Factors Influencing The Consumers Intention To Use Environmental Friendly Products
FACTORS INFLUENCING THE CONSUMERS’ INTENTION TO USE
ENVIRONMENTAL FRIENDLY PRODUCTS
NOR BAEYAH BT JAHAYA
2011969509
NURHIDAYAH ‘ALIAA BINTI CHE ZULHAIMEE
2011291054
BACHELOR OF BUSINESS ADMINISTRATION
WITH HONOURS (HUMAN RESOURCE MANAGEMENT)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
KAMPUS BANDARAYA MELAKA
JULY 2014
FACTORS INFLUENCING THE CONSUMERS’ INTENTION TO USE
ENVIRONMENTAL FRIENDLY PRODUCTS
NOR BAEYAH BT JAHAYA
2011969509
NURHIDAYAH ‘ALIAA BINTI CHE ZULHAIMEE
2011291054
Submitted In Partial Fulfillment of The Requirement For The
Bachelor of Business Administration (Hons)
(Human Resource Management)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
BANDARAYA MELAKA
JULY 2014 i DECLARATION OF ORIGINAL WORK
BACHELOR OF BUSINESS ADMINISTRATION
WITH HONOURS (HUMAN RESOURCE MANAGEMENT)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
“DECLARATION OF ORIGINAL WORK”
I, Nor Baeyah Bt Jahaya , (I/C Number:910812105282)
I, Nurhidayah ‘Aliaa Binti Che Zulhaimee , (I/C Number:920329035500)
Hereby, declare that :
This work has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this degree or any other degrees
This project paper is the result of our independent work and investigation, except where otherwise stated
All verbatim extract have been distinguished by quotation marks and sources of my information have specifically acknowledged.
Signature:___________________________________________
Date: 04th July 2014
Signature:___________________________________________
Date: 04th July 2014
ii
LETTER OF TRANSMITTAL
04th July 2014
The Head of Program
Bachelor of Business Administration
(Hons) Human Resource Management
Faculty of Business Management
Universiti Teknologi MARA
110 Off Jalan Hang Tuah
75300 Melaka, Malaysia
Dear Sir / Madam,
SUBMISSION OF APPLIED BUSINESS RESEACRH REPORT
Attached is the project paper titled “FACTORS INFLUENCING THE CONSUMERS’
INTENTION TO USE ENVIRONMENTAL FRIENDLY PRODUCTS” to fulfillment the requirements as needed by the Faculty of Business Management, Universiti Teknologi MARA.
Thank you.
Regards,
……………………………………….
(Nor Baeyah Bt Jahaya)
2011969509
Bachelor of Business Administration (Hons)
Human Resource Management
……………………………………….
(Nurhidayah ‘Aliaa Binti Che Zulhaimee)
2011291054
Bachelor of Business Administration (Hons)
Human Resource Management iii ACKNOWLEDGEMENT
First and foremost, we would like to express our utmost gratitude to Allah SWT for easing and helping us in accomplishing this project paper. It is truly a blessing from him as every hurdle we are able to face calmly and smoothly.
In this respect, we would like to express tremendous gratitude to our advisor, En. Juan
Rizal bin Sa 'ari, for his support and guidance until we are able to accomplish our project paper.
Also to our second examiner, Pn. Norraeffa binti Md. Taib for her feedback.
We are also indebted to the citizens and people around Melaka for their help and participation and the time and effort that they willing to sacrifice to help us in our project paper.
Their cooperation smoothen the data collecting process and allow our advancement to the next stage easily.
Last but not least, very special thanks to our beloved parents and family for the encouragement and support through our years of study. With love, faith, patience and continuous support from them, we are able to complete the project paper with strong will and courage. These special thanks also are extended to our friends that endlessly provide support and cooperation whenever we needed help during the assignment.
Thank you. iv TABLE OF CONTENTS
Page
TITLE PAGE
i
DECLARATION OF ORIGINAL WORK
ii
LETTER OF TRANSMITTAL
iii
ACKNOWLEDGEMENT
iv
TABLE OF CONTENT
v
LIST OF FIGURES
viii
LIST OF TABLES
ix
ABSTRACT
x
CHAPTER 1
CHAPTER 2
INTRODUCTION
1.1 Research Background
1
1.2 Problem Statement
3
1.3 Research Objectives
5
1.4 Research Questions
5
1.5 Scope of study
5
1.6 Significant of Study
6
1.7 Limitation of Study
7
LITERATURE REVIEW
2.1 Environmental Friendly Products
8
2.2 Research Framework and Hypotheses Development
9
2.3 Chapter Summary
17
v
CHAPTER 3
CHAPTER 4
RESEARCH METHODOLOGY
3.1 Introduction
18
3.2 Research Design
18
3.3 Target population
19
3.4 Sampling
19
3.5 Data Collection Method
21
3.6 Questionnaire Design
23
FINDINGS
4.1 Introduction
26
4.2 Frequencies Analysis of Demographic Characteristics
27
4.2.1
Analysis of Respondent based on Gender
27
4.2.2
Analysis of Respondent based on Race
29
4.2.3
Analysis of Respondent based on Religion
30
4.2.4
Analysis of Respondent based on State of Origin
31
4.2.5
Analysis of Respondent based on District in
33
Melaka
4.2.6
Analysis of Respondent based on number of
34
consumers purchased or use environmental friendly products
4.2.7
Summary of the Result Frequency Analysis
35
4.3 Reliability Analysis
36
4.4 Descriptive Analysis
39
4.5 Pearson Correlation Analysis
42
4.6 Regression Analysis
45 vi CHAPTER 5
4.7 Hypothesis Testing
47
4.8 Conclusions
49
DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Introduction
50
5.2 The Discussion of Respondent 's Demographic
Characteristics
50
5.3 To study the level of intention to use environmental friendly products.
50
5.4 The relationship between the factors and the intention to use environmental friendly products
51
5.5 The most important factor to influence the intention to use environmental friendly products.
53
5.6 Conclusion
54
5.7 Recommendations
55
REFERENCES
APPENDICES
vii
LIST OF FIGURES
Figure:
Page
Figure 2.2.1
Theoretical Framework
9
Figure 4.2.1
Pie Chart Gender
28
Figure 4.2.2
Pie Chart Race
29
Figure 4.2.3
Pie Chart Religion
30
Figure 4.2.4
Pie Chart State of Origin
32
Figure 4.2.5
Pie Chart District in Melaka
33
Figure 4.2.6
Pie Chart Number of Consumers
Purchased or use Environmental Friendly
Products
34
viii
LIST OF TABLES
Table:
Page
Table 3.6.1
Questionnaire Design
24
Table 4.2.1
Gender
27
Table 4.2.2
Race
29
Table 4.2.3
Religion
30
Table 4.2.4
State of origin
31
Table 4.2.5
District in Melaka
33
Table 4.2.6
Number of Consumers Purchased or use
Environmental Friendly Products
34
Table 4.2.7
Summary of the Result Frequency Analysis
30
Table 4.3.1
Cronbach’ Alpha Range
37
Table 4.3.2
Result of Reliability Statistics
37
Table 4.4.1
Descriptive Analysis Result
40
Table 4.5.1
Correlation Coefficient Size
42
Table 4.5.2
Correlation Analysis
43
Table 4.6.1
Regression Analysis
45
Table 4.6.2
Summary of Regression Analysis
46
ix
ABSTRACT
The title of this research is Factors Influencing Consumers’ Intention To Use Environmental
Friendly Products. The dependant variable for this research is intention to use environmental friendly products. In this research, there are six independent variables that link with the dependant variable. The six independent variables are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness. For the data collection, questionnaire was used by the researchers. The researchers distributed the set of questionnaires to respondents in the shopping complex around Melaka. In conducting the research, the
Statistical Package for Social Science (SPSS) version 21.0 was used to analyzed the data. Results showed the five independent variables which are perceived cost, perceived quality, environmental attitude, trust and health awareness influencing the consumers’ intention to use environmental friendly products. But only one independent variable which is social influence does not influence the dependant variable. All the five independent variables have significant relationships that influence the consumers’ intention to use environmental friendly products.
x
CHAPTER 1
INTRODUCTION
1.1 Research Background
Industrial pollution is widely blamed for many environmental problems. Awareness of such issues has risen dramatically over recent years. As a result, concern for the environment now occupies a prominent place in public consciousness. Most business organizations realize this and fully accept the need to conduct their affairs in a socially responsible manner.
Environmental welfare is a major part of this obligation and compliance is a must.
Developing products that benefit rather than harm the environment can prove a highly positive exercise.
According to the article “From Concern to Consumption: Influencing the Purchase
Behavior of Green Consumers (2013)”, an ability to create such products is not sufficient though. Companies need to get the message across too. Knowledge about product ecofriendliness remains limited among many consumer groups, making it vital that firms and marketers provide information which is accurate and reliable (Chen & Chang, 2012).
According to Pallegrini and Farinello (2009), people nowadays are seeking quality of life not only by eating healthy and doing exercise to keep fit, mentally and physically but they are also using the environmental friendly product. So, by using the environmental friendly product, they agreed that quality of life can be achieved and healthy enough for them to live in.
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Some of company in industry also produce environmental friendly product to minimize risk, conserve profit and gain good reputation (Dangelico and Pujari, 2010).
According to Chen et. al (2006), they believe that developing integrated environmental friendly product by using the green technology innovation can gain some distinctive competencies and can seek for competitive advantage. In addition, we must approach towards an environmentally sustainability in the future by apply it in the further research (Dangelico and Pujari, 2010).
In his study also emphasizes on the role of public policy to play an active role in stimulating demand towards environmental friendly products through subsidies and rebate.
Government today had launched too many policies and scheme such as Green Technology
Financing Scheme to attract the consumers to buy and realize the benefits of environmental friendly product. Furthermore, according to Chen (2010), he said that future researcher need to be more focus on the consumers’ attitude and social influences towards intention to buy or use environmental friendly product in the market.
Shopping complex is one of the places that provide consumers with environmental friendly product. So, it become our focus to identify the intention of consumers to buy environmental friendly product by using six independent variables that have been considered in determining the consumers’ intention which are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness.
Consumers pay more attention to the rise of environmental protection activities and the impact of industrial disasters such that consumer environmentalism is more prevalent and environmental regulations are stricter in the world. Consequently, the public is more likely to buy green products that are not destructive to the environment (Chen, 2010). Because of the popular environmentalism and the strict environmental regulations, companies should
2
develop business models that can comply with the environmental trends. In order to respond to green needs of consumers, the notion of green marketing has been widely accepted in both of the practical and academic areas. Green marketing is a concept, which includes all marketing activities that are developed to stimulate and to sustain consumers ' environmental friendly attitudes and behaviors. Companies can adopt green marketing activities to undertake differentiation strategies and to satisfy customers ' environmental needs or desires.
In conclusion, the theoretical framework is developed and we can identify whether the independent variable have relationship with dependent variable or not by testing the hypothesis. We can also determine which independent variable that has very strong relationship with dependent variable at the end of this study.
1.2
Problem Statement
According to Ahmad and Juhdi (2010); Shaharudin et al., (2010b), as pointed out by
several scholars, it is highly important to identify and examine the underlying factors that might influence the intention of consumers to purchase and use environmental friendly products such as organic food or products that are not harmful to environment. Over the years, such studies have been extensively conducted in Europe region (Honkanen et al., 2006;
Lodorfos and Dennis; 2008; Tsakiridou et al., 2008; Ozcelik and Ucar, 2008; Michaelidou and Hassan, 2008) and North American region (Aguirre, 2007; Li et al., 2007; Bellows et al.,
2008).
However, research studies in Malaysia are still lacking and limited. Obviously, the researches in foreign countries definitely raise a question of applicability to the local market.
In addition, according to Dangelico and Pujari (2010), the slow pace of environmental
3
friendly product are also affected by the consumer that have lack of knowledge and awareness towards the benefits of environmental friendly products. It is maybe because government, agencies and also social media did not advertise the benefits of environmental friendly product aggressively to capture the consumer’s attention and awareness.
Consumers today have started to have concern that their purchasing behavior will cause a big impact to the environment such as global warming and pollutions. Although
Malaysia has undergone huge development, the environmental responsible behavior practices are still low among Malaysian consumers. An example of the lack of environmental responsible behavior is shown in an article in Bernama whereby garbage thrown by Penang residents is the main cause of river pollution in the state. Therefore, studying the factors of consumer’s green purchase behavior would definitely benefit many including green marketers and the Earth. Many Malaysian consumers are aware of the deteriorating natural environment in Malaysia but they behave oppositely to conserve and preserve the environment. Therefore, the factors that determine and contribute to the green purchase behavior of Malaysian consumers would be worth to find out.
Nowadays, there are small number of research on the intention to use environmental friendly products has been carried out in other states in Malaysia. Thus, there is a need to scrutinize the consumers’ intention to buy environmental friendly product in other states in
Malaysia. Lastly, the segmentation of consumers in different states may have different needs, attitudes and purchasing behaviors especially in a green technology city for instance Melaka
World Heritage City.
Therefore, this study has been carried out to fill up the above mentioned gaps by looking into consumers’ intention to use environmental friendly product.
4
1.3
Research Objectives
1.3.1.
To study the level of intention to use environmental friendly products.
1.3.2.
To examine the relationship between the factors and the intention to use environmental friendly products.
1.3.3
To identify the most important factor that influence the intention to use environmental friendly products.
1.4
Research Questions
1.4.1
What is the level of intention to use environmental friendly products?
1.4.2
Are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness influence the intention to use environmental friendly products?
1.4.3
What is the factor that most influence the intention to use environmental friendly products?
1.5
Scope of Study
This research is a study on factors that influencing the consumers’ intention to use
environmental friendly products. A survey was conducted among consumers’ who come and buy any environmental friendly products that are available at some shopping complex. In this research, we use non-probability sampling because we do not have specific population frame.
The sampling that we use is convenient sampling which is we collect information from members of the population who are conveniently available to provide it. They consist of
5
variety of race, gender, religion and also from different district and areas. Some of them become the respondents and they were given questionnaires to answer for a few minutes. The area that researcher covered is at some shopping complex in Melaka.
1.6
Significant of Study
1.6.1
Education Purpose
This research provides useful information regarding the consumers’ intention to use environmental friendly products and adds more information about the topic. It also gives support and new evidence to the previous research that have been done before.
1.6.2
Researcher
This study helps the researcher get more knowledge about the topic of study.
Researchers become more effective in earning the knowledge and have the real experience in conducting the research.
1.6.3
Management of shopping complex in Melaka
The studies provide additional and useful information to management of shopping complex in Melaka about the level of consumers’ intention to use environmental friendly products related to their perceived cost, perceived quality, environmental attitude, social influence, trust and also health awareness.
1.6.4
Consumers
This study gives additional information about the intention to use environmental friendly products and it also is a good reference to the consumers that want to explore more about the topic.
6
1.7
Limitation of Study
1.7.1
Information Constraint
Some of the information are strictly confidential and out of reaches of any outsiders.
Researchers cannot freely take information without prior approval of the management of shopping complex in Melaka. This is because some information about the shopping complex in Melaka are confidential. Example of the confidential information is the revenue of environmental friendly product that they earned.
1.7.2
Respondent’s Cooperation
The difficulty in getting relevant information and documents that related to the study was a limitation of the study. Researchers have problem in searching data because some of them are irrelevant. It is because a few of the respondent could not understand what the questions asked appropriate to language barrier. Then, respondent also refuse to give their full cooperation during question process. It is impossible to receive hundred per cent cooperation from respondent because a few of them do not give a full concentration when answer the question, unwilling to answer the question honestly and precisely.
1.7.3
Lack of Experience
Since this is the second time the researchers has conducted a research, the researchers still have not enough experience and certain skills that lead to a good research paper writing and analysis.
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CHAPTER 2
LITERATURE REVIEW
2.1
Environmental Friendly Product
According to Paco (2009), environmental friendly products can be defined as products
that are safer and not harmful to the environment. Magistris (2010) said that it is believed environmental friendly products are much healthier and higher quality than traditional produce products. In the United States, health market is one of the two markets that drive in using environmental friendly products (Knudson, 2007). Environmental friendly products such as energy efficient products can be categorized as products innovation (Judianto et al.,
2012). While according to Jason (2007), he defined green products as the product that less harmful to the environment and minimize the environment impact of product use.
Theory of Planned Behavior (TPB)
Theory of planned behavior (TPB) was introduced by Ajzen (1991) as the extension of the theory of reasoned action (TRA). Intention to perform a particular behavior is the central factor of TPB. According to Ajzen (1991), intention is the indication of how hard people are willing to try, or how much effort people are planning to exert, in order to perform a behavior. It is believed that the stronger the intention, the more likely the behavior will be performed. Most importantly, intention can be predicted by three predictors which are attitudes towards the behavior, subjective norms with respect to the behavior and perceived control over the behavior. These three predictors together are influenced by various types of salient beliefs.
8
In addition, Ajzen (1991) also stated that TPB can be applied in many areas of interest.
For instance, East et al. (2008) mentioned that TPB has long been applied to predict consumers’ intentions in many areas such as food choice and buying environmentally friendly products. Indeed, previous researchers have used TPB to prove that relationships existed between the influencing factors and the consumer purchase intention to use environmental friendly products such as organic food (Aertsens et al., 2009). In addition,
Lodorfos and Dennis (2008) also employed TPB in their study to identify and examine the determinants that influenced consumers’ intention to purchase environmental friendly products. Thus, following the above researchers, TPB is not only used to measure intention but also can measure intention to buy environmental friendly products among the consumer.
2.2
Research Framework and Hypotheses Development
Figure 2.2.1 illustrates the conceptual framework of this study. As discussed above, it
was developed based on Theory of planned behavior (TPB) a model by Venkatesh et al.,
2003. The following section discusses about the conceptual framework in details.
Specifically, the independent variables, dependent variables and hypotheses are discussed.
Perceived Cost
Perceived Quality
Intention to use environmental friendly products Environmental Attitude
Social Influence
Trust
Health Awareness
Figure 2.2.1: Theoretical Framework
9
Perceived Cost
The perceived cost is the independent variable for the research. There are many definitions about the perceived cost, however in this study we only look at to some of this definition as a reference and to make the title of this research become clearer.
According to Essoussi and Zahaf, 2009; Somnath,2010, the definition of perceived cost can be defined as the degree of an individual’s believe that environmental friendly products with high cost did not affect them to buy but they are willing to pay when the products have high quality. Individuals willing to pay higher price which is up to 40 percent more for environmental friendly products (Giuseppe and Federica, 2009). Other researcher also found that people are willing to utilize environmental friendly products despite of their higher price
(Efthimia et al. 2008; Shu, 2009). On the other hand, Mintel (2006) also stated that consumers are willing to pay more for environmental friendly products but they not regularly practice the green buying behavior. Furthermore, consumers also will pay more for environmental friendly products as they do not have to sacrifice comfort or convenience
(Jason, 2007).
Hence, in this study, perceived cost can be defined as consumers’ willingness to buy environmental friendly products even though the products is expensive. Thus, the following hypothesis is proposed:
H1: Perceived cost has a positive effect on the intention to use environmental friendly products. Perceived Quality
Apart from price, consumers also consider product quality as a main criterion in purchasing a product. For environmental friendly products, Hughner et al. (2007) and Aguirre
10
(2007) have identified in their studies that consumers perceived environmental friendly products to be higher quality, which referred to healthier, than the conventional product and; thus, motivated the consumers to use environmental friendly products. Furthermore, Naspetti and Zanoli (2009) mentioned that consumers preferred high quality products to low quality products. As such, they concluded that quality dimensions, such as economical, high durability, taste, health, appearance, convenience and process, are among the most important aspects in any environmental friendly products purchase. In addition, Tsakiridou et al. (2009) also found that a majority of consumers were willing to pay a premium price for the environmental friendly products which were deemed to be high quality. They further stressed that consumers have a tendency to purchase quality products especially for usage. Luzio and
Lemke (2013) concluded that green products bought at farmer’s market and local stores are way preferable than supermarkets as the products are more genuinely organic in many ways.
Perceived quality is a key factor in maintaining consumer’s satisfaction that ensures longterm relationship or loyalty towards the environmental friendly product (Chen & Chang,
2013). According to Paul and Rana (2012), satisfaction is also derived from product quality and additional factors which include taste, freshness, variety and product information; and product value is increased by environmentally-friendly contents and packaging.
Hence, in this study, perceived quality is defined as the extent to which individuals perceive that purchase of environmental friendly products will provide them with high quality products. Thus, the following hypothesis is proposed:
H2: Perceived quality has a positive effect on the intention to use environmental friendly products. 11
Environmental Attitude
In identifying the reasons to use environmental friendly products, a majority of studies have explain the purchase of environmental friendly products to consumers’ environmental attitudes and concerns (Hughner et al., 2007; Essoussi and Zahaf, 2008; Ozcelik and Ucar,
2008). Environment one of the important factors that will affect consumers purchase decision to use environmental friendly products (Magistris and Gracia, 2008). In addition, according to Magistris and Gracia (2008) also, consumers who have positive attitudes towards the environment will have high percentage or intention to use environmental friendly products and vice versa. Consumers who have realize the benefits of protecting the environment also will more likely to use environmental friendly products, such as organic food (Lin, 2009). It means that consumers who have positive attitude and concern about the environment are more intended to use environmental friendly products. In Taiwan, Chen (2009) asserted that consumer’s attitude toward environmental degradation were the determinants for a consumer to form a positive attitude toward environmental friendly products. Furthermore, according to
Ahmad and Juhdi (2010) also stated and agreed that environmental attitude positively related to environmental friendly products attitudes. Some previous researcher also had stated the interrelationship between values, attitude and environmental behavior and they also come out with effect of the ‘value-attitude-behavior’ model (Judianto et al., 2012). Laroche et al.,
2001 also had stated that the concept of lifestyle is more likely used by marketing managers in research to study the intention to buy environmental friendly products.
Hence, in this study, environmental attitude is depends on the consumers awareness and the extent to which an individual believe that by use environmental friendly products, it will help them to protect the environment. Thus, the following hypothesis is proposed:
12
H3: Environmental attitude has a positive effect on the intention to use environmental friendly products.
Social Influence
According to Klockner and Ohms (2009), social influence was considered as a part of social norm or pressure on the development and activation of personal norms. For example,
Aertsens et al. (2009) concluded that environmental friendly products as example of organic purchases were significantly related to the intention to purchase in combination of
(perceived) behavioral control and the intention turn into influenced by attitude (personal and subjective) norms and (perceived) behavioral control. Moreover, the likelihood to purchase environmental friendly products depended on certain individual characteristics and one of it was reference group influence (Gupta and Ogden, 2009). Other studies indicated that consumer’s concern towards health and environmental poverty could be one of the determinants of consumers purchasing and having positive attitude towards environmental friendly products (Fang Chen, 2009; First and Brozina, 2009).
Interpersonal influence primarily consists of the impact of acting to persuade, convince or influence others for the purpose of having a specific effect. An important determinant of an individual 's decision and behavior are the influence of others. The social influences of peers, family groups and influential bodies can convey information and activate emotional reactions through factors such as modelling, instruction and social persuasion. Environments such as family, friends and peer networks strongly influence buying decisions that involve environmentally friendly products. Interpersonal processes and relationships between opinion leaders and professionals are likely to have a substantial impact on similar attitudes towards buying decisions. (Cheah & Phau, 2011)
13
Consumers are often influenced by the consumption patterns of neighbors, co-workers, opinion leaders and other peers. According to Oliver & Lee (2010) individuals assign a social value to products, which evolve during their interactions with others and with information.
So, individuals who feel a product has a high social value will look for information that helps them evaluate the benefits of purchasing the product. Especially for high involvement products, which often are symbols of status, luxury, and personal identity, the way others perceive consumer use of products is likely to be an important factor in purchase considerations. In this study, social influence is defined as the extent to which an individual being influence by social, other individuals or reference groups in purchasing and using environmental friendly products. Thus, the following hypothesis is proposed:
H4: Social influence has a positive effect on the intention to use environmental friendly products. Trust
Trust is defined as the acceptance and trust by individuals towards environmental friendly products for example organic foods being offered in the market based on the labels, certification process; which defines and controls the process and the standards being followed
(Essoussi and Zahaf, 2008). According to Essoussi and Zahaf (2009), one of the barriers which limiting the utilization of environmental friendly products was individuals’ lack of knowledge and trust with regards to organic foods. Trust towards the retailers and the certification process are important determinants of environmental friendly products consumption (Essoussi and Zahaf, 2009). For example, Picket-Baker and Ozaki (2008) mentioned that consumers generally trusted popular brands because the risk was much lower than the less well-known brand. Other researcher, such as Hwa Lin (2009) mentioned that
14
consumers lost their trusts and refused to purchase environmental friendly products from companies which have been accused of being environmental polluters.
Trust caused from three beliefs – integrity, benevolence, and ability – is an expectation held by one party that the word, promise, or statement of another party can be relied on.
Besides, trust is an extent of the confidence that another party would behave as expected.
Customer trust is a fundamental determinant of long-term consumer behavior (Lee, Park, &
Han, 2011). Hence, consumer purchase intentions are affected by consumer trust (Harris &
Goode, 2010). Past literature shows that customer trust is a determinant of consumer purchase intentions. If buyers have had a trust experience with the seller, they would possess a higher level of purchase intentions. Thus, consumer trust is an antecedent of customer purchase intentions. Previous research shows that customer trust would positively influence customer purchase intentions. Thus, Chen (2010) argues that green trust would influence consumers ' purchase behaviors in the environmental era. Lu, Zhao & Wang (2010) indicate that customer trust positively affects customer purchase intentions.
According to (Chen, 2010), trust is essential as a strategic ingredient in the success of relationships. Furthermore, to trust a brand completely indicates that there is a high expectancy or probability for its consumers such that the brand would obtain positive evaluation. Considering brand trust as expectancy, it is based on consumer’s belief that the brand is consistent, competent, honest and responsible. Social exchange theory indicated that customer trust would enhance the social embeddedness of the consumer-provider relationship to further increase the customers’ commitment to the relationship, which in this case is trust towards environmental friendly product.
In this study, trust is defined as the extent to which an individual believes in buying environmental friendly products is secure in terms of technology, certification process,
15
standards and control being followed by the producer. Thus, the following hypothesis is proposed: H5: Trust has a positive effect on the intention to use environmental friendly products.
Health Awareness
Apart from the perceived cost, perceived quality, environmental attitude, social influence and trust, health awareness also one if the factors influencing consumer’s intention to use environmental friendly products. Community nowadays are aware from any infecting disease or chronic disease such as heart diseases, blood pressure diseases and diabetes as well as drug addiction and misuse of medications (Mamdouh M. Ashraah et al. , 2013). According to
Mamdouh M. Ashraaf et al. , 2013, health awareness includes various aspects that will involve all healthy behavioral and cognitive requirements such as personal health, way of people protect their health, psychological health and others. So, individuals that have high level of health awareness will more tend to use or buy environmental friendly products because it is one of the way for them to protect their health.
Health awareness also educating individuals and enhancing individual’s knowledge to change their behavior or habits especially when the disease spread in a community (Abdo,
2013). When an individuals have knowledge about an environmental friendly products, they will change their behavior to live in healthy ways. According to Ahmad (2012), a person that have healthy mindful is the right individual who will enjoys high levels of health that consist of healthy, social mental, and also physical integration.
According to Chen (2009) , readiness to take healthy actions is one of the factors that influence consumer’s attitude toward organic foods. It means that, the consumer’s health awareness influences the attitude or intention to use and buy environmental friendly products.
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In addition, environmental awareness are also factor that lead consumer to purchase organic foods or environmental friendly products. Moreover, a healthy lifestyle that concern on physical health-related activities may increase the impacts of health awareness on their attitude towards environmental friendly products (Chen, 2009).
In this study, health awareness can be defined as the knowledge of an individual about the present and future consequences of their behavior and also of their lifestyle that will bring some risks or can harm them.Thus, the following hypothesis is proposed:
H6: Health awareness has a positive effect on the intention to use environmental friendly products. 2.3
Chapter Summary
From this chapter, we can conclude that after starting the research, we know how to do literature review. Literature review is very important to guide researcher what to do before starting research and after finish the research. Besides that, literature review helps to identify opposing views and to identify other people working in the same fields. Literature review gives good impression to the researcher for learning purpose.
After the literature review, researchers proceed with drawing the framework. The framework is useful when searching for the variables either independent variable or dependent variable for “Factors Influencing The Consumers’ Intention to Use Environmental
Friendly Products”. Thus, research hypotheses can be created using the theoretical framework helped by research question and research objective.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1
Introduction
This chapter was focus on the methodology that has been use in this study.
Methodology is a description of the procedure employed in order to achieve the objectives of the study. For the purpose of conducting this study, information was obtaining from both the primary and secondary sources.
3.2
Research Design
Research design involves a sequence of rational decision making choices with issues
concerning to decision regarding the purpose of the study, the types of investigation, the extent of researcher interference, the study setting, the unit of analysis and the time horizon of the study (Sekaran & Bougie, 2010).
3.2.1
Purpose of Study
To study on factors influencing the consumers’ intention to use environmental friendly products at shopping complex in Melaka.
3.2.2
Type of Investigation
This research paper is using causal design because this research is to identifying the cause and effect relationship among variables.
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3.2.3
Research Interference
This study is conducted in natural environment with minimal interference by the researcher. 3.2.4
Study Setting
The studies are non-contrived setting or field experiments but with researcher interference to a moderate extent.
3.2.5
Unit of Analysis
In this study, individuals have been choosing as unit of analysis because the data is collected from consumers’ of shopping complex in Melaka.
3.3
Target Population
Population refers to the entire group of people, events or things of interest the
researchers wish to investigate. In this study, the population is among community living in the selected states. They are among government and non government employees, students and community in the selected states. Basically, a green technology city in mind to held this study. The study populations are the consumers of shopping complex in Melaka that come from different district.
3.4
Sampling
Sampling is the process of selecting items from the population, so that a study of the
sample and an understanding of its properties or characteristics make it possible to generalize such properties or characteristics to the population elements. Sampling involves the
19
population, sampling frame, sampling techniques, sampling size and sampling process. The benefits using sampling it is efficiency and quickly for gathering data.
3.4.1
Sampling Techniques
We must determine what type of sampling technique that we want to conduct. For this research, the sampling technique that we use is non probability sampling. In non probability sampling, the elements in the population do not have any probabilities attaches to them being chosen as a sample subjects. We also use convenience sampling in the research. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it. For example, we were distributing the questionnaire to all consumers’ of shopping complex in Melaka who is available to answer the questionnaire at that time. Everybody of the population can become the respondents’ in regards which district they are from. So, it is relevant to use convenience sampling as it is the best way of getting information quickly and efficiently.
3.4.2
Sampling Size
Sampling size is the actual number of subjects chosen as a sample to represent the population characteristics. Sampling size is important as it ensure the amount of variability in the population itself. So, we determine the relevant number of the respondents of this research. For this research, our sampling size is 100 respondents who are convenience to answer the questionnaire from the total consumers of shopping complex in Melaka.
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3.5
Data Collection Method
In data collection, this study entailed distribution of self-administered closed-
questionnaire survey adapted from previous researchers. Sekaran (2003) mentions that closed questions help respondents to make quick decisions to choose among the several alternatives before them. Furthermore, they help the researcher to easily code the information for subsequent analysis. As such, this study utilizes the closed questions in the survey.
In addition, as this paper is a study of perceptions on how strongly the respondents agree or disagree with certain statements, Likert scale is the best to be used (Sekaran, 2003).
The researchers have decided to follow Sekaran (2003) by using five-point Likert scale in the study because it is able to elicit responses with regard to the object, event or person studied.
3.5.1 Primary Data
According to Uma Sekaran (2003), primary data refer to a certain other types of information such as perceptions and attitudes of employees are best obtained by talking to them; by observing events, people, and objects; or by administering questionnaires to individuals. So, questionnaire was our main and the only method that we use in obtaining the primary data. The questionnaire was distributed to 100 respondents at shopping complex in
Melaka. Each of the questionnaires stated the purpose of the study and also the respondent’s confidentiality. The questionnaire then was being personally distributed randomly to the respondents and it was be supervised by the researcher and distribute as well as collected on the appropriate time of the survey.
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3.5.2 Secondary Data
Secondary data is the second hand data where the data have been processed and it has lot of advantages. One of the advantages is it save time of the researcher in order to find an additional information or data for their research. In this research there are two types of sources for our secondary data that we use and that was:
3.5.2.1 Internal Sources
For this research we are using the internal sources as one of our data collection method where we get the data about the shopping complex in Melaka by their management itself. There are two data that we get from the officer of the shopping complex such as the numbers of consumers that use environmental friendly products previously and a little bit information about the establishment of the shopping complex.
3.5.2.2 External Sources
There are a lot of external sources that can help the researcher to get the second hand data. The sources can be the textbook, theses, conferences proceedings, unpublished manuscripts, report, newspapers and the internet. In this research we was using several sources for getting the secondary data that are from journals, theses, the internet, newspaper and also from the references books.
Theses
The theses from the previous researcher were very helpful for us to do this research.
The theses was either from the outside researcher and also the theses of our senior students that can be easily been referred at Library of UiTM Kampus Bandaraya Melaka.
22
Internet
We were using the internet to get an additional knowledge about this study and it also being a lot of easier for us to find the information through the internet that can easily be access anywhere, everywhere and anytime.
Newspaper
We also got some additional information about the shopping complex from the newspaper such as in the ' Melaka Hari Ini '. More than that we are also gets some knowledge by reading some issues that has been published through the newspapers.
References Book
We use the reference book especially to study about our theoretical framework model
(Theory of Planned Behavior). For this research, we use the research methodology textbooks as our references.
3.6
Questionnaire Design
3.6.1
Structured Questionnaire
This technique is applied because it facilitates researchers in designing the questions and it be standardized to all target populations as well as it reach the specific purposes easily.
Basically, the questions were designed and followed the same format and presented in the form of:
i.
Multiple choices questions: the respondent need to tick (/) the preferable answer in a box.
23
ii.
Likert Scale
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4.Agree
5. Strongly Agree
The questions in the questionnaire were specially designed into three (3) sections namely
Section A, Section B, and Section C. The numbers of question are shown below:
Section
No. of
Items
Sources
Section A
Demographic
6
Designed by researchers
6
Botonaki et al. (2006) and
Section B
Perceived Cost
Tsakiridou et al. (2008)
5
Perceived Quality
Shaharudin et al. (2010) &
Ahmad and Juhdi (2010)
Environmental Attitude
5
Chen (2009)
Social Influence
6
Lee (2008)
Trust
5
Chen (2010)
Health Awareness
8
Chen (2009)
6
Ahmad and Juhdi (2010)
Section C
Intention to Use Environmental
Friendly Products
Table 3.6.1: Questionnaire Design
24
3.6.1.1 Section A (Demographic Profile)
Section A consists of (6) questions providing students demographic information. In addition, information regarding gender, race, religion, state of origin and so on was acquired in order to provide general background of the consumers. All questions in Section A are using multiple choice questions and dichotomous response questions.
3.6.1.2 Section B (Factors Influencing the Intention to use Environmental
Friendly Products)
Section B contains (35) questions which are about the factors influencing intention to use environmental friendly products . Questions are using the likert-scale question. The objective of asking these questions is to identify the level of consumers’ intention towards the perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness at shopping complex in Melaka.
3.6.1.3 Section C (Intention to Use Environmental Friendly Products)
Section C consists of (6) questions and it identifies the intention to use environmental friendly products of consumers’ at shopping complex in Melaka. Questions are using the likert-scale question.
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CHAPTER 4
FINDINGS
4.1
Introduction
All coded date were keyed into the computer for further analysis by using Statistical
Package for Social Sciences (SPSS) version 21. Both the descriptive and inferential statistical analysis techniques were used in the study. Specifically, percentage, mean, standard deviation, correlation and regression analysis were used to analyze data.
Percentage, mean and standard deviations were used in the initial phase.
Subsequently, in hypotheses testing, Pearson correlation was employed to determine the relationship between independent variables and dependent variables. Meanwhile, multiple regression analysis was conducted to examine the simultaneous effects of independent variables on dependent variable.
The data obtained was processed and analyzed using the Statistical Package for Social science (SPSS) program version 21.0 as to get the most accurate answer. Coding with mod before key in the data into SPSS. This software is very important in data processing especially to link the data with the finding. The data was analyzed and presented in readable and interpretable form.
26
4.2
Frequency Analysis
A Frequency Table is a table that lists items and uses tally marks to record and show the number of times they occur. A frequency table is a way of summarizing a set of data. It is a record of how often each value (or set of values) of the variable in question occurs. It may be enhanced by the addition of percentages that fall into each category.
Frequency or one-way tables represent the simplest method for analyzing categorical
(nominal) data (refer to Elementary Concepts). They are often used as one of the exploratory procedures to review how different categories of values are distributed in the sample.
SPSS version 21.0 is applied to find the result of data collected. A frequency distribution is a mathematical distribution whose objective is to obtain a count of the number of response associated with different values on one variable and to express these counts in percentage terms. A frequency distribution for a various variables producing a table of frequency counts and percentages for all the values associated with those variables.
4.2.1
Analysis of Respondent based on Gender
Gender
Frequency
Percentage (%)
Male
48
48.00
Female
52
52.00
Total
100
100.0
Table 4.2.1: Gender
27
Male
48%
Female
52%
Male
Female
Figure 4.2.1: Gender
Figure 4.2.1 shows the percentage by gender. According to Table 4.2.1 a total 100 respondents have participated in this study. There are 48 male respondents, which is 48% of total respondents, while the majority of respondents are female, which is 52% of the total respondents represent 52 respondents. The survey had conducted at shopping complex around
Melaka and most probably female had a largest number of respondents because they always buy or use goods at shopping complex rather than male. So, that is why they can represent the larger number of respondents.
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4.2.2
Analysis of Respondent based on Race
Race
Frequency
Percentage (%)
Malay
60
60.0
Chinese
22
22.0
Indian
8
8.0
Other
10
10.0
Total
100
100.0
Table 4.2.2: Race
Others
10%
Indian
8%
Malay
Chinese
Indian
Others
Chinese
22%
Malay
60%
Figure 4.2.2: Race
Figure 4.2.2 shows types of races by consumers that use environmental friendly products. As we can see, the pie charts shows that most of the respondent are Malays, 60 respondents which is 60% from the total amount of respondents. On the other hand, there are
29
only 8 respondents who are Indian which is 8%. Chinese also have large participation as much as 22 respondents which is 22%. Last but not least, there are 10 respondents from others races which is 10%.
4.2.3
Analysis of Respondent based on Religion
Religion
Frequency
Percentage (%)
Islam
67
67.0
Non-Islam
33
33.0
Total
100
100.0
Table 4.2.3: Religion
Non-Islam
33%
Islam
Non-Islam
Islam
67%
Figure 4.2.3: Religion
Figure 4.2.3 indicated the percentage of the respondents based on religion. It showed that most of the respondents are Islam which is 67 % (67 respondents) while non-Islam only
33% which is 33 respondents.
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4.2.4
Analysis of Respondent based on State of Origin
State of origin
Frequency
Percentage (%)
Pulau Pinang
5
5.0
Perak
6
6.0
Selangor
6
6.0
Negeri Sembilan
5
5.0
Melaka
40
40.0
Johor
17
17.0
Pahang
2
2.0
Terengganu
2
2.0
Kelantan
1
1.0
Wilayah Persekutuan
15
15.0
Others
1
1.0
Total
100
100.0
Table 4.2.4: State of origin
31
Pulau Pinang
Perak
Selangor
1%
1%
2%
15%
2%
5%
Negeri Sembilan
6%
Melaka
5%
6%
Johor
Pahang
17%
Terengganu
40%
Kelantan
Wilayah Persekutuan
Others
Figure 4.2.4: State of Origin
Table 4.2.4 shows the state of origin of the respondents that answered our questionnaire. The highest percentage, 40% which represents 40 respondents are from people in Melaka itself because this research had been carried out in the state of Melaka. In addition, this research had been carried out in Melaka because Melaka is one of the Green Technology state and most or the residences are aware of the benefits or advantages of using environmental friendly products. On another hand, only 1% respondents from Kelantan and other state which represent the lowest percentage. Second highest percentage was followed by Johor which is 17% (17 respondents) because it is besides of Melaka and sometimes, many people from Johor come and shopping or purchase goods in Melaka. Next, followed by
15% of respondents from Wilayah Persekutuan, 6% of respondents from Perak and Selangor,
5% of respondents from Pulau Pinang and Negeri Sembilan and lastly 2% respondents are from Pahang and Terengganu.
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4.2.5
Analysis of Respondent based on District in Melaka
District in Melaka
Frequency
Percentage (%)
Melaka Tengah
31
31.0
Alor Gajah
6
6.0
Jasin
3
3.0
Total
40
40.0
Table 4.2.5: District in Melaka
6%
3%
Melaka
Tengah
Alor Gajah
31%
Jasin
Figure 4.2.5: District in Melaka
Based on Table 4.2.4, there have 40 respondents are from Melaka. So, Table 4.2.5 explaining which district the respondents from Melaka they are. While Figure 4.2.5 shows the percentage of respondents from Melaka that comes from Melaka Tengah district, Alor Gajah district and Jasin district. Most of them come from Melaka Tengah district because many shopping complex located at the area and represent 31% which is 31 respondents. Alor Gajah and Jasin have 6% (6 respondents) and 3% (3 respondents) respectively.
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4.2.6
Analysis of Respondent based on Number of Consumers Purchased or use
Environmental Friendly Products
Number of consumers purchased
Frequency
or use environmental friendly
Percentage
(%)
products
Yes
87
87.0
No
13
13.0
Total
100
100.0
Table 4.2.6: Number of Consumers Purchased or use Environmental
Friendly Products
13%
Yes
No
87%
Figure 4.2.6: Number of Consumers Purchased or use Environmental Friendly
Products
Figure 4.2.6 shows that the number of consumers purchased or use environmental friendly products. 87% of consumers have purchased or use environmental friendly products that represent 87 respondents. While only 13% which is 13 respondents have not purchased or use environmental friendly products.
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Summary of the Result Frequency Analysis
Items
Frequency
Percentage (%)
Male
48
48.0
Female
52
52.0
Malay
60
62.0
Chinese
22
22.0
Indian
8
8.0
Others
10
10.0
Islam
67
67.0
Non-Islam
33
33.0
Pulau Pinang
5
5.0
Perak
6
6.0
Selangor
6
6.0
Negeri Sembilan
5
5.0
Melaka
40
40.0
Johor
17
17.0
Pahang
2
2.0
Terengganu
2
2.0
Kelantan
1
1.0
Wilayah Persekutuan
15
15.0
Others
1
1.0
Melaka Tengah
31
31.0
Alor Gajah
6
6.0
Jasin
3
3.0
A1:Gender
A2: Race
A3: Religion
A4 : State of origin
A5 : District in Melaka
35
A6 : Number of Consumers Purchased or use Environmental Friendly Products
Yes
87
87.0
No
13
13.0
TOTAL
100
100.0
Table 4.2.7: Summary of the Result Frequency Analysis
4.3
Reliability Analysis
Reliability refers to the consistency of measurement, that is, how consistent test scores or other assessments results are from one measurement to another. Reliability of measurement is needed to obtain valid results, but there can be reliability without validity.
The data of this research is valid and reliable as this study had followed the standard guidelines in conducting the research.
Reliability refers to the extent to which a scale produces consistent results, if the measurements are repeated a number of times. The analysis on reliability is called reliability analysis. Reliability analysis is determined by obtaining the proportion of systematic variation in a scale, which can be done by determining the association between the scores obtained from different administrations of the scale. Thus, if the association in reliability analysis is high, the scale yields consistent results and is therefore reliable.
Reliability could be defined as the extent to which measures are free from random error. Reliability is testing for consistency and stability whereby, consistency indicates how the items measuring a concept hang well together as a set. Cronbach Alpha is a measure of
36
internal consistency which is closely related a set of item are as group in which the reliability coefficient indicate how well the item in a set positively correlated to one another. According to Hair et. al (2003), the measurements of this reliability shows in Table 4.3.1: Cronbach
Alpha Range is as follow:
Cronbach Alpha Coefficient Range
Strength of Association
Less than 0.60
Poor
0.60 to < 0.70
Moderate
0.70 to < 0.80
Good
0.80 to < 0.90
Very Good
0.90 and above
Excellent
Table 4.3.1: Cronbach Alpha Range
Source: Hair et. al (2003), Essential of Business Research Methods
Reliability Statistic
Cronbach Alpha
N of items
Interpretation
Perceived Cost (PC)
.665
6
Moderate
Perceived Quality (PQ)
.780
5
Good
Environmental Attitude (EA)
.647
5
Moderate
Social Influence (SI)
.871
6
Very Good
Trust (TR)
.812
5
Very Good
Health Awareness (HA)
.868
8
Very Good
Intention to Use Environmental
.865
6
Very Good
Friendly Products (IUEFP)
Table 4.3.2: Result of Reliability Statistic
37
The Table 4.3.2 above shows that the result of reliability statistic to all dependent variables and independent variables. The Cronbach’s Alpha for the Perceived Cost (PC) is
.665. It is within the rank of 0.60 – 0.69 which means that the data obtained from study is considered as moderate. The Cronbach’s Alpha value which above 0.5 and all 6 questions for these dependent variables are acceptable.
Secondly, the Cronbach’s Alpha for the Perceived Quality (PQ) is .780. It is within the rank of 0.70 – 0.79 which means that the data obtained from study is considered as good.
The Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
Thirdly, the Cronbach’s Alpha for the Environmental Attitude (EA) is .647. It is within the rank of 0.60 – 0.69 which means that the data obtained from study is considered as moderate. The Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
Next, the Cronbach’s Alpha for the Social Influence (SI) is .871. It is within the rank of 0.80 – 0.89 which means that the data obtained from study is considered as very good.
The Cronbach’s Alpha value which above 0.5 and all 6 questions for these dependent variables are acceptable.
Then, the Cronbach’s Alpha for the Trust (TR) is .812. It is within the rank of 0.80 –
0.89 which means that the data obtained from study is considered as very good. The
Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
For the last independent variable, the Cronbach’s Alpha for the Health Awareness
(HA) is .868. It is within the rank of 0.80 – 0.89 which means that the data obtained from
38
study is considered as very good. The Cronbach’s Alpha value which above 0.5 and all 8 questions for these dependent variables are acceptable.
The Cronbach’s Alpha for dependent variable which is Intention to Use
Environmental Friendly Products (IUEFP) is .865. It is within the rank of 0.80 – 0.89 which means that the data obtained from study is considered as very good. The Cronbach’s Alpha value which above 0.5 and all 6 questions are acceptable.
4.4
Descriptive Analysis
Descriptive statistic is statistic such as frequencies, the mean, and the standard
deviation, which provide descriptive information about a set of data. Descriptive statistics describe the main features of a collection of data quantitatively. Descriptive statistics are distinguished from inferential statistics or inductive statistics, in that descriptive statistics aim to summarize a data set, rather than use the data to learn about the population that the data are thought to represent. This generally means that descriptive statistics, unlike inferential statistics, are not developed on the basis of probability theory
Even when a data analysis draws its main conclusions using inferential statistics, descriptive statistics are generally also presented. For example in a paper reporting on a study involving human subjects, there typically appears a table giving the overall sample size, sample sizes in important subgroups. Examples are for each treatment or exposure group, and demographic or clinical characteristics such as the average age, the proportion of subjects of each sex, and the proportion of subjects with related co morbidities.
39
This section presents the descriptive analysis results of each item under consumers’ intention to use environmental friendly products. It aims to answer the research objective number 1, which to see the level of intention to use environmental friendly products.
Items
Mean
Low
Moderate
High
1.00 – 2.33
2.34 – 3.67
3.68 – 5.00
Perceived Cost (PC)
3.6450
Perceived Quality (PQ)
3.8080
Environmental Attitude (EA)
3.6060
Social Influence (SI)
3.2567
Trust (TR)
3.804
Health Awareness (HA)
4.1025
Intention to use environmental friendly products (IUEFP)
4.1400
Table 4.4.1: Descriptive Analysis Result
Table 4.4.1 shows the descriptive analysis result. The first independent variable is perceived cost has mean of 3.6450 within the rank of 2.34 – 3.67 and is considered moderate. It is explained that most of the respondent answered between neutral (3) and agree
(4) for them to use environmental friendly that is cheap.
Secondly, perceived quality has mean of 3.8080 within the rank of 3.68 – 5.00 is considered as high. It is explained that most of the respondent answered between neutral (3) and agree (4) for the question they would use environmental friendly products that have higher quality than conventional products.
40
Third, environmental attitude has mean of 3.6060 and also considered as moderate within the rank of 2.34 – 3.67. It is explained that most of the respondent answered between neutral (3) and agree (4) for them to practice environmental conservation task.
Next, social influence has mean of 3.2567 that considered as moderate within the rank of 2.34 – 3.67. It is explained that most of the respondent answered between neutral (3) and agree (4) to learn about environmental issues from their friends.
Trust has mean of 3.804 within the rank 3.68 – 5.00 and considered as high. It is explained that most of the respondent answered between neutral (3) and agree (4) for them to feel that environmental friendly products are generally reliable.
For the health awareness, the mean is 4.1025 within the rank 3.68 – 5.00 and considered as high. It is explained that most of the respondent answered between agree (4) and strongly agree (5) for them to know well how to live healthy.
Lastly, for dependant variable, the mean is 4.14 within the rank of 3.68- 5.00 is considered as high. It is explained that most of the respondents answered between agree (4) and strongly agree (5). It means that they agreed in term of intention to use environmental friendly products.
41
4.5
Pearson Correlation Analysis
Correlation is a technique for investigating the connection between two quantitative,
continuous variables. For example, age and blood pressure. Pearson 's correlation coefficient
(r) is determined of the strength of the association between the two variables. The nearer (r) is to one, the stronger the relationship between the two variables. But, the nearer the (r) is to zero, the weaker the relationship between the two variables. The Pearson correlation only determined the relationship. The correlation could be the perfect positive correlation when the value at +1 and the correlation could be negative correlation when the values as at -0.1.
Thus, the correlation could range between -1.0 and +1.0. There are also need to analyze the significant of the variables as the significant p=0.01, it indicates that 99% of the time researcher would expect this correlation exist and 1% or less it not being true. The relationship will determined using the correlation coefficient size established by Elifson,
Runyon and Haber (1998). The correlation coefficient size is shown in table 4.5.1 below.
.
Size of Correlation
Interpretation
± 0.01 to ± 0.30
Weak Relationship
± 0.31 to ±0.70
Moderate Relationship
± 0.71 to ± 0.99
Strong Relationship
± 1.00
Perfect relationship
0
No Relationship
Table 4.5.1: Correlation Coefficient Size
42
Perceived Cost (PC)
.358**
Significant of
Correlation
(2-tailed)
.000
Perceived Quality (PQ)
.296**
.003
Significant
Environmental Attitude
(EA)
.190
.050
Significant
Social Influence (SI)
-.025
.808
Not Significant
Trust (TR)
.466**
.000
Significant
Health Awareness (HA)
.518**
.000
Significant
Intention to use environmental friendly products (IUEFP)
1
-
Independent Variable
r-value
Significant / Not significant Significant
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Table 4.5.2: Correlation Analysis
Table 4.5.2 shows the correlation analysis between independent variable and dependent variable. Correlation Pearson Analysis is conducted to answer the research objective number 2, where it aims to examine the relationship between the factors and the intention to use environmental friendly products.
Based on Table 4.5.1, the correlation results for the first independent variable showed the moderate relationship correlation with r-value for Perceived Cost (PC) is .358. There is significant positive correlation between perceived cost and intention to use environmental friendly products since the significant level is at .000.
43
While for the relationship between Perceived Quality (PQ) and intention to use environmental friendly products also has a weak relationship correlation with r-value of .296.
The significant level is .003 proven that there is significant positive correlation between perceived quality and intention to use environmental friendly products.
For the relationship between Environmental Attitude (EA) and intention to use environmental friendly products, it shows that there is a weak relationship correlation with rvalue .190. The significant level is .050 proven that there is significant positive correlation between environmental attitude and intention to use environmental friendly products.
Next, for Social Influence (SI), the r-value is -.025. There is no significant positive correlation between social influence and intention to use environmental friendly products since the significant level is at .808.
While for the relationship between Trust (TR) and intention to use environmental friendly products also has a moderate relationship correlation with r-value of .466. The significant level is .000 proven that there is significant positive correlation between trust and intention to use environmental friendly products.
Lastly, for the relationship between Health Awareness (HA) and intention to use environmental friendly products, it shows that there is moderate relationship correlation with r-value of .518. The significant level is .000 proven that there is significant positive correlation between health awareness and intention to use environmental friendly products
44
Therefore, between the six independent variables, the higher is tending to be more influence intention to use environmental friendly products. Perceived Cost (PC), Perceived
Quality (PQ), Environmental Attitude (EA), Trust (TR) and Health Awareness (HA) were at significant level less than 0.05 or at 0.05. Therefore, there is relationship between this five independent variables and dependent variable. Only Social Influence with r-value of -.025 at significant level of .808 is not significant because significant level is more than 0.05 and there is no relationship between social influence and intention to use environmental friendly products. 4.6
Regression Analysis
According to Sekaran (2009), regression analysis is used in a situation where one
independent variable is hypothesized to affect one dependent variable. It is part of chapter is about coefficient of determination (R²) where it will explain the percentage of variance in the dependant variable that is explained by the variation of independent variable. Table 4.6.1 shows the results of regression analysis that has been analyzed.
R
R Square
Adjusted R
Square
Std. Error of the Estimate
Perceived Cost (PC)
.358**
.128
.119
.50045
Perceived Quality (PQ)
.296**
.088
.078
.51191
Environmental Attitude
(EA)
.190
.036
.026
.52618
Social Influence (SI)
.025
.001
-.010
.53580
Trust (TR)
.466**
.217
.209
.47431
Health Awareness (HA)
.518**
.268
.261
.45846
Independent Variable
Table 4.6.1: Regression Analysis
45
Independent Variable
R Square
Ranking
Perceived Cost (PC)
0.128 x 100 = 12.8%
3
Perceived Quality (PQ)
0.088 x 100 = 8.8%
4
Environmental Attitude
(EA)
0.036 x 100 = 3.6%
5
0.001 x 100 = 1%
6
Trust (TR)
0.217 x 100 = 21.7%
2
Health Awareness (HA)
0.268 x 100 = 26.8%
1
Social Influence (SI)
Table 4.6.2: Summary of Regression Analysis
Table 4.6.1 present the Regression result of Perceived Cost (PC), Perceived Quality
(PQ), Environmental Attitude (EA), Social Influence (SI), Trust (TR) and Health Awareness
(HA). The Regression Analysis were conducted to answer the research objective number 3, where it aims to identify the most important factor that influence the intention to use environmental friendly products. Based on Table 4.6.2, R Square show that 12.8% of the variance in the intention to use environmental friendly products explained by Perceived Cost
(PC), 8.8% of the variance explained by Perceived Quality (PQ), 3.6% explained by
Environmental Attitude (EA), 1% explained by Social Influence (SI), 21.7% explained by
Trust (TR) and 26.8% explained by Health Awareness (HA). This means that based on independent variable said that Health Awareness (HA) is the most important factor that influences the intention to use environmental friendly products which is 26.8% highest from other independent variable.
46
4.7
Hypothesis Testing
H1: Perceived cost has a positive effect on the intention to use environmental friendly products. As shown in Table 4.4.1, Perceived Cost (PC) showed the coefficient value of .358.
The value shows that the correlation exist and at significant level less than 0.05. Therefore,
H1 is accepted for this study. Perceived cost has a positive effect on the intention to use environmental friendly products.
H2: Perceived quality has a positive effect on the intention to use environmental friendly products. As shown in Table 4.6.1, Perceived Quality (PQ) showed the coefficient value of
.296. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H2 is accepted for this study. Perceived quality has a positive effect on the intention to use environmental friendly products.
H3: Environmental attitude has a positive effect on the intention to use environmental friendly products.
As shown in Table 4.6.1, Environmental Attitude (EA) showed the coefficient value of .190. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H3 is accepted for this study. Environmental attitude has a positive effect on the intention to use environmental friendly products.
47
H4: Social influence has a positive effect on the intention to use environmental friendly products. As shown in table 4.6.1, Social Influence (SI) showed the coefficient value of - .025.
The value shows that the correlation does not exist and not significant because significant level more than 0.05. Therefore, H4 is rejected for this study. Social influence has a negative effect on the intention to use environmental friendly products.
H5: Trust has a positive effect on the intention to use environmental friendly products.
As shown in table 4.6.1, Trust (TR) showed the coefficient value of .466. The value shows that the correlation exist and at significant level less than 0.05. Therefore, H5 is accepted for this study. Trust has a positive effect on the intention to use environmental friendly products
H6: Health awareness has a positive effect on the intention to use environmental friendly products. As shown in Table 4.6.1, Health Awareness (HA) showed the coefficient value of
.518. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H6 is accepted for this study. Health awareness has a positive effect on the intention to use environmental friendly products.
48
4.8
Conclusion
These chapters present the result of analysis, which were carried out using both descriptive and inferential analysis. As stated above, there is positive correlation between perceived cost, perceived quality, environmental attitude, trust and health awareness towards intention to use environmental friendly products. However, only social influence has negative correlation toward intention to use environmental friendly products. The next chapter will discuss the findings of the study.
49
CHAPTER 5
DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1
Introduction
This chapter illustrates and summarized the result and findings from the analysis from
the earlier chapters. The discussion will be based on the research objective as shown in
Chapter 1.
The result of the research was obtained through the analysis and data
interpretation of questionnaires.
5.2
The Discussion of Respondent 's Demographic Characteristics
There are 100 respondents that was chosen to be the sample in this study. Majority of
the respondents are female (52 respondents) and the remaining are male (48 respondents).
Majority of the them are from Melaka which is represented by 40% of the total respondents.
They come from three different districts which are Melaka Tengah with 31%, Alor Gajah with 6% and Jasin with 3%. Based on the questionnaire distributed, 87% of them have purchased or used environmental friendly products before, whereas the remaining 13% answered with a no.
5.3
To study the level of intention to use environmental friendly products.
The result in the Table 4.4.1 shows that the mean is at the high level as the mean is
4.14, within the rank of 3.68-5.00. This shows that levels of of intention to use environmental
50
friendly products are high. This answers the research objective number 1, which is to see the level of intention to use environmental friendly products. It is explained that most of the respondents answered between agree (4) and strongly agree (5). It means that they agreed in term of intention to use environmental friendly products.
Consumers are increasingly better informed and more aware of the environmental impact of products, and may demand businesses improve their environmental performances.
They may put pressure on businesses by boycotting or refusing to buy the products that are environmentally unfriendly. Furthermore, the emergence of green awareness makes people willing to spend extra money. (Yaacob & Zakaria, 2011)
5.4
The relationship between the factors and the intention to use environmental friendly products.
Table 4.5.2 shows the correlation analysis between independent variables and
dependent variable. Correlation Pearson Analysis is conducted to answer the research objective number 2, where it aims to examine the relationship between the factors and the intention to use environmental friendly products. Based on Table 4.5.2, the correlation results showed the coefficient value for Perceived Cost (PC) is .358 with significant (2-tailed) of
.000 shows that there is a relationship between Perceived Cost and Intention to Use
Environmental Friendly Products.
Green consumers are often willing to pay more for environmental friendly products and services. Furthermore, consumers have expressed a willingness to pay a premium to purchase environmentally friendly products. This suggests that consumers in general are a prime marketing target for products promising environmental benefits. (Barber,
Kuo, Bishop, & Goodman Jr., 2012)
51
The correlation results showed that there is a relationship between Perceived Quality
(PQ) and intention to use environmental friendly products with the coefficient value of .296.
Hughner et al. (2007) and Aguirre (2007) have identified in their studies that consumers perceived environmental friendly products to be higher quality, which referred to healthier, than the conventional product and; thus, motivated the consumers to use environmental friendly products. Furthermore, Naspetti and Zanoli (2009) mentioned that consumers preferred high quality products to low quality products. As such, they concluded that quality dimensions, such as economical, high durability, taste, health, appearance, convenience and process, are among the most important aspects in any environmental friendly products purchase. Next, the correlation results showed that there is a relationship between
Environmental Attitude (EA) and intention to use environmental friendly products with the coefficient value of is .190. The increasing consumers demands especially their pressure on protection of the environment, businesses have moved beyond simply addressing environmental regulatory issues and are introducing initiatives such as new products that are classified as green. Some business have developed packaging that is environmentally friendly or supporting cause-related promotions. (D 'Souza, Taghian, &
Khosla, 2007)
However, the correlation results showed that there is no relationship between Social
Influence (SI) and intention to use environmental friendly products with coefficient of -.025, significant (2-tailed) of 0.808. Jacquelyn A. Ottman (2008) wrote in Marketing Daily that
“the power of green lies in marketers’ hand”. It was not engineers, lawyers or legislators that had the most power to clean up the environment, instead the creative people are the one who have the power to design and promote cleaner products and technologies and help consumers
52
evolve to more sustainable lifestyles. Rex and Baumann (2007) found that green marketing could learn a lot of things from conventional marketing in discovering other means than labelling to promote green products like segmenting a wider range of consumers, working with the positioning strategies of price, place and promotion and actively engaging in market creation. A survey of the consumers who had experienced purchasing green or environmental products in Taiwan is carried out by Chang and Fong (2010) and found that green product quality and green corporate image could bring green customer satisfaction and green customer loyalty. Therefore, social influence seems not affecting much on the intention to use environmental friendly products.
The correlation results showed that Trust (TR) and Health Awareness (HA) have a relationship with intention to use environmental friendly products with coefficient of .466 and .518 respectively. A study by MR Shaharudin (2010) discovered that Malaysian consumers placed relatively high level of importance on health consciousness and perceived value in their intention to purchase organic food product. Chen (2010) on the other hand defines “green trust” as “a willingness to depend on one object based on the belief or expectation resulting from its credibility, benevolence, and ability about environmental performance”. Past research confirms that there is a positive relationship between green purchase intentions perceived value and customer trust, since high level of perceived value can increase post-purchase confidence of the product. (Chen & Chang, 2012)
5.5
The most important factor to influence the intention to use environmental friendly products.
Based on the findings, we can determine which of the 6 factors contribute or influence
the most in the intention to buy green products. This is determined by using regression
53
analysis. As shown in Table 4.6.2, Health Awareness resulted in the highest rank with 26.8%.
It is then followed by trust with 21.7%, perceived cost with 12.8% at the third rank and perceived quality with 8.8% on the fourth rank. Meanwhile in fifth and sixth rank are environmental attitude and social influence with 3.6% and 1% respectively. Based on this result, we can conclude that health awareness is the factor that influence the most towards the intention to use environmental friendly products.
5.6
Conclusion
This study was successful in completing three objectives mentioned in the earlier
chapter where the first objective is to study the level of intention to use environmental friendly products. Second objective is to examine the relationship between the factors and the intention to use environmental friendly products and the third objective is to identify the most important factor that influences the intention to use environmental friendly products. In order to complete the objectives, review on the concepts of previous studies on factors that affect the intention to use environmental friendly product is conducted. This research uses questionnaire to collect data from the people around Melaka. The data obtained were analyzed using Descriptive Statistics, Pearson Correlation and Regression analysis. The research then continues by exploring the findings of the study and further discussion on the findings. From this research, it is proven that perceived cost, perceived quality, environmental attitude, trust and health awareness have relationship with intention to buy environmental friendly products while social influence does not have relationship with intention to buy environmental friendly products.
In conclusion, this study helps in viewing the intention of the people towards environmental friendly products in Malaysia and also to identify the factor that influence the
54
most on the intention to use environmental friendly products. It is important to explore and to identify the most influenced factor in order to prove that the factor is relevant and can be used in further research in the future.
5.7
Recommendations
The awareness on the benefits of buying and using environmental friendly products
are there in Malaysian community, but the driving factors that influence the most the intention to buy and use it still varies. Many empirical research, study, and conceptual papers has been done to study this situation but it will be a waste if the factors and findings are not used to improve on the situation as well as promoting to a greener Earth. This study has proven that there is a relationship between intention to use environmental friendly products and perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness. Based on the discussion earlier, some recommendations are proposed.
5.7.1
For the community
The result shows that there are positive relationships between perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness towards intention to use environmental friendly products. It is advisable for the people in the community to expose themselves and increase awareness to use environmental friendly products. Prevention is better than cure. Thus, to create a better living community and a greener Earth, it is best to start with the smallest community, which is family.
Based on the findings, the researchers have found that cost of environmental friendly products are more expensive than the conventional products in the market. However, consumers have to always bear in mind that to enjoy an extra benefit of something has its
55
cost. Environmental friendly products offer higher quality in terms of the product itself, its ingredients, process of making it and the nutrients and benefits it gives to the consumers.
Therefore, consumers in the community should have a mindset of spending a little bit more as an investment for the good of today and the future.
Other than that, social influence would play a big role in driving the intention to buy environmental friendly products. As we are living in the era of technology and social media as the easiest reachable source of information, social influence is a good way to inculcate and triggers the intention to use environmental friendly products.
5.7.2 For organisations or marketers
Based on the findings, it seems that health awareness and trust are among the highest factors that influence the intention to use environmental friendly products. Thus, organizations and marketers should focus on creating advertisements and commercials that are more informative and create awareness on the importance of using environmental friendly products for their own good as well as for the environment. Organizations and marketers should be more proactive in getting consumers trust like signing memorandum of understanding (MoU) with the Ministry of Health Malaysia, for example.
5.7.3 Future Research
It would be more appropriate if this study is to conduct based on longitudinal method in which data will be collected at least at two different points of time. With longitudinal studies, the intention to use environmental friendly products can be traced at the different point of time to investigate whether intention has been translated into behaviour.
56
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60
APPENDICES
Serial No. _____________
APPENDIX A
FACTORS INFLUENCING THE CONSUMERS’
INTENTION TO USE ENVIRONMENTAL
FRIENDLY PRODUCTS
QUESTIONNAIRE
This study is to identify the factors influencing the intention to use Environmental Friendly
Products. This questionnaire takes approximately 10 minutes to be completed. Your participation in this study is very much appreciated. All information given will be treated with high confidentiality and will be used solely for this study only. Thank you.
Researchers:
Nor Baeyah binti Jahaya
Nurhidayah ‘Aliaa binti Che Zulhaimee
This questionnaire consists of 3 sections on 5 printed pages
Section A: Background Information
This section aims to collect the background information of respondents. Please TICK (/) in the appropriate box.
1.
2.
3.
4.
What is your gender?
Male
Female
1
2
What is your race?
Malay
Chinese
Indian
Others
1
2
3
4
What is your religion?
Islam
Non-Islam
1
2
What is your state of origin?
Perlis
Kedah
Pulau Pinang
Perak
Selangor
Negeri Sembilan
Melaka
Johor
Pahang
Terengganu
Kelantan
Sabah
Sarawak
Wilayah Persekutuan
Others
1
2
3
4
5
6
7
8
9
0
1
2
3
1
15
5.
6.
If your state of origin is Melaka, which district you are from?
Melaka Tengah
Alor Gajah
Jasin
1
2
3
Have you purchased or use any environmental friendly products before? Yes
No
1
2
Section B: Factors Influencing the Intention to use environmental friendly products
This section aims to identify the factors that influence your intention to use environmental friendly products. Please TICK (/) in the box according to the scale as below:
Scale
1
2
3
4
5
Description
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
No. Perceived Cost (PC)
1. To me, it is important that the environmental friendly product I use is cheap.
2. I always compare the environmental friendly product prices in a shop.
3. I always pay attention to price reductions when I buy an environmental friendly product.
4. Environmental friendly product is very expensive.
5.
6.
2
3
4
5
1
2
3
4
5
I am willing to pay more to use environmental friendly product. Despite being more expensive, I prefer to use environmental friendly product.
No. Perceived Quality (PQ)
1. I would use environmental friendly product because it has higher quality than conventional product.
2. Environmental friendly product has superior quality.
3.
Environmental friendly product is a natural product.
4.
Environmental friendly product is safer than conventional product.
Environmental friendly product has more nutritional value than conventional product.
5.
1
No.
1.
2.
Environmental Attitude (EA)
The current economic development method is destroying the environment.
I prefer using recycled products.
1
2
3
4
5
3.
I dispose of my garbage in different container.
4.
Unless we do something, environmental damage will be irreversible.
I practice environmental conservation task.
1
2
3
4
5
No. Trust (TR)
1. I feel that environmental friendly products’ are generally reliable.
2. I feel that environmental friendly products’ performance is generally dependable.
3. I feel that environmental friendly products’ environmental argument is generally trustworthy.
4. Environmental friendly products’ concern meets my expectations. 5. Environmental friendly products’ promises for environmental protection.
1
2
3
4
5
No. Health Awareness (HA)
1. I have the impression that I sacrifice a lot for my health. 2. I am prepared to live as healthy as possible.
1
2
3
4
5
5.
No. Social Influence (SI)
1. I learn about environmental friendly products from my friends.
2. I learn about environmental issues from my friends.
3.
4.
I discuss with my friends about environmental friendly products.
I discuss with my friends about environmental issues.
5.
I buy environmental friendly products with my friends.
6.
I share information regarding environmental friendly products with my friends.
3.
I think that I take health into account a lot in my life.
4.
I think it is important to know well how to live healthy.
5.
6.
7.
8.
My health is so valuable to me that I am prepared to sacrifice many things for it.
I have the impression that I pay more attention to my health than others.
I continually ask myself whether something is good for me.
I ask myself all the time whether the things I use daily are good for me.
Section C: Intention to Use Environmental Friendly Products
This section aims to identify your intention to use Environmental Friendly Products. Please TICK
(/) in the box according to the scale as below:
Scale
1
2
3
4
5
Description
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
No. Intention to Use Environmental Friendly Products
(IUEFP)
1. I would use environmental friendly products if it uses less energy.
2. I would use environmental friendly products if I know that the producing it is environmental friendly.
3. I would use environmental friendly products if it is more nutritious.
4. I would use environmental friendly products if it is safer to use.
5. I would use environmental friendly products if I can trust it is really environmental friendly.
6. I would use environmental friendly products if I can get them more conveniently.
THANK YOU
1
2
3
4
5
APPENDIX B
Frequencies
GENDER
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Male
48
48.0
48.0
48.0
Female
52
52.0
52.0
100.0
100
100.0
100.0
Total
RACE
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Malay
60
60.0
60.0
60.0
Cinese
22
22.0
22.0
82.0
Indian
8
8.0
8.0
90.0
Others
10
10.0
10.0
100.0
100
100.0
100.0
Total
RELIGION
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Islam
67
67.0
67.0
67.0
Non-Islam
33
33.0
33.0
100.0
100
100.0
100.0
Total
STATE OF ORIGIN
Frequency
Percent
Valid Percent
Cumulative
Percent
Pulau Pinang
5
5.0
5.0
5.0
Perak
6
6.0
6.0
11.0
Selangor
6
6.0
6.0
17.0
Negeri Sembilan
5
5.0
5.0
22.0
Melaka
40
40.0
40.0
62.0
Johor
17
17.0
17.0
79.0
Pahang
2
2.0
2.0
81.0
Terengganu
2
2.0
2.0
83.0
Kelantan
1
1.0
1.0
84.0
15
15.0
15.0
99.0
1
1.0
1.0
100.0
100
100.0
100.0
Valid
Wilayah Persekutuan
Others
Total
DISTRICT IN MELAKA
Frequency
Percent
Valid Percent
Cumulative
Percent
Melaka Tengah
31
31.0
77.5
77.5
Alor Gajah
6
6.0
15.0
92.5
Jasin
3
3.0
7.5
100.0
Total
40
40.0
100.0
System
60
60.0
100
100.0
Valid
Missing
Total
NUMBER OF CONSUMERS PURCHASED OR USE ENVIRONMENTAL
FRIENDLY PRODUCTS
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Yes
87
87.0
87.0
87.0
No
13
13.0
13.0
100.0
100
100.0
100.0
Total
Reliability
Scale: Independent Variable 1
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.665
6
Scale: Independent Variable 2
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.780
5
Scale: Independent Variable 3
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.647
5
Scale: Independent Variable 4
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.871
6
Scale: Independent Variable 5
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.812
5
Scale: Independent Variable 6
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.868
8
Scale: Dependant Variable
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.865
6
Descriptives
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
meanpc
100
2.17
5.00
3.6450
.56291
meanpq
100
2.40
5.00
3.8080
.55988
meanea
100
2.00
6.00
3.6060
.59252
meansi
100
1.00
5.00
3.2567
.71438
meantr
100
1.60
5.00
3.8040
.53332
meanha
100
2.88
5.00
4.1025
.53341
meaniuefp
100
2.67
5.00
4.1400
.53325
Valid N (listwise)
100
Correlations
Correlations
meanpc
Pearson Correlation meanpc Pearson Correlation
**
.329
**
meanha
.401
**
meaniuefp
.279
**
.358
**
.001
.000
.005
.000
100
100
100
100
100
100
1
**
.010
**
**
.001
.922
.000
.001
.003
100
100
100
100
100
1
**
**
*
.190
100
**
.321
Sig. (2-tailed)
.001
.001
N
100
.321
.304
.484
.451
.338
.243
.296
**
.002
.000
.015
.058
100
100
100
100
100
100
**
.010
**
1
.133
.180
-.025
Sig. (2-tailed)
.001
.922
.002
.186
.072
.808
N
100
100
100
100
100
100
**
**
**
.133
1
**
.329
.401
.484
.304
.451
100
Sig. (2-tailed)
.000
.000
.000
.186
N
100
100
100
100
**
**
*
.180
.279
.338
.243
.446
.466
**
.000
.000
100
100
100
**
1
.446
.518
**
Sig. (2-tailed)
.005
.001
.015
.072
.000
N
100
100
100
100
100
100
100
**
**
.190
-.025
**
**
1
Pearson Correlation meaniuefp .337
meantr
.001
**
.337
meansi
.002
100
Pearson Correlation meanha **
N
Pearson Correlation meantr .310
**
.310
.002
Pearson Correlation meansi 100
meanea
Sig. (2-tailed)
Pearson Correlation meanea 1
Sig. (2-tailed)
N
meanpq
meanpq
.358
.296
.466
.000
.518
Sig. (2-tailed)
.000
.003
.058
.808
.000
.000
N
100
100
100
100
100
100
100
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Regression
Independent variable 1
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanpc
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.358
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.128
.119
.50045
a. Predictors: (Constant), meanpc
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
3.607
1
3.607
Residual
24.544
98
.250
Total
28.151
99
F
Sig.
14.400
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanpc
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.904
.330
.339
.089
Beta
8.813
.000
3.795
.000
1 meanpc a. Dependent Variable: meaniuefp
.358
Independent variable 2
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanpq
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.296
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.088
.078
.51191
a. Predictors: (Constant), meanpq
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
2.470
1
2.470
Residual
25.681
98
.262
Total
28.151
99
F
Sig.
9.424
.003
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanpq
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
3.066
.354
.282
.092
Beta
8.669
.000
3.070
.003
1 meanpq a. Dependent Variable: meaniuefp
.296
Independent variable 3
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanea
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.190
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.036
.026
.52618
a. Predictors: (Constant), meanea
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
1.018
1
1.018
Residual
27.133
98
.277
Total
28.151
99
F
Sig.
3.678
.058
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanea
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
3.523
.326
.171
.089
Beta
10.802
.000
1.918
.058
1 meanea a. Dependent Variable: meaniuefp
.190
Independent variable 4
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meansi
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.025
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.001
-.010
.53580
a. Predictors: (Constant), meansi
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
.017
1
.017
Residual
28.134
98
.287
Total
28.151
99
F
Sig.
.059
.808
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meansi
Coefficients
Model
a
Unstandardized Coefficients
Standardized
t
Sig.
Coefficients
B
Std. Error
(Constant)
4.200
.251
meansi
-.018
.075
Beta
16.714
.000
-.243
.808
1
a. Dependent Variable: meaniuefp
-.025
Independent variable 5
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meantr
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.466
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.217
.209
.47431
a. Predictors: (Constant), meantr
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
6.104
1
6.104
Residual
22.047
98
.225
Total
28.151
99
F
Sig.
27.135
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meantr
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.369
.343
.466
.089
Beta
6.900
.000
5.209
.000
1 meantr a. Dependent Variable: meaniuefp
.466
Independent variable 6
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanha
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.518
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.268
.261
.45846
a. Predictors: (Constant), meanha
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
7.553
1
7.553
Residual
20.598
98
.210
Total
28.151
99
F
Sig.
35.933
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanha
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.016
.357
.518
.086
Beta
5.641
.000
5.994
.000
1 meanha a. Dependent Variable: meaniuefp
.518
References: Tsakiridou et al. (2008) 5 Ahmad and Juhdi (2010) Environmental Attitude 5 Chen (2009) Lee (2008) Trust 5 Chen (2010) Chen (2009) 6 Ahmad and Juhdi (2010) Section C
ENVIRONMENTAL FRIENDLY PRODUCTS
NOR BAEYAH BT JAHAYA
2011969509
NURHIDAYAH ‘ALIAA BINTI CHE ZULHAIMEE
2011291054
BACHELOR OF BUSINESS ADMINISTRATION
WITH HONOURS (HUMAN RESOURCE MANAGEMENT)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
KAMPUS BANDARAYA MELAKA
JULY 2014
FACTORS INFLUENCING THE CONSUMERS’ INTENTION TO USE
ENVIRONMENTAL FRIENDLY PRODUCTS
NOR BAEYAH BT JAHAYA
2011969509
NURHIDAYAH ‘ALIAA BINTI CHE ZULHAIMEE
2011291054
Submitted In Partial Fulfillment of The Requirement For The
Bachelor of Business Administration (Hons)
(Human Resource Management)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
BANDARAYA MELAKA
JULY 2014 i DECLARATION OF ORIGINAL WORK
BACHELOR OF BUSINESS ADMINISTRATION
WITH HONOURS (HUMAN RESOURCE MANAGEMENT)
FACULTY OF BUSINESS MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
“DECLARATION OF ORIGINAL WORK”
I, Nor Baeyah Bt Jahaya , (I/C Number:910812105282)
I, Nurhidayah ‘Aliaa Binti Che Zulhaimee , (I/C Number:920329035500)
Hereby, declare that :
This work has not previously been accepted in substance for any degree, locally or overseas, and is not being concurrently submitted for this degree or any other degrees
This project paper is the result of our independent work and investigation, except where otherwise stated
All verbatim extract have been distinguished by quotation marks and sources of my information have specifically acknowledged.
Signature:___________________________________________
Date: 04th July 2014
Signature:___________________________________________
Date: 04th July 2014
ii
LETTER OF TRANSMITTAL
04th July 2014
The Head of Program
Bachelor of Business Administration
(Hons) Human Resource Management
Faculty of Business Management
Universiti Teknologi MARA
110 Off Jalan Hang Tuah
75300 Melaka, Malaysia
Dear Sir / Madam,
SUBMISSION OF APPLIED BUSINESS RESEACRH REPORT
Attached is the project paper titled “FACTORS INFLUENCING THE CONSUMERS’
INTENTION TO USE ENVIRONMENTAL FRIENDLY PRODUCTS” to fulfillment the requirements as needed by the Faculty of Business Management, Universiti Teknologi MARA.
Thank you.
Regards,
……………………………………….
(Nor Baeyah Bt Jahaya)
2011969509
Bachelor of Business Administration (Hons)
Human Resource Management
……………………………………….
(Nurhidayah ‘Aliaa Binti Che Zulhaimee)
2011291054
Bachelor of Business Administration (Hons)
Human Resource Management iii ACKNOWLEDGEMENT
First and foremost, we would like to express our utmost gratitude to Allah SWT for easing and helping us in accomplishing this project paper. It is truly a blessing from him as every hurdle we are able to face calmly and smoothly.
In this respect, we would like to express tremendous gratitude to our advisor, En. Juan
Rizal bin Sa 'ari, for his support and guidance until we are able to accomplish our project paper.
Also to our second examiner, Pn. Norraeffa binti Md. Taib for her feedback.
We are also indebted to the citizens and people around Melaka for their help and participation and the time and effort that they willing to sacrifice to help us in our project paper.
Their cooperation smoothen the data collecting process and allow our advancement to the next stage easily.
Last but not least, very special thanks to our beloved parents and family for the encouragement and support through our years of study. With love, faith, patience and continuous support from them, we are able to complete the project paper with strong will and courage. These special thanks also are extended to our friends that endlessly provide support and cooperation whenever we needed help during the assignment.
Thank you. iv TABLE OF CONTENTS
Page
TITLE PAGE
i
DECLARATION OF ORIGINAL WORK
ii
LETTER OF TRANSMITTAL
iii
ACKNOWLEDGEMENT
iv
TABLE OF CONTENT
v
LIST OF FIGURES
viii
LIST OF TABLES
ix
ABSTRACT
x
CHAPTER 1
CHAPTER 2
INTRODUCTION
1.1 Research Background
1
1.2 Problem Statement
3
1.3 Research Objectives
5
1.4 Research Questions
5
1.5 Scope of study
5
1.6 Significant of Study
6
1.7 Limitation of Study
7
LITERATURE REVIEW
2.1 Environmental Friendly Products
8
2.2 Research Framework and Hypotheses Development
9
2.3 Chapter Summary
17
v
CHAPTER 3
CHAPTER 4
RESEARCH METHODOLOGY
3.1 Introduction
18
3.2 Research Design
18
3.3 Target population
19
3.4 Sampling
19
3.5 Data Collection Method
21
3.6 Questionnaire Design
23
FINDINGS
4.1 Introduction
26
4.2 Frequencies Analysis of Demographic Characteristics
27
4.2.1
Analysis of Respondent based on Gender
27
4.2.2
Analysis of Respondent based on Race
29
4.2.3
Analysis of Respondent based on Religion
30
4.2.4
Analysis of Respondent based on State of Origin
31
4.2.5
Analysis of Respondent based on District in
33
Melaka
4.2.6
Analysis of Respondent based on number of
34
consumers purchased or use environmental friendly products
4.2.7
Summary of the Result Frequency Analysis
35
4.3 Reliability Analysis
36
4.4 Descriptive Analysis
39
4.5 Pearson Correlation Analysis
42
4.6 Regression Analysis
45 vi CHAPTER 5
4.7 Hypothesis Testing
47
4.8 Conclusions
49
DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1 Introduction
50
5.2 The Discussion of Respondent 's Demographic
Characteristics
50
5.3 To study the level of intention to use environmental friendly products.
50
5.4 The relationship between the factors and the intention to use environmental friendly products
51
5.5 The most important factor to influence the intention to use environmental friendly products.
53
5.6 Conclusion
54
5.7 Recommendations
55
REFERENCES
APPENDICES
vii
LIST OF FIGURES
Figure:
Page
Figure 2.2.1
Theoretical Framework
9
Figure 4.2.1
Pie Chart Gender
28
Figure 4.2.2
Pie Chart Race
29
Figure 4.2.3
Pie Chart Religion
30
Figure 4.2.4
Pie Chart State of Origin
32
Figure 4.2.5
Pie Chart District in Melaka
33
Figure 4.2.6
Pie Chart Number of Consumers
Purchased or use Environmental Friendly
Products
34
viii
LIST OF TABLES
Table:
Page
Table 3.6.1
Questionnaire Design
24
Table 4.2.1
Gender
27
Table 4.2.2
Race
29
Table 4.2.3
Religion
30
Table 4.2.4
State of origin
31
Table 4.2.5
District in Melaka
33
Table 4.2.6
Number of Consumers Purchased or use
Environmental Friendly Products
34
Table 4.2.7
Summary of the Result Frequency Analysis
30
Table 4.3.1
Cronbach’ Alpha Range
37
Table 4.3.2
Result of Reliability Statistics
37
Table 4.4.1
Descriptive Analysis Result
40
Table 4.5.1
Correlation Coefficient Size
42
Table 4.5.2
Correlation Analysis
43
Table 4.6.1
Regression Analysis
45
Table 4.6.2
Summary of Regression Analysis
46
ix
ABSTRACT
The title of this research is Factors Influencing Consumers’ Intention To Use Environmental
Friendly Products. The dependant variable for this research is intention to use environmental friendly products. In this research, there are six independent variables that link with the dependant variable. The six independent variables are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness. For the data collection, questionnaire was used by the researchers. The researchers distributed the set of questionnaires to respondents in the shopping complex around Melaka. In conducting the research, the
Statistical Package for Social Science (SPSS) version 21.0 was used to analyzed the data. Results showed the five independent variables which are perceived cost, perceived quality, environmental attitude, trust and health awareness influencing the consumers’ intention to use environmental friendly products. But only one independent variable which is social influence does not influence the dependant variable. All the five independent variables have significant relationships that influence the consumers’ intention to use environmental friendly products.
x
CHAPTER 1
INTRODUCTION
1.1 Research Background
Industrial pollution is widely blamed for many environmental problems. Awareness of such issues has risen dramatically over recent years. As a result, concern for the environment now occupies a prominent place in public consciousness. Most business organizations realize this and fully accept the need to conduct their affairs in a socially responsible manner.
Environmental welfare is a major part of this obligation and compliance is a must.
Developing products that benefit rather than harm the environment can prove a highly positive exercise.
According to the article “From Concern to Consumption: Influencing the Purchase
Behavior of Green Consumers (2013)”, an ability to create such products is not sufficient though. Companies need to get the message across too. Knowledge about product ecofriendliness remains limited among many consumer groups, making it vital that firms and marketers provide information which is accurate and reliable (Chen & Chang, 2012).
According to Pallegrini and Farinello (2009), people nowadays are seeking quality of life not only by eating healthy and doing exercise to keep fit, mentally and physically but they are also using the environmental friendly product. So, by using the environmental friendly product, they agreed that quality of life can be achieved and healthy enough for them to live in.
1
Some of company in industry also produce environmental friendly product to minimize risk, conserve profit and gain good reputation (Dangelico and Pujari, 2010).
According to Chen et. al (2006), they believe that developing integrated environmental friendly product by using the green technology innovation can gain some distinctive competencies and can seek for competitive advantage. In addition, we must approach towards an environmentally sustainability in the future by apply it in the further research (Dangelico and Pujari, 2010).
In his study also emphasizes on the role of public policy to play an active role in stimulating demand towards environmental friendly products through subsidies and rebate.
Government today had launched too many policies and scheme such as Green Technology
Financing Scheme to attract the consumers to buy and realize the benefits of environmental friendly product. Furthermore, according to Chen (2010), he said that future researcher need to be more focus on the consumers’ attitude and social influences towards intention to buy or use environmental friendly product in the market.
Shopping complex is one of the places that provide consumers with environmental friendly product. So, it become our focus to identify the intention of consumers to buy environmental friendly product by using six independent variables that have been considered in determining the consumers’ intention which are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness.
Consumers pay more attention to the rise of environmental protection activities and the impact of industrial disasters such that consumer environmentalism is more prevalent and environmental regulations are stricter in the world. Consequently, the public is more likely to buy green products that are not destructive to the environment (Chen, 2010). Because of the popular environmentalism and the strict environmental regulations, companies should
2
develop business models that can comply with the environmental trends. In order to respond to green needs of consumers, the notion of green marketing has been widely accepted in both of the practical and academic areas. Green marketing is a concept, which includes all marketing activities that are developed to stimulate and to sustain consumers ' environmental friendly attitudes and behaviors. Companies can adopt green marketing activities to undertake differentiation strategies and to satisfy customers ' environmental needs or desires.
In conclusion, the theoretical framework is developed and we can identify whether the independent variable have relationship with dependent variable or not by testing the hypothesis. We can also determine which independent variable that has very strong relationship with dependent variable at the end of this study.
1.2
Problem Statement
According to Ahmad and Juhdi (2010); Shaharudin et al., (2010b), as pointed out by
several scholars, it is highly important to identify and examine the underlying factors that might influence the intention of consumers to purchase and use environmental friendly products such as organic food or products that are not harmful to environment. Over the years, such studies have been extensively conducted in Europe region (Honkanen et al., 2006;
Lodorfos and Dennis; 2008; Tsakiridou et al., 2008; Ozcelik and Ucar, 2008; Michaelidou and Hassan, 2008) and North American region (Aguirre, 2007; Li et al., 2007; Bellows et al.,
2008).
However, research studies in Malaysia are still lacking and limited. Obviously, the researches in foreign countries definitely raise a question of applicability to the local market.
In addition, according to Dangelico and Pujari (2010), the slow pace of environmental
3
friendly product are also affected by the consumer that have lack of knowledge and awareness towards the benefits of environmental friendly products. It is maybe because government, agencies and also social media did not advertise the benefits of environmental friendly product aggressively to capture the consumer’s attention and awareness.
Consumers today have started to have concern that their purchasing behavior will cause a big impact to the environment such as global warming and pollutions. Although
Malaysia has undergone huge development, the environmental responsible behavior practices are still low among Malaysian consumers. An example of the lack of environmental responsible behavior is shown in an article in Bernama whereby garbage thrown by Penang residents is the main cause of river pollution in the state. Therefore, studying the factors of consumer’s green purchase behavior would definitely benefit many including green marketers and the Earth. Many Malaysian consumers are aware of the deteriorating natural environment in Malaysia but they behave oppositely to conserve and preserve the environment. Therefore, the factors that determine and contribute to the green purchase behavior of Malaysian consumers would be worth to find out.
Nowadays, there are small number of research on the intention to use environmental friendly products has been carried out in other states in Malaysia. Thus, there is a need to scrutinize the consumers’ intention to buy environmental friendly product in other states in
Malaysia. Lastly, the segmentation of consumers in different states may have different needs, attitudes and purchasing behaviors especially in a green technology city for instance Melaka
World Heritage City.
Therefore, this study has been carried out to fill up the above mentioned gaps by looking into consumers’ intention to use environmental friendly product.
4
1.3
Research Objectives
1.3.1.
To study the level of intention to use environmental friendly products.
1.3.2.
To examine the relationship between the factors and the intention to use environmental friendly products.
1.3.3
To identify the most important factor that influence the intention to use environmental friendly products.
1.4
Research Questions
1.4.1
What is the level of intention to use environmental friendly products?
1.4.2
Are perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness influence the intention to use environmental friendly products?
1.4.3
What is the factor that most influence the intention to use environmental friendly products?
1.5
Scope of Study
This research is a study on factors that influencing the consumers’ intention to use
environmental friendly products. A survey was conducted among consumers’ who come and buy any environmental friendly products that are available at some shopping complex. In this research, we use non-probability sampling because we do not have specific population frame.
The sampling that we use is convenient sampling which is we collect information from members of the population who are conveniently available to provide it. They consist of
5
variety of race, gender, religion and also from different district and areas. Some of them become the respondents and they were given questionnaires to answer for a few minutes. The area that researcher covered is at some shopping complex in Melaka.
1.6
Significant of Study
1.6.1
Education Purpose
This research provides useful information regarding the consumers’ intention to use environmental friendly products and adds more information about the topic. It also gives support and new evidence to the previous research that have been done before.
1.6.2
Researcher
This study helps the researcher get more knowledge about the topic of study.
Researchers become more effective in earning the knowledge and have the real experience in conducting the research.
1.6.3
Management of shopping complex in Melaka
The studies provide additional and useful information to management of shopping complex in Melaka about the level of consumers’ intention to use environmental friendly products related to their perceived cost, perceived quality, environmental attitude, social influence, trust and also health awareness.
1.6.4
Consumers
This study gives additional information about the intention to use environmental friendly products and it also is a good reference to the consumers that want to explore more about the topic.
6
1.7
Limitation of Study
1.7.1
Information Constraint
Some of the information are strictly confidential and out of reaches of any outsiders.
Researchers cannot freely take information without prior approval of the management of shopping complex in Melaka. This is because some information about the shopping complex in Melaka are confidential. Example of the confidential information is the revenue of environmental friendly product that they earned.
1.7.2
Respondent’s Cooperation
The difficulty in getting relevant information and documents that related to the study was a limitation of the study. Researchers have problem in searching data because some of them are irrelevant. It is because a few of the respondent could not understand what the questions asked appropriate to language barrier. Then, respondent also refuse to give their full cooperation during question process. It is impossible to receive hundred per cent cooperation from respondent because a few of them do not give a full concentration when answer the question, unwilling to answer the question honestly and precisely.
1.7.3
Lack of Experience
Since this is the second time the researchers has conducted a research, the researchers still have not enough experience and certain skills that lead to a good research paper writing and analysis.
7
CHAPTER 2
LITERATURE REVIEW
2.1
Environmental Friendly Product
According to Paco (2009), environmental friendly products can be defined as products
that are safer and not harmful to the environment. Magistris (2010) said that it is believed environmental friendly products are much healthier and higher quality than traditional produce products. In the United States, health market is one of the two markets that drive in using environmental friendly products (Knudson, 2007). Environmental friendly products such as energy efficient products can be categorized as products innovation (Judianto et al.,
2012). While according to Jason (2007), he defined green products as the product that less harmful to the environment and minimize the environment impact of product use.
Theory of Planned Behavior (TPB)
Theory of planned behavior (TPB) was introduced by Ajzen (1991) as the extension of the theory of reasoned action (TRA). Intention to perform a particular behavior is the central factor of TPB. According to Ajzen (1991), intention is the indication of how hard people are willing to try, or how much effort people are planning to exert, in order to perform a behavior. It is believed that the stronger the intention, the more likely the behavior will be performed. Most importantly, intention can be predicted by three predictors which are attitudes towards the behavior, subjective norms with respect to the behavior and perceived control over the behavior. These three predictors together are influenced by various types of salient beliefs.
8
In addition, Ajzen (1991) also stated that TPB can be applied in many areas of interest.
For instance, East et al. (2008) mentioned that TPB has long been applied to predict consumers’ intentions in many areas such as food choice and buying environmentally friendly products. Indeed, previous researchers have used TPB to prove that relationships existed between the influencing factors and the consumer purchase intention to use environmental friendly products such as organic food (Aertsens et al., 2009). In addition,
Lodorfos and Dennis (2008) also employed TPB in their study to identify and examine the determinants that influenced consumers’ intention to purchase environmental friendly products. Thus, following the above researchers, TPB is not only used to measure intention but also can measure intention to buy environmental friendly products among the consumer.
2.2
Research Framework and Hypotheses Development
Figure 2.2.1 illustrates the conceptual framework of this study. As discussed above, it
was developed based on Theory of planned behavior (TPB) a model by Venkatesh et al.,
2003. The following section discusses about the conceptual framework in details.
Specifically, the independent variables, dependent variables and hypotheses are discussed.
Perceived Cost
Perceived Quality
Intention to use environmental friendly products Environmental Attitude
Social Influence
Trust
Health Awareness
Figure 2.2.1: Theoretical Framework
9
Perceived Cost
The perceived cost is the independent variable for the research. There are many definitions about the perceived cost, however in this study we only look at to some of this definition as a reference and to make the title of this research become clearer.
According to Essoussi and Zahaf, 2009; Somnath,2010, the definition of perceived cost can be defined as the degree of an individual’s believe that environmental friendly products with high cost did not affect them to buy but they are willing to pay when the products have high quality. Individuals willing to pay higher price which is up to 40 percent more for environmental friendly products (Giuseppe and Federica, 2009). Other researcher also found that people are willing to utilize environmental friendly products despite of their higher price
(Efthimia et al. 2008; Shu, 2009). On the other hand, Mintel (2006) also stated that consumers are willing to pay more for environmental friendly products but they not regularly practice the green buying behavior. Furthermore, consumers also will pay more for environmental friendly products as they do not have to sacrifice comfort or convenience
(Jason, 2007).
Hence, in this study, perceived cost can be defined as consumers’ willingness to buy environmental friendly products even though the products is expensive. Thus, the following hypothesis is proposed:
H1: Perceived cost has a positive effect on the intention to use environmental friendly products. Perceived Quality
Apart from price, consumers also consider product quality as a main criterion in purchasing a product. For environmental friendly products, Hughner et al. (2007) and Aguirre
10
(2007) have identified in their studies that consumers perceived environmental friendly products to be higher quality, which referred to healthier, than the conventional product and; thus, motivated the consumers to use environmental friendly products. Furthermore, Naspetti and Zanoli (2009) mentioned that consumers preferred high quality products to low quality products. As such, they concluded that quality dimensions, such as economical, high durability, taste, health, appearance, convenience and process, are among the most important aspects in any environmental friendly products purchase. In addition, Tsakiridou et al. (2009) also found that a majority of consumers were willing to pay a premium price for the environmental friendly products which were deemed to be high quality. They further stressed that consumers have a tendency to purchase quality products especially for usage. Luzio and
Lemke (2013) concluded that green products bought at farmer’s market and local stores are way preferable than supermarkets as the products are more genuinely organic in many ways.
Perceived quality is a key factor in maintaining consumer’s satisfaction that ensures longterm relationship or loyalty towards the environmental friendly product (Chen & Chang,
2013). According to Paul and Rana (2012), satisfaction is also derived from product quality and additional factors which include taste, freshness, variety and product information; and product value is increased by environmentally-friendly contents and packaging.
Hence, in this study, perceived quality is defined as the extent to which individuals perceive that purchase of environmental friendly products will provide them with high quality products. Thus, the following hypothesis is proposed:
H2: Perceived quality has a positive effect on the intention to use environmental friendly products. 11
Environmental Attitude
In identifying the reasons to use environmental friendly products, a majority of studies have explain the purchase of environmental friendly products to consumers’ environmental attitudes and concerns (Hughner et al., 2007; Essoussi and Zahaf, 2008; Ozcelik and Ucar,
2008). Environment one of the important factors that will affect consumers purchase decision to use environmental friendly products (Magistris and Gracia, 2008). In addition, according to Magistris and Gracia (2008) also, consumers who have positive attitudes towards the environment will have high percentage or intention to use environmental friendly products and vice versa. Consumers who have realize the benefits of protecting the environment also will more likely to use environmental friendly products, such as organic food (Lin, 2009). It means that consumers who have positive attitude and concern about the environment are more intended to use environmental friendly products. In Taiwan, Chen (2009) asserted that consumer’s attitude toward environmental degradation were the determinants for a consumer to form a positive attitude toward environmental friendly products. Furthermore, according to
Ahmad and Juhdi (2010) also stated and agreed that environmental attitude positively related to environmental friendly products attitudes. Some previous researcher also had stated the interrelationship between values, attitude and environmental behavior and they also come out with effect of the ‘value-attitude-behavior’ model (Judianto et al., 2012). Laroche et al.,
2001 also had stated that the concept of lifestyle is more likely used by marketing managers in research to study the intention to buy environmental friendly products.
Hence, in this study, environmental attitude is depends on the consumers awareness and the extent to which an individual believe that by use environmental friendly products, it will help them to protect the environment. Thus, the following hypothesis is proposed:
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H3: Environmental attitude has a positive effect on the intention to use environmental friendly products.
Social Influence
According to Klockner and Ohms (2009), social influence was considered as a part of social norm or pressure on the development and activation of personal norms. For example,
Aertsens et al. (2009) concluded that environmental friendly products as example of organic purchases were significantly related to the intention to purchase in combination of
(perceived) behavioral control and the intention turn into influenced by attitude (personal and subjective) norms and (perceived) behavioral control. Moreover, the likelihood to purchase environmental friendly products depended on certain individual characteristics and one of it was reference group influence (Gupta and Ogden, 2009). Other studies indicated that consumer’s concern towards health and environmental poverty could be one of the determinants of consumers purchasing and having positive attitude towards environmental friendly products (Fang Chen, 2009; First and Brozina, 2009).
Interpersonal influence primarily consists of the impact of acting to persuade, convince or influence others for the purpose of having a specific effect. An important determinant of an individual 's decision and behavior are the influence of others. The social influences of peers, family groups and influential bodies can convey information and activate emotional reactions through factors such as modelling, instruction and social persuasion. Environments such as family, friends and peer networks strongly influence buying decisions that involve environmentally friendly products. Interpersonal processes and relationships between opinion leaders and professionals are likely to have a substantial impact on similar attitudes towards buying decisions. (Cheah & Phau, 2011)
13
Consumers are often influenced by the consumption patterns of neighbors, co-workers, opinion leaders and other peers. According to Oliver & Lee (2010) individuals assign a social value to products, which evolve during their interactions with others and with information.
So, individuals who feel a product has a high social value will look for information that helps them evaluate the benefits of purchasing the product. Especially for high involvement products, which often are symbols of status, luxury, and personal identity, the way others perceive consumer use of products is likely to be an important factor in purchase considerations. In this study, social influence is defined as the extent to which an individual being influence by social, other individuals or reference groups in purchasing and using environmental friendly products. Thus, the following hypothesis is proposed:
H4: Social influence has a positive effect on the intention to use environmental friendly products. Trust
Trust is defined as the acceptance and trust by individuals towards environmental friendly products for example organic foods being offered in the market based on the labels, certification process; which defines and controls the process and the standards being followed
(Essoussi and Zahaf, 2008). According to Essoussi and Zahaf (2009), one of the barriers which limiting the utilization of environmental friendly products was individuals’ lack of knowledge and trust with regards to organic foods. Trust towards the retailers and the certification process are important determinants of environmental friendly products consumption (Essoussi and Zahaf, 2009). For example, Picket-Baker and Ozaki (2008) mentioned that consumers generally trusted popular brands because the risk was much lower than the less well-known brand. Other researcher, such as Hwa Lin (2009) mentioned that
14
consumers lost their trusts and refused to purchase environmental friendly products from companies which have been accused of being environmental polluters.
Trust caused from three beliefs – integrity, benevolence, and ability – is an expectation held by one party that the word, promise, or statement of another party can be relied on.
Besides, trust is an extent of the confidence that another party would behave as expected.
Customer trust is a fundamental determinant of long-term consumer behavior (Lee, Park, &
Han, 2011). Hence, consumer purchase intentions are affected by consumer trust (Harris &
Goode, 2010). Past literature shows that customer trust is a determinant of consumer purchase intentions. If buyers have had a trust experience with the seller, they would possess a higher level of purchase intentions. Thus, consumer trust is an antecedent of customer purchase intentions. Previous research shows that customer trust would positively influence customer purchase intentions. Thus, Chen (2010) argues that green trust would influence consumers ' purchase behaviors in the environmental era. Lu, Zhao & Wang (2010) indicate that customer trust positively affects customer purchase intentions.
According to (Chen, 2010), trust is essential as a strategic ingredient in the success of relationships. Furthermore, to trust a brand completely indicates that there is a high expectancy or probability for its consumers such that the brand would obtain positive evaluation. Considering brand trust as expectancy, it is based on consumer’s belief that the brand is consistent, competent, honest and responsible. Social exchange theory indicated that customer trust would enhance the social embeddedness of the consumer-provider relationship to further increase the customers’ commitment to the relationship, which in this case is trust towards environmental friendly product.
In this study, trust is defined as the extent to which an individual believes in buying environmental friendly products is secure in terms of technology, certification process,
15
standards and control being followed by the producer. Thus, the following hypothesis is proposed: H5: Trust has a positive effect on the intention to use environmental friendly products.
Health Awareness
Apart from the perceived cost, perceived quality, environmental attitude, social influence and trust, health awareness also one if the factors influencing consumer’s intention to use environmental friendly products. Community nowadays are aware from any infecting disease or chronic disease such as heart diseases, blood pressure diseases and diabetes as well as drug addiction and misuse of medications (Mamdouh M. Ashraah et al. , 2013). According to
Mamdouh M. Ashraaf et al. , 2013, health awareness includes various aspects that will involve all healthy behavioral and cognitive requirements such as personal health, way of people protect their health, psychological health and others. So, individuals that have high level of health awareness will more tend to use or buy environmental friendly products because it is one of the way for them to protect their health.
Health awareness also educating individuals and enhancing individual’s knowledge to change their behavior or habits especially when the disease spread in a community (Abdo,
2013). When an individuals have knowledge about an environmental friendly products, they will change their behavior to live in healthy ways. According to Ahmad (2012), a person that have healthy mindful is the right individual who will enjoys high levels of health that consist of healthy, social mental, and also physical integration.
According to Chen (2009) , readiness to take healthy actions is one of the factors that influence consumer’s attitude toward organic foods. It means that, the consumer’s health awareness influences the attitude or intention to use and buy environmental friendly products.
16
In addition, environmental awareness are also factor that lead consumer to purchase organic foods or environmental friendly products. Moreover, a healthy lifestyle that concern on physical health-related activities may increase the impacts of health awareness on their attitude towards environmental friendly products (Chen, 2009).
In this study, health awareness can be defined as the knowledge of an individual about the present and future consequences of their behavior and also of their lifestyle that will bring some risks or can harm them.Thus, the following hypothesis is proposed:
H6: Health awareness has a positive effect on the intention to use environmental friendly products. 2.3
Chapter Summary
From this chapter, we can conclude that after starting the research, we know how to do literature review. Literature review is very important to guide researcher what to do before starting research and after finish the research. Besides that, literature review helps to identify opposing views and to identify other people working in the same fields. Literature review gives good impression to the researcher for learning purpose.
After the literature review, researchers proceed with drawing the framework. The framework is useful when searching for the variables either independent variable or dependent variable for “Factors Influencing The Consumers’ Intention to Use Environmental
Friendly Products”. Thus, research hypotheses can be created using the theoretical framework helped by research question and research objective.
17
CHAPTER 3
RESEARCH METHODOLOGY
3.1
Introduction
This chapter was focus on the methodology that has been use in this study.
Methodology is a description of the procedure employed in order to achieve the objectives of the study. For the purpose of conducting this study, information was obtaining from both the primary and secondary sources.
3.2
Research Design
Research design involves a sequence of rational decision making choices with issues
concerning to decision regarding the purpose of the study, the types of investigation, the extent of researcher interference, the study setting, the unit of analysis and the time horizon of the study (Sekaran & Bougie, 2010).
3.2.1
Purpose of Study
To study on factors influencing the consumers’ intention to use environmental friendly products at shopping complex in Melaka.
3.2.2
Type of Investigation
This research paper is using causal design because this research is to identifying the cause and effect relationship among variables.
18
3.2.3
Research Interference
This study is conducted in natural environment with minimal interference by the researcher. 3.2.4
Study Setting
The studies are non-contrived setting or field experiments but with researcher interference to a moderate extent.
3.2.5
Unit of Analysis
In this study, individuals have been choosing as unit of analysis because the data is collected from consumers’ of shopping complex in Melaka.
3.3
Target Population
Population refers to the entire group of people, events or things of interest the
researchers wish to investigate. In this study, the population is among community living in the selected states. They are among government and non government employees, students and community in the selected states. Basically, a green technology city in mind to held this study. The study populations are the consumers of shopping complex in Melaka that come from different district.
3.4
Sampling
Sampling is the process of selecting items from the population, so that a study of the
sample and an understanding of its properties or characteristics make it possible to generalize such properties or characteristics to the population elements. Sampling involves the
19
population, sampling frame, sampling techniques, sampling size and sampling process. The benefits using sampling it is efficiency and quickly for gathering data.
3.4.1
Sampling Techniques
We must determine what type of sampling technique that we want to conduct. For this research, the sampling technique that we use is non probability sampling. In non probability sampling, the elements in the population do not have any probabilities attaches to them being chosen as a sample subjects. We also use convenience sampling in the research. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it. For example, we were distributing the questionnaire to all consumers’ of shopping complex in Melaka who is available to answer the questionnaire at that time. Everybody of the population can become the respondents’ in regards which district they are from. So, it is relevant to use convenience sampling as it is the best way of getting information quickly and efficiently.
3.4.2
Sampling Size
Sampling size is the actual number of subjects chosen as a sample to represent the population characteristics. Sampling size is important as it ensure the amount of variability in the population itself. So, we determine the relevant number of the respondents of this research. For this research, our sampling size is 100 respondents who are convenience to answer the questionnaire from the total consumers of shopping complex in Melaka.
20
3.5
Data Collection Method
In data collection, this study entailed distribution of self-administered closed-
questionnaire survey adapted from previous researchers. Sekaran (2003) mentions that closed questions help respondents to make quick decisions to choose among the several alternatives before them. Furthermore, they help the researcher to easily code the information for subsequent analysis. As such, this study utilizes the closed questions in the survey.
In addition, as this paper is a study of perceptions on how strongly the respondents agree or disagree with certain statements, Likert scale is the best to be used (Sekaran, 2003).
The researchers have decided to follow Sekaran (2003) by using five-point Likert scale in the study because it is able to elicit responses with regard to the object, event or person studied.
3.5.1 Primary Data
According to Uma Sekaran (2003), primary data refer to a certain other types of information such as perceptions and attitudes of employees are best obtained by talking to them; by observing events, people, and objects; or by administering questionnaires to individuals. So, questionnaire was our main and the only method that we use in obtaining the primary data. The questionnaire was distributed to 100 respondents at shopping complex in
Melaka. Each of the questionnaires stated the purpose of the study and also the respondent’s confidentiality. The questionnaire then was being personally distributed randomly to the respondents and it was be supervised by the researcher and distribute as well as collected on the appropriate time of the survey.
21
3.5.2 Secondary Data
Secondary data is the second hand data where the data have been processed and it has lot of advantages. One of the advantages is it save time of the researcher in order to find an additional information or data for their research. In this research there are two types of sources for our secondary data that we use and that was:
3.5.2.1 Internal Sources
For this research we are using the internal sources as one of our data collection method where we get the data about the shopping complex in Melaka by their management itself. There are two data that we get from the officer of the shopping complex such as the numbers of consumers that use environmental friendly products previously and a little bit information about the establishment of the shopping complex.
3.5.2.2 External Sources
There are a lot of external sources that can help the researcher to get the second hand data. The sources can be the textbook, theses, conferences proceedings, unpublished manuscripts, report, newspapers and the internet. In this research we was using several sources for getting the secondary data that are from journals, theses, the internet, newspaper and also from the references books.
Theses
The theses from the previous researcher were very helpful for us to do this research.
The theses was either from the outside researcher and also the theses of our senior students that can be easily been referred at Library of UiTM Kampus Bandaraya Melaka.
22
Internet
We were using the internet to get an additional knowledge about this study and it also being a lot of easier for us to find the information through the internet that can easily be access anywhere, everywhere and anytime.
Newspaper
We also got some additional information about the shopping complex from the newspaper such as in the ' Melaka Hari Ini '. More than that we are also gets some knowledge by reading some issues that has been published through the newspapers.
References Book
We use the reference book especially to study about our theoretical framework model
(Theory of Planned Behavior). For this research, we use the research methodology textbooks as our references.
3.6
Questionnaire Design
3.6.1
Structured Questionnaire
This technique is applied because it facilitates researchers in designing the questions and it be standardized to all target populations as well as it reach the specific purposes easily.
Basically, the questions were designed and followed the same format and presented in the form of:
i.
Multiple choices questions: the respondent need to tick (/) the preferable answer in a box.
23
ii.
Likert Scale
1. Strongly Disagree, 2. Disagree, 3. Neutral, 4.Agree
5. Strongly Agree
The questions in the questionnaire were specially designed into three (3) sections namely
Section A, Section B, and Section C. The numbers of question are shown below:
Section
No. of
Items
Sources
Section A
Demographic
6
Designed by researchers
6
Botonaki et al. (2006) and
Section B
Perceived Cost
Tsakiridou et al. (2008)
5
Perceived Quality
Shaharudin et al. (2010) &
Ahmad and Juhdi (2010)
Environmental Attitude
5
Chen (2009)
Social Influence
6
Lee (2008)
Trust
5
Chen (2010)
Health Awareness
8
Chen (2009)
6
Ahmad and Juhdi (2010)
Section C
Intention to Use Environmental
Friendly Products
Table 3.6.1: Questionnaire Design
24
3.6.1.1 Section A (Demographic Profile)
Section A consists of (6) questions providing students demographic information. In addition, information regarding gender, race, religion, state of origin and so on was acquired in order to provide general background of the consumers. All questions in Section A are using multiple choice questions and dichotomous response questions.
3.6.1.2 Section B (Factors Influencing the Intention to use Environmental
Friendly Products)
Section B contains (35) questions which are about the factors influencing intention to use environmental friendly products . Questions are using the likert-scale question. The objective of asking these questions is to identify the level of consumers’ intention towards the perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness at shopping complex in Melaka.
3.6.1.3 Section C (Intention to Use Environmental Friendly Products)
Section C consists of (6) questions and it identifies the intention to use environmental friendly products of consumers’ at shopping complex in Melaka. Questions are using the likert-scale question.
25
CHAPTER 4
FINDINGS
4.1
Introduction
All coded date were keyed into the computer for further analysis by using Statistical
Package for Social Sciences (SPSS) version 21. Both the descriptive and inferential statistical analysis techniques were used in the study. Specifically, percentage, mean, standard deviation, correlation and regression analysis were used to analyze data.
Percentage, mean and standard deviations were used in the initial phase.
Subsequently, in hypotheses testing, Pearson correlation was employed to determine the relationship between independent variables and dependent variables. Meanwhile, multiple regression analysis was conducted to examine the simultaneous effects of independent variables on dependent variable.
The data obtained was processed and analyzed using the Statistical Package for Social science (SPSS) program version 21.0 as to get the most accurate answer. Coding with mod before key in the data into SPSS. This software is very important in data processing especially to link the data with the finding. The data was analyzed and presented in readable and interpretable form.
26
4.2
Frequency Analysis
A Frequency Table is a table that lists items and uses tally marks to record and show the number of times they occur. A frequency table is a way of summarizing a set of data. It is a record of how often each value (or set of values) of the variable in question occurs. It may be enhanced by the addition of percentages that fall into each category.
Frequency or one-way tables represent the simplest method for analyzing categorical
(nominal) data (refer to Elementary Concepts). They are often used as one of the exploratory procedures to review how different categories of values are distributed in the sample.
SPSS version 21.0 is applied to find the result of data collected. A frequency distribution is a mathematical distribution whose objective is to obtain a count of the number of response associated with different values on one variable and to express these counts in percentage terms. A frequency distribution for a various variables producing a table of frequency counts and percentages for all the values associated with those variables.
4.2.1
Analysis of Respondent based on Gender
Gender
Frequency
Percentage (%)
Male
48
48.00
Female
52
52.00
Total
100
100.0
Table 4.2.1: Gender
27
Male
48%
Female
52%
Male
Female
Figure 4.2.1: Gender
Figure 4.2.1 shows the percentage by gender. According to Table 4.2.1 a total 100 respondents have participated in this study. There are 48 male respondents, which is 48% of total respondents, while the majority of respondents are female, which is 52% of the total respondents represent 52 respondents. The survey had conducted at shopping complex around
Melaka and most probably female had a largest number of respondents because they always buy or use goods at shopping complex rather than male. So, that is why they can represent the larger number of respondents.
28
4.2.2
Analysis of Respondent based on Race
Race
Frequency
Percentage (%)
Malay
60
60.0
Chinese
22
22.0
Indian
8
8.0
Other
10
10.0
Total
100
100.0
Table 4.2.2: Race
Others
10%
Indian
8%
Malay
Chinese
Indian
Others
Chinese
22%
Malay
60%
Figure 4.2.2: Race
Figure 4.2.2 shows types of races by consumers that use environmental friendly products. As we can see, the pie charts shows that most of the respondent are Malays, 60 respondents which is 60% from the total amount of respondents. On the other hand, there are
29
only 8 respondents who are Indian which is 8%. Chinese also have large participation as much as 22 respondents which is 22%. Last but not least, there are 10 respondents from others races which is 10%.
4.2.3
Analysis of Respondent based on Religion
Religion
Frequency
Percentage (%)
Islam
67
67.0
Non-Islam
33
33.0
Total
100
100.0
Table 4.2.3: Religion
Non-Islam
33%
Islam
Non-Islam
Islam
67%
Figure 4.2.3: Religion
Figure 4.2.3 indicated the percentage of the respondents based on religion. It showed that most of the respondents are Islam which is 67 % (67 respondents) while non-Islam only
33% which is 33 respondents.
30
4.2.4
Analysis of Respondent based on State of Origin
State of origin
Frequency
Percentage (%)
Pulau Pinang
5
5.0
Perak
6
6.0
Selangor
6
6.0
Negeri Sembilan
5
5.0
Melaka
40
40.0
Johor
17
17.0
Pahang
2
2.0
Terengganu
2
2.0
Kelantan
1
1.0
Wilayah Persekutuan
15
15.0
Others
1
1.0
Total
100
100.0
Table 4.2.4: State of origin
31
Pulau Pinang
Perak
Selangor
1%
1%
2%
15%
2%
5%
Negeri Sembilan
6%
Melaka
5%
6%
Johor
Pahang
17%
Terengganu
40%
Kelantan
Wilayah Persekutuan
Others
Figure 4.2.4: State of Origin
Table 4.2.4 shows the state of origin of the respondents that answered our questionnaire. The highest percentage, 40% which represents 40 respondents are from people in Melaka itself because this research had been carried out in the state of Melaka. In addition, this research had been carried out in Melaka because Melaka is one of the Green Technology state and most or the residences are aware of the benefits or advantages of using environmental friendly products. On another hand, only 1% respondents from Kelantan and other state which represent the lowest percentage. Second highest percentage was followed by Johor which is 17% (17 respondents) because it is besides of Melaka and sometimes, many people from Johor come and shopping or purchase goods in Melaka. Next, followed by
15% of respondents from Wilayah Persekutuan, 6% of respondents from Perak and Selangor,
5% of respondents from Pulau Pinang and Negeri Sembilan and lastly 2% respondents are from Pahang and Terengganu.
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4.2.5
Analysis of Respondent based on District in Melaka
District in Melaka
Frequency
Percentage (%)
Melaka Tengah
31
31.0
Alor Gajah
6
6.0
Jasin
3
3.0
Total
40
40.0
Table 4.2.5: District in Melaka
6%
3%
Melaka
Tengah
Alor Gajah
31%
Jasin
Figure 4.2.5: District in Melaka
Based on Table 4.2.4, there have 40 respondents are from Melaka. So, Table 4.2.5 explaining which district the respondents from Melaka they are. While Figure 4.2.5 shows the percentage of respondents from Melaka that comes from Melaka Tengah district, Alor Gajah district and Jasin district. Most of them come from Melaka Tengah district because many shopping complex located at the area and represent 31% which is 31 respondents. Alor Gajah and Jasin have 6% (6 respondents) and 3% (3 respondents) respectively.
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4.2.6
Analysis of Respondent based on Number of Consumers Purchased or use
Environmental Friendly Products
Number of consumers purchased
Frequency
or use environmental friendly
Percentage
(%)
products
Yes
87
87.0
No
13
13.0
Total
100
100.0
Table 4.2.6: Number of Consumers Purchased or use Environmental
Friendly Products
13%
Yes
No
87%
Figure 4.2.6: Number of Consumers Purchased or use Environmental Friendly
Products
Figure 4.2.6 shows that the number of consumers purchased or use environmental friendly products. 87% of consumers have purchased or use environmental friendly products that represent 87 respondents. While only 13% which is 13 respondents have not purchased or use environmental friendly products.
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Summary of the Result Frequency Analysis
Items
Frequency
Percentage (%)
Male
48
48.0
Female
52
52.0
Malay
60
62.0
Chinese
22
22.0
Indian
8
8.0
Others
10
10.0
Islam
67
67.0
Non-Islam
33
33.0
Pulau Pinang
5
5.0
Perak
6
6.0
Selangor
6
6.0
Negeri Sembilan
5
5.0
Melaka
40
40.0
Johor
17
17.0
Pahang
2
2.0
Terengganu
2
2.0
Kelantan
1
1.0
Wilayah Persekutuan
15
15.0
Others
1
1.0
Melaka Tengah
31
31.0
Alor Gajah
6
6.0
Jasin
3
3.0
A1:Gender
A2: Race
A3: Religion
A4 : State of origin
A5 : District in Melaka
35
A6 : Number of Consumers Purchased or use Environmental Friendly Products
Yes
87
87.0
No
13
13.0
TOTAL
100
100.0
Table 4.2.7: Summary of the Result Frequency Analysis
4.3
Reliability Analysis
Reliability refers to the consistency of measurement, that is, how consistent test scores or other assessments results are from one measurement to another. Reliability of measurement is needed to obtain valid results, but there can be reliability without validity.
The data of this research is valid and reliable as this study had followed the standard guidelines in conducting the research.
Reliability refers to the extent to which a scale produces consistent results, if the measurements are repeated a number of times. The analysis on reliability is called reliability analysis. Reliability analysis is determined by obtaining the proportion of systematic variation in a scale, which can be done by determining the association between the scores obtained from different administrations of the scale. Thus, if the association in reliability analysis is high, the scale yields consistent results and is therefore reliable.
Reliability could be defined as the extent to which measures are free from random error. Reliability is testing for consistency and stability whereby, consistency indicates how the items measuring a concept hang well together as a set. Cronbach Alpha is a measure of
36
internal consistency which is closely related a set of item are as group in which the reliability coefficient indicate how well the item in a set positively correlated to one another. According to Hair et. al (2003), the measurements of this reliability shows in Table 4.3.1: Cronbach
Alpha Range is as follow:
Cronbach Alpha Coefficient Range
Strength of Association
Less than 0.60
Poor
0.60 to < 0.70
Moderate
0.70 to < 0.80
Good
0.80 to < 0.90
Very Good
0.90 and above
Excellent
Table 4.3.1: Cronbach Alpha Range
Source: Hair et. al (2003), Essential of Business Research Methods
Reliability Statistic
Cronbach Alpha
N of items
Interpretation
Perceived Cost (PC)
.665
6
Moderate
Perceived Quality (PQ)
.780
5
Good
Environmental Attitude (EA)
.647
5
Moderate
Social Influence (SI)
.871
6
Very Good
Trust (TR)
.812
5
Very Good
Health Awareness (HA)
.868
8
Very Good
Intention to Use Environmental
.865
6
Very Good
Friendly Products (IUEFP)
Table 4.3.2: Result of Reliability Statistic
37
The Table 4.3.2 above shows that the result of reliability statistic to all dependent variables and independent variables. The Cronbach’s Alpha for the Perceived Cost (PC) is
.665. It is within the rank of 0.60 – 0.69 which means that the data obtained from study is considered as moderate. The Cronbach’s Alpha value which above 0.5 and all 6 questions for these dependent variables are acceptable.
Secondly, the Cronbach’s Alpha for the Perceived Quality (PQ) is .780. It is within the rank of 0.70 – 0.79 which means that the data obtained from study is considered as good.
The Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
Thirdly, the Cronbach’s Alpha for the Environmental Attitude (EA) is .647. It is within the rank of 0.60 – 0.69 which means that the data obtained from study is considered as moderate. The Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
Next, the Cronbach’s Alpha for the Social Influence (SI) is .871. It is within the rank of 0.80 – 0.89 which means that the data obtained from study is considered as very good.
The Cronbach’s Alpha value which above 0.5 and all 6 questions for these dependent variables are acceptable.
Then, the Cronbach’s Alpha for the Trust (TR) is .812. It is within the rank of 0.80 –
0.89 which means that the data obtained from study is considered as very good. The
Cronbach’s Alpha value which above 0.5 and all 5 questions for these dependent variables are acceptable.
For the last independent variable, the Cronbach’s Alpha for the Health Awareness
(HA) is .868. It is within the rank of 0.80 – 0.89 which means that the data obtained from
38
study is considered as very good. The Cronbach’s Alpha value which above 0.5 and all 8 questions for these dependent variables are acceptable.
The Cronbach’s Alpha for dependent variable which is Intention to Use
Environmental Friendly Products (IUEFP) is .865. It is within the rank of 0.80 – 0.89 which means that the data obtained from study is considered as very good. The Cronbach’s Alpha value which above 0.5 and all 6 questions are acceptable.
4.4
Descriptive Analysis
Descriptive statistic is statistic such as frequencies, the mean, and the standard
deviation, which provide descriptive information about a set of data. Descriptive statistics describe the main features of a collection of data quantitatively. Descriptive statistics are distinguished from inferential statistics or inductive statistics, in that descriptive statistics aim to summarize a data set, rather than use the data to learn about the population that the data are thought to represent. This generally means that descriptive statistics, unlike inferential statistics, are not developed on the basis of probability theory
Even when a data analysis draws its main conclusions using inferential statistics, descriptive statistics are generally also presented. For example in a paper reporting on a study involving human subjects, there typically appears a table giving the overall sample size, sample sizes in important subgroups. Examples are for each treatment or exposure group, and demographic or clinical characteristics such as the average age, the proportion of subjects of each sex, and the proportion of subjects with related co morbidities.
39
This section presents the descriptive analysis results of each item under consumers’ intention to use environmental friendly products. It aims to answer the research objective number 1, which to see the level of intention to use environmental friendly products.
Items
Mean
Low
Moderate
High
1.00 – 2.33
2.34 – 3.67
3.68 – 5.00
Perceived Cost (PC)
3.6450
Perceived Quality (PQ)
3.8080
Environmental Attitude (EA)
3.6060
Social Influence (SI)
3.2567
Trust (TR)
3.804
Health Awareness (HA)
4.1025
Intention to use environmental friendly products (IUEFP)
4.1400
Table 4.4.1: Descriptive Analysis Result
Table 4.4.1 shows the descriptive analysis result. The first independent variable is perceived cost has mean of 3.6450 within the rank of 2.34 – 3.67 and is considered moderate. It is explained that most of the respondent answered between neutral (3) and agree
(4) for them to use environmental friendly that is cheap.
Secondly, perceived quality has mean of 3.8080 within the rank of 3.68 – 5.00 is considered as high. It is explained that most of the respondent answered between neutral (3) and agree (4) for the question they would use environmental friendly products that have higher quality than conventional products.
40
Third, environmental attitude has mean of 3.6060 and also considered as moderate within the rank of 2.34 – 3.67. It is explained that most of the respondent answered between neutral (3) and agree (4) for them to practice environmental conservation task.
Next, social influence has mean of 3.2567 that considered as moderate within the rank of 2.34 – 3.67. It is explained that most of the respondent answered between neutral (3) and agree (4) to learn about environmental issues from their friends.
Trust has mean of 3.804 within the rank 3.68 – 5.00 and considered as high. It is explained that most of the respondent answered between neutral (3) and agree (4) for them to feel that environmental friendly products are generally reliable.
For the health awareness, the mean is 4.1025 within the rank 3.68 – 5.00 and considered as high. It is explained that most of the respondent answered between agree (4) and strongly agree (5) for them to know well how to live healthy.
Lastly, for dependant variable, the mean is 4.14 within the rank of 3.68- 5.00 is considered as high. It is explained that most of the respondents answered between agree (4) and strongly agree (5). It means that they agreed in term of intention to use environmental friendly products.
41
4.5
Pearson Correlation Analysis
Correlation is a technique for investigating the connection between two quantitative,
continuous variables. For example, age and blood pressure. Pearson 's correlation coefficient
(r) is determined of the strength of the association between the two variables. The nearer (r) is to one, the stronger the relationship between the two variables. But, the nearer the (r) is to zero, the weaker the relationship between the two variables. The Pearson correlation only determined the relationship. The correlation could be the perfect positive correlation when the value at +1 and the correlation could be negative correlation when the values as at -0.1.
Thus, the correlation could range between -1.0 and +1.0. There are also need to analyze the significant of the variables as the significant p=0.01, it indicates that 99% of the time researcher would expect this correlation exist and 1% or less it not being true. The relationship will determined using the correlation coefficient size established by Elifson,
Runyon and Haber (1998). The correlation coefficient size is shown in table 4.5.1 below.
.
Size of Correlation
Interpretation
± 0.01 to ± 0.30
Weak Relationship
± 0.31 to ±0.70
Moderate Relationship
± 0.71 to ± 0.99
Strong Relationship
± 1.00
Perfect relationship
0
No Relationship
Table 4.5.1: Correlation Coefficient Size
42
Perceived Cost (PC)
.358**
Significant of
Correlation
(2-tailed)
.000
Perceived Quality (PQ)
.296**
.003
Significant
Environmental Attitude
(EA)
.190
.050
Significant
Social Influence (SI)
-.025
.808
Not Significant
Trust (TR)
.466**
.000
Significant
Health Awareness (HA)
.518**
.000
Significant
Intention to use environmental friendly products (IUEFP)
1
-
Independent Variable
r-value
Significant / Not significant Significant
** Correlation is significant at the 0.01 level (2-tailed)
* Correlation is significant at the 0.05 level (2-tailed)
Table 4.5.2: Correlation Analysis
Table 4.5.2 shows the correlation analysis between independent variable and dependent variable. Correlation Pearson Analysis is conducted to answer the research objective number 2, where it aims to examine the relationship between the factors and the intention to use environmental friendly products.
Based on Table 4.5.1, the correlation results for the first independent variable showed the moderate relationship correlation with r-value for Perceived Cost (PC) is .358. There is significant positive correlation between perceived cost and intention to use environmental friendly products since the significant level is at .000.
43
While for the relationship between Perceived Quality (PQ) and intention to use environmental friendly products also has a weak relationship correlation with r-value of .296.
The significant level is .003 proven that there is significant positive correlation between perceived quality and intention to use environmental friendly products.
For the relationship between Environmental Attitude (EA) and intention to use environmental friendly products, it shows that there is a weak relationship correlation with rvalue .190. The significant level is .050 proven that there is significant positive correlation between environmental attitude and intention to use environmental friendly products.
Next, for Social Influence (SI), the r-value is -.025. There is no significant positive correlation between social influence and intention to use environmental friendly products since the significant level is at .808.
While for the relationship between Trust (TR) and intention to use environmental friendly products also has a moderate relationship correlation with r-value of .466. The significant level is .000 proven that there is significant positive correlation between trust and intention to use environmental friendly products.
Lastly, for the relationship between Health Awareness (HA) and intention to use environmental friendly products, it shows that there is moderate relationship correlation with r-value of .518. The significant level is .000 proven that there is significant positive correlation between health awareness and intention to use environmental friendly products
44
Therefore, between the six independent variables, the higher is tending to be more influence intention to use environmental friendly products. Perceived Cost (PC), Perceived
Quality (PQ), Environmental Attitude (EA), Trust (TR) and Health Awareness (HA) were at significant level less than 0.05 or at 0.05. Therefore, there is relationship between this five independent variables and dependent variable. Only Social Influence with r-value of -.025 at significant level of .808 is not significant because significant level is more than 0.05 and there is no relationship between social influence and intention to use environmental friendly products. 4.6
Regression Analysis
According to Sekaran (2009), regression analysis is used in a situation where one
independent variable is hypothesized to affect one dependent variable. It is part of chapter is about coefficient of determination (R²) where it will explain the percentage of variance in the dependant variable that is explained by the variation of independent variable. Table 4.6.1 shows the results of regression analysis that has been analyzed.
R
R Square
Adjusted R
Square
Std. Error of the Estimate
Perceived Cost (PC)
.358**
.128
.119
.50045
Perceived Quality (PQ)
.296**
.088
.078
.51191
Environmental Attitude
(EA)
.190
.036
.026
.52618
Social Influence (SI)
.025
.001
-.010
.53580
Trust (TR)
.466**
.217
.209
.47431
Health Awareness (HA)
.518**
.268
.261
.45846
Independent Variable
Table 4.6.1: Regression Analysis
45
Independent Variable
R Square
Ranking
Perceived Cost (PC)
0.128 x 100 = 12.8%
3
Perceived Quality (PQ)
0.088 x 100 = 8.8%
4
Environmental Attitude
(EA)
0.036 x 100 = 3.6%
5
0.001 x 100 = 1%
6
Trust (TR)
0.217 x 100 = 21.7%
2
Health Awareness (HA)
0.268 x 100 = 26.8%
1
Social Influence (SI)
Table 4.6.2: Summary of Regression Analysis
Table 4.6.1 present the Regression result of Perceived Cost (PC), Perceived Quality
(PQ), Environmental Attitude (EA), Social Influence (SI), Trust (TR) and Health Awareness
(HA). The Regression Analysis were conducted to answer the research objective number 3, where it aims to identify the most important factor that influence the intention to use environmental friendly products. Based on Table 4.6.2, R Square show that 12.8% of the variance in the intention to use environmental friendly products explained by Perceived Cost
(PC), 8.8% of the variance explained by Perceived Quality (PQ), 3.6% explained by
Environmental Attitude (EA), 1% explained by Social Influence (SI), 21.7% explained by
Trust (TR) and 26.8% explained by Health Awareness (HA). This means that based on independent variable said that Health Awareness (HA) is the most important factor that influences the intention to use environmental friendly products which is 26.8% highest from other independent variable.
46
4.7
Hypothesis Testing
H1: Perceived cost has a positive effect on the intention to use environmental friendly products. As shown in Table 4.4.1, Perceived Cost (PC) showed the coefficient value of .358.
The value shows that the correlation exist and at significant level less than 0.05. Therefore,
H1 is accepted for this study. Perceived cost has a positive effect on the intention to use environmental friendly products.
H2: Perceived quality has a positive effect on the intention to use environmental friendly products. As shown in Table 4.6.1, Perceived Quality (PQ) showed the coefficient value of
.296. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H2 is accepted for this study. Perceived quality has a positive effect on the intention to use environmental friendly products.
H3: Environmental attitude has a positive effect on the intention to use environmental friendly products.
As shown in Table 4.6.1, Environmental Attitude (EA) showed the coefficient value of .190. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H3 is accepted for this study. Environmental attitude has a positive effect on the intention to use environmental friendly products.
47
H4: Social influence has a positive effect on the intention to use environmental friendly products. As shown in table 4.6.1, Social Influence (SI) showed the coefficient value of - .025.
The value shows that the correlation does not exist and not significant because significant level more than 0.05. Therefore, H4 is rejected for this study. Social influence has a negative effect on the intention to use environmental friendly products.
H5: Trust has a positive effect on the intention to use environmental friendly products.
As shown in table 4.6.1, Trust (TR) showed the coefficient value of .466. The value shows that the correlation exist and at significant level less than 0.05. Therefore, H5 is accepted for this study. Trust has a positive effect on the intention to use environmental friendly products
H6: Health awareness has a positive effect on the intention to use environmental friendly products. As shown in Table 4.6.1, Health Awareness (HA) showed the coefficient value of
.518. The value shows that the correlation exist and at significant level less than 0.05.
Therefore, H6 is accepted for this study. Health awareness has a positive effect on the intention to use environmental friendly products.
48
4.8
Conclusion
These chapters present the result of analysis, which were carried out using both descriptive and inferential analysis. As stated above, there is positive correlation between perceived cost, perceived quality, environmental attitude, trust and health awareness towards intention to use environmental friendly products. However, only social influence has negative correlation toward intention to use environmental friendly products. The next chapter will discuss the findings of the study.
49
CHAPTER 5
DISCUSSION, CONCLUSION AND RECOMMENDATION
5.1
Introduction
This chapter illustrates and summarized the result and findings from the analysis from
the earlier chapters. The discussion will be based on the research objective as shown in
Chapter 1.
The result of the research was obtained through the analysis and data
interpretation of questionnaires.
5.2
The Discussion of Respondent 's Demographic Characteristics
There are 100 respondents that was chosen to be the sample in this study. Majority of
the respondents are female (52 respondents) and the remaining are male (48 respondents).
Majority of the them are from Melaka which is represented by 40% of the total respondents.
They come from three different districts which are Melaka Tengah with 31%, Alor Gajah with 6% and Jasin with 3%. Based on the questionnaire distributed, 87% of them have purchased or used environmental friendly products before, whereas the remaining 13% answered with a no.
5.3
To study the level of intention to use environmental friendly products.
The result in the Table 4.4.1 shows that the mean is at the high level as the mean is
4.14, within the rank of 3.68-5.00. This shows that levels of of intention to use environmental
50
friendly products are high. This answers the research objective number 1, which is to see the level of intention to use environmental friendly products. It is explained that most of the respondents answered between agree (4) and strongly agree (5). It means that they agreed in term of intention to use environmental friendly products.
Consumers are increasingly better informed and more aware of the environmental impact of products, and may demand businesses improve their environmental performances.
They may put pressure on businesses by boycotting or refusing to buy the products that are environmentally unfriendly. Furthermore, the emergence of green awareness makes people willing to spend extra money. (Yaacob & Zakaria, 2011)
5.4
The relationship between the factors and the intention to use environmental friendly products.
Table 4.5.2 shows the correlation analysis between independent variables and
dependent variable. Correlation Pearson Analysis is conducted to answer the research objective number 2, where it aims to examine the relationship between the factors and the intention to use environmental friendly products. Based on Table 4.5.2, the correlation results showed the coefficient value for Perceived Cost (PC) is .358 with significant (2-tailed) of
.000 shows that there is a relationship between Perceived Cost and Intention to Use
Environmental Friendly Products.
Green consumers are often willing to pay more for environmental friendly products and services. Furthermore, consumers have expressed a willingness to pay a premium to purchase environmentally friendly products. This suggests that consumers in general are a prime marketing target for products promising environmental benefits. (Barber,
Kuo, Bishop, & Goodman Jr., 2012)
51
The correlation results showed that there is a relationship between Perceived Quality
(PQ) and intention to use environmental friendly products with the coefficient value of .296.
Hughner et al. (2007) and Aguirre (2007) have identified in their studies that consumers perceived environmental friendly products to be higher quality, which referred to healthier, than the conventional product and; thus, motivated the consumers to use environmental friendly products. Furthermore, Naspetti and Zanoli (2009) mentioned that consumers preferred high quality products to low quality products. As such, they concluded that quality dimensions, such as economical, high durability, taste, health, appearance, convenience and process, are among the most important aspects in any environmental friendly products purchase. Next, the correlation results showed that there is a relationship between
Environmental Attitude (EA) and intention to use environmental friendly products with the coefficient value of is .190. The increasing consumers demands especially their pressure on protection of the environment, businesses have moved beyond simply addressing environmental regulatory issues and are introducing initiatives such as new products that are classified as green. Some business have developed packaging that is environmentally friendly or supporting cause-related promotions. (D 'Souza, Taghian, &
Khosla, 2007)
However, the correlation results showed that there is no relationship between Social
Influence (SI) and intention to use environmental friendly products with coefficient of -.025, significant (2-tailed) of 0.808. Jacquelyn A. Ottman (2008) wrote in Marketing Daily that
“the power of green lies in marketers’ hand”. It was not engineers, lawyers or legislators that had the most power to clean up the environment, instead the creative people are the one who have the power to design and promote cleaner products and technologies and help consumers
52
evolve to more sustainable lifestyles. Rex and Baumann (2007) found that green marketing could learn a lot of things from conventional marketing in discovering other means than labelling to promote green products like segmenting a wider range of consumers, working with the positioning strategies of price, place and promotion and actively engaging in market creation. A survey of the consumers who had experienced purchasing green or environmental products in Taiwan is carried out by Chang and Fong (2010) and found that green product quality and green corporate image could bring green customer satisfaction and green customer loyalty. Therefore, social influence seems not affecting much on the intention to use environmental friendly products.
The correlation results showed that Trust (TR) and Health Awareness (HA) have a relationship with intention to use environmental friendly products with coefficient of .466 and .518 respectively. A study by MR Shaharudin (2010) discovered that Malaysian consumers placed relatively high level of importance on health consciousness and perceived value in their intention to purchase organic food product. Chen (2010) on the other hand defines “green trust” as “a willingness to depend on one object based on the belief or expectation resulting from its credibility, benevolence, and ability about environmental performance”. Past research confirms that there is a positive relationship between green purchase intentions perceived value and customer trust, since high level of perceived value can increase post-purchase confidence of the product. (Chen & Chang, 2012)
5.5
The most important factor to influence the intention to use environmental friendly products.
Based on the findings, we can determine which of the 6 factors contribute or influence
the most in the intention to buy green products. This is determined by using regression
53
analysis. As shown in Table 4.6.2, Health Awareness resulted in the highest rank with 26.8%.
It is then followed by trust with 21.7%, perceived cost with 12.8% at the third rank and perceived quality with 8.8% on the fourth rank. Meanwhile in fifth and sixth rank are environmental attitude and social influence with 3.6% and 1% respectively. Based on this result, we can conclude that health awareness is the factor that influence the most towards the intention to use environmental friendly products.
5.6
Conclusion
This study was successful in completing three objectives mentioned in the earlier
chapter where the first objective is to study the level of intention to use environmental friendly products. Second objective is to examine the relationship between the factors and the intention to use environmental friendly products and the third objective is to identify the most important factor that influences the intention to use environmental friendly products. In order to complete the objectives, review on the concepts of previous studies on factors that affect the intention to use environmental friendly product is conducted. This research uses questionnaire to collect data from the people around Melaka. The data obtained were analyzed using Descriptive Statistics, Pearson Correlation and Regression analysis. The research then continues by exploring the findings of the study and further discussion on the findings. From this research, it is proven that perceived cost, perceived quality, environmental attitude, trust and health awareness have relationship with intention to buy environmental friendly products while social influence does not have relationship with intention to buy environmental friendly products.
In conclusion, this study helps in viewing the intention of the people towards environmental friendly products in Malaysia and also to identify the factor that influence the
54
most on the intention to use environmental friendly products. It is important to explore and to identify the most influenced factor in order to prove that the factor is relevant and can be used in further research in the future.
5.7
Recommendations
The awareness on the benefits of buying and using environmental friendly products
are there in Malaysian community, but the driving factors that influence the most the intention to buy and use it still varies. Many empirical research, study, and conceptual papers has been done to study this situation but it will be a waste if the factors and findings are not used to improve on the situation as well as promoting to a greener Earth. This study has proven that there is a relationship between intention to use environmental friendly products and perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness. Based on the discussion earlier, some recommendations are proposed.
5.7.1
For the community
The result shows that there are positive relationships between perceived cost, perceived quality, environmental attitude, social influence, trust and health awareness towards intention to use environmental friendly products. It is advisable for the people in the community to expose themselves and increase awareness to use environmental friendly products. Prevention is better than cure. Thus, to create a better living community and a greener Earth, it is best to start with the smallest community, which is family.
Based on the findings, the researchers have found that cost of environmental friendly products are more expensive than the conventional products in the market. However, consumers have to always bear in mind that to enjoy an extra benefit of something has its
55
cost. Environmental friendly products offer higher quality in terms of the product itself, its ingredients, process of making it and the nutrients and benefits it gives to the consumers.
Therefore, consumers in the community should have a mindset of spending a little bit more as an investment for the good of today and the future.
Other than that, social influence would play a big role in driving the intention to buy environmental friendly products. As we are living in the era of technology and social media as the easiest reachable source of information, social influence is a good way to inculcate and triggers the intention to use environmental friendly products.
5.7.2 For organisations or marketers
Based on the findings, it seems that health awareness and trust are among the highest factors that influence the intention to use environmental friendly products. Thus, organizations and marketers should focus on creating advertisements and commercials that are more informative and create awareness on the importance of using environmental friendly products for their own good as well as for the environment. Organizations and marketers should be more proactive in getting consumers trust like signing memorandum of understanding (MoU) with the Ministry of Health Malaysia, for example.
5.7.3 Future Research
It would be more appropriate if this study is to conduct based on longitudinal method in which data will be collected at least at two different points of time. With longitudinal studies, the intention to use environmental friendly products can be traced at the different point of time to investigate whether intention has been translated into behaviour.
56
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60
APPENDICES
Serial No. _____________
APPENDIX A
FACTORS INFLUENCING THE CONSUMERS’
INTENTION TO USE ENVIRONMENTAL
FRIENDLY PRODUCTS
QUESTIONNAIRE
This study is to identify the factors influencing the intention to use Environmental Friendly
Products. This questionnaire takes approximately 10 minutes to be completed. Your participation in this study is very much appreciated. All information given will be treated with high confidentiality and will be used solely for this study only. Thank you.
Researchers:
Nor Baeyah binti Jahaya
Nurhidayah ‘Aliaa binti Che Zulhaimee
This questionnaire consists of 3 sections on 5 printed pages
Section A: Background Information
This section aims to collect the background information of respondents. Please TICK (/) in the appropriate box.
1.
2.
3.
4.
What is your gender?
Male
Female
1
2
What is your race?
Malay
Chinese
Indian
Others
1
2
3
4
What is your religion?
Islam
Non-Islam
1
2
What is your state of origin?
Perlis
Kedah
Pulau Pinang
Perak
Selangor
Negeri Sembilan
Melaka
Johor
Pahang
Terengganu
Kelantan
Sabah
Sarawak
Wilayah Persekutuan
Others
1
2
3
4
5
6
7
8
9
0
1
2
3
1
15
5.
6.
If your state of origin is Melaka, which district you are from?
Melaka Tengah
Alor Gajah
Jasin
1
2
3
Have you purchased or use any environmental friendly products before? Yes
No
1
2
Section B: Factors Influencing the Intention to use environmental friendly products
This section aims to identify the factors that influence your intention to use environmental friendly products. Please TICK (/) in the box according to the scale as below:
Scale
1
2
3
4
5
Description
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
No. Perceived Cost (PC)
1. To me, it is important that the environmental friendly product I use is cheap.
2. I always compare the environmental friendly product prices in a shop.
3. I always pay attention to price reductions when I buy an environmental friendly product.
4. Environmental friendly product is very expensive.
5.
6.
2
3
4
5
1
2
3
4
5
I am willing to pay more to use environmental friendly product. Despite being more expensive, I prefer to use environmental friendly product.
No. Perceived Quality (PQ)
1. I would use environmental friendly product because it has higher quality than conventional product.
2. Environmental friendly product has superior quality.
3.
Environmental friendly product is a natural product.
4.
Environmental friendly product is safer than conventional product.
Environmental friendly product has more nutritional value than conventional product.
5.
1
No.
1.
2.
Environmental Attitude (EA)
The current economic development method is destroying the environment.
I prefer using recycled products.
1
2
3
4
5
3.
I dispose of my garbage in different container.
4.
Unless we do something, environmental damage will be irreversible.
I practice environmental conservation task.
1
2
3
4
5
No. Trust (TR)
1. I feel that environmental friendly products’ are generally reliable.
2. I feel that environmental friendly products’ performance is generally dependable.
3. I feel that environmental friendly products’ environmental argument is generally trustworthy.
4. Environmental friendly products’ concern meets my expectations. 5. Environmental friendly products’ promises for environmental protection.
1
2
3
4
5
No. Health Awareness (HA)
1. I have the impression that I sacrifice a lot for my health. 2. I am prepared to live as healthy as possible.
1
2
3
4
5
5.
No. Social Influence (SI)
1. I learn about environmental friendly products from my friends.
2. I learn about environmental issues from my friends.
3.
4.
I discuss with my friends about environmental friendly products.
I discuss with my friends about environmental issues.
5.
I buy environmental friendly products with my friends.
6.
I share information regarding environmental friendly products with my friends.
3.
I think that I take health into account a lot in my life.
4.
I think it is important to know well how to live healthy.
5.
6.
7.
8.
My health is so valuable to me that I am prepared to sacrifice many things for it.
I have the impression that I pay more attention to my health than others.
I continually ask myself whether something is good for me.
I ask myself all the time whether the things I use daily are good for me.
Section C: Intention to Use Environmental Friendly Products
This section aims to identify your intention to use Environmental Friendly Products. Please TICK
(/) in the box according to the scale as below:
Scale
1
2
3
4
5
Description
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
No. Intention to Use Environmental Friendly Products
(IUEFP)
1. I would use environmental friendly products if it uses less energy.
2. I would use environmental friendly products if I know that the producing it is environmental friendly.
3. I would use environmental friendly products if it is more nutritious.
4. I would use environmental friendly products if it is safer to use.
5. I would use environmental friendly products if I can trust it is really environmental friendly.
6. I would use environmental friendly products if I can get them more conveniently.
THANK YOU
1
2
3
4
5
APPENDIX B
Frequencies
GENDER
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Male
48
48.0
48.0
48.0
Female
52
52.0
52.0
100.0
100
100.0
100.0
Total
RACE
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Malay
60
60.0
60.0
60.0
Cinese
22
22.0
22.0
82.0
Indian
8
8.0
8.0
90.0
Others
10
10.0
10.0
100.0
100
100.0
100.0
Total
RELIGION
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Islam
67
67.0
67.0
67.0
Non-Islam
33
33.0
33.0
100.0
100
100.0
100.0
Total
STATE OF ORIGIN
Frequency
Percent
Valid Percent
Cumulative
Percent
Pulau Pinang
5
5.0
5.0
5.0
Perak
6
6.0
6.0
11.0
Selangor
6
6.0
6.0
17.0
Negeri Sembilan
5
5.0
5.0
22.0
Melaka
40
40.0
40.0
62.0
Johor
17
17.0
17.0
79.0
Pahang
2
2.0
2.0
81.0
Terengganu
2
2.0
2.0
83.0
Kelantan
1
1.0
1.0
84.0
15
15.0
15.0
99.0
1
1.0
1.0
100.0
100
100.0
100.0
Valid
Wilayah Persekutuan
Others
Total
DISTRICT IN MELAKA
Frequency
Percent
Valid Percent
Cumulative
Percent
Melaka Tengah
31
31.0
77.5
77.5
Alor Gajah
6
6.0
15.0
92.5
Jasin
3
3.0
7.5
100.0
Total
40
40.0
100.0
System
60
60.0
100
100.0
Valid
Missing
Total
NUMBER OF CONSUMERS PURCHASED OR USE ENVIRONMENTAL
FRIENDLY PRODUCTS
Frequency
Percent
Valid Percent
Cumulative
Percent
Valid
Yes
87
87.0
87.0
87.0
No
13
13.0
13.0
100.0
100
100.0
100.0
Total
Reliability
Scale: Independent Variable 1
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.665
6
Scale: Independent Variable 2
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.780
5
Scale: Independent Variable 3
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.647
5
Scale: Independent Variable 4
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.871
6
Scale: Independent Variable 5
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.812
5
Scale: Independent Variable 6
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.868
8
Scale: Dependant Variable
Case Processing Summary
N
Valid
Cases
%
100
100.0
0
.0
100
100.0
a
Excluded
Total
a. Listwise deletion based on all variables in the procedure. Reliability Statistics
Cronbach 's
N of Items
Alpha
.865
6
Descriptives
Descriptive Statistics
N
Minimum
Maximum
Mean
Std. Deviation
meanpc
100
2.17
5.00
3.6450
.56291
meanpq
100
2.40
5.00
3.8080
.55988
meanea
100
2.00
6.00
3.6060
.59252
meansi
100
1.00
5.00
3.2567
.71438
meantr
100
1.60
5.00
3.8040
.53332
meanha
100
2.88
5.00
4.1025
.53341
meaniuefp
100
2.67
5.00
4.1400
.53325
Valid N (listwise)
100
Correlations
Correlations
meanpc
Pearson Correlation meanpc Pearson Correlation
**
.329
**
meanha
.401
**
meaniuefp
.279
**
.358
**
.001
.000
.005
.000
100
100
100
100
100
100
1
**
.010
**
**
.001
.922
.000
.001
.003
100
100
100
100
100
1
**
**
*
.190
100
**
.321
Sig. (2-tailed)
.001
.001
N
100
.321
.304
.484
.451
.338
.243
.296
**
.002
.000
.015
.058
100
100
100
100
100
100
**
.010
**
1
.133
.180
-.025
Sig. (2-tailed)
.001
.922
.002
.186
.072
.808
N
100
100
100
100
100
100
**
**
**
.133
1
**
.329
.401
.484
.304
.451
100
Sig. (2-tailed)
.000
.000
.000
.186
N
100
100
100
100
**
**
*
.180
.279
.338
.243
.446
.466
**
.000
.000
100
100
100
**
1
.446
.518
**
Sig. (2-tailed)
.005
.001
.015
.072
.000
N
100
100
100
100
100
100
100
**
**
.190
-.025
**
**
1
Pearson Correlation meaniuefp .337
meantr
.001
**
.337
meansi
.002
100
Pearson Correlation meanha **
N
Pearson Correlation meantr .310
**
.310
.002
Pearson Correlation meansi 100
meanea
Sig. (2-tailed)
Pearson Correlation meanea 1
Sig. (2-tailed)
N
meanpq
meanpq
.358
.296
.466
.000
.518
Sig. (2-tailed)
.000
.003
.058
.808
.000
.000
N
100
100
100
100
100
100
100
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
Regression
Independent variable 1
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanpc
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.358
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.128
.119
.50045
a. Predictors: (Constant), meanpc
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
3.607
1
3.607
Residual
24.544
98
.250
Total
28.151
99
F
Sig.
14.400
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanpc
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.904
.330
.339
.089
Beta
8.813
.000
3.795
.000
1 meanpc a. Dependent Variable: meaniuefp
.358
Independent variable 2
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanpq
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.296
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.088
.078
.51191
a. Predictors: (Constant), meanpq
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
2.470
1
2.470
Residual
25.681
98
.262
Total
28.151
99
F
Sig.
9.424
.003
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanpq
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
3.066
.354
.282
.092
Beta
8.669
.000
3.070
.003
1 meanpq a. Dependent Variable: meaniuefp
.296
Independent variable 3
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanea
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.190
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.036
.026
.52618
a. Predictors: (Constant), meanea
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
1.018
1
1.018
Residual
27.133
98
.277
Total
28.151
99
F
Sig.
3.678
.058
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanea
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
3.523
.326
.171
.089
Beta
10.802
.000
1.918
.058
1 meanea a. Dependent Variable: meaniuefp
.190
Independent variable 4
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meansi
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.025
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.001
-.010
.53580
a. Predictors: (Constant), meansi
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
.017
1
.017
Residual
28.134
98
.287
Total
28.151
99
F
Sig.
.059
.808
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meansi
Coefficients
Model
a
Unstandardized Coefficients
Standardized
t
Sig.
Coefficients
B
Std. Error
(Constant)
4.200
.251
meansi
-.018
.075
Beta
16.714
.000
-.243
.808
1
a. Dependent Variable: meaniuefp
-.025
Independent variable 5
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meantr
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.466
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.217
.209
.47431
a. Predictors: (Constant), meantr
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
6.104
1
6.104
Residual
22.047
98
.225
Total
28.151
99
F
Sig.
27.135
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meantr
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.369
.343
.466
.089
Beta
6.900
.000
5.209
.000
1 meantr a. Dependent Variable: meaniuefp
.466
Independent variable 6
Variables Entered/Removed
Model
1
Variables
Variables
Entered
Removed
meanha
a
Method
b
. Enter
a. Dependent Variable: meaniuefp
b. All requested variables entered.
Model Summary
Model
R
1
.518
R Square
a
Adjusted R
Std. Error of the
Square
Estimate
.268
.261
.45846
a. Predictors: (Constant), meanha
a
ANOVA
Model
Sum of Squares
Regression
1
df
Mean Square
7.553
1
7.553
Residual
20.598
98
.210
Total
28.151
99
F
Sig.
35.933
.000
t
Sig.
b
a. Dependent Variable: meaniuefp
b. Predictors: (Constant), meanha
Coefficients
Model
a
Unstandardized Coefficients
Standardized
Coefficients
B
(Constant)
Std. Error
2.016
.357
.518
.086
Beta
5.641
.000
5.994
.000
1 meanha a. Dependent Variable: meaniuefp
.518
References: Tsakiridou et al. (2008) 5 Ahmad and Juhdi (2010) Environmental Attitude 5 Chen (2009) Lee (2008) Trust 5 Chen (2010) Chen (2009) 6 Ahmad and Juhdi (2010) Section C
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AMB 201 Marketing and Audience Research Marketing Research Report on environmentally friendly purchase behaviour Word Count: 3000 Words (including tables, figures, references and appendix) TABLE OF CONTENT Executive Summary 1 1. Introduction and Background 2 1.1 Importance of the research 2 1.2 Scope 2 1.3 Research problem 2 1.4 Aims and Objectives 3 2. Methodology 4 2.1 Methodological considerations and assumptions 4 2.2 Sample considerations 4 2.3 Data collection and framework, and analytical considerations 4 3. Ethical Considerations 5 4. Analysis 6 4.1 Descriptive Statistics 6 4.1.1 Gender 6 4.1.2 Age 7 4.1.3 Qualification 9 4.2 Regression Analysis 10 4.2.1 Regression of personal values on…
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In an effort to finish the state and misery of the nice Depression, Roosevelt's New Deal created several new federal programs and swollen several existing ones. the increase of the us because the world's major military power throughout and once war II additionally fueled government growth. the expansion of urban and residential area areas within the postwar amount created swollen public services additional…
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Customer satisfaction: if sustainable products and sustainable services do not satisfy customer needs, they will not survive in the market in the long run. 2. Dual focus: unlike purely environmental products, sustainable products have a dual focus on ecological and social aspects. 3. Life-cycle orientation: sustainable products have to consider the whole life cycle from cradle to grave: extraction of raw materials, transportation, manufacturing, distribution, use and post-use. Belz. Sustainability Marketing (1st ed). John Wiley & Sons, (UK). Retrieved from…
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In the chapter by Wells, et al, the relevance of consumer behaviour in marketing is discussed and broken down into the “four A’s” of sustainable consumer behaviour, Awareness, Acceptance, Ability and Action. This addresses a method that can be used to encourage consumers to support and engage in sustainable behaviours (Moscardo et al. 2010, p. 277).…
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Yaacob, M. R., & Zakaria, A. (2011). Customers ' awareness, perception and future prospects of green products in pahang, malaysia. The Journal of Commerce, 3(2), 1-1. Retrieved from http://search.proquest.com/docview/898704946?accountid=35796…
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This paper will discuss the five environmental factors that influence global and domestic marketing decisions that organizations must make. These five environmental factors are technology, demographics, government, culture and economics. Companies are affected differently by these factors depending on the industry they are in and the size of the organization. I will be using the Washington Plaza Hotel to illustrate how these environmental factors affect the hotel industry 's marketing decisions. The Washington Plaza Hotel is a hospitality business located in Washington, DC. They offer services such as lodging, restaurant, bar, catering and meeting space rental. The Washington Plaza Hotel 's major customer base is government, tourist, non-profit organizations, local businesses and some corporate clientele. Let 's now take a look at how these environmental factors affect the marketing of the hotel.…
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Speech therapy helps with communication skills and teaches sign language if needed. Communication boards and pictures are used frequently when teaching these skills. One of the main features of autism is the lack of understanding of social cues (Autism Society of America). Individuals with autism are taught how to communicate in different social settings or learn how to respond to certain facial expressions and emotions. Therapist work closely with the child to ensure proper communication in social settings is met.…
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Consumer purchasing decisions are based on many factors. There are psychological and social factors that play huge roles in a consumer picking certain products or services to purchase for their personal use. There are also many external factors that play a role such as political, legal, ecological, cultural, technological, and business ethics. Most of these factors are considered by an individual when purchasing and birth control a product that a lot of these various influences will affect a consumer’s decision whether or not to use it.…
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JCP is a fully state-owned private company incorporated in Singapore in 2002. Today, it has a staffing strength of 600. Its core business is in the consultancy of large-scale industrial master planning, building architecture and engineering design. Headquartered in Singapore, its major markets are in Southeast Asia, China, India and the Middle East. Contracts from government and private developers form the bulk (79%) of its global consultancy revenues (Tang, 2011)…
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* Program planners in the Asia-Pacific region have found that they are more effective at imparting literacy skills if it was combined with the teaching of relevant life skills.…
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Over the last one hundred years the humankind was taking more than it was giving back to the Planet Earth. There is now a vast movement, including scientists, ecologists, economists and, most importantly, CEOs of multinational companies, that is inclined to change the face of the industrial business. For many years now there has been vast criticism in things that seem parts of the everyday routine, just for example: gas-fuelled cars, or water of drinking quality used for plumbing purposes. There are signs that even toxic waste, as a by-product of industry, can be eliminated. And despite it is usually thought to be of additional expenses to the actual business, this work will provide examples that are pro-investment, profitable and make calculable sense. The economy lately shifts from an emphasis on human productivity to a radical increase in resource productivity. We are drown to the conclusion that the resources are thinning, but we don 't have to just produce even more using the same standards: instead, there is a way to produce the same amount, but producing less waste and using much less resources in process.…
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the needs of people while also preventing the devastation of our basic lifesupport sy stems ?"…
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The history of management is primordial as the history of civilization. Management means the process of designing and maintaining an environment in which individual working together in groups efficiently accomplish selected aims. In every organization, there is a manager who works to manage the human and material resources in order to obtain the organizational and individual objectives successfully. In an organization, the employees work as a group and manager provides them guidance to perform their jobs precisely. Then a manager performs the role of a leader and as a leader he wants to implement different strategies to inspire his employees. When a manager is a leader then he thinks about some factors such as the size of the organization, employee’s perception, his (managers) experience etc. Scholars and researchers have worked on different leadership theories and they have developed five models- autocratic, custodial, supportive, collegial, and system which a manger can apply to lead his employees. Each model is distinct from others because of its features and different outcomes. Among this five models, supportive model can be treated as a best model for a manager to govern his employees in an effective and efficient manner. This model is an output of a research that shows why managers showed prefer the supportive model.…
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