Editorial Board

A Refereed Monthly International Journal of Management

Consumer Behaviour towards Green Restaurants: Empirical Analysis using Theory of Planned Behaviour

Akshita Gupta

FPM Scholar,

Jaipuria Institute of Management, Jaipur

akshita.gupta.fpm19j@jaipuria.ac.in

Shubha Johri

Faculty,

Jaipuria Institute of Management, Jaipur

Shubha.johari@jaipuria.ac.in

Abstract

As a significant source of greenhouse gas emissions, restaurants confront environmental and economic issues. Customers and associated concerns look for restaurants to be socially responsible. Therefore, making solid environmental decisions is crucial to their success. More restaurant operators see the need for eco-friendly operations and are trying to satisfy it. "Green" restaurants have risen as more businesses decrease their carbon footprint. Consumer behaviour in this area needs additional research. Despite the abundance of sustainability studies in the restaurant business, there are few on green attitudes. To the authors, no empirical research has been undertaken in Rajasthan, India's unique cultural state.This researcher employed an updated theoretical framework (TPB)to explain guests' intents to eat at green services provided restaurants (TPB). The work objectives of the studywas to examine how consumer views regarding green restaurants are influenced by subjective standards, perceived behaviour control, and normative beliefs. The impact of consumer attitude toward green restaurants on WTP(Willingness to pay) additional charges and the behavioural intention was also studied. With this the inclusion of, the influence of WTP additional charges on behavioural intention was studied too. Lastly, whether willingness to pay additional charges mediates the connection between green attitude and BI was also studied. The research shows all the hypotheses are supported. For stakeholders, the findings have significant theoretical and practical effects.

Keywords: subjective norms, perceived behaviour control, normative beliefs, consumer attitude towards green restaurants, willingness to pay additional charges, behavioural intentions.

Introduction

The worldwide community has recently made solving environmental challenges including change in weather and climates, greenhouse gas releases, and environmental sustainability a high priority (Moon, S.-J. (2021). Green consumerism is rising as more people become conscious of their responsibilities to save and to protect our own environment (Chaudhary&Bisai, 2018; Shishan et al., 2021). Several businesses are switching to green practices in the light of demand from governments and citizens (Schubert et al., 2010). Companies face the difficulty of incorporating environmental concerns into their planning of strategy &operational decision-making activity. Further eateryfood places are implementing eco - friendly actions such as limiting the use of biodegradable and compositing dinnerware, decreasing food waste, and producing locally procured organic naturally grown  menus (Moon, S.-J. (2021).Thus, with the company’s individuals are also making environmentally friendly choices, such as purchasing and using eco-friendly items(Leonidou et al., 2013).Companies in various industries are developing environmentally friendly products and procedures. However, it is suggested that the fundamental motivation for such activity remains economically oriented (Choi &Parsa, 2007). These innovations are driven by socially responsible goals overtly. As a result, some corporations are trying to establish themselves in a new market for environmentally-conscious consumers by adopting "green" strategies (Schubert et al., 2010).

In contemporarytimes, restaurants also face various environmental challenges and sustainable economic performance as the hospitality specifically restaurant industry is a major source of greenhouse gas releases which is polluting our natural air. (Lee et al., 2019; Scheider et al., 2012).Restaurants contribute to Greenhouse gases through Carbon dioxide emission from construction and transportation, Hydrogen emissions from sewage disposal, methane and Nitrous oxide emissions from agricultural output, and Hydrofluorocarbons emissions from refrigeration equipment.(Özgen, I., Binboğa, G., &Güneş, S. T. 2021) Hence, restaurant patrons and even stakeholders demand restaurants are socially responsible and making sound environmental decisions has become necessary to their businesses' success (Schubert et al., 2010).Many of the restaurant owners are recognising the need for environmentally friendly operational methods and are making various attempts to meet that demand (Myung et al., 2012). Many restaurants have begun implementing functional techniques to reduce their carbon traces directing to the rise of "green" eateries. Restaurants that are "green" strive to have as less repercussions on the environment as feasible throughout their operations (Shishan et al., 2021).

Several research works have been undertaken to investigate the various elements influencing green serving restaurant adoption (Kwok et al. 2016).Studies investigated key green restaurant characteristics that affect CAand Behavioural intentions. (Teng and Wu (2019) investigated the impact of personal values on consumers' attitudes and inclinations to attend green serving restaurants. Several studies have been conducted to examine consumer perceptions and attitudes concerning green service restaurants. Many research have been done using Ajzen's (1991) TPB to investigate the impact and influence of attitude, subjective norm, and perceived behavioural control upon green restaurant consumption (TPB). Despite the fact that these studies have made major contributions to the field, there has still been no research on customers' specific belief structures motivating green restaurant adoption. Besides the direct relationship this study also investigates the influence of consumer attitude on behavioural intentions through mediating effect of willingness to pay extra which is considered as the maximum price consumer may be willing to pay for green products.

Despite the proliferation of sustainability studies in the restaurant industry, there is still lack of studies on the perceptions of the restaurant on green practices. There has been no empirical study to the authors' knowledge, particularly conducted in Rajasthan, which has a unique culture in India. According to this study, diners' intentions to eat at green restaurants can be explained using an enhanced version of the theory of planned behaviour (TPB) using a sample of Indian consumers in Rajasthan.

Objectives

1. To study the influence of subjective norms, perceived behaviour control and normative beliefs on consumer attitudes towards green restaurants.
2. To study the influence and effect of consumer attitude towards green restaurants on willingness to pay additional charges and behavioural intention.
3. To study the influence of WTP additional charges on behavioural intention.
4. To study whether WTP additional charges mediates the connection between green attitude and intentions.

Theoretical framework and hypothesis formation

Consumer Behaviour

Marketers have long been fascinated by consumer behaviour. Early economists, spearheaded 300 years ago, began to investigate the basis of consumer decision making.  Consumer purchase behaviour tends to establish what exactly motivates people to make purchasing decisions. Many researches, including the one stated above, have been conducted on consumer behaviourism.

Knowledge of consumer behaviour helps marketers understand how consumers think, feel, and pick between options such as products, brands, and so on, as well as how consumersare impacted by their surroundings, group influences, family, and sellers, among other things. When trying to understand the complex behaviour of consumers, marketers must take into account a number of variables, most of which are uncontrollable as well as outside their control. The study of "the different processes when people or groups decide to purchase, utilise, or dispose of items, services, ideas, or experiences to satisfy needs and desires" is known as consumer psychology.

Theory of Planned Behaviour

Ajzen, in 1985 found that attitude (AT) and subjective norm (SN) were found to impact an individual's action intention. AT denotes the person's attitude toward the behaviour in this instance. It's a response based on constantly evaluating one's feelings about a specific action. According to researchers, AT can be used to predict future behaviour. A study by Jang et al. (2015) indicated that AT has a favourable effect on consumers' intentions to patronise ecologically friendly restaurants when they extended their study of TPB to look at the antecedents of those customers' behavioural intentions. Kim et al. (2013) used TPB to investigate why customers choose eco-friendly restaurants, and they found that AT influenced their decision to dine at an eco-friendly establishment. Subjective norm (SN) is the second component of TPB, and it describes the level of perceived social stress that an individual has or hasn't taken into account to conduct an action. For example, various reference groups (such as family members, friends and teachers) could influence a person's conduct. An individual's social norms (SN) may be based on normative views or on social norms that are recognised by an individual's most important social reference groups (Lia & Fang, 2019). In an environmentally friendly restaurant, Jang et al. (2010) observed that SN benefits behavioural intention. Perceived behavioural control (PBC) is the third construct of TPB, which refers to an individual's perceived capacity to control the resources and opportunities necessary for a given activity (Lia & Fang, 2019).

Attitude towards green restaurants

In surveys conducted in Europe and North America, customers were shown to be more likely to use ecologically friendly restaurants and to be more willing to pay a premium for those hotels' services. It has been found that cultural and societal variations influence a consumer's willingness to pay for green products (Choi et al., 2009). Further research indicated that guests in luxury and mid-range hotels are more prepared to pay premiums for hotels' green policies than those in economy hotels when demographic gaps between luxury and mid-range hotels are more significant (Lita et al., 2013).

Behavioural intentions

Customer expectations of their stay at green restaurants positively impacted their behavioural intentions, as demonstrated by Lee et al. (2011) analysis of the attitude-to-behaviour relationship. This showed that customers' expectations directly impacted behavioural intentions and were a primary reason for choosing a green hotel over a non-conventional hotel. Additional research revealed that eco-friendly practices, organic food, and environmental preservation were all positively linked to visit intention, while healthy guestrooms, lower expenses, and organic food were all positively linked to word-of-mouth intention (Lita et al., 2014).

Willing to pay Extra

Social identity theory (Tajfel& Turner, 1986) can help explain why customers' environmental concerns correlate positively with their willingness to pay for a company's green initiatives. According to Bhattacharya and Sen (2004), people tend to identify themselves with organisations that are enduring, distinctive, and capable of boosting their self-esteem. A company's green initiatives reveal its character and distinguish it from competitors, raising customer self-esteem (Sen & Bhattacharya, 2001). As a result, customers more concerned about environmental issues are more likely to identify with a company that actively promotes green initiatives (Bhattacharya &Sen, 2004). Customers are more likely to pay a premium for green initiatives when there is a high degree of congruence between their environmental concerns and those of the company (Brown &Dacin, 1997).

Mediating Effect

Hayes Process:  It is an OLS and logistic regression path analysis modeling plug-in for SPSS used for social researches etc. for calculating direct and indirect effects (parallel and serial), as well as two- and three-way interactions in moderation models and moderated mediation models (Andrew F. Hayes. 2009) 

The Total, Direct, and Indirect effects are significant along with normal theory (Sobal Test) and the Ratio of Indirect to total effect is substantial.

Literature support for model

The TPB proposes that human behavior is caused by behavioral intention, which consists of three factors: attitude towards the behavior (ATT), subjective norm (SN), and perceived behavioral control (PBC) (Ajzen, 1991). A person's attitude towards a behavior is influenced by how favorably or unfavorably they perceive the outcomes of that behavior. Subjective norm refers to the social pressure an individual feels to either engage in or abstain from a specific behavior. Perceived behavioral control reflects a person's belief in their ability to perform a behavior. The expectancy-value model (Ajzen, 1991) can be used to indirectly estimate the behavioral intentions, normative belief, and control belief that underlie these three factors that determine intention.

Based upon our concept and hypothesis we have proposed this Model.

Figure 1. Proposed extended TPB model

From the above model we can form these hypothesis-

H₁: “Subjective norms relate emphatically to attitude towards green restaurant.”

H₂: "Normative Belief relates emphatically to disposition towards the green restaurant.”

H₃: “Perceived Behavioural control relates to attitude to purchase green Product.”

H₄: “Attitude to purchase green products identifies with Intentions for green restaurants.”

H₅: “Willingness to pay Extra relates to Behavioural Intentions."

H₆: “Customer Attitude relates to Willingness to pay extra.”

H_{7: “}Willingness to pay extra charges mediates the relation between customer Attitude and behavioral intentions_.”

Methodology

The causal research design was used in this study (cause and effect, amongst other factors). A survey used an English-language questionnaire to obtain responses from participants. A convenience sampling was used to Customers visiting restaurants, specifically green restaurants in Rajasthan, were asked to give their permission and consent before completing the questionnaire. More than 437 responses were received, but only 429 of them were completed, or 85.8% of the actual response rate, which was examined.

Measures

All the measures (subjective norms, perceived behaviour control, normative beliefs, consumer attitude, willingness to pay additional charges and behavioural intentions)were measured on a Likert scale.The research scales were developed from previous, very reliable research. The responses were noted on a Likert scale of 1 to 5, with 1=strongly Disagree and 5= strongly agree. The questionnaire include demographic detail of each respondent which are as followed in Table 1. With this scales are also measured. In our questionnaire we have6 scales in which 37 questions have been asked.

Demographic Details

Table 1: Demographic characteristics

Factor Analysis

To determine the association between each item and its corresponding concept, an exploratory factor analysis was conducted using SPSS 23.0. The scales used in the analysis were adopted from prior research in the field of green marketing in the restaurant industry. The results showed that the "KMO" value was 0.828 and the "Bartlett's Test of Sphericity" value was 15771.78 (d.f = 666 at p =.000), both exceeding the sample adequacy criteria. The item loadings that exceeded the 0.50 threshold are presented in Table 2.

Table2: Exploratory factor analysis results

Source: The authors.

Data analysis

Measurement Model

A measurement model is a statistical model that represents the relationships between latent variables and their observed indicators.After exploratory factor analysis, confirmatory factor analysis was done to assess whether or not items loaded on their separate components. Figure 1 depicts the measurement model derived from CFA using AMOS 23.0. The following model indices suggest a good match:

CMIN/DF = 3.001,GFI=.88, NFI=.78, CFI = 0.81 and RMSEA = 0.07.

Figure 2 Measurement Model

Source: The authors.

 Reliability and validity

All factor loadings (CFA) are more significant than 0.7. The AVE for each component is more than 0.50 (Table 2). This shows that the instrument has convergent validity (Fornell&Larcker, 1981). Discriminant validity is also established, as seen in Table 2 (Anderson &Gerbing, 1988). Composite reliability (CR) is greater than 0.60 for each of the factors (Fornell&Larcker, 1981).

Table 2Convergent and Discriminant Validity

Note: SN-Subjective Norms; BI-Behavioural Intentions; NB-Normality Beliefs; PBI-Perceived Behavioural Intentions; CA-Customer Attitude; WTPE-Willingnessto Pay Extra

Structural Model Analysis

Structural model analysis (Figure 2) was used to evaluate the hypothesis, which shows how the research variables are interconnected (Table 3). The SEM (structural equation modelling) in AMOS 25.0 yielded appropriate results for the model fit indices.

Figure 3 Structural model

Table 3: Regression Weights

Results of Hypothesis Testing

Discussion

The main objective of this study was to explore the cognitive processes underlying consumer beliefs about green restaurant consumption. The researchers used Ajzen's (1991) Theory of Planned Behavior as a theoretical framework and added two new predictors (previous behavior and dining frequency) and two moderators (gender and age). The model was tested using AMOS 23.0 software. The results showed significant relationships between all variables. The study also found notable differences from the original TPB model, indicating that the TPB is applicable in the context of green restaurants.

This study aimed to find out what factors influence people's decisions to prefer green restaurants. SEM was used to investigate the interrelationships between attitudes, subjective norms, perceived behavioural control, willingness to pay extra, normative beliefs and Behaviour Intentions. The results show that Subjective norms relate emphatically to attitudes toward green restaurants. This case also indicates that Normative Belief (EC) relates to the disposition toward green restaurants. In addition, Perceived Behavioural control relates to the attitude to purchase green goods. These results are in congruence with some earlier findings (Ajzen, 2015).This means all three components shape consumer attitudes towards green restaurants. This case also indicates that attitude to purchase green products identifies with behavioural Intentions for green restaurants. This reinforces the theory that attitude formation is a must before intentions. These results are in congruence with some earlier findings (Kucher et al., 2019). Moreover, this case indicates that willingness to pay Extraand Customer Attituderelates to Behavioural Intentions. Furthermore, partial mediation effects of willingness to pay extra as a mediator between customer attitude and Behaviour Intentions also exist as per the findings. This is an important contribution to literature as it means that some of the effects between customer attitude and Behaviour Intentions are direct as well as indirect through willingness to pay extra.

Managerial Implications

The results of this study have important implications for marketing green restaurants. In order to attract customers to these establishments, it is important for marketers to focus on the three determinants of the TPB model and have a clear understanding of the principles behind them. Perceived behavioral control was found to be the most relevant determinant of intention, with all three control beliefs playing a role. Despite increased interest in green restaurants, many of these businesses only engage in a limited number of environmentally-friendly activities and do not adequately communicate this to customers. To be effective, green restaurant marketers should actively practice sustainable operations and share information with customers, recognizing that "going green" can be a legitimate marketing strategy.

Top of Form

This work found that using an enhanced TPB model can accurately anticipate India consumers' intentions to purchase food in green restaurants. Using an extended model to analyse consumers’ green food buying intentions, this study found that if three TPB constructs are positive, customers will be more likely to purchase green foods. Therefore, we conclude that the TPB can be used in developing countries to predict green food purchasing intentions.

This study's findings are extremely important for the marketing managers of green restaurants in India. From this research, we will better understand people's desire to purchase food in green restaurants in India. Because perceived behavioural control has been shown to be an excellent indicator of attitude, marketers should concentrate on improving the perceptions of every variable that predicted identified in the model..All three components of TPB needed to be used by managers to influence consumer attitudes. Consumers' views regarding green products should therefore be influenced and changed through better marketing efforts demonstrating green items' utility.

Additionally, increasing consumer views of how simple it is to obtain food in green restaurants might aid marketers in expanding their green product markets. Marketers might consider expanding and upgrading the green options available to consumers in this direction by increasing accessibility of green restaurants through increased R&D. If environmental awareness campaigns and commercials raise environmental awareness and concern, then green consumption may be encouraged among consumers. As green consumption becomes more widely recognised, people's attitudes, intentions, and actions toward green restaurants may be influenced. As part of their corporate social responsibility, organisations can participate in the activities mentioned earlier, which can help them gain an enhanced reputation and higher revenue from the sale of green restaurants. A "green" strategy must be integrated into the corporate plan to accomplish the desired goals, which will also improve the environmental competitiveness of companies., Marketers must also consider people who visits in restaurants are willingly to pay extra amount as a further factor when attempting to convert product information into product information (PI). The sampled consumers' purchasing power limited what they could buy, but the perceived benefits of green products should be reinforced so that people are more prepared to pay extra.

To sum up, the study's findings will assist policymakers in devising strategies for promoting the use of green restaurants. This, in turn, will help the country attain environmental sustainability. This research will assist in reducing environmental effects by expanding our understanding of the characteristics that predict environmentally friendly attitudes and actions among customers in a continuous growing country like India, one of the highest polluted countries on the earth.

Limitations and Future work

There must be various possible constraints to this study.The restaurant business in Rajasthan has a low entry barrier. Several business owners operate in the sector, from tiny streetshops to big restaurant chains and theme restaurants. Restaurant owners' ability to invest in green facilities is also constrained by the quantity of funding from operators. The price ofRestaurant owners must invest heavily in the equipment for green restaurants, and procurementssustainable food at reasonable rates and from reliable sources might be difficult. The research was dependent on buying intentions for green purchase of food and services in restaurant industry. The three variable of TPB were only studied, other variables could also be the part of this study but model shall have got more complexed. Due to the inclusion of data from an emerging market, the conclusions should be considered preliminary. Additional research collecting data from various countries is needed to provide a complete picture. Comparing countries is also advantageous because it reveals the distinctive features of diverse markets,Future study could focus on other locations. In later time, researchers may increase the number of participants to grow the study's generalizability. Research on mediators and moderators may become a part of this approach in the future. Other demographic groupings could be studied in the future. Longitudinal studies could be undertaken in the future to improve on the current findings.

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