INDIVIDUAL ASSIGNMENT

TECHNOLOGY PARK MALAYSIA

CONSUMER BEHAVIOR

BM082-3-2-CB

DEEPARECHIGI A/P VASHU

GREEN MARKETING AND PURCHASE BEHAVIOR OF

GENERATION Y CONSUMERS

JALNA EMMANUELLA MARY ISAAC

TP057011

APU2F2008MKT (DM)

SUBMISSION DATE: 17th MAY 2021

WORD COUNT: 2466

 TABLE OF CONTENT

INTRODUCTION 1

GENERATION Y CONSUMERS 1

PURCHASING BEHAVIOR 1

GREEN PURCHASING BEHAVIOR 1

GREEN CONSUMERS 1

CONSUMER BEHAVIOR ISSUES 1

Green product issues in Malaysia and Consequences 1

CONSUMER ANALYSIS AND APPLICATION OF RELEVANT THEORIES 1

ABC MODEL OF ATTITUDE THEORY 1

THEORY OF PLANNED BEHAVIOR 1

MARKETING RECOMMENDATION 1

CONCLUSION 1

REFERENCES 1

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INTRODUCTION

In recent years, green marketing has become a trend, implying both environmental and
environmentalism. Because of the growing consciousness in the societies, consumers are
concerned about living a healthier lifestyle. As a result, the company has provided a green
commodity to meet the needs and desires of the customers. According to Grant (2009), increased
public and business awareness of environmental issues has resulted in a change in consumers
lifestyles as they embrace a more suitable and environmentally friendly way of life. To foster
organizational change, use a green marketing method. The aim of the customer in purchasing
with the way manufacturers build products that are environmentally friendly and reduce carbon
emissions and energy consumption. This is because, because of human and manufacturing
activities, carbon emissions have been rapidly rising in recent years. Aside from that, consumers
must take the initiatives to promote their purchasing habits by purchasing green products. Green
goods are those that have low environmental impact (Jang et al, 2010).

According to Albino et al., (2009), a green product is one that is intended to have as little
environmental effect as possible over its entire life cycle. Non-renewable product use is reduced,
hazardous whilst renewable are used in compliance with their rate of resupply. This report we
can examine the label to determine which goods are environmentally friendly and the possibility
of using eco-labelling would raise consumer awareness of green product characteristics and lead
them to purchase environmentally friendly products. The aim of this research is to learn more
about the impact of green marketing on consumer shopping habits in Malaysia. The environment
and environmental issues, which are one of the reasons for the rise of green marketing, are
discussed, followed by an explanation of the principles of green marketing and green customers.
Environmentalism, green product features, green marketing practices, and green price have a
positive impact on green buying behaviors of consumers.

Consumers' attitudes influence the desire to perform a particular action, such as buying green
products. Consumer attitudes towards the environment or a healthier lifestyle can influence their
decision to buy green products (Hossein & Masoumeh, 2015). However, Rao et al. (2011)
assumes that if businesses sell environmentally friendly goods to customers at an affordable cot

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and of better quality than conventional products, and these consumers have good intention of
buying green products, green product purchases would be strong and environmental safety
messages in advertisements and product labelling affected 70 percent of customer purchasing
decisions. Green goods are purchased by customers for the purpose of improving the world in
which they work. To some degree, consumers who are environmentally aware are willing to pay
a premium for the product because they realize the environmental benefits that can be obtained
(Mohd Nazri et al., 2016). Indeed, consumer environmental consciousness, enthusiasm, and
perception of declining environmental quality has promoted them to act friendly, resulting in a
shift in their buying habits toward green goods.

GENERATION Y CONSUMERS

Consumers in Generation Y, also known as millennial or net generation, reflect the future of the
society, making them essential to businesses (Hume, 2010). This generation includes people
raised within 1978 and 2000. Generation Y users are the possible new pioneers of the modern-
age green movement (Ottman, 2011). Hsu, Chang & Chen (2012), identified that customers’
specific aspects have a huge impact on their buying behavior.

PURCHASING BEHAVIOR

The analysis of individuals, groups, or organizations, including procedures they use to choose
and dispose of goods or services that meet their needs, effect of these in the society, is referred to
as consumer behavior. It is impossible to change behavior without affecting perceptions and
beliefs first. McGuire (1989) stated that statements and behaviors do not always translate into
real behavior. Green goods are seen as a viable alternative that elevates purpose over action.

GREEN PURCHASING BEHAVIOR

When it comes to purchasing decisions, a lot of people think about the environment, for instance
whether the product is made from recycled materials. Even though environmental consciousness

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has grown, demand for green goods has been shown to be inconsistent across market segments
since Ottman (1992). Green purchasing behavior, according to Mostafa (2007), is described as
spending on products that are environmentally friendly, recyclable, or conservable and
responsive to environmental concerns.

GREEN CONSUMERS

Green users, according to Soonthonsmai (2007), are people who care about and are concerned
about environmental issues. Green customers have a lot of environmental concerns and problems
on their minds, they believe they are responsible for environmental protection. Green consumers
are those who regularly buy products that have a low environmental impact. These customers
may be interested in brands with environmentally friendly packaging, companies that follow fair
trade or sustainable policies, such as The Body Shop and Starbucks.

CONSUMER BEHAVIOR ISSUES

As identified by Erbaslar (2010), given that businesses are socioeconomic enterprises, it is

unlikely that they will remain unresponsive to environmental awareness that may be influencing
consumer behavior. Marketing managers encounter an environment concerning customers. The
old perception of businesses as profit-driven establishments quickly gives way to a new
perception of businesses as socially conscious institutes. In green marketing, consumers come
across concepts for instance, ozone-friendly and recyclable goods. Green marketing, on the other
hand, is a much broader definition of marketing operation that can be extended to consumer
products, manufactured goods and even service.

Because of carbon emissions and dwindling natural resources, we have been experiencing a lot
of pollution, climate change, and the greenhouse effect in recent years. Waste disposal has
resulted in a great deal of pollution in Malaysia. Green buyers, as identified by Papadopoulos et

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al., (2010), have been a driving force behind business strategies, and these ecological consumers
are building a new economy around the world. Consumers are claiming to engage in
environmental activities and to represent these issues in their buying habits as environmental
concerns have grown. As identified by Laroche et al, (2001), in the current state of green
marketing study, green consumers’ decision to buy green goods is becoming a central problem.
The consumer’s desire to help environmentally sustainable businesses influenced their buying
decision (Refer to figure 1).

Figure 1: Green Consumer Purchasing Model

Source: Young et al. (2010)

Green product issues in Malaysia and Consequences

The emergence of environmental issues and increased understanding of green purchasing

behavior has elicited a broad range of responses from stakeholders around the world, including

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government agencies, academics, companies, and consumers. Currently, it can be seen that green
consumerism is spreading to developed countries, including Malaysia (Tiwari et al., 2011).
Green market segments have been seen forming and growing all over the world, including
Malaysia. This may be attributed to the increased availability of green goods on the market. In
addition, Malaysian intellectuals asserted that this pattern is rapidly expanding. Although there
have been responses from these stakeholders, especially consumers, who have had a positive
impact.

In the context of this research in Malaysia, we have concentrated on the success of green
businesses (Hassan & Ali, 2015), the factors that influence customer attitudes towards green
goods and successful green marketing tools. The philosophy of being environmentally conscious
is relatively new in Malaysia. As a result, the government has undertaken strong commitments to
environmental sustainability, security, and restoration. For example, the Malaysian Green
Technology Policy (2009), which shows the country’s commitment to making the vision of a
green Malaysia a reality. According to Mei et al. (2012), in Malaysia environmental attitudes and
peer pressure are influential factors in green purchase intention. Some businesses are concerned
not only with making profits, but also with the future of the planet. These companies include
Digi, Shell Malaysia, Panasonic Malaysia, Aeon Co, Malaysia Airlines, and few more. The
Malaysian government has made significant investments in environmental conservation. As
identified by Hasan & Ali (2015), consumer attitudes towards green goods, on the other hand,
are not well understood. Malaysian customers tend to buy goods and services from reputable
firms, and they are getting pickier about the types of green products they buy and how much they
pay for them (Chen & Chai, 2010).

Green goods, which are perceived as products that cause minimal pollution in Western countries,
are also regarded as niche products by Malaysian consumers, with prices higher than non-green
products. As a result, the factors that influence buying decisions and convert non-green
consumers to green consumers in Malaysia can differ. Green marketing techniques that have
proven in other countries might not be effective in Malaysia. Malaysians spend a substantial
amount of their household income on groceries and other products with an average of MYR 505.

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The Malaysian Airlines, which lowers fuel consumption by operating more direct routes, is an
example of green marketing in Malaysia. However, since it is costly, many people choose to fly
on other airlines. Affordability is also the most important factor to remember.

CONSUMER ANALYSIS AND APPLICATION OF RELEVANT

THEORIES

ABC MODEL OF ATTITUDE THEORY

In marketing terms, an attitude is described as a long-term assessment of a product or service

(Solomon, 2008). An attitude provides a personal motivation while also influencing customer
shopping and purchasing patterns. Within the context of marketing, consumer attitude is
described as a synthesis of a consumer’s values, feelings, and behavioral intentions. A customer
may have either negative or positive feelings or opinion about the product or services.

The ABC model of behavior and attitude, created by Albert Ellis, is a widely used technique in
cognitive- behavioral therapy that focuses on assisting individuals in overcoming negative
thoughts, emotions, and habits. Learning to recognize how one’s actions, values and feelings
affect how one feels and thinks is referred to as cognitive strategies (toolshero, 2013). The
model, according to Ellis, is focused on how people interpret or view specific circumstances.
People’s thoughts have a direct effect on their assumptions about future events and personal
satisfaction. These thoughts may be irrational, which can be assessed using the ABC method
(Refer to figure 2).

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 Figure 2: The ABC
Model of Attitudes

Source: Timboprof.com (n.d).

According to Dean (2010), the ABC Model of Attitude emphasizes the relationship between
learning, feeling, and doing by combining three specific components: Affect, Behavior and
Cognition. An individual’s reaction to an object or the emotion about a product or services is

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referred to as affect. The responses of a customer because of affect and cognition are referred to
as behavior. Intention is only implied by actions. An individual’s belief or awareness about an
attitude object is referred to as cognition.

The functional theory of attitudes, founded by Daniel Katz, provides an explanation for
functional movements of consumer attitudes. Katz proposes four different functions for attitudes.
Each feature tries to explain to the customer where a specific attitude comes from and why it
exists. Understanding why a customer has a particular attitude is critical to improving it (Katz,
1937). For this report, the utilitarian function/theory was chosen. One of Katz’s four specified
functions, the utilitarian function, is one of the most well-known. The utilitarian role is focused
on the utilitarian ethical principle, which states that a person should make decisions solely for the
purpose of maximizing overall happiness (Sidgwick, 1907).

Changing affect, changing behavior, and changing beliefs are three methods for changing
consumers attitudes. Classical conditioning is an effect modification technique. A marketer will
often combine or connect their commodity with a liked stimulus in this case. The positive
correlation allows for a shift in effect without requiring a shift in the consumer’s beliefs (Perner,
2010).

THEORY OF PLANNED BEHAVIOR

In 1980, the Theory of Planned Behavior commenced as the Theory of Reasoned Action, was
developed to predict an individual’s intention to participate in a particular activity at a specific
time and location. The theory was designed to describe all activities for which people would
exercise self-control (refer to figure 3). Sustainable behaviors, which encourages a positive
mindset (Azjen, 1985). Over the years, several customer behavior explanation suggestions have
been proposed. Some are based on the effects of marketing factors, such as advertising,
packaging, promotion, and retail availability, while others emphasize the effects of other external
stimuli. This theory can be used to alter attitudes that are affected heavily by peers and a small
social network. The theory of planned behavior depicts the different influences on consumer
behavior. Behavioral intention is a key element of this model. It is formed by one’s attitude about

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the probability that the behavior will produce the desired result, as well as one’s subjective

assessment of the costs and benefits of that outcome (refer to table 1).

Figure 3: Theory of Planned Behavior Model

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Source: John Hopkins University (2016)

Table 1: Three elements influenced by Theory of Planned Behavior

Attitude This is the degree to which an individual views the actions

of interest in a positive or negative light. It involves
thinking about the consequences of executing the
behavior.

Subjective norm This is the opinion of whether most people approve or

disapprove of the action. It has to do with a person’s
views on whether peers and important people in his or her
life should participate in the actions.

Perceived behavioral This refers to a person’s understanding of how easy or

control difficult it is to perform the desired action. Perceived
behavioral control varies according to circumstances and
behaviors, resulting in a person’s understanding of
behavioral control changing depending on the situation.

MARKETING RECOMMENDATION

According to Bray et al. (2011), while the amount of consumer willing to buy green goods has
risen in recent years and there has been a limit of indications that green product purchases have
increased; regarding environmental concerns and consumers’ optimistic attitudes towards
sustainability and green products as its market share remains 1-3 percent of the total market. This
recommends that environmental factors play a significant part in consumer buying decisions,
with the most consumers dismissing the environmental consequences of their purchases (Mohr et
al. 2001). Below are some recommendations that marketers can implement:

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 ● Marketers may direct their green marketing strategies at friends and family members to
influence Generation Y consumers’ attitudes.
● To change perceptions, advertisements must raise awareness. This can be accomplished
by including awareness in their integrated marketing communication (IMC) plans.
● Since customers are sensitive to the high prices often associated with green goods, price
offers customers the ability to introduce more reasonable pricing strategies for green
products.
● The importance of increasing environmental education for future generations cannot be
overstated. When consumers are taught about the environment at a young age, it can
inspire them to care about the environment and, as a result, become green consumers.
● To boost their purchase efficiency, marketers should strengthen their targeting strategies.
Since males are less environmentally conscious customers, extra effort should be made to
influence their attitudes.
● Marketers should use online social media to advertise and promote green or
environmentally friendly goods more frequently. Green buying intentions for green goods
or environmental issues could be shared on social media to gain exposure. Furthermore, it
has the potential to raise awareness and concern among social network users.

CONCLUSION

To summarize, green goods are those that have a lower environmental effect and are harmful to
human health than their alternatives. Increasing public understanding of degradation of the
environment has led to the implementation of green marketing or environmentally friendly
practices by some businesses. Individuals from all over the world have demonstrated a
willingness to live more environmentally friendly lives. Embracing the green product revolution
would help to guarantee that this way of life is viable in the future, and it all begins by guying
genuinely green goods. When consumer’s buying behavior shifts towards environmentally
conscious products and services, and consumers reform their buying behavior to become greener,

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consumer environmental awareness rises. Malaysian consumers are “The Hero – the productive”,
calculated and logical buyers who carefully devote scarce resources to the acquisition of
products and services to maximize utility.

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