Path Analysis Using Structural Equation Modelling (SEM) to Examine the Moderation of Product Knowledge in the Effects of and Perceived Risk, Environmental Consciousness, and Subjective Norm on Purchase Intention

Abstract

The objective of this research was to enhance the comprehension of consumer behaviour by exploring how purchase intentions are influenced by perceived risk, environmental consciousness, and subjective norms, which together create a complex interplay. SEM and PLS, focusing on the moderating role of product knowledge were employed in the study. While consumer marketing has well-established models, business marketing lacks similar references. This study contributes to the academic discourse and provides practical insights for organizations as they adapt to evolving customer preferences. The research technique included the evaluation of the measurement model via the use of reflective indicators, as well as the assessment of convergent and discriminant validity. Using bootstrapping, the structural model was then tested through the hypothesis testing, as well as the overall model quality and fit were evaluated using R square, Q square, F square, and SRMR. The results indicated that subjective norms played a more dominant role than perceived risk and environmental awareness in the context of purchase intention. However, the interaction between these factors and product knowledge did not significantly impact the purchase intention. The product knowledge is in-depth knowledge about the products marketed by a company. In this research, the product knowledge was a moderating variable, where the moderating variable could strengthen or weaken the independent variable. The R square value illustrated a high overall effect of exogenous/endogenous variables on purchase intention. The research contributes to the literature by bridging gaps in SEM application, shedding light on the complexities of consumer behaviour in business marketing, and advocating for a nuanced understanding of PLS-SEM's dual purpose. The findings offer valuable insights for researchers and practitioners in navigating the intricate landscape of consumer decision-making.