tmsd 19 (1) pp.

107–118 Intellect Limited 2020

International Journal of Technology Management & Sustainable Development

Volume 19 Number 1
© 2020 Intellect Ltd Article. English language. https://doi.org/10.1386/tmsd_00018_1
Received 20 July 2019; Accepted 12 January 2020

SARGAM BAHL WALIA, HARISH KUMAR AND NAVEEN NEGI

Graphic Era Hill University

Impact of brand
consciousness, perceived
quality of products, price
sensitivity and product
availability on purchase
intention towards ‘green’
products

ABSTRACT KEYWORDS
This study attempts to investigate the factors underlying fluctuations in the purchase intention
purchase intentions of consumers towards selected green products specified herein green products
as fast-moving consumer goods (FMCGs). A survey was conducted covering 500 FMCGs
respondents associated with four retail outlets selling green products and conven- brand consciousness
tional products in Dehradun, Uttarakhand. Factor analysis was first applied to perceived quality of
the survey data to reduce the number of variables to be considered in the process of products
investigation without losing the significance of the explanatory power of variables. price sensitivity
This led to the extraction of the maximum common variance from all variables. product availability

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Simple regression analysis was then carried out to understand the relationship
between the dependent variable (purchase intention) and the independent vari-
ables (brand consciousness, perceived quality of products, price sensitivity and
product availability). The results show that brand consciousness, perceived quality
of products, price sensitivity and product availability have significant effects on
the purchase intention of consumers towards green products. The relative impor-
tance of the factors that affect consumers’ purchase intention has been analysed,
and the practical and theoretical implications of the results of the study are also
discussed.

INTRODUCTION
There is growing evidence of environmental concern among consumers across
countries. This emerging eco-friendly trend of consumer behaviour is creat-
ing a win-win situation not only for consumers but also for industry as ‘green
marketing’ has the effect of enhancing industry’s competitive advantage and
its credentials in corporate social responsibility (Johri and Sahasakmontri
1998). This change in consumer and producer behaviour in favour of ‘going
green’, which is reinforced by the ethics of corporate social responsibility, has
been central to the conservation and sustainable use of resources that consti-
tute the natural environment.
The ‘going green’ business is gaining wider acclaim as a growing number of
consumers have shown their readiness in supporting ‘environmental friendly’
firms and products (Yahya et al. 2016; Geetha and Jenifer 2014). Green market-
ing has of late emerged as an important mechanism for promoting sustain-
ability of the environment without compromising the scope for industrial
growth. As Elkington (1994) argues, nothing else can serve the ‘triple bottom
line’, underlying the good of the planet, people and profit, better than green
marketing. However, ‘going green’ is not without challenges, particularly when
it comes to implementation.
Various factors influence the emergence of ‘green concern’ and hence the
purchase intention of consumers towards eco-friendly products. Studies to
date have broadly shown that brand consciousness, perceived quality of prod-
ucts, price sensitivity and product availability play important roles in develop-
ing purchase intentions with respect to ‘green’ products. This article, however,
focuses on the purchase intention of consumers towards selected segments of
green fast-moving consumer goods (FMCGs). The article seeks to shed light
on how strongly brand consciousness, perceived quality of products, price
sensitivity and product availability affect the purchase intention of consumers
towards green FMGs.
The FMCG industry is one of the biggest in the market and a major
contributor to the development of the Indian economy. It is the fourth largest
sector in the Indian economy, with about 50% of its sales including personal
care and household products. The FMCG sector has grown from Rs 220,852.4
crore (US$ 31.6 billion) in 2011 to Rs 368,669.75 crore (US$ 52.75 billion) in
2017–18. The sector is further expected to grow at a compound annual growth
rate (CAGR) of 27.86% to reach Rs 724,759.3 crore (US$ 103.7 billion) by 2020.
Accounting for a revenue share of around 45%, the rural segment is a large
contributor to the overall revenue generated by the FMCG sector in India
(India Brand Equity Foundation 2019).

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 Impact of brand consciousness, perceived quality of products, price sensitivity...

Green products are creating a new market for existing and potential buyers
and sellers. These products are not only impacting the demand for the conven-
tional or traditional products but are also creating a pro-environmental attitude
and intention among the masses of the population. Green products are playing
a key role in the sustainable growth of economies, but consumers have to be
attracted to them for sustainable practices to take hold. However, consumers’
mind-set can be fickle, shifting from time to time, thus making it unpredict-
able. In the circumstances, understanding consumers’ preferences as between
the conventional and green products would be a daunting exercise. The results
of this study on consumers’ purchase intention towards green products under
the category of FMCGs can, therefore, be considered suggestive, at best. For all
that, it is hoped, however, that the results of the study would be of some help
to marketing agencies and consumers in making choice decisions, and govern-
ment and non-government organizations and other bodies in designing eco-
friendly strategies for creating a sustainable economy.

LITERATURE REVIEW: SETTING THE CONTEXT

Consumers’ purchase intention is a crucial topic in the broader sustainability
agenda, notwithstanding the adverse implications of the emerging phenom-
enon of ‘consumerism’ (Chen et al. 2018). In this article, ‘purchase intention’ is
defined as the readiness of consumers to purchase green products. There are
a number of attributes affecting a consumer’s intention to purchase products.
Donaldson (2005) observed that consumers would be more inclined to prefer
conventional brands despite the promotional drive of companies to attract
consumers to choose green products.
On the other hand, in a survey conducted by Ali et al. (2011), it was
observed that consumers in Pakistan are very much concerned about the
environment and that they would be interested in buying green products as
long as the price and quality of green products are at par with their tradi-
tional alternatives. Kim and Park (2013) examined the relationships among
marketing mix elements, brand attitudes and purchase intentions, and found
that brand consciousness plays a significant role in influencing the strength of
consumer attitudes. Phillips (1999) reports that consumers are willing to pay
premium prices for green products because for them it is not the cost factor
but the quality factor that matters more in choice decisions. Indeed, he would
argue that consumers’ passion for quality can be so strong that 50 per cent of
Americans would look for environmental labels before switching on to the
eco-friendly brands.
Jain and Kaur (2004) observe that non-availability of green products is a
major obstacle in eliminating environmental degradation. Marketing of green
products offers consumers information related to the environmental perfor-
mance of companies; information related to green products; product pricing;
product attributes; product availability; congruence with their desirable social
image; and relevance to their lifestyles, which leads to the creation of a posi-
tive intention towards green products (Kumar and Ghodeswar 2015).
Tan (2011) suggested that the best way to motivate consumers to shift
from buying traditional products to buying eco-friendly products is by making
them aware of the advantages of ‘going green’, which can be achieved through
advertisements carrying clear messages about the environmental impact of
products. At a broader level, creating environmental awareness and inform-
ing people about the eminent threat of environmental deterioration to the

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Sargam Bahl Walia | Harish Kumar | Naveen Negi

health and well-being of present and future generations through educational

programmes is crucial for influencing consumers to ‘go green’ and develop
sustainable consumption behaviour.

Brand consciousness

Perceived quality of
products Purchase intention
towards green
products
Price sensitivity

Product
availability

Figure 1:  Conceptual framework of the study.

Prakash and Pathak (2017) confirmed that purchase intentions leaning

towards eco-friendly packaging are significantly influenced by personal norms,
attitudes, environmental concern and willingness to pay. They also concluded
that environmental attitude affects the purchase intention of youth consumers
towards green products. Gan et al. (2008) found that factors like price, qual-
ity, brand and socio-demographics play a significant role in making a green
purchasing decision, a finding that is corroborated by the results of this study.

METHODOLOGY
Conceptual framework of the study
Figure 1 shows the conceptual framework of the study featuring the relation-
ship between selected dependent and independent variables. The independ-
ent variables used in the analysis are brand consciousness, perceived quality
of products, price sensitivity and product availability. Purchase intention is the
dependent variable in the study. The relationship between the dependent and
independent variables is reflective of behavioural trends relating to intentions
to adopt certain courses of action. These behavioural intentions are inferred
from attitudes towards objective conditions and subjective norms that consti-
tute the domain of independent variables in the model (Ajzen and Fishbein
1980; Fishbein and Ajzen 1975; Ajzen 1991).
The following hypotheses are proposed for empirical investigation in this
study.
• Hypothesis 1: Brand consciousness affects purchase intention towards
green products.
• Hypothesis 2: Perceived quality of products affects purchase intention
towards green products.
• Hypothesis 3: Price sensitivity affects purchase intention towards green
products.
• Hypothesis 4: Product availability affects purchase intention towards green
products.

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 Impact of brand consciousness, perceived quality of products, price sensitivity...

Sample selection and data collection

The research design used in the study is qualitative and quantitative. Using
both primary and secondary data, the study addresses the issue of purchase
intention towards green products deriving from the FMCG sector. The primary
data used for investigating the research problem were obtained based on a
simple random sampling, covering a total of 500 respondents from Dehradun
town. The primary data were gathered through the administration of a struc-
tured questionnaire.

Reliability and validity of scale

Consumers’ purchase intention is measured using appropriate constructs from
past studies. Thus a total of eleven statements, drawn from the literature, are
used to investigate the purchase intention of the consumers towards green
products. All the eleven statements have been derived keeping in mind the
four dimensions for purchase intention – i.e. brand consciousness; perceived
quality of products; price sensitivity; and product availability. Quantitative
values are attached to these factors based on the responses to the eleven
statements drawn from the literature, with the answers ranging from ‘strongly
disagree’ (1) to ‘strongly agree’ (7). These are used to determine the purchase
intention of the consumers on a Likert scale. Sample questions include ‘It
is important to buy well-known clothing brands’ and ‘Lack of availability of
green products influences the purchase intention’. The measure of reliability
for this scale is tested using Cronbach’s α. The value of Cronbach’s α is 0.89.

Analytical approach
The survey data are examined with the help of statistical tools. A Likert scale
ranging from 1 to 7 (1: strongly disagree, 7: strongly agree) is used as a basis
for data analysis. Cronbach’s α was computed to assess the model for internal
consistency among variables. Principal component analysis or factor analysis
is used as a method for analysing the interrelationships among the variables.
The Kaiser–Meyer–Olkin (KMO) and Bartlett’s test of sampling adequacy is
used to examine the appropriateness of factor analysis. Factor analysis was
used to condense the information of the variables into a smaller set of factors
with minimum loss of information. Factor analysis is done using the princi-
pal component method to check the orientation of the items that constitute
purchase intention (Table 1). Factor loading shows the variance explained by
the variable on that particular factor. As a rule of thumb, 0.7 or higher factor
loading confirms that the factor extracts sufficient variance from that variable
(Dunteman 1989). After conducting a factor analysis on purchase intention,
nine items resulted in the extraction of one component. Two items with a factor
loading less than the recommended value of 0.7 were removed. All the items
included for analysis have more than the recommended value of 0.7 at least
and with a KMO value of 0.776. The Pearson Product Moment Correlation
test is also performed on the collected data to show the association between
the independent variables (price sensitivity, brand consciousness, product
awareness, product benefits) and the dependent variable (purchase intention)
relating to green products. Multiple regression analysis is also conducted to
understand how the dependent variable changes when the independent vari-
able changes.

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Sargam Bahl Walia | Harish Kumar | Naveen Negi

Purchase intention F
Price sensitivity: Perceived price is positively associated with the 0.727
purchase intention for a green product
Price sensitivity: Price of the green product affects my buying 0.746
decision
Price sensitivity: Higher price would come in the way 0.701
of buying a green product
Brand consciousness: It is important for me to buy well-known 0.767
clothing brands
Brand consciousness: I try to stick to certain brands of FMCG 0.706
Product availability: Lack of availability of green products 0.824
influences my purchase intention
Product availability: Not much variety is available in eco-friendly 0.742
fast-moving consumer goods
Product benefits/perceived quality: Green products are reliable 0.779
Product benefits/perceived quality: Green products are high in 0.726
quality
Table 1:  Post-factor analysis results of factor loading.

RESULTS AND DISCUSSION

Demographic profile of the respondents
The demographic profile includes age, income level, education level, gender
and household monthly income. The survey data showed that 41.6% of the
respondents were females and 58.4% were males. With respect to age, the
data showed that most of the respondents were between 20 and 30 years
old (28.8%), followed by 26% between 40 and 50 years old; 16.4% younger
than 20 years; 15.4% between 30 and 40 years old; 11.6% between 50 and
60 years old; and only 1.8% older than 60 years of age. Moreover, the major-
ity of respondents included graduates and post-graduates (70%). In terms of
income distribution, this study found that 29.2% of the respondents’ monthly
household incomes ranged between Rs 40,000 and 50,000 and 28.4% of the
respondents’ incomes ranged between Rs 20,000 and 30,000. With respect to
occupation, 48.2% of the respondents were in the service sector and 21% of
the respondents had their own business.

Correlation
Table 2 shows the correlation analysis for the items considered important for
purchase intention towards green products. A correlation coefficient of zero
indicates that no linear relationship exists between two variables, and a corre-
lation coefficient of −1 or +1 indicates a perfect linear relationship (Brooks
2008). Correlation between variables reveals strong relations of price sensi-
tivity, brand consciousness, product availability and product benefits with the
purchase intention towards green products (all the values greater than 0.5:
Mukaka 2012). There exists a significant relationship between price sensitivity
and purchase intention with correlation value 0.736. There also exists a signifi-
cant relationship between brand consciousness and purchase intention with

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 Impact of brand consciousness, perceived quality of products, price sensitivity...

correlation value 0.747. product awareness and Product benefits have correla-
tion values 0.705 and 0.750 with purchase intention, respectively.

Price Brand Product Product Purchase

sensitivity consciousness availability benefits intention
Price 1
sensitivity
Brand 0.221** 1
consciousness
Product 0.424** 0.330** 1
availability
Product 0.433** 0.412** 0.321** 1
benefits
Purchase 0.736** 0.747** 0.705** 0.750** 1
intention
Table 2:  Correlation between price sensitivity, brand consciousness, product aware-
ness, product benefits and purchase intention.
Note: **Correlation is significant at the 0.01 level (two-tailed).

The results show that the correlation between the predictor variables, i.e.,
price sensitivity, brand consciousness, product availability and product benefits
is not very high (none of the values is greater than 0.5: Mukaka 2012; Brooks
2008). Hence no co-linearity is found; the regression equation can be accepted.
Co-linearity occurs when predictor variables in a multiple regression have a
non-zero correlation. Correlation values between 0.00 and 0.50 are consid-
ered somewhat negligible (Mukaka 2012). Simple regression analysis has been
carried out to understand the relationship different dimensions, which are
price sensitivity, brand consciousness, product availability and product benefits,
with purchase intention of the consumers towards green products.
Simple linear regression analysis has been used for empirically testing the
research Hypothesis 3. Simple linear regression is useful for finding the rela-
tionship between two variables where one is the predictor variable and the
other is the dependent variable (Hair et al. 2009). The dependent variable in
this case is purchase intention and the predictor variables are price sensitivity,
brand consciousness, product awareness and product benefits.

Linear regression analysis

The following equations, regressing the dependent variable separately on the
four independent variables, were used to estimate the regression coefficients,
βi (i: 1…4):

Y = A0 + β1 X1 + µ

Y = A0 + C2 X2 + µ

Y = A0 + β3 X3 + µ

Y = A0 + β4 X4 + µ

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Sargam Bahl Walia | Harish Kumar | Naveen Negi

Where:
Y: Purchase intention (dependent variable); A0: constant; X1: price sensi-
tivity; X2: brand consciousness; X3: product awareness; X4: product benefits;
and µ, the error term.

Regression Std. error Significance

Independent coefficients of the levels of Adjusted Durbin–
variables (β) estimates estimates R R2 R2 Watson
Constant
Price sensitivity 0.616 0.77141 0.000 0.736 0.541 0.540 1.493
Brand consciousness 0.679 0.93423 0.000 0.747 0.558 0.557 1.497
Product awareness 0.613 0.83406 0.000 0.705 0.497 0.495 1.496
Product benefits 0.612 0.92982 0.000 0.750 0.563 0.562 1.465
Table 3:  Summary of the results for sensitivity and purchase intention.

The above table  shows a summary of the results of the multiple regres-
sion analysis. These are the values for the regression equations for predicting
the dependent variable from the independent variable. The regression equa-
tions are as follows:

Purchase intention = 1.686 + 0.616 (price sensitivity) + 0.018

Purchase intention = 1.552 + 0.679 (brand consciousness) + 0.027

Purchase intention = 1.684 + 0.613 (product awareness) + 0.020

Purchase intention = 1.662 + 0.612 (product benefits) + 0.024

With the coefficient as 0.616, the mean response value for purchase inten-
tion increases by 0.616 for every one unit change in price sensitivity with the
standard error as 0.018, with the coefficient as 0.679, the mean response value
for purchase intention increases by 0.679 for every one unit change in brand
consciousness with the standard error as 0.027, with the coefficient as 0.613,
the mean response value for purchase intention increases by 0.613 for every
one unit change in product awareness with the standard error as 0.020, with
the coefficient as 0.612, and the mean response value for purchase inten-
tion increases by 0.612 for every one unit change in Product benefits with the
standard error as 0.024.
The table provides the R and R2 values. The R value represents the simple
correlation and is 0.736 (the ‘R’ column), which indicates a high degree of
correlation. The R2 value (the ‘R2’ column) indicates how much of the total
variation in the dependent variable. Purchase intention can be explained by
the independent variable. In this case, approximately 54% variation in the
purchase intention with R value 0.736 can be explained by price sensitivity,
which is quite substantial to test a model that predicts human behaviour.
Durbin–Watson (DW) statistics are used to test the autocorrelation. If DW=2
and near 2, there is no autocorrelation in the residuals (Brook 2008). The

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 Impact of brand consciousness, perceived quality of products, price sensitivity...

DW value in these data is 1.493, which is close to 2. The regression models

assume that the error deviations are uncorrelated. Approximately 55.8% vari-
ation in the purchase intention, with R value 0.747, can be explained by brand
consciousness, which is quite substantial to test a model that predicts human
behaviour. The DW value in these data is 1.497, which is close to 2. The regres-
sion models assume that the error deviations are uncorrelated. Approximately
49.7% variation in the purchase intention, with R value 0.705, can be explained
by product awareness, which is quite substantial to test a model that predicts
human behaviour. The DW value in these data is 1.496, which is close to 2.
The regression models assume that the error deviations are uncorrelated.
Approximately 56% variation in the purchase intention, with R value 0.750,
can be explained by product benefits, which is quite substantial to test a model
that predicts human behaviour. The DW value in these data is 1.465, which is
close to 2. The regression models assume that the error deviations are uncor-
related. All four hypotheses are accepted in the current study.

CONCLUSION
It is apparent from the results of the analysis that price sensitivity, brand
consciousness, product availability and product benefits have a relatively
significant influence on consumers’ purchase intention while buying ‘green’
products. Regression analysis results show that the value of R2 in all four cases
was quite significant and it was evident that price sensitivity, brand conscious-
ness, product availability and product benefits have substantial weightage in
predicting purchase intention of the consumers towards green products.

Limitations of the study

The study is confined to understanding consumer attitudes in Dehradun
district. It is affected by the destination growth. The study is confined to
FMCG. Consumer attitude towards ‘green’ products varies between industries.
The lack of awareness about the topic was envisaged as the biggest challenge
in the survey.

Implication for research and practice

The research provides knowledge about how different variables affect the
purchase intention of the consumers towards green products. This information
on brand consciousness, perceived quality of products, price sensitivity and
product availability has relative importance for organizations and consum-
ers who are environment sensitive and are concerned about the ecological
balance. The FMCG sector represents a large sector of the economy, making
this study more meaningful and resulting in practical implications. It shall
help the organizations in strategy building and re-evaluation of approach to a
‘green’ flowchart.

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Walia, Sargam Bahl, Kumar, Harish and Negi, Naveen (2020), ‘Impact of brand
consciousness, perceived quality of products, price sensitivity and product
availability on purchase intention towards “green” products’, International
Journal of Technology Management & Sustainable Development, 19:1,
pp. 107–118, doi: https://doi.org/10.1386/tmsd_00018_1

CONTRIBUTOR DETAILS
Sargam Bahl Walia is assistant professor of marketing at Graphic Era Hill
University in Dehradun, Uttarakhand, India. Her Ph.D. thesis was entitled
‘Consumers’ attitude and purchase intention towards “green products”: A
study of selected FMCGs’, and was submitted to the Department of Commerce
at HNB Garhwal University (a central government University).
Contact: Graphic Era Hill University, Bell Road, Clement Town, Dehradun,
Uttarakhand-248002, India.
E-mail: bahl.sargam@gmail.com

https://orcid.org/0000-0002-9389-6023

Harish Kumar (MBA) is assistant professor of marketing at Graphic Era Hill

University in Dehradun, Uttarakhand, India. He is currently a Ph.D. candidate
at I. K. G Punjab Technical University.
Contact: Graphic Era Hill University, Bell Road, Clement Town, Dehradun,
Uttarakhand-248002, India.
E-mail: harishkumar1211@gmail.com

https://orcid.org/0000-0002-9967-1247

Naveen Negi (MBA) is assistant professor of marketing at Graphic Era Hill

University in Dehradun, Uttarakhand, India.
Contact: Graphic Era Hill University, Bell Road, Clement Town, Dehradun,
Uttarakhand-248002, India.
E-mail: naveennegi7895@gmail.com

https://orcid.org/0000-0002-4211-7245

Sargam Bahl Walia, Harish Kumar and Naveen Negi have asserted their right
under the Copyright, Designs and Patents Act, 1988, to be identified as the
authors of this work in the format that was submitted to Intellect Ltd.

118   International Journal of Technology Management & Sustainable Development