consumer purchase intention towards sustainability ...€¦ · consumer purchase intention towards...

Consumer purchase intention

towards sustainability labelled

personal care products

Exposé

Submitted by

Eleonora Aste

European Master in Business Studies

University of Kassel

Kassel, 23rd October 2017

Consumer purchase intention towards sustainability labelled personal care products 2

ABSTRACT

Title:

Consumer purchase intention towards sustainability labelled personal care products

Background:

According to the “Global Industry Cosmetic” magazine, natural and organic personal care

products accounted for one fourth of the beauty market in 2015 and it is estimated an increase

of the segment at a compound annual growth rate of almost 10% through 2019. Indeed, the

market for green and organic personal care products has grown globally, due to an increasing

concern among consumers about health and sustainability issues. In this context, third-party

sustainability labels represent a marketing brand differentiation strategy, which provides a

unique selling proposition and aim to guide consumers in their decision-making process. It is

therefore relevant to investigate the complex structure of variables influencing the purchase of

a labelled product, in order to suggest insights for better-tailored marketing efforts.

Purpose:

The purpose of this study is to gain an understanding of the underlying variables that influence

consumers’ purchase intention of third-party sustainability labelled personal care products by

applying an adapted research model of the well-established Theory of Planned Behavior

(Ajzen, 1991). Hypothesis will be developed based on the original framework, while four

additional determinants will be tested as positive explanatory factors of attitude. Additionally,

the study will investigate the moderating effect of the willingness to pay for sustainability

labelled PCP on the fundamental constructs.

Method:

A quantitative study in form of an online questionnaire will be developed in order to gather

primary data. Responses will be analyzed by structural equation modeling with the application

software SmartPLS.

Keywords:

consumer behavior, theory of planned behavior, personal care products, labeling, sustainability


LIST OF FIGURES

Figure 1. Adapted research model based on the Theory of Planned Behavior by Ajzen (1991).

.................................................................................................................................................. 16

LIST OF TABLES

Table 1. Basic constructs of the Theory of Planned Behavior by Ajzen (1991). .................... 12

Table 2. Short description of the sample of selected representative labels presented in the

questionnaire. ........................................................................................................................... 22

LIST OF ABBREVIATIONS

ATT: Attitude

INV: Involvement

PBC: Perceived Behavioral Control

PCP: Personal Care Product(s)

PEV: Perceived Environmental Value

PHV: Perceived Health Value

PI: Purchase Intention

RQ: Research Question

SEM: Structural Equation Modeling

SN: Subjective Norms

TPB: Theory of Planned Behavior

TR: Trust

TRA: Theory of Reasoned Action

WTP: Willingness to Pay


TABLE OF CONTENTS

LIST OF FIGURES ................................................................................................................ 3

LIST OF TABLES ................................................................................................................. 3

LIST OF ABBREVIATIONS ................................................................................................ 3

1. INTRODUCTION .......................................................................................................... 6

1.1. Background ........................................................................................................... 6

1.2. Problem Statement and Research Question .......................................................... 7

1.3. Purpose and Contribution ..................................................................................... 7

1.4. Structure ................................................................................................................ 8

2. LITERATURE REVIEW ............................................................................................... 9

2.1. Sustainable Consumption, Green Marketing and Third-party Sustainability

Labelling ......................................................................................................................... 9

2.2. Previous studies .................................................................................................. 10

2.3. Theory of Planned Behavior ............................................................................... 11

2.4. Antecedents of Attitudes .................................................................................... 13

2.4.1. Consumers’ perceived values. .............................................................. 13

2.4.2. Trust. ..................................................................................................... 14

2.4.3. Involvement .......................................................................................... 14

3. RESEARCH DESIGN AND HYPOTHESIS ............................................................... 16

3.1. Research Model .................................................................................................. 16

3.2. Development of Hypothesis ............................................................................... 17

3.2.1. Purchase intention. ............................................................................... 17

3.2.2. Antecedents of attitude. ........................................................................ 18

3.2.3. Moderating variable: willingness to pay. ............................................. 19

4. RESEARCH METHODOLOGY.................................................................................. 21

4.1. Research Population and Sampling .................................................................... 21


4.2. Questionnaire development ................................................................................ 21

4.3. Data Analysis ..................................................................................................... 23

OVERVIEW OF CHAPTERS ............................................................................................. 24

WORK PLAN ...................................................................................................................... 25

REFERENCES ..................................................................................................................... 26


1. INTRODUCTION

This chapter firstly outlines the context of the study and defines its research questions,

purposes and contribution. Secondly, it provides an overview of the organization and

structure of the whole work.

1.1. Background

The industry of beauty and personal care products (thereafter PCP) is facing a big market

opportunity worldwide. It has been estimated that the global cosmetics market will garner

$429.8 billion by 2022, registering an annual growth rate of 4.3% during the forecast period

2016-2022 (“Allied Market Research Report”)1. Moreover, in the recent years, the market for

green and organic PCP has grown globally, due to an increasing concern among consumers

about health, safety and sustainability issues (Ghazali, Soon, Mutum, & Nguyen, 2017). The

“Global Industry Cosmetic” magazine has recently published the news that natural and organic

personal care products accounted for one fourth of the beauty market in 2015 and that it is

estimated an increase of the segment at a compound annual growth rate of almost 10% through

2019 (Koetting, 2016). From being a niche market, this sector is likely to enter the mainstream,

because of its rapidly increasing market share.

This trend follows another analogous wave of behavior that has arisen over the last

decades, namely the consumers’ purchase tendency towards organic and green food (Lange,

Wagner, & Zulauf, 2017). This latter trend has been largely investigated in academic research

(see for instance Chen, 2007; Vermeier & Verbeke, 2006; Vermeier & Verbeke, 2008), but

fewer articles has been published on the topic in the PCP industry. Additionally, only few

previous studies, mainly conducted within the Asian market, deal with consumer behavior

towards organic PCP in general (Ghazali et al. 2017; Yeon Kim & Chung, 2011) and do not

focus on those products, which are certified by an independent accredited institution for

sustainability product testing.

1 Retrieved from https://www.alliedmarketresearch.com/cosmetics-market

https://www.alliedmarketresearch.com/cosmetics-market


1.2. Problem Statement and Research Question

Since third-party sustainability labels represent a marketing brand differentiation strategy

and provide a unique selling proposition (Bauer, Heinrich, & Schäfer, 2013), it appears relevant

to investigate this practice in the context of purchase intention towards PCP.

Gaining an understanding and new insights about the complex process that characterizes

the consumer behavior mechanism is important to recognize how it is worth for PCP producers

to the get third-party endorsements and tout the certification on their packaging. Hence, the

research questions around which the present thesis unfolds is the following:

RQ: Which are the underlying variables that influence consumers

to purchase a PCP with a third-party sustainability label?

1.3. Purpose and Contribution

The purpose of this study is twofold. The first purpose is to gain an understanding of the

underlying variables that influence consumers’ purchase intention of third-party sustainability

labelled personal care products by applying an adapted research model of the well-established

Theory of Planned Behavior (Ajzen, 1991). The main hypothesis will be developed based on

the original framework, while four additional determinants will be tested as positive

explanatory factors of attitude towards PCP, and thus, indirectly influencing variables of

consumers’ purchasing intention. Specifically, involvement, trust towards third-party labelling

system/institutions, and customers’ perceived values concerning health and environmental

friendliness will be considered subjective elements of significant impact on attitude.

The second purpose aims at investigating the moderating effect of the willingness to pay

for sustainability labelled PCP on the fundamental constructs forming the original Theory of

Planned Behavior framework.

The research will be carried out in the context of the Italian market. The results achieved

via quantitative analysis will first contribute to the scientific literature in the field of PCP and

can be used as basis for further researches. Managerial implications might also arise to help

PCP businesses to understand the determinants that can influence the purchase intention

towards endorsed sustainable PCP and therefore, better tailor their marketing effort.


1.4. Structure

The present thesis is organized in six main chapters. After this introduction, a literature

review will provide with the theoretical background to better contextualize and support the area

and relevance of the research, as well as to allow readers to get familiar with the object of

discussion.

The third chapter will illustrate the research model used to answer the research questions

and will discuss the development of the research hypothesis. Subsequently, in Chapter 4 the

methodology implemented is described, including questionnaire development, data collection,

sample of respondents and measures for the data analysis.

Results retrieved from the survey will be then analyzed in Chapter 5 with the support of

the application software SmartPLS. Solutions to the hypothesis are provided and discussed.

In the end, Chapter 6 will concern with the following aspects: practical and theoretical

implications of the findings will be outlined, conclusions drawn, limitations highlighted and

suggestions for future research proposed.


2. LITERATURE REVIEW

Before entering into the core part of the present thesis, this chapter aims to provide a

theoretical framework concerning some general definitions and concepts to better support

the project work, as well as to discuss the relevant literature that should help the reader

increasing his/her understanding of the topic and following hypothesis.

2.1. Sustainable Consumption, Green Marketing, and Third-party Sustainability

Labelling

Over the past two decades, consumers have become aware of the consequences of their

consumption behaviors and, specifically, of the negative impacts on the environment and

quality of life; because of this awareness, sustainable consumption has significantly increased

and has become a relevant issue in the academic research and marketing field (Vermeir &

Verbeke, 2008). This awareness is likely to stem from the increasing consumers’ easy

accessibility to information through modern technologies and exposure to sustainability issues

at a global level (Grunert, Hieke, & Wills, 2014). For instance, from the European Union and

the national governments’ side, large pressures and communication campaigns have

contributed to the increase of this awareness among consumers. Already in 2008, at the time

of the presentation of the “Sustainable Consumption and Production Action Plan” by the

European Commission, it was highlighted the necessity for today and future’s society to

contribute to the economic growth without damaging the environment, but instead improving

the entire products’ supply chains by developing and employing more sustainable and eco-

friendly methods and technologies.

With the term sustainability, three dimensions are mainly encompassed: an economic, a

social/ethical, and an environmental dimension; this latter, in particular, can be translated as

the “care for the natural environment, including plant and animal production factors, the living

environment in general and the quality of life for human beings” (Vermeir & Verbeke, 2008).

Sustainable consumption has led to the so-called “green consumerism”, which can be

defined as “the purchasing and non-purchasing decisions made by consumers, based at least

partly on environmental or social/ethical criteria” (Peattie, 1995, as cited in Galarraga

Gallastegui, 2002). In other words, it refers to a consumption pattern that involves the

consumers’ choice of products that are less harmful for the environment and the society than

conventional products.


The increase of green consumption patterns goes along with the increase of green

marketing activities. Indeed, businesses have recognized this shift to a “more responsible

demand” which does not only look for products that satisfy their needs, but also bases its

choices on products’ attributes and goes beyond other features such as price and convenience

(Vermeier & Verbeke, 2008).

In this context, third-party sustainability labels play the important role of guiding

consumers in their purchasing choices. They are symbols/seals that are awarded to a

manufacturer and applied on the product package to indicate the sustainability features

enhanced by the product itself, and eventually aim to encourage a sustainable consumption

patterns (D'Souza, Taghian, Lamb, & Peretiatko, 2007; Van Loo, Caputo, Nayga, & Verbeke,

2014). This is particularly true for the PCP industry, where the understanding of ingredients,

formulation and production processes is not always straightforward and easily accessible to

final customers.

From the specific point of view of marketers in the PCP industry, third-party sustainability

labels (sometimes also referred to as eco-labels) act as a “green marketing” tool that aim to

enhance credibility towards their commitment for a sustainable products’ life-cycle and aim to

communicate product's environmentally friendly and ethical desirable features to consumers

(Galarraga Gallastegui, 2002). Indeed, they serve as differentiation and positioning strategies,

from which “achieving and maintaining green product positioning and creating an effective

competitive advantage” (D’Souza, Taghian, & Lamb 2006).

2.2. Previous studies

As anticipated in the first chapter, green consumerism patterns and related marketing

activities have been widely researched and documented in the case of food products, while

little attention has been paid to other product categories, such as personal care products. One

reason behind this might be due to the fact that the standards in the context of PCP are more

fragmented and maybe less known if compared to the legislation existing for food products.

Indeed, there are no EU regulations that univocally identify sustainable PCP and most of the

EU countries have thus developed their own labels, which are issued by private organizations,

governments, or a combination of both.

Previous studies on green consumption behavior and third-party sustainability labelling

on food products have all considered well-established labels (e.g. EU organic food logo, MSC

label on sustainable fish and seafood, Carbon footprint, Animal Welfare, Rainforest Alliance,


Fair Trade, etc.) and investigated them via both qualitative and quantitative methods on the

market. For instance, they tried to identify the impact of labels on brand perceptions (s. Bauer

et al., 2013), consumers’ preferences of one label over the other(s) (s. Lange et al., 2017), and

to assess related willingness to pay (s. Van Loo et al., 2014).

Another stream of studies have focused instead on various aspects, mainly related to

personal consumers’ characteristics, by referring to different theories and included diverse

factors in their models to predict sustainable purchase behavior. One relevant information

emerged from reviewing the literature, as confirmed by Vermeier and Verbeke (2006), is that

sustainability awareness have become such widespread that demographical variables alone are

not significant for defining a “sustainability responsible consumer”, and thus they are not

particularly helping for understanding consumer behavior in this field and/or towards

sustainability labels. This suggests that other factors need to be taken into consideration. For

instance, psychosocial and cognitive variables (such as attitudes, beliefs, behavioral

characteristics, and subjective norms) can be more predicting of purchase intention for

sustainable products (D'Souza et al., 2007; Liobikienė & Bernatonienė, 2017; Robinson &

Smith, 2002). In the particular case of PCP, which appears to be an underdeveloped research

area, an investigative study that deal with these variables can turn out to offer useful insights.

Although no absolute coinciding symmetries can be found between the two kinds of

products, namely food and PCP, some analogies and related assumptions can and will be drawn

(Ghazali et al., 2017; Liobikienė & Bernatonienė, 2017; Yeon Kim & Chung, 2011).

2.3. Theory of Planned Behavior

The Theory of Planned Behavior (TPB) and its fundamental constructs represent a

prevailing cognitive theoretical framework developed by Ajzen in 1991, which explains and

reveals the predictors of individual purchase intention and behavior. Therefore, it seems a

proper theory for answering to the research question of the present thesis.

The TPB framework is an evolution of the Theory of Reasoned Action (TRA), which was

firstly developed in 1975 by Fishbein and Ajzen. The TRA was built on the claim that an

individual’s actual behavior in performing a certain course of actions is directly determined by

his/her behavioral intention, which in turn is jointly influenced by the subjective norm and

attitude towards that behavior (Ajzen, 1991). The TRA, however, assumed the behavior to be

completely voluntary and lacked to include in the model those situations in which individuals

only have partial volitional control. This limitation drove Ajzen to extend the TRA model into


the TPB, by including a third variable predicting a person’s intention towards a certain

behavior, i.e. the perceived behavioral control. Following studies have demonstrated that this

additional construct was able to increase the prediction power for consumers’ intention and

hence, behavior.

The following table summarizes the three variables and corresponding definition given by

Ajzen (1991, p. 188).

CONSTRUCT DEFINITION

Attitude towards

the behavior

“The degree to which a person has a favorable or unfavorable

evaluation or appraisal of the behavior in question”.

Subjective

norms

“The perceived social pressure to perform or not to perform

the behavior”.

Perceived

behavioral

control

“The perceived ease or difficulty of performing the behavior;

it is assumed to reflect past experience as well as anticipated

impediments and obstacles”.

Table 1. Basic constructs of the Theory of Planned Behavior by Ajzen (1991).

The first two constructs (attitude and subjective norms) of TPB reflect therefore the

perceived desirability of performing a particular behavior, while the third (perceived behavioral

control) reveals the perceptions of whether that behavior is controllable or not (Ajzen, 1991).

The explanatory power and robustness of the TPB have been confirmed by many studies

conducted in various, different domains in the past. Indeed, the TPB has widely and

successfully been used in the context of exploring consumer behavior intention in general

(Schuster, Falkenreck, & Wagner, 2016), and especially towards sustainable consumption, for

instance organic food (Arvola, Vassallo, Dean, Lampila, Saba, Lähteenmäki, & Shepherd,

2008; Chen 2007, Teng & Wang, 2015). Findings derived from the application of the TPB on

the field have also driven researchers to offer approaches to information campaign

development (Vermeir & Verbeke, 2008; Robinson & Smith, 2002).


As anticipated earlier, further modifications of the TPB have been implemented,

according to scholars’ research necessities and attempts to improve potential shortfalls for

understanding critical issues and factors in the decision-making process. Extensions included,

for example, past experiences, product knowledge, environmental concern, trust, and country

of origin (Chen, 2007; Paul, Modi & Patel, 2016; Teng & Wang, 2015; Yeon Kim & Chung,

2011). In the context of the present research, some of these extensions will be investigated as

well.

2.4. Antecedents of Attitudes

2.4.1. Consumers’ perceived values.

Consumers generally tend to choose products and services that align with their personal

values and stable beliefs, and especially this might be considered foreseeable when it comes to

choose between sustainable and conventional consumption. This fact explains why past

researchers have included Schwarz’s (1992) classification of human values to predict

sustainable consumption (Grunert et al., 2014) and, specifically, to better explain the

independent variable of attitude within the TPB framework (Vermeir & Verbeke, 2008).

Moreover, Grunert and Juhl (1995) argued that the more environmentally concerned an

individual is (i.e. has a high level of commitment and emotion towards environmental issues),

the more likely (s)he is to buy organic foods. Some studies supported this argument (Honkanen,

Verplanken, & Olsen, 2006; Paul et al., 2016), while others found contrasting findings and

argued that specific consumer values and beliefs help better predicting sustainable behavior

and consumption more accurately than general environmental concern does (D’Souza et al.,

2006; Galarraga Gallastegui, 2002; Grunert et al., 2014).

However, Tanner and Kast (2003) suggest that other personal or contextual factors can

influence the extent to which attitudes are predictive of behavioral intention. For instance, it

has been noted in the literature that there is a relationship between perceived values and

consumer attitudes (Sweeney & Soutar, 2001). Perceived values are defined by Zeithaml

(1988) as the outcome of the individual’s assessment and comparison between give and get

components inferred to a product (i.e. what is given and what is received). The definition is

therefore a subjective concept that involves an evaluative judgment that relies upon perceived

knowledge about circumstances and effects on a specific issue (e.g. environmental impact); it

appears to be highly personal and idiosyncratic (Zeithaml, 1988), and can help explaining

motives and preferences for sustainable consumption (Bauer et al., 2013; Ghazali et al., 2017).


2.4.2. Trust.

Trust is a concept that derives from individual’s uncertainty and depends on transparency

and level of confidence in the reliability and integrity of others (Morgan & Hunt, 1994). Indeed,

because of information asymmetries, and especially asymmetries stemming along the product’s

supply chain, consumers might not always be able to assess reliability and integrity levels of a

product/brand, thus a certain degree of uncertainty arises (Testa, Iraldo, Vaccari, & Ferrari,

2015; Thøgersen, Haugaard, & Olesen, 2010). Moreover, with the increase of unverified and

misleading claims directly used by manufacturers, consumers might be more skeptical about

sustainability claims in general, leading to a general decrease in green consumption (Galarraga

Gallastegui, 2002; Testa et al., 2015).

Recognized third-party sustainability labels are meant to reduce this level of uncertainty

among customers (Thøgersen et al., 2010), and contrast the negative effect generated by

misleading claims (Testa et al., 2015). Specifically, they aim to provide them with more

transparent and reliable information, so as to guide them during the purchase decision-making

process. As a matter of fact, consumers are aware that brands/manufacturers applying for a

third-party certification need to be exposed to tests and respect standards (e.g. certain

thresholds of natural ingredients, conformity to organic standards, use of recyclable packing

material, etc.), which must be published and made available by the certification institutes

(D’Souza, 2007).

2.4.3. Involvement

The decision-making process behind a purchase is complex and one further remarkable

predicting variable that might come into play in the mechanism is the level of consumer

involvement for the product, i.e. the individual relative importance that the product has for a

person, which is in turn based on inherent needs, values, and interests (Zaichkowsky, 1985).

The general assumption is that when the involvement is high, a consumer is driven to look for

additional information about the product (for example, in case of PCP, ingredients and

formulation specific information) and spend time in selecting the “right” product

(Zaichkowsky, 1985).

As Verbeke and Vermeier (2006) argue, involvement can be seen as a specific type of

motivation, which “influences the extensiveness of information search […] (and the) formation

of attitudes and intentions” (p. 174). In their study, they found that when consumers feel

involved with the product, they show a more positive attitude and a greater behavioral intention


towards the purchase of sustainable food products, while overcoming habits and obstacles such

as price and convenience, and making more informed choices based on active information

search and processing.


3. RESEARCH DESIGN AND HYPOTHESIS

The following chapter presents the research model along with the research hypothesis framed

and embedded with previous researches.

3.1. Research Model

The research model used for the current research is an adaptation and extension of the

TPB framework by Ajzen (1991). The complete research model based on the TPB framework

is illustrated in Figure 1.

Figure 1. Adapted research model based on the Theory of Planned Behavior by Ajzen (1991).

As already explained in the previous chapter, the TPB claims that attitudes, subjective

norms and perceived behavioral control are predicting determinants of individuals’ intention

and hence, behavior. In different words, purchase intention is the consequence of the positive

correlations with the three constructs.

The proposed extension of the TPB adds four variables to the model, namely involvement,

trust, and two dimensions of perceived values, which are expected to be likely inferred to the

labelled product as antecedents of attitude formation, and thus indirectly influencing

determinants of consumers’ purchase intention.


Lastly, the research model of the current thesis include a moderating variable, namely the

willingness to pay for a price premium.

The current research is based on the assumption that the decision-making process behind

consumer behavior is a complex structure of influencing variables, and the importance of

motives (here studied as perceived values), involvement, trust, and acceptance of eventual price

premiums are assumed to be explanatory for purchase intention and final behavior as well.

3.2. Development of Hypothesis

3.2.1. Purchase intention.

As argued by Testa et al. (2015), “attitudes contribute to the definition of a person’s

behavioral model and, as a consequence, of her/his choices”. When consumers show a

favorable attitude towards a certain behavior, their behavioral intention increases accordingly

(Ajzen, 1991). Previous studies towards sustainable consumption have confirmed positive and

significant relationship between consumer attitudes and purchase intentions (Honkanen et al.,

2006; Paul et al., 2016; Teng & Wang, 2015; Vermeir & Verbeke, 2008). Therefore, the

following hypothesis is suggested:

H1: Attitude (ATT) towards purchasing of sustainability labelled PCP with will

have a significant positive effect on the purchase intention for these products.

The TPB further considers social norms as determinant of behavioral intentions. Some

researchers identified this construct as the weakest link in the framework applied to green

purchases (Paul et al., 2016; Tarkiainen & Sundqvist, 2005). On the other side, others have

confirmed the significance of the relationship, i.e. that they actually influence behavioral

intention towards sustainable products (e.g. Chen, 2007; Yeon Kim & Chung, 2014). For

instance, Teng and Wang (2015) have demonstrated that individuals tend to show a positive

purchase intention of labelled organic food, when they think that people who are important to

them have positive opinions about the product/behavior. In a society where the opinion of

others often influences our behaviors, the following hypothesis is proposed:

H2: Subjective norms (SN) will have a significant positive effect on the purchase

intention for sustainability labelled PCP.

The third and last TPB’s construct is the perceived behavioral control, which refers to the

resources that a person has in order to perform a behavior and, specifically, depends by several


internal and external factors such as ability, opportunity and level of information (Testa et al.,

2015). In particular, availability of the product can be identified to be one of the most important

aspects related to the perceived behavioral control (Verbeke & Vermeier, 2008). As Ajzen

(1991) suggests, when an individual perceives (s)he has control over performing a behavior,

for instance if the product is considered widely available, (s)he will be more likely to engage

in that behavior.

The third hypothesis is therefore proposed as follow:

H3: Perceived behavioral control (PBC) will have a significant positive effect on

the purchase intention for sustainability labelled PCP.

3.2.2. Antecedents of attitude.

An individual’s attitude towards a certain behavior is determined by what this person

believes (Ajzen, 2008). Chen (2007) argues that attitude depends on the perceived

consequences, such as expectations, of the purchase outcome. In his study, he found outcome-

related motives to be significant antecedents of attitude towards organic food. Therefore,

perceived values inferred to a product/service appear to be central criteria that a person employs

to make preference judgements, and unconsciously affect attitude and finally, purchase

intention. For instance, Bauer et al. (2013) used perceived values in his attempt to investigate

the underlying motives towards purchase of organic labelled on food products. They found that

perceived healthiness and perceived environmental friendliness were particularly significant

predicting motives.

Similarly, in the context of the present research, some consumers are expected to infer

environmental benefits to sustainability labelled PCP, since the label is meant to certify an

environmental friendly approach throughout the whole product’s life-cycle (from the organic

production and selection of natural ingredients, passing by non-animal testing, and to the use

of recycling packages). Some other consumers might infer personal benefits as well, such as

health benefits. As mentioned above, health benefits were uncovered to be determining motives

in organic food consumption (Bauer et al., 2013). In the case of the sustainability labelled PCP,

consumers are likely to infer health values, due to the certified presence of natural ingredients,

raised under organic conditions (i.e. without the use of pesticides and/or synthetic fertilizers)

and free from harmful chemicals (such as parabens, preservatives, artificial colorants, etc.).

Therefore, the following hypothesis are suggested:


H4: Consumers’ perceived health value (PHV) of sustainability labelled PCP will

have a significant positive effect on attitude towards the purchase intention for

these products.

H5: Consumers’ perceived environmental value (PEV) of sustainability labelled

PCP will have a significant positive effect on attitude towards the purchase

intention for these products.

The additional construct of trust is based on previous researches revealing that the concept

of trust is an important predictor of customers’ attitudes, and subsequent intention and behavior

(Teng & Wang, 2015; Wu & Chen, 2005). Specifically, the assumption here is based on

previous studies and regards the fact that a favorable attitude towards third-party labelled PCP

is expected to arise then consumers place a certain degree of trust in the labeling institution and

its commitment to sustainability along the supply chain (Testa et al., 2015). Accordingly, the

following hypothesis is investigated:

H6: Trust (TR) has a significant positive effect on attitude towards the purchase

intention for sustainability labelled PCP.

Lastly, as anticipated in the previous chapter, involvement for the product drives the

consumer to search for additional information regarding the product itself. In this context, third

party sustainability labels are assumed to be product-specific information and positively valued

by involved consumers, since they respond to and satisfy consumers’ requirement for

additional, specific information regarding the product’s supply chain (Testa et al., 2015), and

thus eventually matching their involvement level for the product.

Consequently, the attitude towards a sustainability labelled PCP will be likely to be

positively influenced by the level of involvement and therefore, the following hypothesis is

proposed:

H7: Involvement (INV) will have a significant positive effect on attitude towards

the purchase intention for sustainability labelled PCP.

3.2.3. Moderating variable: willingness to pay.

Yet, it is widely recognized that price has significant impact on consumers’ evaluation of

product alternatives and their final buying decision (Rödiger & Hamm, 2015). According to

Völckner (2008), price generally plays two roles in the consumers’ assessments of product


alternatives: as a measure of sacrifice and as a measure of perceived quality and/or status

inferred by the product itself.

A third-party certification label represents a differentiation strategy to marketers, which

generally implies a price premium acceptance from the consumers’ point of view. For instance,

it has been showed that consumers are willing to pay for products with ethical attributes up to

10% more than conventional products (Zander & Hamm, 2010). As argued by Bauer et al.

(2013) this fact can be traced back to the brand equity theory, which states that when consumers

identify additional values to the brand/product, their willingness to pay will be higher.

From a literature review by Rödiger and Hamm (2015), it emerged that the relationship

between product’s price and consumer behavior is widely measured as “willingness to pay”

rather than “price elasticity” or “price perception”. In this instance, it also emerged that organic

labelled food actually has the effect of increasing WTP, although not all studies reported similar

categorical findings and some others have revealed that the extent might differ by product sub-

categories. For instance, in their study about organic labels on food (cereals), Bauer et al.

(2013) found that consumers are more willing to pay for a price premium when purchasing a

brand carrying an organic label.

The present study will assume that the third-party sustainability labels on PCP will be

recognized and accepted by consumers as an additional value to pay for the product. Hence,

this variable will be taken into account, by setting the willingness to pay for a price premium

as a moderating variable of the TPB’s set of constructs and propose the following hypothesis:

H8: Willingness to pay a premium price will strengthen H1-H3.


4. RESEARCH METHODOLOGY

The present chapter deals firstly with the description of the research population and

sampling method. Afterwards, it defines how the questionnaire is developed and which data

analysis are used to answer the research question of the present thesis.

4.1. Research Population and Sampling

The study will conducted within the Italian market, given the researchers’ familiarity with

it. The aim is to achieve a sample consisting of at least 150 respondents. This target is expected

to be reached within three weeks (indicative timeframe: 06.11.2017 - 26.11.2017). A pre-test

of the questionnaire will be run beforehand, in order to check and prevent any inconveniences

that might occur during the definitive administration of the questionnaire.

The questionnaire will be distributed online through the social network Facebook, making

the sample be chosen statistically at random. However, a group of 12 people from the

researcher’s circle of friends will be encouraged to share the survey’s hyperlink on their

Facebook pages. This is in the attempt to assure that different age categories and a more

heterogeneous sample is achieved. The group will be composed of people aged from 20 to 50

years including two persons for each age cluster with 5 years increase.

4.2. Questionnaire development

The questionnaire will be developed online with the support of the software Sphinx iQ2.

The first section of the questionnaire will include an introductory presentation of a sample of

three selected representative labels and with some general questions to test whether the

respondents are already familiar with some of them, and whether they have already past

experiences. In addition, a self-reported question about the importance of PCP attributes will

be inquired.

The sample of labels includes: ICEA, Natrue, and Cosmetici Biologici (s. Table 2).


LABEL DESCRIPTION

With the certification "ICEA Eco Bio Cosmesi" it is possible

to identify a product whose formulation consists of natural

ingredients derived from organic and certified agriculture.

"NATRUE" is a nonprofit organization constituted by

producers from various countries in Europe that has created a

standard on organic and natural cosmetics.

The basic principle behind the label "Cosmetici biologici" is

the naturalness of the ingredients used and their origin from

organic farming.

Table 2. Short description of the sample of selected representative

labels presented in the questionnaire.

They have been selected because of their presence on the market in the country and

therefore, they are assumed to be better known among consumers. Respondents will be asked

to answer the questions, by considering PCPs that show one of these labels on the package.

In the second section of the questionnaire, the research model’s constructs will be

assessed. Attitude will be measured with a semantic differential rating scale, which is indeed

commonly used in consumer research to determine underlying attitudes. The respondents are

required to rate an item on a sequence of bipolar rating scales. A pair of opposite adjectives,

which are designed to anchor respondents’ answers, describes each bipolar scale.

In addition, the other cognitive constructs will be based on items adapted from previous

studies, in order to ensure both reliability and validity. Five-point scales anchored from

“Strongly disagree” to “Strongly agree” will be used for measuring all constructs items.

As far as the moderator “willingness to pay” is concerned, a Yes/No stated preference

question will be asked. It will be accompanied by a multiple-choice questions in case of positive

answer, in order to investigate for which type of sub-category respondents would be

particularly willing to pay a price premium (e.g. Face cream; Body cream; Shower gel;

Shampoo; Detergents; Deodorants).


At the end of the questionnaire, general demographics questions will be asked to the

respondents, to be able to run a descriptive analysis of the sample at the end of the data

collection.

4.3. Data Analysis

The data will be mainly elaborated with the support of the software applications Microsoft

Excel and SmartPLS. Among the analysis to be conducted there are:

Descriptive analysis of the sample

Means, standard deviations and correlation of constructs

Convergent validity (Cronbach’s α for internal reliability, Composite Reliability of

each construct, Average Variance Extracted)

Hypothesis testing: path coefficient and T statistics


OVERVIEW OF CHAPTERS*

1. INTRODUCTION

1.1. Background

1.2. Problem statement and Research Question

1.3. Purpose and Contribution

1.4. Structure

2. LITERATURE REVIEW

2.1. Sustainable consumption, Green Marketing, and Third-party Sustainability Labelling

2.2. Previous Studies

2.3. Theory of Planned Behavior

2.4. Antecedents of Attitudes

2.4.1. Consumer’s perceived values

2.4.2. Trust

2.4.3. Involvement

3. RESEARCH DESIGN AND HYPOTHESIS

3.1. Research Model

3.2. Development of Hypothesis

3.2.1. Purchase intention

3.2.2. Antecedents of attitudes

3.2.3. Moderating variable: willingness to pay

4. RESEARCH METHODOLOGY

4.1. Research Population and Sampling

4.2. Questionnaire Development

4.3. Data Analysis

5. ANALYSIS OF EMPIRICAL FINDINGS

5.1. Descriptive Analysis of the Sample

5.2. Measurement Model Assessment

5.3. Structural Equation Model Assessment

5.4. Discussion and Interpretation of Results

6. CONCLUSION

6.1. Summary of the Findings

6.2. Practical and Theoretical Implications

6.3. Limitations and Suggestions for Future Research

* The following structure is a first draft and might be subject to modifications.


WORK PLAN

PERIOD ACTIVITY TASKS

03.09.17 – 23.10.17 Exposé Introduction, literature review,

development of research model,

hypothesis

Start with research design

24.10.17 – 05.11.17 Research Design Developing the online survey with

the software Sphinx

Pre-test

06.11.17 – 26.11.17

[Intensive course

Distribution

Management

06.11.17 – 23.11.17]

Field Research Distribution of the online survey

Finalization of the chapter

“methodology”

Study of the software

27.11.17 – 17.12.17 Analysis Analysis, elaboration and

discussion of retrieved data

(writing Chapter 5)

18.12.17 – 05.01.18

[Christmas holidays

23.12.17 – 01.01.18]

Drawing conclusions

Implications, conclusions,

limitations, future research

(writing Chapter 6)

06.01.18 – 21.01.18 Finalize the thesis Revision, proofreading, printing,

prepare final defense presentation


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