final consumers' motivations in purchasing green products

CONSUMERS’ MOTIVATION IN PURCHASING 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

2.1a Environmental ConcernConcerns related to the environment are evident in the increasingly environmentally conscious

marketplace. Over the years a majority of consumers have realized that their purchasing behavior has a direct impact on many ecological problems. Customers adapted to this new threatening situation by considering environmental issues when shopping (e.g. Checking if the product is wrapped in a recycled material) and by purchasing only ecological compatible products (e.g. biodegradable paint, CFC-free hairspray or unbleached coffee filters) (Bergeron et al. 2001). Consumers now take into consideration the concern over the environment on their purchasing decision.

Environmental concern can be conceptualized as a general attitude that reflects the extent to which the consumers is worried about threats for the harmony of nature and future generations, and the lack of human action to protect the environment for future generations (Bohlen et al. 1993, Bohlen, 1994; Diamontopolous et al., 2003 Mostafa, 2007a;2007b).

Predictably, people’s level of environmental concern is linked to their interest and willingness to purchase green products ((Mainieri, T., et. Al (1997); Shwepker, C. H. & Cornwell, T.B. (1991)). Previous empirical evidence emphasized that environmental concern is a major factor in the consumer decision making (Zimmer et al., 1994; Wagner, 1997; Ottman, 1998). Accordingly, studies have found positive correlations between environmental concern (i.e. attitude) amd environmental friendly behavior (Roberts and Bacon 1997).

However, Hume 2001 has a different finding on the relationship between the positive attitude of consumers on the environment and their purchasing decision. Hume(1991) concluded that consumers do not always act in accordance with their social reporting about the environment. What people think is good idea does not always predict what they actually do, especially in the case of environmental values and behaviors.

2.1b Perceived Consumer EffectivenessPerceived consumer effectiveness refers to the extent to which individuals believe that their actions

make a difference in solving a problem (Ellen, Weiner and Cobb-Walgren, 1991). It is defined as “the evaluation of the self in the context of the issue (Berger and Corbin, pg. 80-81; Kim and Choi, 2005). Ellen, Weiner and Cobb-Walgren (1991) demonstrate that perceived consumer effectiveness for environmental issues is distinct from environmental concerns or attitudes and contribute to the prediction of environmentally conscious behaviors.

Berger and Corbin (1992) found that green consumers’ behavior could be influenced by their consumer perceived effectiveness (i.e., attitude) towards the protection of the environment. Peattie (2001) argued that consumers must feel that, when they purchase an environmental friendly product , they will make some sort of material difference.

Consumer concerns about environmental issues may not translate into pro-environmental behaviors; however, those individuals with a strong belief that their behavior will result in a positive outcome are likely to engage in such behaviors in support of their concerns for their environment (Kim and Choi, 2005). If consumer group has pro-environmental attitudes they may have self concepts of themselves as environmentally responsible. Buying brands manufactured by companies whose products and processes are more environmentally friendly enhances a desired self concept, allowing consumers to “feel good about it” (Baker and Ozaki 2008).

Perceived consumer effectiveness affects knowledge, direct experience and the experiences of others (Brown, 1979; Kim and Choi, 2005). Conversely, other researchers argue that if perceived consumer effectiveness motivates a wide variety of behaviors, then this role may be over or understated depending on the type of behavior included (Kim, 2002).

2.1c Reference Group Social norms are important motivators of ecologically responsible behavior (Ewing, 2001). The

strength of normative influence of the consumers’ family and social groups on purchasing decision depends on the characteristics of the product (e.g. luxury rather than a necessity, publicly displayed or used in private); the susceptibility of the individual consumer and the coercive power of the group to which the consumer belongs (Hoyer and Maclnnis, 2004).

A reference group is a group whose values and attitudes are used by an individual as a basis for his or her current behavior (Schiffman and Kanuk, 2007; Hawkins et al., 2006). Of particular interest to researchers and marketers are normative reference groups and comparative reference groups. Normative reference groups include parents, coworkers, teachers, and peers who provide the individual with norms, values, and attitudes through direct interaction (Childers and Rao, 1992; Bristol and Mangleburg, 2005; Subramanian and Subramanian, 1995). Comparative reference groups are sports heroes and entertainment figures who provide standards for. In advertising, these reference groups are frequently used, however they are rarely associated with green products (Charter et al. 2002).

2.1d Environmental Laws and RegulationsDating back for the past 20 years, series of rules and regulatory measures have been implemented

throughout the world to tackle the issue of global warming. The pollutants implicated in the climate change models are produced by every country and virtually every sector of modern economies (Driesen, 2006). Japan before have initiated the Kyoto Protocol where different countries were signatories and in order to resurrect the collaboration of the countries. (Knox J.K. 2009).

On the study conducted using the Portuguese as the respondent, results show that consumers who buy green products do so for specific reasons, and that certain environmental and demographic variables are significant for differentiating between the ‘greener’ segment and the other segments. Yet, generally speaking, one is left with the impression that the Portuguese sample, despite their support for policies designed to improve the environment, do not translate into actions: they rarely join environmentalist associations and they do not take part in policy-making. Their participation is often based on protecting the environment by saving electricity and water, which shows that these concerns may be more closely related with economic factors than with an environmental consciousness (Paco et.al.2009).

2.1e Promotional ToolsPromotion is a marketing communication tool that aims to inform rather than just impress –

because communicating about environmental issues is difficult for marketers and involves complex issues without simple solutions, and messages which are difficult to reduce down to fit onto label, or into a 30 second TV commercial (Prothero et al., 1997). Product endorsements occur when the environmental group endorses a product after it has ensured that the product meets some set of established criteria. There are many private endorsement schemes operating around the world (Polonsky, 1994), though none of these appeared to receive the recognition they may deserve, nor have they been extensively utilized by industry. These firms went on to promote themselves as being environmentally responsible because they did not use driftnets (Advertising Age, 1991; Mendleson, 1994).

2.1f Consumer KnowledgeInvolvement with a product and environmental issues are important constructs when assessing

consumers’ willingness to purchase, with previous research emphasizing the importance of the relationship between product involvement and product knowledge. Knowledge was found to be significantly related to how consumers gather, organize, and evaluate products (Alba and Hutchinson 1987), as well as being a significant predictor of environmentally friendly behavior (Vining and Ebreo 1990; Chan 1999). Perceived knowledge appears to contribute to perceived consumer effectiveness (Ellen, P.S. et. al., (1991)). Not

MOTIVATIONAL FACTORS

ENVIRONMENTAL CONCERNIndicators

PERCEIVED CONSUMER EFFECTIVENESS

Indicators

REFERENCE GROUPIndicators

ENVIRONMENTAL LAWS AND REGULATIONS

Indicators

ACTUAL PURCHASE DECISION

surprisingly then, the greater people perceive their knowledge to be about buying recycled content and source reduced products, the more likely they are to do so (Ellen, P.S. (1994)).

A key element of environmental conscious consumption is a desire by consumers for more information about the relationship between products and the environment, with greater exposure to “green” information sources influencing consumer purchasing decisions. According to a study by GFK, Americans have shifted to a more environmentally conscious mindset. Amyx and colleagues found that subjective environmental knowledge was a better predictor of ecological purchasing intentions than objective knowledge. In other words, consumers that think they know more about the environment are more likely to buy green products than those that actually knew about environmental issues.

Tilikidou and Delistavrou 2008 concluded that citizens who more frequently adopt to pro-environmental non-purchasing behaviors are all highly educated people.

2.2 INDICATORS OF MOTIVATIONAL FACTORS

Environmental concern, perceived consumer effectiveness, reference group, environmental laws and regulations, promotional tools, and consumer knowledge have their own indicators. These indicators are set to be determinants of each of the motivational factors leading to actual purchase.

According to Dunlap and Jones (2002), environmental concern indicates “the degree to which people are aware of problems regarding the environment and support efforts to solve them and or indicate the willingness to contribute personally to their solution”. This indicates that consumer’s concern for the environment is an indicator of environmental concern.

While on the part of perceived consumer effectiveness, it is the conviction that one’s actions can make a difference in a given situation, has often been linked to issues of social consciousness and attitudes (Ellen et al 1991; Kinnear et al 1974). Further, the level of perceived consumer effectiveness has been found to form an inverse relationship with the level of knowledge about a subject, particularly in the environmental arena (Berger and Corbin 1992).

Reference group theory is based upon the principle that people take the standards of significant others as a basis for making self-appraisals, comparisons, and moving into various social realms (Hyman & Singer: 3). Substantial to the theory is the fact that individuals usually have the freedom to choose the reference groups they wish to join. Equally important is the influence and status of groups, and the power groups possess, because they have the ability to admit or deny membership to their group (E. Murell Dawson and Elfreda A. Chatman, 2001).

Environmental laws and regulations indicators as well as compliance indicators, according to Di Paola, María Eugenia (2003) are helpful tools to improving enforcement and compliance with environmental laws and policies, measuring their effectiveness and efficiency.Perhaps no area of green marketing has received as much attention as promotion. In fact, green advertising claims grew so rapidly during the late 1980s that the Federal Trade Commission (FTC) issued guidelines to help reduce consumer confusion and prevent the false or misleading use of terms such as "recyclable," "degradable," and "environmentally friendly" in environmental advertising (Mark A. White, 2000). Lastly, consumer kowledge is more likely to refer to product related information that is stored in consumer’s memory(M.J. Alhabeeb, 2007) .

3. CONCEPTUAL FRAMEWORK

Graphic diagram showing the motivational factors together with its indicators leading to actual purchase decision:

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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. METHODOLOGYThis 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.

4.1 RESEARCH DESIGNThe descriptive method of research was used for this study. To define the descriptive type of research,

Creswell (1994) stated that the descriptive method of research is to gather information about the present existing condition. The questionnaires for this study were administered to 400 consumers from Baguio City. Accordingly, for the purposes of most surveys, sample sizes from 100 to 400 will be developed and implented, which should be adequate. The researchers mention 100 as the low end of sample size because the sample size determinate formula will work with total populations of 4,000 or more. With the above statistical jargon in mind, this rule of thumb makes sense: use a sample size of 400 for populations of 4,000 or more. The consumers completed the survey and were assured anonymity. Participation was voluntary and no remuneration was offered. The respondents were undergraduate business students and consisted of both sexes and of different races. A total of 400 completed the questionnaires (yielding a response rate of 100%) were obtained and deemed sufficiently complete to be useable. The majority of the respondents were female (67.4%).

5. ANALYSIS AND RESULTS

Choice of Green Products

No. of Respondents who purchase the product

Percentage of Respondents who purchase the product

Vegetable and Food 279 69.8Clothing and apparel

94 23.5Toiletries and hygienic products 170 42.5Organic cosmetics

91 22.8Recycled products

270 67.5Table 1 Types of Green Products Being Purchased by Consumers in Baguio City

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

Indicator Actual Purchase DecisionX2 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 environment. 19.732 0.011

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 (X2= 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

Consumers’ belief that they can contribute in saving the environment (X2= 83.107, p=0.000) and the consideration of themselves as environmentally responsible persons (X2= 28.664, p= 0.000) have the significant relationship with actual purchasing decision. The research of Berger and Corbin (1992) found that green consumers’ behavior could be influenced by their consumer perceived effectiveness (i.e., attitude) towards the protection of the environment.

Table 4 Relationship between Indicators of Reference Group and Actual Green Purchasing

Indicator Actual Purchase DecisionX2 P

1. I am influenced by my friends to purchase environment-friendly products. 13.950 0.0832. I am influenced by my family to purchase environment-friendly products. 10.561 0.2283. My co-workers influence me to purchase green products. 28.415 0.0004. 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-friendly products.

22.542 0.004

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


1. I am motivated to buy products because I believe that I can contribute in saving the environment. 83.107 0.000

2. I am encouraged to buy products since I believe that I can protect the environment. 11.483 0.176

3. I am motivated to buy products because I believe that I can be a part of the solution on environmental problems. 12.492 0.131

4. I am encouraged to buy products because I consider myself as an environmentally responsible person. 28.664 0.000

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


1. I am motivated to buy green products because of the sanctions imposed by the government concerning environmental conservation 17.072 0.029

2. I do not want to disobey the environmental laws and regulations; thus, I am encouraged to purchase products that do not harm the environment. 7.759 0.457

3. I am motivated to purchase products that are environment-friendly because I am aware of the existing environmental laws and regulations. 12.467 0.132

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


1. I am encouraged to purchase products that are safe to the environment because I am convinced by the television and radio advertisements. 29.820 0.000

2. I am motivated to buy green products because of the print advertisements (e.g. Billboards, brochures, magazines, newspapers, and the like.) 40.631 0.000

3. I am motivated to purchase products that are environment-friendly because I am convinced by the endorsers of the product. 11.543 0.173

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


1. I am motivated to purchase environment-friendly products because of my knowledge about global warming. 32.855 0.000

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

knowledgeable about recycling. 15.965 0.043

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).

Table 8 Motivational Levels of the Indicators Environmental Concern

Indicators of Motivational Factors Mean (±SD) Qualitative description Factor Average& Statistical Results

I am concern for the environment 1.68 (±0.90) Strongly-agree – agree

1.98 (±.89) Strongly agree-neutral(t-stat=9.58)P-value = 0.00Significant

I am motivated to buy products because I want to contribute in saving the environment

2.12(± 0.86) Strongly agree - neutral

I am motivated to buy products because they do not harm the environment 2.10 (±0.91) Strongly agree -

neutralI am motivated to buy products because I want to improve the environment. 2.03(± 0.88) Strongly agree –

neutral

The factor average of environmental concern is 1.98 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. level on each indicator also differs. Among the indicators of environmental concern indicators, the “I am concern for the environment” indicator with a mean of 1.68 and qualitative description of ‘Strongly-agree to Agree’ encourages the green consumers to buy green products the most. This finding is supported by Hines et al. (1987) stating that fundamental to environmental research is an individual’s concern for the environment , and according to another study, consumers with a stronger concern for the environment are more likely to purchase products as a result of their environmental claims (Mainieri et al. 1997) than those who are less concerned about the environmental issues.

Table 9 Motivational Levels of the Perceived Consumer Effectiveness


I am motivated to buy products because I believe that I can contribute in saving the environment

2.07 (±0.85) Strongly agree - neutral

2.11 (±.85) Strongly agree-neutral(t-stat=67.90)P-value = 0.00

Significant

I am encouraged to buy products since I believe that I can protect the environment 2.15(± 0.80) Strongly agree -

neutral

I am motivated to buy products 2.11 (±0.85) Strongly agree - neutral

I am encouraged to buy products because I consider myself as an environmentally responsible person

2.11 (±0.88) Strongly agree - neutral

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.

Table 10 Motivational Levels of the Reference Group


I am influenced by my friends to purchase environment-friendly products 2.73 (±0.93) Agree – disagree

2.75 (±1.23) strongly agree – disagree

(t-stat=29.33)P-value = 0.00

Significant

I am influenced by my family to purchase environment-friendly products 2.48 (±0.95) Strongly agree –

disagree My co-workers influence me to purchase green products 2.93(±0.96) Agree – disagree

I am influenced by my neighbors to purchase green products 2.94 (±0.96) Agree – disagree

I am a member of an organization which advocates caring, protecting and saving the environment, thus I am motivated to purchase environment-friendly products

2.67 (±1.11) Strongly agree – disagree

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.

Table 11 Motivational Levels of the Environmental Laws and Regulation


I am motivated to buy green products because of the sanctions imposed by the government concerning environmental conservations

2.45(± 0.97) Strongly agree – disagree

2.34 (±.96) Strongly agree – neutral(t-stat=36.03)P-value = 0.00

Significant

I do not want to disobey the environmental laws and regulations; thus, I am encouraged to purchase products that do not harm the environment

2.30(± 0.97) Strongly agree – neutral

I am motivated to purchase products that are environment-friendly because I am aware of the existing environmental laws and regulations


I agree with the imposed environmental laws and regulations; thus, I am motivated to purchase products that do

2.29 (±0.95) Strongly agree – neutral

not harm the environmentThe factor average of environmental laws and regulations is 2.34 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 agree with the imposed environmental laws and regulations; thus, I am motivated to purchase products that do not harm the environment” indicator with a mean of 2.29 and qualitative description of ‘Strongly-agree to Neutral’ encourages the green consumers to buy green products the most. In relation with the said findings is the research conducted by Hokey Min and William P. Galle. This research examined the influence of environmental factors on supplier selection strategies. And as founded, the most important influences on supplier selection are potential liability, followed by cost associated with the disposal of hazardousmaterial, and compliance with state and federal environmental regulations. The importance of the factors may stem from fear of liability litigation and fines and subsequent negative publicity.

Table 12 Motivational Levels of the Promotional Tools


I am encouraged to purchase products that are safe to the environment because I am convinced by the television and radio advertisements


2.52 (±.91) Strongly agree – neutral(t-stat=23.68)P-value = 0.00

Significant

I am motivated to buy green products because of the print advertisements (eg. Billboards, brochures, magazines, newspapers and the like


I am motivated to purchase products that are environment-friendly because I am convinced by the endorsers of the product


I am encouraged to purchase these products because of the online advertisements concerning environment-friendly products


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.

Table 13 Motivational Levels of the Consumer Knowledge


I am motivated to purchase environment-friendly products because of my knowledge about global warming

1.99 (±0.93) Strongly agree – neutral

2.05 (±.91)Strongly agree –

neutral(t-stat=39.15)P-value = 0.00

Significant

I am encouraged to purchase products that are environment-friendly because I am informed with different pollutions


I am encouraged to buy environmentally friendly products because I am knowledgeable about recycling


I am motivated to buy environmentally friendly products because I have


knowledge about segregation.

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.

Table 14 Level of Motivational Factors

Motivational Factors

Mean (±SD)

Qualitative Description t-stat P-value

Highest Indicator

Mean

LowestIndicator

Mean

Environmental Concern

1.98 (±.89)

Strongly agree-neutral

(t stat =9.58) P-value =0.00

Significant2.12

(± 0.86)1.68

(±0.90)

Perceived Consumer Effectiveness

2.11 (±.85)

Strongly agree-neutral

(t stat=67.90)

P-value =0.00Significant 2.15

(± 0.80)2.07

(±0.85)

Reference Group 2.75 (±1.23)

Strongly agree-disagree

(t-stat=29.33)

P-value =0.00Significant 2.93

(±0.96)2.48

(±0.95)

Environmental Laws and Regulation

2.34 (±.96) Strongly agree –

neutral

(t-stat=36.03) P-value =0.00

Significant2.62

(± 0.90)2.34

(± 0.91)

Consumer Knowledge

2.05 (±.91) Strongly agree –

neutral

(t-stat=39.15)

P-value =0.00Significant 1.99 (±0.93) 2.12

(± 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).

6. DISCUSSIONS AND CONCLUSIONS

There are different motivational factors that consumers consider in purchasing green products and in each motivational factor; there are indicators which determine whether or not it will lead to actual purchase. The study has proven that although most of the indicators actually result to actual purchase, consumers give each motivational factor a distinct degree of importance. Moreover, each motivational factor has their indicator which at the same time varies on their level of influence to the consumers’ actual purchase decision. The findings of the study provide strong evidence that all indicators of environmental concern such as concern for the environment, the consumers’ want to contribute in saving the environment, their purchase of environment friendly product, and environmental protection lead to actual purchase. However, it was shown that the concern for the environment encourages the consumers’ green purchasing the most. Consumers’ belief that they can contribute in saving the environment and the consideration of themselves as environmentally responsible persons are the indicators of perceived consumer effectiveness that result to actual buying of green products. Furthermore, the consumers’ belief that they can contribute in saving the environment encourages green purchasing of consumers the most among the indicators of perceived consumer effectiveness.

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.

7. SCOPE AND LIMITATIONS

This study only focused within the locality of Baguio City. The respondents were any type of consumers who were living here in Baguio City. The study only covered the duration from November 2009 to September 2010. This paper dealt with the effects of motivational factors with regard to the purchasing decision of green products.

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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