Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
Understanding Consumers’ Intention in Socially
Responsible Purchasing in Malaysia Using the Theory of
Reasoned Action
Victor Ong, Ho Ooi Tim, Liew Chiu Limn and Liew Wei Chyi
Past researches have demonstrated the effectiveness of theory
of reasoned action (TRA) model to predict consumers’ purchase
intention. However, many researches scarcely use a
psychosocial perspective to predict consumers’ purchase
intention. Hence, this study extends existing researches by
incorporating moral norms to gain a better understanding of
consumers’ purchase intention for ‘socially responsible’
products in the Malaysian marketplace. Results from this
particular study indicate that attitudes towards behaviour in TRA
exercise a larger influence in predicting consumers’ purchase
intention while personal norm has the highest correlation with
purchase intention and it indirectly influences the relationship of
subjective norm and purchase intention. From the findings, it is
recommended that companies (and even the government)
encourage socially responsible purchasing through holding
more public activities, creating social expectations, better
disclosures of corporate social responsibility and providing
education regarding socially responsible purchasing.
JEL Codes: M31
1.0 Introduction
Corporate Social Responsibility (CSR) is becoming more important that many companies
have started to focus on improving CSR. The trend of pursuing CSR may be due to the
contribution of researches that suggested CSR can lead to positive brand attitudes and
therefore increases consumers‟ purchase intention. Sen and Bhattacharya (2001) argued
that CSR can influence consumers‟ purchase intention directly and indirectly. CSR also
improves long term profitability (Rashid & Ibrahim, 2002). Another benefit for companies
that adopt CSR is the enhancement of corporate reputation and goodwill (Holmes, 1976).
Furthermore, it is found that consumers prefer to buy products from companies that
possess good CSR and willing to pay more for it. On the other hand, CSR can bring
negative impacts to companies if consumers think that the companies focus only on
profits (Chakraborty et al, 2004).
_______________________________________________________________________
Victor Ong, Sunway University Business School, Sunway University, MALAYSIA.
Email: victoro@sunway.edu.my
Ho Ooi Tim, Sunway University Business School, Sunway University, MALAYSIA.
Email: ooi.tim@hotmail.com
Liew Chiu Limn, Sunway University Business School, Sunway University, MALAYSIA.
Email: ireneliew91@gmail.com
Liew Wei Chyi, Sunway University Business School, Sunway University, MALAYSIA.
Email: weichyi226@hotmail.com
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
Many companies started to use CSR as an alternative marketing strategy to differentiate
themselves from competitors. However, companies are facing challenges due to changes
in consumer preferences, unfavorable consumer perceptions of socially responsible
products and the high cost to invest in CSR activities (Tan and Lau, 2010). Hence, it is
very important for companies to know more about consumer behaviour in order to stand
out in the market.
The concepts of consumer behaviour were derived from psychological and behavioural
studies. In order to understand consumer behaviour, Fishbein and Ajzen‟s theory of
reasoned action (TRA) will be used. However, each individual will behave differently
when making purchasing decision on socially responsible products as consumers may
have different moral obligations. Some studies showed that personal-related constructs
should be included in the model to explain individual differences (Bamberg and Moser,
2007). Therefore, personal normative concerns were included in this study to have a
better understanding on consumers‟ purchase intention.
The research questions in this study were:
1. How does TRA model predict Malaysian‟s purchase intention in socially
responsible products?
2. How does the extended TRA model with inclusion of personal norms predict
Malaysian‟s purchase intention in socially responsible products?
The main objective of this study is to understand the variables that affect consumers‟
purchase intention in socially responsible products by using TRA. Our sub-objectives of
the research are:
1. To understand the relationship between CSR and consumer behaviour.
2. To understand the influences of personal norms on purchase intention in socially
responsible products.
Findings in this study are important for companies in Malaysia. By using TRA to
understand consumer behaviours, companies can determine which variables will affect
consumers‟ purchase intention. Therefore, this study provides evidences for companies
to decide whether to pursue CSR activities or not and provides guidelines for the
government and other interested parties to improve the practices of socially responsible
purchasing in Malaysia.
2.0 Literature Review
2.1 CSR and Socially Responsible Purchasing
One of the pioneers of corporate social responsibility studies, A.B. Carroll (1991) defines
CSR as “The total corporate social responsibility of business entails the simultaneous
fulfilment of the firm‟s economic, legal, ethical and philanthropic responsibilities. The firm
with good CSR should strive to make a profit, obey the law, be ethical, and be a good
corporate citizen”.
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
Socially Responsible Products (SRPs) or Prosocial Products are the products which were
produced by companies and sold in order to sponsor or support certain non-profit groups
or social causes.
Socially Responsible Purchasing refers to consumers‟ behaviour in purchasing causerelated products as a reward for companies‟ CSR (Jia, 2010). A recent research found
that consumers are becoming more interested in ethical and socially responsible products
(Trudel and Cotte, 2009). Harrison et al. (2005) also found that consumers are now more
engaged in purchasing socially responsible products. For example, consumers are now
demanding ethical products such as fair-trade products (Nicholls and Opal, 2005). In
addition, Creyer (1997) found that consumers will take the ethical dimension of a firm‟s
behaviour into consideration when they make the purchase decision, and they were
willing to pay a premium price as a reward for the latter‟s ethical conduct.
2.2 Theory of Reasoned Action and Purchase Intention
The theory of reasoned action (TRA) is a theory to explain how was a consumer led
to a certain buying behaviour (Fishbein, 1980 cited by Choong, 1998). The theory asserts
that there are two variables affecting consumer‟s behavioural intention (Choong, 1998).
Lutz (1991 cited by Choong, 1998) offered two important propositions in the theory of
reasoned action. First, it is necessary to measure a person‟s attitude towards behaviour
in order to predict a specific purchase behaviour. The second determinant of the
behaviour would be subjective norm, which is the social influence on a person‟s
behaviour. Research done by Thompson et al. (1994) found that attitude towards
behaviour, subjective norm, and another factor in the extended theory of planned
behaviour which is perceived behavioural control, explained a 40-50 percent of variance
in behavioural intentions and the intentions explain 19-38 percent of variance in
behaviour. However, we focus only on attitude towards behaviour and subjective norm
and will be looking into only one aspect in behaviour which is consumer purchase
intention in this research, that is a combination of attitude towards behaviour and
subjective norm will predict consumer purchase intention.
H1: Theory of reasoned action is a prediction model of purchase intention
2.3 Attitude towards Behavior
According to TRA, attitudes are a function of beliefs. Suddin Lada et al. (2009) further
explained attitude towards behaviour as “a person who believes that performing a given
behaviour will lead to mostly positive outcomes will hold a favourable attitude toward
performing the behaviour, while a person who believes that performing the behaviour will
lead to mostly negative outcomes will hold an unfavourable attitude.” For instance,
religion dictates why Muslims have a favourable attitude regarding their purchase
intention of halal food. In the same research, Suddin Lada et al. (2009) also found that
attitude is positively related to purchase intention of halal food. Researches too found that
when consumers have a positive attitude towards environmentally friendly products, their
purchase intention of the products will more likely to be positive (e.g. Alwitt and Pitts,
1996). Additionally, Kim et al. (2003) cited by Hustvedt (2006) measured customers‟
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
attitudes towards online apparel shopping. They found that attitudes significantly
predicted purchase intention of online apparel. On the other hand, it is also found that
consumer‟ attitudes toward CSR programs predicted their purchase intention of the
company‟s products (Dodd and Supa, 2011).
H2: Attitude towards behaviour significantly predicts consumer‟s purchase intention
2.4 Subjective Norm
Suddin Lada et al. (2009) define subjective norm as “a person‟s perception of the social
pressure put on him/her to perform or not to perform the behaviour in question.”
Subjective norm is also a function of beliefs that is predicted by normative beliefs that
what other relevant people would advise (Thompson and Thompson, 1996). For instance,
a person will receive social pressures to act accordingly when people whom he/she is
motivated to comply thinks that he/she should perform the behaviour. Some examples of
social norm would be parental influence, peer influence etc.
Cotte and Wood (2004) found that parental influences will exist in the consumer‟s
purchase decision making process and will also shape their children‟s behaviour. Parents
who have a strong desire in purchasing material goods will also cause their children to
value material goods in a similar way (Chaplin and John, 2010).
On the other hand, Wouters et al. (2010) cited by Barua Promotosh (2010) found that
peer influence will positively influence consumers‟ behaviour regarding their consumption
patterns of snacks and soft drinks.
In addition, it is found that teenagers don‟t even think twice about paying a higher price if
their peers think that fashion products are cool (Grant & Stephen, 2006).
Moreover, mass media also influences people‟s behaviour. Gullen and Johnson (1986)
conducted a study on short term advertising and its impacts on sales and they found that
short term advertising have a strong impact on sales.
In general, subjective norm will influence consumer‟s behaviour. Sparks and Shepherd
(1992) cited by Hustvedt and Dickson (2009) found that subjective norm is a good
predictor of consumer‟s intention to eat organic vegetables in the near future. Besides
that, Kim et al. (2003) cited by Hustvedt (2006) found that subjective norm significantly
predicted consumer‟s intention in online apparel shopping.
H3: Subjective norm significantly predicts consumer‟s purchase intention
2.5 Personal norm
Ajzen (1991) states that: “The theory of planned behaviour is, in principle, open to the
inclusion of additional predictors if it can be shown that they capture a significant
proportion of the variance in intention or behaviour after the theory‟s current variables
have been taken into account.” Personal norm is defined as “an evaluation of the specific
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
behaviour in relation to a specific internal standard” (Hustvedt, 2006). Described in a
simple way, personal norm is the moral beliefs. Manstead (2000) cited by Jia (2010)
included moral obligation measure in the regression equation and it is found that the
inclusion of personal norm significantly improved the prediction of intentions than just by
attitudes and subjective norms. Harland et al. (1999) cited by Hustvedt (2006) also
concluded that including personal norm in the prediction model will improve the prediction
of a person‟s behaviour and intention. Dean et al. (2008) cited by Jia (2010) also revealed
the important influence of moral concern on purchase decision in the context of organic
food.
H4: Personal norm significantly predicts consumer‟s purchase intention
2.6 Mediating Role of Personal Norm
Bamberg and Moser (2007) found that subjective norm is directly associated with
personal norm and it was an indirect determinant of intention. Besides that, Taute and
McQuitty (2004) found that personal norm mediated the relationship between social
norms and respondents‟ behaviour in making donation. Hence, personal norm has a
mediating effect between social norms and purchase intention.
H5: Personal norm mediates the relationship between subjective norm and purchase
intention
The Five Hypotheses in This Research Produced the Framework Below:
H1
THEORY OF REASONED ACTION
Attitude towards the
behaviour
H5
Subjective
norm
H2
H3
Purchase
intention of
socially
responsible
product
H4
Personal norm
Diagram 2.1 Research framework
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
3.0 Methodology
3.1 Instrumentation
The questionnaires include three major sections. Section A gathers data on theory of
reasoned action which will be used to assess consumers‟ intention in socially responsible
purchasing. An instrument of 10 items which is adapted from Jia (2010) was used to
measure attitude towards the behaviour and subjective norm; and an instrument of 6
items which is adapted from Hustvedy and Dickson (2009) was used to measure
personal norm.
Section B gathers data of consumers‟ purchase intention. An instrument of 5 items which
is adapted from Theofilou and Jerofejeva (n.d.) was used to measure consumers‟
purchase intention. Each construct was designed using a 5-point Likert scales. Lastly,
section C comprises demographic information of respondents which are gender, age,
race and education and a screening question.
VARIABLES
ATB_A to ATB_F
SN_A to SN_D
PN_A to PN_F
PI_A to PI_E
VARIABLE’S DESCRIPTION
Attitude towards behaviour
Subjective norm
Personal norm
Purchase intention
Table 3.1 Socially responsible purchasing items identification
3.2 Method
250 questionnaires were collected by distributing them in Bandar Sunway and through
online distribution. However, only 178 questionnaires were used as 24 questionnaires
were incomplete and 48 questionnaires were omitted as respondents did not engage in
socially responsible purchasing before. From the 178 data, there were 95 female
participants (53.4%) and 83 male participants (46.6%).
3.3 Reliability and Factor Analysis
Oblimin rotation factor analysis was conducted to assess the uni-dimensionality and
discriminant validity of the instruments in TRA model and purchase intention by using
fixed number of factors to extract. Problematic items were suppressed. The new factors
were significant for KMO and Bartlett‟s test of adequacy
with 0.749. The
factors were then restructured as the following. Internal reliability tests were conducted
for all variables and the Cronbach‟s Alpha for each construct is more than 0.6, which is
considered as acceptable.
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
FACTORS
Attitude towards behaviour
Subjective norm
Personal norm
Purchase intention
NO. OF
ITEMS
3
2
2
4
ITEM VARIABLES
ATB_A, ATB_B, ATB_F
SN_C, SN_D
PN_A, PN_B
PI_A, PI_B, PI_D, PI_E
CRONBACH’S
ALPHA
0.745
0.686
0.842
0.637
Table 3.2 Socially responsible purchasing items’ identification
3.4 Instrument Analysis
Each statement in a construct was summed and averaged to secure a single measure for
each variable. Correlation analyses were conducted on purchase intention and each of
the following variables: attitude towards the behaviour, subjective norm and personal
norm. Multiple linear regressions analysis was conducted to assess the relationship
between TRA and purchase intention. In addition, mediation analysis was conducted to
test the mediating role of personal norm between subjective norm and purchase intention.
4.0 Results
4.1 Descriptive Statistics
VARIABLES
Attitude towards
behaviour
Subjective norm
Personal norm
Purchase intention
MEAN
3.8743
STANDARD DEVIATION
0.60853
3.7575
3.6766
3.2470
0.74619
0.72825
0.57364
Table 4.1.1 Mean and standard deviation of variables
All statements were measured with a 5-point Likert scale. Table 4.1 shows the mean of
the variables and the result shows that all variables have a mean which is higher than
neutral. This indicates that respondents‟ attitude towards behaviour, subjective norm and
personal norm are positive and led them to have a high intention in socially responsible
purchasing in the future. Besides that, the mean of subjective norm is slightly higher than
personal norm. This indicates that consumer‟s feelings about altruistic behaviour are
weaker than social pressure in socially responsible purchasing. However, both variables
are still positive. Standard deviation of 0.5 to 0.7 for each variable indicates that degree of
consistency among respondents is quite high.
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
4.2 Correlation Analysis
VARIABLES
Attitude towards
behaviour
Subjective norm
Personal norm
Purchase intention
Attitude
towards
behaviour
1
0.414
0.424
0.436
Subjective Personal
norm
norm
Purchase
intention
0.414
0.424
0.436
1
0.343
0.350
0.343
1
0.497
0.350
0.497
1
Table 4.2.1 Correlation among variables
The correlations among variables are all significant
. It indicates that H2, H3 and
H4 were accepted that each variable, attitude towards behaviour (0.436), subjective norm
(0.350) and personal norm (0.497) have a positive relationship with consumers‟ purchase
intention. Personal norm has a highest correlation with purchase intention than others.
However, correlation cannot test the causal relationship between independent variables
and dependent variables. Therefore, multiple linear regression was carried out to test the
casual relationship.
4.3 Multiple Regression Analysis
Multiple linear regression analysis was used to gauge the relative importance of each
variable in predicting purchase intention in socially responsible products. In this research,
the dependent variable is purchase intention while attitude towards behaviour and
subjective norm are independent variables.
The assumptions of multiple linear regression analysis, which are linearity,
multicollinearity, normality and homoscedastic, were all tested and passed. In order to get
the best result, the influential cases were deleted based on values that are greater than
Cook Distance
, Leverage
, Studendised residual | | or Mahalanobis
Distance
. Firstly, those influential cases were tested one by one to see whether
the R square increases or decreases compared to the original model (R square = 0.096).
The influential cases that lead the R Square to increase will be deleted from the model. In
contrast, the influential cases that lead the R Square to decrease will be maintained in the
model. Lastly, 11 influential cases were deleted and the model had developed by enter
regression:
Model 1
R
Square
0.225
Model Summary
Adjusted R
Std. Error of the
Square
estimate
0.215
.50812
Anova
F
Significant
23.783
0.000
Table 4.3.1 Model summary and anova of multiple linear regression
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Proceedings of 23rd International Business Research Conference
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Model
1
(Constant)
ATB
SN
Unstandardised
coefficients
B
Std. Error
1.373
0.275
0.331
0.071
0.157
0.058
Standardised
coefficients
Beta
t
Significant
0.351
0.205
4.651
2.707
0.000
0.008
Table 4.3.2 Coefficients of multiple linear regression
The credibility of this model was confirmed by the statistical significance of the F ratio
with the level of p<0.01 as shown in table 4.3.1. In the TRA model, purchase intention
was regressed on attitude towards behaviour and subjective norm. The result explained
22.5% of the variance in purchase intention of socially responsible products and
supported hypothesis 1. Both variables in the model were proved to have a significant
direct influence on purchase intention. For every 1 % increased in attitude towards
behaviour, the purchase intention in socially responsible products will increase for 33.1%.
For every 1% increased in subjective norm, purchase intention will increase for 15.7%.
4.4 Mediation Analysis
4.4.1 Subjective Norm, Personal Norm and Purchase Intention
Subjective
norm
0.35***
Purchase
intention
(0.204**)
Diagram 4.4.1 Mediation of personal norm
0.343***
0.497***
(0.427***)
Personal
Norm
Diagram 4.4.1 Mediation of personal norm
Diagram 4.4.1 shows the beta weight of subjective norm on purchase intention had
dropped from 0.35 to 0.204 after the inclusion of personal norm. Baron and Kenny (1986)
stated that there will be a significant mediation for the relationship if there is a significant
drop in beta after a variable is added. The result shows that personal norm has a
significant mediating effect on the relationship and then tested with Sobel‟s test. The test
indicated that personal norm has a significant partial mediating effect on the relationship
with a ratio of 0.7157 and z-value of 3.727229 (p<0.001). Therefore, hypothesis 6 was
accepted.
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
5.0 Discussion and Implication
5.1 Discussion
The main objective of this research is to find out if the theory of reasoned action which
comprises attitude towards behaviour and subjective norm could facilitate the prediction
of socially responsible purchasing in Malaysia. The results of this study showed that the
model of TRA was statistically significant to explain 22.5 percent of variance in
consumer‟s intention in socially responsible purchasing. This is in line with a study that
both attitude towards behaviour and subjective norm will positively affect loan
applications (Ryan and Bonfield, 1980). Therefore, the TRA is a valid model of prediction.
Consistent to the study by Gwendolyn and Marsha (2008), this research found that
attitude is positively and significantly related to purchase intention (β= 0.331). The
findings also showed that subjective norm positively and significantly predicted purchase
intention (β=0.157). This further confirmed the study by Suddin Lada et al. (2009). In the
multiple linear regression model, attitude towards behaviour has a higher ability to predict
purchase intention (β= 0.331) than subjective norm (β=0.157). The results are consistent
with prior researches which found that attitude has a higher predictive value than
subjective norm (Thompson and Thompson, 1996; Syed Shah Alam and Nazura
Mohamed Sayuti, 2011).
From the research, it is also found that personal norm which is not included in the TRA,
has the highest correlation of 0.497 with the purchase intention among the three
predictors. The result concluded that besides attitude and subjective norm, personal norm
can also positively predict purchase intention. In addition, the research found that
personal norm has a significantly partial mediating effect on subjective norm and
purchase intention with a ratio of 0.7157. The finding is in line with the study by Taute and
McQuitty (2004). Lastly, this research found that personal norm also partially mediated
attitude and purchase intention with a ratio of 0.5855.
5.2 Implications
The attitude towards behaviour appeared to most effectively predict purchase intention of
socially responsible products in Malaysia. In order to encourage socially responsible
purchasing, companies in Malaysia should focus on public activities such as designing
awareness campaigns to influence consumers‟ beliefs and attitudes regarding socially
responsible purchasing. As subjective norm is also a predictor of purchase intention, the
government and companies should focus on creating social expectations regarding
socially responsible purchasing. It is also recommended for socially responsible
companies to focus on promoting their CSR activities such as a better CSR disclosure In
addition, the government may consider giving education regarding socially responsible
purchasing to improve consumers‟ personal moral beliefs as they may act differently if
they have more knowledge regarding this issue.
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Proceedings of 23rd International Business Research Conference
18 - 20 November, 2013, Marriott Hotel, Melbourne, Australia, ISBN: 978-1-922069-36-8
6.0 Conclusion, Limitations and Future Research
In conclusion, this research shows that the theory of reasoned action provides a useful
conceptual framework in predicting the purchase intention of socially responsible
products. Attitude towards the behaviour and subjective norms are found to predict
purchase intention in socially responsible products. The findings were matching the
objectives in this research. Although there are plenty of evidences for the relationship
between attitude towards the behaviour, subjective norms and purchase intention, the
model still cannot accurately predict behavioural intention. Therefore, an extra
independence variable, personal norm was incorporated into this research and the results
showed that personal norm did improve the prediction. Hence, the extended model
provides a better understanding in socially responsible purchasing from psychosocial
perspectives.
This research identifies a few constraints that can be looked into in future research.
Firstly, this research is done with the majority of respondents being in the age group of 20
to 30 years. Regarding the limitation, future research might consider to identify
respondents with more different age groups. Secondly, the research is restrictive as the
survey distribution is limited to a small suburban area, that is, Bandar Sunway. Hence,
the results may or may not be suitable in other places. Therefore, collecting data from
respondents in different areas is encouraged for future research. Thirdly, the model of
this research is made up from three identified determinants such as attitude toward the
behaviour, subjective norms and personal norm. Future research might consider
incorporating more possible determinants such as respondent‟s motivation to purchase
and other psychological factors. Furthermore, quantitative method (questionnaires) was
used in this research. Qualitative research method such as interviews and secondary
data could be used in future research.
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