CONSUMER BUYING BEHAVIOR AND ATTITUDES TOWARDS ECO-FRIENDLY FAST MOVING CONSUMER GOODS

2015 Cambridge Business & Economics Conference ISBN : 9780974211428

July 1-2, 2015

Cambridge, UK 1

CONSUMER BUYING BEHAVIOR AND ATTITUDES TOWARDS ECO-

FRIENDLY FAST MOVING CONSUMER GOODS – COSMETICS & PERSONAL

CARE PRODUCTS

Pradeep Randiwela1

Faculty of Management and Finance,

University of Colombo

Sri Lanka

[email protected]

P.M.N.Mihirani

Institute of Human Resource Advancement

University of Colombo

Sri Lanka

[email protected]

1 Winner of Best Professor in Marketing, awarded by Asia's Best B-School' at Singapore CMO Asia 2010,

former Dean/Faculty of Management and Finance, University of Colombo.


July 1-2, 2015

Cambridge, UK 2

CONSUMER BUYING BEHAVIOR & ATTITUDES TOWARDS ECO-FRIENDLY

FAST MOVING CONSUMER GOODS: COSMETICS & PERSONAL CARE

PRODUCTS

ABSTRACT:

Many manufacturing companies today, move towards green as the consumers are concerned

about the natural surroundings. Natural environmental influence our day-today lives in many

ways, yet only few academics have discussed green issues in Sri Lankan context. Hence, this

paper is an attempt to investigate the consumers purchasing behavior and attitudes towards eco-

friendly fast moving consumer goods (FMCG) with special reference to cosmetics &personal

care products. The research was conducted in the Western Province of Sri Lanka employing a

conceptual framework that identified four major factors that affect consumer green purchasing

behavior such as; individual belief, environmental factors, socio economic characteristics,

awareness &knowledge. Data collected from 153 respondents with the use of a questionnaires

and this was done by way of judgmental sampling. Both descriptive and inferential statistical

were used to analyze data. The “Lifestyles of Health and Sustainability” (LOHAS) model was

utilized to measure the purchasing behavior. This study assessed the magnitude of LOHAS

categories exists in the Western Province for environment friendly cosmetics and personal care

products market along with an examination of the factors affecting purchasing behavior.

The results reveal that the majority of the respondents were environment unconcerned where

as the miniature portion were in reality the active environment stewards. Results of the

regression analysis reveal that among the variety of socio-economic factors considered, only

gender, marital status and income level were significantly affecting the purchasing behavior.

Key words: Green Marketing , FMCG, LOHAS, Cosmetics & Personal Care, Purchasing

Behavior

INTRODUCTION


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Communities all over the world are identifying the need of environmental safety where the

“Green Marketing “as a concept which business organizations concerned to satisfy customer

needs in an environmentally friendly approach. As a result of alarming rates of environmental

lethal issues and emerging community pressure on protecting the environment, a variety of

business entities globally have moved beyond simply adhering to environmental regulations.

Many internationally reputed enterprises continue innovations and introducing environment

friendly solutions as alternatives to traditional products. Moreover, business processes allied to

product life cycles (i.e. from raw material acquisition to disposal of waste after consumer

usage) have been re-engineered in order to reduce environment impacts.

Fast Moving Consumer Goods (FMCG) sector is a considerably large sector in Sri Lankan

economy which the stakeholders have to open their eyes on eco-friendliness as it is one of

growing industries which has focused on green marketing strategies all over the world. Since

urban societies become more complex and prone to increasing problems due to environmental

pollution and unethical business practices, there is a significant attention been drawn by both

consumers and business organizations on natural environment. Consequently, some businesses

have begun reform their behavior in an attempt to address this society’s “new” concerns.

Nonetheless, at present lack of utilizing biologically degradable materials is a major observable

issue in Sri Lanka which has already leaded to accumulation of solid waste. As well, materials

such as polythene and plastics are still used as major packing and hauling materials of many

FMCG products. Though some alternatives are in use, these may not be the best solutions for

the prevailing environmental issues. Moreover, Western Province, Sri Lanka which consists of

Colombo, Gampaha and Kalutara districts has eventually become the most populated area both

residentially and industrially. Consequently, problems allied with natural resources such as


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higher consumption levels of water, electricity, fuel and wood by both firms and general public

are becoming a major issue with increasing population density in the above region. Thus

innovations are of a great need where consumer inputs are needed to be incorporated. On the

other hand, most of the marketing practitioners globally are using green elements as powerful

marketing tools so that firms in Sri Lanka as well would have a greater potential to improve.

RESEARCH PROBLEM AND OBJECTIVE

Although environmental issues affect most of the activities in day-today lives, there were only

few academic disciplines which have discussed green issues in Sri Lankan context. Since green

marketing is an emerging field in Asian countries like Sri Lanka, consumer behavior towards

this society’s new concern is still in the understanding level. It has been proven by the findings

of Jain and Kaur, (2004)where the results demonstrated that the majority of the consumers still

lack ‘green knowledge’ and due to such low awareness on green products, many organizations

are neither yet motivated in pushing their businesses towards developing more green products

nor are working hard on green packaging. Further it is also mentioned that a considerable

number of consumers have an ideal concept of being environmentally responsible but may not

necessarily implement this concept. Consequently, taking no efforts to move towards a lifestyle

which is green was identified as a major issue.

Unlike the organic food market, being one of the major segments in FMCG sector, cosmetics

and personal care products manufacturing and marketing firms may find difficult to develop

new strategies since consumer behavior towards green products is still unknown. In line with

the literature, though Sri Lankan consumer’s interests for green products are gradually rising,

the availability and awareness created by the marketers may be very less compared to the

European countries. This knowledge gap alone with lack of information regarding consumer


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behavior which has contributed to lack of green movement in Sri Lanka can be bridged by

means of understanding green consumers and their characteristics.

Therefore, overall, it is a major requirement to identify the consumer viewpoints in terms of

attitudes, perception, environmental knowledge and socio economic factors in order anticipate

different consumer needs so that firms would use these facts to modify their strategies

accordingly through developing novel approaches to meet those needs. As well, it is important

to identify doubts and misperceptions of consumers and thereby to suggest key areas which

knowledge and awareness must be conferred in developing an appropriate green consumer

mind set towards sustainable development of the country.

The Main objective of the study is,

To examine whether the consumers are concerned about green environment when they

buy FMCG and Personal Care products

To understand consumers awareness about green products and environmental

knowledge

To evaluate consumer perception, attitude and purchasing behavior towards existing

eco-friendly cosmetics and personal care products.

Green Marketing

The negative impacts on the environment due to companies’ and human activities have directed

companies to develop eco-friendly products. The consumption of eco-friendly products and

consumers’ attitudes towards these products has led to the expansion of the green marketing

mix “that preserves environmental resources and in the meantime deliver value added products

and services” (Datta and Ishaswini, 2011).


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Green Marketing concept appeared at the end of the 1980’sand it has been defined by many

researchers. According to the Ghosh (2010) Green Marketing is defined as the marketing

activities that facilitate exchanges to satisfy consumer needs and wants by minimizing the

impact of these activities on the physical environment.

Green Purchasing Behavior

Green Purchasing Behavior (GPB) is conceptualized as the probability and willingness of a

person to provide preference to products having eco-friendly features over other traditional

products in their purchase considerations. According to Beckford et al., (2010) and Chan

(2001) research findings, green purchase intention is a significant predictor of green purchase

behavior, which means that purchase intention is positively affecting the probability of a

customer decision that he/she will buy green products.

Purchasing Behavior of Green Cosmetics & Personal Care Products

These two products have not been considered together in previous research papers, but current

study attempt to search the behavior intention of those two categories together, by identifying

the significant of those product categories in FMCG sector. Two studies have examined green

marketing strategies for eco friendly personal care products and later on discussed the research

papers of cosmetic products. One focused on the product development of green cosmetics and

toiletries in the context of the United Kingdom (Prothero&McDonagh, 1992), and the other

focused on promotional advertisements of U.S. companies offering natural personal care

products (i.e., Burt’s Bees, Tom’s of Maine, and The Body Shop) (Todd, 2004). Both studies

revealed that consumers’ ecological awareness has had a major impact on the cosmetics

industry and suggested that personal care companies consider the protection of ecology as their

business philosophy to satisfy consumer needs.


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Attitudes towards Green Purchase

It has been believed that the actions of individuals can be predicted by their attitudes. Numbers

of studies have been made towards improving the ability to predict an individual’s actions.

Mainieri et al. (1997) revealed that the consumers’ attitude is associated with the knowledge

and personal experience they possess. However inconsistencies were observed among the

relationship between consumers’ attitude and their behavior when it comes to green

consumerism. Mainieri et al. (1997) found low correlation between consumers’ attitude and

green purchasing behavior. In order to predict specific behaviors, the measurement criteria of

attitudes should be directed at a specific environmental issue like purchasing of green products

(Mainieri et al. 1997).

CONCEPTUALIZATION

By over viewing the investigations related to green behavior and purchasing intentions, it is

identified that researchers with specific goals and perspectives have presented different models

in this regard. After reviewing many researches in green purchasing and green intentions, the

authors suggested following conceptual framework which is a modification of Hessami, et al.,

2013 conceptual framework. (Figure 1).

As it can be seen in the Figure1, there are four main indicators that are influencing the consumer

attitudes and green purchasing intentions, namely, Individual’s ecological beliefs,

Environmental factors, Socio economic characteristics, consumer awareness on green

products. Each of these variables is subdivided into various factors built upon the literature

review. These factors play significant role in green purchasing decision and intentions and they

have sufficient influence.


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Figure 1.Concep

Figure 1. Conceptual Framework of the current research

Green Consumer Market (LOHAS Model)

The major conceptual model used in this study to measure the green consumer purchasing

behavior was “Lifestyles of Health and Sustainability (LOHAS)”. This is commonly used to

refer the green consumer and represents the marketplace for the goods and services sought by

these consumers (Mobium,2007).

Individual’s

Beliefs

Environmental

Factors

Socio Economic

characteristics

Company/governme

nt role/support

Social influence

Age, Gender

Income

Residence

Education Level

Religion

Occupation

Material Status

Awareness &

knowledge

Marketing

Information

Green Product, Price,

place, promotion

Attitudes towards

green purchase

Green purchase

intention

Perception on green

companies

Perceived

Environmental

Responsibility

Environmental

concerns

Perception on green

concept


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The Natural Marketing Institute (NMI) has identified five segments which categorize the

greenness of the adult population based on attitudes and behavioral traits toward health,

wellness and sustainability, rather than demographic characteristics. Revised and updated over

time, NMI’s current green consumer segments include (1) Active LOHAS, (2) Naturalites, (3)

Drifters, (4) Conventionals, and (5) Green unconcerned.

Consumers of the Active LOHAS market segment, purchase only eco-friendly products and

play an active and loyal role in protecting the environment (Mobium,2007). This segment

regularly consumes organic and natural products, particularly those in the food and beverage

category. Naturalites are not, however, dedicated to the green movement or large consumers of

environmentally friendly durable goods (e.g. hybrid vehicles, energy efficient appliances),

rather they are focused more on personal health issues, such as holistic living (Mobium, 2007).

Drifters are trend sensitive and more worried about image than actual execution, as well as

eager to be seen in trendy eco-supermarkets such as Whole Foods, partly because it is a

fashionable place to be. This segment is also fairly price sensitive (Mobium, 2007).

Conventional consumer group does not have a green outlook but does practice some practical

green behaviour, such as recycling and energy conservation. They want to conserve resources

(i.e. energy and water etc.) because it is economical and sensible (Mobium, 2007).

Unconcerned group does not practice environmental responsibility. This segment is therefore

not a key target market for the LOHAS industry (Mobium, 2007).

Sample:

Sample was collected in Western Province of Sri Lanka covering Colombo, Gampaha and

Kalutara districts which has become the most populated area both residentially and industrially.

Since the number of individuals that possesses the trait of interest in Green marketing is limited

whereas relevant information was obtained from a very specific group of people, Judgmental


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sampling which is a non probability sampling technique was used for the study where the units

were sampled based on their knowledge and professional judgment. Two hundred consumers

were selected for this study.

Data Collection:

The study was mainly based on primary which data was gathered through a structured

questionnaire based interviews. This phase was consisted of questionnaire design, verification,

pilot survey and real survey.

Pilot survey:

In order to validate the questionnaire in terms of clarity, adequacy and accuracy, a pilot survey

was carried out as the first step of fact finding by conducting interviews among ten businesses

in the designated region, involved in some form of green business practices (convenient

sample). Additionally, the questionnaire was administered to several academics in the field of

business management and to a statistical expert. Along with feedback gathered from the pilot

survey, adjustments were made in selected areas. For instance, increasing the number of

categories in the fields such as education level and monthly income are among the significant

adjustments that are useful in identifying relationships with purchasing behaviors. As well,

sequence and flow of questions were changed in order to minimize errors (i.e. influential

feedback, avoidance and biasness). Consequently, the continuous feedback was used in

adjusting an accurate, adequate and reliable questionnaire to be used to gather information on

identified research problems.

Real Survey:


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The real survey was carried out as the second step during April and May 2014 by conducting

a structured questionnaire based interviews and discussions among 200 consumers in Western

province Sri Lanka according to a Judgmental sampling technique. From this sample, a total of

153 usable responses were received from interviewees in Colombo, Kalutara, and in Gampaha

Districts.

Analysis of Data:

Both descriptive and inferential statistical methods were used to analyze data. Major software

packages used for the analysis were “Statistical Package for the Social Sciences (SPSS)”

(Version 17), “MINITAB” (Version 12) and “Microsoft Excel” (Version 2007). In addition to

the assortment of illustration methods used in descriptive statistics, the major inferential

statistical concepts used were weighted likert scales, Chi- square analysis and regression

analysis. Descriptive analysis was used in this study to simplify both qualitative and

quantitative data so that it would be easy to understand and measureable. Both categorical and

continuous data types were used so as to simplify demonstrations and to facilitate further

analysis. These methods are further discussed in sections below.

Classification of Customers based on LOHAS:

12 statements were used to evaluate the purchasing behavior of customers. These statements

were developed based on the unique characteristics identified in the LOHAS model .


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Valuation Criteria of LOHAS Model:

Each statement was given a defined score where the sum can be used to determine the segment

which customers are belonged to. The scores were determined by considering the unique and

common characteristics of different LOHAS groups (Table 1).

Table1. Valuation Criteria of LOHAS Model

Factor Description Statements Score

01. Unique characteristics of Active LOHAS 3,5,6,7,8 100

02. Unique characteristics of Naturalities 9 80

03. Common characteristics of Active LOHAS and Naturalities 2,3 75

04. Unique characteristics to Drifters 4 50

05. Unique characteristics of Conventionals 10 10

06. Unique characteristics of Drifters, Conventionals and Unconcerned 11 05

07. Unique characteristics to Unconcerned 1,12 –500

Source:Mohan, G. & Denis, W. (2013)

Assessing the Factors Affecting Purchasing Behavior:

Purchasing Behaviour is a function of (depends on) socio economic factors.

Purchasing Behaviour = ƒ ∑ (Socioeconomic factors)

Purchasing Behavior = ß0 + ß1 (AGE) + ß2 (GEN) + ß3 (RES) + ß4 (EDL) + ß5 (REL) + ß6(OCP)

+ ß7 (MAS) + ß8(INC) + e

Where,

AGE1 = Age; Dummy/ discrete variable (<20=1, 21–30=2, 31–40=3, 41–50=4, >50=5)

GEN2 = Gender; Dummy/ discrete variable (Female =1, else 2)

RES3 = Residence (Region1=1, Region2=2, Region3=3 etc.)

EDL4 = Education level (Ordinary; levels from 1 to 5)

REL5 = Religion (Buddhist =1, Catholic = 2 etc. or Buddhist =1, Non Buddhist =2)

OCP6 = Nature of occupation (Govt.= 1, Private =2, Self business =3, Daily wages=4,

Unemployed =5, Other= 6)

MAS7 = Marital status (Married =1, Unmarried =2, Other =3 or Married =1, else =0)

INC8 = Gross monthly income (Rs., K=thousands)

(<10K = 1, 10-20K = 2, 20-30K = 3, 30-40K = 4, 40-50K = 5, Over 50K = 6)


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ß0-ß8 = Coefficients

e = Disturbance term

Analysis of variance (ANOVA) tables were obtained through the regression analysis in order

to interpret the significance of relationships between purchasing behavior and socio economic

factors. Further the significance and the reliability of the module used in the study were

evaluated through goodness of fit measurements.

RESULTS & DISCUSSION:

The results of the character evaluation of green consumerism reveal that the majority of the

cosmetics and personal care products consumers in the sample were belonged to

“Unconcerned” category (64%) where the second and third largest segments were “Drifters”

and “Naturalites” with percentages 39 and 23 respectively (Figure 2).

Figure 2. Distribution of LOHAS Segments among the Sample

The most important consumer segment which is “Active LOHAS” was conspicuously

diminutive (12%) when compared to the largest segment. The results illustrates that the

consumers are notably less focused on environment conservation in accordance with the

LO 18, (12%)

NA 23, (15%)

DR 39, (25%)CO 9, (6%)

UN 64, (42%) LO : Active LOHAS

NA : Naturalites

DR : Drifters

CO : Conventionals

UN : Unconcerned


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evaluation criteria where merely 12% of the respondents is presumed to have a responsibility

on the environment and social well being. Regrettably, a percentage constitute for a total of

73% which represents the majority of consumers do not exactly purchase green products as

their first choice.

Residence:

Data collection was done in western province Sri Lanka which comprised of three main

districts of Colombo, Kalutara & Gampaha. The results of the survey further reveal that the

majority of “Active LOHAS” and “Naturalites” as important green consumer segments (15%

collectively) were in the Colombo district where Gampaha and Kalutara districts had the third

importance. Therefore, in general consumers in Colombo district are more adoptive towards

green consumption when compared to other two regions. However, the outcome of Chi-square

analysis demonstrates that there is no significant difference among the magnitude of LOHAS

segments among three districts (Table 2).

Table 2. Chi-square statistics for Socio Economic Characteristics with

magnitude of LOHAS segments

Variable C-Sq P-value

Residence 0.250

Gender 0.046*

Age 0.129

Education Level 0.129

Nature of Occupation 0.29

Level of Income 0.04*

Note: C-Sq – Chi Square Statistics,*Significant at 0.05 level

Gender:

The outcome of the Chi-square analysis discloses that the purchasing behavior significantly

differs among the gender (Table 2).


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Age of Respondents:

The results of the Chi-square test reveal that the purchasing behavior and the adoption among

LOHAS categories do not significantly differ among age groups (Table 2). However, the

majority of “Active LOHAS” and “Naturalites” were found from consumer groups among the

ages of 21-30 (Table 2).

Education Level:

Results of the Chi-square analysis further demonstrate that the LOHAS categories do not vary

among education level of consumers (Table 2). This proves that education do not make any

effect on green consumption and life style.

Nature of Occupation:

Moreover, results of Chi-square analysis demonstrates that magnitude of LOHAS

segmentation does not significantly vary on nature of occupation of consumers (Table 2).

Level of Income:

Further, the results of Chi-square analysis demonstrate that there is a significant difference

between income levels and LOHAS segment distribution (Table 2). The statistical proof

exemplifies that at least one group of consumers in a particular income category differs from

others in adapting to a different behavior of LOHAS.

Environment Responsibility

The results reveal that the respondents had an average likert value of 3.99 (nearly 4.00) for

environment responsibility (Table 3). This proves that in general, the respondents were willing


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to take environment related responsibilities in order to contribute to the society if better green

movements are available.

Table 3. ALV for variables considering under Individual Belief

Variable ALV

Environmental Responsibility 3.99

Perception on Green Concept 3.94

Perception on Green Companies 3.08

Environment Concern 4.20

Note: Average Likert Value

The Chi-square statistics obtained for the above evaluation further demonstrates that the

average likert values significantly differ among LOHAS segments (Table 4). Though all

segments reached a likert value score over the average amount of 3.0, Active LOHAS

consumers and Conventional possessed the most positive view on environment responsibility.

The least average value was notably reached by the unconcerned group.

Table 4. ALV on Environment Responsibility among LOHAS Categories

LOHAS Category C-Sq

LO NA DR CO UN Coefficient P-Value

4.35 4.21 4.19 4.29 3.76 39.93 0.000*

Note: C-Sq – Chi Square Statistics, FFisher’s Exact Test Coefficient, *Significant at 0.05 level

Perception on Green Concept:

It is evident that perception of green concept was slightly elevated and beyond the average

level (Table 3). This demonstrates that the group of customers considers that the green concept

as a vital notion for a country while a very few number of respondents considered that green

marketing is merely an idea where it has no true consideration about environment protection.

Results of the Chi-square analysis reveal that the ALV for perception on green concept

significantly differ among LOHAS categories (Table 5). Notably, the Active LOHAS group


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possessed the most positive perception regarding the concept, whereas the unconcerned group

showed the least positive figure.

Table 5.ALV on Perception on Green Concept among LOHAS Categories

LOHAS Category C-Sq


4.32 4.33 4.07 4.31 3.74 38.96 0.000*


Perception on Green Companies:

The perception of consumers on green companies was roughly consistent with the average level

(Table 3). This demonstrates that the group of consumers considers that the function of a

company for green is considered on average among people. These average level figures may

lead to suspect that this group had a negative image on existing companies and their green

behavior.

Results of the Chi-square analysis reveal that the ALV for perception on green companies

significantly differ among LOHAS categories (Table 6) where the figures demonstrates that

the “Unconcerned” group had the worst perception on green companies.

Table 6.ALV on Perception on Green Companies among LOHAS Categories

LOHAS Category C-Sq


3.29 3.21 3.14 3.33 2.98 29.52 0.00*


Environment Concern:

The Likert values derived from consumer focus on environment disclose that the group of

respondents had concerned on the environment beyond an average consumer (Table 3). This

demonstrates that though the majority of respondent were belonged to the group of


July 1-2, 2015

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“unconcerned” in the actual purchasing behavior, as consumers they had a good level of focus

on the environment.

Results of the Chi-square analysis reveal that the ALV for Environment concern significantly

differ among LOHAS categories (Table 7), where the highest figure was derived from the

“Conventional” group followed by “Active LOHAS” group.

Table 7. ALV on Environment Concern among LOHAS Categories

LOHAS Category C-Sq


4.56 4.28 4.39 4.61 4.03 44.48 0.00*


Company and Government Support:

Results of the survey demonstrates that consumers of cosmetics and personal care products had

an averagely fine impression that companies and the government take actions and supports

towards environment conservation (Table 8). However, it was notable that the ALV figure was

considerably low when compared to other factors.

Moreover, results of the Chi-square analysis reveal that the ALV computed for views of

consumers on company and government support were significantly differed among LOHAS

categories (Table 9).

Table 8. ALV for variables considering under environment Factors

Variable ALV

Company & Government Support 3.37

Social Influence 3.63

Note: Average Likert Value


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Social Influence:

The Likert values derived regarding external influences on purchasing decision making

disclose that the group of respondents had a social pressure and a positive influence beyond

average, though actual buying behavior was distinct with a majority of unconcerned consumers

(Table 8).

Table 9. ALV on Company and Government Support among LOHAS categories

LOHAS Category C-Sq


3.73 3.38 3.54 4.00 3.26 35.67 0.00*


Further, results of the Chi-square analysis reveal that the ALV computed for consumers on

Social influence were significantly differed among LOHAS categories (Table 10). According

to the results, Active LOHAS consumers had a significantly higher influence for environment

concerns and lifestyle which had lead them toward practicing green consumer behavior.

Table 10. ALV on Social Influence among LOHAS categories

LOHAS Category C-Sq


4.06 3.78 3.91 3.97 3.48 37.78 0.00*


Awareness and Knowledge on Green Products, Price, Place & Promotion:

The results reveal that the consumers also had a beyond average knowledge and awareness on

green products (Figure 3). The most noticeable limitation among the majority of consumers

was that they are either unaware or had no idea about the clues given in the product package/


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Figure 3. Awareness and Knowledge on Green Products

labels to identify possible environment or health hazards. Further, the majority had stated that

they had no clear understanding of all information given in the package material.

Figure 4. Awareness and Knowledge on Price, Place and Promotion

Results of the survey further illustrates that consumers had some dilemma on selections as they

had doubts and misconceptions regarding the features of the marketing mix. In case of place

and promotion, the consumers had limited awareness and knowledge on place and promotion

12

5

79

56

10

8

14

0

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0

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.70

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0

20

40

60

80

100

120

140

160

1 2 3 4 5

Nu

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Statement

Yes No Correct Correct Percentage

50

26

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67

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86

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43

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.61

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93

.46

%

0

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40

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1 2 3 4 5 6 7

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Statement

Yes No Correct Correct Percentage


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(Figure 4) where it can be suspected that the decision process could be affected. Results further

reveal that the consumers’ view associated to distribution and communication was somewhat

uncertain.

Figure 5. Information Sources Used by Consumers

Sources of Information:

The survey outcome reveals that the majority of the respondents (73.8%) were exposed to

information through media including television, radio and news papers. Internet in the modern

society is an exceptional tool to reach information from the market place. Nearly 34% of the

respondents have identified these resources as useful information stream (Figure 5). Moreover,

Personal experiences, retail shop/ super market displays, family members and friends were also

considered as information sources which consumers can acquire valuable information on green

marketing, products and companies. In addition to those streams,.

0

53

11

23

39

45

45

52

15

113

0.00

34.64

7.19

15.03

25.49

29.41

29.41

33.99

9.80

73.86

0 10 20 30 40 50 60 70 80 90 100 110 120

Other Sources

Internet based Sources

Magazines

Promotional Activities of Companies

Friends

Family Members

Retail Shop/ Supermarket Displays

Personal Experience

Company Representatives

Media (TV, Radio, News papers)

Frequency/ Percentage

Info

rma

tio

n

So

urc

e

Percentage Frequency


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Figure 6. Consumer Rating on Most Available Information Source

consumers of cosmetics and personal care products have also recognized promotional activities

of companies, company representatives and different magazines as supplementary information

sources

Availability of Information:

The results reveal that the most available information source to consumers was the Media

(Figure 6). Nearly 40% of consumers reach information on cosmetics and personal care

products through television (TV), radio and news papers. The second major information source

is the internet and World Wide Web where the availability of useful information was

0.00

34.64

0.00

3.27

3.27

3.92

11.11

3.27

0.65

39.87

0

53

0

5

5

6

17

5

1

61

0 5 10 15 20 25 30 35 40 45 50 55 60 65

Other Sources


Magazines


Friends

Family Members


Personal Experience




Info

rma

tio

n

So

urc

e

Frequency Percentage


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Figure 7. Consumer Rating on Most Reliable Information Source

rated as 35%. In addition to the third most available information source of retail/ supermarket

displays (11%), less than 10% of consumers rated the other streams as the most available

information sources.

Reliability of Information

The majority of respondents (42%) stated that personal experience is the best reliable source

of information, while as the second rating another group (27%) stated that promotional

activities of companies are mostly reliable. The other major reliable information sources were

family members, company representatives, friends and internet based sources where the

percentages were 23%, 19%, 18% and 13% respectively.

0

13

0

27

18

23

4

42

19

6

0.00

8.55

0.00

17.76

11.84

15.13

2.63

27.63

12.50

3.95

0 10 20 30 40 50

Other Sources


Magazines


Friends

Family Members


Personal Experience




Info

rma

tio

n

So

urc

e

Frequency Percentage


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Table 11. Parameter Estimates of Multiple Ordinal Regression Model

Factor Description Estimate Std. Error Wald df Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

[Age=1] 20 or Below -1.557 2.802 .309 1 .578 -7.049 3.934

[Age=2] 21 – 30 -1.888 2.377 .631 1 .427 -6.547 2.771

[Age=3] 31 – 40 -1.459 2.267 .414 1 .520 -5.903 2.985

[Age=4] 41 – 50 -.828 2.302 .129 1 .719 -5.339 3.683

[Age=5] 51 – 60 .272 2.455 .012 1 .912 -4.540 5.084

[Age=6] Over 60 0a . . 0 . . .

[Gender=1] Male 1.269 .492 6.664 1 .010 .306 2.233

[Gender=2] Female 0a . . 0 . . .

[Marital status=1] Single .142 .583 .059 1 .807 -1.001 1.285

[Marital status=2] Married 1.565 .756 4.280 1 .039 .082 3.047

[Marital status=3] Separated 0a . . 0 . . .

[Education level=4] Secondary level 1 -2.112 1.890 1.249 1 .264 -5.816 1.592

[Education level=5] Secondary level 2 20.637 .000 . 1 . 20.637 20.637

[Education level=6] Tertiary level 1 1.190 .810 2.155 1 .142 -.399 2.778

[Education level=7] Tertiary level 2 .499 .730 .467 1 .494 -.932 1.930

[Education level=8] Tertiary level 3 .856 .585 2.141 1 .143 -.290 2.001

[Education level=9] Tertiary level 4 0a . . 0 . . .

[Religion=1] Buddhism .097 .845 .013 1 .908 -1.558 1.753

[Religion=2] Christian .033 1.095 .001 1 .976 -2.113 2.179

[Religion=3] Catholic .896 .876 1.045 1 .307 -.822 2.613

[Religion=4] Muslim .488 1.171 .174 1 .677 -1.807 2.783

[Religion=5] Hindu 0a . . 0 . . .

[Occupation=1] Government 5.333 2.940 3.290 1 .070 -.430 11.096

[Occupation=2] Semi-gov. 5.206 3.034 2.944 1 .086 -.741 11.153

[Occupation=3] Private 5.533 3.070 3.249 1 .071 -.483 11.550

[Occupation=4] Self-employed 6.459 3.289 3.857 1 .050 .013 12.905

[Occupation=5] N.G.O. 4.613 3.332 1.916 1 .166 -1.918 11.144

[Occupation=6] Temporary Work 4.734 3.100 2.331 1 .127 -1.343 10.810

[Occupation=7] Daily Wages -17.628 .000 . 1 . -17.628 -17.628

[Occupation=8] Unemployed 4.811 3.158 2.322 1 .128 -1.378 11.000

[Occupation=9] Student 3.573 3.423 1.089 1 .297 -3.136 10.281

[Occupation=10] Other 0a . . 0 . . .

[Income level=1] Below 10 K -6.303 2.250 7.849 1 .005 1.893 10.712

[Income level=2] 10 – 20 K 3.397 1.743 3.800 1 .051 -.018 6.813

[Income level=3] 20 – 30 K 2.540 1.449 3.074 1 .080 -.299 5.379

[Income level=4] 30 – 40 K 1.928 1.364 1.997 1 .158 -.746 4.603

[Income level=5] 40 – 50 K 1.370 1.302 1.107 1 .293 -1.182 3.922

[Income level=6] 50 – 60 K 3.176 1.446 4.821 1 .028 .341 6.011

[Income level=7] 60 – 70 K .080 1.678 .002 1 .962 -3.209 3.369

[Income level=8] 70 – 80 K 3.220 1.640 3.854 1 .050 .005 6.434

[Income level=9] 80 – 90 K .213 1.553 .019 1 .891 -2.830 3.257

[Income level=10] 90 – 100 K .142 1.660 .007 1 .932 -3.112 3.396

[Income level=11] Over 100 K 0a . . 0 . . .

[Relation to Env=1] None .538 .837 .414 1 .520 -1.102 2.179

[Relation to Env=2] Society Member -.365 1.157 .099 1 .753 -2.633 1.904

[Relation to Env=3] Employee of GC -1.486 .961 2.392 1 .122 -3.369 .397

[Relation to Env=4] Env. Journalist -23.568 .000 . 1 . -23.568 -23.568

[Relation to Env=5] Env. Researcher -1.232 1.206 1.044 1 .307 -3.595 1.131

[Relation to Env=7] Env. Scientist 0a . . 0 . . .

Note: a-compared factor; GC – green company; *Significant at 0.05 level


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Cambridge, UK 25

Importantly, though consumers stated that Media and retail shop displays are mostly available

information streams, they were considered as least reliable sources. Magazines were not

considered by consumers as a reliable information sources (Figure 7).

Effect of Socio-economic Factors:

Results of the regression analysis reveal that among the variety of socio-economic factors

considered, only gender, marital status and income level were significantly affecting the

purchasing behavior (Table 11). In fact, these factors were the ones which make the difference

between LOHAS categories where different mind-sets are focused on distinct purchasing

behaviors.

Table 12. Model Fitting Information

Model -2 Log Likelihood Chi-Square df P-Value

Intercept 420.671 Final Model 321.627 99.043* 41 0.001*

Note: *Significant at 0.05 level; **larger the value higher the fit

According to the statistical outcome of the analysis, male when compared to female were more

focused on green consumer behavior whereas respondents those who were married are also

oriented positively towards green consumerism. Further, Income levels 1, 6 and 8 were

significant in purchasing behavior.

Table 13. Model Goodness-of-Fit Measurements

Parameter Coefficient/ Value df P-Value

Pearson Chi-Square Statistics 536.830** 471 .019*

Cox and Snell Adjusted R-Square 73.06** 471 --

Note: *Significant at 0.05 level; **larger the value higher the fit

This exhibits that the respondents with an income level of 6 and 8 were keen in green consumer

behavior when compared to those who had an income level of 11. As well, those who belonged


July 1-2, 2015

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to the level 1 were deviated from green behavior. Table 12 and 13 confirm the model fit indices;

Pearson Chi Square Statistics; Cox and Snell R-Square for the regression model. The value

indicated the reasonable model fit where it is fitted well in explaining the variation Socio

economic characteristics in adopting LOHAS categories.

CONCLUSION:

Green marketing is an important concept for both companies and customers where environment

protection is a major concern. Many manufacturing companies today, moves towards green as

the consumers are becoming more conscious about the natural surroundings. Green

marketing is the marketing of products that are supposed to be both environmentally and

individually beneficial. This practice adds in a broad range of activities in the marketing mix,

including product modification, production process changes, sustainable packaging,

distributing and communication etc. Linking with the marketing concept it do not just re-focus,

adjust or enhance existing marketing philosophy and practice, but also seeks to confront those

approaches and reach substantially in different outlook. Green marketing consists of a cluster

of approaches which strive to tackle the lack of fit among conventional marketing and the

ecological and social realities of the wider marketing context.

LOHAS classification, which a model used internationally, is useful to identify the magnitude

to which consumers are focused on natural environment and its conservation. This study

assessed the magnitude of LOHAS categories exists in the Colombo district for environment

friendly cosmetics and personal care products market along with an examination of the factors

affecting purchasing behavior.


July 1-2, 2015

Cambridge, UK 27

The majority of the respondents can be considered as environment unconcerned where as the

miniature portion are in reality the active environment stewards. Though the results reveal that

consumers possess a considerable level of positive perception for green marketing concept,

products and for companies, practically, the purchasing behavior differ due to a variety of

reasons. It can be supposed that the consumers are all potential include “Suspects” who

evaluate those features in the buying decision process, “Prospects” who may attracted to the

concept and haven’t buy and finally “Customers” who are the actual buyers. In this scenario,

loyal customers are “Active LOHAS” and “Naturalites”. Though Drifters and “Conventionals”

as well can be good customers for green products the majority of them deviate from the interest

during the buyer decision making process.

One major reason for the above deviation, as revealed in the survey is that the inability of

consumers to trace information about products, where a considerable number of consumers had

no idea about the information given in the product. On the other hand the perception of

respondents on green companies was roughly hovering around the average level. Thus

consumers may have a negative image on companies regarding green marketing. Thus,

companies may provide necessary information via better promotions in order to educate

consumers to create a want by demonstrating the difference of their products.

The majority of respondents were in the ages between 21 and 30 years where among those a

major portion is environment unconcerned consumers. This is an indicator that the younger

generation as the future of a nation does not concern about the environmental issues allied with

cosmetics and personal care products. However, this may be merely for the context of

cosmetics and may be different for another kind of market.


July 1-2, 2015

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Considering the education levels, it was revealed that though the majority over 70% had

reached their tertiary education, according to the statistical analysis, there was no significant

relationship among education level and the adopting in LOHAS categories. Thus education

may lead to change the mindset of those respondents in a way that they could make a sense to

create a burning need to protect the environment. Moreover, the consumers who had attended

an environment related education program were found making proper decision making in

purchasing. Therefore, it is recommended to include environment education and green

consumerism to the education system where younger generation can gain knowledge and apply

practically in their lives in decision making.

Importantly, unlike formal school or college education, these education programs can be used

to educate adults in the society who are not engaged in an environmentally and socially

responsible consumer behavior at present. However, these like education programs must be

promoted by the government and non-government organizations in order to increase the

literature and environmental knowledge of consumers so that they can actively participate in

valuable decision making allied to environment protection while improving the quality of their

lives. As per the “marketing concept and philosophy” today, consumers too could engaged in

marketing as participant of creating value, where society will benefit ultimately.

The consumers are less satisfied regarding the support given by companies and by the

government. Thus the interest can be given where people would be motivated towards green

consumption, if proper governmental programs are implemented with the support of the private

sector. Since statistics reveals that the contentment on the prop-up of government and non

government organizations is low, it can be concluded that the consumers may be expecting

more institutional support for a green movement. Currently, the support and influence, subsidy


July 1-2, 2015

Cambridge, UK 29

schemes, loan facilities which may be required by companies are lacking in the country. Thus,

a proper research on companies to evaluate this need and to arouse the need of a green

movement must be managed trough a well establish national policy. Importantly, these set-ups

must assure that all organizations, society and the environment can be benefitted according to

the triple bottom-line concept.

On the other hand, attracting customers through managing a proper blend of the marketing mix

is important. Pricing is as decisive in green marketing as in conventional marketing. Most

customers will only be prepared to pay a premium if they recognize supplementary value such

as improved performance, functionality or usability. Environmental benefits alone may not be

a validation for elevated prices for all LOHAS categories. Thus, product aspects which give a

valuable outcome together with a realistic price are essential to attract and to convert

“Conventionals” and “Drifters” to effective LOHAS consumers. Proper marketing promotions

as communication may be used to draw attention of the “Unconcerned” group where perception

and attitudes can be challenged to be altered through providing awareness and knowledge.

However, there is a national need for communicating the potential benefits hidden savings in

green products. Though these there might be a need to promote aggressively with relatively

higher prices, environmentally responsible products may be comparatively less expensive

when whole life costs are taken into consideration. In terms of cosmetics and personal care, the

overall health benefits and environmental benefits must be communicated to the society.

In addition to the pricing and promotional difficulties, there many negative aspects allied to

green marketing where one of such worse phenomenon is “green washing”. In modern society,

corporations are ever more recognizing the benefits of green marketing “Green washing” refers


July 1-2, 2015

Cambridge, UK 30

to businesses that espouse outwardly green acts with an underlying intention to amplify profits

through misleading consumers.

In conclusion, the study suggests a need of a national policy towards green marketing with

green consumerism and green production where regulation, education and awareness, subsidies

and aids are crucial elements for the betterment of cosmetics and personal care products

consumers in Sri Lanka. Further, involvement of both government and private sector where

consumers can be value creators may lead the society towards economic and environment

sustainability.


July 1-2, 2015

Cambridge, UK 31

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ABBREVIATION

FMCG: Fast Moving Consumer Goods

LOHAS: Lifestyles of Health and Sustainability

ALV:Average Likert Value

GAL: Grand Average Likert Value

SPSS:Statistical Package for the Social Sciences

NMI: Natural Marketing Institute

E&SR: Environment and Social Responsibility

CONSUMER BUYING BEHAVIOR AND ATTITUDES TOWARDS ECO-FRIENDLY FAST MOVING CONSUMER GOODS

Marketing

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