run well-being of individuals and society, through the reduction of negative consequences associated with a product (Kang & James, 2007, p.305). A third type of definition considers environment consciousness as a multidimensional concept consisting of cognitive, attitudinal, and behavioural components (Schlegelmilch, Bohlen & Diamantopoulos, 1996, p.41). Rannikko (2001), while acknowledging the importance of such dimensions, emphasizes the fact the concept must also integrate intellectual and affective dimensions. 3. CONCEPTUAL MODEL The objective of the present paper is to explore the relationship between environmental consciousness and pro-environmental behaviour, or ecological buying behaviour. Pro-environmental behaviour has been defined by Kollmuss and Agyeman (2002). Such behaviour consciously seeks to minimize the negative impact of ones actions on the natural and built world (e.g. minimize resource and energy consumption, use non-toxic substances, reduce waste production (Kollmuss & Agyeman, 2002: 240). Environmental consciousness, on the other hand, is influenced by two sets of determinants: external determinants (media, family, culture) and internal determinants (demographics, psychological variables). In turn, ecological buying behaviour is influenced by four determining factors:

4 environmental consciousness, willingness to pay higher price, perceived environmental characteristics of a product, and companys environmental reputation. Though a direct relationship between environmental consciousness and pro-environmental behaviour is possible, the conceptual model also reveals that such a relationship can be oversimplified. Environmental consciousness can thus be indirectly related to ecological buying behaviour through an individuals willingness to pay more for an environmentally friendly product. More specifically, some individuals only manifest environmentally friendly purchasing behaviours when they are convinced that the characteristics of the product and the companys environmental reputation are worthy of paying a higher price for the green product.

Figure 1. Conceptual model. 3.1 Research propositions P1: Environmental consciousness is determined by external determinants such media, family, and culture. Media, in an environmental marketing perspective, is crucial to delivering the proper information to consumers in order to strengthen individual and collective environmental consciousness (Rios et al., 2006). Media, in other words, not only helps develop environmental awareness and concern but in doing so, it also allows consumers to act in accordance to their newfound, or heightened, sense of concern for the natural environment. Media can therefore play a significant role in building a direct relationship between environmental consciousness and ecological buying behaviour (P4). Family is also considered a crucial determinant of environmental consciousness, as it is a profound source of environmental value and attitude building in individuals,

5 notably child family members. The work of Gronhoj (2006) on environmental consciousness is particularly pertinent, for it helps confirm the acute influence of family in the development of environmental awareness and consequent responsible environmental behaviour. As previously mentioned, family can have an influence on the direct relationship between environmental consciousness and eventual ecological buying behaviour. Culture is the third external determinant of environmental consciousness covered in this paper. Triandis conducted a study in 1984 which analyzed the link between an individuals locus of control and his or her cultural attributes in order to measure the influence of such variables on ones behaviour towards his or her natural surroundings. Triandis explained that culture, which dictates the role of humans in the natural balance of ecosystems, can be a much more significant determinant of environmental consciousness than age, for example, in situations where economic growth and environmental exploitation are proven to be important. Cultural groups see themselves as superior to, or subordinate to or in accordance with nature. Cultural variations in ELOC (environmental locus of control) could be observed between countries where mans relationship with nature collides with expansionist efforts (e.g. China) or more in harmony with the status quo (e.g. Canada). (Cleveland et al., 2005, p.209) Furthermore, Daniel Krause (1993) mentions a noticeable lack of environmental consciousness in the American culture, for his data reveals that environmental consciousness varies very little between individuals with distinct demographic baggage (ethnicity, income, and gender). Krauses study therefore seems to indicate that environmental consciousness is embedded in American culture, religions, and lifestyles (Krause, 1993, p.140). P2: Environmental consciousness is determined by internal factors such as demographics and psychological variables. The current significance of demographics as a determinant of environmental consciousness remains the subject of much debate amongst the scientific community. On one hand, numerous studies mainly in the field of psychology have stated that variables such as age, gender, education, income, and political orientation can be very useful in explaining an individuals level of environmental consciousness and concern for the surrounding natural and social environments. For example, some authors have suggested that younger, well educated, individuals are more likely to be environmentally aware and concerned than their older, less

6 educated, counterparts. Other studies have shown that politically liberal women with higher income and education levels display a higher concern for environmental protection (Brody et al., 2004, p.233). In fact, the role of gender in the prediction of environmental concern and consciousness was previously confirmed in a 2001 study by Rausepp, who stated that women are generally more environmentally aware than men. However, such results oppose the findings of Van Liere and Dunlap (1980), which illustrate that gender, as opposed to other demographic variables, is a bad predictor of environmental concern (Brody et al., 2004, p.233). On the other hand, Krause (1993) concluded that ones willingness to act in an environmentally friendly manner is consistent across demographic variables. Schleglmilch, Bohlen & Diamantopoulos (1996), who believe that such variables should nonetheless be accounted for, have reiterated a hypothesis which was first advanced by the authors Schwepket and Cornell (1991). Interestingly, it states that socio-demographic variables are insufficient predictors of environmental consciousness because the concern that people advocate for the alarming state of degradation of the environment has become generalized in all strata of society (Schlegelmilch, Bohlen & Diamantopoulos, 1996, p.36). Overall, all studies dont agree on the pertinence of demographics as determinant of environmental consciousness. However, it is important to conduct more studies in order to evaluate the impact of demographics comparatively to other variables such as psychological factors. This emphasise the contribution of this paper. Psychological determinants are also said to be important predictors of environmental consciousness. They include personal value orientations. A study by De Groot and Steg (2007) looks into the importance of egoistic, altruistic, and biospheric value orientations in the construction of environmental beliefs and the consequent manifestation of responsible environmental behaviour. Previous studies that have examined the importance of these value orientations have failed to make the distinction between the impact of altruistic values on environmental beliefs and behaviours. De Groot and Steg (2007) proposed to fill this gap by examining if such a distinction exists across countries (Austria, Czech Republic, Italy, the Netherlands, and Sweden) (De Groot & Steg, 2007, p.318). Their results show that there is a link between pro-social/pro-environmental behaviour and altruistic and biospheric value orientations. In this case, psychological determinants could be

7 seen as being positively responsible for the direct relationship between environmental consciousness and ecological buying behaviour (P4). P3: Environmental consciousness will have a direct impact on consumers willingness to pay for a green product. The relationship between environmental consciousness and willingness to pay a higher price for a green product is supported in some studies (Kotchen, and Moore, 2008; Yesawich, 2007) and not supported in others (Troy, 2007). In this model we suggest that if a consumer is environmentally conscious, he or she could be more willing to pay a higher price for the green product. This willingness to pay can, therefore, either lead to a direct ecological buying behaviour (P7) or be influenced by circumstantial determinants associated with pro-environmental purchasing behaviours (P5 and P6). If the involvement of the consumer with a product is high, (for example for health reasons), than this customer may be willing to pay more for a greener product. Also, if the reputation of the company is not very good pertaining to the environment, customers may be reluctant to pay any extra money because they dont trust the green labelling of that particular company. In a study carried out by Bowmen (2007) in India, a survey found that half of the sampled individuals said that they would be willing to pay 10 per cent more for products that are environmentally friendly. The results were very similar for the Vietnamese consumers. In the case of the Chinese consumers, however, the results show that they are less generous than those in other countries in terms of their willingness to pay for a green product. Though Chinese consumers display a strong attachment to nature, Chan (1999) found that they are only willing to pay 4.5 per cent more for an environmentally friendly product. Their US counterparts, on the other hand, said they were willing to pay up to 6.6 per cent more for the same product. In addition, a Gallup report (1992) showed that 65 per cent of Americans, 59 per cent of Germans and 31 per cent of Japanese consumers are willing to pay a higher price for a product that proves to be environmentally sustainable.

P4: Environmental consciousness is directly linked to ecological buying behaviour To date, no extensive research has been conducted to properly examine and understand the relationship between environmental consciousness and ecological buying behaviour. Few studies have nonetheless made illusion to such a relationship by defining environmental consciousness as a type of behaviour or

8 action. As previously mentioned, authors such as Schlegelmilch, Bohlen and Diamantopoulos (1996) and Kang and James (2007) have included environmental behaviour as an attribute of environmental consciousness. In studying the role of gender in the development of pro-environmental behaviour, Balderjahn (1988) reported that environmentally conscious men are more inclined to use environmentally friendly products (Ling-yee, 1997, p.37). In this model, we suppose that consumers with high level of environmental consciousness will be more inclined to opt for greener products. Consequently, environmental consciousness is proposed as a justifiable cause of ecological buying behaviour since consumers who are concerned about the state of the environment will act, at some point, in accordance with their environmental belief. P5and P6: A consumers willingness to pay is influenced by perceived environmental characteristics of the product and by the companys environmental reputation. The perceived environmental characteristics of a product, which is largely dependant on the efficiency of the branding and communication strategies, is proposed to be a determinant of consumers willingness to pay a higher price for a green product. This effect is responsible for the indirect relationship between environmental consciousness and ecological buying behaviour. Media and communications play a fundamental role in product perception. In the marketing sphere, we are often reminded that companies have the difficult task of finding new, innovative, ways to communicate the environmental and economic benefits of their products to their consumers in order to generate pro-environmental behaviour (Kang and James, 2007). Organizations would be advised to put more emphasis on long-term economic gain effects and creatively communicate their unique proposition over competitors to consumers (Gi-Du Kang and Jeffrey James, 2007, p.314). Consistent with this statement are the findings by Schlegelmilch, Bohlen and Diamantopoulos (1996, as the authors specify that most of the time; only those individuals with a heightened sense of environmental consciousness and responsibility for their natural surroundings will purchase products regardless of their aesthetic, qualities, and price. Therefore, according to Schlegelmilch, Bohlen and Diamantopoulos, in order to encourage ecological buying behaviour, companies are advised to put more emphasis on labelling, packaging, and advertising in hopes to deliver clear and pertinent information about their products (Schlegelmilch, Bohlen and Diamantopoulos, 1996: 51). In her Australian study, DSouza (2006) found that a relatively large percentage of respondents (69.7 per

9 cent) indicated that they would be willing to purchase environmentally friendly products even if this meant having to pay more for them. In comparison, a smaller proportion on individuals (51.7 per cent) affirmed that they would be willing to compromise product quality in order to safeguard the environment. Thus, consumers appear to be more forgiving in terms of product prices than in terms of product quality. DSouza also found that satisfactory and well conceived labels providing useful product information can positively influence product selection. Such labelling, however, will not help to overcome consumers price sensitivity. However, as states by Davies and Knight (2007: 18), Consumers will demand more proof that a company or brand is actively reducing its carbon footprint. . Concerning the impact of companys environmental reputation on the willingness to pay and on pro-environment behaviour, some suggest that companies who act ethically influence consumers willingness to pay a premium for a green, sustainable product (Kang & James, 2007). The information about an organizations societal behaviour is thought to influence product sale and consumers image of a company. For example, consumers believe that companies actively supporting ethical behaviour are honest, more reliable, and, hence, produce high-quality products. Social attributes such as environmentally friendly of a caring company can serve as a signal of product quality. (Kang & James, 2007: 303). An earlier study carried out by Forte and Lamont (1998) shows that when purchasing a green product, consumers are not only influenced by media advertising but also, by corporate perception. The researchers found that 77 per cent of consumers consider the companys environmental reputation when choosing a product. However, other studies show that other intrinsic variables such as demographics, attitudes, and values can also lead an individual to support companies and pay more for an environmentally friendly product. In 2006, DSouza et al. found that 66.5 per cent of consumers rely more on their own experiences when selecting an environmentally friendly product. P7: A consumers willingness to pay a higher price for a green product affects positively his/her ecological behaviour. This relationship suggests that in some cases, individuals who are willing to pay a higher price for a green product will do so, independently of any other circumstantial element. Though the literature shows that such individuals are not the norm, they nonetheless represent a growing segment of the population. A recent

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