Consumer Buying Behavior and Attitudes Towards Eco-friendly Fast
Moving Consumer Goods Cosmetics & Personal Care Products
2015 Cambridge Business & Economics ConferenceISBN :
9780974211428
CONSUMER BUYING BEHAVIOR AND ATTITUDES TOWARDS ECO-FRIENDLY FAST
MOVING CONSUMER GOODS COSMETICS & PERSONAL CARE PRODUCTS
Pradeep Randiwela[footnoteRef:2] [2: Winner of Best Professor in
Marketing, awarded by Asia's Best B-School' at Singapore CMO Asia
2010, former Dean/Faculty of Management and Finance, University of
Colombo.]
Faculty of Management and Finance,
University of Colombo
Sri Lanka
[email protected]
P.M.N.Mihirani
Institute of Human Resource Advancement
University of Colombo
Sri Lanka
[email protected]
CONSUMER BUYING BEHAVIOR & ATTITUDES TOWARDS ECO-FRIENDLY
FAST MOVING CONSUMER GOODS: COSMETICS & PERSONAL CARE
PRODUCTS
ABSTRACT:
Many manufacturing companies today, move towards green as the
consumers are concerned about the natural surroundings. Natural
environmental influence our day-today lives in many ways, yet only
few academics have discussed green issues in Sri Lankan context.
Hence, this paper is an attempt to investigate the consumers
purchasing behavior and attitudes towards eco-friendly fast moving
consumer goods (FMCG) with special reference to cosmetics
&personal care products. The research was conducted in the
Western Province of Sri Lanka employing a conceptual framework that
identified four major factors that affect consumer green purchasing
behavior such as; individual belief, environmental factors, socio
economic characteristics, awareness &knowledge. Data collected
from 153 respondents with the use of a questionnaires and this was
done by way of judgmental sampling. Both descriptive and
inferential statistical were used to analyze data. The Lifestyles
of Health and Sustainability (LOHAS) model was utilized to measure
the purchasing behavior. This study assessed the magnitude of LOHAS
categories exists in the Western Province for environment friendly
cosmetics and personal care products market along with an
examination of the factors affecting purchasing behavior.
The results reveal that the majority of the respondents were
environment unconcerned where as the miniature portion were in
reality the active environment stewards. Results of the regression
analysis reveal that among the variety of socio-economic factors
considered, only gender, marital status and income level were
significantly affecting the purchasing behavior.
Key words: Green Marketing , FMCG, LOHAS, Cosmetics &
Personal Care, Purchasing Behavior
INTRODUCTION
Communities all over the world are identifying the need of
environmental safety where the Green Marketing as a concept which
business organizations concerned to satisfy customer needs in an
environmentally friendly approach. As a result of alarming rates of
environmental lethal issues and emerging community pressure on
protecting the environment, a variety of business entities globally
have moved beyond simply adhering to environmental regulations.
Many internationally reputed enterprises continue innovations and
introducing environment friendly solutions as alternatives to
traditional products. Moreover, business processes allied to
product life cycles (i.e. from raw material acquisition to disposal
of waste after consumer usage) have been re-engineered in order to
reduce environment impacts.
Fast Moving Consumer Goods (FMCG) sector is a considerably large
sector in Sri Lankan economy which the stakeholders have to open
their eyes on eco-friendliness as it is one of growing industries
which has focused on green marketing strategies all over the world.
Since urban societies become more complex and prone to increasing
problems due to environmental pollution and unethical business
practices, there is a significant attention been drawn by both
consumers and business organizations on natural environment.
Consequently, some businesses have begun reform their behavior in
an attempt to address this societys new concerns.
Nonetheless, at present lack of utilizing biologically
degradable materials is a major observable issue in Sri Lanka which
has already leaded to accumulation of solid waste. As well,
materials such as polythene and plastics are still used as major
packing and hauling materials of many FMCG products. Though some
alternatives are in use, these may not be the best solutions for
the prevailing environmental issues. Moreover, Western Province,
Sri Lanka which consists of Colombo, Gampaha and Kalutara districts
has eventually become the most populated area both residentially
and industrially. Consequently, problems allied with natural
resources such as higher consumption levels of water, electricity,
fuel and wood by both firms and general public are becoming a major
issue with increasing population density in the above region. Thus
innovations are of a great need where consumer inputs are needed to
be incorporated. On the other hand, most of the marketing
practitioners globally are using green elements as powerful
marketing tools so that firms in Sri Lanka as well would have a
greater potential to improve.
RESEARCH PROBLEM AND OBJECTIVE
Although environmental issues affect most of the activities in
day-today lives, there were only few academic disciplines which
have discussed green issues in Sri Lankan context. Since green
marketing is an emerging field in Asian countries like Sri Lanka,
consumer behavior towards this societys new concern is still in the
understanding level. It has been proven by the findings of Jain and
Kaur, (2004)where the results demonstrated that the majority of the
consumers still lack green knowledge and due to such low awareness
on green products, many organizations are neither yet motivated in
pushing their businesses towards developing more green products nor
are working hard on green packaging. Further it is also mentioned
that a considerable number of consumers have an ideal concept of
being environmentally responsible but may not necessarily implement
this concept. Consequently, taking no efforts to move towards a
lifestyle which is green was identified as a major issue.
Unlike the organic food market, being one of the major segments
in FMCG sector, cosmetics and personal care products manufacturing
and marketing firms may find difficult to develop new strategies
since consumer behavior towards green products is still unknown. In
line with the literature, though Sri Lankan consumers interests for
green products are gradually rising, the availability and awareness
created by the marketers may be very less compared to the European
countries. This knowledge gap alone with lack of information
regarding consumer behavior which has contributed to lack of green
movement in Sri Lanka can be bridged by means of understanding
green consumers and their characteristics.
Therefore, overall, it is a major requirement to identify the
consumer viewpoints in terms of attitudes, perception,
environmental knowledge and socio economic factors in order
anticipate different consumer needs so that firms would use these
facts to modify their strategies accordingly through developing
novel approaches to meet those needs. As well, it is important to
identify doubts and misperceptions of consumers and thereby to
suggest key areas which knowledge and awareness must be conferred
in developing an appropriate green consumer mind set towards
sustainable development of the country.
The Main objective of the study is,
To examine whether the consumers are concerned about green
environment when they buy FMCG and Personal Care products
To understand consumers awareness about green products and
environmental knowledge
To evaluate consumer perception, attitude and purchasing
behavior towards existing eco-friendly cosmetics and personal care
products.
Green Marketing
The negative impacts on the environment due to companies and
human activities have directed companies to develop eco-friendly
products. The consumption of eco-friendly products and consumers
attitudes towards these products has led to the expansion of the
green marketing mix that preserves environmental resources and in
the meantime deliver value added products and services (Datta and
Ishaswini, 2011).
Green Marketing concept appeared at the end of the 1980sand it
has been defined by many researchers. According to the Ghosh (2010)
Green Marketing is defined as the marketing activities that
facilitate exchanges to satisfy consumer needs and wants by
minimizing the impact of these activities on the physical
environment.
Green Purchasing Behavior
Green Purchasing Behavior (GPB) is conceptualized as the
probability and willingness of a person to provide preference to
products having eco-friendly features over other traditional
products in their purchase considerations. According to Beckford et
al., (2010) and Chan (2001) research findings, green purchase
intention is a significant predictor of green purchase behavior,
which means that purchase intention is positively affecting the
probability of a customer decision that he/she will buy green
products.
Purchasing Behavior of Green Cosmetics & Personal Care
Products
These two products have not been considered together in previous
research papers, but current study attempt to search the behavior
intention of those two categories together, by identifying the
significant of those product categories in FMCG sector. Two studies
have examined green marketing strategies for eco friendly personal
care products and later on discussed the research papers of
cosmetic products. One focused on the product development of green
cosmetics and toiletries in the context of the United Kingdom
(Prothero&McDonagh, 1992), and the other focused on promotional
advertisements of U.S. companies offering natural personal care
products (i.e., Burts Bees, Toms of Maine, and The Body Shop)
(Todd, 2004). Both studies revealed that consumers ecological
awareness has had a major impact on the cosmetics industry and
suggested that personal care companies consider the protection of
ecology as their business philosophy to satisfy consumer needs.
Attitudes towards Green Purchase
It has been believed that the actions of individuals can be
predicted by their attitudes. Numbers of studies have been made
towards improving the ability to predict an individuals actions.
Mainieri et al. (1997) revealed that the consumers attitude is
associated with the knowledge and personal experience they possess.
However inconsistencies were observed among the relationship
between consumers attitude and their behavior when it comes to
green consumerism. Mainieri et al. (1997) found low correlation
between consumers attitude and green purchasing behavior. In order
to predict specific behaviors, the measurement criteria of
attitudes should be directed at a specific environmental issue like
purchasing of green products (Mainieri et al. 1997).
CONCEPTUALIZATION
By over viewing the investigations related to green behavior and
purchasing intentions, it is identified that researchers with
specific goals and perspectives have presented different models in
this regard. After reviewing many researches in green purchasing
and green intentions, the authors suggested following conceptual
framework which is a modification of Hessami, et al., 2013
conceptual framework. (Figure 1).
As it can be seen in the Figure1, there are four main indicators
that are influencing the consumer attitudes and green purchasing
intentions, namely, Individuals ecological beliefs, Environmental
factors, Socio economic characteristics, consumer awareness on
green products. Each of these variables is subdivided into various
factors built upon the literature review. These factors play
significant role in green purchasing decision and intentions and
they have sufficient influence.
(Individuals BeliefsEnvironmental FactorsSocio Economic
characteristics Company/government role/support Social
influenceAge, GenderIncomeResidenceEducation
LevelReligionOccupationMaterial StatusAwareness &
knowledgeMarketing InformationGreen Product, Price, place,
promotionAttitudes towards green purchaseGreen purchase
intentionPerception on green companiesPerceived Environmental
ResponsibilityEnvironmental concernsPerception on green
concept)
Figure 1.Concep
Figure 1. Conceptual Framework of the current research
Green Consumer Market (LOHAS Model)
The major conceptual model used in this study to measure the
green consumer purchasing behavior was Lifestyles of Health and
Sustainability (LOHAS). This is commonly used to refer the green
consumer and represents the marketplace for the goods and services
sought by these consumers (Mobium,2007).
The Natural Marketing Institute (NMI) has identified five
segments which categorize the greenness of the adult population
based on attitudes and behavioral traits toward health, wellness
and sustainability, rather than demographic characteristics.
Revised and updated over time, NMIs current green consumer segments
include (1) Active LOHAS, (2) Naturalites, (3) Drifters, (4)
Conventionals, and (5) Green unconcerned.
Consumers of the Active LOHAS market segment, purchase only
eco-friendly products and play an active and loyal role in
protecting the environment (Mobium,2007). This segment regularly
consumes organic and natural products, particularly those in the
food and beverage category. Naturalites are not, however, dedicated
to the green movement or large consumers of environmentally
friendly durable goods (e.g. hybrid vehicles, energy efficient
appliances), rather they are focused more on personal health
issues, such as holistic living (Mobium, 2007). Drifters are trend
sensitive and more worried about image than actual execution, as
well as eager to be seen in trendy eco-supermarkets such as Whole
Foods, partly because it is a fashionable place to be. This segment
is also fairly price sensitive (Mobium, 2007). Conventional
consumer group does not have a green outlook but does practice some
practical green behaviour, such as recycling and energy
conservation. They want to conserve resources (i.e. energy and
water etc.) because it is economical and sensible (Mobium, 2007).
Unconcerned group does not practice environmental responsibility.
This segment is therefore not a key target market for the LOHAS
industry (Mobium, 2007).
Sample:
Sample was collected in Western Province of Sri Lanka covering
Colombo, Gampaha and Kalutara districts which has become the most
populated area both residentially and industrially.
Since the number of individuals that possesses the trait of
interest in Green marketing is limited whereas relevant information
was obtained from a very specific group of people, Judgmental
sampling which is anon probability sampling technique was used for
the study where the units were sampled based on their knowledge and
professional judgment. Two hundred consumers were selected for this
study.
Data Collection:
The study was mainly based on primary which data was gathered
through a structured questionnaire based interviews. This phase was
consisted of questionnaire design, verification, pilot survey and
real survey.
Pilot survey:
In order to validate the questionnaire in terms of clarity,
adequacy and accuracy, a pilot survey was carried out as the first
step of fact finding by conducting interviews among ten businesses
in the designated region, involved in some form of green business
practices (convenient sample). Additionally, the questionnaire was
administered to several academics in the field of business
management and to a statistical expert. Along with feedback
gathered from the pilot survey, adjustments were made in selected
areas. For instance, increasing the number of categories in the
fields such as education level and monthly income are among the
significant adjustments that are useful in identifying
relationships with purchasing behaviors. As well, sequence and flow
of questions were changed in order to minimize errors (i.e.
influential feedback, avoidance and biasness). Consequently, the
continuous feedback was used in adjusting an accurate, adequate and
reliable questionnaire to be used to gather information on
identified research problems.
Real Survey:
The real survey was carried out as the second step during April
and May 2014 by conducting a structured questionnaire based
interviews and discussions among 200 consumers in Western province
Sri Lanka according to a Judgmental sampling technique. From this
sample, a total of 153 usable responses were received from
interviewees in Colombo, Kalutara, and in Gampaha Districts.
Analysis of Data:
Both descriptive and inferential statistical methods were used
to analyze data. Major software packages used for the analysis were
Statistical Package for the Social Sciences (SPSS) (Version 17),
MINITAB (Version 12) and Microsoft Excel (Version 2007). In
addition to the assortment of illustration methods used in
descriptive statistics, the major inferential statistical concepts
used were weighted likert scales, Chi- square analysis and
regression analysis. Descriptive analysis was used in this study to
simplify both qualitative and quantitative data so that it would be
easy to understand and measureable. Both categorical and continuous
data types were used so as to simplify demonstrations and to
facilitate further analysis. These methods are further discussed in
sections below.
Classification of Customers based on LOHAS:
12 statements were used to evaluate the purchasing behavior of
customers. These statements were developed based on the unique
characteristics identified in the LOHAS model .
Valuation Criteria of LOHAS Model:
Each statement was given a defined score where the sum can be
used to determine the segment which customers are belonged to. The
scores were determined by considering the unique and common
characteristics of different LOHAS groups (Table 1).
Table1. Valuation Criteria of LOHAS Model
Factor
Description
Statements
Score
01.
Unique characteristics of Active LOHAS
3,5,6,7,8
100
02.
Unique characteristics of Naturalities
9
80
03.
Common characteristics of Active LOHAS and Naturalities
2,3
75
04.
Unique characteristics to Drifters
4
50
05.
Unique characteristics of Conventionals
10
10
06.
Unique characteristics of Drifters, Conventionals and
Unconcerned
11
05
07.
Unique characteristics to Unconcerned
1,12
500
Source:Mohan, G. & Denis, W. (2013)
Assessing the Factors Affecting Purchasing Behavior:
Purchasing Behaviour is a function of (depends on) socio
economic factors.
Purchasing Behaviour = (Socioeconomic factors)
Purchasing Behavior = 0 + 1 (AGE) + 2 (GEN) + 3 (RES) + 4 (EDL)
+ 5 (REL) + 6(OCP) + 7 (MAS) + 8(INC) + e
Where,
AGE1= Age; Dummy/ discrete variable (50=5)
GEN2= Gender; Dummy/ discrete variable (Female =1, else 2)
RES3= Residence (Region1=1, Region2=2, Region3=3 etc.)
EDL4= Education level (Ordinary; levels from 1 to 5)
REL5= Religion (Buddhist =1, Catholic = 2 etc. or Buddhist =1,
Non Buddhist =2)
OCP6= Nature of occupation (Govt.= 1, Private =2, Self business
=3, Daily wages=4, Unemployed =5, Other= 6)
MAS7= Marital status (Married =1, Unmarried =2, Other =3 or
Married =1, else =0)
INC8= Gross monthly income (Rs., K=thousands)
(