CHAPTER I – INTRODUCTION
CHAPTER 2 - LITERATURE REVIEW
2.3. T HEORIES ON CONSUMER BEHAVIOR
Consumer behavior is a process of establishing responses to a certain need of consumer.
This process consists of two stages: awareness stage and action stage. The study of consumer behavior covers all feelings, emotions, actions that consumers expose during their process of selection, purchase, use/consumption, and rejecting a product or service as well as any other factor influencing the process. The study scale of consumer behavior is shown in Figure 3.1
Figure 2.1: Factors influencing purchasing behavior (Source: Nguyen, 2008)
2.3.2. Consumer behavior theories in economics and psychology
Hansen et al. (2007) said that “consumers in the market should be sovereign and that they are indeed sovereign, at least partly. Prerequisites for consumer sovereignty are freedom of consumption, on the demand side and (perfect) competition, on the supply side. Given their preferences, consumers can decide which goods they want to purchase at what price”
External factors
CONSUMERS (choosing, buying, consuming, removing)
Motivation Learning Perception Life style Attitude
Family Role & Status Reference Culture Social class
Internal factors
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(p.447).
The perspective of sustainable world development focuses on the change of behavior and personal decision in each individual. Specificially in the electricity consumption, Martiskainen (2007) said that personal electricity consumption is not a behavior, but consequence of the switch on and switch off actions and electricity reduction.
Thus, the electricity consumption behavior is a special behavior mainly based on consumers’ habit. Jager (2000) distincted the behavior into reasoned behavior and automated behavior. He found out that personal behavior and personal decisions are more likely to be influenced by the behavior of other people. The four-fold typology of behavior of Martiskainen is shown in Table 3.2.
Table 2.6: Four-fold typology of behavior
Automated Reactions Reasoned Reactions
Individually
• Behavioral control
Socially determined
Imitation
Social learning/normative conduct
Social comparison
• Relative deprivation/social comparison
(Source: Martiskainen, 2007, p. 19)
There were many theories in psychology that tried to explain the concept of consumer behavior (Fishbein & Ajzen, 1975; Skinner, 1979; Ajzen 1985, 2002; Bandura, 1986; Stern, 2000; Kaplan, 2000; Corbett, 2005). According to Heiskanen et al. (2006), “behavioral research is used to analyze individual reactions to different initiatives; experimental (or cognitive) research is used to analyze the “social meaning of the costs and benefits of current energy use”
(p.8). Attitude behavioral models analyzing behaviors, attitudes, norms are frequently used in social psychology research. The ethical aspects of the behaviors, norms and values are analyzed using the Social Cognitive Theory or Value Belief Theory (pro-social attitudes and personal
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moral norms are predictor of pro-environmental behavior). The Theory of Reasoned Action considers that individual aspect certain benefits from the outcome of their behavior.
2.3.3. Theory of Reasoned Action
The theory of reasoned action (TRA) was built from the findings of previous studies on consumer behavior conducted by Fishbein and Ajzen in 1975 and 1980. According to Fishbein and Ajzen (1975), the behavior of a person is influenced by attitude toward the behavior, shortly called attitude and subjective norms. The result is that the behavioral intention will lead to actual behavior of a person.
Figure 2.2: Theory of Reasoned Action Ajzen and Fishbein (1980)
According to Fishbein and Ajzen (1975), attitude toward behavior and subjective norms do not have similar effects on the prediction of behavior. Instead, the effects of these two factors varies on different individuals and situation.
2.3.4. Theory of Planned Behavior
The theory of planned behavior (TPB) is a modified and extended version of theory of reasoned action (Ajzen, 1991). The theory of reasoned action had been widely used in the field of social psychology study (Eagly & Chaiken, 1993; Olson & Zanna, 1993; Sheppard, Hartwick, &
Warshaw, 1988, retrieved from Mark, C & Christopeher J.A., 1998, p. 1430). Although the effect of attitude and subjective norms were studied and accepted by many researchers, there was a shortage of TRA model noticed by scholars who raised a question about the case in which consumer lack confidence or control over behavior (Ajzen 1991). Thus, the theory of planned behavior was introduced by Ajzen in 1991 to overcome this shortage of the TRA model. In TPB model, Ajzen (1991) added a new major factor called perceived behavioral control. The perceived behavioral control refers to the individual perception of whether a behavior is difficult to perform or not, and whether the performance of that behavior is limited or not (Ajzen, 1991).
Attitude
Subjective Norms
Behavioral
Intention Actual Behavior
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For example, families may not be willing to reduce the energy consumption if they think it is too difficult to do it. The TPB model is shown in Figure 3.4.
Figure 2.3: Theory of Planned Behavior Source: Ajzen, (1991)
The TPB model has been applied in many researches including the prediction of energy saving behavior and effective energy using behavior (Harland, Staats, & Wilke, 1999;
Lindenberg & Steg, 2007). In general, perceived behavioral control and attitude are in close relationship with the environment friendly behavior while subjective norms tend to have less influence (Armitage & Conner, 2001).
According to Taylor and Todd (1995), perceived behavioral control consists of 2 elements:
(1) facilitating conditions and (2) self-efficacy.
The limitation of the TPB model and the TRA model is that the authors do not take into consideration the operational components or determinants of behavior for attitude, subjective norms or in some cases, perceived behavioral control. To overcome this limitation, some researchers suggested the addition of factors related to operational components and determinants into the TPB model. Bhattacherjee (2001) suggested the combination between the TAM model and the TPB model by adding two elements, namely perceived usefulness and user friendliness, as determinants of attitude. He also suggested that subjective norms should be decided based on external influence and interpersonal influence.
Taylor and Todd (1995) suggested that the TPB model should be divided and the TAM model should be used as the attitude factor of the TPB model. Besides, Taylor and Todd (1995) also added the factor compatibility as the third element for the factor attitude. Finally, Taylor and Todd (1995) suggested that self-efficacy, resource facilitating conditions and technology facilitating conditions should be used as determinants of perceived behavioral control.
Attitude
Subjective Norms Perceived Behavioral
Control
Intention Actual
Behavior
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2.3.5. Technology Acceptance Model
The Technology Acceptance Model (TAM) was introduced by Davis in 1986. The model helps identifying the influence of external factors on belief, attitude and intention.
In the TAM model, behavioral intention to use technology is influence by two factors:
perceived usefulness and perceived ease of use. The TAM model is shown in Figure 3.5.
Figure 2.4: Technology Acceptance Model (TAM) Source: Davis et al. (1989), Venkatesh et al. (2003)
Although perceived usefulness and perceived ease of use have relationship with attitude toward using technology, Davis et al. (1989) also found out that perceived ease of use also indirectly influence attitude toward using through perceived usefulness.
2.3.6. The Norm Activation Model
The Norm Activation Model (NAM) considers the friendly attitude toward environment is a form of altruism where an individual give up his/her personal benefit for the collective benefit such as environment (Schwart, 1977; Schwartz & Howard, 1981). The altruist behavior is identified by personal norms including personal experience and ethical duties. Behaviors fitting personal norms will lead to the feeling of pride, in contrary, bad behaviors lead to the feeling of guilt. The other two factors influencing behavioral intention are awareness of responsibility and awareness of consequences. The NAM model is shown in Figure 3.6.
Perceived Usefulness External
Variables
Perceived Ease of Use
Attitude toward
Using
Behavioral Intention to
Use
Actual System Use
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Figure 2.5: Norm Activation Model (Schwart, 1977; Schwartz & Howard, 1981)
Some researchers combined the TPB model and the NAM model with the focus on personal norms (Parker, Manstead, và Stradling, 1995). Personal norms in the combined model helped explaining many environmental behaviors such as the use of energy saving bulb or energy saving cars (Harland et al., 1999; Abrahamse, 2009).
2.3.7. United Theory of Acceptance and Use of Technology
The United Theory of Acceptance and Use of Technology (UTAUT) is used to explain the intention and the behavior of using information system. The UTAUT model is shown in Figure 3.7.
Personal Norms
Awareness of Responsibility
Awareness of Consequences
Behavioral Intention
Actual Intention
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Figure 2.6: United Theory of Acceptance and Use of Technology (UTAUT) Source: Venkatesh et al. (2003)
Within the UTAUT model, there are four factors including performance expectancy, effort expectancy, social influence and facilitating conditions that directly influence intention and behavior. Gender, age, experience and voluntaries are factors that indirectly influence intention and behavior through performance expectancy, effort expectancy, social influence and facilitating conditions. The UTAUT model is the combination of several models and theories such as TRA, TAM, and TPB. Researches showed that the UTAUT model can explain 70% of the differences in usage intention.