sustainability

Article
Willingness to Pay for Environmentally Friendly
Products among Low-Income Households along
Coastal Peninsular Malaysia
Abdullah Al Mamun 1, * ID , Syed Ali Fazal 2 ID
, Ghazali Bin Ahmad 3 , Mohd Rafi Bin Yaacob 2 and
Mohd. Rosli Mohamad 2
1 Global Entrepreneurship Research and Innovation Centre (GERIC), Universiti Malaysia Kelantan,
16100 Kota Bharu, Kelantan, Malaysia
2 Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan,
Malaysia; [email protected] (S.A.F.); [email protected] (M.R.B.Y.); [email protected] (M.R.M.)
3 Faculty of Hospitality, Tourism and Wellness, Universiti Malaysia Kelantan, 16100 Kota Bharu, Kelantan,
Malaysia; [email protected]
* Correspondence: [email protected] or [email protected]; Tel.: +60-13-3003630




Received: 5 April 2018; Accepted: 23 April 2018; Published: 24 April 2018


Abstract: In an attempt to promote the mass consumption of environmentally friendly products

in Malaysia, this study presents an investigation of the effects of several selected factors upon
willingness to pay and purchase behavior of environmental-friendly products. This study employed
a cross-sectional design, in which quantitative data were gathered from a total of 380 low-income
household heads from 38 coastal districts in Peninsular Malaysia. The outcomes of this study revealed
the positively significant effects of eco-literacy and environmental concern upon attitudes towards
environmental-friendly products; normative beliefs and perceived behavioral control on willingness
to pay for environmental-friendly products; as well as willingness to pay for environmental-friendly
products and perceived behavioral control on payment behavior for environmental-friendly products,
among low-income households in coastal Peninsular Malaysia. Programs and policies should
therefore focus on promoting environmental awareness and knowledge concerning the relative
advantages that are expected to improve willingness among consumers to pay for environmentally
friendly products.

Keywords: willingness to pay; environmental-friendly products; theory of planned behavior

1. Introduction
Several significant factors, such as climate change, waste generation, air pollution, and natural
disasters, have substantially changed the world environment, hence impacting all living organisms,
along with the social and economic status of people [1]. The rapid growth of global economies is to be
blamed for the escalating trend of consumerism worldwide, which, in turn, has caused over utilization
of natural resources, thus leading towards severe environmental degradation [1,2]. Within the context
of Malaysia, the rapidly rising population, coupled with accelerated industrialization and urbanization,
has led to some major environmental issues, such as increment in solid waste and greenhouse
gas emissions as byproducts [3,4]. Concerns pertaining to the deteriorating natural environment
have compelled both organizations and consumers to minimize damages inflicted towards the
environment [5]. Out of such motivation of altruism, consumers have begun to progressively pay more
attention towards environmentally friendly products as a key effort to preserve the environment [6].
Environmentally friendly or green products are ecological products that do not pollute the
environment and have less negative impact over the environment than their traditional alternatives [2].

Sustainability 2018, 10, 1316; doi:10.3390/su10051316 www.mdpi.com/journal/sustainability

Sustainability 2018, 10, 1316 2 of 19

Besides, Mishra and Sharma [7] asserted that ‘green products’, as authentically grown, reusable,
and recyclable consumables containing natural and recycled ingredients protect and revive the natural
environment by conserving energy resources and minimizing pollution, waste, and toxic agents.
Chen and Chai [8] contended that green products contain more environmentally sound content and
packaging, thus reducing their environmental impact. Qader and Zainuddin [9] claimed that unlike
conventional goods, green products do not deplore natural resources and can be recycled. In terms of
market demand, Maichum et al. [1] stated that green products that produced the following sustainable
development principles are among the most widely used products globally due to the environmental
benefits embedded in them, such as safety for purchasers (health) and superior quality. Particularly
within the local context, Mei et al. [2] noted that an escalated demand for environmentally friendly
products exists within the Malaysian market, hence portraying the subsistence of green consumers
within the country who are willing to support green consumerism.
Lanzini, Testa, and Iraldo [10] stressed that willingness among consumers to pay for green
products is one of the key driving factors for companies to implement the aspect of eco-friendliness in
their products and services. On this, Ha and Janda [11], in elaborating the reasons of limited success of
green products in the mass market, noted that discrepancies between consumers’ perceptions about
environmental issues, their willingness to pay, and their actual purchase behavior are responsible
for the inconsistent trend of purchasing green products, hence highlighting the importance of
understanding perceptions among consumers towards environmental issues and their willingness to
pay for consuming green products. Within the local context, the issue highlighted by Ha and Janda [11]
can be translated as a lack of attention towards low-income communities, which apparently represent
the mass market in Malaysia. Al-Mamun et al. [12] noted that economic activity amidst the low-income
sector plays a significant role in Malaysia, primarily because around 1.3 million individuals (9.7% of
the total workforce) are actively engaged in micro-economic operations and informal businesses.
As portrayed in the existing literature, consumers may avoid environmental-friendly products, perhaps
due to their socio-economic characteristics [13] or communal issues [14]. This indicates that it is highly
significant and timely to identify consumers’ perceptions and intentions towards the adoption of
environmental-friendly products, especially from the stance of low-income households in these rapidly
emerging economies, such as that experienced in Malaysia.
The growing significance of green consumption and the increasing purchase of less polluting
products that reflect environmentally friendly behavior have turned the topic into a popular research
issue among scholars [6]. However, Mei et al. [2] specifically highlighted that in comparison to
Western counterparts, studies pertaining to green purchasing are relatively scant among Asian
countries. In a similar vein, Maichum et al. [1] echoed that information regarding purchase intentions
for environmentally friendly products among consumers in developing nations is still inadequate.
Additionally, findings from prior, related studies appear to be in disagreement, therefore indicating
the pressing need for deeper research penetration into the subject matter. This study, in order to
bridge a gap in the body of knowledge, investigated the influential factors of willingness to pay and
payment behavior for green products among low-income households residing at Coastal Peninsular
Malaysia under the premise of an extended Theory of Planned Behavior framework [15], which
appears to be a prominent choice in explaining the pro-environmental behavior amongst the existing
literature [6,16–27].

2. Literature Review

2.1. Theory of Planned Behavior (TPB)

The Theory of Planned Behavior (TPB) has been reckoned to be one of the most influential and
fundamental theories that explain behavioral intentions, and it has been extensively employed in past
research to look into environmentally friendly consumption behavior [6,16]. The TPB hypothesizes
that one’s behavior could be determined by behavioral intentions that can be predicted by certain
Sustainability 2018, 10, 1316 3 of 19

socio–cognitive factors, such as attitudes, subjective norms, and perceived behavior control [15]. In fact,
Ajzen [15] asserted that favorable or unfavorable attitudes towards a particular behavior are caused by
one’s behavioral beliefs; subjective norms result from normative beliefs and personal moral norms,
while perceived behavioral control originates from control related beliefs. Collectively, attitudes
towards behavior, subjective norms, and perceived behavioral control influence the formation of a
behavioral intention, which determines the actual behavior [15].
Although the TPB reflects robust explanatory power in behavioral decisions, its integrity is yet
questioned [28]. Based on the review of relevant literature, the exploration of additional constructs
that may enhance the predictive power of the TPB has revealed that vast studies did deploy the TPB to
investigate the factors of purchase intention for environmental-friendly products and services, such as
customers’ intentions to visit green hotel [17–19,22], to engage and willingness to pay premium prices
for ecotourism [21], to purchase organic personal care products [20], to be willing to purchase organic
foods [23–25], to be willing to pay for green electricity [26], and to select eco-friendly restaurants [27].
In particular, Chen and Tung [17] extended the TPB model by integrating the aspects of
environmental concern and perceived moral obligation to predict consumers’ intentions to visit
green hotels. The outcomes of the study revealed that consumers’ environmental concern did exert a
positive influence on their attitudes towards green hotels, subjective norms, and perceived behavioral
control (i.e., the antecedents of the TPB model), as well as their perceived moral obligation, which,
in turn, influenced their intention to visit green hotels. Meanwhile, Kim and Chung [20] contributed
towards the TPB by amalgamating health consciousness, environmental consciousness, and appearance
consciousness into the original model as additional antecedents of consumers’ attitudes towards buying
organic skin/hair care products. In a similar attempt, Tarkiainen and Sundqvist [24] improvised the
TPB to better fit their data by integrating health consciousness and subjective norms as predictors of
attitudes towards buying organic food. Nevertheless, these studies appeared to have disregarded
the impacts of other domain-specific and significant environment-related constructs, for instance,
eco-literacy [28] or environmental concern [17], especially within a single extended TPB framework.
Environmental concern has been acknowledged as a significant determinant of environmental
behavior that is predicted by the attitude displayed by consumers towards a specific behavior [1].
On the other hand, eco-literacy, due to consumers’ lack of environmental knowledge, could cause
an attitude-behavioral gap, resulting in inadequate intention towards purchasing green products [1].
Furthermore, in terms of subjective norms, as a combination of normative beliefs and personal
norms, it is presumed that in a collectivist society, such as Malaysia (being an Asian country), certain
individual traits, such as personal moral norms, values, or obligation (significant aspects in the
individualistic western nations), do not contribute much to influencing intention and adoption of
green products [14,29]. As such, this study embedded eco-literacy and environmental concern in the
original TPB model as antecedents of consumers’ attitudes towards environmentally friendly products,
along with normative beliefs (as an independent variable) and perceived behavioral control, in order
to determine willingness to pay (intention) and payment behavior for green products from the stance
of low-income household heads in Malaysia. This work also appears to extend the application and to
broaden the predictive power of the adapted TPB framework, particularly from the stance of green
purchase intention behavior.

2.2. Attitudes towards Environmentally Friendly Products

Attitude denotes one’s negative or positive evaluation of self-performance regarding a particular
behavior [15]. Within the studied context, attitudes towards environmentally friendly products are
perceived as the degree to which performance of green purchase behavior is negatively or positively
valued by individuals [6]. Based on TPB, one’s attitude is a strong predictor of behavioral intention [15].
Within the context of pro-environmentalism, Maichum et al. [1] found that consumer attitude can
significantly have a positive effect upon their purchase intention for environmentally friendly products.
In terms of green consumption, Wu and Chen [16] discovered that attitude exhibited a significantly
Sustainability 2018, 10, 1316 4 of 19

positive impact on consumers’ behavioral intentions. Meanwhile, from the stance of Malaysian
consumers, Mei et al. [2] revealed that a significant antecedent that affects green purchase intention is
environmental attitude. In a prior study, Tsen, Phang, Hasan, and Buncha [30] had similarly observed
consumers’ attitudes in Kota Kinabalu, Malaysia to be the most consistent explanatory factor in
predicting willingness to pay for green products. Hence, after weighing in both theory and existing
literature, the following hypothesis is drawn:

Hypothesis 1 (H1). Attitudes Towards Environmental-Friendly Products Have a Significantly Positive Effect
on Willingness to Pay for Environmentally Friendly Products among Low-Income Households in Coastal
Peninsular Malaysia.

2.2.1. Eco-Literacy
Ecological knowledge or eco-literacy is defined as one’s ability to identify ecological symbols,
concepts, behavior, etc. [31]. In general, knowledge reflects the characteristic that influences all
phases in one’s decision-making process [2], which may form either positive or negative attitudes
towards a certain behavior. In an attempt to promote pro-environmental behavior, consumers will
need to be educated in order to comprehend the general impact of a product on the environment,
along with the knowledge of the product itself if it is produced in an environmental-friendly manner.
According to Laroche et al. [31], one’s knowledge about the environment or eco-literacy enlightens
one with knowledge about action strategies and issues, aside from aiding to shape attitudes and
intentions through the belief system. This would eventually lead towards the practical aspects of the
knowledge variable as the significant leverage points, in which marketers and agencies can influence
pro-environmental behavior, are emphasized. Empirically, Cheah and Phau [32] have highlighted
that the level of eco-literacy is significantly correlated with consumers’ attitudes and behavioral
tendencies, hence implying that awareness amongst consumers about the environment is indeed
crucial to forming a favorable mindset towards environmental-friendly products. Particularly within
the Malaysian context, a recent study revealed that its students possess high levels of environmental
knowledge, which nurtures positive attitudes towards environmental issues [33]. From the discussion
above, the notion upheld in the likelihood model [34], denoting the situation-specific cognition of an
individual, was weighed to establish that eco-literacy can process information in central route through
a substantial amount of environmental cognition, which is thus positively linked with positive attitude
towards environmental-friendly products.

Hypothesis 2 (H2). Eco-Literacy Has a Significantly Positive Effect on Attitudes Towards Environmentally
Friendly Products among Low-Income Households in Coastal Peninsular Malaysia.

2.2.2. Environmental Concern

Environmental concern is perceived as the evaluation of one’s attitude towards facts, his or
her own behavior, or the behavior of others that has consequences towards the environment [28].
According to Maichum et al. [1], consumers can translate their environmental awareness into
staunch attitude to purchase environmental-friendly products. Kai and Haokai [28] asserted that
environmental concerns have to be treated as evaluation of, or an attitude towards, facts, one’s own
behavior, or others’ behavior with consequences for the environment. Furthermore, it has been
highlighted that consumers with higher levels of environmental concerns are more likely to exert
environmental-friendly consumption. In fact, Yadav and Pathak [35] have expressed in their study
that environmental concerns are definitely essential in predicting environmental attitudes, which
could contribute towards consumers’ decision-making processes, such as purchasing eco-friendly
products. Furthermore, Maichum et al. [1] empirically demonstrated that environmental concerns
have a significantly positive impact upon one’s attitude towards environmentally friendly products.
In a similar vein, Kai and Haokai [28] asserted that consumers’ environmental concern could stimulate
Sustainability 2018, 10, 1316 5 of 19

green consumption by means of influencing behavioral attitudes and intentions. Mostafa [36] also
reported that environmental concerns might have a positive impact upon individuals’ attitudes
towards environmental-friendly products, which, in turn, could affect their environmentally friendly
purchase intentions. As elaborated previously, it could be perceived that, in accordance with the notion
emphasized in the likelihood model [34], consumers become more concerned about the environment
upon consuming higher levels of green energy, in comparison to the general population [35],
thus indicating that environmental concern processes information in central route with massive
environmental cognition. This suggests that environmental concern is positively associated with
positive attitude towards environmentally friendly products. With that said, the following hypothesis
is proposed.

Hypothesis 3 (H3). Environmental Concern Has a Significantly Positive Effect on Attitudes Towards
Environmental-Friendly Products among Low-Income Households in Coastal Peninsular Malaysia.

2.3. Mediating Effect of Attitudes towards Environmentally Friendly Products

As this study hypothesized significantly positive effects of eco-literacy and environmental
concern on attitudes towards environmentally friendly products, along with the positively significant
impact of attitudes towards environmentally friendly products on consumers’ willingness to pay
for environmentally friendly products, this study investigated the mediating effect of attitudes
towards environmentally friendly products on the relationships of eco-literacy and environmental
concern with consumers’ willingness to pay for environmentally friendly products. Moreover,
theoretically, the TPB propounded that the available information (in the form of attitudes towards
environmental-friendly products) mediates the effects of both personal and environmental factors
(eco-literacy, and environmental concern) on intention (willingness to pay) and behavior (payment
behavior) among fully functioning individuals [15]. Furthermore, this study incorporated the
dimensions of eco-literacy and environmental concern into the TPB, with the expectation of increasing
the predictive power of the original model [37], wherein the new constructs have been estimated to
exhibit an indirect impact upon intention, which is mediated through the components of the original
model (attitude) [38]. Therefore, following Maichum et al. [1] and Kai and Haokai [28], this study
hypothesized the following:

Hypothesis 4 (H4). Attitudes Towards Environmental-Friendly Products Mediates the Effect of Eco-Literacy
on Willingness to Pay for Environmental-Friendly Products among Low-Income Households in Coastal
Peninsular Malaysia.

Hypothesis 5 (H5). Attitudes Towards Environmental-Friendly Products Mediates the Effect of Environmental
Concern on Willingness to Pay for Environmental-Friendly Products among Low-Income Households in Coastal
Peninsular Malaysia.

2.4. Normative Beliefs

Normative belief reflects one’s perception of the extent to which he or she should yield towards
social pressure [39]. Normative beliefs can be translated as the expectations of significant others,
such as family, friends, relatives, colleagues, and others, which are assumed to govern perceived social
pressure over individuals [6]. In accordance with the TPB, normative beliefs may be perceived as the
social pressure that significantly influences one’s behavioral intentions [15]. According to Rhodes and
Courneya [40], normative pressure has an impact upon the intention of individuals (belonging to a
group) to perform a certain behavior. Meanwhile, Wu and Chen [16] noted that one’s strong belief in
social norms can guarantee specific behavior in conforming to social expectations, thus establishing
normative beliefs as an important factor in exerting influence upon an individual’s behavior.
Sustainability 2018, 10, 1316 6 of 19

As for pro-environmental behavior, Oskamp et al. [41] revealed that friends and neighbors who
practiced recycling significantly influenced recycling behavior among individuals, thus signifying
that peer influence, as a form of normative pressure, appears to be a significant determinant in one’s
decision to recycle. In the case of green purchasing, Kai and Haokai [28] promulgated that one’s
decision related to green behavior largely depends on the perceptions of family, friends, and significant
others towards an individual. Particularly within the context of Malaysia, Mei et al. [2], found that one
of the most significant antecedents that had an effect upon green purchase intention was peer pressure.
Thus, based on both theory and existing literature, the following hypothesis is drawn:

Hypothesis 6 (H6). Normative Beliefs Have a Significantly Positive Effect on Willingness to Pay for
Environmental-Friendly Products among Low-Income Households in Coastal Peninsular Malaysia.

2.5. Perceived Behavioral Control

Perceived behavior control is conceptualized as the acquisition of opportunities and resources,
such as specific skills, cooperation of others, etc., which is perceived to facilitate one in performing a
specific behavior [6]. The TPB conveys that developing perceived behavioral control prior to generating
behavioral intention is essential [15]. Empirically, Wang et al. [29] and Afroz et al. [3] discovered that
consumers’ perceived behavioral control significantly influenced adoption intention towards green
vehicles. Furthermore, within the context of green purchasing, Maichum et al. [1] revealed that
consumers’ perceived behavioral control has a significantly positive effect upon purchase intention
towards environmental-friendly products. Interestingly, some scholars have further argued that
in the context of non-volitional behavior, wherein behaviors could pose difficulties in execution,
perceived behavioral control, in terms of presence of restrictions, limitation of skills, chances,
or external conditions, may significantly predict actual behavior with behavioral intention [15,28,42,43].
Furthermore, Wu and Chen [16] provided empirical evidence that behavior control does have a
significantly positive impact upon both consumers’ behavioral intention and actual behavior. Therefore,
based on both theory and existing literature, the following hypotheses are proposed:

Hypothesis 7 (H7). Perceived Behavioral Control Has a Significantly Positive Effect on Willingness to Pay for
Environmentally Friendly Products among Low-Income Households in Coastal Peninsular Malaysia.

Hypothesis 8 (H8). Perceived Behavioral Control Has a Significantly Positive Effect on Payment Behavior for
Environmental-Friendly Products among Low-Income Households in Coastal Peninsular Malaysia.

2.6. Willingness to Pay for Environmentally Friendly Products

Intentions represent an individual’s conscious motivation or willingness to make an effort to
engage in a particular behavior [15,16,28,44]. Within the present context, consumers’ willingness to pay
for environmentally friendly products could be perceived as a green purchase intention that reflects an
individual’s consideration of less pollution and readiness to perform green purchase behavior [6,10].
Theoretically, the TPB suggests that the closest determinant of volitional behavior is one’s intention
to engage in a specific behavior [15,28]. Ajzen [15] claimed that stronger intention indicates higher
possibility of performing a particular behavior. The existing empirical evidence also seems to suggest
that, in general, intentions significantly predict behavior [45,46]. Particularly, within the context of
green consumption, empirical evidence reveals that behavioral intention positively influences actual
behavior [16,36]. Hence, deducing from theory and existing literature, the following hypothesis
is drawn:

Hypothesis 9 (H9). Willingness to Pay for Environmental-Friendly Products Has a Significantly Positive
Effect on Payment Behavior for Environmentally Friendly Products among Low-Income Households in Coastal
Peninsular Malaysia.
Sustainability 2018, 10, 1316 7 of 19

2.7. Mediating Effect of Willingness to Pay for Environmentally Friendly Products

As this work hypothesized the effect of attitude upon environmental-friendly products, normative
beliefs, and perceived behavioral control on willingness to pay, along with the effect of consumers’
willingness to pay on payment behavior, this study rationally expects willingness to mediate the effect
of attitudes towards environmentally friendly products, normative beliefs, and perceived behavioral
control on payment behavior for environmentally friendly products. Theoretically, the TPB also
supports that intention (willingness to pay) should completely mediate the effects of constructs that
serve as predictors (i.e., attitudes towards environmentally friendly products, normative beliefs,
and perceived behavioral control) on later action, i.e., behavior (payment behavior) [15]. Empirically,
Wu and Chen [16] showed that the effect of TPB antecedents on actual behavior is mediated by
behavioral intentions in terms of green consumption. Hence, considering the discussion above,
the following is hypothesized:

Hypothesis 10 (H10). Willingness to Pay for Environmentally Friendly Products Mediates the Effect of
Attitudes Towards Environmental-Friendly Products on Payment Behavior for Environmental-Friendly Products
among Low-Income Households in Coastal Peninsular Malaysia.

Hypothesis 11 (H11). Willingness to Pay for Environmentally Friendly Products Mediates the Effect of
Normative Beliefs on Payment Behavior for Environmentally Friendly Products among Low-Income Households
in Coastal Peninsular Malaysia.

Hypothesis 12 (H12). Willingness to Pay for Environmentally Friendly Products Mediates the Effect of
Perceived Behavioral Control on Payment Behavior for Environmentally Friendly Products among Low-Income
Households in Coastal Peninsular Malaysia.

3. Research Methodology
This study employed a cross-sectional design and gathered quantitative data via structured
interview to determine the effects of selected variables on willingness and behavior towards
payment for environmental-friendly products among low-income households in Coastal Peninsular
Malaysia. The study population is comprised of the low-income households from Coastal Peninsular
Malaysia with a net income below RM2000, as retrieved from the Prime Minister’s Department [47].
The Implementation and Coordination Unit of the Prime Minister’s Department (ICU-JPM), Malaysia
had prepared a database of low-income households in Malaysia with specific information, including
name, address, and contact details. After obtaining formal request from researchers, the ICU-JPM
provided a list of 500 low-income household heads living in 36 coastal districts from 10 states in
Peninsular Malaysia. These 500 low-income households were selected from a database that had
information regarding 78,118 low-income households via random sampling method, from 38 coastal
districts in Peninsular Malaysia. Prior to data collection, the data collection team contacted the selected
household heads to brief them about the survey and set appointment for interview. Complete data
were collected in July and August 2017 from a total of 380 respondents, who allowed the researchers
to visit their premises and to gather data via structured interview. Among them, 40 were from Johor
(8 from Pontian, 9 each from Johor Bharu and Batu Pahat, and 7 each from Muar and Mersing), 35 from
Pahang (20 from Pekan and 15 from Rompin), 36 from Kedah (10 from Kota Setar, and 13 each from
Kuala Muda and Yan), 37 from Kelantan (9 from Bachok, 11 from Kota Bharu, 10 from Pasir Puteh, and
7 from Tumpat), 35 from Perlis (15 each from Kayang, Kuala Perlis, and Sanglang), 38 from Terengganu
(6 each from Kuala Terengganu, Setiu, Kuala Nerus, Besut, and Marang, and 8 from Kemaman),
39 from Penang (7 from Seberang Prai Selatan, 8 from Utara, 5 from Tengah, 10 from Timor Laut,
and 9 from Barat Daya), 40 from Selangor (10 each from Sabak Bernam, Kuala Selangor, Klang, as well
as Kuala Langat and Sepang), 41 from Perak (11 each from Hilir Perak and Larut Matang & Selama,
Sustainability 2018, 10, 1316 8 of 19

10 from Manjung, and 9 from Kerian), and lastly, 39 respondents from Melaka Tengah, from the state
of Melaka.

3.1. Sample Size

The sample size for this study was determined via G-Power version 3.1. Based on the power
of 0.95 (which exceeds 0.80, as required in social and behavioral science research) with an effect size
of 0.15, this study required a sample size of 146 to test the model that comprised of 6 predictors.
Besides, Reinartz, Haenlein, and Henseler [48] suggested a minimum threshold of 100 samples for
PLS-SEM. Hence, in order to avoid any complication that may arise from a small sample size, this study
gathered data from 380 low-income household heads living in 36 districts from 10 states in Coastal
Peninsular Malaysia.

3.2. Research Instrument

The questionnaire was designed by using simple and unbiased terms so as to ease comprehension
of questions among the respondents in order to ensure that answers were provided based on their own
perceptions. The questions were adapted from prior studies with minor alterations where required.
More details on each section, for instance, what is measured and from whom the questions were
adapted, are provided in the following. The items used to measure eco-literacy were adopted from
Maichum et al. [1] and Mostafa [36]. As for environmental concern, the items were adopted from
Cheung, Lau, and Lam [49]. Meanwhile, items that measured attitudes towards environmentally
friendly products were adopted from Ha and Janda [11] and Maichum et al. [1], normative beliefs
from Wu and Chen [16], and perceived behavior control from Maichum et al. [1]. Lastly, items for
willingness to pay for environmental-friendly products were adopted from Ha and Janda [11] and
Afroz et al. [3], whereas items regarding payment behavior for environmentally friendly products
were adopted from Walton and Austin [50], Sánchez, López-Mosquera, and Lera-López [51], as well
as Osman et al. [4]. Furthermore, as recommended by Podsakoff et al. [52], this study adopted the
seven-point Likert scale (1 to 7, from ‘strongly disagree’ to ‘strongly agree’) for dependent variable and
five-point Likert scale (1 to 5, from ‘strongly disagree’ to ‘strongly agree’) for independent variables.

3.3. Common Method Variance (CMV)

As a procedural remedy to reduce the effect of common method bias, apart from carefully
constructing the items, this study also ‘informed the respondent that the responses are evaluated anonymously
and there is no right or wrong answer’ at the time the data were collected [52]. As for statistical remedy,
this study adopted the Harman’s [53] one-factor test, in adherence to Podsakoff et al. [52], in which
one fixed factor extracted from all principal constructs is expected to explain less than 50 percent
of the variance. As a result, the outcomes showed that one component explained 44.67 percent of
the variance, which appears to be less than the maximum threshold of 50 percent. Additionally,
the correlation between the constructs that scored more than 0.9 is considered as an indicator of
common method bias [54]. As for this study, the highest correlation between the constructs was 0.671
(between eco-literacy and normative beliefs), which advocated a lack of common method bias in the
gathered data.

3.4. Multivariate Normality

This study examined multivariate normality by using the Web Power online tool. The Web Power
was employed to calculate Mardia’s multivariate skewness, kurtosis coefficients, and p-values, which
indicated that the p-value of Mardia’s multivariate skewness and kurtosis coefficients was less than
0.05, thus confirming the occurrence of multivariate non-normality.
Sustainability 2018, 10, 1316 9 of 19

3.5. Data Analysis Method

PLS-SEM refers to a causal modeling approach that maximizes the explained variance of the
dependent latent constructs [55]. Hence, due to the exploratory nature of this study, along with
its non-normality issue, this study employed the variance-based structural equation modeling via
partial least squares (PLS-SEM) estimation to maximize elaboration of variance among the dependent
constructs via structural equation modelling method. The outcomes of this analysis reflect those
recommended by Hair, Ringle, and Sarstedt [56] for PLS modeling, which are inclusive of indicator
reliability, internal consistency reliability, convergent validity, discriminant validity, average variance
extracted, effect size, path coefficient estimates, and predictive relevance.

4. Summary of Findings

4.1. Demographic Characteristics

The data for this study was collected from randomly selected 380 low-income household heads
from coastal Peninsular Malaysia. Among them, 191 (50.3%) were males, while the remaining 189
(49.7%) were females. A total of 80 (22.9%) respondents were aged between 21 and 30 years old,
88 each (23.2%) were from 31 to 40 years old and 51 to 50 years old, while the remaining 42 (11%)
respondents were either below 21 or above 60 years old. As for education level, 196 (51.6%) had
completed secondary school, followed by 64 (16.8) who completed primary school level, 54 (14.2%)
held diploma, and 27 (7.1%) had bachelor’s degree and above, whereas 39 (10.3%) never attended
formal school. As for employment status at the time of study, a total of 374 (98.4%) reported being
‘gainfully employed’, while the remaining 6 (1.6%) were unemployed. Lastly, regarding income sources,
only two households reported that they did not have any income; 232 (61.1%) households had only
one source of income, followed by 121 (31.8%) with two sources of income, and the remaining 25 (6.6%)
had three or more sources of income.

4.2. Reliability and Validity

Table 1 presents the descriptive statistics, including number of items, as well as mean and
standard deviation values of all variables (i.e., eco-literacy, environmental concern, attitudes towards
environmentally friendly products, normative beliefs, perceived behavioral control, willingness to pay
for environmental-friendly products, and payment behavior for environmentally friendly products).
The Cronbach’s alpha (conservative measure of internal consistency reliability) values, as displayed in
Table 1, show that all constructs have values exceeding 0.9, hence indicating that all the items used are
indeed reliable. This study also adopted a different measure of internal consistency reliability, known
as ‘composite reliability’. The cutoff value for composite reliability is 0.7 [55]. As tabulated in Table 1,
the composite reliability values for all constructs exceed 0.9, thus signifying the reliability of the items
used to measure the constructs. In addition, the Dillon–Goldstein rho values for all constructs are
more than 0.9, re-affirming the reliability aspect of the items. Finally, in order to achieve convergent
validity, the average variance extracted (AVE) value should be higher than 0.50. As such, Table 1
portrays that the AVE values for all constructs are indeed higher than 0.8, which indicates acceptable
convergent validity. Finally, in order to test for multicollinearity issue, this study tested the variance
inflation factors (VIF). The VIF values for all variables are below 1.5, thus indicating the absence of
multicollinearity issues [57].
As for the discriminant validity based on the Fornell–Larcker criterion, the AVE for each indicator
should be greater than the highest squared correlation between the constructs. As noted in Table 2, all
constructs did meet this criterion. Meanwhile, the Heterotrait–Monotrait Ratio (HTMT) denotes
an estimate of the correlation between constructs, paralleling the disattenuated construct score.
With the value of 0.9 as the threshold, this study concluded that there is no evidence signifying lack of
discriminant validity. Lastly, the loading and cross-loading values presented in Table 3 and Figure 1
Sustainability 2018, 10, 1316 10 of 19

show that all the

Sustainability 2018,indicator loadings
10, x FOR PEER exceed 0.7. The cross-loadings in Table 3 exemplify that10all
REVIEW of loadings
19
for the indicators are higher than the total cross-loadings, hence re-affirming discriminant validity.
Table 1. Reliability and validity.
Table 1. Reliability and validity.
Variables No. Items Mean SD CA DG rho CR AVE VIF
EL 4 3.263 1.045 0.974 0.980 0.981 0.926 1.087
EC Variables 4 No. Items
4.303 Mean0.794 SD 0.978CA DG rho
0.978 CR
0.984 AVE
0.938 VIF
1.087
ATE EL 4 4 3.932 3.2630.717
1.045 0.920
0.974 0.924
0.980 0.944
0.981 0.808
0.926 1.271
1.087
NRB EC 4 4 3.312 4.3031.000
0.794 0.971
0.978 0.9720.978 0.978
0.984 0.919
0.938 1.171
1.087
ATE 4 3.932
0.717 0.920 0.924 0.944 0.808 1.271
PBC 4 3.362 0.810 0.957 0.958 0.969 0.887 1.330
NRB 4 3.312
1.000 0.971 0.972 0.978 0.919 1.171
WPEFP PBC 6 4 3.174 0.997
3.362
0.810 0.980
0.957 0.9820.958 0.984
0.969 0.911
0.887 1.369
1.330
PBEFPWPEFP 6 6 3.625 1.332
3.174
0.997 0.983
0.980 0.9840.982 0.986
0.984 0.922
0.911 1.369-
Note:PBEFP
EL: Eco-Literacy;
6 EC: Environmental
3.625 Concern;
1.332 0.983ATE: Attitudes
0.984 Towards
0.986 Environmentally
0.922 -
Friendly
Note: Products; NRB:
EL: Eco-Literacy; Normative Beliefs;
EC: Environmental PBC:ATE:
Concern; Perceived Behavioral
Attitudes TowardsControl; WPEFP: Willingness
Environmentally Friendly Products;
NRB:to Normative
Pay for Environmentally FriendlyBehavioral
Beliefs; PBC: Perceived Products;Control;
PBEFP: WPEFP:
PaymentWillingness
Behavior for Environmentally
to Pay for Environmentally
Friendly Products;
Friendly PBEFP:
Products; Payment Behavior
SD: Standard Deviation;for Environmentally
CA: Friendly
Cronbach’s Alpha; Products; SD: Standardrho;
DG rho—Dillon-Goldstein’s Deviation;
CA: Cronbach’s Alpha; DG rho—Dillon-Goldstein’s rho; CR—Composite Reliability; AVE—Average Variance
CR—Composite
Extracted; VIF—VarianceReliability;
InflationAVE—Average
Factors. Source:Variance Extracted;
author’s data VIF—Variance Inflation Factors.
analysis.
Source: author’s data analysis.
Table 2. Discriminant validity.
Table 2. Discriminant validity.
Fornell-Larcker Criterion
Fornell-Larcker Criterion Heterotrait-Monotrait
Heterotrait-MonotraitRatioRatio
(HTMT)(HTMT)
EL
EL EC
EC ATE
ATE NRB
NRB PBC
PBC WPEFP
WPEFP PBEFP
PBEFP EL EL EC EC ATEATENRB NRBPBCPBCWPEFP WPEFP
EL 0.962 -
EL 0.962 -
EC 0.283 0.968 0.292 -
EC 0.283 0.968 0.292 -
ATE 0.268 0.453 0.899 0.280 0.476 -
ATE 0.268 0.453 0.899 0.280 0.476 -
NRB 0.671 0.248 0.288 0.959 0.691 0.254 0.304
NRB 0.671 0.248 0.288 0.959 0.691 0.254 0.304 - -
PBC
PBC 0.403
0.403 0.282
0.282 0.439
0.439 0.352
0.352 0.942
0.942 0.415
0.4150.291
0.2910.469
0.4690.365
0.365 - -
WPEFP
WPEFP 0.501
0.501 0.308
0.308 0.366
0.366 0.365
0.365 0.519
0.519 0.955
0.955 0.512
0.5120.314
0.3140.383
0.3830.372
0.3720.5350.535 - -
PBEFP
PBEFP 0.377
0.377 0.363
0.363 0.395
0.395 0.311
0.311 0.566
0.566 0.503
0.503 0.960
0.960 0.384
0.3840.370
0.3700.416
0.4160.318
0.3180.5830.5830.5110.511
Note: EL: Eco-Literacy; EC: Environmental Concern; ATE: Attitudes Towards Environmentally
Note: EL: Eco-Literacy; EC: Environmental Concern; ATE: Attitudes Towards Environmentally Friendly Products;
NRB:Friendly Products;
Normative NRB:
Beliefs; Normative
PBC: PerceivedBeliefs; PBC: Perceived
Behavioral Behavioral
Control; WPEFP: Control; WPEFP:
Willingness Willingness
to Pay for Environmentally
to PayProducts;
Friendly for Environmentally
PBEFP: PaymentFriendly Products;
Behavior PBEFP: PaymentFriendly
for Environmentally BehaviorProducts.
for Environmentally
Source: author’s
dataFriendly
analysis.Products. Source: author’s data analysis.

Figure 1.
Figure 1. Research
Researchmodel
modeland analysis.
and analysis.
Sustainability 2018, 10, 1316 11 of 19

Table 3. Loadings and cross-loading.

EL SE ATE SUN PBC IEFP CEFP

Eco-Literacy (EL)
You would prefer to check the eco-labels and certifications on green products before purchase 0.938 0.297 0.221 0.641 0.341 0.480 0.320
You would prefer to gain substantial information on green products before purchase 0.968 0.281 0.258 0.647 0.380 0.482 0.363
Your knowledge helps to buy products and packages that are environmentally safe 0.976 0.263 0.278 0.656 0.412 0.487 0.385
You know the products and packages that reduce the amount of waste that end up in landfills 0.968 0.256 0.268 0.642 0.411 0.481 0.377
Environmental Concern (EC)
You believe major social changes are necessary to protect the natural environment 0.267 0.953 0.434 0.246 0.269 0.292 0.348
You believe humans must live in harmony with nature in order to survive 0.290 0.974 0.449 0.258 0.266 0.294 0.355
You think environmental problems are very important to address 0.254 0.972 0.430 0.224 0.270 0.297 0.327
You think we should care more about environmental problems 0.286 0.974 0.441 0.234 0.287 0.310 0.375
Attitudes Towards Environmentally Friendly Products (ATE)
Environmental protection is important to you when making purchase decision 0.207 0.388 0.859 0.244 0.406 0.300 0.381
Between EF and conventional products, you prefer environmentally friendly one 0.219 0.386 0.912 0.246 0.438 0.322 0.368
Using environmentally friendly products is necessary to mitigate global warming 0.272 0.434 0.930 0.283 0.381 0.341 0.344
You think that purchasing environmentally friendly products is favorable 0.259 0.417 0.892 0.261 0.359 0.348 0.331
Normative Beliefs (NRB)
Your family think you should practice environmentally friendly behavior 0.654 0.214 0.257 0.950 0.320 0.330 0.270
Your friends think you should practice environmentally friendly behavior 0.647 0.211 0.273 0.958 0.349 0.348 0.306
Your family think you should purchase environmentally friendly products 0.637 0.265 0.283 0.965 0.346 0.358 0.312
Your friends think you should purchase environmentally friendly products 0.637 0.259 0.292 0.962 0.336 0.360 0.302
Perceived Behavioral Control (PBC)
You see yourself as capable of purchasing environmentally friendly products in future 0.421 0.322 0.422 0.348 0.922 0.495 0.528
You have resources to purchase environmentally friendly products 0.352 0.226 0.401 0.328 0.933 0.474 0.508
You have willingness to purchase environmentally friendly products 0.380 0.277 0.433 0.337 0.961 0.505 0.554
There are likely to be plenty of opportunities for you to purchase EFPs 0.365 0.234 0.395 0.313 0.950 0.481 0.541
Willingness to Pay for Environmentally Friendly Products (WPEFP)
You would pay extra for EFPs even if the performance were same as the conventional products 0.492 0.300 0.363 0.359 0.511 0.957 0.503
You would pay extra for EFPs even if it had a less-appealing design 0.397 0.275 0.296 0.277 0.472 0.898 0.447
The probability that you will pay extra to buy EFPs is very high 0.466 0.290 0.338 0.336 0.476 0.962 0.444
When you replace any household appliance, you are willing to pay extra to purchase EF one 0.486 0.294 0.355 0.348 0.487 0.970 0.480
Compared with ordinary non-green products, you are more willing to pay extra to buy EFPs 0.516 0.307 0.375 0.380 0.526 0.976 0.506
You intend to pay more for environmentally friendly products 0.504 0.297 0.359 0.380 0.498 0.962 0.493
Payment Behavior for Environmentally Friendly Products (PBEFP)
You pay extra for products manufactured or grown in an environmentally friendly manner 0.348 0.348 0.393 0.295 0.559 0.499 0.968
You pay extra for eco-labeled products, i.e., non-polluting products 0.355 0.357 0.382 0.299 0.560 0.486 0.979
You pay extra for products packed in reusable containers (glass jars, etc.) 0.371 0.343 0.393 0.302 0.560 0.475 0.971
You pay extra for low-energy appliances 0.355 0.338 0.373 0.278 0.562 0.465 0.965
You talk to people about the reasons/benefits why you pay more for EFPs 0.357 0.353 0.367 0.285 0.517 0.502 0.956
You set a positive environmental example (paying extra for EFPs) for your friends to follow 0.391 0.352 0.364 0.333 0.500 0.470 0.921
Note: (1) EF: Environmentally Friendly; EFP: Environmentally Friendly Products; (2) the Bold-Italic values in the matrix above are the item loadings and others are cross-loadings.
Source: author’s data analysis.
Sustainability 2018, 10, 1316 12 of 19

4.3. Path Analysis

The path coefficients, as noted in Figure 1 and Table 4, display that the coefficient value for
eco-literacy on attitudes towards environmental-friendly products among low-income household
heads in coastal Peninsular Malaysia (Hypothesis 2 is 0.152 with a p-value of 0.000 (below 5% level of
significance). The findings indicate that the level of eco-literacy among the respondents has a positive
effect on their attitudes towards environmentally friendly products. However, the f 2 value of 0.027 hints
at a relatively small effect of eco-literacy on attitudes towards environmentally friendly products.
Meanwhile, the coefficient value for environmental concern on attitudes towards environmentally
friendly products (Hypothesis 3) is 0.410 with a p-value of 0.000 (below 5% level of significance).
The findings show that the level of environmental concern among low-income household heads
has a positive effect on their attitudes towards environmentally friendly products. Furthermore,
the standardized regression coefficients show that the aspect of environmental concern does have
a relatively higher effect on attitudes towards environmentally friendly products, as compared to
that of eco-literacy. In addition, the f 2 value of 0.200 indicates a moderate effect of environmental
concern on attitudes towards environmentally friendly products among the respondents, which is
also relatively higher than that for eco-literacy. The r2 value, which represents the degree of explained
variance, appears to be 0.226, hence signifying an essential proportion (22.6%) of the variation in
the respondents’ attitudes towards environmentally friendly products that can be explained by their
levels of eco-literacy and environmental concern. Finally, the Q2 value of 0.170 shows that the level
of eco-literacy and environmental concern displayed among the respondents has medium predictive
relevance for their attitudes towards environmentally friendly products.
The path coefficients, as tabulated in Table 4, show that the coefficient value for attitudes towards
environmentally friendly products on willingness to pay for environmental-friendly products among
the low-income household heads in coastal Peninsular Malaysia (Hypothesis 1) is 0.140 with a p-value
of 0.008 (below 5% level of significance). The outcomes signify that the attitudes displayed by
the low-income household heads towards environmentally friendly products have a significantly
positive effect on their willingness to pay for environmental-friendly products. The f 2 value of
0.023 shows the small effect of attitudes towards environmentally friendly products on willingness
to pay for environmentally friendly products among the respondents. The coefficient value for
normative beliefs on willingness to pay for environmentally friendly products among the respondents
(Hypothesis 6) is 0.186 with a p-value of 0.000 (below 5% level of significance). The findings showcase
that normative beliefs have a significant effect on willingness to pay for environmentally friendly
products. Moreover, the f 2 value of 0.044 indicates a low effect of normative beliefs on willingness
to pay for environmentally friendly products among the low-income household heads in coastal
Peninsular Malaysia. Meanwhile, the coefficient value for perceived behavioral control on willingness
to pay for environmentally friendly products (Hypothesis 7) is 0.392 with a p-value of 0.000 (below
5% level of significance). The results show that the level of perceived behavioral control among
the respondents has a significantly positive effect on their willingness to pay for environmentally
friendly products. The standardized regression coefficients further display that perceived behavioral
control has a relatively higher effect on willingness to pay for environmentally friendly products,
followed by normative beliefs and attitudes towards environmentally friendly products. Moreover,
the f 2 value of 0.171 signifies a moderate effect of perceived behavioral control on willingness to
pay for environmentally friendly products among the respondents, which is also relatively higher
than that for normative beliefs and attitudes. The r2 value, which represents the degree of explained
variance, is 0.323, hence indicating that a significant proportion (32.3%) of the variation in respondents’
willingness to pay for environmentally friendly products can be explained by their attitudes towards
environmentally friendly products, normative beliefs, and perceived behavioral control. Finally,
the Q2 value of 0.273 indicates that the respondents’ attitudes towards environmentally friendly
products, normative beliefs, and perceived behavioral control have medium predictive relevance for
the respondents’ willingness to pay for environmentally friendly products.
Sustainability 2018, 10, 1316 13 of 19

Table 4. Path Coefficients.

Hypo Beta CI—Min CI—Max t p r2 f2 Q2 Decision

Factors Effecting Attitudes
H2 EL→ATE 0.152 0.076 0.223 3.549 <0.01 0.027 Accept
0.226
H3 EC→ATE 0.410 0.324 0.497 7.805 <0.01 0.200 0.170 Accept
Factors Effecting Willingness to Pay for Environmentally Friendly Products
H1 ATE→WPEFP 0.140 0.039 0.230 2.422 <0.01 0.023 Accept
H6 NRB→WPEFP 0.186 0.116 0.271 3.791 <0.01 0.323 0.044 0.273 Accept
H7 PBC→WPEFP 0.392 0.312 0.473 7.956 <0.01 0.171 Accept
Factors Effecting Payment Behaviour for Environmentally Friendly Products
H8 PBC→PBEFP 0.418 0.338 0.500 8.472 <0.01 0.206 Accept
H9 WPEFP→PBEFP 0.286 0.198 0.372 5.437 <0.01 0.380 0.096 0.326 Accept
Mediating Effect of Attitudes Beta CI—Min CI—Max t p Decision
H4 EL→ATE→WPEFP 0.021 0.005 0.042 1.925 <0.05 Mediation
H5 EC→ATE→WPEFP 0.057 0.018 0.099 2.388 <0.01 Mediation
Mediating Effect of Willingness to Pay for Environmentally Friendly Products
H10 ATE→WPEFP→PBEFP 0.040 0.010 0.075 2.004 <0.05 Mediation
H11 SUN→WPEFP→PBEFP 0.053 0.026 0.085 2.973 <0.01 Mediation
H12 PBC→WPEFP→PBEFP 0.112 0.075 0.150 5.040 <0.01 Mediation
Note: EL: Eco-Literacy; EC: Environmental Concern; ATE: Attitudes Towards Environmentally Friendly Products;
NRB: Normative Beliefs; PBC: Perceived Behavioral Control; WPEFP: Willingness to Pay for Environmentally Friendly
Products; PBEFP: Payment Behavior for Environmentally Friendly Products. Source: author’s data analysis.

Finally, the path coefficients, as noted in Table 4, display that the coefficient value for perceived
behavioral control on payment behavior for environmentally friendly products among the low-income
household heads in coastal Peninsular Malaysia (Hypothesis 8) is 0.418 with a p-value of 0.000 (below
5% level of significance). The findings exhibit that the level of perceived behavioral control among
the respondents has a significantly positive effect on their payment behavior for environmentally
friendly products. The f 2 value of 0.206 points out a moderate effect of perceived behavioral control
on payment behavior for environmentally friendly products among the respondents. The coefficient
value for willingness to pay for environmental-friendly products on payment behavior for green
products (Hypothesis 9) is 0.286 with a p-value of 0.000 (below 5% level of significance). The outcomes
show that willingness among the respondents to pay for environmentally friendly products has a
significantly positive effect on their payment behavior for green products. The standardized regression
coefficients signify that perceived behavioral control has a relatively higher effect on payment behavior
for environmentally friendly products than that of willingness to pay for green products. Moreover, the
f 2 value of 0.096 indicates a weak effect of willingness to pay for environmentally friendly products on
payment behavior for green products among the respondents, which is also relatively lower than that
for perceived behavioral control. Meanwhile, the r2 value, which is 0.380, points out that a significant
proportion (38.0%) of the variation in respondents’ payment behavior for environmentally friendly
products can be explained by their level of willingness to pay for environmentally friendly products
and perceived behavioral control. Finally, the Q2 value of 0.326 shows that the level of willingness
to pay among the respondents for environmentally friendly products and perceived behavioral
control have medium-to-high predictive relevance for their payment behavior for environmentally
friendly products.

4.4. Mediating Effects

As for the mediating effects of attitudes towards environmentally friendly products, normative
beliefs, perceived behavioral control, and willingness to pay for environmentally friendly products, the
study presents indirect effect coefficients, confidence intervals, and p-values in Table 4. The results show
that eco-literacy (Hypothesis 4) has a significantly (p-values < 0.05) indirect effect on willingness to
pay for environmentally friendly products among low-income household heads in Coastal Peninsular
Malaysia; which ratifies that attitudes towards environmentally friendly products mediate the
Sustainability 2018, 10, 1316 14 of 19

relationship between eco-literacy and willingness to pay for environmentally friendly products. As for
environmental concern (Hypothesis 5), it displays a significantly positive (p-values < 0.05) and indirect
effect on willingness to pay for environmentally friendly products among the respondents, which
confirms that attitudes towards environmentally friendly products mediate the correlation between
environmental concern and willingness to pay for green products.
The findings further revealed that attitudes towards environmental-friendly products (Hypothesis 10)
have a significantly positive (p-values < 0.05) and indirect effect on payment behavior for environmentally
friendly products among low-income household heads in Coastal Peninsular Malaysia, which affirms
that willingness to pay for environmentally friendly products mediates the relationship between
attitudes towards environmentally friendly products and payment behavior for green products.
The outcomes also show that normative beliefs (Hypothesis 11) have a significantly (p-values < 0.05)
indirect effect on payment behavior for environmentally friendly products among the respondents,
thus sanctioning that willingness to pay for green products mediates the correlation between normative
beliefs and payment behavior for green products. Finally, the results for perceived behavioral control
(Hypothesis 12) reveal a significantly positive (p-values < 0.05) and indirect effect on payment behavior
for green products among low-income household heads in Coastal Peninsular Malaysia, which ratifies
that willingness to pay for environmentally friendly products mediates the relationship between
perceived behavioral control and payment behavior for green products.

4.5. Importance of Performance Matrix Analysis

Next, a post-hoc importance–performance matrix analysis (IPMA) was performed using payment
behavior for environmentally friendly products as the target construct. The total effect values
(importance score) and the performance values (ranging from 0 for ‘lowest performance’ to 100
for ‘highest performance’) are tabulated in Table 5. The outcomes reveal that perceived behavioral
control and willingness to pay for environmentally friendly products are the most important factors
that influence the payment behavior for green products.

Table 5. Performance and total effects.

Target Payment Behavior for Payment Behavior for

Construct Environmentally Friendly Products Environmentally Friendly Products
Variables Total Effect Performance Total Effect Performance
EL 0.01 56.82 NRB 0.07 57.78
EC 0.03 82.61 PBC 0.87 59.08
ATE 0.07 73.45 WPEFP 0.38 54.44
Note: EL: Eco-Literacy; EC: Environmental Concern; ATE: Attitudes Towards Environmentally Friendly Products;
NRB: Normative Beliefs; PBC: Perceived Behavioral Control; WPEFP: Willingness to Pay for Environmentally
Friendly Products. Source: author’s data analysis.

5. Discussion and Implications

Consumers of today have been enlightened about their critical role in protecting the
environment [16]. Hence, in an attempt to comprehend the predictors of environmentally responsible
consumption from the emerging stance of economies, this study has determined the factors that
influence willingness to pay and payment behavior for environmentally friendly products through
the use of an extended TPB framework. The findings of this study reveal that the level of eco-literacy
and environmental concern among the respondents has a significantly positive effect on their
attitudes towards environmentally friendly products. This finding is in line with several existing
studies [1,28,32,35,36] supporting that environmental knowledge and awareness do promote positively
strong attitudes towards intention to pay and payment behavior for environmentally friendly products.
The findings further display that attitudes among the respondents towards environmentally friendly
products have a significantly positive effect on their willingness to pay for green products. This finding
thus conforms to the TPB [15] and the existing literature [1,2,12,30], which signifies that the degree of
Sustainability 2018, 10, 1316 15 of 19

individuals’ perceptions of the performance of green purchase behavior determines their willingness
to pay for environmentally friendly products.
Meanwhile, normative beliefs held by the low-income household heads were also found to have
a significantly positive effect on their willingness to pay for green products. This finding supports
the theories of and is in line with Wang et al. [29] and Adnan et al. [14], who advocated that in
a collectivist society, such as that in Malaysia (being an Asian country), social norms have more
contributory effects at influencing behavioral intentions towards purchase of green products than
their personal counterparts. This finding further extends the notion presented by Wu and Chen [16],
which suggests that in a collectivist society, normative beliefs do not only effect behavioral intention
indirectly (through subjective norms), but also directly. As for behavioral control, the outcomes reveal
that the level of perceived behavioral control exerted a positively significant influence on willingness
among respondents to pay for green products. This finding further draws support from the TPB [15],
which is also in line with the relevant existing literature [1,3,29].
The results further portray a significantly positive effect of the level of perceived behavioral
control and willingness to pay for green products among the respondents on payment behavior.
This finding empirically supports TPB, thus re-establishing both perceived behavioral control and
intention (willingness to pay) as significant predictors of behavior (payment behavior), in particular
within the context of environmentally friendly products among selected low-income households of
Coastal Peninsular Malaysia in the sphere of the emerging economy [15,16,42]. Interestingly, in regard
to this finding, the higher effect value of perceived behavioral control indicates that payment behavior
for green products is a non-volitional behavior, which poses difficulties in execution and therefore
depends more on perceived availability of recourses and individual abilities instead of their willingness
to pay [28,43].
On the other hand, in terms of mediation effects, attitudes towards environmentally friendly
products appeared to significantly mediate the correlation of eco-literacy and environmental concern
with willingness to pay for environmentally friendly products. This finding supports the extended
TPB model employed in this study and falls in line with prior related studies [1,28,35,37]. Finally,
as hypothesized, willingness to pay for environmentally friendly products was found to significantly
mediate the relationships of attitudes towards environmentally friendly products, normative beliefs,
and perceived behavioral control with payment behavior for green products. Furthermore, this finding
reflects the significantly indirect effect of attitude among the respondents towards environmentally
friendly products, normative beliefs, and perceived behavioral control on their payment behavior
for environmentally friendly products, which is in agreement with Ajzen [15]. Last but not least,
the results for performance and total effects signify that perceived behavioral control and willingness
to pay for environmentally friendly products are the factors that contribute most towards the payment
behavior for environmentally friendly products among selected low-income household heads in
Coastal Peninsular Malaysia [15,16,42,43].

6. Conclusions
In line with Kai and Haokai [28], this study argues that developing and championing
environmentally friendly products and services demands effective public behavior in favor of
the socio-economic environment. As such, this study investigated the influence of consumers’
psychological factors (i.e., attitudes, normative beliefs, and perceived behavioral controls) on
willingness to pay and payment behavior for environmentally friendly products among selected
low-income households in Coastal Peninsular Malaysia. The overall outcomes from various statistical
tests have confirmed that the extended TPB model employed by this study is indeed appropriate for
the studied group. Moreover, the literature review has revealed interesting but scant insights into
consumers’ willingness to pay for green products, particularly in light of the emerging economies.
Theoretically, this study seems to make a substantial contribution towards the growing body of
relevant literature pertaining to intention behavior by empirically validating a comprehensive model
Sustainability 2018, 10, 1316 16 of 19

for environmentally friendly products within the context of low-income households in Malaysia.
In fact, this study does not only contribute towards the TPB by simply providing empirical evidence
that reaffirms its applicability, but it also significantly contributes towards the TPB by broadening the
explanatory power of the TPB through integration of subcomponents (eco-literacy and environmental
concern) with certain constructs (attitudes) of the theory. Hence, this study extends the TPB and
widens its scope by examining willingness to pay and payment behavior towards environmentally
friendly products through the lenses of low-income households.
In terms of practical implication, this study draws the attention of policy makers and green
organizations towards the focus areas so as to enhance public sensitivity towards environmental
issues and further drive consumer preferences towards ecologically-conscious purchasing behavior,
thus resulting in increased demand and adoption of green products that support the growth of
green businesses. Furthermore, governments and developmental organizations should adopt policies
and programs in order to enhance environmental knowledge and awareness among low-income
households to promote the purchase of green products. Moreover, relevant authorities should work to
encourage positive social norms, mainly to induce green consumerism. In addition, adequate resources
and facilities, for example, subsidiaries, availability of green products, etc., have to be ascertained so as
to improve the perceived behavioral control, which in turn, generates willingness to pay and payment
behavior of environmentally friendly products, particularly among those with low income.
As for green firms, the findings of this study could be applied to identify the source of green
product purchase intentions among consumers, which can immensely aid in devising viable strategies
and acquiring market share for environmentally friendly products. On top of that, relevant firms may
use the outcomes of this study to formulate policies and strategies to develop products, to understand
customer needs, and, ultimately, to retain consumers. In particular, from the stance of the local
perspective, the results of this study could serve as a guideline for organizations that plan to penetrate
into the Malaysian market in strategizing their marketing approaches that would further encourage
consumers to pay for green products.
Nevertheless, all studies, including this one, have limitations. It is noteworthy to highlight that
this study could not accommodate all factors that may affect consumers’ willingness to pay and
payment behavior into this model. Furthermore, this study only focused on a specific income group
from a single country, thus limiting the generalizability of its findings. In terms of methodological
limitation, this study depended solely on the cross-sectional quantitative approach. Perhaps, a multiple
method approach that determines the aspects of robustness and causality based on qualitative methods
or longitudinal data could further prove the reliability of the findings retrieved from this present study.
Finally, this study perceives environmentally friendly products as generally representing all
green products. In reality, purchase intention and adoption of specific categories of green products
and services, such as green vehicles, organic food, environmental-friendly hotels, etc., could take
a different direction. Hence, it is recommended that future researchers should focus on specific
environmentally friendly products and services, drawing their samples from varied economic and
social groups living across the globe, which could reveal new and interesting research angles that lead
to a better understanding of environmentally friendly consumption, which appears to be essential for
sustainable development.

Author Contributions: Lead author Abdullah Al Mamun, who was also the lead researcher of the research grant
that was received, prepared the research proposal, managed the research project, designed the questionnaire,
analyzed the data, and wrote this paper. Syed Ali Fazal, Ghazali Bin Ahmad, Mohd Rafi Bin Yaacob and Mohd.
Rosli Mohamad contributed to the development of the research model, the literature review, the sample selection,
the data collection, and the preparation of the manuscript.
Acknowledgments: This study was funded by the RMIC, Universiti Malaysia Kelantan, Malaysia under the
grant titled ‘Short Term Research Grant (SGJP-USM) (Grant Code: R/MyRA/A01.00/00826A/002/2017/000404)’.
Project title: Intention and Behavior towards Eco-Friendly means to Eradicate Poverty: A Study among Low Income
Households in Coastal Peninsular Malaysia. Total Grant: RM31224.93 (Ringgit Malaysia).
Conflicts of Interest: The authors declare no conflict of interest.
Sustainability 2018, 10, 1316 17 of 19

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