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IJESM
13,1 Determinants of purchasing
intentions of energy-efficient
products
128 The roles of energy awareness and
perceived benefits
Mamoun N. Akroush
Graduate School of Business Administration, German Jordanian University,
Amman, Jordan
Majdy I. Zuriekat
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Abstract
Purpose – This paper aims to identify factors affecting consumers’ purchasing intentions of energy-
efficient products (energy awareness, perceived benefits, perceived price and consumers’ attitudes). Also, it
examines the effect of consumers’ attitudes on purchasing intentions of energy-efficient products (EEP) from
households’ perspectives in Jordan.
Design/methodology/approach – A self-administered survey was hand-delivered to the targeted
sample of households in Amman, Jordan. A total of 516 questionnaires were delivered to households from
which 474 were valid for the analysis. Exploratory and confirmatory factor analyses were performed to assess
the research constructs dimensions, unidimensionality, validity and composite reliability. Structural path
analysis was also used to test the hypothesised relationships of the proposed research model.
Findings – Energy awareness positively and significantly affects purchasing intentions, perceived benefits
and consumer attitudes. Energy awareness negatively but non-significantly affects perceived price. Perceived
benefits positively and significantly affect consumer attitudes and purchasing intentions. Further, perceived
price negatively and significantly affects perceived benefits and consumers attitudes. Also, consumers’
attitudes positively and significantly affect purchasing intentions. Consumers’ attitudes exerted the strongest
effect on purchasing intentions of EEP; meanwhile, consumers’ attitudes are a function of perceived benefits
and energy awareness. Finally, the results show that 50 per cent of variation in purchasing intentions of EEP
was caused by perceived benefits–consumers’ attitudes–energy awareness path.
Research limitations – Future research needs to investigate other factors that may affect households’
intentions of purchasing EEP such as perceived brand and image of EEP, perceived risk, word-of-mouth,
subjective norms and households’ cost-saving experience. Investigating and identifying types of perceived
benefits of purchasing EEP from households’ perspectives is also important. Comparative studies between
Jordanian and non-Jordanian consumers/households are potential areas of future research. Methodologically,
International Journal of Energy
Sector Management
future research can conduct comparative analysis between households and energy industry engineers and
Vol. 13 No. 1, 2019 managers perceptions’ with regard to determinants of perceived benefits and purchasing intentions.
pp. 128-148
© Emerald Publishing Limited
1750-6220
Practical implications – This paper highlights the crucial role of perceived benefits and energy
DOI 10.1108/IJESM-05-2018-0009 awareness in formulating households’ attitudes towards EEP and the vital role of such attitudes on
purchasing intentions. Marketing directors and CEOs of the energy industry should recognised that perceived Purchasing
benefits, attitudes and energy awareness are vital building blocks in formulating and implementing
marketing strategies to operate in this industry. Also, purchase intentions are a function of positive attitudes intentions of
of household toward EEP and are at the heart of EEP marketing communications campaigns. energy-efficient
Originality/value – This is the first paper in the energy industry of Jordan devoted to develop and test a products
model of determinants of purchasing intentions of EEP that focuses on energy consumption behaviour. CEOs,
international manufacturers and marketing managers of EEP can benefit from the study’s empirical findings
concerning the drivers of EEP purchasing intentions and behaviour decisions of households in Jordan as an
emerging market in the Middle East. 129
Keywords Structural equation modelling, Surveys, Perceived price, Confirmatory factor analysis,
Perceived benefits, Buying intentions, Consumers’ attitudes, Energy awareness,
Energy-efficient products
Paper type Research paper
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Introduction
The energy demand and consumption has been increasing rapidly over the past few decades
because of the disruptive changes in energy industries and services and changes in people’s
lifestyle around the world. The world is currently consuming about 9,000 MTOE of energy
which has doubled during years 1971-2014; meanwhile, the total primary energy supply was
multiplied by almost 2.5 times for the same period, showing serious environmental
consequences especially in the heat and electricity production which contributes to 25 per
cent of the global greenhouse gas emissions (International Energy Agency, 2016a, 2016b).
On the other hand, energy security has also emerged in the recent decades as a major
concern to the global challenges because of the volatility of oil prices and the turbulences
that have taken place to the oil markets since 2003. Energy security is identified as one of the
key drivers of nations’ economic growth and highly that affects the people’s quality of life.
Hence, it is considered crucial to face this challenge through enhancing the long-run energy
security through improving energy efficiency, developing and diversifying energy supplies,
as well as managing short-term volatility (World Bank, 2005).
The effectiveness of energy policies is still a debatable argument; however, some
researchers concluded that incentives schemes are capable of encouraging the purchase of
energy-efficient products (EEP). Other scholars argue that economic or financial incentives
are not as effective as enforceable regulations in enhancing the adoption rate of EEPs (Prete
et al., 2017). However, the adoption of energy efficient technologies is not new topic of
research per se. In fact, the subject is one of the most controversial research topics ever since
the emergence of the “energy paradox” concept two decades ago. The energy paradox (also
called the energy efficiency gap) is a known phenomenon that refers to the less than optimal
diffusion of energy efficiency technologies – despite their absolute economic returns. The
energy efficiency gap suggests that consumers’ engage in the excessive discounting of
future energy savings and, hence, minimizing their present value which affect their
perceived feasibility (Gillingham and Palmer, 2014). Earlier, Jaffe and Stavins (1994) have
referred to the causes of the energy efficiency gap to a number of what they called “market
failures” referring to the nature of the energy-efficient technologies market. These failures
are related to the availability of information, uncertainty about the energy-efficient
technologies’ performance and the future energy prices as well as the irreversible nature of
the decisions related to the adoption of the energy efficient technologies. Two decades later,
Wilson et al. (2015) suggested another classification of the causes of the energy efficiency
gap which includes financial barriers related to the capital availability and aversion of
delayed gains, informational barriers resulting from misconception about energy efficiency
IJESM and, finally, decision-making barriers mainly related to the cognitive burden of making
13,1 complex and irreversible decisions.
Many studies (Bouton et al., 2010; Ma et al., 2011; Janaki and Shanthi, 2013; Zainudin
et al., 2014; Bedenik et al., 2015; Maiorano and Savan, 2015; Dato, 2017) have examined the
influence of information availability and energy awareness on the intention towards energy-
related behaviour, while few studies (Tangari and Smith, 2012; Claudy et al., 2013; Tran,
130 2014) have given attention to psychological factors that affect consumers’ intentions
towards energy consumption behaviour. Moreover, a growing body of literature has
concentrated on studying the green purchasing intentions of consumers worldwide through
their behaviour and awareness (Ha and Janda, 2012; Giang and Tran, 2014; Lin, 2015; Wang
and Wang, 2016). The awareness of EEP is highly linked to consumer behaviour in the
frame of existing knowledge about the benefits from using EEP regardless the prices of such
products (Makijenko et al., 2016).
The perception of price is usually connected to the consumers’ perception of quality
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and value. Teas and Agarwal (2000) emphasised the complex relationship between price,
quality, benefits and value. Claudy et al. (2013) indicated that consumers’ perception of
the solar panels benefits was illustrated by three main outcomes of their adoption; these
are:
(1) the energy cost savings;
(2) environmental benefits; and
(3) the independence of the conventional energy sources.
The literature that address the effect of perceived price on the EEP perspective are
considered narrow, although the perceived price of consumed energy has been more
frequently investigated to evaluate the effectiveness of price-based strategies or its effect on
the energy demand and the utilities pricing methods. Purchasing intention is an emotional
response resulting from consumers’ overall evaluation of an efficient product and also
indicates the possibility that consumers would like to buy (Wu and Chen, 2014). Purchasing
intention mediates the relation between consumers’ attitudes towards the purchasing
decision and the actual consumer behaviour (Wang and Wang, 2016).
Consumers in developed countries are anxious about using EEP; therefore, more
empirical research is needed to determine EEP purchasing intention in developing countries
(Singh and Gupta, 2013; Paul et al., 2016). The lack of empirical studies investigating how
consumers’ awareness of the EEP benefits affects their purchasing intention and behaviour
might be unforeseen, particularly when comparing the prices with high efficiency products.
This gap is also considered a further prospect for empirical research to identify methods to
encourage for EEP adoption (Holt, 1998; Ward, 2010; Buchanan et al., 2014).
As an emerging market, Jordan is a small country with poor access to energy sources;
hence, it imports no less than 97 per cent of its energy, mainly as oil derivatives used for
producing electricity. Jordan’s energy dilemma has been exacerbated by the flow of
emigrants from the conflict zones in Iraq and Syria, increasing the electricity consumption
(Ministry of Energy and Mineral Resources, 2015). To face the challenges caused by the
extensive emigration from nearby conflict zones to Jordan, the Jordan Response Plan 2016-
2018 has been formulated to cope with the transformational change in energy supply and
demand dynamics through sustainable energy solutions to meet the rising residential
energy demand and through expanding the renewable energy solutions to meet the demand
expansion (Ministry of Planning and International Cooperation, 2016). Such emphasis on the
residential sector is emphasised because the households’ consumption is 43 per cent of the
total electricity consumption in Jordan and is heading the list of electricity end-users sectors Purchasing
(Ministry of Energy and Mineral Resources, 2015). intentions of
Identifying the key antecedents and moderators that influence consumers’ attitudes
toward purchasing EEP are determined based on social, economic and technological factors.
energy-efficient
EEPs in the developed countries are well used by consumers because the level of energy products
awareness is well perceived. Nevertheless, the EEPs are relatively new for Jordanian
businesses; there are only few studies about the product and marketing in Jordan. To fill
these gaps, the present study aims to investigate some of the psychological factors 131
influencing consumers’ attitudes and purchase intention towards household EEP in Jordan,
through proposing and testing a model of determinants of EEP purchasing intentions.
Consequently, the study objectives are:
examining the relationship between energy awareness and purchasing intentions of
EEP, perceived benefits, consumer attitudes and perceived price;
investigating the relationship between perceived benefits and consumer attitudes
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In addition to introduction, the research is organised into several sections; the second section
provides research model and hypotheses development; the third section explains the
research methodology, variables measurements and hypotheses testing. Finally, the study
presents results discussion, implications, contribution and future research directions.
purchasing such products are the most substantial factor influencing their purchase
intention. However, those findings directly contradict with the findings of Mei et al. (2012),
who found that the energy purchase intentions can be predicted by the level of energy
awareness and with the findings of Buchanan et al. (2014), who also suggested a positive
influence of the energy awareness on the purchase intention of EEP. The debate of the
specified contribution of the energy awareness on the behaviour intention has not been
matured in the literature to this time, and it is always considered subject to different
contingent factors that makes it a fruitful area of investigation. Hence, this study
hypothesises that:
H2. Energy awareness will be positively related to consumers’ attitudes toward energy-
efficient products.
Researchers (Mei et al., 2012; Tran, 2014; Lin, 2015) have attempted to study households’
knowledge about energy consumption and energy-saving technologies and found that it
influences the energy conservation practices but not the adoption of energy-efficient
technologies. Further, they found that the adoption of energy-efficient technologies is more
related to environmental and financial concerns (Mills and Schleich, 2012). These findings
Perceived H5
Benefits
H3 H7 H6
H4 H8
Perceived
Price
Figure 1.
Proposed model
H1
indicate that the information campaigns might not be the optimal choice to encourage the Purchasing
adoption of energy efficient technologies. On contrary, Wu and Chen (2014) found that intentions of
awareness about the environmental impact of certain products directly influence the
purchase intention of green products as well as indirectly through influencing the perceived
energy-efficient
value of these products. Their findings have revealed that energy awareness positively products
influences the perceived value. Also, their study opened an avenue for further investigation
of energy awareness on the perceived value main components, namely, the perceived
benefits and the perceived cost. Hence, this study hypothesises that: 133
H3. Energy awareness will be positively related to perceived benefits of energy-efficient
products.
H6. Perceived benefits will be positively related to consumers’ attitude toward energy-
efficient products.
IJESM Perceived price hypotheses
13,1 Although the perceived price is studied extensively in different industries, its influence has
rarely been studied in the context of EEP for households. The general findings of the
literature have indicated a strong influence of the perceived price on both the consumers’
perceived benefits and attitude. For instance, Varki and Colgate (2001) have contrasted the
influence of the price perception vis-à-vis quality on the consumers’ perception of value and
134 found that the price perception outperformed perceived quality. This finding has been
further verified by Kim et al. (2005), who studied the influence of the perceived price over the
consumers’ perception of the internet shopping benefits and found a negative influence of
the perceived price over perceived value for all type of customers studied. Many researchers
(Huijts et al., 2012; O’Driscoll et al., 2013) have examined the effect of the perceived price on
both consumers’ attitudes and purchase intention, some researchers has defined only two
roles for the perceived price, one is that it positively influence the quality perception, and
through this mediating factor, it indirectly positively influence consumers’ attitude and
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intention to purchase; the second role is its direct negative influence on the purchase
intention. Other researchers (Tarkiainen and Sundqvist, 2005; Kim et al., 2012) provided
evidence on the contradiction between the perceived price and consumers’ purchase
intention. An explanation for these inconsistent findings may be the lack of control in these
studies for differences in the implementation and the actual way in which the research
constructs are measured. Hence, this study hypothesises that:
H8. Perceived price will be negatively related to consumers’ attitudes toward energy-
efficient products.
Research methodology
Research sample
The presents study uses the quantitative paradigm. The research approach is deductive
which aims to test theory based on number of hypotheses that were formulated based on
previous research to achieve the research objectives (Hair et al., 1998; Churchill, 2001). The Purchasing
research population is all households living and paying electricity bills in Amman, Capital intentions of
of Jordan; a city of approximately 865339 households (Population and Social Statistics
Directorate, 2015). Access to households’ database from Jordan’s National Electric Power
energy-efficient
Company for sampling purposes was denied. Hence, a two-stage non-probability sampling products
strategy was used, convenience/quota sampling. Previous research (Abrahamse and Steg,
2009, 2011; Lin, 2015) underlined that using selection criteria for participants selection in a
survey is used and encouraged. Therefore, households in Amman were selected based on 135
specific criteria to be eligible for participation in the survey. The sampling elements criteria
are: the household should be; first, living in Amman; second, aware of his/her electricity
bills; third, aware of energy-efficient products and savings; and fourth, an adult and
responsible about the electricity bill. Further, convenience sampling is an acceptable
sampling method to adopt and is sufficient for multivariate data analysis purposes (Hair
et al., 1998; Ahn et al., 2016). The household income level was selected as a control variable
(Abrahamse and Steg, 2009, 2011) for quota sampling. The income level is a prime factor for
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classifying electricity population where its elements share similar social class, culture,
values and level of knowledge and awareness (Ahn et al., 2016). Following similar
procedures outlined by Abrahamse and Steg (2009, 2011), Lin (2015) and Ahn et al. (2016),
the study’s questionnaire was directed to those who have direct awareness and experience
with EEP. Finally, 516 participants were contacted and agreed to participate in the survey.
Hand-delivered surveys were distributed and administered by four well-trained research
assistants to 516 households in Amman; the unit of analysis was “the household” who is
aware and experienced with EEP. The EEP included in our survey are lamps, photovoltaic
(PV) systems, solar heating systems and many other households’ appliances such as fridges,
microwaves and washing machines that are designed to reduce the consumption of energy.
Measurement items
Items measuring the questionnaire’s constructs were derived from previous research, as
shown in Table I. Energy awareness was measured using a three-item scale (Bang et al.,
2000; Tanner et al., 2003; Ha and Janda, 2012). Perceived benefits were measured using a
four-item scale (Sweeney and Soutar, 2001; Wu and Chen, 2014). Perceived price was
measured using a three-item scale (Petrick, 2002; Wu and Chen, 2014). Consumers’ attitudes
were measured using a three-item (Tanner et al., 2003; Ha and Janda, 2012). With regard to
purchasing intentions, it was measured by a four-item scale (Bei and Yu, 2001; Wu and
Chen, 2014). All the research constructs were measured on five-point Likert-type scales
ranging from 5 “Strongly Agree” to 1 “Strongly Disagree”. A small section was also
included in the questionnaire to study the profile of respondents.
Family size
2-3 persons 14.3
3-4 persons 36.3
5-6 persons 34.0
More than 6 persons 15.4
House size (Area)
Less than 100 Sq.m 10.5
100-149 Sq.m 39.5
150-199 Sq.m 31.4
More than 200 Sq. m 18.6
Average monthly electricity bill
Less than 10 JDs 5.9
10-19 JDs 22.4
20-29 JDs 22.4
30-39 JDs 21.1
Table I. 40-49 JDs 9.3
Profile of More than 50 JDs 19.0
respondents Total 474
examined the questionnaire for face and content validity purposes. The pilot study was
insightful upon which a number of amendments were carried out on the first draft of the
survey (e.g. content, wording, design and layout). Using the survey method is supported by
previous studies that have investigated EEP within the consumer behaviour research
context (Abrahamse and Steg, 2009, 2011; Tangari and Smith, 2012; Claudy et al., 2013; Ahn
et al., 2016). The participants were asked the extent to which they agree or disagree with
the items of the factors affecting their purchasing intentions of EEP. They were also
asked about their purchasing intentions in the future. The respondents were reminded
twice via phone calls and emails. The delivered surveys were 516 from which 474 were
gathered and valid for the analysis; the response rate was 91.9 per cent. The response rate
is high because the personal delivery method is one of the best data collection methods
that usually yields high response rate (Malhotra, 2010). The study took place over a
period of four months. Further, face validity is evidenced through the pilot work of the
research instrument with leading energy-efficient experts (engineers) as well as two
academics from reputable business schools in Jordan who checked the relevance and
appropriateness of the questionnaire to achieve the research objectives. Content validity
is evidenced by explaining the methodology used to develop the survey (Churchill, 2001), Purchasing
which included: intentions of
examining the previous work of factors affecting consumers’ purchasing intentions
energy-efficient
of EEP; and products
conducting the pilot study before starting the fieldwork.
137
Profile of respondents
Table I presents the profile of respondents. Analysis of the respondents profile shows that
56.8 per cent are males and 43.2 per cent are females. More than 80 per cent of the
respondents are young and aged between 18 and 50 years old (24.3 per cent are 18-28 years;
40.1 per cent are 29-38 years; 21.9 per cent are 39-48 years; 13.7 per cent are more than 49
years) and well educated (18.4 per cent hold # high school; 15.4 per cent hold two years
college; 48.5 per cent hold bachelor’s degree; 17.7 per cent hold graduate degrees). Two-third
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of the participants have family size between 3 to 6 people (14.3 per cent have 2-3 people; 36.3
per cent have 3-4 people; 34.0 per cent have 5-6 people; 15.4 per cent have more than 6
people). Two-third of households live in houses where sizes range between 100 to 200 Sq.m
(10.5 per cent # 100Sq.m; 39.5 range 100-149 Sq.m; 31.4 range 150-199 Sq.m; 18.6 per cent >
200 Sq.m). Also, the majority of households pay electricity bills between 10-40 JDs per
month (5.9 per cent pay # 10 JDs; 22.4 per cent pay 10-19 JDs; 22.4 per cent pay 20-29 JDs;
21.1 per cent pay 30-39 JDs; 9.3 per cent pay 40-49 JDs; and 19.0 per cent pay >50 JDs).
EA3 Conventional products pose serious energy problems; hence, energy 0.80 0.91
efficient products are needed
Perceived Benefits: Eigenvalue = 1.19; CR = 0.77; AVE = 0.55 Factor 2 Factor 2
PB1 Energy-efficient products give me extra value for example, economic 0.63 0.62
value, environmental value, social
PB2 Energy-efficient products have high utility 0.81 0.61
PB3 Energy-efficient products can meet my requirements 0.67 0.72
PB4 Energy-efficient products give me more benefits than the costs 0.42 Deleted
Perceived Price: Eigenvalue = 1.53; CR = 0.88; AVE = 0.71 Factor 3 Factor 3
PP1 The price of energy-efficient product is not expensive 0.85 0.76
PP2 The price of energy-efficient product is not higher than the ordinary ones 0.81 0.74
PP3 The price of energy-efficient product is not higher than my expectation 0.64 0.60
Consumers Attitudes: Eigenvalue = 3.73; CR = 0.83; AVE = 0.62 Factor 4 Factor 4
CA1 Energy efficiency is important to me when making purchases 0.68 0.61
CA2 If I can choose between energy-efficient and conventional products, I 0.82 0.75
prefer energy-saving one
CA3 I have a favorable attitude towards purchasing an energy-efficient product 0.83 0.84
Purchasing Intentions: Eigenvalue = 2.77; CR = 0.89; AVE = 0.67 Factor 5 Factor 5
BI1 I like to purchase energy-efficient products 0.83 0.78
BI2 I will pay more money on energy-efficient products 0.80 0.72
BI3 I will take energy-efficient products as a first consideration 0.86 0.86
BI4 I will recommend other people to purchase energy-efficient products 0.81 0.74
CFA Model Goodness of Fit Indices
Model Goodness of Fit Indices Model Desired CFA Model CFA Analysis
Level Indices Results
Chi-Square x 2, P 0.05 x = 220, p = 0.000
2
Confirmed the
Normed fit index NFI 0.90 0.93 CFA cut-off points
Non-normed fit index NNFI 0.90 0.95
Comparative fit index CFI 0.90 0.96
Goodness-of-fit index GFI 0.90 0.95
Adjusted goodness-of-fit index AGFI 0.80 0.93
Standardized root mean-square residual SRMR # 0.08 0.03
Root mean square error of approximation RMSEA < 0.08 0.04
Table II.
Exploratory and Source: *Outputs of Exploratory Factor Analysis derived from SPSS.V22 software, and Confirmatory
confirmatory factor Factor Analysis derived from EQS6 software to reveal the research constructs unidimensionality,
analyses results* composite reliability, construct validity and discriminant validity
For brevity, only the outputs of EFA and CFA analyses are presented. Using SPSS.V22 Purchasing
software, the EFA revealed the presence of five distinct factors with eigenvalue greater intentions of
than 1.0, rather than a single factor (Hair et al., 1998). The five factors together
accounted for 59.3 per cent of the total variance; the first (largest) factor did not account
energy-efficient
for a majority of the variance (it accounted for only 26 per cent). Thus, no general factor products
was apparent and dominant indicating that CMV was not of concern and did not affect
construct validity (Podsakoff and Organ, 1986; Podsakoff et al., 2003; Krishnan et al.,
2006). Using SPSS.V22 software, the same procedure was performed with principal 139
component analysis with varimax rotation which revealed the presence of five distinct
factors with eigenvalue greater than 1.0, rather than a single factor; the SPSS.V22
analysis indicated that first (largest) factor did not account for a majority of the
variance; it did not exceed 26 per cent.
In addition to the previous procedures, CFA test was conducted on one factor model. All
the research items were loaded onto one factor to examine the fit of the CFA model.
According to Mossholder et al. (1998), if CMV is largely responsible for the relationship
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among the variables, then the one-factor CFA model should fit the data well. The findings of
the CFA analysis showed that the single-factor model did not fit the data well (v2 = 816, p =
0.00, NFI = 0.71; NNFI = 0.70; CFI = 0.74; GFI = 0.74; AGFI = 0.70; SRMR = 0.09 and
RMSEA = 0.12). A comparison between single-factor model and five-factor model fit indices
(Mossholder et al., 1998), shown in Table II, revealed that CMV was not of concern in this
research, as the fit indices of the five-factor model showed a better parsimonious results
(Hair et al., 1998).
Convergent validity is examined by using the Bentler–Bonett normed fit index (NFI)
(Bentler and Bonett, 1990). All of the constructs have NFI values above 0.90. Further, as
shown in Table II, indication of the measures’ convergent validity is provided by the
fact that all factor loadings are significant and that the scales exhibit high levels of
internal consistency (Fornell and Larcker, 1981; Gerbing and Anderson, 1988). Also, as
shown in Tables II and III, the values of Composite Reliability (CR) and Average
Variance Extracted (AVE) for each construct are all above the threshold suggested by
Bagozzi (1980): 0.70 and 0.50, respectively. Consequently, the discriminant validity is
established by first, the absence of significant cross loadings that are not represented
by the measurement model (i.e. congeneric measures) indicating constructs
unidimensionality (Gerbing and Anderson, 1988); and second, discriminant validity is
established between two constructs if the AVE of each one is higher than the shared
variance. Comparing the shared variance and AVE values provided support for
discriminant validity, as shown in Table III.
Constructs Mean SD 1 2 3 4 5
Perceived 0.17*
Benefits
0.26*
0.26* 0.36*
0.36*
–0.17*
0.08*
–0.08 0.16*
–0.16*
Perceived
Figure 2. Price
Empirical research
model
0.09*
Results discussion
The main objective of this study was to identify factors affecting consumers’ buying
intentions of EEP (energy awareness, perceived benefits, perceived price and consumers’
attitudes). Also, it examined the effect of consumers’ attitudes on buying intentions of EEP
from households’ perspectives. The understanding of consumers’ attitudes toward EEP
buying intention is completed by amplifying the key role of energy awareness on the
perceived benefits of using EEP on one hand and reducing the perceived price of such
products on the other hand. Our findings show that energy awareness has a positive and
significant effect on consumers buying intention which is supportive to our argument and
consistent with previous research (Ha and Janda, 2012; Paul et al., 2016). Therefore, higher
level of energy awareness of EEP improves consumers’ ethical commitments and motivate
them to purchase EEP, hence, leading to higher acceptance of the purchase behavior of such
products displayed by others because the purchase is considered socially acceptable
behavior (Leelakulthanit, 2014; Giang and Tran, 2014; Lin, 2015).
The results show that 28 per cent of consumers’ attitude was caused by the path of
perceived benefits and perceived price, and more notably, 50 per cent of consumers’
purchasing intention was caused by the path of perceived benefits, consumers’ attitude and
energy awareness. Energy awareness has a positive and significant effect on consumers
purchasing intention which is consistent with previous research (Ha and Janda, 2012; Paul
et al., 2016). Therefore, higher level of energy awareness of EEP improves consumers’ ethical
commitments and motivate them to purchase EEP, hence, leading to higher acceptance of
the purchase behaviour of such products displayed by others because the purchase is
considered socially acceptable behaviour.
Incorporating perceived benefits and energy awareness in this research is crucial and
provides a better understanding of drivers of purchasing intention decisions for EEPs.
Consequently, perceived benefits has a positive and significant effect on consumers’ attitude
towards EEP, which is in line with the general previous research findings (O’Driscoll et al.,
2013; Leelakulthanit, 2014). Perceived price has a negative and significant effect on both
perceived benefits and consumers’ attitude. This was supported by Makijenko et al. (2016),
who indicated that the awareness of EEP is highly related to consumers’ existing knowledge
about the perceived benefits from using the products irrespective to prices. Accordingly, the
effect of perceived price on consumers’ attitude can be considered an important factor to
consider when suggesting marketing plans for EEP because consumers’ attitude are
perceived by the value and quality of such products which will influence consumers’
IJESM purchasing intention of EEP. However, the empirical results of this study show that
13,1 consumers’ purchasing intention is a function of high energy awareness and consumers’
attitudes. The study also reveals that consumers’ attitude towards EEP has a positive and
significant effect on purchasing intention, which is consistent with previous studies (Giang
and Tran, 2014; Schwarzer et al., 2015). Thus, it can be argued that Jordanian consumers’
attitude towards purchasing intention of EEP is positive because of increased energy
142 awareness and perceived benefits of using such products.
Conclusions
The empirical findings of this study show that households’ buying intentions of EEP are a
function of perceived benefits, consumers’ attitudes and energy awareness. Consumers’
attitudes are very crucial for buying intentions, and attitudes are a function of perceived
benefits, perceived price and energy awareness. Consequently, EEP can have superior
features and can save costs compared with traditional energy products. However, marketing
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perceived benefits of those products compared with the traditional ones (Wilson et al., 2015).
Third, managers need to focus on key marketing messages while targeting EEP consumers;
the heart of such messages is providing sound and objective evidence that explains the
perceived benefits (gains) which consumers would achieve as a result of their purchase
decisions. Fourth, this study indicates that consumers’ attitudes are the most significant
driver of buying intentions of EEP; therefore, managers should recognise the fact that
formulating strong and positive attitudes in consumers’ minds and hearts acts as a
cornerstone for buying intentions decisions and even for future purchase decisions (Tran,
2014). Fifth, our study guides managers on how to identify the paths required for
formulating consumers’ attitudes and buying intentions; therefore, perceived benefits,
consumers’ attitudes and high energy awareness drive buying intentions and perceived
benefits, perceived price and a high energy awareness drive consumers’ attitudes. Further, a
high level of energy awareness has multiple positive associations with perceived benefits,
consumers’ attitudes and buying intentions, and a low level of energy awareness has a
negative but non-significant association with higher perceived price which underlie its
crucial role in households’ purchase decisions of EEP (Ha and Janda, 2012; Lin, 2015; Wang
and Wang, 2016). Sixth, international EEP managers should explain economic, social and
environmental values to their target segments as “selling propositions” to influence their
attitudes and behaviour to buy such products and replace the traditional ones. This process
can be achieved based on a network of retailers who are able to reach selected target
customers that seek these values while planning their buying intentions of EEP.
With regard to research limitations, the study identifies theoretical and methodological
limitations which warrant further future research. The study examined four determinants of
consumers’ purchasing intentions of EEP. Future research needs to investigate other factors
that might affect households’ intentions of purchasing EEP such as perceived brand and
image, perceived risk, word-of-mouth, subjective norms and households’ cost-saving
experience. Consumers’ attitude is the strongest driver of purchasing intentions; therefore,
future research can use qualitative research to investigate factors that formulate consumers’
attitude toward EEPs. Perceived benefits are a fundamental determinant of consumers’
attitudes toward EEPs. This finding is consistent with and supportive to the marketing-
orientation concept which focuses on benefits as a major determinant of consumers’ attitudes in
the consumer behaviour field. Consequently, a fruitful area of research might investigate the
types of perceived benefits of purchasing EEP from households’ perspectives to serve
marketing directors and CEOs of the energy industry in formulating and implementing
marketing strategies to enhance market penetration. The study found that energy awareness
IJESM was negatively but non-significantly related to perceived price; however, future research should
13,1 investigate why households are aware of the energy problem, but the perceived price is still
high. Is this related to marketing communications and promotional methods and channels
being used? Or is it related to the “quality” of energy awareness campaigns?
Marketing and consumer behaviour aspects should be at the heart of the energy sector
practice to shape households’ consumption behaviour. Therefore, examining consumers’
144 satisfaction, loyalty, retention and future purchase intention are rich areas of future research
within the EEPs context. Moreover, EEP are manufactured by international manufacturers;
therefore, from an international marketing standpoint, comparative studies between Jordanian
and non-Jordanian consumers/households are potential areas of future research for
international marketing strategies and cross-cultural consumer behaviour analysis. From a
methodological standpoint, while the unit of analysis in this paper was the “household”, future
research can conduct comparative analysis between households and energy industry engineers
and managers perceptions’ with regard to determinants of perceived benefits, perceived price,
attitudes and purchasing intentions of EEP. Such comparative analysis would enable decision
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makers in the energy sector to identify “gaps” in the perceptions between managers and
households. Further, this study investigated an integrated model of households’ purchasing
intentions through testing the direct relationships between the research constructs. Future
research should investigate if households’ satisfaction acts as a mediator on the relationship
between their attitudes and purchasing intentions of EEP. Other mediators and/or moderators
may be investigated to understand other factors affecting consumers’ attitudinal and
behavioural relationships tested in our model. Qualitative research is also applicable, as
understanding consumers’ behaviour in the energy industry is still in its early stages. Future
research may also investigate if households’ awareness, perceived benefits, perceived price,
attitudes, intentions and consumption behaviour are different because of the type of product,
brand and country of origin.
Managerial implications
CEOs and marketing managers can plan and execute smart marketing communications
campaigns targeting selected market segments (i.e. households) to create a complete
awareness in households minds related to EEP. This would influence and facilitate their
purchase process decisions with focus on the perceived benefits expected while purchasing
such products and the expected incentives schemes (Bichard and Kazmierczack, 2009).
Managers can also formulate consumers’ attitudes toward EEP by focusing on enhancing
the level of energy awareness and the perceived benefits of those products compared with the
traditional ones (Wilson et al., 2015). This study indicates that consumers’ attitudes are the
most significant driver of purchasing intentions of EEP; therefore, managers can suggest
several actions and strategies to build strong and positive attitudes in consumers’ minds and
hearts acts as it is considered the cornerstone for purchasing intentions decisions and, even for
future purchase decisions.
The study also guides managers on how to identify the paths required for formulating
consumers’ attitudes and purchasing intentions; therefore, perceived benefits, consumers’
attitudes and high energy awareness drive purchasing intentions and perceived benefits,
perceived price and a high energy awareness drive consumers’ attitudes (Lin, 2015). Finally,
international EEP managers can explain economic, social and environmental values to their
target segments as “selling propositions” in order to influence their attitudes and behaviour
to buy such products and replace the traditional ones (Wang and Wang, 2016). This process
can be achieved based on a network of retailers who are able to reach selected target
customers that seek these values while planning their purchasing intentions of EEP.
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Corresponding author
Mamoun N. Akroush can be contacted at: mamoun.akroush@gju.edu.jo
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