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Mahdi Mesbahi GM04701

                             Masoud Moghadas GM04443

                           Mark Liew Han Loong GM04130


Product attributes to motivate
consumers, and consumer attitudes in
Environmentally Friendly Products
(EFP) purchasing.
              Consumer Behavior| GSM5230
Table of Content
1. Introduction
2. Literature and Review
3. Methodology
4. Data Analysis and Results
5. Discussion
6. Conclusion& Recommendations
Introduction
by Mahdi Mesbahi
Introduction

The Environmentally Friendly Product
(EFP) is defined as a product which
has no damage to the environment
during      manufacturing,   use,   or
disposal.
Introduction


• Enacted roles and regulations by government are
  restrictions that enforce producer to produce such
  products

• Consumers demand that might be consequence of
  more contribution towards the environmental
  protection, are persuading them to produce green
  products
Introduction

• The final decision maker is consumer
• Without understanding the motives behind consumer’s
  behaviour, this issue can’t deal with only by governmental
  rules and regulations nor by promotion strategies adopted by
  marketers
• Previous studies mainly focused on different angles of
  consumer behavior in purchasing EFP, and attitudinal factors
  as predictors of intention, and effects of psychological and
  situational factors. The gap is missing factors which is
  clarification of dynamics and motives behind purchasing of
  EFP.
Introduction


• What product attributes do consumers consider as
  motivation for purchasing environmentally friendly
  products?

• Determine consumer attitudes toward intention to
  purchase environmentally friendly products.
Literature Review
by Masoud Moghaddas
Literature Review
Year        Name                                        Findings

       Schwepker and     Policymakers may benefit more from informing the public of the solid
1991
       Cornwell          waste disposal problem.

                         The social factors and personal factors are main Important factors in
                         decision making for purchasing of EFP.

                         Policymakers need to educate consumers regarding more alternatives
2010   Kim & Kim         of green behavior and persuade them to accept the purchase of an
                         EFP.

                         Social connectedness, self-esteem and perceived seriousness of
2012   Ahn&Koo           environmental issue are important factors to motivate consumer for
                         pro-environmental purchasing behavior.

       Theogersen&Sand   Green consumers do not spend more time and effort than
2012
       ager              conventional consumers.
                         Consumer understand the challenges of environment, but their
       Arminda and
2010
       Mario
                         concerns aren’t always translated into purchase of environmentally
                         friendly products.
Methodology
by Mark Liew Han Loong
Methodology

• exploratory study to understand consumer behavior towards
  the purchasing of environmentally friendly products.
• questionnaire were developed quantitatively
• 3 key constructs ie.
   – What are the important factors which consumers use to determine
     how they chose EFP in their everyday purchases,
   – preference and choice of their EFP purchases in relation to the
     availability of an EFP option, and
   – ranking of the factors which affects the purchase of a EFP.
   – There was also 5 demographical questions to understand the spread
     of demographics within the sample taken for this survey.
Methodology

• responses to the first EFP related questions were made using
  a five-point Likert-type scale (Not Important to Moderately
  Important to Extremely Important)
• second question was also using a five-point Likert-type scale
  (Not Agree to Moderately Agree to Extremely Agree)
• third question was based on a ranking of 1-5, 1 is the most
  effective factor and 5 is the least effective one.
• demographic questions were fixed choice answer options.
• 118 graduate students from GSM UPM were surveyed
  Wrong data: 13
  Number of final observations: 105
Data Analysis and Results
by Mahdi Mesbahi
Data Analysis and Results

               General Characteristics of Samples
Age                Frequency Percentage   Cumulative percentage
20-25                  37       35%               35%
25-30                  32       30%               66%
30-35                  17       16%               82%
35-40                  10       10%               91%
40-45                  7         7%               98%
More than 45           2         2%               100%
Race               Frequency Percentage   Cumulative percentage
Malay                  50       48%               48%
Indian                 14       13%               61%
Chinese                31       30%               90%
Other                  10       10%               100%
Data Analysis and Results

               General Characteristics of Samples
Sex                Frequency Percentage   Cumulative percentage
Male                  36        34%                 34%
Female                69        66%               100%
Study Status       Frequency Percentage   Cumulative percentage
Full-time             68        65%                 65%
Part-time             37        35%               100%
Work experience    Frequency Percentage   Cumulative percentage
0-2                   46        44%                 44%
2-5                   24        23%                 67%
5-10                  14        13%                 80%
More than 10          21        20%               100%
Data Analysis and Results

                                              Intention
                    6


                            R2=0.52
                              =0.74
                    5
                            Obs=105
                            Obs=90
                    4
Intention’s score




                    3



                    2



                    1



                    0
                        0    1          2          3          4      5   6



                                      Average of 5 factors’ scores
Data Analysis and Results


                                                                             Standard
        Regression Statistics                               Coefficients                t Stat
                                                                               Error

Multiple R                      0.86   Intercept      cte        0.65          0.20     3.24

R Square                        0.74   Price          Pr         0.10          0.04     2.66
                                       Availability   Av         0.18          0.04     4.52
Adjusted R Square               0.73
                                       Awareness      Aw         0.22          0.04     4.98
Standard Error                  0.26
                                       Information    In         0.12          0.04     2.92
Observations                    105    Attitude       At         0.19          0.03     5.79

                 Average Scores which were assigned to Factors
Price    Availability      Awareness         Information          Attitude       1:Not important
  4.1           4.0               3.8                3.7               3.8       5:Extremely important
Data Analysis and Results
     Rank   Price   Availability   Awareness   Information   Attitude

      1     57%         9%            6%          11%         18%

      2     13%        51%           12%          17%          6%

      3     11%        18%           34%          18%         19%
      4      9%        13%           32%          28%         18%
      5     11%         9%           15%          27%         39%

1.   Price of EFP
2.   Availability of EFP
3.   Awareness of consequences of EFP purchasing
4.   Getting information about EFP through social networks
5.   Consumer’s attitude about EFP
Discussion
by Masoud Moghaddas
Discussion
• Price and availabilities are two important factors that
  motivate consumer to purchase EFP. It means that consumer
  may not spend more money and time to purchase them.
Discussion
• The more information regarding EFPs and the more
  awareness of the consequences having consumers, the more
  motivation towards purchasing them.
Discussion


• It is support the findings of Schwepker &Cornwell(1991) as
  information is a basis to purchase pro-environmental
  products.



• It is also support findings of Ahn& Koo (2012) regarding the
  role of ‘social connectedness’ and ‘perceived seriousness of
  environmental issues’ as important motives for
  environmentally friendly behavior.
Discussion


• “Separation of recyclable waste” is moderately important for
  respondents, meaning that their concern towards
  environmental issues is not high.
• It makes more clear their attitudes towards ‘price’ and
  ‘availability’ as extremely important factors for decision
  making to purchase EFP.
• It highlights the role of education and perception regarding
  environmental issues.
• It is also supporting the findings of Kim&Kim(2010) in which
  policymakers need to educate and persuade consumers
  towards pro-environmentally friendly behavior.
Discussion


• The results of part C show that the most important factor on
  decision making to purchase EFP is firstly ‘price’ and secondly
  ‘availability’.
• It means that to motivate consumer for purchasing EFP, the
  price of these products should not be higher than the normal
  products and also they should be well distributed in market so
  that being easy accessible.
• It is also support the findings of Thogersen and
  Jorgensen(2012) that green consumers do not spend more
  time and effort than conventional consumers.
Discussion


• The least important factor on decision making to purchase
  EFP is ‘attitude’.

• Again it shows that the role of information, education and
  also promotion could be very important in intention of
  consumer towards purchasing EFP.

• It shows that the strategy of attitude change is necessary to
  follow by producers and policy makers.
Conclusion
by Mark Liew Han Loong
Conclusion &Recommendations

• To encourage consumers to purchase EFP, marketers and
  policymakers should be simultaneously active.
• Marketers should focus on competitive price, extensive
  distribution system and increasing awareness and information
  through social networking and also promotion.
• Policymakers should be firstly focused on increasing
  awareness of consumers towards environmental issues and
  persuade them to behave pro-environmentally, and then
  enacting related rules and regulations.
• As a theoretical points of view, they both should try to using
  ‘strategy of attitude change’ by changing the knowledge
  function as one of the basic motivational function.
Thank You
Present like Professionals




                     Created by:

                               Mahdi Mesbahi
                     mahdi.mesbahi@gmail.com

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Consumer Behaviour

  • 1. Mahdi Mesbahi GM04701 Masoud Moghadas GM04443 Mark Liew Han Loong GM04130 Product attributes to motivate consumers, and consumer attitudes in Environmentally Friendly Products (EFP) purchasing. Consumer Behavior| GSM5230
  • 2. Table of Content 1. Introduction 2. Literature and Review 3. Methodology 4. Data Analysis and Results 5. Discussion 6. Conclusion& Recommendations
  • 4. Introduction The Environmentally Friendly Product (EFP) is defined as a product which has no damage to the environment during manufacturing, use, or disposal.
  • 5. Introduction • Enacted roles and regulations by government are restrictions that enforce producer to produce such products • Consumers demand that might be consequence of more contribution towards the environmental protection, are persuading them to produce green products
  • 6. Introduction • The final decision maker is consumer • Without understanding the motives behind consumer’s behaviour, this issue can’t deal with only by governmental rules and regulations nor by promotion strategies adopted by marketers • Previous studies mainly focused on different angles of consumer behavior in purchasing EFP, and attitudinal factors as predictors of intention, and effects of psychological and situational factors. The gap is missing factors which is clarification of dynamics and motives behind purchasing of EFP.
  • 7. Introduction • What product attributes do consumers consider as motivation for purchasing environmentally friendly products? • Determine consumer attitudes toward intention to purchase environmentally friendly products.
  • 9. Literature Review Year Name Findings Schwepker and Policymakers may benefit more from informing the public of the solid 1991 Cornwell waste disposal problem. The social factors and personal factors are main Important factors in decision making for purchasing of EFP. Policymakers need to educate consumers regarding more alternatives 2010 Kim & Kim of green behavior and persuade them to accept the purchase of an EFP. Social connectedness, self-esteem and perceived seriousness of 2012 Ahn&Koo environmental issue are important factors to motivate consumer for pro-environmental purchasing behavior. Theogersen&Sand Green consumers do not spend more time and effort than 2012 ager conventional consumers. Consumer understand the challenges of environment, but their Arminda and 2010 Mario concerns aren’t always translated into purchase of environmentally friendly products.
  • 11. Methodology • exploratory study to understand consumer behavior towards the purchasing of environmentally friendly products. • questionnaire were developed quantitatively • 3 key constructs ie. – What are the important factors which consumers use to determine how they chose EFP in their everyday purchases, – preference and choice of their EFP purchases in relation to the availability of an EFP option, and – ranking of the factors which affects the purchase of a EFP. – There was also 5 demographical questions to understand the spread of demographics within the sample taken for this survey.
  • 12. Methodology • responses to the first EFP related questions were made using a five-point Likert-type scale (Not Important to Moderately Important to Extremely Important) • second question was also using a five-point Likert-type scale (Not Agree to Moderately Agree to Extremely Agree) • third question was based on a ranking of 1-5, 1 is the most effective factor and 5 is the least effective one. • demographic questions were fixed choice answer options. • 118 graduate students from GSM UPM were surveyed Wrong data: 13 Number of final observations: 105
  • 13. Data Analysis and Results by Mahdi Mesbahi
  • 14. Data Analysis and Results General Characteristics of Samples Age Frequency Percentage Cumulative percentage 20-25 37 35% 35% 25-30 32 30% 66% 30-35 17 16% 82% 35-40 10 10% 91% 40-45 7 7% 98% More than 45 2 2% 100% Race Frequency Percentage Cumulative percentage Malay 50 48% 48% Indian 14 13% 61% Chinese 31 30% 90% Other 10 10% 100%
  • 15. Data Analysis and Results General Characteristics of Samples Sex Frequency Percentage Cumulative percentage Male 36 34% 34% Female 69 66% 100% Study Status Frequency Percentage Cumulative percentage Full-time 68 65% 65% Part-time 37 35% 100% Work experience Frequency Percentage Cumulative percentage 0-2 46 44% 44% 2-5 24 23% 67% 5-10 14 13% 80% More than 10 21 20% 100%
  • 16. Data Analysis and Results Intention 6 R2=0.52 =0.74 5 Obs=105 Obs=90 4 Intention’s score 3 2 1 0 0 1 2 3 4 5 6 Average of 5 factors’ scores
  • 17. Data Analysis and Results Standard Regression Statistics Coefficients t Stat Error Multiple R 0.86 Intercept cte 0.65 0.20 3.24 R Square 0.74 Price Pr 0.10 0.04 2.66 Availability Av 0.18 0.04 4.52 Adjusted R Square 0.73 Awareness Aw 0.22 0.04 4.98 Standard Error 0.26 Information In 0.12 0.04 2.92 Observations 105 Attitude At 0.19 0.03 5.79 Average Scores which were assigned to Factors Price Availability Awareness Information Attitude 1:Not important 4.1 4.0 3.8 3.7 3.8 5:Extremely important
  • 18. Data Analysis and Results Rank Price Availability Awareness Information Attitude 1 57% 9% 6% 11% 18% 2 13% 51% 12% 17% 6% 3 11% 18% 34% 18% 19% 4 9% 13% 32% 28% 18% 5 11% 9% 15% 27% 39% 1. Price of EFP 2. Availability of EFP 3. Awareness of consequences of EFP purchasing 4. Getting information about EFP through social networks 5. Consumer’s attitude about EFP
  • 20. Discussion • Price and availabilities are two important factors that motivate consumer to purchase EFP. It means that consumer may not spend more money and time to purchase them.
  • 21. Discussion • The more information regarding EFPs and the more awareness of the consequences having consumers, the more motivation towards purchasing them.
  • 22. Discussion • It is support the findings of Schwepker &Cornwell(1991) as information is a basis to purchase pro-environmental products. • It is also support findings of Ahn& Koo (2012) regarding the role of ‘social connectedness’ and ‘perceived seriousness of environmental issues’ as important motives for environmentally friendly behavior.
  • 23. Discussion • “Separation of recyclable waste” is moderately important for respondents, meaning that their concern towards environmental issues is not high. • It makes more clear their attitudes towards ‘price’ and ‘availability’ as extremely important factors for decision making to purchase EFP. • It highlights the role of education and perception regarding environmental issues. • It is also supporting the findings of Kim&Kim(2010) in which policymakers need to educate and persuade consumers towards pro-environmentally friendly behavior.
  • 24. Discussion • The results of part C show that the most important factor on decision making to purchase EFP is firstly ‘price’ and secondly ‘availability’. • It means that to motivate consumer for purchasing EFP, the price of these products should not be higher than the normal products and also they should be well distributed in market so that being easy accessible. • It is also support the findings of Thogersen and Jorgensen(2012) that green consumers do not spend more time and effort than conventional consumers.
  • 25. Discussion • The least important factor on decision making to purchase EFP is ‘attitude’. • Again it shows that the role of information, education and also promotion could be very important in intention of consumer towards purchasing EFP. • It shows that the strategy of attitude change is necessary to follow by producers and policy makers.
  • 27. Conclusion &Recommendations • To encourage consumers to purchase EFP, marketers and policymakers should be simultaneously active. • Marketers should focus on competitive price, extensive distribution system and increasing awareness and information through social networking and also promotion. • Policymakers should be firstly focused on increasing awareness of consumers towards environmental issues and persuade them to behave pro-environmentally, and then enacting related rules and regulations. • As a theoretical points of view, they both should try to using ‘strategy of attitude change’ by changing the knowledge function as one of the basic motivational function.
  • 29. Present like Professionals Created by: Mahdi Mesbahi mahdi.mesbahi@gmail.com

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