EXPLORING THE PURCHASE INTENTION OF ENERGY- EFFICIENT HOMEAPPLIANCES: THE INFLUENCE OF KNOWLEDGE OF ECO LABELS,ENVIRONMENTAL KNOWLEDGE AND ENVIRONMENTAL CONCERN

Abstract

Purpose - Energy efficient home appliances are sustainable and Eco-logical initiative in today’s world. As Pakistan is suffering major energy crises due to the excessive amount of energy consumption in the country. This problem acted as the motivation for this study, which aimed to analyse the elements that influence consumers' purchasing intentions with regard to energy-efficient home appliances. In this research we have created conceptual model to assess major factors of energy efficient products buying intentions taking into account different variables and testing its relationship with consumer’s attitude towards consumer’s purchase intention respectively. Methodology & Design » A questionnaire survey has been used to collect data from targeted audiences. To evaluate the model, data was collected from 214 consumer who has tendency and interest in purchasing energy efficient home appliances. Subsequently, Structural Equation Modeling (SEM), a method for analyzing data was used. Findings - The data provided support for the hypothesis that consumer attitudes regarding energy-efficient home appliances are related to consumers' intentions to purchase those appliances. It also supported the influence of consumer’s attitude with purchase intention for the determinants (Eco-labels, Environmental concern, Environmental knowledge). In addition, consumer attitudes regarding energy saving appliances were the primary factor to purchase intention. This was followed by environmental knowledge and Eco-labels as secondary factors. Limitations - Limited time to conduct the research and gather data from the consumers. One ofthe major limitations ofthis study was the fact that it was conducted in only a few selected cities like Karachi and Islamabad. Because of this, the findings of the study camiot be generalized to the entire country. This research only uses an online questionnaire to collect data, neglecting interviews, observations and surveys. Limited variables used in this study, some important variables are not included, risk perception or trust which would be more helpful in providing an in-depth understanding ofimpulsive behavior. Recommendations - Marketers are advised to focus on aspects that have been proved to have a significant impact on customer attitudes regarding energy-efficient appliances in order to influence their purchase intention. The brands are recommended to focus on factors like create environmental knowledge through their marketing actions and advertisement, use of Eco-labels in their packaging and work on influencing consumer’s attitude towards energy efficient products so that people are more aware about the product which is environmental friendly and promote sustainable environment.