Determinants of purchasing intentions of energy-efficient products

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, future research can conduct comparative analysis between households and energy industry engineers and managers perceptions’ with regard to determinants of perceived benefits and purchasing intentions. Practical implications This paper highlights the crucial role of perceived benefits and energy 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 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 of household toward EEP and are at the heart of EEP marketing communications campaigns. Originality/value This is the first paper in the energy industry of Jordan devoted to develop and test a 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.