Professional Documents
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ISSN 2156-7506
VOLUME 3
NUMBER 5
May, 2012
International Journal of
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VOLUME 3, NUMBER 5
May, 2012
ABSTRACT
The research study carried to examine the relationship between Islamic Work
Ethics and job satisfaction among the nursing staff in healthcare sector of
Pakistan. The sample for this was 80 nurses working in ten private hospitals
with different age group, experience and educational level. The empirical
finding offers the evidence of a direct, positive and significant relationship
between Islamic work ethics and job satisfaction. The implication, limitation
and future research area in the study also described.
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.6-12
Academy of Knowledge Process
Ethics is the study of right and wrong choice made by a person. Ethics can be defined as the
set of moral values that make a sense between the right and wrong deeds (Haroon &
Fakhar,2011). Unethical behaviors in work setting lead the failure of corporations and the
great anxiety of the general public. Since Max Weber's Treatise on the Protestant ethic, the
issue of productivity and economic development and their relation to religious beliefs have
attained ever increasing popularity. According Weber's school of thought and his followers
(i.e. Furnham, 1982, Furnham and Rajamanickam, 1992) concentrated on protestant workethics. In Islam,
the duty of every Muslim is to obey value system of The Holy Book Quran and Sunnah (The saying and
acts of The Prophet Muhammad (S.A.W.W). People groomed through value system of Quran and Sunnah
exhibit these qualities in their personal and professional lives. Islamic value based system provides
comprehensive pattern of management which protect all stakeholders of the society. Islamic value based
system (IVBS) focuses moral development of human beings, thereby making sure that people follow the
rule of law through their own will, not through fear or force. IVBS stipulates tested principles of value
building among members of organization. Umar (R.A) would say: Seek Adab, and then learn
knowledge. The Islamic principle is based on individual enterprise in business and likewise individuals
reward. It is essentially based on promoting the humanity while upholding Gods orders. Islam firmly
forbids any favoritism in business relationships, between
people based on their religion or gender.
There is no basic clash between good business practice and profit making in Islam. According to Islam
profit is the secondary judgment to measure efficiency. Islam gives priority to do business under some
rules and there must be some code of ethics for business activities, some of Business Ethics are Trust,
Justice, Honesty, Mutual respect, Faith, Truth, Tolerance, Forgiveness, and Obligation. These are all
essentials to lead the Ethics.
(Quran 45-13): and He has subjected to you, as from Him, all that is in the heavens
and on earth: behold, in that are Signs indeed for those who reflect.
(Quran 6:164): It is He who hath made you (His) agents, inheritors of the earth: He
hath raised you in ranks, some above others: that He may try you in the gifts He hath
given you: for thy Lord is quick in punishment: yet He is indeed Oft-Forgiving, Most
Merciful.
(Quran 11:85): O my people! Give full measure and full weight in justice, and wrong
not people in respect of their goods.
The prophet (S.A.W.W) said: "You will not attain righteousness, unless you give of that which you love.
And said "God loves kindness when you deal with any matter" And also said: "You will not enter
Paradise until you have faith and you will not have faith until you love one another".
The Holy Qur'an and the Sunnah of the Prophets (S.A.W.W) are the major sources of ethical models and
moral codes. There is great shrewdness to carry on the research on Islamic work Ethics for revival of
application of Islamic Work Ethics that brought the Muslims to the golden age in the eight to fourteen the
century as noted by (Ali, 2005).In early 1980's, the Islamic work Ethics got remarkable attention by
Muslim Researchers (See Ali 1988, 1992; yousef, 2000 and 2001; Rahman et al. 2006; Ali and AlKazemi, 2007). For example, yousef (2001) investigated the moderation effect of the Islamic works ethics
on the relationship between the Organizational Behavior and Job satisfaction and found the direct effect
on Islamic Work Ethics on Organizational Commitment & Job Stress. Rokhman (2010) studied the effect
of Islamic Work Ethics on Job satisfaction, OC and turn over intension. But they were not tested the
relationship by one to one variable; without taking the effect of other variables.
Pakistan is the 3rd largest Muslim country in the world, situated on important strategic location. It gained
the attention of the world community during the war against Soviet Union during its occupation on
Afghanistan. Since then many multinational organizations rushed in, after it the events of 9/11 in 2001
and the start of war against terror in this region, and in 2005 the earthquake of October 8, again hide this
part of world. All these events opened up the new avenues of opportunities for public, private, profit and
nonprofit sector organizations.
In last decade there is also the rapid development has been seen the economy especially in telecom,
banking, education, development and other sectors. The private sector promoted the Islamic Banking and
Islamic education institution in the country. Islamic social sector and international Islamic organizations
played a vital role in emerging the Islamic institution and introducing Islamic Work Ethics.In 2010 and
2011, the worst flooding disaster in the history of the region, more floods triggered by heavy rains have
devastated parts of northern and Southern Pakistan. About a 3 million people have been affected and
millions of people have lost their homes in these regions which have still not recovered from last year's
floods. In these disasters the NGOs and civil society played very vital role to rescue the people. On the
other hand demand for hospitals increased and the nursing staff as well. The nursing duty is very hard and
tough. They people look after the patients and fulfill all their duties with patience. These are the duties
and ethics that Islam taught us in Holly Quran and we can see this in Sunnah. These are the ethics and
teachings of The Holy Prophet Muhammad (SAWW)
In Holly Quran Almighty ALLAH says, Not unto the weak nor unto the sick nor unto those who can find
naught to spend is any fault (to be imputed though they stay at home) if they are true to Allah and His
messenger. Not unto the good is there any road (of blame). Allah is Forgiving, Merciful (09:91).
Work ethics are closely related to job satisfaction (Yousef, 2001; Koh and Boo, 2001; Viswesvaran and
Deshpande, 1996; Vitell and Davis, 1990). Understanding the relationship between work ethics and job
satisfaction is essential in determining methods on intervention and strategies for extenuating factors that
reduce satisfaction towards the work conditions (Yousef, 2000). Robbins (2005) described job
satisfaction as a collection of feelings that individual holds towards his or her job. This means that an
employee who has a high level of job satisfaction will hold positive feeling towards job and vice versa
and will give its best in work. Typically, job satisfaction is a persons evaluation of the overall quality of
his or her present job. The evaluation measures may include either an effective orientation towards ones
job or job position or an attitude one holds about the job (Spector, 1997).
Job satisfaction is defined as a enjoyable emotional state resulting from the judgment of ones job; an
sentimental response to ones job; and an approach towards ones job. Weiss (2002) has argued that job
satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive
evaluation which are affect (emotion), beliefs and behaviors. According to this definition we form
different attitudes towards our job, which is effected by our feelings, beliefs and behaviors.
Job satisfaction describes that how an individual is motivated towards his/her job. The satisfied people are
happy with their jobs. Job satisfaction is not same as the motivation and aptitude but it is linked with it.
Job design also aims to enhance job satisfaction and performance. Along with the motivational aspects,
there are some influences which effect the satisfaction; the management style and culture, employee
involvement, empowerment and autonomous work position. In other words Job satisfaction is a very
important attribute which is frequently measured by organizations.It is important to note that the leading
features of the IWE are contained in all Islamic schools of thought, when we apply Islamic work ethics
that are driven from Holy Quran and Sunnah, the employee performs there jobs in a better way and the
efficiency of employees are enhanced. IWE are behaviors as well as techniques to do the best out of job.
While we are working under the Islamic code of ethics, the joy or some sought of motivation that comes
from inside an individual, they look better and they are seemed satisfied. Therefore, base on previous
research, we formulated the following relationship between IWE and Job Satisfaction in healthcare sector
of Pakistan.
Figure: 1 Relationship between Islamic work ethics and job satisfaction
Islamic Work
Ethics
(IWE)
Job
Satisfaction
Islamic Work Ethics is taken as an independent variable, which has numerous items, like; laziness is a
vice, dedication to work, justice and generosity etc. This IWE has the positive and strong relationship
with Job Satisfaction and Job Satisfaction is serving as a dependent Variable. Base on Literature Review
and model to following hypothesis has been generated for this study.
H 1: There is positive & strong relationship between Islamic work Ethics and job satisfaction
2. METHODOLOGY
2.1 Sampling & sample size
The research was conducted in healthcare sector of Pakistan. The ten private hospitals were selected for
this research. The study used self-administered questioners as because health care sector is care public
service provider the data collection technique. Of the eighty questioners that were distributed, seventy one
were returned (response rate 80 percent), but only sixty nine were complete and can be used in further
analysis. Table 1 below provides a demographic summary of the respondents in the study.
Table :1 Demographic Characteristics of the Sample
Characteristics
Gender
Female
Total
Education
College
Graduate
Total
Age
25 years or less
26-30 years
31-35 years
36-40 years
Total
Length of employment
2-4 years
5-7 years
8-10 years
11-above
Total
Marital status
Single
Married
Total
Frequency
Percentage
80
80
100
100
35
45
80
44
56
100
24
27
23
06
80
30
33
29
08
100
22
29
20
09
80
28
36
25
11
100
6
74
80
8
92
100
studies which are conducted in above mentioned countries. 0.85 was the value of cronebachs alpha for
this five-point scale that was employed ranging from 1 (strongly disagree) to 5 (strongly agree).
A 3 item scale was used to measure Job satisfaction prepared by Dubinsky and Harley (1986). There is an
example for Job Satisfaction scale generally speaking, I am satisfied with this job. A five-point scale is
used to rating from 1 (strongly disagree) to 5 (strongly agree). The coefficient alpha value of this scale
was 0.89.
Variables
Islamic Work Ethics (IWE)
Means
SD
0.38*
4.27
0.58
3.77
0.57
Job Satisfaction
2
*p<.01
**p<.05
Variables
Dependent Variable
Job Satisfaction
Note: *p<0.01, **p<0.05
Adj R2
R2 Change
F Change
Sig
.382
0.117
0.135
7.081
0.754**
0.012
10
Davis, 1990), which confirmed the positive effect of work ethics on job satisfaction. According to results
found in this study, the respondents would be more satisfied with their job that strongly supports IWE.
11
Rahman, N.M., Muhamad, N. and Othman, A.S. (2006) The Relationship between Islamic Work Ethics
and Organizational Commitment: A Case Analysis, Malaysian Management Review, Vol. 41
No.1.
Rokhman, W. (2010). The Effect of Islamic Work Ethics on Work Outcomes. Electronic Journal of
Business Ethics and Organization Studies , 15 (1), 21-27.
Spector, P. (1997), Job Satisfaction: Application, Assessment, Cause and Consequences. Sage
Publications, London.
Viswesvaran, C. and Deshpande, S. P. (1996) Ethics, success, and job satisfaction: A test of dissonance
theory in India, Journal of Business Ethics, Vol. 15, pp. 1065-1069.
Vitell, S.J. and Davis, D.L. (1990) The relationship between ethics and Job satisfaction: an Empirical
Investigation, Journal of Business Ethics, Vol. 9, pp. 489-494.
Weiss, H. M. (2002). Deconstructing job satisfaction: separating evaluations, beliefs and affective
experiences. Human Resource Management Review, 12, 173-194
Yousef, D.A. (2000) Organizational commitment as a mediator of the relationship between Islamic work
ethic and attitudes toward organizational change, Human Relations, Vol. 53 No. 4, pp. 513-537.
Yousef, D.A. (2001) Islamic work ethic - A moderator between organizational commitment and job
satisfaction in a cross-cultural context, Personnel Review, Vol. 30 No.2, pp. 152-165.
12
ABSTARCT
This paper presents an analysis of the issues related with stickiness to a
brand or go for a brand switching after the advertisement. Advertisement
leads to many people being overwhelmed by the endless need to decide
between competing demands on their attention; this is known as the choice
overload. People cannot just choose to ignore Television advertising,
because advertisers use many methods to get their message across by
targeting peoples unconscious thoughts ads are a form of brainwashing that
take away people's freedoms to make choices. This research paper contains a
public survey study of professionals and students about Television
advertising playing with peoples mind to get what they want from viewers
or they are just trying to promote their products. Our study shows the effect
of TV advertisement on children and how professionals react to this matter.
Keywords: Affects of television advertising, Advertisement Impacts, Brand
Switching, Brand Stickiness
1. INTRODUCTION
Fast pace changes in todays world has given rise to many emerging trends in different fields.
People are more concerned and aware about the facts and figures of what they buy, what they
use and what they prefer to be assoiated with. They want to know about the insight and
background of the different products that they come in contact with in their daily lives. Its not
easy rather possible now to keep the consumers in confusion or in the blurry image regarding
what they purchase. Initially, brand loyalty was something that most of the firms used to
enjoy, but today the changing patterns have certainly take over the markets with a term called
Marketing.
Marketing is the set of human activities directed at facilitating and consummating
exchanges. (Philip Kotler) According to The Chartered Institute of Marketing(CIM):
Marketing is the management process that identifies, anticipates and satisfies consumer
requirements profitably. These definitions show that the marketing of different products is
being done to meet the needs and wants of consumers and at the same maintain profitable
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.13-24
Academy of Knowledge Process
13
relationships with them, i.e, capturing value in return from them. So, there are two broad categories for
which the companies or firms work for. One is that they market their product to such an extent that it
becomes the top priority of the majority of customers,i.e, they want to attract as many people toward their
product/service as good enough they can. The second thing that different companies do is that they do not
want to lose their customers. It is like their most valuable asset. Retaining your customers refer to Brand
Loyalty.
The market in Pakistan is also targeting day to day advertisement. The competition has grown to its
greatest extent and the companies are busy in the activity of capturing peoples minds. This paper covers
this broader concept by approaching it in a narrower way. The focus is particularly on Shampoos. The
response that people pay towards shampoos advertisements, either on television or while driving where
they encounter with bill boards and banners. It has been seen that the number of bill boards are increasing
every other day and they have become so common like they were never before.
If we talk about particularly Karachi in Pakistan, being the largest and populous city, the companies try to
market and target their customers here to a larger extent. Compared to any other city of the country
Karachi holds the largest number of these bill boards on the roadside. According to one study it has been
proved to be one of the reasons of increased traffic accidents. But the point discussed in the paper is how
people respond to those ads, how they change their perceptions and do they actually change their minds
and attitudes towards buying a particular product? The paper evaluates the views of both men and women
regarding their shampoo choice, the factors that affect the change in what they choose, the most
preferable brands and what cause them to be loyal to the brand they are already using. The research is
being carried out viewing on specifically the marketing strategies adopted by different companies.
Companies go for marketing to be fully intact in the competition, to be competent towards attracting their
customer line and increasing their number. It throws light on the fact that the marketing factor is dominant
over the loyalty aspect that is why firms are constantly putting their efforts and a large amount of their
finance to market the products for their targeted customers. Focusing on shampoos particularly, we can
say this that a lot of types and characteristics are now associated with them in order to fulfill the
customers specifications. There are various sort of problems identified related to hair, including hair fall,
dandruff, split ends, black shine, long hair, strong hair and many more. This paper presents an overview
and analysis of all these issues and tries to find out the answer of whether or not sticking to a brand or go
for a product after the marketing?
2. LITERATURE REVIEW
The core purpose of the study was to highlight the major purpose for television advertisements i.e. are
they promoting their products ethically or they are using subliminal messages to brainwash their
customers? The researcher studied the topic thoroughly and found that in countries other than Pakistan
this topic has been discussed continuously but in Pakistan advertising and its related topics did not
interested the researchers. Subliminal messages by definition are a form of brainwashing by attacking the
mind on a subconscious level. .
Brad Paul stated ,we are unaware of how frequently we are brainwashed by the television advertisings. He
said advertisers work day and night to handle skillfully our behaviors so that people should continuously
watch their ads and as a result buy their products. They fascinate our abilities to perceive things with
different images and scenes and choose tag lines and words which will hit viewers emotionally and will
turn their behavior to the direction they want-Buy their product.
Augustin (2006) Quoted I progressively stopped watching television when I started figuring out how
detrimental it was for my health. Television advertisements have intense control on our psyche
14
according to him if advertisements did not affect our brains then why the companies spend millions on
advertising their products thus advertisements do brainwash the viewers and thats the reason they make
every possible effort to force people to watch their ads they have taken a strong hold on our daily life so
the next time we buy the product we should ask ourselves Why am I choosing this product? And the
answer would remind us of its ad Apart from all this it is interesting to see advertisements and find the
hidden messages in them as in our world its is extremely difficult to avoid advertisements but by finding
techniques and hidden messages behind the ads we can save ourselves from the brainwashing techniques
of big corporations. Advertisers know well that they can easily manage mass audiences through their ads
and they make every effort to make us watch their ad they have taken a firm hold on our daily lives.
Claudia Miclaus urged that television advertisements force people to think they are in great need of the
product. TV is by far the most widely used medium for commercializing the products and we cannot even
imagine how high the prices are charged by TV networks for putting ads on-air during publics most
favorite programs. Advertising is more than passing information to viewers its a mean to induce people
to buy the particular product and to accomplish this purpose they use different psychological ingredients
and people end up buying the things which they actually do not really need. Most ads have different and
attractive graphics and jingles which symbolizes their products and people get attracted to them but we
should not fall in their traps of buying and everlasting list of items which in actual we do not need.
Mark Shepard, started his article with a very good question that Have you ever suddenly felt carving
about a Big Mac or dying to buy a BMV car or just fought with your parents to have those special tooth
whitening strips so that youll look more attractive? And seconds before you watch the ad, you werent
even thinking about it? An effective ad can give us an idea as how to get rid of the pain we are already in
and what corrective action or decision we can take in such a situation so, he concluded his views that TV
advertising, is not brainwashing. Ads can be compelling. They can be forceful. Their jingles at times get
stuck in your mind and play over and over again. They may be hugely influential. They may not always
be useful for us but you can always hit the off button so it is not brainwashing.
Sean Poulter states that Youngsters are being brainwashed into demanding foods high in fat, salt and
sugar, concludes an official report. The research has been carried out by Food Standard Agency to know
the reason of overweight children and the results showed a straight linkage between overweight children
and the strong effect of TV advertising around 8.5 percent of 6 year olds are already considered obese,
while the figure rises to 15 percent of 15-year-olds.According to him proof were found that TV
advertisement modify what youngsters think is good for them.
According to Intrepid Learnings article if we will watch TV advertisements with total focus of not to
make them take place in our mind then too we will be flooded with too many products advertisements in
our brains. To an advertiser we are a clear target. We are not people but consumers for them and a part of
their thoroughly studied and segmented target market and that the reason advertisements work. We
should start watching things from their perspective and once we do that automatically we will start
watching fewer advertisements and once we are not exposed to advertisements they cannot harm us.
Harris Murray found out that traditionally TV advertising is king of advertising media as its impact on
people is wide-spread but along with that it is also considered as king of cost media because of its
expensiveness. Animated advertisements are very popular under TV ads for example (Kellogg's) and they
are long running (series of advertisements can be done). Creative television advertisements can easily
attract people and makes them to buy products. This is very advantageous for small businesses. On the
other hand these ads are short so they do not provide complete information of the product and also at
times TV advertisement is messed up i.e. do not show relevant information about a product. If its
presented in flawless way it hits the target and forces viewers to react the way advertiser want them to.
15
George Monbiot (2011) Claims that we know who our enemies are: big business, politicians who only
exist to satisfy themselves but somehow the sector which bounds all these together gets overlooked which
is Advertising industry. This industry assert to improve our choice but gives us a very little choice of
whether we see it and even more less choice about whether we should respond? Most advertising appeals
to extrinsic values. It doesn't matter what the product is: by celebrating image, beauty, wealth, power and
status, it helps create an environment that shifts our value system. Some ads promote intrinsic values,
associating their products with family life and strong communities. But they also create the impression
that these values can be purchased, which lowers their dignity.
Vivian (2010) said it is a very wide field some advertisements could be important for us and some on the
other hand could be humorous where as some could be dangerous for children because children perceive
things different than adults, after just one exposure to a commercial, children can recall the ad's content
and have a desire for the product. The question arises here is that it is trustworthy subject for people or its
just brainwashing? Advertising effect our logical thinking abilities as we are bombarded by hundreds of
advertisements daily and each one of it tries to affect our sensation.
3.
RESEARCH METHODOLOGY
In the primary research, the sample frame has been set worldwide. We found research and studies
conducted internationally. International researchers tried to fetch the information from all the users that
could respond them according to their particular shampoo brands and specifically conditioners and hair
sprays as well.
Our sample design includes two dimensions/phases:
16
4. ANALYSIS
4.1 The Respondents ratio(Male/Female)
The desired respondents were to be both the male and female college/university students aging from 18 to
30. We wanted an equal ratio of both to respond towards our questionnaire which was specially designed
for the mental psychy of young people. Fortunately, we had a good response and an equal contribution of
the sample. There was no non-response error and the study was completed successfully.
4.2 Response towards Brand Loyalty
There was a 49/49 ratio of being moderately loyal and keep switching category while only 2%
responded that they were hard core brand loyal. Usually, the youngsters are more likely to be brand
loyal as they look more into the brands details, advertising stuff, influenced by marketing strategies by
the firms but when it comes specifically to shampoos they were not very much into the brand name and
were using the shampoo irrespective of its brand.
4.3 Reasons of not being Loyal to a Shampoo Brand
Shampoos are to clean up the soil and dirt from the hair so its not a big deal what brand is there to do that
job. Sticking to a brand just involves the degree and tendency of a shampoo to suit your hair or working
effectively for your hair care. When you are concerned with the hair care and other hair problems such as
hair fall, dandruff, long hair, shine in hair, curly hair, straight hair, oily hair and sheild from sun or hair
color damage. So, different customers have different needs that are catered by different shampoo brands.
Some fulfill the desired needs and some do not do so as to what they say. Consumers keep on trying
different shampoos to test what is the best solution to their hair, which takes quite a long deal of time.
Therefore, it can be concluded that if you are not Brand loyal (particularly for a shampoo), usually it is
because of the dissatisfaction with your current brand.
4.4 Influence of Marketing/Advertising
The firms are taking many measures to promote their products in the clustered environment of todays
advertisement. Likewise, shampoo brands are also taking their part in the race. They also are spending
much of their finance towards advertising. But in case of shampoos people do not change their minds
seeing the ads and influenced by other marketing strategies. They remain brand loyal only if the shampoo
is doing good enough for them and is satisfying them to a large extent. If they saw an effective TV
commercial of their competitor brand 60-65% of the people response was not reacting to it but just to
appreciate it.
There is also a certain percentage that does not even react to any of the advertising effort by different
firms. They responded to the option that you will do nothing.
4.5 Determining a final Brand for Shampoo
Since its evident from the study that it is not the marketing strategy or the advertisement appeal that
influence the shampoo brand, rather the most important factor in determining a final brand for shampoo is
the Past Experience. Like said before it is based on how a shampoo is being proved to be good enough
for a consumer that he/she uses it and it depends on when a consumer keeps on using or experiencing a
particular shampoo. Only then they can decide whether the past experience was good?
17
D: No Shampoo
Brand Loyalty
70%
B: Influenced
by Marketing
Efforts 5%
C: Influenced by Past
Experience 15%
Source: Computed
Source: Calculated
18
Source: Calculated
Source: Calculated
19
Source : Calculated
4.9 Viewers ratio of recalling advertisements
Next respondents were surveyed about the behaviors they tend to show when they watch a certain ad
again and again. They were given four ratings from strongly agree ,agree, undecided to strongly disagree.
Majority Students strongly agree that they have more chances of recalling a ad when they are exposed to
it more where as professionals agree that they recall a certain ad when they watch it again and again.
Figure 6 : Showing Professionals analysis
Source: Calculated
20
Source : Calculated
4.10 Advertisement Brainwash Viewers
The most important point was then raised to the respondents that television advertisement is just doing
their products promotion or they are using viewers for sale of their products through brainwashing them.
68% of Professionals are very clear that TV advertisement brainwash viewers where as students are
confused about the fact that whether TV ads brainwash them or not as 52% agreed that they are
brainwashed by ads.
Figure 8 : Showing Professionals analysis
21
Source : Calculated
5. FINDINGS
In Pakistan advertisement does not have broader horizon. Advertisers don't have the good of society in
mind when they do their work they only care about making profit. This means that they regularly
advertise unhealthy or harmful things. Fast food ads are a large part of the reason so many children are
obese. The media and celebrity endorsement do much more harm, by making fun of unattractive or
overweight people, and glorifying models that are often dangerously thin some of the respondents even
added extra views that the ads which have celebrities in it are often disliked by them in spite of the fact
that the ad have good content.
Also products which are related to age or skin their ads are viewed by viewers in great interest but they do
not purchase the product because of the side effects attached to it. Ads have always won viewers through
their emotional appeal and it will continue to do so as people in Pakistan are more emotional.
The basic thing to enlighten is that advertisers do not consider society values in their ads and often use
distorting visuals to brainwash their viewers so they should go for their products.
Trend that people use shampoo on the basis of their past experience instead of the marketing efforts by
the different firms is more of attention in Karachi, Pakistan. The young people aging from 18 to 30,
majority holds the belief that it doesnt really matter how good or strong their brand name is, how
effective and fast their competitors are doing or how influential is the celebrity chosen by their own
and/or the competitor brand advertisement. Theyd stick to the current shampoo brand if it is satisfying
their needs, and if some problem arises they would try to some other shampoo seeing to its service and
solution.
If there is a change in their shampoo choice it is not because of the strong advertising threat by the
competitor but may be due to the dissatisfaction with their current brand. Most of the people do not even
think twice before changing their shampoo. So, it strongly refers to the result that shampoo is not a
product for which people would be loyal and it is hard to attract and even keep up your current Shampoo
Brand customers.
22
6. CONCLUSIONS
The brand loyalty demands the participation of either highly specialty products or the personal care
products. Specialty products are products not purchased on a regular basis and consumers do extensive
research before purchasing these items. Specialty products are typically expensive, are unique in nature
meaning not easily substituted. So, it shows that people would like to stick to one brand for such products,
because it would require them to spend a handsome amount of their income for that. There are broad
categories of the specialty products, e.g, diamonds, antiques, furniture, jewelry, automobiles etc. While on
the other hand, personal care products are those used for beautification and in personal hygiene. It is
obvious that people would not prefer to experiment on their physical appearance and personal hygiene, it
deals with great sense of responsibility and commitment on the companies hands as well as on the
consumers. They look deeply into the Brands details and are more curious to know about whose better in
the industry. Therefore, marketing plays a vital role in such products and consumers are being influenced
by such efforts of the firm.
Sometimes, people do think that the celebrities coming in certain advertisements are reliable and they
have some credibility. In that case celebrities like to be associated with such brands that provide authentic
information in their advertisements and the firms want to be really good in all the services and ingredients
that they are giving to their customers.
In case of shampoos, they are one of the personal care products but according to our study they do not
require brand loyalty to a large extent. Because shampoos have nothing to do with the authentic and
reliable ingredients for the customers. More or less, all of the shampoo companies provide with the same
benefits and similar results and effects. They all serve the same purpose, i.e, cleaning up your hair from
soil and dirt. People respond almost very ineffectively towards the advertising campaign of the shampoo
brands but still there is a lot of focus given by the firms in this regard only to remain in the minds of
customers in the clusters of other brands. So that their brand will be the reminder call every time they go
to purchase shampoo. So, the basic idea is to grab the attention of people all the time. The use of celebrity
endorsement is also the same. The young sample frame responded negatively towards the brand loyalty of
shampoos. They prefer any of the brands that suits best to their hair, and the change in that choice is
mostly because of the dissatisfaction with their current brand. And if they stick to any particular brand,
the reason behind is the past experience of the customers, i.e, they are satisfied with their current
Shampoo Brand.
TV Advertising has a positive role to play in modern society, helping us choose between competing
goods. Many adverts are drawing our attention to products with new features, for example more powerful
computers, telephones which are also cameras and music players, or foods with added vitamins. Other ads
try to compete on price, helping us seek out the cheapest or best value products. Ads which use very sly
methods like subliminal images (images which are shown so quickly the viewer doesn't consciously
realize they saw them) are already banned. The other forms of advertising are just companies being
creative. There is no difference from supermarkets being painted bright colors to make their food seem
more appetizing or even people wearing make-up to improve their image. People make unconscious
judgments all the time and we frequently try to influence these choices by the way we present ourselves.
This isn't brainwashing, so neither is advertising.
Many TV ads do more than just advertising products. Some try to make people feel inferior if they don't
have the product, or if they have something which the product would change. Perceptions of beauty and
fashion in particular have been terribly distorted. Many young people have low-self esteem, and lead
unhealthy lifestyles because they feel they should be thinner and more attractive like the models they see
in ads. This leads to serious problems like eating-disorders and self-harm.TV Advertising gives the
23
impression, especially to children, that they can and should have everything they want. This makes people
too interested in material things. People are becoming more selfish and obsessed with their possessions,
and losing their values of patience, hard work, moderation and the importance of non-material things like
family and friends. This harms their relationships and their personal development, which has serious
effects for society as a whole.
REFERENCES
Paul, Brad (2004). How We Are Brainwashed by the Media (And How to Avoid Being a Victim).
Retrived from http://www.guruhabits.com/brainwashed.html
Miclaus, Claudia (2009). "The Brain-Washing Power of Commercials."
http://www.buzzle.com/articles/the-brain-washing-power-of-commercials.html
Vivian
(2010).
Is
Advertising
Brainstorming?.
http://vivianast.wordpress.com/2010/05/02/is-advertising-brainwashing/
Retrived
Retrived
from
from
Augustin (2006). Forcing TV viewers to watch advertising... and more... Retrived from
http://www.wechange.org/b/augustin/television_advertising_brainwashing
Mark, Shepard (2009). The Difference Between Being Influenced and Brainwashed. Retrived from
http://www.persuasive.net/blog/the-difference-between-being-influenced-and-brainwashed/#
George, Monbiot (2011). Advertising is a poison that demeans even love and we're hooked on it.
Retrived from http://www.guardian.co.uk/commentisfree/2011/oct/24/advertising-poison-hooked
Sean,
Poulter
(2010).
TV
ads
lead
to
junk
food
diets.
Retrived
http://www.dailymail.co.uk/health/article-197596/TV-ads-lead-junk-food-diets.html
from
Harris,
from
24
ABSTRACT
The main purpose of the paper is to examine the relationship between
religiosity and the adoption of Islamic banking services. At the same
time the study attempts to inspect the willingness of the Moroccan
customers to adopt Islamic banking services. A total of 300
questionnaires were randomly distributed among Moroccan banking
customers, out of which, 252 were returned and usable. T-test and linear
regression analyses were then employed to analyse the data, whereby the
dependent variable is adoption of Islamic banking services, and the
independent variable is religiosity. The results indicate that religiosity
has a significant positive influence on the adoption of Islamic banking
services in Morocco. The results also indicate that the Moroccan
customers are willing to adopt Islamic banking services.
Key words: Morocco, Islam, Banking, Linear regression, Consumer
behaviour.
1. INTRODUCTION
The first Islamic bank was established in Egypt in 1963 and was called Mit Ghamr Local Savings Bank.
This was followed by Nasir Social Bank in 1967, which was the first social bank to be established based
on shariah principles (Venardos, 2006). Following these establishments, a number of other Islamic banks
have been set up including IDB (1975), Faisal Islamic Bank (1976), etc.
In the case of Morocco, the governor of Bank Al Maghrib (Moroccan Central Bank) has
signed the recommendation permitting the banks to market and launch their Halal
products on 17th of September 2007. According to Elmostali (2009), the delay by Bank
Al Maghrib to officially launch these alternative products is justified by the fact that
financing companies should have agreed on the basic rules of offer which include
denominations, juristic rules, etc. The authors added that the delay can be also explained
by the fact that the Moroccan authorities want to adapt the Moroccan environment in
order to meet the expectations and desires of the Gulf investors as well as the increasing
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.25-31
Academy of Knowledge Process
25
demand on the Islamic banking services. Few years later, specifically, in August 2010, the AWB group
opened a new subsidiary named Dar Assafaa offering Islamic banking services only such as Murabaha,
Musharakah and Ijarah. Nevertheless, the Moroccan banking sector is dominated by eight main banks that
are conventional in nature. These are Attijariwafa Bank (AWB), Banque Populaire du Maroc (BPM),
Banque Marocaine du Commerce Exterieur (BMCE), Banque Marocaine du Commerce et de lIndustrie
(BMCI), Societe Generale Maroc (SGM), Credit Agricole du Maroc (CAM), Credit Du Maroc (CDM),
and Credit Immobilier et Hotelier (CIH). In a similar context, it is crucial to understand the banking
customers behaviour, particularly, the position of religiosity vis-a-vis the adoption of Islamic banking
services in a country with 99 per cent Muslim population.
In the previous studies, the adoption of Islamic banking services was found to be a function of several
factors, one of which is the religious motivation (Metwally, 1996; Edris, 1997; Gerrard and Cunningham,
1997; Metawa and Almossawi, 1998; Al-Sultan, 1999; Okumus, 2005). Nevertheless, the studies on the
influence of the religiosity on the adoption of Islamic banking services are still scarce (Rehman and
Shabbir, 2010), especially in the case of Morocco, whereby there is no existing study that fills this gap.
This study is crucial in light of the current criticisms of the non-compliance of the existing Islamic banks
with the shariah law (Abdullah and Dusuki, 2004; Kamali, 2007; Dusuki and Abozaid, 2007; Meera and
Larbani, 2009; Meera and Dzuljastri, 2009; Sairally, 2002; Siddiqi, 2007; Rosly, 2010). Moreover, the
study focuses solely on religiosity due to the new wave of secularism that is slowly invading the North
African region recently.
Thus, the current study attempts to study the influence of religiosity on the adoption of Islamic banking
services, by using linear regression analysis, with religiosity as the independent variable and the adoption
as the dependent variable. In other words, the current study attempts to answer the following two
questions: Does religiosity have any influence on the adoption of Islamic banking services in Morocco?
Are the Moroccan customers willing to adopt Islamic banking services? The current study uses a multi
dimensional measurement of religiosity comprised of five dimensions based on the index established by
Rehman and Shabbir (2010). Following this brief introduction, the next section will present an overview
on the previous studies on new products adoption as well as adoption of Islamic banking services. The
methodology employed in this study, as well as the results and discussion will then be presented
sequentially.
2. LITERATURE REVIEW
Intuitively, Islamic banking services are considered relatively new compared to the long existing
conventional banking services. According to Rehman and Shabbir (2010), the adoption of new products
by customers is affected by their perception of their features as well as some external factors. Previous
studies have shown that a new product is more likely to be adopted if it has a higher relative advantage
compared to the existing ones, if it is compatible with the values, experiences and needs of the customers,
and if it is easier to use compared to the previous products (Rogers, 1983). Furthermore, awareness or
knowledge about a given product has also been identified as one of the factors that lead the customers to
opt or reject a given new product (Lai, 1991).
The previous studies have also found that the adoption of a new product is a function of three kinds of
beliefs. The first is the behavioural belief, which refers to the subjective probability that the behaviour
will achieve expected outcomes positively or negatively. Second is subjective norm which is determined
by the sum of normative beliefs which reflects the perceived behavioural expectation or opinions of
important referents individuals or groups. And the third one is perceived behavioural control which is
determined by the sum of accessible control beliefs which refers to the perceived presence of requisite
resources and opportunities to perform a given behaviour (Ajzen, 1991).
26
In the context of Islamic banking, previous studies have shown that the primary factors that lead the
customers to opt for Islamic banks include fast and efficient service (Haron, Ahmad and Planisek, 1994),
banks reputation (Naser, Jamal and Al-Khatib, 1999), economic factors (Ahmad and Haron, 2002).
These above studies found that the religious motivation was not one of the primary factors that influence
the customers product adoption decision. However, Hegazy (1995) found that most of the Islamic banks
customers in Egypt chose Islamic banks in order for them to remain complied with the Islamic law. These
results are similar to those of Metwally (1996), Edris (1997), Gerrard and Cunningham (1997), Metawa
and Almossawi (1998), Al-Sultan (1999), as well as Okumus (2005).
Thus, in some contexts, religiosity was found to be one of the important factors in the customers
selection of Islamic banking products. In the context of Morocco, this area still needs to be explored,
given that none of the above studies have examined the Moroccan customers willingness to adopt
Islamic banking products and the factors that may lead to it, specifically the religious factor. Even though
the factors that lead to adoption of Islamic banking services maybe several, the current study focuses
mainly and solely on religiosity because of the recent wave of secularism that is spreading in the North
African region, especially with the Arab spring movements, and also because of the negligence of
religiosity in the above attitudinal models.
The measurement of religiosity, which is the independent variable, is based on the scale established by
Rehman and Shabbir (2010). The authors define religiosity based on five dimensions, namely,
ideological, ritualistic, intellectual, consequential and experimental. The ideological dimensions refer to
the overall beliefs associated with a religion, for instance, beliefs about God, Prophet, fate, etc. Ritualistic
dimensions are determined by the actions prescribed by religion such as prayer, fasting, pilgrimage, etc.
Intellectual dimensions refer to an individuals knowledge about religion. Consequential dimensions refer
to the importance of religion while experimental dimensions describe the practicality of the religion
(p.65). It is noteworthy that religiosity in the current study refers to the religion of Islam, given that 99 per
cent of the Moroccan population are Muslims, while the remaining one per cent is comprised of Jewish
and Christian.
Based on the above discussion, the following hypotheses have been developed and both constitute the
main hypotheses in the study:
H1: Religiosity has a positive influence on the adoption of Islamic banking services in Morocco.
H2O: The Moroccan customers are indifferent to adopt Islamic banking services (i.e. mean=3).
3. RESEARCH METHODOLOGY
In line with the above objective, the data for this study was collected using self administered
questionnaire. The questionnaire was distributed randomly to the bank customers in the cities of Rabat,
Casablanca, Marrakech and Agadir that are the four main cities in Morocco. The banks covered include
Banque Marocaine du Commerce Extrieur (BMCE), Attijari wafabank (AWB), Banque Marocaine du
Commerce et de lIndustrie (BMCI), as well as Banque Populaire (BP). The respondents were approached
at the corresponding branches. T-test and linear regression analyses were applied to analyse the data,
using SPSS18.
The questionnaire contains two main sections. The first one is designed to collect information about the
religiosity and adoption willingness constructs (Rehman and Shabbir, 2010), the items under this section
are measured using five points likert scale (1=strongly disagree and 5=strongly agree). The second part is
meant to collect information about the demographic variables of the respondents.
27
The questionnaire was made in English and was subsequently translated into French and distributed as
such. This is because French is the second language in the country and majority of Moroccan people can
speak French fluently. The translation process was guided by language experts in both French and English
to avoid any kind of biasness. The target sample size in this study is 300 respondents. This sample size is
considered to be sufficient according to Hair, Black, Babin and Anderson (2010) and Field (2000). Out of
the questionnaires distribute, 252 were returned and usable, making a response rate of 84 per cent, which
is acceptable compared to the previous studies (Gerrard and Cunningham, 1997; Metawa and Almossawi,
1998; Naser et al., 1999).
The results indicate that out of these 252 respondents, around 58 per cent of the respondents are male,
while 42 per cent of them are female. Furthermore, the age grouping indicates that 39 per cent are
between 31 to 40 years old, 32 per cent are between 41 and 50 years old, and 20 per cent are between 20
to 30 years old, while the remaining 9 per cent are above fifty years old. It is worth mentioning that none
of the respondents was below 20 years, which occurred randomly. With regards to the educational level,
34 per cent are holding a bachelors degree, 17 per cent are holding a higher secondary certificate, 16 per
cent are holding a technician diploma, 15 per cent are holding a baccalaureate, 10 per cent are holding
Masters, and 8 per cent are holding a PhD.
For the employment status, around 42 per cent of the respondents are working in the private sector, 25 per
cent are working in the public sector, and 18 per cent are self employed, while the remaining 15 per cent
are students. Regarding the salary distribution, around 33 per cent of the respondents earn a monthly
salary between 6,001 and 10,000 Moroccan Dirham, 25 per cent gain a salary between 2,000 and 6,000
Moroccan Dirham, 20 per cent have a salary of less than 2,000 Moroccan Dirham, 14 per cent have a
salary between 20,001 and 40,000, while the remaining 8 per cent of the respondents gain a salary
between 10,001 and 20,000 Moroccan Dirham.
4. FINDINGS
4.1. Reliability
An important step in data analysis when using a set of items to measure the studied variables is the
reliability measures. Cronbach alpha is the most widely used objective measure of reliability (Vehkalahti,
2000). Hair et al. (2010) suggest that the Cronbach Alpha should be at least 0.6. This requirement is met,
since the results in Table 1 indicate that all the reliability values are above 0.6, ranging from 0.677 to
0.886.
Table1: Reliability measures
Variables
Reliability
Religiosity
0.886
Ideological dimensions
0.872
Ritualistic dimensions
0.708
Intellectual dimensions
0.677
Consequential dimensions
0.727
Experimental dimensions
0.681
IB adoption
0.735
4.2. Linear regression results
In order to examine the validity of the first hypothesis, initially claiming that religiosity has a positive
influence on the adoption of Islamic banking services in Morocco, linear regression analysis was applied.
The linear regression results in Table 2 below indicate that the model is significant, with the F-test
significance value of 0.0000. Furthermore, R square value was found to be equal to 33.4%, which is
28
significant at alpha equal 0.05. This means that religiosity explains 33.4% of the variation in the adoption
of Islamic banking services in Morocco. Thus, the initial hypothesis is supported.
Based on the results shown in Table 3 below, the correlation equation can be written as follows:
Adoption of Islamic banking services = 1.267 + 0.656 religiosity
Model
Regression
Residual
Total
Sig.
.000
The above results are similar to those of Rehman and Shabbir (2010), who have found that religiosity has
a significant positive influence on the adoption of new products in the case of Pakistan. The results are
also similar to those of Hegazy (1995), Metwally (1996), Edris (1997), Gerrard and Cunningham (1997),
as well as Metawa and Almossawi (1998) who have found that religion is the main factors for the
customers to opt for Islamic rather than conventional banks.
Model
(Constant)
Religion
Table 3: Coefficients
Standardized
Unstandardised Coefficients
Coefficients
B
Std. Error
Beta
1.267
.268
.656
.059
.578
t
4.724
11.193
Sig.
.000
.000
4.3. T-test
In order to test the second hypothesis, claiming that the Moroccan customers are neutral as to the adoption
of Islamic banking services (i.e. mean=3), one sample t-test has been performed to check whether the
mean of the items measuring adoption is significantly different from 3. The results in Table 2, indicate
that the mean is significantly different from 3 for all the adoption items. This means that the Moroccan
customers are not neutral with regards to these statements. Subsequently, hypothesis 2 is rejected. By
referring to the means for the said items in Table 4, it is clear that all of them are above 3, meaning that
the customers are willing to adopt Islamic banking services. And this is in line with the findings of
Rehman and Shabbir (2010).
Items
Int1
Int2
Int3
Int4
Int5
Intention
t
12.638
19.107
17.924
12.638
9.048
15.292
Sig. (2-tailed)
.000
.000
.000
.000
.000
.000
29
6. REFERENCES
Abdullah, N.I. and Dusuki, A.W. (2004). A Critical Appraisal of Al-Ijarah Thumma al-Bay (AITAB)
operation: Issues and Prospects. At the 4th International Islamic Banking and Finance
Conference, Monash University of Malaysia, Kuala Lumpur.
Ahmad, N. and Haron, S. (2002). Perceptions of Malaysian corporate customers towards Islamic banking
products and services. International Journal of Islamic Financial Services, 3(4), 13-29.
Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behavior and Human Decision
Processes, 50, 179-211.
Al-Sultan, W., (1999). Financial Characteristics of Interest-free Banks and Conventional Banks.
Unpublished PhD thesis, University of Wollongong.
Dusuki, A.W., & Abozaid, A. (2007). A Critical Appraisal on The Challenges of Realising Maqasid alShari`ah in Islamic Banking and Finance. IIUM Journal of Economics and Management, 15(2),
143-165.
Edris, T. (1997). Services considered important to business customers and determinants of bank selection
in Kuwait: A segmentation analysis. International Journal of Bank Marketing, 15(4), 126-134.
Elmostali, H. (2009). Les produits alternatifs en mal de dcollage. Unpublished Masters dissertation.
Institut dAdministration des Entreprise Lille.
Field, A. (2000). Discovering Statistics using SPSS for Windows. New Delhi: Sage publications.
Gerrard, P., & Cunningham, J. (1997). Islamic banking: A study in Singapore. International Journal of
Bank Marketing, 15(6), 204-216.
30
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2010). Multivariate data analysis, seventh
edition. Upper saddle river. N. J: Prentice Hall.
Haron, S., Ahmad, N., & Planisek, S. (1994). Bank patronage factors of Muslim and non-Muslim
customers. International Journal of Bank Marketing, 12(1), 32-40.
Hegazy, I.A. (1995). An Empirical Comparative Study between Islamic and Commercial Banks
Selection Criteria in Egypt. International Journal of Contemporary Management, 5(3), 46-61.
Kamali, M.H. (2007). A shariah analysis of issues in Islamic leasing. Journal of King Abdulaziz
University: Islamic economics, 20(1), 3-22.
Lai, A.W. (1991). Consumption situation and product knowledge in the adoption of a new product.
European Journal of Marketing, 25(10), 55-67.
Meera, A.K.M., & Larbani, M. (2009). Ownership effects of fractional reserve banking: an Islamic
perspective. Humanomics, 25(2), 101-116.
Meera, A.K.M., & Dzuljastri, A.R. (2009). Home financing through Musharakah mutanaqisah contracts:
some practical issues. Journal of King Abdulaziz University: Islamic Economics, 22(1), 3-27.
Metawa, S., & Almossawi, M. (1998). Banking behaviour of Islamic bank customers: perspectives and
implications. International Journal of Bank Marketing, 16(7), 299-315.
Metwally, M. (1996). Attitudes of Muslims towards Islamic banks in a dual-banking system. American
Journal of Islamic Finance, 6, 11-17.
Naser, K., Jamal, A., & Al-Khatib, K. (1999). Islamic banking: a study of customer satisfaction and
preference in Jordan. International Journal of Bank Marketing, 17(3), 135-50.
Okumus, S.H. (2005). Interest free banking in Turkey: a study of customer satisfaction and bank selection
criteria. Journal of Economic Cooperation, 26(4), 51-86.
Rehman, A.U., & Shabbir, M.S. (2010). The relationship between religiosity and new product adoption.
Journal of Islamic Marketing, 1(1), 63-69.
Rogers, E. (1983). Diffusion of Innovations. New York: The Free Press.
Rosly, S.A. (2010). Shariah parameters reconsidered. International Journal of Islamic and Middle
Eastern Finance and Management, 3(2), 132-146.
Tabachnick, B.G., & Fidell, L.S. (2001). Using multivariate statistics, fifth edition. Boston: Allyn and
Bacon.
Sairally, B. (2002). Murabahah financing: Some controversial issues. Review of Islamic Economics, 12,
73-86.
Siddiqi, M.N. (2007). Economics of Tawarruq, how its mafasid overwhelm its masalih. At the workshop
on Tawarruq: a methodological issue in shariah compliant finance. London School of
Economics, London, UK.
Vehkalahti, K. (2000). Reliability of measurement scales. The Finnish Statistical Society, Helsinki.
Venardos, A.M. (2006). Islamic banking and finance in south East Asia: its development and future.
Singapore: World Scientific Publishing Co. Pte. Ltd.
31
ABSTRACT
In this study we design and present a new instrument, Cross-Cultural
Orientation Inventory (CCOI), to measure the cross cultural orientation of
a person. We define cross-cultural orientation as the readiness of a person
to interact with, and form a sustainable relationship with a person from a
different culture. We posit that CCOI would be a valid measure of crosscultural orientation of a person, which in turn, would be related to the
cross cultural behavioral competence of that person. We design a
questionnaire to represent CCOI, and assess its reliability and validity
empirically. We discuss our results and the utility of the new measure for
HR practitioners in recruitment and selection processes.
Keywords: Cross-Cultural Orientation, Intercultural Competence, CrossCultural Experience
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.32-48
Academy of Knowledge Process
32
conceptual overlap between cross-cultural competence and interpersonal competence, both of which seem
to emphasize the fundamental ability to show consideration for others needs while also fulfilling ones
own satisfaction and obligations to a reasonable degree (Chen & Starosta, 1996).
Although some measures have been developed to measure the behavioral competence of a person in
cross-cultural settings, there is no consensus in the extant literature about the antecedents of cross-cultural
competence. This study is an attempt to bring more clarity to this field. We believe that a salient
antecedent of cross-cultural behavior is the mindset of a person in a cross-cultural setting. When a person
is well disposed towards a cross-cultural interaction, his responses in a cross-cultural interaction are likely
to be more receptive and positive. On the other hand, if the persons mindset is not suitable for a crosscultural encounter, he or she may not exhibit the desired behavior in the interaction. We use the term
Cross-cultural Orientation (CCO) to describe the mindset of a person that governs his cross-cultural
behavior.
CCO, as conceptualized by us, is a new construct in the field of cross-cultural management. We define
CCO as the readiness of a person to interact with and form a relationship with a person from a different
culture. CCO is conceptualized as having two dimensions; cognitive which refers to the awareness and
knowledge about other cultures, and affective which captures the attitudinal orientation towards other
cultures. In essence, a persons CCO would be a measure of the extent to which a person seems ready to
interact with people from other cultures on a sustainable basis.
Although the extant literature has described a number of other constructs to capture the various facets of
cross-cultural manifestation, these differ from CCO in their nuances. For example, a similar construct is
cross-cultural experience (Olson, 2009) that seeks to represent the degree of interaction a person has with
people from other cultures. Conceivably, each episode of interaction with a person from other culture
builds on prior experience and prepares a person for future interactions. Thus, it is somewhat similar to
CCO but differs from CCO in the sense that its focus is on prior experience. Another construct is
Intercultural competence (Buhrmester, Furman, Wittenberg & Reis, 1988) which refers to the
competence of a person in dealing with people from other cultures. It is a wider construct, which takes
into account the totality of cross-cultural competence of a person in a cross-cultural setting. Thus, it
would seem to partially overlap with CCO but is distinguished from the latter in terms of its focus on the
behavioral skill rather on awareness or attitude.
Since the behavior of a person is primarily governed by his cognitive and affective frame of mind
(Luthans & Davis, 1980), we submit that Cross-cultural orientation, which captures both attitudinal and
affective dimensions of a persons mindset, is likely to be a good predictor of the behavior of a person in
a cross-cultural setting. Carrying this chain of thought further, we posit that the cross-cultural orientation,
in turn, is likely to be affected by the kind of education a person has received, as well as his prior
experience of cross-cultural encounters. We base our logic on the fact that attitudes get formed since
childhood, in which the educative years play a great role. If the instructors in a persons high
school/college exhibit sensitivity towards cross-cultural issues, this is bound to develop a positive attitude
in the student towards culturally different others. Similarly, opportunities for cross-cultural interaction in
school, and participation in multi-cultural events also shape the intercultural attitude of a person. An
equally important role in developing the cross-cultural orientation of a person is played by his crosscultural experiences. While his initial behavior might be governed by his cognitive store and current
attitude, each cross-cultural experiential event serves to further develop and shape his orientation towards
future events. We therefore conceptualize cross-cultural orientation in a nomological network, where
education and experience of a person are antecedents of his cross-cultural orientation, while his
behavioral competence is a consequent of the cross-cultural orientation. Our conceptualization can be
depicted as below:
33
Cross-cultural
Education
Cross-cultural
Orientation, comprised
of affective and
cognitive components
Cross-cultural
Behavior
Cross-cultural
Experience
Because the new construct defined by us is different from the constructs existing in the literature, none of
the existing measuring instruments, such as the Behavioral Assessment Scale for Intercultural
Communication Effectiveness (BASIC) (Koester & Olebe, 1988), Interpersonal Competence
Questionnaire (ICQ) (Buhrmester et al, 1988), or the Intercultural Sensitivity Scale (ISS) (Chen &
Starosta, 2000), can be used to measure Cross-cultural Orientation (CCO). To fill this void, we developed
a new instrument, termed as Cross-Cultural Orientation Inventory (CCOI), to measure the cross-cultural
orientation of a person. Moreover, since we conceptualized CCO as a two-dimensional construct,
comprising attitudinal and awareness components, we needed to develop and validate two sub-scales to
represent these two components of CCO.
34
scale for measuring Cross-cultural Behavior (Chen & Starosta, 2000). Thus a total of 36 items were
included in the questionnaire, to measure the new construct as well as other, established constructs. A few
questions were also included for ascertaining demographic information of the respondents.
35
Figure 2
.68
d10
attitude10
.83
.56
d11
attitude11
.42
d14
.75
.65
Attitude
attitude14
.87
.76
d16
attitude16
As may be seen in the figure, the standardized factor loadings are much higher than 0.5. The Chi-square
value for the model was 4.37, df = 2, p = 0.11 (not significant). The fitness indices were: CFI = 0.98, GFI
= 0.98, RMSEA = 0.11. There is a broad consensus in the extant literature that values of CFI and GFI
greater than 9.00 indicate a good fit, whereas the RNSEA is recommended to be less than .05. In our
sample, the RMSEA was estimated to be 0.11. However, the PCLOSE value for RMSEA was 0.16. Since
PCLOSE tests the null hypothesis that RMSEA in not greater than .05, a non-significant PCLOSE
indicates a close-fitting model (Kenny, 2011). Furthermore, as pointed out by Bollen & Long (1993), a
number of fitness indices should be seen rather than relying on a single index. From these results
therefore, we can safely conclude that our modified sub-scale of 4 items for the attitude dimension of
CCO exhibits unidimensionality and internal consistency. The coefficient Alpha for this scale was 0.85,
which is well above the recommended cutoff of 0.70 (Nunnally & Bernstein, 1994).
After finalizing the sub-scale of attitude, we carried out CFA for the second sub-scale, that of Awareness
dimension of CCO with 8 items that had been used in the questionnaire. Again, we found that some item
loadings were not high and that some of the residual covariances were very high. We examined the items
and dropped those items that seemed ambiguous since this could be a reason for low loadings. The
iterative process finally culminated by cutting down the items to 4 (Qs 19, 23, 25 and 26 of the
36
questionnaire), that had high factor loadings and the fitness indices showed every good model fit. The
four-item model is shown in figure 3.
Figure 3
.56
d19
awareness19
.75
.55
d23
awareness23
.71
d25
.74
.84
Awareness
awareness25
.55
.31
d26
awareness26
The Chi-square value for the model was 2.10, df = 2, p = 0.35 (not significant). The fitness indices were:
CFI = 0.99, GFI = 0.99, RMSEA = 0.02. In accordance with the norms prevalent in the field, as also
quoted earlier, these values indicate excellent fit of the model to the data. From these results therefore,
we can safely conclude that our modified sub-scale of 4 items for the awareness dimension of CCO
exhibits unidimensionality and internal consistency. The coefficient Alpha for this scale was 0.81, which
is also quite reasonable.
37
38
Figure 4
Structural model
As per this structural model, we would need to test for discriminant validity of each of our sub-scale by
pair-wise comparisons of each focal construct with all other constructs. Therefore we calculated the AVE
for each construct and compared it to the SIC for each pair of constructs. Our calulations show that AVE
of our focal constructs is in the range of 0.53 to 0.67, and that AVE is more than SIC for each pair of
constructs. Thus we can conclude that our sub-scales for Attitude and Awareness dimensions of CCO
exhibit good discriminate validity.
39
Figure 5
Treating latent constructs as observed variables is tantamount to assuming that the constructs have been
measured without any error. Based on this assumption, we ran the path analysis in AMOs 16.0. The
standardized path coefficients are shown in figure 6.
40
Figure 6
Education_observed
.21
r1
.35
r3
.26
.55
Attitude_observed
.52
.40
r2
.39
Behavior_observed
.11
.19
.27
Awareness_observed
.12
Experience_observed
41
The SEM analysis provided good evidence of a well-fitting model. The chi-square for this model was
2.16, df = 2, p = 0.34. Furthermore, other fitness indices were within acceptable limits: RMSEA = .03.
CFI = .99, GFI = .99. All the paths in the model were significant except the path Experience
Awareness. However, there is adequate theoretical justification to reason that cross-cultural experience of
a person contributes to his cross-cultural awareness. Therefore, it is justifiable to retain this path in the
model.
42
Figure 7
PATH ANALYSIS WITH RELIABILITIES
Standardized estimates
e1
e3
Education_observed
.62
Attitude_observed
Education
.39
.78
r1
Attitude
r3
.22
.24
1.97
r2
1.54
-.35
.44
Awareness
.53
.30
Behavior
1.66
Behavior_observed
Awareness_observed
e5
e4
Experience
.41
Experience_observed
e2
The fitness indices for this model were: Chi-square = 2.47, df = 2, p = 0.29. RMSEA = .05, CFI
= .99, GFI = .99. These results indicate a good fit of the model with data. Some path coefficients
43
were observed to be greater than one. This could be an artifact of low sample size. Based on the above
path analyses, we conclude that the structural model specified by us fits the data well. This means that the
new sub-scaled developed by us for the Attitude and Awareness dimensions of Cross Cultural Orientation
(CCO) behave as expected in a specified nomological network.
44
Figure 8
Configural model for multi-group analysis
45
Figure 9
Results of multi-group analysis
5. CONCLUSION
On the basis of results presented in foregoing paragraphs, we can safely conclude that the scale developed
by us to measure Cross Cultural Orientation (CCO) has two dimensions, cross-cultural attitude, and crosscultural awareness, each of which is measurable by a four-item scale. The sub-scales exhibit excellent
internal and external consistency and nomological validity. Further, the scales developed by us seem
invariant across multiple groups. The final scale, Cross-Cultural Orientation Inventory (CCOI) is given in
the Appendix.
6. PRACTICAL IMPLICATIONS
Increasing globalization of business has highlighted the need of managers who have cross-cultural
competence and are thus able to function effectively across cultures and also deal with a culturally diverse
work force. It is therefore imperative that recruiters are equipped to adequately assess the suitability of
persons they are hiring, for functioning in a cross-cultural environment. As we discussed in earlier
paragraphs, cross-cultural orientation (CCO) is an antecedent of cross-cultural behavior of a person. Thus,
an assessment of a persons cross-cultural orientation is useful in predicting his behavior in cross-cultural
scenarios. The measure developed by us is parsimonious and simple to administer. It can be used at the
time of initial recruitment, and also while selecting existing employees for assignments that might require
cross cultural adaptation and competence. Thus, the new instrument would be a useful addition to the
46
toolkit of HR practitioners as they grapple with the challenges of shaping the work force to meet the
needs of globalization.
8. REFERENCES
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Peter, J. Paul. (1981). Construct Validity: A review of basic issues and Marketing Practices. Journal of
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APPENDIX
Cross-Cultural Orientation Inventory (CCOI)
A scale to measure cross-cultural orientation of a person
(Attitude dimension)
1.
2.
3.
4.
(Awareness dimension)
5.
6.
7.
8.
Note: Response to each item is to be obtained on a Likert-type 5-point scale; strongly agree, agree, neutral, disagree,
and strongly disagree
48
ABSTRACT
This study presented a framework to explain corporate social responsibility
disclosure in terms of determinants and consequences. We are interested by
economic factors which may influence the level of social and environmental
disclosure by French companies listed in Paris Stock Exchange.It measure
social and environmental disclosure using a score of two dimensions (social
and environmental), each dimension comported some items grouped in
categories. The evaluation of each item is based on content analysis of
annual reports reported by French companies listed in Paris Stock Exchange
during 2005 to 2010. To examine the effect of factors on social an
environmental disclosure, we apply a panel data regression. Our final
conclusion, that level of social and environmental disclosure depends on
several factors which cannot be limited to one study.
JEL: M14; M41
Keywords: CSR; Disclosure; Size; Performance; French Companies
1. INTRODUCTION
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.49-60
Academy of Knowledge Process
See the EU Green Paper: Promoting a European Framework for Corporate Social Responsibility (18/07/2001)
http://europa.eu.int/comm/employment_social/soc-dial/csr/greenpaper_en.pdf
49
Societal interest in social and environmental issues has become increasingly mainstream.
The development of the CSR field generally and of CSR standards in particular.
Increasing demand for new and better information to meet the information needs of
different stakeholders. Advances in communication technology.
Investor interest in CSR performance as a business issue.
Declines in the levels of trust afforded to some institutions.
Since the 1990s, France has attempted extensive economic reorganizations in an effort to transition the
countrys economy from one of wide government intervention and ownership to one of privatization and
openness to market forces. For the French government, investment has been an important way to develop
the economy and enlarge employment.The government perceives CSR as a manner to promote social and
environmental issues as well as augment competitiveness and stimulate investors. In recent years,
disclosure of corporate social responsibility data has been mandated by a number of governments
throughout the world including those of Sweden, France, Malaysia and the UK. France was the first
country to require companies to report on non-financial information in 1977, when it mandated that
companies employing more than 300 people report annually on 134 issues relating to employees and the
workplace.1 France expanded its requirements in 2001 under Article 116 of the Nouvelles Rgulations
Economiques which mandates that companies publicly listed on the Paris Stock Exchanges Primary
Market include a report on social and environmental issues in their annual reports.
Mandating social and environmental disclosure, this is not sufficient to have more socially responsible
firms. Many factors may be involved and could affect the level of social and environmental disclosure, we
will develop some determinants suggested or studied by previous literature. The rest of the paper is
organized as follow: first we will talk about the effect of some variables on social and environmental
disclosure in order to develop our hypotheses; next, we present our research design. Finally, we conduct
the empirical analysis, in term of which we discuss the obtained results.
50
51
(2000) examined a sample of 697 firms between 1989 and 1992 and found that large, profitable firms
were more CSR active than poorly performing small organizations. The finding supported the notion that
CSR activities are a product of successful organizations, and suggested that firm characteristics such as
reputation also play a role in the effectiveness of CSR activities.
Finally Clarkson et al. (2011) argue that Firm performance is included following evidence that firms with
superior earnings prospects are likely to reveal their good news.
Based on the assertions cited above we hypothesize:
Hypothesis 4: The more financially performing companies are likely to disclose social and environmental
information more than less financially performing companies.
3. RESEARCH DESIGN
3.1. Sample selection and gathering data
France is ranked 4th with a publication rate of an environmental report (or sustainable development report)
by its largest companies (Capron, 2003, p. 4). It is one of the first countries convinced of the importance
of implementing an environmental measure within the organization (Capron and Gray, 2000). Cormier
and Magnan (2003, p.1) talked about pressures exerted on French companies, by the market, in the
purpose to disclose more and good information about the effects of their activities. Any time, the current
economic crisis has strengthened even more discussion on this theme of communication on social
responsibility. France's commitment to CSR is characterized by both its full participation in many
international negotiations. This commitment is stated in terms of legislation including the Law on New
Economic Regulations and the Law N 2010-788 of 12 July 2010 related to a national commitment to
environment. Also, we note the promotion of responsible investment by various devices and improving
transparency with a labels policy. Finally, initiatives by private actors demonstrate the collaboration of
French society in corporate social responsibility. Data were gathered from Worldscope and DataStream.
Our study focuses on a final sample3 of 128 non-financial companies as part of SBF 250 index between
2005 and 2010.
The Big 5 became the Big 4 after the demise of Arthur Andersen in 2002. Big 4 are: PricewaterhouseCoopers;
Deloitte Touche Tohmatsu; Ernst & Young; KPMG
3
the number of population companies was 250, the elimination of some companies is for these reasons:
- the financial companies
- date of the financial year end is different from 31 December
- firms missing the data necessary to measure some variables
52
According to Wiseman (1982) the simplest structure of content analysis techniques makes out the
presence or absence of bring up of a particular event in a document (annual report for example). Previous
studies assessed environmental disclosures mainly from annual reports and other regulatory filings such
as 10Ks and many of those studies rely on a Wiseman (1982) based content analysis index to measure the
extent of environmental disclosure. The Wiseman index focuses on the financial consequences of
corporate environmental activities and puts more weight on quantitative disclosures. Using this measure,
poor environmental performers may actually have higher disclosures cores than good performers because
they have greater exposures and must discuss any material financial information in their regulatory filings
such as annual reports and 10Ks.After the emergence of new normalizations attempts on international and
French levels, such as the French law for New Economics Regulations (2002), the Global Reporting
Initiative (Clarkson et al., 2011), the Global Compact and the ISO 26000, we opt to a scale composed
from 58 items (see Appendix). This scale encompasses both environmental and social aspects. Index
items are empirically verified by Ben Rhouma (2008), Aerts, Cormier and Magnan (2006) and recently by
Cormier et al. (2011).The rating is based on a score from zero to three; three points are awarded for an
item described in monetary or quantitative terms, two when an item is described specifically, one for an
item discussed in general and zero for no information about the item.
We consider that the use of a coding scale to qualify a firm's SED is appropriate for two causes. First, it
allows for some incorporation of different sorts of information into a single figure that is comparable
across firms in terms of importance. Second, while other disclosure studies rely on word counts to
measure environmental disclosure (e.g., Neu, Warsame and Pedwell, 1998; Williams and Ho Wern Pei,
1999), a qualitative scale allows for the researcher's judgment to be used in rating the value or quality of
the disclosures made by a firm. While this process is more subjective, it guarantees that irrelevant or
redundant generalities are not regarded as strategic social and environmental disclosure (Aerts et al.,
2008).
3.2.5. Risk
By referencing to prior literature we measure risk by the ratio of total debt to total assets.
53
Type
dependent
Code
SED
Measure
Content analysis of social and environmental items
explanatory
explanatory
SIZE
AUDITQ
Industry Sensitivity
explanatory
INDT
Risk
Financial performance
explanatory
explanatory
RISK
PERF
4. RESEARCH DESIGN
4.1. Descriptive statistics
We show in Table 2 the descriptive analysis of our variables. The outputs are determined by Stata 10.
These results argue that SED mean is 74.186, compared to the maximum value possible which can be
obtained (174)4. Despite the mandatory requirement of the environmental and social disclosure of French
listed companies, the disclosure level is very low. But, this average has increased compared to what was
found in studies before the advent of the French law about the new economic regulations of 2002; the
thesis of Ben Rhouma (2008) show three means of social and environmental disclosure of 2001, 2002 and
2003, she obtain respectively 21.7, 44.98 and 58,95.About the risk average of our sample, it is quite low
(0.047%), this value is not far from those obtained by several studies in the field (for example Cormier et
al., 2005 found 0.51%).
AUDITQ
INDT
Obs.
Mean
Std. Dev.
Min
Max
764
74.186
39.555
5
195
765
0.154
2.890
-0.676
79.904
765
0.047
0.114
-0.040
2.289
765
7.423
1.933
2.721
12.083
Panel B. Descriptive Statistics for dummy variables (AUDITQ and INDT)
Binomial Wald
Proportion
Std. Dev.
[95% Conf. Interval]
0
0.330
0.017
0.297
0.364
1
0.670
0.017
0.636
0.703
0
0.254
0.016
0.223
0.286
1
0.746
0.016
0.714
0.777
N= 751
(174) is calculated as: the maximum value accorded to an item multiplied by the total number of items, i.e.,
3*58=174.
54
p
0.000
0.000
0.587
0.000
55
5. CONCLUSION
Our paper contributes to the literature by studying both the use of the same sample (French companies)
and time-frame (the period 2005-2010). We draw results based on a sample consisting of non-financial
French companies listed in Paris Stock exchange from SBF 250 index. For this reason, conclusions
concern only French organizations without generalizing to international context. In general, our paper
56
attempts to extend empirical and theoretical knowledge and to add to current literature of social and
environmental disclosure, we tried to expand the number of factors that could affect the level of
disclosure.
Our empirical results show, in general, a significant and positive effect of studied factors on social and
environmental disclosure. Our findings suggest that disclosure by companies is not limited to the
judgment of managers, but subject to several factors that influence their decisions for disseminating
information in annual reports, and this to entice investors by increasing the company's reputation. Among
the limitations of this study is the short period of investigation, it is possible to undertake our problematic
over a longer time period. A probably comparison between two periods, before and after International
Financial Reporting Standards (IFRS) adoption, can be made. Always within the limits, there is an
imbalance in the number of items that make up the two dimensions of disclosure, we have a number
higher for the environmental disclosure than for social disclosure, and consequently our results were
partially biased. For this, current items could be updated or revised by referencing to new French acts or
regulations in the social and environmental field; the new items may be confirmed by qualitative research.
Finally, as our study finds a positive linkage between social and environmental disclosure and certain
factors, we do not formally look into the mechanism behind this positive association. Future extension of
this study may examine why good socially and environmentally responsible firms are more profitable
than their counterparts.
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Investments
Operation costs
Employment opportunities
Future investments
Equity programs
Environmental debts
Risk provisions
Accidents at work
Risk litigation
Employee savings
Laws and regulations conformity
Society
Regional development
Fines
Orders to conform
Corrective action
Strategic alliances
Incidents
Community involvement
Waste management
Product-related incidents
Recycling
Sites
Efforts of remediation
Implicit liability
Environmental auditing
Awards
ISO 14000
60
ABSTRACT
Malaysia consumers have become more health conscious and
consequently organic food consumption has increased recently.
Even though the market of organic product is growing, still the
demand on organic food is unstable at market place. This research
studies the impact of factors that (4As: Acceptability, Affordability,
Availability and Awareness and Consumer Innovativeness) might
influence the consumer intense to purchase organic food.145
questionnaires were collection from the female participant age
between 20-34 years old based on convenience sampling. The
results have discovered that acceptability, affordability, and
awareness are main important factors that can influence consumer
purchase intention. These finding can be helpful for marketing
managers in order to develop the most suitable strategy to gain
higher level of market share.
Key Words: Consumer Innovativeness, Acceptability, Affordability,
Availability, Awareness, Organic Foods.
1. INTRODUCTION
International Journal of
Contemporary Business Studies
Vol: 3, No: 5. May, 2012
pp.61-72
Academy of Knowledge Process
The development of agriculture was complemented with concern on food safety and
human health from well-developed agriculture sector thus consumers become more
health-conscious and the demand for organic food growths. Consequently, the demand
for organic food is increasing determined by consumers awareness of the safety and
quality of the organic food and by the environmentally friendly effect of organic
agricultural performs (Vindigni, Janssen and Jager, 2002). Organic food is an improved
61
quality of food without any hormones, antibiotics, poisons, genetically modified and
irradiation(Betterdietislam.com, 2011). Hence, organic agriculture practices started designed to encourage
soil and water conservation in order to reduce pollution and improve human health.
The organic foods markets are expanding to globalization with annual growth rate of 15 to 30 percentages
especially in Eupore countries, United States and Japan (Lohr, 2011). During 2010, the Nielsen Company
conducted an international online survey to measure worlds assessment of healthy conscious and organic
foods and discovered around 27,000 of consumers are come from different 55 markets, where are Europe,
Asia Pacfic, North America, Latin America and Africa (Egypt, South Africa, Saudi Arabia and Pakistan).
Malaysia is a vibrant country with moving constantly where from dependent on agro-based industry and
now become export-based economy stimulate by advance technology, knowledge-based and capitalintensive industries. During year 2011the population growth rate is 1.576% with consist many types of
ethnic group and the three main ethnic groups are Malay, Chinese and Indian. Malaysia food production
is a significant component within the agriculture industry due to Malaysia is sufficient with tropical and
agricultural resources. According to Malaysia Food and Drink Report Q1 2011 stated Malaysia Per Capita
Food Consumption growth by 3.64% in 2010 to reach MYR1, 564, driven by economic recovery, hence
reversing the economic recession during 2009.
In this recent year, Malaysia begins to grow a huge quantity of fresh vegetables and fruits due to the local
production are relatively low and fresher than imported products. Therefore, these amounts of local fresh
vegetable and fruits become Asia-centric food of Malaysia. Additionally, consumers in Malaysia start
becoming health conscious consumers and aware on their foods in daily life. Consequently, the
consumption of fresh vegetable and fruits is increasing rapidly. Beside, most of Malaysians are becoming
well educated on the way their eating can influence health and tend to be highly consumed on organic
fruits and vegetables. In Malaysia food industry, health consciousness and organic food become new
important trend in past decades year. However, this is not a popular trend in Malaysia and the market of
organic products increasing rapidly as number of consumers willing to eat organic food for example, fresh
fruits and vegetables in addition pay for premium price is increasing (Aryal, Chaudhary, Pandit and
Sharma, 2009). According to Euromonitor International (2012) stated the demand on organic foods are
low in Malaysia due to the price of organic foods are high and very expensive for most consumers in
Malaysia. In addition, some of organic foods suppliers and farms are not certified by local or
international organic foods certificate. For suppliers and farmers protected by organic food certification
and they are complying with high price of standard of qualification.
According to Fourth National Health and Morbidity Survey as in Euromonitor International (2012)
discovered Non-communicable diseases (NCD) such as obesity, diabetes and hypertension was increasing
to alarming level in Malaysia. From the survey found out around 7.5% of Malaysians consume on fruit
and vegetables everyday which recommended by WHO. Besides, Malaysians obesity level also increasing
to alarming level from 7.1% (2005) to 8.5% (2010) of Malaysians aged 15 years old and above
(Euromonitor International data, 2012). In future, the number of chronic diseases for example diabetes,
high blood pressure and heart or kidney problems will increase and become a gateway for the diseases.
In Malaysia, the female population is 9,253,574 whichrange between above 15 to 64 years old (Malaysia
Demographics Profile, 2012), and they are future wives and mothers; therefore they shops for foods and
groceries which the products are benefits for their families health and they will always give the best to
their babies and kids. Consequently, many researchers discovered that women are more consume on
organic foods compared to men (Radman, 2005; Hofmann 2006, Fotopoulos et al., 2002, Zanoli et al.,
2004, Davies et al., 1995 as in Becker 2007). Female consumers believe that family health is important
and bring them to purchase more on organic food. As a result, organic foods are market opportunities to
female consumers in the marketplace. Thus, this research reflect a better understand on female consumer
purchase intention towards organic foods. Therefore, many researchers were done on factors influencing
62
purchase intention and consumer behaviour on organic food. However, there are still less and far of
research on understanding consumer perception and knowledge on organic food in different categories of
adopters.
2. LITERATURE REVIEW
2.1 Diffusion of innovations Theory
Innovation can be defined as any idea, object or practice that considered as novel by any groups of society
(Roger, 1995; Mansori, 2010, Nezakati, Ali, Mansori, Ang, 2011). According to Schumpeter (1939);
Tidd, Bessant and Pavitt (1997) as in Nezakati, et al., (2011) mentioned that innovation marketing idea
where is a process of creation of new ideas into products. Diffusion of innovations theory have four
fundamental theoretical elements of diffusion of innovation theory which assist marketers to analyse
product information, characteristics of innovation and categories of adopters in order to classify potential
consumers to adopting the novel product or organic food. Furthermore, innovation decision process is a
very significant tool in the marketing communication field due to it can examine on minor level that who
are the possible target audience or examine on major level that the company who are considering
technology and economic development.
2.2 Theory of Planned Behaviour
Personality trait and social attitude are referring to concepts of behavioral dispositions and played an
important role to explain and foresee human behavior (Ajzen, 1988; Campbell, 1963; Sherman & Fazio,
1983 as in Ajzen, 1991). According to Ajzen (1991) interpret Theory of Planned Behaviour (TPB) is a
theoretical model using measure of behavioural disposition and foresee behaviour in a brief examination
of past efforts. It is important area in cognitive self-regulation. Furthermore, TPB used to examine human
behavior where lead by three aspects; first aspect is behavioral belief define as beliefs towards expected
consequences of behavior, second aspect is normative belief where define as belief towards normative
expectations of others, and last aspect is control belief which is belief towards the existence of issues that
can enable performance of behavior (Ajzen, 1991). TPB is a theory use to evaluate and foresee consumer
actual behavior and consumer intention. The definition of individuals intention is to capture the
motivational factors that affect behavior and how tough individual ready to try so as to perform the
particular behavior.
TPB is an important theoretical method for researchers to investigate consumer intention to purchase
organic food. In previous studies, there are not many researchers investigate consumer behavior on
organic food by using TPB as theoretical method to discovered the result especially in Malaysia.
Whereas, diffusion of innovation theory is another important theoretical method for market researchers to
examine consumer intention to purchase organic food in different category of target audience. There are
several studies about adoption and diffusion of innovations in food industry was discovered by
researchers (Nezzakati, Ali, Mansori and Naghondari, 2011). As a result, TPB and diffusion of innovation
theory is proper theoretical models to examine the consumer purchase intention and consumers
willingness to try and practice the new product on organic food in Klang Valley, Malaysia.
2.3 Factors influence consumer purchase intention towards organic foods
2.3.1 Marketing Mix (4As)
In general, marketers are using fundamental marketing mix (4Ps Product, Price, Place and Promotion)
to identify their marketing strategy in order to growing the market share (Ehmke, Dobbins, Gray, Boehlje
and Miller, 2004 as in Nezakati, et al., 2011). Nevertheless, this marketing mix theory was not affective
and accurate to apply in the marketing strategy. Consequently, in this study looks on new model of
marketing mix, which is 4As: accessibility, acceptability, affordability and awareness in order to identify
and evaluate the relationship between factors and consumers purchase intention towards organic foods.
63
2.3.2 Acceptability
Rajagopal (2005) justified that consumer value is an instrument to scale the long-term satisfaction and
continuing tendency to purchase the product or services as well as he identify the consumer value can be
measure on the viewed of product efficiency from consumer perspective for instance relative to output
(quality, reliability, safety) that consumer receive from a product relative to inputs which is price and cost
that consumer have to spend. Consumer value is assist marketers or organizations to examine the
opportunities that consumer to become a repeat customer providing on-going business. Thus, organization
analyse consumer value seek to strengthen a target market, study product performance and to advertise
the product more successfully.
By using TPB and diffusion of innovation theory as a method to examines customer value in organic
food. From previous research implies that product acceptability have strong positive relationship with
attitude towards behaviour and social norms in five categories of adopters. Consumer value assists
marketers to discover the elements on acceptability in order to create positive attitude towards behaviours
and motivate consumer to purchase organic food. In addition, subjective norms consider as an element
that influence degree of acceptability in five segments of adopters due to individual intention to buy
organic food will influences by other consumers perception or opinion on certain product features.
Hypothesis 1: There is relationship between acceptability of organic food and consumer purchase
intention.
2.3.4 Affordability
There is a basic economic theoretical term about the supply and demand proposed that when the price
goes down, consumer will adopt or purchase more and it is seek to create demand is increase (Casassus,
Liu & Tang, 2009 as in Nezakati, et al. 2011). In academic, there are many researches were done many
researches on consumer willingness to pay for organic food (Rodriguez, Lacaze&Lupin, 2007; Griffith
&Nesheim, 2008). According to M.harris (2007) as in Ahmad &Juhdi (2010) there are possibly with
considerable proof to support the increasing of environmental friendliness consumer behaviour is growing
number of consumers who are willing to compensate more for eco-friendly product.
Consumer attitude and consumer perception are interrelated to consumers willingness to pay for organic
food. In the market place, the most of consumers are concern on the money spend on organic foods value
whether is worth or not. Furthermore, others consumers opinion may influence consumer willingness to
purchase on organic food, especially amount they spend on due to most of customers are sensitive on
money. Hence, degree of affordability is an element influence consumer intention to purchase in five
group of customer.
Hypothesis 2: There is relationship between affordability of organic food and consumer purchase
intention.
2.3.5 Accessibility
In order to distribute the products to reach to each customer, distribution channel is one of important tool
in marketing concept. Anderson, Chatterjee and Lakshmanan (2003) as in Nezakati, et al. (2011) justify
that organizations are need to discover substitute distribution tools to distribute the products and services
to even the greatest isolated of groups. There are several studies acknowledged that lack of organic food
availability in shops or in hypermarkets store is considered as barriers to consumer obtain (Beardworth
et.al., 2002; Davies, 1995; as in Ahmad &Juhdi, 2010). Even the customers have intention to purchase the
organic food, but they cannot obtain the organic foods products in daily life.
According to TPB, the attitude towards the consumer behaviour is referring to the consumer positive or
negative perception about the specific product. In addition, perceived behavioural control where the
consumers perception whether behaviour performance ease of difficult to obtain. The interaction
between the five groups of customers with positive perception on product, high product accessibility or
64
availability and without difficulty to obtain may determine to create high level of positive attitude towards
purchase behaviour which is generating a result in massive intention to purchase eco-friendliness foods.
Hypothesis 3: There is relationship between availability of organic food and consumer purchase intention
2.3.6 Awareness
The meaning of awareness is consciousness. In term on marketing concept, awareness refers to consumer
consciousness where purchasers knowledge of specific product and company, allows the consumers to
obtain the greatest form what they purchase (Thomas, 2011). According to Kumar and Ali (2011) stated
that awareness and knowledge has turn into a significant elements in consumer attitude and behaviour
towards buying organic foods. Consumers have many choices to choose what they want based on what
they understand and know on the specific product whether safety or nor.
Raab and Grobe (2005) conclude their research and stated to maintaining good organic foods quality can
emphasizing consumer opinion turn into positive view by supported with marketing campaigns in order to
counter consumers with negative perceptions such as high price of organic food. Furthermore, several
scholars discovered that product information is important element where consumers have clear
information about the products or services, place to shop and originate a discussion with customers and
answer to requests form consumer towards market information (Feick and Price 1987, as in Ahmad
&Juhdi, 2010). Therefore, company need to make sure the intended consumers understand and interpret
the messages in the right way through the complete communication delivered to the consumers.
Hypothesis 4: There is relationship between availability of organic food and consumer purchase intention
2.3.7 Consumer Innovativeness
According to Hirschman (1980) as in Dobre, Dragomir&Preda (2009) stated innovativeness is important
concept to consumer behaviour, when consumers adopt new ideas, goods or services play an significant
role of the concepts on relating to communication and preferences, brand loyalty, decision making. Hui,
et al. (2004) stated the innovativeness is influenced by personality construct whether greater or lesser
degree since all consumers are adopts a new product at a same time. Goldsmith (2001) as in Goldsmith
and Flynn (2003) describes the consumer innovativeness is a consumer who are educated, slightly price
insensitive and possible to be heavy consumers as well as willing to purchase and learn about novel
product.
Innovativeness is a different group of adopters that refer to responses to the novel products. Nevertheless,
Clark and Watson (1995) as in Goldsmith, et al (2003) stated innovativeness can indicate at different
levels of abstraction or breadth and generality or specificity. Therefore, Goldsmith, et al (2003) said the
common innovation element is contained within theories of personality trait where describing broad
feedback to the environment.
As a result, Goldsmith, et al (2003) and several researchers discovered that there is a linkage between
consumer innovativeness and consumer characteristic and purchase intention. Therefore, innovativeness
is associated TPBs determination which is consumers attitudes and consumption acts based on the social
norms in five groups of consumers.
Hypothesis 5: There is relationship between consumer innovativeness of organic food and consumer
purchase intention.
65
Product (4As)
Acceptability
Affordability
Availability
Intention to
Purchase
Awareness
Consumer
Innovativeness
4. RESEARCH METHODOLOGY
To analyze the outcome of the study, 5 Likert scale measurement will used in questionnaire design in
order to test consumers perception for agreement or disagreement level in purchase intention towards
organic foods influence by different variables (acceptability, affordability, accessibility, awareness and
innovativeness). Besides, the questionnaire also designs to analyze consumers experience on marketing
related activities in organic foods market. A simple size of 180were distributed to female respondents in
Klang Valley area for the study. The convenience sampling is most economical and convenient to
intercept people in shopping centers during conducting a survey or interview. The research has identified
the target population as consumer who are generally purchase Fast-moving consumer goods (FMCG) and
aged above 21 years old which refer to retail products are replaced in short period of days, weeks, and
months. Normally, this group of consumers are considering as high consumer demand due to product
depreciates promptly. Hence, the respondents are aiming from Klang Valley area because this region of
respondents mostly has great recognition level than other regions in Malaysia.
66
result shows that majority of Malaysian are highly educated, still Malaysia is a developing country in
Asia Pacific. Furthermore, most of the respondents are student and the income range is less than RM1000.
For those respondents with high range of income (above RM1000) are working respondents.
Figure 1: Common Marketing Communication Tools for
Organic Foods
Whereas, from the result (firgure2) the common marketing communication tools for organic food
shows magazine (94), newspapers (67) and TV channels (47) are first three significant methods
for organic foods. However, the number of frequency less than 45 are brochure, posters, videos,
books, billboard, radio and others. This result has shown buyers are easily to get organic foods
information through the magazine, newspaper and TV channels.
5.2 Validity Test and Reliability Test
The factor loading is accepted at 0.45 due to the sample size of this research is 144 where in the range 150
sample size. From the table as above indicates that factor loading for each item is higher than 0.45 which
in the range of 0.532 and 0.896. Besides, the result of cronbachs alpha value of IVs (Acceptability,
67
Acceptability
Affordability
Availability
Awareness
Consumer
Innovativeness
Factor
Loading
Cronbachs
Alpha
0.778
0.851
0.829
0.820
0.872
0.644
0.664
0.604
I never buy the product that I dont concern about with the threat of
making a mistake.
I choose a brand that I frequently consume rather than trying
something that I am not confident on it.
Before trying a new product, I try to study friends experience and
opinions who are own this product.
0.657
Measurement Items
0.896
0.606
0.766
0.651
0.534
0.532
0.808
0.737
0.669
0.745
0.596
0.568
0.571
0.745
0.712
0.747
0.736
0.744
0.636
0.528
0.792
0.696
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Multiple Regression
Table 2: Result of Multiple Regression
Model Summaryb
Model
R Square
a
.717
Adjusted R Square
.514
.497
.54797
Sum of Squares
df
Mean Square
Regression
43.903
8.781
Residual
41.437
138
.300
Total
85.340
143
Sig.
.000a
29.242
Variables
t value
Sig
Result
H1
Acceptability
2.580
0.011
Accepted
H2
Affordability
4.783
0.000
Accepted
H3
Availability
-1.502
0.135
Rejected
H4
Awareness
6.754
0.000
Accepted
H5
Consumer Innovativeness
0.076
0.939
Rejected
69
organic foods. Several researchers (Ploeger; Rezai, Mohamed, Shamsudin, 2011 and Shaharudin, Pani,
Mansor& Elias, 2010) said that consumer consider on several criteria of organic food production such as
quality, natural of raw material, taste, health value and environmental degradation. In addition, the result
showed affordability is one of a factor affecting consumer purchase intention towards organic food and
several scholars (Aryal, Chaudhary, Pandit, & Sharma, 2009; Becker 2007 and Griffith &Nesheim, 2008)
found out that higher price of organic food over those of conventional foods is one of factor influences
consumer purchase intention, while, the lower price or reasonable price of organic foods will increase
consumer purchase intention.
From the result, awareness is one of important factor that can influence consumer purchase intention.
Researchers (Ronteltap, Trijp, Renes, Frewer, 2007) discovered that consumer innovativeness have an
influence on consumer acceptance and mostly on behavioural intention. However, availability and
consumer innovativeness are not significant factors in this research.Furthermore, the types of organic
foods ready highly accept and consume by consumers are fruits and vegetables, juice or drinks and wheat
or rice. Besides, marketing communication tools one of important findings in the research. From
respondents opinion, the magazine, newspapers and TV channels are significant methods to reach
consumers. Finally, among the respondents, scholar discovered that respondents with high education
level (Diploma, Bachelor degree and Master level) are tends to purchase more on organic foods. They
believe that organic foods are good for health, safe product and high quality especially female
respondents. The reason is female respondents are future mothers or wives, thus they are willing to give
the best to their families and kids.
After data analysis, discovered acceptability, affordability and awareness are main important factors that
can influence consumer purchase intention. Therefore, there several implications that assist marketers
bring succeed to organic foods products suppliers and retailers in Malaysia. First of all, in order to create
high consumer awareness on organic foods developing an effective marketing communication plan and
brand building are marketing strategies for organic food suppliers and retailers. These strategies assist
suppliers and retailers increase organic food sales and dominate the market. Besides, economies of scales
is another method help suppliers and retailers reduce the price if organic food. For example, retailers can
get volume discount by purchasing the organic foods in bulk from suppliers with long term contract.
Additionally, Retailers and suppliers can concern on product development of organic foods in order to get
consumer attention. For instance, improve organic food packaging and quality. It will lead to have
repeated sales and building good image on organic foods.
70
significant factors that related to consumers purchase intention on organic foods. Third, Study both
gender male and female. Although female is important respondent in this study, however male
respondents also imperative to in this research topic due to male consumers are starts become a health
conscious consumers. Besides, it also can examine on level of purchase intention towards organic foods
between male and female in order to have a depth understanding on which factors are most influence for
each gender. Lastly, examine the level of consumer awareness on organic foods and investigate which
promotion and advertising factors that highly influence consumer purchase intention on organic foods to
expand the literature in further study.
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