Understanding Generation Z’s Purchase Intention Towards Green Skincare Products in Kingston Upon Hull, United
Kingdom
Nadia Almas Tsaabitah1*
1 School of Business and Management, Institut Teknologi Bandung, Bandung, Indonesia
*Corresponding Author:[email protected]
Accepted: 15 September 2022 | Published: 1 October 2022 DOI:https://doi.org/10.55057/aje.2022.3.3.9
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Abstract: With Generation Z's increasing awareness of environmental problems, the rise of eco-friendly products is in high demand. Regarding skincare products, Generation Z is the newest consumer who enters the market with a decent knowledge of environmental problems—
using the Theory of Planned Behaviour (TPB), product knowledge, price consciousness, and environmental knowledge. This paper aims to understand how far the awareness of Generation Z affects their purchase intention toward green skin care products. It also aims to know other key factors that affect the purchase intention of Generation Z and Generation Y. Furthermore, this paper also tested altruistic motivation and safety value affect attitude in the TPB model to test the purchase intention toward green skincare products. This paper hopes to help businesses that have Generation Z as their target market. Data gathered from 170 respondents in Kingston Upon Hull, United Kingdom, are examined against the research model using mixed methods that incorporate interviews and questionnaires. The result shows that altruistic motivation and safety value affect the attitude of the respondents towards their purchase intention of green skincare products. Moreover, subjective norms, perceived behaviour control, price consciousness, and environmental concern positively correlate with purchase intention towards green skincare products. However, product knowledge does not have a positive relationship with the purchase intention toward green skincare products due to many false advertisements conducted by companies claiming to be environmentally friendly products. The discoveries of this study present significant hypothetical and viable ramifications for customer green skincare products by ways of behaving.
Keywords: Green skincare products, Theory of Planned Behaviour, environmental concern, price consciousness, Generation Z
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1. Introduction
There is no doubt that the beauty and cosmetic industry, significantly the skincare industry, is continuously proliferating. Allied Market Research (2017) has revealed the global skincare market is growing up to $179 billion by 2022 with a CAGR of 4.7 per cent from 2016 to 2022.
The need of having a healthy look and desirable clean look is very in-demand for many people especially women of a young age.
In this globalised era, the skincare industry is now dominated by the newest generation known as Generation Z. They have received more education and accessible information about how important it is for people to start taking care of their environment (Mihelich, 2013).
On the other hand, Kim and Seock (2009) believed that environmental concerns affect consumers’ willingness to buy green cosmetics. They suggested that all Theory of Planned Behaviour (TPB) variables significantly impact the intention to purchase green cosmetic products. This statement applies to the purchase intention towards green skincare for Generation Z. Despite the consciousness of Generation Z towards the existence and the benefits of using green skincare products, the global market share of green skincare products can only reach 3.80% of the global market share of the whole skin care market (TMR, 2020).
There is still a massive gap in the purchasing action of green skincare despite the benefits of green skincare. Today most of the purchasers of green skincare products come from Generation Y when Generation Z is supposed to dominate the market (Guardian, 2013). Hereon, the question arises as to why the education received by Generation Z in regards to taking care of the environment does not align with the action taken.
2. Literature Review
2.1 Green Skincare Product
With the many activities that each individual has in this modern period, it is not easy to find a habit for a brand's customers to investigate the composition of an element. According to Luxe Botanicals (2021), it is becoming increasingly rare for customers to pay attention to product transparency, which is generally done on behalf of the brand's customers by the Environmental Working Group. Users of skincare brands continue to believe that "green cosmetics or skincare" is an environmentally beneficial product.
2.2 Theory of Planned Behaviour Variables Altruistic Motivation
The TPB has been used widely to predict purchase intentions towards products. Environmental issues can be seen as having altruistic value (Prakash et al., 2019). People emphasise preserving the environment without thinking about the benefit that they would get (Ebreo et al., 2003). A behaviour that positively impacts other people's lives without considering beneficial effects on themselves is called Altruism. Thus, the following hypothesis is offered:
H1: There is a positive relationship between altruistic motivation and Generation Z's attitude towards green skincare products.
Safety Values
Kim and Chung (2011) have noted that well-being and safety awareness affect attitudes towards natural beauty care products. In the choice interaction, this variable is the most thought of. Consumers conclude that green items are better for their body, are safer than customary beauty care products (Hall, 2008; Pearson & Henryks, 2008), and encourage a healthy lifestyle by including natural ingredients which are favourable for the skin (Kim & Chung, 2011; Rezai et al., 2012). Thus, the following hypothesis is offered:
H2: There is a positive relationship between safety values and Generation Z’s attitude towards green skincare products.
Attitude
Attitude can be defined as a belief that has either a positive or detrimental evaluation of a particular behaviour. (Ajzen, 1985) has noted that an individual can react a certain way when faced with a positive or negative situation depending on their beliefs. Thus, the following hypothesis is offered:
H3: There is a positive relationship between attitude and purchase intention of Generation Z towards green skincare products.
Subjective Norms
Subjective norms can be described as an executed behaviour under social pressure due to the social needs that aim to establish a desired social status. The research conducted by Kim and Chung (2011), Souiden and Diagne (2009), and Sukato and Elsey (2009) stated that skincare supports the positive association between subjective normative concepts and behavioural intention when purchasing skincare products. Thus, the following hypothesis is offered:
H4: There is a positive relationship between the subjective norms and purchase intention of Generation Z towards green skincare products.
Perceived Behaviour Control
When people become more aware of behavioural control, they tend to perform the desired behaviour. Azjen (1991) has noted that behaviour is controllable as it is the perception of perceived behavioural control. The control belief of resources and opportunities are identified with the potential perceived behavioural control, which can be framed as the control belief is weighted by the perception ability of the control factors. Thus, the following hypothesis is offered:
H5: There is a positive relationship between the perceived control behaviour and purchase intention of Generation Z towards green skincare products.
Price Consciousness
Price-conscious consumers may be reluctant to buy sustainable products given the premium cost, as sustainable products commonly have a greater cost than normal items (Bezawada &
Pauwels, 2013). A negative connection between purchase intention and price consciousness has been analysed in China that predicts green buyer behaviour (Sun & Wang, 2019). Hence, the following hypothesis is offered:
H6: There is a negative relationship between price consciousness and Generation Z's purchase intention towards green skincare products.
Product Knowledge
Product knowledge is a consumer's awareness of specific information concerning a given product (Brucks, 1985). Product knowledge consistently ranks among the most critical influences regarding consumer purchase behaviour (Burton et al., 2009), and product value and purchase risk determinations can be made based upon such knowledge. Therefore, the following hypothesis is offered:
H7: There is a positive relationship between product knowledge and Generation Z's purchase intention toward green skincare products.
Environmental Concern
Several researchers (Pervin et al., 2014; Tamashiro et al., 2014; Patel et al., 2015) have demonstrated that environmental concern affects the inclination for green beauty care products.
Consumers who believe that the utilisation of natural beauty care products would assist with
saving the climate and lessen the utilisation of synthetic compounds are bound to purchase green beauty items (Pervin et al., 2014). Thus, the following hypothesis is offered:
H7: There is a positive relationship between environmental concern and Generation Z's purchase intention toward green skincare products.
Purchase Intentions Towards Green Skincare Products
Purchase intention is the willingness of the customers to purchase goods or services to satisfy needs or fulfill wants, and it is impacted by different components or circumstances that the customer experiences (Mirabi et al., 2015). Yang (2017) found a strong correlation between purchase intention and willingness to buy green skincare products to save the environment (Chin et al., 2018).
Conceptual Framework
The literature review in this chapter generates a framework and variables after assessing the previous related studies (Chee et al., 2020; Anetta et al.,2020; Ghazali et al., 2017).
The following is the proposed conceptual framework for this study:
3. Methodology
3.1 Research Design
The design of this study was a sequential (exploratory) mixed methods design with qualitative assessments (interviews) of the difference between Generation Z and Generation Y purchase intention toward green skincare products in Kingston Upon Hull and a quantitative assessment of the frequency of key factors affecting their purchase intention.
3.2 Data Collection
The researcher would like to validate the answers from the interview by conducting a questionnaire aiming for a greater sample with several characteristics. The interviews were conducted in a semi-structured form; therefore, a predetermined question will be asked to guide the interview. Furthermore, structured questionnaires are used as the survey method (Malhotra, 2007) as was done in this research. The questionnaire is the most suitable approach as it results in quantitative data that can measure how well Generation Z understands green skincare products. It can explain the relationship between the existing variables in numerical format. A five-point Likert scale was used with the measure of 1 as total disagreement and 5 as total agreement. A questionnaire is created based on a theoretical framework. The questionnaire design can be found in the Appendix
3.3 Data Sampling
The researcher uses the purposive sampling technique called judgement sampling in the questionnaire in this research. Etikan et al. (2016) have noted that this is an intentional decision because of the respondent's characteristic. In this research, the researcher is using maximum variation sampling. In the case of the interview, the researcher will include five people aged 18-24 and 5 people aged 25-40 in Kingston Upon Hull. In the case of the survey, the researcher aims to have respondents located in Kingston Upon Hull who have been using green skincare products for at least the past year.
3.4 Data Processing and Analysis
To analyse the data, the researcher will use the method of open coding to understand the significant part of the interview. According to Boeiji (2002), open coding determines whether the interview result fits the code for each section. In this research, the researcher uses Nvivo to process and analyse the data used for coding. Nvivo is Computer Assisted Qualitative Data Analysis Software (CAQDAS) that allows the researcher to organise and get an overview of the interview result. For this research, researchers utilise descriptive statistics and PLS-SEM to examine the data obtained from questionnaires. Researchers will use SmartPLS software to analyse the data.
4. Data Analysis
4.1 Qualitative Approach Result
During the in-depth interview, the researcher gathers 10 respondents of different ages. 5 respondents are coming from Generation Z, who are all students and the other 5 respondents are Millennials, who consist of students and entrepreneurs. They have all been living in Kingston Upon Hull for the past year. However, not all of them have heard of or used green skincare products. The researcher first asked about the respondents’ brief understanding of green skincare products.
There are some of the respondents who are not truly aware of what green skincare products are:
“Hum. As far as I know, UM green skin care is all about everything that use is all organic, including their packaging” - Respondent 10, 26
However, there is also respondents who elaborate a well understanding of what green skincare products are:
“It's skin care which uses, you know, organic materials and there's not any preservatives or perfumes or things like that and also it is eco-friendly and sustainably produced” - Respondent 1, 23
Through these examples, the researcher could understand that most of the respondents know about what a green skincare product is. However, they are not fully aware of what makes a green skincare product considered a green product.
4.1.1 Probability of Buying Green Skincare Products
In order to analyse the respondent’s behaviour when buying skincare products, specifically green skincare products, the researcher asked about their probability of buying green skincare products. In this stage, the probability is divided into two sections, the advantages, and disadvantages.
According to the interview result, the safety value that can be offered by green skincare products becomes the highest probability of the respondents to buy green skincare products.
“ … so I feel like with this, uh, naturally it will be more healthy and more nourishing and more natural towards my face, which is way more safe, safer compared to the chemical ones.” - Respondent 2, 28
Furthermore, the environmentally friendlier aspect is second to the biggest aspect that affects the probability of respondents buying the product.
Price option is another vital point that differentiate Generation Z and Generation Y purchase intention.
“Price, I think not too pricey, is very good for our pocket, especially people who are coming from my generation.” - Respondent 3, 26
“Yes, but the price is important, especially generation z are more students and maybe are not working and can’t afford it. The cost is really determined if you take that extra step of your skins.” -Respondent 8, 21
On the other hand, false product knowledge and long results have been other points that contributed to the advantages of green skincare products.
“So my only problem with green skin care is maybe false product knowledge and I also you know if if OK , fair enough. The product is organic, but the packaging isn't.’ - Respondent 1, 23
“like the results, not instant, it takes more time to have the best result” - Respondent 3, 26
4.1.2 Key Factors Affecting Purchase Intention Towards Green Skincare Products In this section of the interview, the researcher aims to know the second research question: the key factors that affect the respondent’s purchase intention toward green skincare products. The researcher found another variable that has a significant effect. The price range has been a prevalent factor mentioned in the interview. It was mentioned twelve times.
“So definitely the price does affect it a lot. I also think that it's a bit of a scam to charge so much for green” - Respondent 1, 23
Safety value is another factor that the researcher found during the interview process, which affects the attitude of the respondents toward buying green skincare products. Furthermore, environmentally friendly and product knowledge is the independent factors that affect the purchase decision of the respondents toward green skincare products. Therefore, price consciousness, product knowledge, and environmental concern have been added as a variable to the conceptual framework.
“... like the packaging as well as also, again, sustainable and trying to not harm the environment, which is quite important…” -Respondent 5, 19 “Sometimes we have the on the packaging, so I'm seeing that in view.
Everything is good on the paper, but when I scan it, I see that it's not good enough.” - Respondent 4, 21
4.2 Quantitative Approach Result
4.3 Partial Least Square (PLS-SEM) Analysis Result
Partial Least Square (PLS-SEM) Analysis is used to calculate the modelling in the theoretical framework. The figure shows the calculation to decide the impact of every variable in this research. Each indicator has a different value, indicating a different effect on the variable. The price consciousness indicator has the highest impact on the variable in which it affects the purchase intention.
4.3.1 Indicator Reliability Test
Table 5.0 shows the reliability test of the respondents’ answers. The researcher uses SmartPLS to test the outer loading of each variable. The value of the outer loading is then compared to the given value from the SmartPLS system, which is above 0.7. However, according to Wong
(2013), a value above 0.4 is still acceptable for exploratory research. Based on this given value, all of the indicators are reliable to be pursued to the next stage of analysis.
4.3.2 Internal Consistency Reliability
Cronbach’s Alpha and Composite Reliability are indicators in SmartPLS to test whether the data is reliable. According to Wong (2013), to be considered reliable, the composite reliability must have a value over 0.7. In this case, all variables have more than a 0.7 Composite Reliability value. Furthermore, the value of Cronbach’s Alpha must be over 0.6, which in this case, all of the variables exceed 0.6. Therefore, the data is reliable and can be proceeded into the following analysis.
4.3.3 Construct Validity Test
After testing the reliability of the data, the validity of the data needs to be examined. This is a crucial step to ensure the data meets the requirements and, therefore, the result can be trusted.
There are two ways to determine the validity: Convergent Validity and Discriminant Validity.
4.3.3.1 Convergent Validity
During the Convergent Validity test, the result of the Average Variance Extracted (AVE) must be over 0.5 according to Wong (2013). Therefore, all of the variables based on the table 4.11 are all exceeding 0.5 and therefore all the variables are valid.
4.3.3.2 Discriminant Validity
The following stage is to do the discriminant validity test in deciding the validity of every variable. To breeze through this assessment, the square root of AVE ought to be higher than the relationship between the latent variables. (Wong, 2013) In table 4.12, the square roots of AVE are written with green and bold colours. Based on the table, all of the square roots of AVE are larger than the corresponding latent variable and therefore, the data passed the discriminant validity test.
4.3.4 Colineary Test
To avoid the collinearity issues, the collinearity test is led and should be visible from the consequence of Variance Inflation Factor (VIF) (Wong, 2013). The favoured worth of VIF is 5 or less. According to table 4.13 all of the VIF values are less than 5 and therefore there are no multicollinearity issues among the variables.
4.3.5 Structural Path Significance
Figure 1: Bootstrapping Result
The bootstrapping result is used to determine whether the hypothesis is accepted or rejected and whether it is significant or not. Various calculations, including the Determination Coefficient (R2) and Cross-Validated Redundancy (Q2), are utilised to quantify model exactness.
4.3.6 Hypothesis Testing
Table 4: Hypothesis Testing Result
Hypothesis Structural Path Original
Value T-Value P-Value Result
H1 Altruistic Motivation → Attitude
0.361 4.969 0.000 Accepted
H2 Safety Value → 0.400 6.033 0.000 Accepted
Attitude H3 Attitude → Purchase
Intention
0.318 4.314 0.000 Accepted
H4 Subjective Norms → Purchase Intention
0.176 2.361 0.021 Accepted
H5 Perceived Behaviour Control → Purchase
Intention
0.171 2.719 0.007 Accepted
H6 Price Consciousness → Purchase Intention
0.017 0.198 0.843 Accepted
H7 Product Knowledge → Purchase Intention
0.100 1.135 0.257 Rejected
H8 Environmental Concern
→ Purchase Intention
0.291 4.063 0.000 Accepted
Based on table 4.14, it can be seen that all of the hypotheses except hypothesis 7 (H7) are accepted. This can be seen by the number of all hypotheses values above 1.96. Except for H6 (an explanation of the H6 has been discussed in the Structural Path Significance section).
Hypothesis 7 is not accepted because respondents often feel they have not been educated enough about the benefits, drawbacks, and the usage of green skincare products. They briefly know about what a green skin care product is. However, they do not know thoroughly about the products. This can also be supported by the interview answers that around Kingston Upon Hull, there are not many green skincare products that take action to advertise the product in a vast campaign.
4.3.8 Total Indirect and Total Effect Total Indirect Effect Result
The aim of this test is to see the estimated worth in percentage of the independent variables’
indirect effect on dependent variables through the mediating variable. In this case the result are:
a. Altruistic motivation affects purchase intention by 11.5%
b. Safety value affects purchase intention by 12.7%
From the result, it can be concluded that safety has a larger effect on purchase intention because of the health concern of the respondents’ toward their skin.
Total Effect Result
Furthermore, the aim of the total effect result test is to calculate the level of impact that independent and mediating variables have on dependent variables. The results are as follows:
a) Altruistic motivation affects attitude by 36.1%
b) Safety value affects attitude by 40.0%
c) Altruistic motivation affects purchase intention by 11.5%
d) Safety value affects purchase intention by 12.7%
e) Attitude affects purchase intention by 31.8%
f) Subjective norms affects purchase intention by 17.6%
g) Perceived behaviour control affects purchase intention by 13.1%
h) Price consciousness affects purchase intention by 1.70%
i) Product knowledge affects purchase intention by 1.0%
j) Environmental concern affects purchase intention by 29.1%
5. Conclusion
Based on the interview and questionnaire that has been conducted by the researcher about the topic of Understanding Generation Z's Purchase Intention Towards Green Skincare Products In Kingston Upon Hull, the researcher can conclude that the awareness of Generation Z towards green skincare products in Kingston Upon Hull has spread moderately as more than half of the total respondents (51.9%) of the questionnaire respondents. 50% of the total interviewees have confirmed they are well aware of green skincare products. This is mainly due to the accessible information they could get from the internet about the benefits of green skincare for their skin and the environment. Therefore, based on the data analysis, the environmental concern affects the awareness of Generation Z toward green skincare products. However, it is found by the researcher that product knowledge of the green skincare products, which is considered to be an awareness of Generation Z towards green skincare products itself, does not affect their purchase intention. The fact can explain during the interview that Generation Z often found false product knowledge and false advertisement of the green skincare products in which they claim to be all organic and sustainable when they are not.
The highest key factor is the attitude when buying green skincare products. Attitude has also been influenced by the altruistic motivation and safety value of green skincare products. This can be explained because Generation Z has been exposed to the selflessness they should have to protect the environment (altruistic motivation). The knowledge of natural ingredients would be less harmful to their skin (safety value). The main fundamental difference between Generation Z and Generation Y's purchase intention lies in the price consciousness. Generation Z do not have the monetary resources to buy green skincare products as they are still considered luxury products.
When the key factors of Generation Z's buying green skincare products have been fulfilled, they have a very high probability of buying the products. They are aware of the benefits they would get from using green skincare products for themselves and the environment. However, the false advertisement and price range offer might refrain them from buying green skincare products.
Based on the result of this research, green skincare businesses should provide detailed product knowledge, advertisement, and education about the green skincare they are selling as this will.
Reduce the price of green skincare as most Generation Z has a huge concern regarding the price range. Businesses might also want to tap into the trend as Generation Z is a huge social media user, and reviews and influencers heavily influence them.
Further research might want to include a larger population sample as the characteristics of this research respondents are primarily young females aged 18-14 who are still students, specifically in Kingston Upon Hull. Subsequently, the result of this study is best giving customers similar attributes. Considering the discoveries and constraints of this research, it is recommended to incorporate more factors to building the exploratory capacity.
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