Emerging Market Consumers’ Environmental

Awareness Purchasing Intention Model

Ardilla Ayu Dewanti Ridwan, Fanny Setiawan, Hizkia Davino Gratia
Saragih, Mokhamad Nasyih Aminulloh, Phillo Putra Guntur Satiadhi
Department of Business Management, Universitas Prasetiya Mulya,
Jakarta, Indonesia
2020

Abstract
Purpose - This paper purposed to assess the effects of environmental awareness factors on
emerging markets consumers’ purchasing intention, further more we would like to have
better understanding how significant are these factors could be used in market penetration
activities. Environmental awareness factors is tested within the context of purchasing
recycled furniture as a subject of our research since this furniture product are considered as
primary needs of emerging consumers so we expect to get more accurate relation of
environmental awareness and purchase intention of emerging market consumers, , we also
include price as a determinant factor that is commonly adopted by emerging markets
consumers such as perceived qualityself-image, and price. Further, this paper explains the
relative contribution of general environmental awareness factor combined with the specific
factor of furniture purchase and price variable to purchase intentions of emerging market
customers.
Design/Methodology/Approach - Our research involved a survey of 394 respondents in
Greater Jakarta, Indonesia as an emerging market for recycled furniture products. The data
analyzed using regression analysis to find the correlation between our constructs and
purchase intention.
Findings - In overall environmental awareness in EAPIM such as attitude, subjective norms,
and perceived control have limited influence in emerging consumers purchase intention,
consumers more focus in specific factors in furniture purchase such as perceived quality,
self-image, and price, however combined factor still have limited impact (only 20.08
percent) on emerging market consumers’ purchase intention toward basic need
environmentally friendly products represented by recycled furniture. We could understand
that customers in emerging markets focus more on product attributes such as quality and
price as determinants of purchase intention, while environmental features were not their
consideration yet.
Originality/value - This is the first study to examine the relationship environmental
awareness towards the purchase intention of emerging market customers especially in
Indonesia furniture sectors represented by recycled furniture. This study contributes to the
marketing strategy in penetrating emerging market customers, how to communicate relevant
product attributes, and what is their most consideration in determining their purchase
intention. Environmentally friendly furniture might be not just recycled products, furniture
players could explore environmentally friendly business systems such as Product Service
System or simply renting.
Keywords Theory Planned Behavior, Emerging Market, Environmental awareness, Pur-
chase Intention, Recycled Furniture, Regression.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

Paper Type Research paper

1. Introduction
Emerging markets have become a point of interest throughout the world economy. Their
high economic growth and market demographic expansion have dramatically increased their
attractiveness to firms from advanced markets to penetrate these markets (United Nations
Conference on Trade and Development, 2013). Today, Indonesia is the world’s fourth most
populous nation, the world’s 10th largest economy in terms of purchasing power parity, and
a member of the G-20. An emerging lower middle-income country, Indonesia has made
enormous gains in poverty reduction, cutting the poverty rate by more than half since 1999,
to 9.4% in 2019. Global companies have serious concern in their environmentally friendly
product, the importance of taking an environmentally friendly approach is often emphasized
with regard to business strategies. Declaring a company to be ‘environmentally friendly’
seems to have become an important competitive tool (Krause, 2015) .
The problem is that when global companies try to penetrate an emerging consumer market
with their environmentally friendly product it is unclear how that attribute could lead to
consumers purchase intention. We also understand that despite increasing interest and
concern for the environment, several factors underlie the low level of consumer acceptance
of environmentally friendly products. The concept of green consumerism must be
investigated in accordance with the perceptions, attitudes, values and behavior of certain
groups (Pedersen and Neergaard, 2006). Emerging market consumers also have different
characteristics compared to developed countries and need special approaches to penetrate.
Purchase behavior is the decision processes and acts of people involved in buying and using
products. Consumer behavior is defined as the study of the buying units and the exchange
processes involved in acquiring, consuming, and disposing of goods, services, experiences
and ideas (Asshidin, Abidin, and Borhan, 2015).
Referring to previous research on the impact of environmental awareness on the intention to
buy environmentally friendly products in developed countries in the form of cars and
purposed to place, develop, and test the Environmental Awareness Purchasing Intention
Model (EAPIM), as well as to see whether the price affects the intention to buy (Lu Xu,
Prybutok, and Blankson, 2017), it is found that there is a gap for further research on the same
topic in developing countries, we also consider to use recycled furniture as a subject of our
research since this furniture product are considered as primary needs of emerging consumers
so we expect to get more accurate relation of environmental awareness and purchase
intention of emerging market consumers.

2. Literature Review
In determining a product as an environmentally friendly product, each consumer has a wide
variety of choices (Bocken, Morgan, and Evans, 2013). Environmentally friendly or green
are terms that refer to any product, service or policy which is not harmful to nature or has
minimal negative impacts (Kianpour, Jusoh, and Asghari, 2013). Included in our selected
reference journals, it examines the influence of environmental problems on consumers'
decisions to choose an environmentally friendly product at the time of purchase by adjusting
social identity, self-image, and status (Janssen and Jager, 2002).
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

Emerging countries are those stated as low-income and lower-middle income as per World
Bank Country Classification. For the current 2019 fiscal year, lower middle-income
economies are those with a GNI per capita between US$996 and US$3,895, calculated using
the World Bank Atlas method. Indonesia is considered as Emerging country and defined as
a lower middle-income country. Although, for the current 2021 fiscal year, lower middle-
income economies are those with a GNI per capita between $1,036 and $4,045 and upper
middle-income economies are those with a GNI per capita between $4,046 and $12,53.
Indonesia is considered as an upper middle-income country but only slightly above the GNI
per capita threshold with GNI per capita $4,050 (World Bank, 2020).
The MSCI Emerging Markets Index stands for Morgan Stanley Capital International
(MSCI), and is an index used to measure equity market performance in global emerging
markets. It is just one index created by MSCI, which has been constructing and maintaining
them since the late 1960s. The MSCI Emerging Markets Index captures large and mid cap
representation across 26 Emerging Markets (EM) countries. With 1,385 constituents, the
index covers approximately 85% of the free float-adjusted market capitalization in each
country. Indonesia is listed as one of emerging market countries based on the MSCI
classification. (MSCI, 2020).
Then emerging market consumers have different purchase behavior compared to developed
countries consumer, Purchase behavior is the decision processes and acts of people involved
in buying and using products. Consumer behavior is defined as the study of the buying units
and the exchange processes involved in acquiring, consuming, and disposing of goods,
services, experiences and ideas. Consumer behavior can be defined as the behavior that
consumers display in searching for, purchasing, using, evaluating and disposing products
and services that they expect will satisfy their needs. It is an interdisciplinary science that
involves psychology, sociology, social psychology, cultural anthropology and economic
concepts. (Asshidin, Abidin, and Borhan, 2015). Buyer intention (purchase intention) is a
decision made by the customer after analyzing the reasons for buying a product brand (Shah
et al., 2012). Customer decisions in analyzing a product brand are influenced by external
and internal factors (Gogoi, 2013). Customer intention in analyzing a product brand through
6 (six) processes, namely awareness of the desired product (awareness), knowledge of the
brand (knowledge), interest (preference), trust (persuasion), and buying (purchase) (Kotler
& Armstong, 2014). According to (Gogoi, 2013), customers for a product will decrease if
the product is considered cheap, product packaging is too simple, and there is minimal
information about the product. Purchase intention is a decision made by consumers to buy a
product or service because they need or like the function of the product or service provided.
Purchase intention can also be explained as a customer's desire to buy the same product
because they know the function of the product Mahadi and (Sukati, 2012). Other
explanation, purchase intention is a process in which consumers analyze their knowledge of
products, compare products with other similar products and make decisions about products
to be purchased (Raza et al., 2014). Purchase intention is an option made by customers after
analyzing several similar products. Customers will make product selection according to their
behavior, analysis results (product function) and habits (behavior). Purchase intention is an
intention to buy, consideration of buying and recommending buying the product to other
people. (Roozy et al. ,2014). Purchase intentions are routinely measured and used by
marketers as input for sales or market share estimates.
Purchase intentions are frequently used to forecast sales of existing products and services.
While, previous studies have shown that intention is one of the predictive of sales. Besides,
the measurements of purchase intentions have been pervasive in modern marketing. Market
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

research firms often use purchase intentions to forecast new products’ sales potential.
Moreover, purchase intention measures have been used frequently to identify products
buying probability within defined time periods. Purchase intentions have been recognized
as a part of consumer behaviors. Therefore, firms need to identify what makes a consumer
want to purchase a product. Consumer purchase behavior may change from time to time due
to factors such as social lifestyles, country’s industrialization and influence of globalization
that might have affected their judgment towards the products.
TPB provides a theoretical foundation in investigating the relationship between consumer
beliefs and behavioral intention (Ajzen, 1991). This theory explains that attitudes, subjective
norms, and perceived behavioral control shape intentions and behavior (Sheppard et al.,
1988). Buyer intention (purchase intention) is a decision made by the customer after
analyzing the reasons for buying a product brand Shah et al., (2012). Customer decisions in
analyzing a product brand are influenced by external and internal factors (Gogoi, 2013).
Customer intention in analyzing a product brand through 6 (six) processes, namely
awareness of the desired product (awareness), knowledge of the brand (knowledge), interest
(preference), trust (persuasion), and buying (purchase) (Kotler & Armstong, 2014).
According to (Gogoi, 2013), customers for a product will decrease if the product is
considered cheap, product packaging is too simple, and there is minimal information about
the product.
Therefore, this study proposes ECOSCALE by contextualizing the construct from the
literature. By considering environmental attitudes, subjective environmental norms,
perceptions of control and price towards environmentally responsible behavior, perceived
quality and self-image simultaneously, this study explores the role of these factors in the
decision-making process of green furniture purchases. The findings from this study will help
executives decide about how to allocate resources based on the value of their consumers.

3. Hypotheses Development
Based on The Theories of Reasoned Action and Planned Behavior (Ajzen and Fishbein,
2005), there are several fundamental assumptions:
1. Intention is the immediate antecedent of actual behavior.
2. Intention, in turn, is determined by attitude toward the behavior, subjective norm, and
perceived behavioral control.
3. These determinants are themselves a function, respectively, of underlying behavioral,
normative, and control beliefs.
4. Behavioral, normative, and control beliefs can vary as a function of a wide range of
background factors.
The model previously described suggests that the relative contributions of attitudes,
subjective norms, and perceptions of control to the prediction of intentions can vary as a
function of the behavior and the population under consideration.

3.1. Environmental Attitude

Attitude measures the extent to which an individual has a positive or negative assessment
for doing a behavior (Yazdanpanah and Forouzani, 2015). Apart from the consumers’
concerns for the environment, their specific beliefs and attitudes towards the environment
have been widely acknowledged as a significant predictor of the buying decision of green
products (Michaud, 2011). Consumers’ positive attitude towards recycled products and their
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

buying decisions may be delimited by several other factors including lack of alternative, cost
and inconsistent information (Vermeir and Verbeke, 2006).
Accordingly, the following hypothesis is suggested:
H.1. Environmental attitude is significantly positively associated with intentions to
purchase an environmentally-friendly furniture / Environmental attitude has a
positive impact on intention to purchase an environmentally-friendly furniture.

3.2. Environmental Subjective Norms

Environmental subjective norm refers to the perceived expectations of pro-environmental
behavior from people such as peers, family members, and colleagues (Ajzen and Fishbein,
2005). Norms help individuals in managing their behavior in accordance with society's set
practices and values, it helps them in aligning their behavior according to what would be
considered as appropriate and acceptable in social context. Limited knowledge and lack of
awareness among peer groups can lead to misunderstand green concerns. Subjective norm
captures the individual’s behavior in reaction to what other people think (Tonglet et al.,
2004). Subjective norms refers to the social pressure exerted on an individual from family
members, friends, teachers, etc., to perform a particular behavior or to execute a particular
decision (Echegaray and Hansstein, 2017; Ham et al., 2015). It is based on the motivations
provided by those important people in one’s life. In emerging markets, the enforcement of
green practices by the government is poor. Society, government and consumers lack
commitment towards environmental-friendly practices. The influence of subjective norms is
presumed to capture the social pressure a decision-maker feels to make a purchase or not
(Bagozzi et al., 2000). Accordingly, the following hypothesis is suggested:
H.2. Environmental subjective norms are insignificantly positively associated with
intentions to purchase environmentally-friendly furniture / Environmental subjective
norms are not significant predictors with intentions to purchase environmentally-
friendly furniture.

3.3. Perceived Control

Perceived control is described as the degree of easiness or difficulty perceived by an
individual in doing a behavior (Yadav and Pathak, 2016; Son et al., 2013). This factor refers
to the availability of resources like money and time which are required for approaching a
behavior. It is one of the behavior intention factors which has a significant impact on the
purchase intention. Accordingly, the following hypothesis is suggested:
H.3. Perceived control is significantly positive associated with intentions to purchase any
recycled furniture / Perceived control has positive impact on intention to purchase
any recycled furniture.

3.4. Perceived Quality

Perceived quality of a product becomes the estimation made by the consumer relying on the
whole set of basic as well as outer dimension of the product or the service (Grunert et al,
2001). Product perceived quality directly influences purchase intention. If the quality is high,
the purchase intention of the customer is also high (Rust and Oliver, 1994). The customers
considered perceived quality as a more specific concept based on product and service
features.
H.4. Perceived quality is significantly positive associated with intentions to purchase a
recycled furniture / Perceived quality has positive impact on intention to purchase a
recycled furniture
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

3.5. Self-Image
Self-image is argued to affect consumer’s purchase motivation through the activation and
operation of self-consistency motive or consumers’ need to act in ways that are consistent
with their self-perception (Sirgy, 1985). The perceptions of self are closely related with the
personality that individuals tend to buy brands whose personalities closely correspond to
individuals’ own self-images (Schiffman and Kanuk, 2000). When the image of a typical
consumer of a product, brand and store matches one or more of the self-image of a person,
the individual tends to purchase that product (Shin et al., 2016). This is because as the
environmental issues are becoming more serious in different countries, green consumption
may be an effective solution (Wu and Chen, 2014; Nguyen et al., 2019). Under such
contexts, green product consumers may want to express their self-images via the products
they buy (Sparks and Shepherd, 1992; Oliver and Lee, 2010).
H.5. Self-image is significantly positive associated with intentions to purchase a recycled
furniture / Self Image has positive impact on intention to purchase an recycled
furniture

3.6. Price
Price is one of the major barriers for the adoption of recycled furniture. Customers have
some perceptions about the product quality, price and styles before going to purchase the
product. After using a product, purchase intention increases as well as decreases, because it
has direct relations which affect each other’s.
H.6. Price is significantly positive associated with intentions to purchase recycled furniture
/ Price has a positive impact on intention to purchase recycled furniture.

3.7. Intention to purchase recycled furniture

Purchase intentions are frequently used to forecast sales of existing products and services.
Previous green marketing studies have conveyed that consumers’ attitude regarding eco-
friendly behavior significantly influences their environmental knowledge and green product
purchase intention (Aman et al., 2012; Barber et al., 2009; Flamm, 2009). Correspondingly,
this result is comparable to the research of Yadav and Pathak (2016), which asserted that
consumer attitude toward green products significantly influences his or her green purchase
intention. Parallel to these findings, Paul et al. (2016) noted that the attitude of Indian
consumers significantly predicts their purchase intention of a green product. Indeed, a study
by Mostafa (2009) showed that consumers with positive attitudes toward green products are
more apt to develop a stronger predisposition to purchase green products by referring to its
green brands and rely heavily on green brand positioning. A research effort by Teng (2009)
further specified that consumers with a positive attitude toward a brand tend to have a
stronger purchase intention to buy the brand. In this journal, we add some conditions with.
Based on the discussion above, we present the conceptual framework in Figure

4. Methodology
The sampling for this research is the Indonesian people which in this context is one of
emerging countries that will be used as a research object. This survey was conducted by
distributing questionnaires online and there were 394 respondents who filled in with the
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

demographic profile attached to table 1. A total of 34 variables were considered for the study,
which were gathered from previous literature related to purchase intention in various areas.
The measurement of environmental attitude was defined from ECOSCALE (Stone et al.,
1995). Compound measures for attitude and behavior can help develop more general and
reliable measures with more predictive power. This scale measures: attitude, awareness,
ability to act and knowledge regarding the environment (Weigel and Newman, 1976). An
individual's behavioral intention depends on his or her attitude towards the behavior and the
subjective norms associated with the behavior. Among the many different questions
pertinent to consumer behavior, one of the most difficult to explain is why a consumer makes
a purchase, since such answers are seldom simple or clear. However, the question is crucial
since a firm needs to know what really triggers a consumer to purchase a product (Ghazali
et al., 2008). The concept of buying intentions reflects consumers’ foreseeable behavior in
short term future buying decisions. Purchase intention is one of a very small set of variables
that find routine application in consumer research investigations undertaken for a variety of
different purposes (e.g., new product concept and copy tests; segmentation and tracking
studies) and covering a broad range of products and services. For instance, what products or
brands the consumer will buy on his or her next shopping trip. More specifically, buying
intention is a future projection of consumers’ behavior that will significantly contribute to
the configuration of attitudes.
The questionnaire was constructed with a seven-point Likert scale ranging from 1 (strongly
disagree) to 7 (strongly agree) in measuring the items of the constructs. The Likert scale is
simple to develop and widely used, it is scored by assigning a weight to each point along the
scale, and an individual’s score is the average across all items (Likert, 1932). Following
previous research on purchase intention, this study adopted a non-probability sampling
technique in selecting respondents. Non-probability sampling, the probability of selecting a
single individual is not known, it is assumed that potential members of the sample do not
have an equal and independent chance of being selected (Salkind, 2009).

FIGURE 1: Research Model

5. Result
5.1. Demographic Characteristics of The Respondents
Among 394 respondents in the Greater Jakarta area, Indonesia, 39 percent were male, and
61 percent were female. 82 percent of them were graduates from university with an age range
dominated by over 26 years old. By income group 65 percent of them were getting income
with range IDR 5 - 20 Million.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

The detailed demographic characteristics of the respondents were presented in the table
below.
TABLE 1
Respondents’ Demographic Profile (N = 394)
Frequency % Cumulative
Gender
Female 153 39% 39%
Male 241 61% 100%
Age Group
18-22 years 6 2% 2%
23-25 years 47 12% 13%
26-29 years 106 27% 40%
30-35 years 82 21% 61%
> 35 years 153 39% 100%
Education
Diploma 39 10% 10%
SMA/SMK 15 4% 14%
Strata 340 86% 100%
Income Group
< 5 million 44 11% 11%
5 - 10 million 155 39% 51%
11 - 20 million 100 25% 76%
21 - 50 million 74 19% 95%
> 50 million 21 5% 100%

5.2. Reliability and Factor Analysis

In this research we employ Factor analysis – a data reduction technique was used to perform
the analysis on the data comprising responses on 34 statements in 7 constructs. Before
moving into the analysis, Reliability of the measurement model was verified by Cronbach’s
α criteria. The result that showed α < 60.0% indicates unsatisfactory internal consistency
reliability (Malhotra & Birks, 2007, p.358). The reliability analysis based on Cronbach’s
Alpha value is carried out for the entire data set. Table II showed that the Alpha value for
the different variables indicates good reliability as the results are higher than the accepted
value of 60.0%.
TABLE 2
Cronbach Alpha Value
No Construct Alpha
1 Environmental Attitude 69.1%
2 Environmental Subjective Norms 83.8%
3 Perceived Control toward Environmentally Responsible Behavior 72.0%
4 Perceived Quality 86.8%
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

5 Self-image 83.1%
6 Price 78.0%
7 Purchase Intention 85.0%

The factor loading criteria are summarized which must be considered extracting factors from
data. Factor loading criteria:
● Each factor must have at least three item loadings ≤ 0.3;
● Individual items must have at least one loading ≤ 0.3;
● In case of cross loadings, the item will be placed only in the factor on which it has higher
factor loadings.
● If cross loading is ≥ 0.5 on both factors, the item must be considered for deletion
Suitability of sample size for factor analysis should be tested by Kaiser-Meyer-Olkin
Measure of Sampling Adequacy (KMO). It is recommended when the cases to variable ratio
are less than 1:5. The KMO ranges from 0 to 1, with 0.50 considered suitable for factor
analysis.

TABLE 3
Environmental Attitude Factor Analysis
Factor Explained
CODE Environmental Attitude KMO Alpha
Loading Variance
V1_1 People who litter should be fined 0.602
The amount of energy I use has
V1_2 absolutely no impact on 0.741
environmental conditions.
There is nothing the community 52.280 72.6% 69.1%
V1_3 can do to help stop 0.795
environmental pollution.
There’s no point worrying
V1_4 0.740
about environmental problems

As depicted on Table III, all items of environmental attitude showed to have good values
and therefore none of them were excluded. This is also supported by the explained variance
of 52.80%. The KMO (86.9%) and the Alpha (89.2%) provide strong values for this variable.

TABLE 4
Environmental Subjective Norms
Environmental Subjective Factor Explained
CODE KMO Alpha
Norms Loading Variance
My family and close friends are
V2_1 obliged to tell others about 0.826
environmental issues.
My family and close friends are
V2_2 obliged to find out about 0.871
environmental issues.
My family and close friends are 67.735 80.8% 83.8%
obliged to support organizations
V2_3 0.799
that work in the environmental
sector.
My family and close friends
V2_4 should have knowledge of 0.793
environmental issues.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

As depicted on Table IV, all items of environmental subjective norms showed to have good
values and therefore none of them were excluded. This is also supported by the explained
variance of 67.73 %. The KMO (80.8%) and the Alpha (83.8%) provide strong alpha values
for this variable.

TABLE 5
Perceived Control
Environmental Subjective Factor Explained
CODE KMO Alpha
Norms Loading Variance
It is easy for me to do activities
that are environmentally
V3_1 0.742
friendly (eg energy conservation
and recycling, etc.).
I have control over my actions
V3_2 0.573
to protect the environment.
Whether to do environmentally
friendly activities (eg energy
V3_3 0.507
conservation and recycling, etc.)
is my decision. 48.426 74.4% 72.0%
I have the ability to do activities
that are environmentally
V3_4 0.832
friendly (eg energy conservation
and recycling, etc.).
I have control over
environmentally friendly
V3_5 activities (eg energy 0.770
conservation and recycling,
etc.).

As depicted on Table V, all items of perceived control showed to have good values and
therefore none of them were excluded. This is also supported by the explained variance of
48.42%. The KMO (74.4%) and the Alpha (72%) provide strong values for this variable.

TABLE 6
Perceived Quality
Environmental Subjective Factor Explained
CODE KMO Alpha
Norms Loading Variance
Recycled furniture has high 0.710
V4_1 quality attributes.
Recycled furniture has 0.801
V4_2 durability attributes.
V4_3 Recycled furniture is interesting 0.697
Recycled furniture has luxury 0.770 56.36 89.9% 86.8%
V4_4 attributes
V4_5 Recycled furniture is reliable 0.818
V4_6 Recycled furniture is safe to use. 0.695
Recycled furniture has better 0.752
V4_7 features than other models.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

As depicted on Table VI, all items of perceived quality showed to have good values and
therefore none of them were excluded. This is also supported by the explained variance of
56.36%. The KMO (89.9%) and the Alpha (86.8%) provide strong values for this variable.

TABLE 7
Self-Image
Environmental Subjective Factor Explained
CODE KMO Alpha
Norms Loading Variance
Using recycled furniture will 0.628
V5_1
ruin my image.
Using recycled furniture 0.863
V5_2
enhances my positive image.
Using recycled furniture can 0.905 66.547 75.3% 83.1%
V5_3 raise a positive image of what I
believe.
Using recycled furniture will 0.838
V5_4
have a positive effect on me.

As depicted on Table VII, all items of self-image showed to have good values and therefore
none of them were excluded. This is also supported by the explained variance of 66.54%.
The KMO (75.3%) and the Alpha (83.1%) provide strong values for this variable.

TABLE 8
Price
Environmental Subjective Factor Explained
CODE KMO Alpha
Norms Loading Variance
I am willing to pay more to buy 0.674
V6_1
recycled furniture.
I am willing to pay more if 0.764
V6_2 recycled furniture is good for
my health.
I am willing to stick with 0.595
V6_3 recycled furniture that has a
well-known brand. 53.788 76.6% 78.0%
I am willing to pay a premium 0.801
for the unique features of
V6_4
recycled furniture, such as
design and materials.
I am willing to allocate an 0.810
V6_5 additional annual fund to buy
recycled furniture.

As depicted on Table VIII, all items of price showed to have good values and therefore none
of them were excluded. This is also supported by the explained variance of 53.78%. The
KMO (76.6%) and the Alpha (78%) provide strong values for this variable.

TABLE 9
Purchase Intention
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

Environmental Subjective Factor Explained

CODE KMO Alpha
Norms Loading Variance
I will buy recycled furniture even
V7_1 though the cost is higher than .612
conventional furniture products
I will buy recycled furniture even
V7_2 though the quality is lower than .843
conventional furniture products.
I will buy recycled furniture even 53.788 76.6% 78.0%
V7_3 though the durability is lower than .862
conventional furniture products.
I will buy recycled furniture even
V7_4 .825
if the design is less attractive.
I will buy recycled furniture even
V7_5 .798
if it is less comfortable.

As depicted on Table IX, all items of purchase intention showed to have good values and
therefore none of them were excluded. This is also supported by the explained variance of
62.9%. The KMO (80.6%) and the Alpha (85.0%) provide strong values for this variable.

5.3. Analysis Results

Multiple regressions were used to test the relationships between independent variables and
a dependent variable. The research model has six independent variables from EAPIM
combined with specific attribute in furniture purchase (Environmental Attitude,
Environmental Subjective Norms, Perceived Control toward Environmentally Responsible
Behavior, Perceived Control toward Environmentally Responsible Behavior, Self-image and
Price) expected to influence the dependent variable (Purchase Intention). We calculate the
R-squared value to estimate the goodness of fit of the conceptual model.

FIGURE 2: Analysis Results

As shown in Figure 2, the results showed that Environmental Attitude (β = - 0.202, p < 0.05)
had a negative significant relationship with Purchase Intention. Self-image (β = -.027, p >
0.05) also has a negative relationship with purchase intention but it is insignificant because
p > 0.05. The negative beta value indicates that when the Environmental Attitude, and Self-
image are low, this could impact the consumer purchase intention.
Perceived Quality (β = 0.153, p < 0.05) and Price (β = 0.404, p < 0.05) have positive
significant relationship with purchase intention. Meanwhile Environmental Subjective
Norms (β = .015, p > 0.05) and Perceived Control toward Environmentally Responsible
Behavior (β = .011, p > 0.05) have insignificant positive relationship with purchase intention.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

6. Discussion
This result indicates the purchase intention of recycled furniture products as a representation
of environmentally friendly products of primary needs of the emerging market consumers
are low and only significantly influenced by Perceived Quality and Price only. This indicates
Indonesian consumers have less environmental concerns for primary needs, because of how
effective measures to promote consumers’ purchase intention rely on coordinated factors
built on multiple pillars instead of single factors.

TABLE 9
Structural Estimates
Standardized
Coefficients

Model Beta t Sig. Result

1 (Constant) Influencing Hypothesis 4.178 .000

to relationship

Significantly -.202 -3.512 .001 Significantly

Environmental Purchase
positively negatively
Attitude Intention
associated associated

Environmental Insignificantly .015 .256 .798 Insignificantly

Purchase
Subjective positively positively
Intention
Norms associated associated

Perceived .011 .186 .852

Control toward Significantly Insignificantly
Purchase
Environmentally positively positively
Intention
Responsible associated associated
Behavior

Significantly .153 2.496 .013 Significantly

Perceived Purchase
positively positively
Quality Intention
associated associated

Significantly -.027 -.433 .665 Insignificantly

Purchase
Self-image positively negatively
Intention
associated associated

Significantly .404 7.343 .000 Significantly

Purchase
Price positively positively
Intention
associated associated

Table XII presents the path coefficients and the corresponding t-scores of the structural
equation. R2 is 20.08 percent, indicating that 20.08 percent of the variation of purchase
intention can be explained by the variation of the independent variables. The t-scores of the
corresponding path coefficients evaluate the significance of the independent variable.
Referring to our hypothesis that has been mentioned, the results show that environmental
attitude, perceived quality and price has a positive impact on intention to purchase green
products. Surprisingly, the results show an insignificant relationship between environmental
subjective norms, self-image, and perceived control on intention to purchase green products.
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

Furthermore, to have better understanding about how environmentally awareness factor

significance, we performed a series of reduced models where one of the components is
removed from the full model. The purpose of performing reduced models is to evaluate the
contribution of the environmental awareness to the research model compared to self-image,
perceived quality and price. The reduced model was conducted by removing environmental
awareness factors. R2 was reduced to 18.1 percent. In this case if we compare with original
output, the difference was only 1.98 percent (or only contribute in 9.86 percent from total
R2) in this we could conclude that environmental awareness not significantly influencing
purchase intention of emerging market customers to environmentally friendly products in
the form of recycled furniture.
The contribution of this study is as follows. First, this journal is the first to explore
theoretically and empirically the determinants of emerging market consumer purchase
intention regarding primary needs environmentally friendly products represented by
recycled furniture and then apply the theoretical framework in determining the driver factor
in the Greater Jakarta area. Second, this study provides a comprehensive model by adding
the new variables of price to an integrated model of the TPB and TPR.

6.1. Managerial implications

Marketing managers that try to penetrate emerging market customers on primary needs must
focus on perceived quality and price as the main criteria used by consumers to evaluate
products. For the time being, Indonesian consumers might not take into consideration the
basic needs that benefits the environment in the long term. But this might change in the
future as the awareness grows. For the time being, highlighting environmentally friendly
attributes will not be efficient in promoting their products, but this environmentally friendly
attribute might be utilized as the added value for investors.
Other ways when the product scale was massive, Marketing managers could enhance
purchase intention of an environmentally responsible product, by addressing both
environmental and individual product consequences and benefits. Furthermore, massive
campaigns to change environmental attitudes, communications must elaborate positive
environmental consequences of the product and the negative consequences of non-
responsible products alternatives.

6.2. Research Limitations

The study was limited to considering the purchase intention model of environmentally
friendly primary needs which is represented by recycled furniture. We only consider quality,
self-image and price and resulted to 20.08 percent R2 that indicate there are more important
factor that determining purchase intention of emerging market consumers towards
environmentally friendly produce, some factor such as durability, flexibility, practicality,
and design also have potential in determining the significant factor determining Emerging
Market consumers purchase intention. We also believe that assessing the secondary and
tertiary needs of emerging market consumers will be useful to have complete understanding
about the influence of environmental awareness to their purchase intention.

7. Conclusion
In conclusion environmental awareness in EAPIM such as attitude, subjective norms, and
perceived control combined with specific factors in furniture purchase such as perceived
quality, self-image, and price have limited impact on emerging market consumers’ purchase
intention toward basic need environmentally friendly products represented by recycled
 Emerging Market Consumers’ Environmental Awareness Purchasing Intention Model

furniture. Customers in emerging markets focus more on product attributes such as quality
and price as determinants of purchase intention, while environmental features were not their
consideration yet. However, there are some more parameters to be checked to have a more
comprehensive understanding about what is the driving factor of emerging market customers
in fulfilling their primary needs with environmentally friendly products. However,
marketing managers could use this research result as a reference in determining marketing
strategy in penetrating the market and how they could adjust their existing strategy.

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