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GREEN PRODUCTS
ABSTRACT
With the issue of global climate change, it has not just made an active involvement of people in saving the
environment but it has also emerged into another business practice. Global climate crisis has created companies to
adopt into the practice of green marketing making consumers to have the choice of purchasing products that do not
harm the environment. Thus, the creation of green products. This paper is exploratory in nature and has three
objectives. The first objective is that to identify the types of green products consumers buy. While the second
objective is to determine what indicator in each motivational factor does encourage consumers to buy green products
most. Lastly, the main objective of this paper is to find out whether or not the motivational factors such as
environmental concern, perceived consumer effectiveness, reference group, environmental laws and regulations,
promotional tools, and consumer knowledge lead to the actual purchasing of green products by consumers.
Convenience sampling has been used to gather necessary data. With the aid of t-test, results have shown that the
motivational levels of each indicator in each motivational factor vary. Through the use of Pearson chi-square
statistical test, results have revealed that although some consumers are highly motivated it doesn’t lead to their
actual purchase of green products while others when highly motivated they lead to actual purchase.
Keywords: Green products; motivational factors; green marketing; green purchasing; indicators on green purchasing;
1. INTRODUCTION
For the past years, there has been an increased emergence on the production and consumption of green
products. Mazar and Bo Zhong (2009) reported that there is a remarkable growth of the global market for organic
and environmentally friendly product. At the same time, as environmental issues become more important to citizens,
they demand enhanced environmental performance from companies by exerting pressure on public policy makers to
enact regulations, taxes, permits, and penalties that motivate companies to improve their environmental performance
(Manikas and Godfrey 2010). Corporations are often, and quite justifiably, accused of harming the environment.
Many of their production processes and products do degrade the environment (Geoffrey Heal ). With this, companies
adapted the concept of green products in order to shift the negative impression.
Green products are products that will not pollute the earth or deplore natural resources, and can be recycled
or conserved. It is a product that has more environmentally sound content or packaging in reducing the
environmental impact. In other words, green product refers to product that incorporates the strategies in recycling or
with recycled content, reduced packaging or using less toxic materials to reduce the impact on the natural
environment (Chen and Chai 2010).
This research wants to identify the types of green products being purchased by the consumers. Moreover, it
is the goal of the researcher to determine what indicator in each motivational factor does encourage consumers to
buy green products the most. Furthermore, this research is aiming to find out whether or not the motivational factors
such as environmental concern, perceived consumer effectiveness, reference group, environmental laws and
regulations, promotional tools, and consumer knowledge lead to the actual purchasing of green products by
consumers.
This research is set on the purpose of knowing the impact of the factors that affect the purchasing decision
on green products. It is actually a continual effort for the researchers to add another set of knowledge on the existing
theories, principles, and practices on the subject green marketing. This study will then be a tool for the betterment of
the community and society as a whole. As students, the researchers would want the research to serve as useful
material in future purposes specifically as a reference for future researches, case studies, assignments and projects.
To the corporate world, this research would be another future conduct in the business community. Lastly, as
researchers, this study will be a fulfillment for societal concerns and academic well-being.
2. CONCEPTUAL BACKGROUND
2.1 MOTIVATIONAL FACTORS
3. CONCEPTUAL FRAMEWORK
Graphic diagram showing the motivational factors together with its indicators leading to actual purchase decision:
MOTIVATIONAL FACTORS
ENVIRONMENTAL CONCERN
Indicators
PERCEIVED CONSUMER
EFFECTIVENESS
Indicators
REFERENCE GROUP
Indicators
PROMOTIONAL TOOLS
Indicators
CONSUMER KNOWLEDGE
Indicators
Based on the conceptual background, the following hypotheses have been developed in relation to that of
consumers’ motivations in purchasing green products:
H1: Consumers who are concern in the environment will purchase green products.
H2: Consumers who believe that their actions will make a difference in solving environmental problem will
purchase green products.
H3: Consumers who are influenced by specific reference group will buy green products.
H4: Consumers who are influenced by environmental laws and regulations will buy green products.
H5: Consumers who are exposed to promotional tools regarding green products will purchase green
products.
H6: Consumers who are aware and knowledgeable of the environmental issues will purchase green
products.
H7: All indicators in each motivational factor encourage green consumers to buy green products.
4. METHODOLOGY
This research was conducted in order to determine which motivational factor leads to actual purchase. In
order to answer this problem, the researchers opted to obtain the view of consumers in Baguio City in line with this
topic. Specifically, a total of 400 consumer respondents within Baguio City were randomly selected to make up the
sample. Convenience Sampling was used as the method of distributing the questionnaires. With convenience
sampling, respondents were chosen in such a way that different groups of consumers will be represented.
Researchers floated the questionnaires in different places in Baguio City where consumers usually go. The
questionnaires were given to different group of consumers like students, housewives, private and public employees,
and businessmen, in order to have a holistic representation of the consumers in Baguio City. These selected
respondents answered a survey questionnaire structure in Likert format. The Likert survey was the selected
questionnaire type as this enabled the respondents to answer the survey easily. In addition, this research instrument
allowed the research to carry out the quantitative approach effectively with the use of statistics for data interpretation. In
order to test the validity of the questionnaire used for the study, the researcher tested the questionnaire to twenty
respondents. These respondents as well as their answers were not part of the actual study process and were only
used for testing purpose.The respondents were asked to rate each item on a 5-point Likert scale from 1 = strongly
agree to 5 = strongly disagree. Data gathered from this research instrument were then computed for interpretation.
Along with primary data, the researchers also made use of secondary resources in the form of published articles and
literatures to support the survey results.
The above table shows that when it comes to the products being purchased by consumers in Baguio, City, vegetable
and food are the products which are being purchased by consumers in Baguio City the most garnering a percentage
of 69.8 with a total of 279 respondents out of 400 respondents. This if for the reason that organic vegetable and food
are the products which are most available in the market and at the same time most affordable. While the product that
gained the lowest percentage with regards to Baguio City consumer purchases are the Organic cosmetics which has
a percentage of 22.8. This is for the reason that organic cosmetics are only being distributed to selected markets at
Baguio, City and at the same time, only few of these products are available in Baguio City and these products are not
affordable for most consumers.
Table 2 Relationship between Indicators of Environmental Concern and Actual Green Purchasing
Actual Purchase Decision
Indicator
X2 p
1. I am concern for the environment. 15.523 0.050
2. I am motivated to buy products because I want to contribute in saving the
19.732 0.011
environment.
3. I am motivated to buy products because they do not harm the environment. 19.581 0.012
4. I am motivated to buy products because I want to protect the environment. 48.650 0.000
Results indicated that there is a significant relationship between all the indicators of the motivational factor
environmental concern and the actual purchase decision. This is validated by the Pearson chi-square statistical test
results which are as follows: concern for the environment (X 2= 15.523, p= 0.050), the want to contribute in saving the
environment (X2= 19.732, p= 0.011), purchase of environment-friendly products (X2= 19.581, p= 0.012), and
environment protection (X2= 48.650, p= 0.000). These significant results imply that when consumers are motivated by
the indicators of environmental concern, it actually leads to the purchasing of green products. This is because people
who have environmental concern practices environmental friendly behaviors such as buying green products. Many
studies have shown (insert journal supporting the statement). However, (insert journal contradicting the results)
According to Manierri T. et Al 1997, predictably, people’s level of environmental concern is linked to their interest and
willingness to purchase green.
Table 3 Relationship between Indicators of Perceived Consumer Effectiveness and Actual Green Purchasing
Table 4 Relationship between Indicators of Reference Group and Actual Green Purchasing
Actual Purchase Decision
Indicator
X2 P
1. I am influenced by my friends to purchase environment-friendly products. 13.950 0.083
2. I am influenced by my family to purchase environment-friendly products. 10.561 0.228
3. My co-workers influence me to purchase green products. 28.415 0.000
4. I am influenced by my neighbors to purchase green products.
8.630 0.374
5. I am a member of an organization which advocates caring, protecting and
saving the environment, thus I am motivated to purchase environment- 22.542 0.004
friendly products.
Table 4 depicts that actual green purchasing is affected by the influences of the consumers’ friends (X 2=13.950,
p=0.083), co-workers (X2= 28.415, p=0.000), and co-members in pro-environment organizations (X2= 22.542, 0.004).
These indicators are the ones which lead to actual buying of green products. In the study of Chartel et al 2002,
references groups are frequently used in advertising but rarely associated in green products. With these, marketers
can adopt the findings of this research, such that the said reference groups can be associated to green products in
order to effectively advertise these products and create purchase. Surprisingly, the consumers’ family does not have
a significant impact to the actual purchasing behavior (X2 = 10.561, p=0.228). This is maybe because green products
are usually perceived more of as luxury goods. And with this, encouragement from a family could hardly be expected
because it wants practicality. This is supported by the study of Hoyer and Maclnnis, 2004 which states that the
strength of normative influence of the consumers’ family purchasing decision depends on the characteristics of the
product (e.g. luxury rather than a necessity). In line with this, it could also be said that the reason consumers are
more influenced by their friends, co-workers, and co-members in pro-environmental organizations is because of peer
pressure.
Table 5 Relationship between Indicators of Environmental Laws and Regulations and Actual Green Purchasing
Actual Purchase Decision
Indicator
X2 p
1. I am motivated to buy green products because of the sanctions imposed by
17.072 0.029
the government concerning environmental conservation
2. I do not want to disobey the environmental laws and regulations; thus, I am
7.759 0.457
encouraged to purchase products that do not harm the environment.
3. I am motivated to purchase products that are environment-friendly because I
12.467 0.132
am aware of the existing environmental laws and regulations.
4. I agree with the imposed environmental laws and regulations; thus, I am
motivated to purchase products that do not harm the environment. 26.270 0.001
Government sanctions on environmental conservation (X2=17.072, p=0.029) and consumers’ favorable response on
imposed environmental laws and regulations (X2=26.270, p=0.001) significantly affect the decisions of consumers
regarding the actual purchase. This means that these indicators do not only motivate consumers but actually results
to actual green purchasing. This is because of the reason that people are afraid of the punishments that might be
given to them if they do not follow these governmental laws and regulations. This is being supported by the study of
Paco et.al.2009 where in environmental laws and regulations being imposed by the government affect consumers’
actual purchase of green products because of the fear of being penalized.
Table 6 Relationship between Indicators of Promotional Tools and Actual Green Purchasing
Actual Purchase Decision
Indicator
X2 p
1. I am encouraged to purchase products that are safe to the environment 29.820 0.000
because I am convinced by the television and radio advertisements.
2. I am motivated to buy green products because of the print advertisements
40.631 0.000
(e.g. Billboards, brochures, magazines, newspapers, and the like.)
3. I am motivated to purchase products that are environment-friendly because I
11.543 0.173
am convinced by the endorsers of the product.
4. I am encouraged to purchase these products because of the online
advertisements concerning environment-friendly products. 29.481 0.000
Results indicated that only three indicators of the promotional tools have significant relationship with the actual
purchasing decision. Broadcast media (X2=29.820, p=0.000), print advertisements (X2=40.631, p=0.000), and online
advertisements (X2=29.481, p=0.000) do not only motivate consumers to purchase but these motivations actually
results to actual buying of green products. Since these are the promotional tools the consumers are most exposed
with, recognition of the green products promoted through these media will be higher. This is being supported by
Polonsky, 1994 where in the study stated that the exposure of consumers to the various media promoting green
products affect purchase behavior.
Table 7 Relationship between Indicators of Consumer Knowledge and Actual Green Purchasing
Actual Purchase Decision
Indicator
X2 p
1. I am motivated to purchase environment-friendly products because of my
32.855 0.000
knowledge about global warming.
2. I am encouraged to purchase products that are environment-friendly because
16.677 0.034
I am informed with the different pollutions.
3. I am encouraged to buy environmentally friendly products because I am
15.965 0.043
knowledgeable about recycling.
4. I am motivated to buy environmentally friendly products because I have
knowledge about segregation. 11.065 0.198
The indicators of consumer knowledge which led to actual purchasing are the following: consumers’ knowledge about
global warming (X2=32.855, p=0.000), various pollutions (X2=16.677, p=0.034), and recycling (X2=15.965, p=0.043).
These indicators significantly affect actual buying decisions. Moreover, the results imply that the effects of the
indicators do not stop in motivation but actually heads to consumers buying green products. This is contrast to the
results on knowledge regarding segregation with Pearson chi-square value of 11.065 (p=0.198). This means that
whether or not they are motivated by the information they have regarding segregation, they will buy green products.
According to the research of Alba and Hutchinson 1987, Knowledge was found to be significantly related to how
consumers gather, organize, and evaluate products, as well as being a significant predictor of environmentally
friendly behavior (Vining and Ebreo 1990; Chan 1999).
The factor average of perceived consumer effectiveness is 2.11 with a qualitative description of ‘Strongly-Agree to
Neutral’. This could be interpreted such that the mean value equals to 1 indicates that consumers ‘strongly agree’
with regards to the stated indicator and the more that the value is farther to 1, the more that consumers disagree with
the stated indicator. Among the perceived consumer effectiveness indicators, the “I am motivated to buy products
because I believe that I can contribute in saving the environment” indicator with a mean of 2.07 and qualitative
description of ‘Strongly-agree to Neutral’ encourages the green consumers to buy green products the most. In
relation with the above findings, study by Wiener et al (1991) states that perceived consumer effectiveness is distinct
from environmental concern and contributes uniquely to the prediction of certain pro-ecological behaviors. In addition,
differences in PCE are shown to be associated with differences in demographics and political affiliation. The results
suggest that motivating consumers to express their concern through actual behavior is to some extent a function of
increasing their perception that individual actions do make a difference.
The factor average of reference group is 2.75 with a qualitative description of ‘Strongly-Agree to Disagree’. This could
be interpreted such that the mean value equals to 1 indicates that consumers ‘strongly agree’ with regards to the
stated indicator and the more that the value is farther to 1, the more that consumers disagree with the stated indicator
Among the reference group indicators, the “I am influenced by my family to purchase environment-friendly products”
indicator with a mean of 2.48 and qualitative description of ‘Strongly-agree to Disagree’ encourages the green
consumers to buy green products the most. According to Rao and Childers (1992), reference-group influence may
vary depending on whether the influence is exercised by a peer group or by a family member.
The factor average of promotional tools is 2.52 with a qualitative description of ‘Strongly-Agree to Neutral’. This could
be interpreted such that the mean value equals to 1 indicates that consumers ‘strongly agree’ with regards to the
stated indicator and the more that the value is farther to 1, the more that consumers disagree with the stated
indicator. Among the environmental laws and regulations indicators, the “I am encouraged to purchase products that
are safe to the environment because I am convinced by the television and radio advertisements” indicator with a
mean of 2.34 and qualitative description of ‘Strongly-agree to Neutral’ encourages the green consumers to buy green
products the most.
The factor average of consumer knowledge is 2.05 with a qualitative description of ‘Strongly-Agree to Neutral’. This
could be interpreted such that the mean value equals to 1 indicates that consumers ‘strongly agree’ with regards to
the stated indicator the more that the value is farther to 1, the more that consumers disagree with the stated indicator.
Among the consumer knowledge indicators, the “I am motivated to purchase environment-friendly products because
of my knowledge about global warming” indicator with a mean of 1.99 and qualitative description of ‘Strongly-agree to
Neutral’ encourages the green consumers to buy green products the most.
Highest Lowest
Motivational Mean Qualitative
t-stat P-value Indicator Indicator
Factors (±SD) Description
Mean Mean
Strongly agree- (t stat
Environmental 1.98 P-value =0.00 2.12 1.68
neutral =9.58)
Concern (±.89) Significant (± 0.86) (±0.90)
Perceived Strongly agree- (t stat P-value =0.00
2.11 2.15 2.07
Consumer neutral =67.90) Significant
(±.85) (± 0.80) (±0.85)
Effectiveness
P-value =0.00
(t-stat
2.75 Strongly agree- Significant 2.93 2.48
Reference Group =29.33)
(±1.23) disagree (±0.96) (±0.95)
2.05
(t-stat P-value =0.00
Consumer (±.91) Strongly agree – 2.12
=39.15) Significant 1.99 (±0.93)
Knowledge neutral (± 0.88)
The table shows that motivational factors’ qualitative descriptions tend to vary from strongly agree-neutral and
strongly agree-disagree. This means therefore that consumers give each motivational factor a distinct degree of
importance. The standard deviation shows however, that motivational factors have more tendencies to be neutral
than otherwise.. Moreover, the table also includes in the last two columns the Highest Indicator Mean and the Lowest
Indicator Mean in order to show that different indicators per factor have different qualitative description of the
consumers’ motivational level. The highest indicator mean shows up to what motivational level consumers’ are
encouraged to purchase green products, while the lowest indicator mean shows up to what motivational level
consumer’s are less encouraged to purchase green products. Base on the table, the motivational factor that
encourages the consumers the most is environmental concern while the motivational factor that least encourage the
consumers is reference group. These findings are supported by previous empirical evidence emphasized that
environmental concern is a major factor in the consumer decision making (Zimmer et al., 1994; Wagner, 1997;
Ottman, 1998) and that studies have found positive correlations between environmental concern (i.e. attitude) and
environmental friendly behavior (Roberts and Bacon 1997).
Although the influence of the consumers’ family has the highest motivational level, it was shown that it does
not lead to actual purchase, and reference groups such as friends, co-workers and co-members in pro-environment
organizations are the ones that lead to actual buying of green products. The consumers’ favorable response on
imposed environmental laws and regulations encourages consumers to procure green products the most. Whereas,
this indicator together with government’s sanction on environmental conservation lead consumers’ decision to actual
purchase. Meanwhile, television and radio advertisement serves to be the most influential promotional tool indicator.
Together with this broadcast media are print and online advertisements which results to consumers’ actual green
purchasing. Lastly, among the indicators of Consumers’ Knowledge, their knowledge on global warming motivates
them the most in purchasing green products. And jointly with this indicator are the knowledge on various pollutions
and recycling which lead consumers’ to actual procurement of green products. Furthermore, among all the
motivational factors, environmental concern encourages consumers to buy green products the most while consumer
knowledge has the lowest bearing on their actual purchasing decision.
As the current research was restricted to the investigation of the barriers in purchasing green products,
future study should be devoted on the hindrances why consumers did not reach to the actual purchasing of green
products.
For future research, a study can be made focusing on the subject of demographics such as age, gender,
nationality, income/allowance and the like wherein for example the researcher can get the significant difference
between male and female in terms of their purchasing behavior.
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