Green Marketing

Green product in Malaysia: Still a long way to Go

Authors :Ismi Rajiani *)Nurul Zazirah Nizam *Kamarudin Abu Bakar *)*) Universiti Teknikal Malaysia, Melaka

Presented in Sustainable Consumption Conference, Hamburg, Germany, Nov 6-8, 2011

Determinants of Consumer behavior:Green product in

Malaysia: Still a long way to Go

Presenter:Dr. Ismi Rajiani

Faculty of Technology Management and Technopreneurship Universiti Teknikal Malaysia, Melaka

Hang Tuah Jaya 76100 Durian TunggalMelaka, Malaysia

[email protected]

Presented in Sustainable Consumption Conference, Hamburg, Nov 6-8, 2011 6-8

ABSTRACT• In the early 2000’s green technology is a buzz

word. However in a developing country like Malaysia, customers’ acceptance of green products is still low due to the low number of environmentally friendly products acceptance compared to their non-green counterparts. On the basis of benefit and cost analysis, the purpose of this study is to identify the factors influencing customers’ decision in buying green product. This study argues that customers’ intention to buy green products are determined by benefit-to-self, benefit to environment, comparative cost and attainable cost. A survey is based on sample of 360 customers and potential customers of green products in Melaka, Malaysia and Structural Equation Model is used. The research revealed that the benefit-to-self factor is not a dominant significant factor which influences customers’ intention to buy green products. The implication of this research to the design of green products is then discussed.

• Keywords: environment benefit, self benefit, intention to buy, comparative cost, attainable cost


Marketing and sustainability

• environmental issues in marketing have advanced definitions of key concepts such as sustainability, green marketing, sustainable marketing (Wiese & Sherman, 2011)


Sustainability

• The first way in which marketing can become more sustainable is through the development and use of green marketing (Gordon, Carrigan and Hastings, 2011)


Concerns when considering green marketing (Gordon, et al, 2011)

• needs to be incentivized by the government• consumer doubts still persist about green

product performance• much publicity about company’s efforts on

sustainability is often perceived as merely PR activities

• largely neglecting individual consumer behavior


Consumer Behavior in Green Marketing Issue?

• Though companies and government have done all the best they can to boost a green marketing effort to sustainability purpose if consumers do not change their own behaviors then no significant improvement will be achieved mainly in developing countries like Malaysia


Malaysian Government Policy Model to Sustainability

AFFIRMAwareness

FacultyFinance

InfrastructureResearchMarketing


Research Gaps

Variety of green product offered in North America and Europe but not in Asia (Yam & Tang , 1998; Sudiyanti, 2009). • In Malaysia, although green products are not

new articles, but on the other side, there is no a significant growth in green products market. It is suspected that the main reason behind this situation is because Malaysian consumers’ environment consciousness is still weak.


Research Gaps

Thus, the present study attempts to fill up this gap by examining Malaysian consumers’ attitudes towards green products and in turn, its impact on green purchase intention.


Underpinning Theory

Lezin’s (2009) Theory of Reasoned ActionHuman is rational and will systematically use any available information (Cost and Benefit Analysis).


Sampling

• Malaysian living in Malacca who visited store known as green product distributors regardless they come for shopping or sightseeing only and willing to participate in survey.


Images of the Consumers

• The Hero (Campbell, 2005)• The Dupe (Campbell, 2005)• The Snob (Kartajaya, 2004)• The Social Responsible (Ogle et al, 2004).


Images of the Consumers

• The Hero : carefully allocates scarce resources to the purchase of goods and services in such a manner as to maximize the utility obtained

• The Dupe: of the passive, manipulated and exploited subject of market forces

• The Snob: selects goods with the specific intention of using them to create or maintain a given impression, identity or lifestyle

• The Social Responsible: demonstrate concern such issues as labour practices, production conditions,environmental impacts.


Result of The Research

Variables r Strength of relationship(Guilford’s Rule of thumb)

Sig value Relationship (α =0.05)

I toBuy * Environment benefit 0.40 Low correlation 0.00 Significant (0.00 <0.05)

I to buy * benefit to Self 0.44 Moderate correlation 0.00 Significant (0.00 <0.05)

I to buy * Comparative cost 0.45 Moderate correlation 0.00 Significant (0.00 <0.05)

I to buy * attainable cost 0.42 Moderate correlation 0.00 Significant (0.00 <0.05)

Descriptive Statistics

4.5258 1.22386 360

5.4225 1.26727 360

5.3857 1.27336 360

5.1515 1.14104 360

4.8075 1.34288 360

ibuy

ebenefit

bself

ccost

acost

Mean Std. Deviation N


Result of The Research Coefficients a

2.452 .256 9.578 .000

.382 .046 .396 8.317 .000

2.095 .263 7.972 .000

.137 .072 .142 1.913 .057

.313 .071 .326 4.396 .000

1.591 .280 5.683 .000

.077 .071 .080 1.087 .278

.185 .075 .192 2.456 .014

.295 .066 .275 4.469 .000

1.342 .281 4.785 .000

.075 .070 .078 1.080 .281

.160 .074 .166 2.160 .031

.182 .070 .170 2.601 .010

.203 .049 .223 4.154 .000

(Constant)

ebenefit

(Constant)

ebenefit

bself

(Constant)

ebenefit

bself

ccost

(Constant)

ebenefit

bself

ccost

acost

Model

1

2

3

4

B Std. Error

UnstandardizedCoefficients

Beta

StandardizedCoefficients

t Sig.

Dependent Variable: ibuya.


Result of The Research

• The highest contribution comes from attainable cost (0.223), second highest comes from comparative cost (0.170), third highest comes from benefit to self (0.166) and the lowest contribution comes from environment benefit (0.078).


One of green marketing in Malaysia Malaysian Airline reduces fuel

consumption by flying more direct routes.

It is expensive though, then people take other airlines

Attainable cost still the main consideration.


Conclusion

• Consumers in Malaysia is neither The Dupe, The Snob , nor The Social Responsible. They are The Hero - the active, calculating and rational consumer who carefully allocates scarce resources to the purchase of goods and services in such a manner as to maximize the utility obtained.


Green Marketing

Technology

Transcript of Green Marketing