Economic Research-Ekonomska Istraživanja

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Predictors of green purchase intention toward

eco-innovation and green products: Evidence from
Taiwan

Massoud Moslehpour, Ka Yin Chau, Lijie Du, Ranfeng Qiu, Chia-Yang Lin &
Batzaya Batbayar

To cite this article: Massoud Moslehpour, Ka Yin Chau, Lijie Du, Ranfeng Qiu, Chia-Yang Lin &
Batzaya Batbayar (2023) Predictors of green purchase intention toward eco-innovation and
green products: Evidence from Taiwan, Economic Research-Ekonomska Istraživanja, 36:2,
2121934, DOI: 10.1080/1331677X.2022.2121934

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ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA
2023, VOL. 36, NO. 2, 2121934
https://doi.org/10.1080/1331677X.2022.2121934

Predictors of green purchase intention toward

eco-innovation and green products: Evidence
from Taiwan
Massoud Moslehpoura,d , Ka Yin Chaub , Lijie Dub,c, Ranfeng Qiud,
Chia-Yang Lina and Batzaya Batbayare
a
Department of Business Administration, Asia University, Wufeng, Taichung, Taiwan; bFaculty of
Business, City University of Macau, Taipa, Macau; cSichuan Tourism University, Sichuan, China;
d
Department of Management, California State University, 5500 University Parkway, San Bernardino,
CA; eZaisan Star Shopping Center, ‘Zaya’s Boutique’

ABSTRACT ARTICLE HISTORY

Recently, purchasing intention towards green products has gained glo- Received 6 June 2022
bal attention due to their extensive use and high environmental issues. Accepted 1 September 2022
Thus, the current article investigates environmental concern, environ-
KEYWORDS
mental knowledge, green product, and eco-innovation influence on
Environmental concern;
the green purchase intention of green products in Taiwan industry. The environmental knowledge;
research also examines the mediating role of consumers’ attention green product; eco-
among environmental concerns environmental knowledge, green innovation; green
products eco-innovation, and green purchase intention. The article purchase intention
used questionnaires to collect the primary data from the sampled
population. To examine the hypothesis, the PLS methodology was JEL CODES
adopted. The results indicated that environmental concern, environ- M31; Q56; Q57; Q58
mental knowledge, green product, and eco-innovation have a positive
association with green purchase intention. The findings also exposed
that consumer attention significantly and positively mediates environ-
mental concern, environmental knowledge, green product, eco-innov-
ation, and green purchase intention. The paper also proposed some
guidelines to the practitioners which help them in the development of
green-related policies to increase purchase intention.

1. Introduction
Due to the happening of global warming, the environment all over the globe has
been accelerating rapidly. These conventional products affect not only the environ-
ment but also human health. The adverse effect of traditional products globally is
diverting towards environment-friendly products, technology, etc. Such environmental
and human-friendly products are narrated as green products. The prime way to divert
the users from conventional to green products purchase. As green purchase intention

CONTACT Chia-Yang Lin lcyang@asia.edu.tw

ß 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/
licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is
properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by
the author(s) or with their consent.
2 M. MOSLEHPOUR ET AL.

refers to the intention of a customer to purchase a more environmentally friendly

product and avoid purchasing products that are harmful to the environment. Rapid
economic and technical growth has brought even more convenience to human life
and came up with several environmental problems like global warming, air pollution,
and climate change. Green products are organic, non-toxic, environmental-friendly,
and mainly made from recycled materials. Many human activities have a severe effect
on the environment. Some of them are the rapid consumption of natural resources,
depletion of the ozone layer, and carbon emission. Green purchasing is vital for the
environment as unplanned purchasing of goods might harm the environment.
Consumer household purchase is responsible for about 40% of the environmental
damage. Now consumers have options to minimize the ronmental damage by using
green products. It has been observed that consumers have a positive attitude when it
comes to choosing green products and they themselves demand for such products.
Recent statistics regarding green product market share exhibits that consumer
when making the decision to purchase products, the environmental consideration is
less concerned for them. However, their emphasis shifts more toward environmental
impact. Literature expressed a noticeable gap between a consumer showing a positive
attitude and the actual purchasing practice as about 67% of consumers show a posi-
tive attitude toward the purchase of organic food but only 4% purchased those prod-
ucts (Birch et al., 2019; Costa et al., 2021; Zhao et al., 2021). Factors like price,
product availability, and social influences among the other products lead to the dis-
crepancy between customer attitude and purchase behavior. High prices and incon-
venience in purchasing green products are the major barriers affecting consumer
green purchase behavior. Environmental degradation is the main issue in developing
countries, and the awareness of purchasing green products is also very little in these
countries. People are not aware of their responsibilities toward the environment and
the availability of green organic products in the market. The availability and produc-
tion of green products in developing countries are minimal, affecting the environ-
ment. One of the other reasons consumers don’t buy green products is that people
think these products are costly. Before the consumer even saw the product price, they
made up their mind about its price as 4 out of 5 consumers believe that environ-
ment-friendly items are more expensive than the others available on the market.
Moreover, only 3 out of 5 consumers would buy the green product if it cost the same
as the non-green product in the market (Ali et al., 2020; Tan et al., 2021). These are
some noticeable issues that allowed us to explore green products and their purchaser
intentions at some advanced stages.
As the conventional chemical beauty products proved quite harmful to the skin.
The chemical beauty products used have been drawn to headaches, premature aging,
acne, and other allergies. Due to this, people are now shifting toward Green Beauty
Products. These products are produced with only organic and natural ingredients and
have almost no side effects. These products include hair oil, fairness cream, face
wash, etc. The market for green products is increasing by 15% every year, showing
that now people are aware of the importance of natural products. It is the misconcep-
tion that these natural products are not effective rather, in reality, these products are
more effective than chemical products (Sana, 2020). Plant makeup is the biggest
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 3

Figure 1. Global cosmetic market size.

Source: Authors’ creation.

manufacturer of green cosmetics and has a brand value of 2.3 million dollars. The
founder of green cosmetic products in Mongolia is Khulan Davaadorj, with a com-
pany named ‘Lamour.’ They claim that all their products are skin-friendly and made
from unique Mongolian ingredients. Since 2014 Mongolia has been attracting the
Asian market before stepping into the United States of America. The importance of
Mongolian green cosmetic products can be witnessed from its 11.5 million worth of
export of natural beauty products to only America (Liu, 2021; Moslehpour
et al., 2021).
In addition to this, another country is keenly involved in green cosmetic products:
Taiwan. Taiwan first sells beauty products from Japan, but they have started manu-
facturing beauty products. Taiwan’s beauty industry also made progress slowly, unlike
Japan and South Korea, but they have the potential to show the waves. Taiwan’s
domestic cosmetic sales value increased to 3.52 Billion dollars in 2018, but due to the
Covid-19 Pandemic, it decreased to 2.67 Billion dollars in 2020, but financial experts
predicted that it would cross the highest value of 3.52 Billion dollars. Taiwan’s only
make-up product export is 660 Million euros in 2020 (Khyargas et al., 2019;
Moslehpour et al., 2022). The Taiwan beauty movement quickly made inroads in the
U.S. Success behind Taiwan’s beauty products is using green or natural products in
cosmetic products. The famous cosmetic industry of cosmetic South Korea uses a
chemical to capture the market by claiming that their products have a rapid action.
But now, most people want to use green products, especially for cleansing, toners,
moisturizers, and mask sheets. As the Taiwanese only used green products and
Chinese medicine, they grew rapidly. Taiwan implemented many standards like a ban
on animal testing for cosmetics also increased its brand value. The baseline of quality
and effectiveness is not present in the market of South Korea and Japan. Many people
perceive products as ‘if it is made in Taiwan, then it is going to be great.’ Taiwan’s
beauty industry is based on botanical ingredients, and now people are focusing on
natural products instead of high-tech lasers. They want to use traditional things
(Cheng Lung & Tran Huyen Thi, 2022; Lan et al., 2022). Due to these factors,
Taiwan beauty products have become a part of many people’s lives. The global cos-
metic market size is given in Figure 1.
The present study will address some gaps does exist in the literature like 1)
Sugandini et al. (2020), investigated whether green supply chain management and
marketing strategy has any effect on green purchase intentions whereas the present
study will check the predictors (i.e. environmental concern, knowledge, eco-
4 M. MOSLEHPOUR ET AL.

innovation and green products) of green purchase intentions in Mongolia and

Taiwan perspective, 2) being one of the important topics like green purchase inten-
tions and environment friendly products although researched although but still not
reached its peak as numerous of its aspects are need to be explored, 3) the model
consist of environmental concern, environmental knowledge, eco-innovation, green
products, consumer attitude and green purchase intentions with latest date set is not
tested before in Mongolia and Taiwan perspective, 4) Sheng et al. (2019), investigated
whether cultural values has any effect on green purchase intentions whereas the pre-
sent study will check the green purchase intentions from its predictors point of view
with the addition of mediation effect i.e. consumer attitude with fresh data set, 5)
Indriani et al. (2019) and Lan et al. (2022), investigated the green purchase intentions
with environment knowledge whereas the present study will add the variable like
environmental concerns, eco-innovation and green products along with the addition
of mediation effect i.e. consumer attitude in Mongolian and Taiwan perspective, 6)
Prakash et al. (2019), investigated the green purchase intentions with consumer atti-
tude whereas the present study employed the consumer attitude as mediation variable
and test the model in Mongolian and Taiwan, 7) Bhatti et al. (2018), investigated the
product risk multiple aspects like convenience risk, product risk with online shopping
and employed the intentions as moderating variable whereas the present study
worked on green purchase intentions by employing consumer attitude as mediating
variable and test the model in Mongolian and Taiwan. The significance of the study
are 1) will highlight the importance of green cosmetic products being environment
friendly and green purchase intentions in Mongolia and Taiwan, 2) help the profes-
sional to revamp their policies regarding green products production with the aim to
support the environment and attract the people towards purchase of green products,
3) will also help the researchers to explore more aspects of green cosmetic products
and green purchase intentions which impact the individual and environment.
The paper is divided into different phases; the first phase is about the introduction,
and after an introduction, the second phase of the study deals with evidence regard-
ing an environmental concern, environmental knowledge, eco-innovation, green
products, consumer attitude, and green purchase intentions in the light of the past
studies. The third phase of the study will shine the spotlight on the methodology
applied to collect the data regarding the environmental concern, environmental
knowledge, eco-innovation, green products, consumer attitude, and green purchase
intentions and analyze its validity. In the fourth phase of the study, results and find-
ings will be presented. In the last and final phase, the study implications, conclusion,
and future recommendations will be presented.

2. Literature Review
According to Chen and Chai (2010), Green purchasing is basically related to eco-
friendly products, hence neglecting those products which cause damage to environ-
ment. Green purchase intention and behavior are basically the instrument of green
purchasing. According to Ramayah et al. (2010), green purchase intention is the will-
ingness of individual which he/she show towards green product when making
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 5

purchasing decision. Hence, it is a complex process and involved with ethical deci-
sion-making patterns which has a reflection of responsible behavior. Consume when
act as a socially responsible person, he/she shows concern what he/she is consuming
and for that he/she makes sure to focus on green products in order to bring social
change (Moisander, 2007), Therefore in an attempt to explain green purchase inten-
tion, the said article focuses on ABC model as it is argued that attitude alone is not
sufficient to increase the purchase intention of consumer. Hence, indicates that there
exist other factors as well which could strengthen the relationship. ABC (Attitude-
Behavior-Context) model is proposed by Guagnano et al. (1995). The model is best
fit to understand consumer behavior. As the model suggested, green purchase inten-
tion of customer is not affected by consumer attitude only, but several contextual fac-
tors are responsible to influence green purchase intention. These factors could be
favorable or unfavorable. For suppose green purchase intention does not happen
because consumer has positive attitude towards green products. But it also depends
on the availability of green products (Joshi & Rahman, 2015). Thereby the theory is
highly appropriate to explain the proposed model of the study.
Over the past few decades, environmental issues and concerns have attained
importance. This importance is not only highlighted in the world environment pro-
tection forums but also highlighted in the organizations. Recently, purchasing inten-
tion towards green cosmetics products has gained global attention due to their
extensive use and high environmental issues. In this context: Islam et al. (2021) and
Kamarudin et al. (2021) examined the challenges and trends toward the environmen-
tal concerns that contribute significantly to purchasing intentions. Usually, environ-
mental concerns are concerned with animals, plants, air, sea, and land protection.
This protection is also worried about the natural world and products consumed and
used by the consumers. Similarly, Kim and Hall (2020) narrated the sustainable prac-
tices of restaurants for enhancing the loyalty of customers according to environmental
concerns. Environmental concerns are also considered the degree of environmental
problems that are important to be resolved. Environmental concerns consider elimi-
nating environmental problems with the involvement of critical environmental fac-
tors. Accordingly, Choi and Johnson (2019) investigated the impacts of hedonic and
environmental motivations among consumers and intentions to purchase green prod-
ucts. These factors are considered essential for converting consumer attention toward
green marketing. Consumers who intend to insert their attention toward the environ-
mental problems induce a favorable attitude toward the uplifting of green products.
Therefore, it is also important for the organizations to maintain the environmental
concerns over environmentally friendly products. This is helping and assisting toward
the development of a green and healthy lifestyle. Thus, the hypotheses derived from
the above debate is as under:
H1: Environmental concerns significantly and positively influence the green
purchase intention.
Knowledge is a symbol for consumers as well as organizations. The positive know-
ledge that supports the consumer environmental issues also helps the organizations
develop the knowledge conveying products. Similarly, the products that are com-
pletely introduced in the markets with full knowledge and information increase the
6 M. MOSLEHPOUR ET AL.

green purchase intentions. In this context: Han (2021) examined the sustainability of
the environment and consumer behaviors with the views of concepts and knowledge.
Environmental knowledge has posed a significant impact on consumers’ intentions
toward green purchases. Accordingly, Heo and Muralidharan (2019) and Huang et al.
(2022) indicated that consumers trigger the purchase due to eco-friendly products
associated with environmental concerns, environmental knowledge, and consumer
effectiveness. Compared with the other factors of the environment, environmental
knowledge is essential and significant toward green purchase intentions. Green per-
ceived risk is also considered among the consumers where environmental knowledge
has uplifted the green purchase intentions. In a similar context: Amoako et al. (2020)
assessed the importance of green and environmental knowledge positively influencing
the youth’s green purchasing intentions. The lack of knowledge among the consumers
about green products reduces the intentions of green purchases and affects purchas-
ing behaviors. The values of green perceived intentions are also related to consumer
effectiveness, quality, values, trust, and collectivism. Environmental knowledge is
information about the environment which is the responsibility of organizations to
maintain the healthy and sustainable life of consumers. Thus, the hypothesis derived
from the above debate is as under:
H2: Environmental knowledge influences green purchase intention positively.
The world is concerned about their economic savings and the environmental bene-
fits of consumer behaviors. Eco-innovation is an essential factor that helps to attain
the benefits of the environment and economy. In this context: Sharma et al. (2022b)
analyzed green buying behavior relation wih eco-innovtion with the effects of emo-
tional generation and loyalty. It depends on the process, products, and business meth-
ods used in eco-innovation to minimize the impact on the environment by reducing
the ecological footprints. Eco-innovation helps prevent the waste and reuse of waste
during the beginning of the production process. Moreover, Viale et al. (2022) assessed
the upstream of eco-innovation, which develops the re-thinking of consumers and
the involvement of purchasing managers. Eco-innovation is a strong predictor of the
purchasing intention of consumers. Consumers need a feasible environment and
innovative implementation for the product they covey their intentions to purchase.
Green purchase intention of consumers has been grown by the significant contribu-
tion of eco-innovation. Additionally, Severo et al. (2018) investigated the relationship
between eco-innovation, social responsibility, and cleaner production that changes
sustainable perceptions. Innovation is eco-friendly that involves sustainable develop-
ment for making significant changes toward company processes, services, and prod-
ucts. Eco-innovation is also a strong denominator of understanding by the proper use
of behavior among consumers and pro-environmental intentions. Purchasing inten-
tions of the consumers increase by the positive social attitude and innovation genera-
tivity. Thus, the hypothesis derived from the above debate is as under:
H3: Eco-Innovation influences green purchase intention positively.
The rising environmental problems have changed the perspectives of consumer
buying intentions. The products are of different types that harm the environment,
and the other is environment friendly. In this context: Tan et al. (2019) enumerated
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 7

the factors of green product buying decisions that change among young consumers.
Green purchasing intentions have considerably referred both products with consumer
willingness. Green purchasing is also measured as the green purchase behaviors and
intentions. The world has faced a lot of damage to the environment due to the prod-
ucts that induce harm to the environment. Similarly, Ali et al. (2020) explored the
altruism and green thinking for the electronic products that motivate the purchasing
intentions. Consumers have widely used these products for a long time, and the rec-
ognition of the environment has helped the consumers develop environment-friendly
products. The knowledge of the environment provided by the world forums plays a
role in protecting the environment. Moreover, Cai et al. (2017) retailers and eco-label
credibility connection and its impact on the purchasing intentions of green products.
Green products have significantly introduced all the positive measures feasible for
protecting the environment. Even though the green purchase intentions have been
positively increased in the developing and developed countries where the public
highly consumes the green products. Thus, the hypotheses derived from the above
debate is as under:
H4: Green products influence green purchase intention positively.
The environment is essential for developing consumer moods and essential for the
development of environment-friendly products. The purchasing decisions are posi-
tively affected by the consumer attitudes, which pose concerns over the environmen-
tal concerns and green purchase intentions. In this context: Chawla and Joshi (2019)
assessed the importance of consumer attitude that helps change the intentions to use
environment-friendly products. Consumer attitudes improve the spending that posi-
tively increases the outcomes of organizations. Consumers’ attitude also supports the
positive inclusion of green products and green purchase intentions. Additionally,
Trivedi et al. (2018) analyzed the influence of media and information channels on the
behaviors, intentions, and environmental attitudes leading toward green purchasing.
Consumers’ attention toward the environment significantly affects their purchasing of
green and environmentally products. Environmental concerns have positively changed
the decisions of youngsters toward green purchases. Young consumer attention has
grown for environment-friendly products due to environmental concerns. Similarly,
Sreen et al. (2018) examined the impacts of gender, behavior, and culture on cus-
tomer attitudes that mediate environmental concerns and green purchase intentions.
There is a direct and indirect influence of environmental concerns on the purchasing
intentions and consumer attitudes toward the products of green energy brands. The
consumer that intends to pay increasing attention to the ecological environment is
more willing to purchase green products. Thus, the hypotheses derived from the
above debate is as under:
H5: Association of environmental concern and green purchase intention is being
mediated through consumer attitude
Environmental knowledge is an essential factor in consumer behaviors and atti-
tudes. The attitude certainly changes from time to time when consumer conveys their
intention to purchase environment-friendly products. In this context: Ainou et al.
(2022) and Fam et al. (2019) elaborated on the consumer attitude that significantly
8 M. MOSLEHPOUR ET AL.

contributes to sales promotion techniques. The role of consumer attitude is positive

between the green purchase intentions and environmental knowledge. The mediating
effect of consumer attitude indicates the importance of environmental knowledge to
consumers for increasing buying intentions. The responsibility of environmental
knowledge is organized according to consumer attitudes, which helps enhance sus-
tainable development. Accordingly, Di Martino et al. (2019) discussed the influence
of eco-labeling information and pro-environmental attitudes on green purchasing
decisions. Environmental knowledge has increased the development of knowledge
and information for the consumers. This has positively developed the association of
consumers with environmentally friendly items. Consumer knowledge of the environ-
ment is also an important indicator and influencer toward green purchase intentions.
Similarly, L. Wang et al. (2020) analyzed the demographic influence of consumer pur-
chasing and their intentions toward the green selection of products. Consumer atti-
tude changes with the consistent knowledge of the environment and the health and
wealth importance of green products. The mediating effect of consumer attitude is
crystal clear for the environmental knowledge that convinces the consumers. Thus,
the hypothesis derived from the above debate is as under:
H6: Association of environmental knowledge and green purchase intention is being
mediated by consumer attitude
The intentions toward the purchasing behaviors change frequently. This change
occurs due to the changing attitudes of consumers towards an object. It is upon the
favorableness and favorableness of individuals who intend to purchase certain prod-
ucts. Therefore, innovation in products places a dominant impact on green purchase
intentions. In this context: Amin et al. (2017) assessed the preference of consumer
attitude contributes positive attention to various productive sectors. The favorable
conditions occur when the organizations effectively measure the consumer attitude.
Organizations certainly insert the elements of eco-innovation to predict consumer
attitudes. The role of consumer attitude is essential between the green purchase inten-
tion and eco-innovation. Moreover, Liao and Tsai (2019) developed the role of
eco-innovation, creativity enhancement, and innovation intensity strategy toward the
regulations of environments and consumer demands. The green purchase intentions
primarily focus on the consumers who prefer the products that fit their attitudes.
Various companies offer new products according to consumer needs, and those prod-
ucts are developed and introduced by the proper inducement of eco-innovation.
Additionally, Chaudhary and Bisai (2018) proposed consumers’ planned behaviors
that frequently change with eco-innovation and green purchase intentions. Effective
sustainable development is a need of green purchase intentions, which are positively
supported by eco-innovation. Moreover, the innovation perspectives are considerably
increased due to the demands and consideration of consumers. Thus, the hypotheses
derived from the above debate is as under:
H7: Association of eco-innovation and green purchase intention is being mediated by
consumer attitude
The environmental factor is an essential aspect for the consumers and the prod-
ucts. Some products are not adequately affiliated with the environment and cause
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 9

Table 1. Environmental concern items.

Items Statements Sources
EC1 ‘Human beings need to understand the ways of nature and act accordingly.’ (Chan, 2001)
EC2 ‘We should maintain harmony with nature.’
EC3 ‘Being the master of the world, human beings are entitled to deploy any
of the natural resources as they like.’
EC4 ‘Human beings are only part of nature.’
EC5 ‘We should master instead of adapting to the environment.’
Source: Authors’ Calculations.

negative impacts. Consumer attitudes play a vital role in green products and green
purchase intentions. In this context: Gupta and Singh (2021) investigated consumers’
attitudes toward the sustainable living of consumers and attracting green purchase
intentions. Environment-friendly products are the main and huge item preferred by
many customers. Consumer attitude varies from time to time when innovation and
technology take place. Green products have significantly changed consumers’ atti-
tudes, where intentions of green purchases have been increased. Additionally, H.
Wang et al. (2019) discussed the importance of green product knowledge that pro-
motes the intentions of green purchases. There are many elements of consumer atti-
tude that could mediate the green products and green purchase intentions.
Individuals having positive are more likely to induce intentions to purchase products
that convey complete comfort. Similarly, Liobikien_e and Bernatonien_e (2017) assessed
the determinants of green purchase intentions positively mediated by consumer atti-
tudes toward green products. These comforts are dependent on the liking and dislik-
ing of consumers who are intended to purchase green products. Consumer attitude as
a mediator helps the consumer to attract their attention for green products which
increase purchase intention. Thus, the hypotheses derived from the above debate is
as under:
H8: green products and green purchase intention is being mediated by consumer attitude

3. Research Methods
The article explores the effectiveness of environmental related factors on the green
purchase intention. The study also aims to explore the relationship among constructs
in the presence of consumer attitude in the context of Taiwan and Mongolian cos-
metic industry. The article has used questionnaires to collect the primary data from
the chosen customers. The instrument has been adopted from the past studies, such
as the environmental concern (EC) has five items taken from Chan (2001). These
items with statements and sources are given in Table 1.
In addition, the environmental knowledge (EK) has six items taken from a past
study such as Mohr et al. (1998). These items with statements and sources are given
in Table 2.
Moreover, the customer attitude (CA) has also taken in the study with six items
extracted from a past study such as Armitage et al. (1999). These items are mentioned
in Tables 3 and 4.
10 M. MOSLEHPOUR ET AL.

Table 2. Environmental knowledge items.

Items Statements Sources
EK1 ‘I know that I buy products and packages that are environmentally safe.’ (Mohr et al., 1998)
EK2 ‘I know more about recycling than the average person.’
EK3 ‘I know how to select products and packages that reduce the amount
of waste ending up in landfills.’
EK4 ‘I understand the environmental phrases and symbols on product packages.’
EK5 ‘I am confident that I know how to sort my recyclables properly.’
EK6 ‘I am very knowledgeable about environmental issues.’
Source: Authors’ Calculations.

Table 3. Consumer attention items.

Items Statements Sources
CA1 ‘Purchasing green cosmetics products is good.’ (Armitage et al., 1999)
CA2 ‘Purchasing green cosmetics products is wise.’
CA3 ‘Purchasing green cosmetics products is beneficial.’
CA4 ‘Purchasing green cosmetics products is favorable.’
CA5 ‘Purchasing green cosmetics products is positive.’
CA6 ‘Purchasing green cosmetics products is satisfactory.’
In addition, the green purchase intention (GPI) has four items taken from a past study such as Armitage et al.
(1999). These items with statements and sources are given in Table 4.
Source: Authors’ Calculations.

Table 4. Green purchase intention items.

Items Statements Sources
GPI1 ‘I want to purchase green cosmetics products.’ (Armitage et al., 1999)
GPI2 ‘I plan to purchase green cosmetics products.’
GPI3 ‘The price of green cosmetics products would have to
go up quite a bit before I would switch to other
conventional cosmetics products.’
GPI4 ‘I am willing to pay a higher price for green cosmetics
products than for conventional cosmetics products.’
Source: Authors’ Calculations.

Table 5. Eco-innovation items.

Items Statements Sources
EI1 ‘Our business develops products using less material.’ (Yurdakul & Kazan, 2020)
EI2 ‘Our company develops products that can be recycled easily.’
EI3 ‘Our business develops products that cause the least amount of waste.’
EI4 ‘Our business develops products that minimize the damage
caused by waste.’
EI5 ‘Our business develops products to minimize energy use.’
EI6 ‘Our business develops easily separable products.’
Source: Authors’ Calculations.

Moreover, the eco-innovation (EI) has also taken in the study with six items
extracted from past study such as Yurdakul and Kazan (2020). These items are men-
tioned in Table 5.
Finally, the green product (GP) has five items taken from a past study such as
Chang et al. (2019). These items with statements and sources are given in Table 6.
The current study researchers have sent these surveys to the cosmetic industry cus-
tomers who frequently visit the outlets. The data of these customers are taken from the
outlet managers working in the capital cities of Taiwan and Mongolia. The surveys were
given to the customers by personal visits to the outlet continued for fifteen days and
also sent the questionnaires using mail. The researchers have sent around 607 surveys
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 11

Table 6. Green purchase intention items.

Items Statements Sources
GP1 ‘The green product contributes significant benefits to the consumer.’ (Chang et al., 2019)
GP2 ‘The outstanding green product enhances consumer satisfaction and
gain intentions.’
GP3 ‘The green product continues to improve its development over time.’
GP4 ‘The green product is more attractive than its competitors.’
GP5 ‘The green product can achieve its aims to attract the consumers.’
Source: Authors’ Calculations.

Figure 2. Theoretical model.

Source: Authors’ creation.

but only received 374 surveys after one month. These surveys represent approximately
61.61 percent rate of response. The research also applied the smart-PLS to examine the
nexus among variables and test the hypotheses. It is an effective statistical tool that pro-
vides the best estimation even though researchers have used complex models (Hair
et al., 2019). In addition, the researchers have used the four predictive variables such as
environmental concerns (EC), environmental knowledge (EK), eco-innovation (EI), and
green product (GP). Moreover, this study has taken the consumer attitude (CA) as the
mediating variable and green purchase intention (GPI) as the dependent variable in the
study. These variables are presented in Figure 2.

4. Research Findings
The article has applied the convergent validity examination test such as average variance
extracted (AVE). The findings show that all AVE values are greater than 0.5. These out-
comes indicated that the high correlation among items and convergent validity proved
valid. The study employed composite reliability and Cronbach for reliability examin-
ation. As the values are greater than 0.7, hence confirm the reliability is valid. To exam-
ine content validity factor loadings were used. As values are greater than 0.5, means the
validity met the standard. Below able presents the detailed analysis. (Table 7)
The findings also include discriminant validity. From table, it indicates that the
very first value is greater than among others. The values show the construct’s associ-
ation itself is stronger as compare to other variables. Table 8 presents the finding
in detail.
The findings also exhibit the discriminant validity through cross-loadings. It indi-
cates that the values that indicated the linkage with the variable itself are larger than
12 M. MOSLEHPOUR ET AL.

Table 7. Convergent validity.

Constructs Items Loadings Alpha CR AVE
Consumer attitude CA1 0.838 0.868 0.902 0.606
CA2 0.840
CA3 0.748
CA4 0.783
CA5 0.779
CA6 0.669
Environmental concern EC1 0.861 0.848 0.892 0.625
EC2 0.754
EC3 0.841
EC4 0.782
EC5 0.702
Eco-innovation EI1 0.782 0.873 0.904 0.611
EI2 0.773
EI3 0.835
EI4 0.744
EI5 0.749
EI6 0.803
Environmental knowledge EK1 0.891 0.928 0.944 0.737
EK2 0.815
EK3 0.822
EK4 0.884
EK5 0.875
EK6 0.861
Green product GP1 0.835 0.933 0.949 0.789
GP2 0.940
GP3 0.876
GP4 0.875
GP5 0.914
Green purchase intention GPI1 0.768 0.798 0.868 0.622
GPI2 0.789
GPI3 0.807
GPI4 0.792
Source: Authors’ Calculations.

Table 8. Fornell Larcker.

CA EC EI EK GP GPI
CA 0.778
EC 0.538 0.790
EI 0.512 0.726 0.782
EK 0.454 0.514 0.433 0.858
GP 0.436 0.483 0.492 0.605 0.888
GPI 0.677 0.679 0.621 0.588 0.576 0.789
Source: Authors’ Calculations.

the values exposed that indicated the linkage with other variables. These values
exposed valid discriminant validity. Table 9 shows all of the above results.
The results also exposed the discriminant validity using Heterotrait Monotrait
(HTMT) ratio, and the results indicated that the values of HTMT ratios are lower
than 0.85. Table 10 present the values in detail.
The results in Figures 3 and 4 indicated that environmental concern, environmen-
tal knowledge, green product, and eco-innovation are positively connected with green
purchase intention, hence supporting H1-H4. Results exposed that consumer atten-
tion significantly and positively mediates among environmental concern, environmen-
tal knowledge, green product, eco-innovation, and green purchase intention and
accept H5, H6, H7, and H8. Table 11 shows all of the above results.
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 13

Table 9. Cross-loadings.
CA EC EI EK GP GPI
CA1 0.838 0.459 0.478 0.373 0.370 0.615
CA2 0.840 0.386 0.371 0.377 0.392 0.555
CA3 0.748 0.501 0.422 0.435 0.367 0.542
CA4 0.783 0.407 0.416 0.290 0.288 0.510
CA5 0.779 0.343 0.335 0.314 0.335 0.487
CA6 0.669 0.402 0.347 0.312 0.267 0.425
EC1 0.417 0.861 0.725 0.382 0.390 0.597
EC2 0.494 0.754 0.459 0.510 0.462 0.526
EC3 0.453 0.841 0.640 0.429 0.347 0.605
EC4 0.317 0.782 0.640 0.312 0.319 0.501
EC5 0.430 0.702 0.388 0.381 0.384 0.435
EI1 0.392 0.642 0.782 0.431 0.429 0.520
EI2 0.412 0.469 0.773 0.275 0.381 0.394
EI3 0.467 0.640 0.835 0.382 0.417 0.586
EI4 0.344 0.582 0.744 0.348 0.382 0.486
EI5 0.375 0.444 0.749 0.232 0.344 0.358
EI6 0.398 0.589 0.803 0.331 0.348 0.524
EK1 0.422 0.428 0.365 0.891 0.537 0.541
EK2 0.387 0.431 0.360 0.815 0.545 0.516
EK3 0.349 0.459 0.417 0.822 0.533 0.448
EK4 0.378 0.462 0.364 0.884 0.501 0.501
EK5 0.432 0.414 0.365 0.875 0.509 0.529
EK6 0.360 0.463 0.363 0.861 0.491 0.480
GP1 0.377 0.402 0.422 0.552 0.835 0.455
GP2 0.345 0.443 0.456 0.554 0.940 0.499
GP3 0.389 0.389 0.412 0.495 0.876 0.549
GP4 0.477 0.486 0.457 0.568 0.875 0.561
GP5 0.322 0.410 0.432 0.511 0.914 0.469
GPI1 0.567 0.541 0.490 0.444 0.366 0.768
GPI2 0.677 0.492 0.393 0.455 0.418 0.789
GPI3 0.456 0.568 0.544 0.505 0.507 0.807
GPI4 0.428 0.545 0.537 0.450 0.529 0.792
Source: Authors’ Calculations.

Table 10. Heterotrait Monotrait ratio.

CA EC EI EK GP GPI
CA
EC 0.621
EI 0.581 0.831
EK 0.500 0.578 0.475
GP 0.475 0.539 0.542 0.649
GPI 0.805 0.822 0.734 0.680 0.662
Source: Authors’ Calculations.

5. Discussions
The article investigates the impact of environmental concern, environmental know-
ledge, green product, and eco-innovation on the green purchase intention of green
cosmetic products in Taiwan and the Mongolian cosmetic industry. The study find-
ings revealed that eco-innovation and green purchase intention shared positive con-
nection. It implies that in Taiwan and Mongolia, the firms which apply ecological
friendly innovation in the production processes and put ecological friendly features to
the products and services succeed in satisfying the customers who have green buying
intentions and raising marketing. These results are supported by Sharma et al.
(2022a), which reveals that the customers who have complete environmental aware-
ness want to purchase products and services based on green material and green
14 M. MOSLEHPOUR ET AL.

Figure 3. Measurement assessment model.

Source: Authors’ creation.

Figure 4. Structural assessment model.

Source: Authors’ creation.
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 15

Table 11. Path analysis.

Relationships Beta Standard deviation T statistics P values
CA -> GPI 0.341 0.050 6.772 0.000
EC -> CA 0.251 0.067 3.769 0.000
EC -> GPI 0.256 0.056 4.551 0.000
EI -> CA 0.200 0.077 2.603 0.010
EI -> GPI 0.118 0.057 2.093 0.037
EK -> CA 0.169 0.053 3.191 0.002
EK -> GPI 0.160 0.041 3.912 0.000
GP -> CA 0.114 0.052 2.172 0.030
GP -> GPI 0.148 0.044 3.399 0.001
EK -> CA -> GPI 0.058 0.020 2.897 0.004
EC -> CA -> GPI 0.086 0.027 3.198 0.001
GP -> CA -> GPI 0.039 0.018 2.159 0.031
EI -> CA -> GPI 0.068 0.031 2.225 0.027
Source: Authors’ Calculations.

design. When the firms include in their policies to bring innovation in the quality
and designing of their products and services and adopt the innovative technologies,
resources, ad modes of production that could help produce to reduce environmental
impacts of production and provide ecological friendly products and services. Such
innovation adoption satisfies the customers and motivates them to buy products.
These results are consistent with Loucanova et al. (2021), which indicates that the
ecological-friendly innovation in the business operations helps fulfill the customers’
ecological-friendly requirements about the products purchased.
The study findings revealed that environmental concerns have a positive relation to
green purchase intention. The Taiwan and Mongolia areas have to face many environ-
mental concerns associated with business practices. The awareness in the customers of
these environmental concerns, reasons, and their results forms the green purchase
intention in them so that they can overcome environmental concerns. These results are
in line with, Choi and Johnson (2019) which highlight that if the customers have an
awareness of the environmental concerns and hardships which they have to face because
of these environmental concerns and find that the firms are taking part in eco-friendly
practices to overcome the environmental concerns, their intention to buy green prod-
ucts is satisfied. These results are also supported by Zhang et al. (2018), which highlight
that the customers who are attentive to the environmental concerns like GHG emis-
sions, harmful wastes, water pollution, global warming, waste disposal, ocean acidifica-
tion, and loss of biodiversity, form intention to purchase only green products and
services to encourage the environmental performance of the businesses.
The findings exposed that environmental knowledge and green purchase intention
are positively correlated. The environmental awareness in both the customers and the
business firms affects the customer’s intention from where and which products they
should buy. In Taiwan and Mongolia when the firms and customers have knowledge
about how to determine the quality of environment, knowledge of environmental
issues, and related consequences and solution, the customers have high intention to
keep on buying green products. These results are also in line with Xu et al. (2020),
which posits that the customers have the knowledge of environmental problems that
the business practices, production modes adopted by firms, and products available in
the market, they try to make the best choice of purchasing green products. These
16 M. MOSLEHPOUR ET AL.

results were also matched with Hamzah and Tanwir (2021), which throws light on
the environmental performance of business firms and their capacity to attract cus-
tomers. This study shows that the business firms with complete environmental know-
ledge, by executing effective strategies, can minimize the environmental impacts of
the actions and develop environmentally-friendly features in their products and serv-
ices. These firms successfully develop green purchase intentions in customers.
The study findings revealed that green product has a positive relation to green
purchase intention. The results revealed that in Taiwan and Mongolia, the firms that
provide the products that do not affect the consumers’ health, skin, and environment
where they are performing actions, the customers have green purchase intention.
These results agree with Ahmad and Zhang (2020), which suggests that when custom-
ers find that firms provide such products free from pollution and have the features as
it cannot affect the health of the users and the people around, they intend to make
green purchases is satisfied. The results showed that consumer attitude plays a media-
ting role between eco-innovation and green purchase intention. These results agree
with Chien et al. (2021), which proclaim that when the firms are known for adopting
ecological friendly innovation in their business process, resources, and products, the
consumers have a positive attitude towards the firms. Their positive attitude towards
the firms motivates them to purchase green products and services. Hence, consumers’
attitude builds a link between eco-innovation and customer green purchase intention.
The results showed that consumer attitude plays a mediating role between environ-
mental concerns and green purchase intention. These results agree with B. Wang
et al. (2019), which posits that when the environmental concerns GHG emissions,
harmful wastes, water pollution, global warming, waste disposal, ocean acidification,
and loss of biodiversity are greater in number and consumers have watched them,
they form their attitudes accordingly. When the consumers have positive ecological
thinking towards the firms while interacting with them, they form green purchase
intentions. The results showed that consumer attitude plays a mediating role between
environmental knowledge and green purchase intention. These results agree with
Mohiuddin et al. (2018), which state that when consumers have high environmental
knowledge, they show ecological attitudes while dealing with the business firms.
Consumers’ environmentally friendly attitudes to firms make them purchase green
products. The results confirms the presence of consumer attitude as a mediator
between construct, hence, showing consistency with Sreen et al. (2018), which reveals
that when consumers have experienced ecological friendly products, they modify their
attitude toward products and have green purchase intention.

6. Policy Implications
The present study has great significance to any emerging economies like Taiwan and
Mongolia. It presents a way to improve environmental performance that is a factor in
sustainability in economic development. This study throws light on the consumers’
green purchase intention. Customers are the essential factor of any business as their
rush towards the firms and retention determine their marketing, goodwill, and per-
formance. The demands of the consumers shape the firms’ policies for operations,
 ECONOMIC RESEARCH-EKONOMSKA ISTRAŽIVANJA 17

production, and regulations. So, this study has great significance for the individual
businesses and the overall economy as it tells how to develop green purchase inten-
tions among consumers. This study suggests that the adoption of eco-innovation,
understanding of environmental concerns, enhanced environmental knowledge, and
green product experience enhances consumers’ green PI. So, this study is an excellent
guideline for the government, regulators, educators, business firms, and consumers
on how the consumer green purchase intention can be developed. The government
and economists should form the policies to encourage eco-innovation and green pro-
duction in the economy through subsidies, support, creating awareness, and imposing
certain regulations so that the consumers are motivated to develop green purchase
intentions. The article offers guidelines to the policy-making authorities while devel-
oping the policies related to increase the purchasing attention towards green cosmetic
products. The government and educators must form the policies and strategies to
develop an awareness of environmental concerns, eco-innovation innovation, and
green product benefits to develop green purchase intention in consumers.

7. Conclusion
The study aimed to check the influences of eco-innovation, environmental concerns,
environmental knowledge, and green product on consumers’ green purchase intention
and examine the consumer attitude between eco-innovation, environmental concerns,
environmental knowledge, and green product and consumers’ green purchase inten-
tion. A survey was conducted on Taiwan and Mongolia cosmetics industries to collect
information on eco-innovation, environmental concerns, environmental knowledge,
green product, consumer attitude, and green purchase intention. The study results
showed that eco-innovation, environmental concerns, environmental knowledge, and
green product positively contribute to consumers’ green purchase intention. The
results revealed that the firms that implement eco-innovations into their practices
and production have to make green purchases as consumers want innovation and
eco-products. The results showed that observation of environmental concerns, and
their impact on natural resource quality and human health, encourage the consumer
to have green purchase intention. The environmental knowledge provided to consum-
ers at different stages of life polishes their information and enhances green purchase
intention. Whenever consumers gain experience with green products, they acquire
empirical-based knowledge and have green purchase intentions. The results showed
that eco-innovation, environmental concerns, environmental knowledge, and green
product improve consumers’ green attitudes, further developing green pur-
chase intention.

8. Limitations and Future Recommendations

Despite the empirical study implications, it has some limitations as well. These limita-
tions can be removed in future research. The present study checks only the four fac-
tors’ role: eco-innovation, environmental concerns, environmental knowledge, and
green product in consumers’ green purchase intention. Many other factors like social
18 M. MOSLEHPOUR ET AL.

influence, ICT role, and education can play a crucial role in developing green pur-
chase intention in consumers. But these factors are not under consideration in this
study. Future authors expect to consider the role of these factors in the consumer
green purchase intention while writing on this topic later on. The study presented its
findings on the impacts of eco-innovation, environmental concerns, environmental
knowledge, and green product on consumers’ green purchase intention based on
information from Taiwan and Mongolia economies. These economies have specific
economic conditions, and these areas have particular environments. So, the study
results may not be equally valid everywhere. Future scholars must collect information
from multiple economies. Moreover, this study focuses on the cosmetics industry to
analyze eco-innovation, environmental concerns, environmental knowledge, and green
product role in green purchase intention. In future studies, multiple manufacturing
industries must be the target of investigation.

Acknowledgements
The authors like to express their appreciation to the Ministry of Science and Education of the
Republic of Croatia, Professor Marinko Skare- editor-in-chief, anonymous referees, and the
managing editor for their insightful comments, which significantly improved the manuscript.

Disclosure statement
The authors declare no conflict of interest.

Funding
This research received no external funding.

ORCID
Massoud Moslehpour http://orcid.org/0000-0001-8808-2407
Ka Yin Chau http://orcid.org/0000-0002-0381-8401
Chia-Yang Lin http://orcid.org/0000-0002-8847-0212

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