THE STUDY OF CONSUMER BEHAVIOR AND PURCHASING DECISION TOWARD ECO-FRIENDLY BUILDING MATERIALS BY MR.APICHART ASAWA-AMNUAI AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2015 COPYRIGHT OF THAMMASAT UNIVERSITY
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THE STUDY OF CONSUMER BEHAVIOR
AND PURCHASING DECISION TOWARD
ECO-FRIENDLY BUILDING MATERIALS
BY
MR.APICHART ASAWA-AMNUAI
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2015
COPYRIGHT OF THAMMASAT UNIVERSITY
THE STUDY OF CONSUMER BEHAVIOR
AND PURCHASING DECISION TOWARD
ECO-FRIENDLY BUILDING MATERIALS
BY
MR.APICHART ASAWA-AMNUAI
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF SCIENCE PROGRAM IN MARKETING
(INTERNATIONAL PROGRAM)
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2015
COPYRIGHT OF THAMMASAT UNIVERSITY
(1)
Independent Study Title The Study of Consumer Behavior and
Purchasing Decision Toward Eco-Friendly
Building Materials
Author Mr.Apichart Asawa-Amnuai
Degree Master of Science Program in Marketing
(International Program)
Department/ Faculty / University Faculty of Commerce and Accountancy
Thammasat University
Advisor Prof. Dr. Paul G. Patterson
Academic Year 2015
ABSTRACT
The study of “consumer behavior and purchasing decision toward eco-
friendly building materials” has been chosen to be a part of a contemporary topic in
applied marketing for building material producers especially SCG (Siam Cement
public company limited) who decided to enter the eco-friendly building materials
market in order to develop marketing strategy for the future plan.
In order to achieve this purpose, the study set out to achieve the following
four objectives. The market research methods were conducted in two stages in this
independent study. Firstly, the research used two exploratory methods. There was two
focus groups conducted to find insight in consumer attitude and behavior, consumer
factors effecting purchase decision one building materials product and attitude
statements (Objective 3-4). The quality of answer provided rich information that helps
producer to understand the reaction from consumer Secondly, the descriptive research
was done with market survey after the exploratory research in order to expand and
quantify the research finding into key figures. The sample selection of the study was
executed by using the convenience-sampling concept. The 200 respondents are
include 100 of users and 100 of non-users of eco-friendly building materials product.
The data analysis and interpretation conducted after the market research and analyzed
by using SPSS.
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ACKNOWLEDGEMENTS
I would like to express my sincere gratitude to my advisor, Prof. Dr. Paul
G. Patterson, for his guidance throughout the course of independent study. The
advice, help and recommend through meeting and emails are really valuable for my
study. I am very thankful to all participants in my research who gave me their real
and useful information for the focus group and the questionnaire both offline and
online channel. I would like to extend my appreciation to my colleagues at SCG
company especially brand management office who support me in term of the
information. Thank to my friend to support me.
Lastly, I thank almighty my parents, sister and brother for unconditional
love, inspiration and support given to me.
.
Apichart Asawa-Amnuai
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TABLE OF CONTENTS Page
ABSTRACT (1)
ACKNOWLEDGEMENT (2)
LIST OF TABLES (5)
LIST OF FIGURES (6)
CHAPTER 1 INTRODUCTION 1
1.1 Research Objectives 1
CHAPTER 2 CONTEMPORARY TOPIC DESCRIPTION 3
2.1 The 4Ps Marketing Mix 3
2.2 The Success Brand Set 3
2.2 Literature Review 4
CHAPTER 3 RESEARCH METHODOLOGY 5
3.1 Exploratory Research 5
3.2 Descriptive Research 6
3.3 Sampling Procedure 6
3.4 Research Sample 7
3.5 Data Collection 8
3.6 Data Analysis 8
CHAPTER 4 RESEARCH FINDINGS AND RESULTS 10
4.1 Key Finding from Secondary Research 10
4.2 Key Finding from Focus Group 11
4.3 Key Finding from Market Survey 14
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CHAPTER 5 MANAGERIAL APPLICATIONS AND CONCLUSIONS 29
5.1 Result Summary 29
5.2 Business Implication 31
5.3 Suggestion and Further Study 32
REFERENCES 33
APPENDICES 34
BIOGRAPHY 41
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LIST OF TABLES
Tables Page
3.1: Research Sample 7
4.1: Key building materials company, brand and product 11
4.2: Personal characteristic user respondent in focus group 11
4.3: Personal characteristic non-user respondent in focus group 12
4.4: Demographic Report 15
4.5: Type of user distribution by product awareness 17
4.6: Crosstabs Type of user x Status 18
4.7: Crosstabs Type of user x Occupation 19
4.8: Crosstabs Type of user x Age 20
4.9: Crosstabs Type of user x House Value 20
4.10: Mean score of key decision-making factors influencing to purchase the building
materials product 23
4.11: Independent samples test (t-test) – Means score of key decision-making factors
influencing to purchase the building materials product difference between customers
and non-customers 24
4.12: Mean score of attitudinal statement behavior toward eco-friendly
building materials product 25
4.13: Independent samples test (t-test) – Means score attitudinal statement
behavior toward eco-friendly building materials product difference between
customers and non-customers 28
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LIST OF FIGURES
Figures Page
2.1 The successive set involved in consumer decision-making 3
4.1: Eco-friendly building materials product awareness 16
4.2: Brand awareness of eco-friendly building materials - user 21
4.3: Willingness to pay for eco-friendly building materials comparing to
general building materials. 21
4.4: Channels to purchase building materials 22
4.5: Source of building materials product information 22
1
CHAPTER 1
INTRODUCTION
Building materials product is very important for developing country like
Thailand due to infrastructure, housing, and building that are rising significantly.
Nowadays, green trend is increasing rapidly due to government support as there are
concerns more on eco-friendly product preferences, since the launch of the new
regulation for 17 types of products and service purchasing for government agency in
January 2008. The regulation stated that the purchase have to contain at least 25% of
green products and the portion required will be increased up to 100% in 2011. On the
other hand in the private sector, the usage of "green buildings" has increasingly by the
big company use its to uplift their corporate social responsibility (CSR) and improve
their company reputation, This lead to rise of the green buildings being constructed in
Thailand since 2007. Therefore, this is the great opportunity for building material
producers to catch up the green trend and develop new building materials with green
features such as hybrid cement from recycle raw material, wood substitute from green
process, roof tiles or solar panel to launch to consumer market.
In conclusion, the finding of the study of “consumer behavior and
purchasing decision toward eco-friendly building materials” reported to the public
under the aspiration of the researcher in order to beneficially help building material
producers especially SCG (Siam Cement public company limited) who decided to
enter to eco-friendly building materials market in order to develop marketing strategy
for the future plan.
1.1 RESEARCH OBJECTIVES
The purpose of this research is beneficially help building material
producers especially SCG (Siam Cement public company limited) who decided to
enter to eco-friendly building materials end-consumer market in order to develop
marketing strategy for the future plan by the study of consumer behavior and
purchasing decision of toward eco-friendly building materials. The research is guided
by following objectives:
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1. To evaluate awareness of eco-friendly building materials product.
2. To identify user of eco-friendly building materials product.
a) Psychographic
b) Behavioral
c) Demographic
3. To define consumer decision-making factors in choosing the building
materials product.
a) The most important purchasing factor in choosing building
materials product.
b) The importance of eco-friendly features.
c) The differences in decision-making factors between user and non-
user of eco-friendly building materials product.
4. To understand consumer attitude and behavior toward eco-friendly
building materials product
a) The positive attitude eco-friendly building materials product.
b) The Negative attitude eco-friendly building materials product
c) The differences in attitude between user and non-user toward the
eco-friendly building materials product.
3
CHAPTER 2
CONTEMPORARY TOPIC DESCRIPTION
2.1 THE 4PS MARKETING MIX
The researcher found six relevant articles that is greatly beneficial to this
study. The eco-friendly building materials is one of the product which can describe
into the 4Ps marketing mix) as follow; (E. Jerome McCarthy, 1960)
1. Product: Product quality, product design, service and product design
2. Price: Reservation price (Higher than general product, similar to
general product and lower than general product)
3. Place: Easy to find distribution channel and relationship between seller
and customers
4. Promotion: Brand and promotion
2.2 THE SUCCESSIVE BRAND SET
FIGURE 2.1: The successive set involved in consumer decision-
making (Kotler, P. &Keller, K.L., Marketing Management, 14th edition, 2012,
p.189)
Successive brand set is the model of consumer decision-making by
gathering brand and product feature information from source of information around
them. The total set of brands is the first stage. And the consumer may know some
brand in total set which leading to the awareness set. Some of the brands meet the
buyer’s buying criteria will move forward to the consideration set. As the consumer
gathers more information about product and product related then they have choice set
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in their mind. The consumer will make decision on this. So It’s very important for the
producer to understand the consumer’s decision criteria’s to make them as the final
decision like the example of computer industry in figure 2.2.
2.3 LITERATURE REVIEW
According to Assist. Prof. Dr. Singha, the designer who specialize in eco-
friendly product, pointed out that trend for green product is increasing recently in
several sectors especially food, automobile and building materials industry and by
2020, the green trend will be a global lifestyle.
Also from Thai Green Building Institute report, the number of green
structures has been growing rapidly over the past six years, almost doubling annually
as the direct result of increasing awareness driven by the institute, universities, the
private sector and the government.
Thai government concern more on eco-friendly product preference, since
they have launched the new regulation for 17 types of products and service
purchasing for government agency in January 2008 that the purchase have to contain
at least 25% of green product and the portion required will be increased up to 100% in
2011. As well as in the private sector, the usage of "green buildings" has increasingly
by the big company use its to uplift their corporate social responsibility (CSR) and
improve their company image, resulting in rise of these types of buildings being
constructed in Thailand since 2007.
Therefore, there is potential for building material producers to catch up
the green trend and to realize how consumer perceive of green features on building
material product and how it could impact on consumers’ purchasing decision, so that
the producers could have ideas for its strategy to try to develop eco-friendly building
materials such as hybrid cement from recycle raw material, wood substitute from
green process, roof tiles or solar panel to be launched into consumer market.
It is crucial to understand the customers in this eco-friendly building
materials market, their attitude, decision-making influence factors, and behavior.
Therefore, the study of “consumer behavior and purchasing decision toward eco-
friendly building materials” has been chosen to be an independent study topic, which
focuses on the issue of technology
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CHAPTER 3
RESEARCH METHODOLOGY
To deepen the understanding of consumers and learn more about
customers’ insight, marketing tools are utilized to collect the secondary data and
primary data in both qualitative and quantitative approaches. Sampling election and
target respondents have been selected from user and non-user of eco-friendly building
materials. In order to achieve the objectives, the research has been divided in two
stages; first the exploratory research then the descriptive research.
3.1 EXPLORATORY RESEARCH METHODOLOGY
To achieve all of the study objectives, this study used two exploratory
methods including the secondary research and the qualitative research. Each research
method has been designed to achieve the objectives of a particular study as follow,
3.1.1 Secondary Research
To study on market overview in term of the current market situation,
market competition and its strategy. In addition, this provided the important overview
figure for building materials market in term of the market values, market growth and
market information. The research is to explore the significant article and critique
about building material industry in order to gain market information, to be used as a
guideline for quantitative research. The sources of information for this secondary data
are mostly fact and data from the Internet, company website, annual reports and other
supported sources including the publishing, news, related research studies, etc. This
information helps researchers to investigate into the appropriate data that will identify
possible prior to the actual collection of data and also to notice potential trends of the
market, which could see the potential result from the survey.
3.1.2 Focus Group (Appendix A)
The focus group is one of the qualitative research methods which find
consumer attitude and behavior, consumer decision-making factors in choosing the
building materials product and also defined attitude statement (Objective 3-4). The
quality of the answers will provide rich information in order to help understand in
6
depth on the reaction from consumers. The data obtained from focus group was
analyzed understand the key variables and guideline for designing the survey
questionnaire.
3.2 DESCRIPTIVE RESEARCH
The purpose of descriptive research is to help quantify the research result
into figure, percentage and ranking. The research will be conducted by using market
survey in order to collect the data and coded into numbers for SPSS. The data was
used to interpret the result, which helps to achieve the objectives of overall study.
3.2.1 Market Survey
The market survey is a quantitative research method using the survey
questionnaire. The questionnaire was designed based on the result from the focus
group. The questionnaire consist of closed-end questions with Likert scale, semantic
differential scale technique, and opened-end questions. (Appendix B: Questionnaire)
the proposes of the market survey are:
1. To evaluate awareness of eco-friendly building materials product.
(Objective 1)
2. To identify user of eco-friendly building materials product in term of
psychographic, behavioral and demographic (Objective 2)
3. To define consumer decision-making factors in choosing the building
materials product and the differences in decision-making factors
between user and non-user of eco-friendly building materials product.
(Objective 3)
4. To understand consumer attitude and behavior toward eco-friendly
building materials product and the difference of attitude between user
and non-user of eco-friendly building materials product.
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3.3 SAMPLING PROCEDURE
1. Sample Selection: The respondents will be screened at the beginning
stage as the respondents need to be 50% user and 50% non-user of eco-
friendly building materials product.
2. Respondent Qualification:
• Male or female age between 25-55 years old .
• Live in Bangkok and up-country areas.
• Upper middle class to upper class customer (house value 3,000,000-
5,000,000 baht or more than 50,000-70,000 baht household income).
3. Respondent Selection Criteria
• 10 respondents for 2 focus groups will be selected based on quota
sampling, 50% user and 50% non-user of eco-friendly building
materials product.
• 200 respondents for market survey will be selected by screening
questions and based on quota sampling (50% user and 50% non-user
of eco-friendly building materials product)
4. Survey acquisition & recruiting plan
• Focus group - The participants will be interviewed with semi-
structured questions. All of them have to pass the screening
questions to be considered as “the target respondents in user group
or non-user group”. And focus group will take no more than 60
minutes.
• Market Survey - Online questionnaire, the respondents who are non-
user will be acquired through line application which is the most
popular application in Thailand and Facebook page created to attach
the online survey link. Offline questionnaire, the respondents who
are user will be survey by a methodology of interviewer-
administered questionnaire in the construction site, workplaces and
home villages. This will include the actual homeowners of the
product who invest to build house with eco-friendly product.
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3.4 RESEARCH SAMPLE
The qualitative and quantitative research methods were conducted by
selecting convenience sample as follow;
TABLE 3.1: Research Sample
3.5 DATA COLLECTION
1. Qualitative Research: Focus group
• The respondents were divided into two groups for the focus group,
which are user and non-user of eco-friendly building materials
product.
• The respondents of focus group have been recruited within
Bangkok area and up-country area, which vary age, occupation and
income.
• The focus groups were conducted by moderator.
• The interview duration for each group was around 45-60 minutes
• The set of questions is in shown an appendix A: Focus group
discussion guide
2. Quantitative Research: The Market Survey
§ The questionnaires were distributed by using the quota methods
both on-line and off-line.
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§ The respondents will be screened at the beginning stage as
respondents need to be 50% user and 50% non-user of eco-friendly
building materials product
§ The questionnaires were set with at least 200 data sets divide into 2
groups, which are group of user 100 and group of non-user 100 of
eco-friendly building materials product.
§ The survey set the quota sampling of target respondents by using
50% user and 50% non-user of eco-friendly building materials
product
§ The Online questionnaire has been distributed via online through
“Google Docs” (https://docs.google.com) and the respondents
could access to the online questionnaire via the following link
given. Respondents were acquired through Line application and
Facebook, which are the most popular application and social media
in Thailand.
§ The questionnaire received a total 242 data sets with 13 error data
set and 25 unqualified respondents data sets.
3.6 DATA ANALYSIS
1. Qualitative Research: Focus group, the data collected were analyzed
based on each group to define the key finding of user and non-user of
eco-friendly building materials product then comparisons between each
groups were done to define the differences. The summary of each group
and all groups will be reported by using the following pattern,
• General information: Gender, age, level of education, occupation.
• Awareness of eco-friendly building materials product: Example.
Hybrid Cement, Eco-friendly roof tiles and solar panel.
• Consumer decision-making factors in choosing the building
materials product: Example. Quality, price, distribution, service
and eco-friendly.
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• The difference in decision-making factors between user and non-
user of eco-friendly building materials product.
• Consumer attitude and behavior toward eco-friendly building
materials product (why the buy or not buy): Example, Positive
Attitude: Eco-friendly building material product help me build my
image, eco-friendly building material protect the planet, I build my
environment concern image by using eco-friendly building
material, Negative Attitude: eco-friendly building material is not
value for money product (expensive).
• The difference of attitude between user and non-user of eco-
friendly building materials product
Moreover, the findings of each topic or sub-topic will be listed
and ordered into top five to top ten answers. Then, the selected answers
will be used as the choices when designing the survey questionnaire
particularly the closed-end questionnaire.
2. Quantitative Research: The verified data were analyzed through SPSS.
The questionnaire was designed mostly with closed-end questions and
one open-end question at the end of questionnaire. The multiple choices
questions were analyzed by using percentage while the rating questions
were analyzed base on mean score. The analyses were done, focusing on
the frequency, relative frequency, correlations between variables,
analysis of variance, and cross tabulation. The result from SPSS will be
interpreted and presented in tables and graphs to support evidence of the
study of consumer behavior and purchasing decision toward eco-friendly
building materials
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CHAPTER 4
RESEARCH FINDINGS AND RESULTS
4.1 KEY FINDING FROM SECONDARY RESEARCH
According to Kasikorn Bank, Thailand, the market value of building
materials is worth 580,000 million baht in 2014 with a growth rate of 4-5%. The
usage of "eco-friendly building materials" has increasingly by government and large
firms to improve their corporate image and show their corporate social responsibility,
These were cause by the new regulation on 17 types of products, the increasing
numbers of green buildings being constructed in Thailand since 2007 and the trend on
green and environmental concern.
The number of eco-friendly building material products has been growing
rapidly because an increasing in awareness driven by the building materials producer,
institute, universities, the private sector and the government.
Moreover, eco-friendly building material products is not only for the
business market but also for consumer market because there are many new eco-
friendly building materials launched to the market, which is benefit to end-user in
many aspects.
Besides the brand image and CSR benefit aspects, eco-friendly building
material products also have lower operating costs in the long run. In the case of new
construction projects, there is a significant decrease in operating costs such as the
facilities cost (energy cost) resulting in higher savings in the long-run and even truly
increase ROI.
The players and their concerns that influence the further growth in eco-
friendly building materials in Thailand include:
1. Government: lack of consistency and support in execution.
2. Consumers: limited awareness on economical and health benefits.
3. Building materials producer: acquire 20% more in retail prices
compared to standard building materials.
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4. Developers: cost-benefit consideration (including the availability of
materials and energy solutions, which eventually rely on imports and
increase overall costs).
5. Construction workers: lack of technical knowledge and familiarity.
The key building materials company in Thailand market includes;
TABLE 4.1: Key building materials company, brand and product.