Green consumer behavior and influencing factors

Green consumer behavior and influencing factors This chapter literature review is presented by using review of previous studies. The literature explains green consumption, green consumer behavior and factors influence consumer behavior. During the past decade environment become a serious issue that leading to environmental problems have been concerned from public and the environmental awareness has occurred. Environmental knowledge from media, society, or education are boosting that lead to consumer behavior have been changed (Wagne,1997). Many companies consider about environmental issue force and start to take it to be part of corporate management (Reinhardt and Vietor, 1996). It causes the demand of green products is increasing. Many studies found out that green consumption pattern in variable factor widely base on consumption decision that partly on the environmental attributes (Krarup and Russell, 2005). In 1970, many companies were pressured by society and consumer; therefore, environmental marketing involves offering consumer with more socially acceptable product(Peattie, 2002).There is evidence that in 1988 many countries in the world have adopted the green label in order to support environmental behavior (Peattie, 2002). Green label is the label that shows the reduced environmental impact over the product life time (Rex and Baumann, 2006) and this lead to an increase of green consumption because green label also help some consumer who cannot distinguish green product from conventional product(Morris, 1997). Sheth mentioned that in 1990 almost 10% of new product was launched in form of green or environmental friendly. Although Bleda and Valente (2009) suggested that green label can use for solving the environment problem, Blair (1992) claimed green product cannot stop environmental harm. It only can be less harm which green product characteristics is less impact global environmental problem, design to be re-used or recycle, non-polluting, minimal packaging, local obtainable materials, no test animal. This is supported by Alwitt and Berger (1993)s reported that 70% of consumer concern about environment issue (Vantomme et al., 2004). Moreover, Tnsglobal (2007, p11) conducted survey in 12 countries around the world. It was found that for automobile, 53% of respondents said the environment has a significant or large influence on their day-to-day purchasing decisions. For food items, the figure is 49%. Household goods at 43% and then health beauty products at 41% come next. It can be seen that there are green consumer in all of products type. Besides, Eco-electrons (2009) reported that 81% of U.S. con sumers are willing to pay on green product, and 79% have a positive brand image with green brand. 2.2. Green consumer Green consumers is one who avoids products that are likely to endanger the health of the consumer or others; cause significant damage to the environment during manufactory, use or disposal; consumer a disproportionate amount of energy; cause unnecessary waste; use material derived from threatened species or environment; involve unnecessary use of, or cruelty to animal; adversely affect other countries (Elkington,1994 cited in Strong, 1998) While Moisander and Peronen (2002) mentioned that green consumers are the consumer who has morally oriented behaviour that is reinforced from their need or other, aiming to make better life of society. Wagner (1997) said that green behaviour cannot occur though only general environmental concern, the actual behaviour will be take place when specific environmental exist. In other word, green consumers who have green consciousness will have green behaviour, while Peattie (1992) observed that green consumer in one market is not necessary to be green c onsumer in other. This depends on their own behaviour attitude toward specific products, and the linked between green information and product information. Some consumer cannot separate between green product and general one, this lead to available green information and green label that help consumer make purchase decision. Moreover, an increase of green information also lead to the rise of green consumer and cause many companies behave environmental performance. However, there is no study about green consumer in Thai cosmetic market. Many researches characterise on green consumer that they are female, high education, high income, high social class (Peattie, 1992; Wager, 1997; Barr, 2003; Chen, 2007). There is no evident of Thai green consumer demographic. This research will investigate green consumers demographic, namely gender, age, status or income in Thai green cosmetic market in order to ascertain the exits potential segmentation. 2.2.3 Green consumer decision process Generally, consumer decision process consist of 5 stages ,namely, motivation, information search, evaluation of alternative, purchase choice, purchase outcomes. Understanding the determinant of each stage from beginning through the last stage is need in order to run the campaign or marketing mix which is suitable target consumer. Consumer can skip the stage or reverse some stage; it is necessary to pay attention in all stages (Wils n, Richard and Gilligan, 2007; Kotler and Armstrong, 2004; Ouwersloot and Duncan, 2008). Peattie (2002) explained the step of green consumer decision process as same as general consumer decision process; however, green consumer behaviour is not simple as general consumer behaviour because green consumers tend to behave as environmental responsible that involving buying or avertable consumption. Moreover, green consumer behaviour pattern are easily changed. It can be said that green consumer behaviour is the consumer behaviour that concerning about environm ental issue or social criteria, and lead to the purchasing and non-purchasing decision (Peattie, 2002). They might not purchase the product and do alternative way that respond green challenge such as replace, maintain or dispose of product. Figure4. Greening the buying process model Source: Peattie,2002,p.84 First stage: Recognition of a need or want Generally, all needs can be explained though Maslows need hierarchy. Physiological needs or the lower need in the hierarchy aim to be satisfied first and the need will turn to next level such as safety needs, esteem needs and self-actualization. However, it is not necessary that the lower need is fulfilled as first, some people might want to meet the higher level need as first, for example, some people forgoing food and buy other product that meet their higher needs(Wilson, Richard and Gilligan, 2007; Fan, 2008). Peattie (2002) said that during 1980s green issues become significant issue to drive certain need at each level of Maslow model. Ordinary, consumers have physiological needs as basic needs. They need food, clothes and house, however, green consumers tend to consume as small proportion in order to reduce resources. Moreover, in safety needs level, green consumers concern about safety and health. They interest about either production of packaging or product, how is come from t hat this contribute the secured package such as tamperproof container (Mackenzie. 1990). This cause people trust more in green product because they think that green product is safety for them. Many people consume organic food or natural cosmetic instead chemical ones (Peattie,2002). The is evident that demand of cosmetic in Thai market is required nature ingredient that means that product are not tested on animal, recyclable package (Falk, J ,2007 Ponbamrungwong and Chandsawang, 2009 ). Moreover, green consumers needs are shaped from recognition of problem that is influenced from media coverage, advertising or pressure group about environmental problem (Wilson, Richard and Gilligan, 2007). Some cosmetic company using emotional appeal in their advertising that represent how they help the world ( bodyshop,2010)This lead to people is looking for alternative green product and become the generic desire to buy other green product in their life. Second stage: Information search When consumers aware their needs. Finding information is important for them (Sheth and Mittal, 2004). There are many sources which consumer can have information either personal source from friend and family, public source from media and magazine, commercial source from staff or brochures and experimental source by trying product (Kotler and Armstrong, 2004). Regarding Green consumers, they need much more information about product that relate to environment, particularly, household product. They seek information beyond the given-information from company. Consumers also look for their guide, therefore; many organizations and pressure group activity become important because they truly inform the information in terms of product, and suggest about situation that consumer face involves environmental issue (Peattie et al.,2002).This kind of organization such as Greenpeace, Earthwatch and PETA (people for the ethical treatment of animals). They provide the information on their website that people can easily access. This can be shown that internet source becomes the importance source for consumer. Sheth and Mittal, (2004) stated in cosmetic market, internet are significant source because they can compare the price and share opinion about product. Although, Grubow (2010) found that in some Asia countries such as china, consumer still seek informat ion from cosmetic store as the first choice, they will go back to internet to find furthermore information. There is no study about significant source in cosmetic market in Thailand. The examination on this point will be occurred in order to benefit the companies that doing in this firm. Third stage: Evaluation of alternative stages The study of Thai consumer decision-making styles on imported cosmetic brand products by Chaisitthiroj (2007) found that Thai women have many characteristics that cause the different evaluation of alternative such as brand conscious characteristic, quality characteristic. Brand conscious characteristic refers to the consumer who appreciate brand as the first factor, they seem to be insensitive in price. They believe that brands represent the quality of product, and the brand that represent frequently in public can effectively influence their decision making. In cosmetic market, Green cosmetic brand might be best choice for green consumer that respond their desire and encourage them to switch from other brand (Kotler and Armstrong, 2004). Price conscious characteristic account for consumer who prefers the low price, they make buying decision making on the product that lower price. Green consumers look for alternative product that can help environment, for example, they use bicycles in stead of car in short distance. However, green consumers do not evaluate only between products or brand, they consider on the way of alternative purchase behaviour. Some consumer might not consume new product and repair or maintain old product instead. Borrowing is alternative way that consumers believe that after they return product to owner, it will be conserved. Buying second- hand approach becomes popular. Green consumer can fulfil their need without use more resources. Brand loyalty also can be green consumer by using refill product rather than buy the competed package product (Peattie,2002).. Forth stage: make purchase choice Euromonitor International showed that the highest company value in Thai colour cosmetic market is Mistine Brand (This brand sell an item around 50 pence) while the body shop (green cosmetic brand) was ranked at top 20. This can be questioned that Thai women use price factor or income factor to make purchase on cosmetic product. However, there is no study of influence factor in green cosmetic consumer. Therefore, green cosmetic market need to understand Thai green consumer buyer pattern. Peattie (2002) explained that green consumer will buy the product in where can help environmental problem or welfare of society, for example, green consumer might purchase the cosmetic that be made from the developing area that represents reinvestment and environmental protection. Moreover, green consumers purchase when product is creditable that have eco-behaviour, Those products can be shown by using green label or eco-performance. They might not purchase the unreliable product. Regarding quantity, green consumers tend to buy product at the less level in order to reduce the resources or buy refill pack of product (Peattie,1992 Peattie,2002). Fifth stage: post purchase behaviour stage After consumer purchasing the products, companies need to know the consumer perception in terms of product meet their exception or not, because it can lead to a repeat purchase behaviour. The seller need to make consumer are satisfied. It is because present consumer can leads to new consumer or become loyal consumer (Kotler and Armstrong, 2004). Peattie (2002) mentioned that in this stage green consumers have different behaviour from convention consumer. Therefore, marketers should understand green consumer post purchase behaviour. Peattie (2002) divided post- purchase of green consumer into 5 behaviours. Product use change. Green consumers use the same product in different ways. They might act as environmental organization guide. For example drive at 50-80 km/miles in order to reduce car emission. Reuse of product. Green consumer will reuse the part of product that serves their other needs. They might use cookie container to keep other food. Product disposal. Green consumer carefully use the product in order to though the where can be useful, some green consumer sell it as second hand products or donate them. Recycle of waste packaging. Green consumers consider about recycle packaged. Many green consumers said that natural material of package can be the factor that influences their buying decision. Care and maintenance. Green consumers pay more attention to use product in order to extend product life cycle. Therefore, the products that are easily maintained will be the choice for them. 2.4. Factor influence consumer behaviour Figure. The framework consumer behaviour Source:Lancaster,Massingham,Ashford ( 2002,p.75) 2.4.1 Cultural factors It is difficult to deny that cultures generate behaviour norms, and it is important to connect culture and consumer behaviour. Understating culture is needed. Brassington and Pettitt (2006, p.127) explained that culture is the personality of society within which an individual lives. It manifests itself through the built environment, art, language, literature, music and the products that society consumes as well as through its prevalent beliefs, value systems and government. It also includes traditions, taboos, value, and basic attitude of society, nationality, religious and geographic. Wilson, Richard and Gilligan (2007) mentioned that this factor is the fundamental factor influencing buyer behaviour. Kotler and Armstrong (2004) supported that different society has different culture. Asia culture varies from western culture; it leads to different behaviour. This research will be conducted in Thailand where is located in Asia, hence understanding Asia culture is necessary. Buddhism has been in Thailand more than 2000 years. It can be said that Buddhism unwittingly becomes a part of Thai people life and it is a national religion of Thailand. Although these days many Thai people change their religion to other, more than 90% of Thai people still is Buddhism (Department of Religious Affairs, 2010). Buddhism teachings avoid persecute all animal, other people and society. They search for peaceful life. This concept is similar as green consumer concern in terms of avoidance of animal (and) environmental damage. However, it cannot judge that culture can motivate Thai women behave as green behaviour and buy green cosmetic. The finding of Johri and Sahasakmontri(1998) found that Thai consumer did not buy cosmetic because no tested on animal as the important factor. However, this finding is obsolete, when data was collected Thai people did not have sufficient information about environmental which differ as present. According to Hofstedes demission of cultural value Asia countries have high uncertainty avoidance. Uncertainty avoidance refers to uncertainty acceptance culture. In high uncertainty avoidance culture people tend to avoid the risk, change in their life that lead to the social risk of trying a new product is very high (Fan ,2009) Although, many studies examine the factor influencing Thai women behaviour in green cosmetic market, it is surprising that many studies did not use culture factor to measure in their studies (Prapakamol, 2001; Namsanguan, 2007, Chaisittiroj, 2007). As it can be seen from review that culture is significant factor that influence buying behaviour. , this research cannot overlook culture factor. This research will investigate the positive relationship between culture and buying behaviour in green cosmetic market in Thailand. H1. Culture is significant factor influence Thai women to buy green cosmetic 2.4.2 Group and reference group There are many theories stated that consumer behaviour is reinforced from social group. This is evident that the social group can influence consumer behaviour by group which each consumer belong (Kotler and Armstrong, 2004). Chen (2007) mentioned that people perform a behaviour that is related to people in their life (eg, family, friend, and other). Schutte and Ciarlante (1999) claimed that family is the fundamental group in Asia people life because family is the first place that giving experience of life. Family will transfer the traditional and the building block of a harmonious society. for example, if green cosmetic are believed as a good product from people in their family, the consumer will have high intention of buying green cosmetic, whereas if member of consumers family think that green cosmetic is not good, consumer will not buy green cosmetic (chen, 2007) Moreover, Fan (2009) said that Asians always follow the crowed in the consumption because Asians are collectivism that always interdependent on each other and the way they act follow and believe the group than individual. In other word, if green cosmetic is the popular product in Thailand and chemical one is rejected, Thai women will purchase green cosmetic instead chemical one. However, it is also important to reach the opinion of leader group to find out the characteristic which influence other member so as to easily access other member (Kotler and Armstrong, 2004). The study of Summers (1970) found that the opinion leader in cosmetic product is influence consumer behaviour. In USA opinion leader are younger, high educated. Similarly, opinion leader in Hungary are younger, high educated and they have been to Western Europe or the USA in recent year. Although their finding found that leader group characteristic is similar, there is a small difference that might cause from demographic (Coulter, Feick and Price, 2002). Furthermore, Brassington and Pettitt (2006) added that environmental friendly trends are quickly spread from reference group, peer-group or social group, and they affect on their member buying decision. Strong (1998) examined that in green market, children are significant key that influence on family buying decision because children are important source in family that can encourage or discourage buying power. Furthermore, Lee (2008) claimed that green consumption is a form of symbolic consumption. Therefore, there is possible that people will buy green product in order to be accepted from group. As green cosmetic products are quite new topic in this area that no enough guidance. However, Cosmetics are fashionable product and green products are acknowledged as environmental friendly in Thailand. There is a possible that group, opinion leader are significant factor that motivate Thai consumer when buying green cosmetic. H2. Social group is significant factor that influence Thai women to buy green cosmetic. 2.4.3 Status Solomon et al (2006) said that the product or services we purchase often will represent to other people know what our social class. Therefore, consumer behaviour always is influenced with this aspect because consumer the products as status symbols. Status also display to education and income, for example, wearing high price suits can display the individuals professional or career position. Similarly, Fan (2009) said that Asian people are the most status-conscious in the world. The important of status makes it imperative to project the right image, which usually means up-market and prestigious(Schutte, 2010,p.658).To be accepted from social Asians will buy product that express status, normally expensive product. Although, products display status, it does not mean that social class can influence all kind of product. Chao and Schor (1998) claimed that social visibility is a key of status consumption. Status will be important when consumers purchase only the products are always showed to public view. In cosmetic products, they found that women buy expensive lipstick and do not care about relationship between price and quality because women only want to show their status though lipstick brand which normally women carry lipstick with them everywhere ,while facial cleaner are perceived as non-visible product because consumer keep it at home. When they buy they always consider about relationship price and quality. In contrast, the study of pungpumput and ngamsanguan (2000) in buying cosmetic behaviour in Thai students shows that the relationship between price and quality is a significant factor influence student buying decision and they did not mentioned about relationship between status and buying behaviour. It cannot be summarised that status is not influence factor when Thai women buy green cosmetic. Therefore, this research will find out that status have positive relationship with buying green cosmetic product or not. H3. Status has positive relationship with buying green cosmetic behaviour. 2.4.4 Attitudes Attitudes refer to peoples feeling, tendencies, evaluation toward the object, idea or concept. People actions and learning are affected from attitude. In the other word, attitudes affect consumer behaviour (Kotler and Armstrong 2004; Ouwersloot and Duncan 2008; Pickett and Ozaki, 2008). That is reason why many marketers try to change consumer attitude. However, it is not always that attitude become behaviour. Sometimes positive attitude cannot generate the behaviour, for example, consumer want to buy green cosmetic but she may not have money to buy because green cosmetic is more expensive than chemical one (Pickton and Broderick, 2005).In terms of negative attitude, it cannot automatically stop a purchase as can see from example of cigarette smoking. The behaviour will be occurred, if strong attitude overcome negative aspect. It can be said that if the importance of purchase is high, the importance of attitude toward product will be high. Attitude will less influence in case the purc hase is a part of habit or routine (Pickton and Broderick, 2005). Kotler et al (2004) mentioned that attitudes are difficult to change, therefore, company should try not to change consumer attitude but the companies should design the message about their product or service which is suitable to their attitude. Pickett and Ozaki, 2008 argued that marketer can change consumers attitude by adapt consumer evaluation through inputting new belief. 2.4.4.1 Environmental attitudes Fisgbein and Ajzen mentioned that attitude is one significant aspect that creates behaviour. Environmentally friendly attitude causes eco-behaviour such as purchase green product this can confirm from many studies (Kim et al., 2005; Chen, 2007). Kim et al (2005) found that the environmental attitude or concern directly influence on green purchase behaviour, explaining that consumer who has strong environmental attitude concern will interest in the product that connect to their concern. Chen (2007, p.1016) also examined that consumers attitude to organic foods purchase is in turn positively. However, Barr and Gilg (2007) found that people who have environmental attitude tend to do green activities (recycle, reuse) rather than purchasing green product. Similarly, Peattie (1999) said that green consumer seek for alternative purchase behaviour such as borrow or repair instead of purchasing. In contrast, Baker and Ozaki (2008) claimed that belief shaped attitudes toward behaviour that become to behaviour intention. However, their finding showed that environmental attitudes are not important factor that generate environmental behaviour. They explained that actual behaviour is not necessary occur from what they think is good because consumer might consider other factor such as subjective -interests. Baker and Ozaki (2008) added that providing green information is less effective on consumer attitude than educate them. It indicates that environment education is significant key that influence consumers attitude. Marketers should concern this point in order to choose the best way that affect on consumers attitude. Although some studies said attitudes have negative relationship with behaviour, there is study in cosmetic area. Therefore, this research will investigate that positive attitude toward environmental can influence Thai women buying green cosmetic. H4. Environmental attitudes are a significant factor influence Thai women buying green cosmetics. 2.4.5 Perception Perception is the way in which individuals analyse, interpret and make sense of incoming information, and is affected by personality, experience and mood (Brassington and Pettitt, 2006, p.118). Consumers always make decision or behave base on their point of view or perception (Peattie, 2002). The term of perception in marketing is consumers view toward to product, services, package, smell, taste, message or company. Perceptions will be differently modified by individual interpretation and that influence on decision making process. Even the same individual might have perception varies in different times. 2.4.5.1 Brand perception Creating brand awareness or placing information into consumer mind is important to consumer perception because it can be linked to brand image of company (Lancaster,Massingham and Ashford 2002). Especially, Strong brand name can influence consumer perceptions. It causes people feel familiar with brand and then purchase the products. Once consumers are satisfied the product, the brand will be on the top of consumer mind. This make consumers become loyal consumer and continue to purchase the products. For example, Wu (2003) stated that consumer do not stop purchasing current brand and change to environmental alternative brand. Ouwersloot and Duncan (2008) added that loyal consumer always communicate positively about company and brand to other consumers. It is called word-of- mouth. Pickett and Ozaki, (2008) stated that word of mouth is valuable tool that influence on consumer perception rather than other tool such as sale promotion. The finding of Pickett and Ozaki (2008) illustrates that some consumer trusted certain brand than other. This is showed that brand affect on consumer perception that transfer to emotional preference. Wu and Lo (2008) study the influence of core-brand attitude and consumer perception on purchase intention towards extended product found that consumer perception can increase consumers purchase intention. They experienced that brand awareness and product perception lead to purchase intention while Yam Ting and Chans study (1998) found that no strong relationship between green purchase behaviour and self- perception. They explained that this is because (1) consumers have gap between attitude and behaviour and (2) respondents do not perceive that purchase behaviour can improve environmental condition. 2.4.5.2 Corporate social responsibility perception Corporate social responsibility activities are the way to create consumer positive perception. West, Ford, Ibrahim (2006,p434) said that CSR is the actions of the company to act in a socially responsible manner to protect and enhance the various stakeholders that have an interest in company, the community in which it operate, the environment which surrounds it, and society. According to MORIs research (2003) found that 74% of British people accept that behaviour of company on social responsible would affect their buying decision ,and 86% suggest that community activities should be actively announced- 59% said it is grateful to see company profit from social activities.. The performance of CSR leads to good brand image and productivity and profitability in long time (CSR of British government, 2010). When consumers perceive the information about evidence of firm. They decode the message into 2 types of motive to the firm-self serving (to enhance profits, sale, brand image) or public serving (help people or develop society) that it can be called as profit-motivated or socially motivated respectively. The attribution is fundamental of perceived motivation affect consumers judgement on firm. Once consumers perceive the firm action as self-profit, the positive attitude on firm will be reduced. On the other hand ,if the firm is perceived as socially motivated, the positive attitude on firm will be increased (Olsen et al.,2005). From the review, it can be concluded that consumer perception either brand perception or CSR perception can generate buying behaviour. However, there is no evident that perception cause Thai women buying behaviour in green cosmetic product. This research will examine that there is positive relationship between perception and buying green cosmetic behaviour. H5. Brand perception is a significant factor influencing Thai women buying green cosmetics. H6. CSR perception is a significant factor influencing Thai women buying green cosmetics.