Relationship Between Consumers Behaviour And Purchasing Green Products Marketing Essay

Relationship Between Consumers Behaviour And Purchasing Green Products Marketing Essay Green products refer to a green product is one that causes almost no damage to the environment and a product is made out of recyclable and renewable materials. (Edge, 2010) The second definition is green products minimize the damage or harm some production methods can have on our air, water, soil, animal life and plants. (Osborn, 2010) As the green products have gained popularity in the Malaysia market more consumers will focus to the greener products. Therefore, this will influence many organisations and industries will manufacture the product for their company. In addition, for the green products that is in many area of the industry such as automobile industry the hybrid car or environment friendly car. In addition, green products included energy star appliance, energy efficient electronics, environmentally friendly household products, alternative transportation, organic foods, fair trade coffee, organic cotton and hemp apparel, natural skin and personal care products. Therefore, t o be successful within green market it is important to tie the products environmental attributes to the lifestyles of the target consumers. Furthermore, to protect our earth people not only buying or using the green products, but the consumer now require high services when they consumption to the product. Therefore, organizations not only focus on their green products but it also provides the green services for their consumer. In the 21 century, many service industries also follow the step to provide their green service, such as in the tourism now it becomes ecotourism. The definition of ecotourism is ecologically sustainable tourism with a primary focus on experiencing natural areas that fosters environmental and culture understanding, appreciation and conservation. (Safari, 2010) It also is the travel that preserves the environment and promotes the welfare of local people. Travellers that are interested in ecotourism want to enjoy natures offerings, but do it in a way that does not negatively impact the natural resource. According to the Malaysian government, healthcare travel as one of the potential services to genera te nation economic growth therefore Malaysia is fast-gaining recognition as a preferred destination for healthcare travellers. (International Medical Travel Journal, 2010) Theory of Reasoned Action The Theory of Reasoned Action was established in 1975 and modified in 1980 by Ajzen and Fishbein. According the Ajzen and Fishbein suggested that the attitudes could explain human action therefore, this theory was used to study on human behaviour and develop appropriate interventions. The key assumption of this theory is that individuals are assumed usually quite rational and make systematic use of information available to them. People consider the implications of their actions before they decide to engage or not engage in a given behaviour. (Ajzen, I and Fishbein, M, 1980) Therefore, the consumers behaviour is the main consequence to impact consumers perspective to purchase the green products. For example, if our attitude leads us to want to purchasing the green product but dont have enough money to consumption, so because of lack of money will prevent people attitude from causing to purchase the green product. In addition, consumers perspective not only the personal behaviour, but it also influence by the social environmental such as friends and family. That is, whenever our attitudes lead us to do one thing but the relevant norms suggest we should do something else, both factors influence our behavioural intent. Environmental Concern Malaysia is the developing country that faced great challenges in ensuring a balance between development and environment sustainability. Environmental concern defined as a global attitude with indirectly to effects on behaviour through behavioural intention. The consumers perspective is influence by the environment concern because recently many problems of global warming such as earthquakes and tsunami in this worlds. (Cosby, 1981) Environmental concern is also sometime known as ecological concern, which refers to the degree of emotionality, the amount of specific factual knowledge, and the level of willingness as well as the extent of actual behaviour on pollution-environmental issues. In Malaysia, the environmental management is conducted by the federal government which is cooperation between Department of Environment (DOE) of the Ministry of Science, Technology and Environment and Ministry of Natural Resources and Environment (NRE). In the main objective is to administer the 1974 Environment Quality Act (EQA) is established to providers the framework for environmental regulation in Malaysia. Along with findings that a consumers environmental awareness is viewed as a pre-condition for green consumption, environmental concern is an important determinant of consumer behaviour toward organic products. (Paladino, 2005) Environmentally responsible consumption emanated from criticism that the marketing concept ignored the impact of individual consumption upon society as a whole. For the marketers, environmentalism has become a standard influencing consumers perspective. Consumers they consider the environment to be important will therefore evaluate the environmental consequences associated with the purchase of a product. So consumers may be purchase of green products, if the environmental consequences are important enough to them. For example, there is a need for creating and marketing an environment friendly car or hybrid car which is going to have reduced detrimental impacts on the mother earth and creating a sizeable awareness to the human action. In addition, the natural resources like fuel face limited problem, human they must develop new or alternative ways of satisfying these unlimited wants. Consumers perceived level of self-involvement towards the protection of the environment may prevent them from engaging in environmentally friendly activities such as recycling. (Wiener, 1990) Therefore, (Dahab, 1995) measured intent by asking consumers to indicate whether a recycling activity was something they are currently doing, something they intend to do, something they may not do, or something they probably will nor do. After research information above that approve the strong influence of the individual consequences on intention explains that consumers they are high levels of environmental concern but not exhibit pro-environmental behaviours. In the general belief among researchers and environmental activities that through purchasing green products, products with recyclable packaging or properly disposing of non-biodegradable garbage, consumers can contribute significantly to improve the quality of the environment. (Abdul-Muhmin, 2007) According the information of demographic, today still have many traditional rural communities in Malaysia and it still use a large number of species of medicinal purposes. This traditional knowledge has been used by pharmaceutical companies in their search of new drugs, especially from developing countries with high biodiversity and long tradition of the use of plants for medicinal purposes. In addition, today the healthcare travel is become popular to the local and foreigner tourist. Therefore, the establishment of the Malaysia Healthcare Travel Council (MTHC) will bring the efforts of because Malaysia is rich with the natural resources to manufacture the green products and green services. (International Medical Travel Journal, 2010) In this few years, tourism is the second highest earner of foreign currency every year growth of 7.3%, and the ecotourism is the part of the faster growing within tourism industry. Malaysia with its outstanding biodiversity and scenic natural environmen t has been successfully promoted as an ecotourism and nature-oriented tourism destination in recent years. For example, Sipandan Island, Redang Island and Layang-layang Island are considered to be among some of the worlds best nature island loving by local and foreigner tourist. (Ministry of Natural Resources and Environment, 2006) Price Requirements of Green Products In last few years, many firms are suffered the problem of alternative energy because the actual demand for the resource and material is high to supply to manufacture non green products. (Leslie J. Vermillion. and Justin, 2010) Therefore, this impact the market selling price is expensive with the material cost is high, but nowadays firms can get supply material by solar panels and wind turbines to manufacture the green products such as hybrid car. Although the prices is high but the green product is of high quality is reasonably to the priced and consumers are able to pay more money for them. In the 21 century, from Rothe and Bensons (1974) notion of intelligent consumption for every consumer when they consumption of the products or services. (Rothe, 1974) Malaysian consumer has rights that are under protected by the regulations and various laws in Malaysia. For example, Federation of Malaysian Consumers Association (FOMCA) is the non-governmental establish by consumers organization t o defend the rights and interests of consumers that including control the green products market price. (FOMCA, 2009) Therefore, the consumers have more power than ever before to use intelligent agents to get the reasonable prices for the products and services, bid price on various offerings and promotion. Green consumer have evolved and research to understand the awareness levels of the consumer towards the green products and willingness to accept and pay a premium for the green product. In Malaysia, although consumer seems to be in favour of green product and willing to pay it but the government are taking their tolls or taxes on the peoples budgets. Therefore, by collect the taxes from the consumer when purchasing the green product are effects of the weakening Malaysias economy. Despite the Malaysia economic downturn to impact the people income level, but they still are willing to pay green products to reduce the emit carbon dioxide to save the earth. According to the 2009 National Green Buying Research survey, four of five people claim to still be buying green products throughout the recession. (GreenSeal, 2009) In latest few years, Malaysias government offers many environmental incentives for the manufacturing sector to reduce their cost to impact the selling price decrease. For example, organization have capital rebate up to 50 percent and exemption on import duties and sales tax for purchase of recycling machineries. Furthermore, in Malaysia culture background also related to perceptions of price and perceived fairness of the green products, therefore this report will research the Malaysian between Malay, Chinese and Indian who they more accepting than other ethnicities of price premiums on green products and organic foods. (Arnold, 2008) So from the Leslie J. Vermillions research 65% of consumers feel that paying more for sustainable products is not an option. (Leslie J. Vermillion. and Justin, 2010) This show that, the growth in consumption of the green products or services and it focuses on the factor such as high quality and health benefits to the consumers. (Arnold, 2008) According the reported, in the America State the green market is about $250 billion, while 63 million of consumers are directed in order to buy pure green products and reject the non viable alternative, offered to them by the conventional market. (Reitman, 1992) Quality of Green Products The product content requirements from consumers specify that purchased products must have desirable green attributes such as recycled or reusable items. In the Malaysia, company can require their suppliers must have to develop and maintain the Environmental Management Systems (EMS) to certify as fully compliant with one of the recognized international standards such as ISO 14001 and Green Guard Certification. In addition, in Malaysia green purchasing activities are carried out by large firms in order to control the performance of suppliers. For example, electronics industry such as Sony, HP, Intel and Microsoft have established the Electronic Industry Code of Conduct (EICC). (Tarig Khidir ElTayeb, 2010) This code approve that the health and safety, environment, and business ethics to the products before supply to the shop. This evidence many large firms tend to set strict green standard for their purchased inputs and require their suppliers have same standard to strict the quality of green products. Therefore, the prices of the green products are expensive because one of the impacts is the higher of quality. For example, the indoor air quality of green building is significantly higher than other methods of building because environmentally friendly products are used in the building process such as high quality carpeting and paint to more healthy. (Saga, 2005) The consumers perspective towards green products has produced conflicting results in its analysis of whether or not consumers believe green products are lower or higher quality. According (DSouza, 2007) studies, found that consumers believe that green products are priced higher and of poorer quality than the non-green alternative. Therefore, Ministry of Natural Resources and Environment (NRE) and Department of Environment (DOE) will cooperation with the NGO to inspect the quality and healthy towards the green attributes such as recycled or reusable material items to manufacture the green products. In addition, restrictions to the green product must not contain environmentally undesirable attributes of chemical material such as lead, CFC chlorofluorocarbons, and plastic foam in packaging material. Although the results did vary between the green products with non environmental products, almost half of the respondents in the countries surveyed indicated that green products offer compara ble the quality over conventional alternatives. Education and Supplier Information Recently, there is an environmental or ecological angle to virtually everything in the world. It is now commonplace to hear of recycle products or green products, organic food, eco-tourism, hybrid car or environment friendly car, green housekeeping, eco-building, greening libraries (e-library) and also eco-feminism. (Ephraim, 2003) Therefore, the education and technology are very important for the new generation to creativity and innovative the product to become a green ideas and concept to save earth. Recently in the Malaysia, more versus less information to the Malaysian therefore without the information that will influence the consumers confident towards the green products. If the knowledge gap and information with more detail on the uses and values of green products prevents consumers in committing themselves to any purchase decisions. According the concept of ecological imperatives by Fisk (1973) reflect that the need to educate the consumer to become aware of environmental prob lems and their relation to their consumption and perspective to the green products. (Fisk, 1973) In addition, from the understanding the subject and the outcome of the study should help marketers and the government to device the strategies which will motivate the customers to buy green product and save the earth. Today, every standard of education in Malaysia from kindergarten until university should educate the knowledge about the problems consequence by the humans attitude to destroy the earth. For example, every one also know the vehicular pollution is a bigger threat to human health than any other type of air pollution because this pollution exists at that level from where humans use air to breath. Therefore, human in the 21 century they must learn and get the knowledge to take action to reduce the global warming. Such as research the new source like replace driving fuel in future, low pollution cars, less eat meat change to be vegetarian food and making the homes energy efficient. (Brower, 1999) In addition, educators and writers may also be considered green workers if they focus on informing people about green principles such as books author. An educator might do this at an elementary school as part on the subject. (Admin, 2011) In the conclusion, consumers with higher education levels are more inclined to buy green because they got knowledge to do a lot of research to the green products or services before purchasing. According to (Neff, 2007) studies, Hispanic and Asian populations are more likely to be green consumers than African Americans. For example, college students in order to get them demand that the universities use their environmentally friendly products. In the Malaysia, the information and education to the people are less and no distinct to the public. Therefore consumers they cant get the information of green products with more detail. This is because many companies tend to exaggerate the environmental benefits of using their products. In addition, it also has some companies mislead the information and knowledge to the consumers about the biodegradability and recyclability of their products. Because of the unethical firm attach importance to the profitability and deceptive practice of companies attempts to make themselves appear more environmentally friendly than they actually are, therefore causing the environmental marketing claims are often vague and confusing. (Deen Shireen, 2002) In this case, many environmental organizations and the ministry of the environment, such as Resources for Living Green and Ministry of Natural Resources and Environment (NRE), are also taking action to prevent and protect companies from deceiving cust omers about the eco-friendliness of their products. Although more than half of consumers wanted more detailed information, many consumers they wanted the labels with used simpler words to easy understanding. According (Drichoutis et al., 2006), the type of information to be relevant and suggest that consumers might be unwilling to evaluate more complicated information. Furthermore, (Heimbach, 1982) also explain that more information is not always better and that consumers prefer information that directly concerns their health. Therefore, organic products are viewed as promoting a healthy lifestyle, it appears that values concerned with health and environment influence attitudes toward buying organic food. In the Malaysia, if without the education and information for the consumer that will influence the marketplace and profit for the organization. Therefore, the green education is very important to educate the dumb million about the knowledge of green products and reduce, reuse and recycle.