Home buyers behavioural intention model of green residential in Indonesia

Abstract

Green residential is developed with the objective to reduce and eliminate negative environmental impacts. Home buyers as an essential element of the green housing market have been aware of and realise the benefits of green residential compared to the conventional home. However, there is a discrepancy between home buyers and developers, since developers proclaim that their development projects are green and promote green residential as a gimmick. Thus, to succeed in the green residential development, developers should understand the home buyer intention factors of purchasing green residential based on green building rating criteria in Indonesia. Home buyers‟ are affected by their internal and external factors in term of the residential purchase behaviour. However, limited research considers both of those factors as the determinant of home buyer behavioural intention. The aim of this study is to determine the factors of the home buyers‟ behavioural intention to buy green residential and relationship between the behavioural intention factors by developing the model of home buyers‟ behavioural intention of green residential. The behavioural intention factors that influence home buyers to purchase the green residential were collected and gathered through the literature review on previous studies from journals, reports, articles and others. The conceptual framework adopted the Theory of Planned Behaviour (TPB) which the evidence empirically has the predictive ability on the buyer's behavioural intention. The data was collected through self-administered questionnaire by cross-sectional survey and gathered from 414 prospective home buyers‟ after a data screening process. The descriptive and confirmatory factor analyses performed on the main TPB and extended TPB factors. The main TPB factors are attitude towards green residential and behavioural belief; subjective norms and normative belief; perceived behavioural control and control belief. The extended TPB factors consist of environmental knowledge, environmental concern, green awareness, self-image, culture value, and green lifestyle. The inner model analysis of Partial Least Square-Structural Equation Modelling was applied to determine the relationship between main TPB and extended TPB factors, then develop the behavioural intention model from the significant relationship. The result supported the application of extended TPB to predict the home buyer behavioural intention of green residential in Indonesia. The major factors which form the model are the subjective norm and normative belief; perceived behavioural control and control belief; and environmental knowledge. This study contributes to the developers, government, as well as for home buyers should apply the behavioural intention model as a framework which contains the green building rating criteria for the success of green residential development in Indonesia.