AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
IDENTIFICATION OF GREEN CONSUMER PROFILE AND BEHAVIOR IN ORDER TO INCREASE GREEN BUSINEES MARKET SHARE IN INDONESIA
1. CISAK 2013 – 224
Identification of Green Consumer Profile and
Behavior in Order to Increase Green Business
Market Share in Indonesia
Khaira Al Hafi
Industrial Engineering Department, Universitas Indonesia,
Kampus UI Depok, Jawa Barat, Indonesia, 16424
khaira.al@ui.ac.id
Abstract. Indonesia’s long term development plan (2005-2015) claimed goal of “Green Indonesia”. This vision has also bees stated in
the 2010-2014 Medium-Term Development Plant that contains spesific rules and objectives related to sustainable development and
management of natural resources and environment. However, in order to develop industrial and friendly-environment business which
is not only depend on direct supporting from government, industry and business should have an understanding of green consumer
comprehensively. This study aims to identify the segment of purchaser of green consumer and understand green consumer’s behavior
in Indonesia. By using self-administered questionaire and non probability sampling, researchers found that : decision of purchasing
green products is not caused by only one product atribute, each category of product has spesific green features that influences
consumer purchasing decision, and most consumers does not know in ditail how the green company actually implemented green
decision despite they considers that is important for the company to adopt green manufacturing system and campaign.
Keywords: attribute, consumer, green, marketing, product
A. INTRODUCTION
Affecting both in field of services and manufacturing, in
order do meet the needs of consumers with variety of products,
Industrial and business expansion has initiated the opponent
result : consumer unrest around the world. Thats fact occured
due to the impact of product proliferation on the environment
can threaten the existence of the population. According to
Grewal et al [1], society has become anxious and scared when
they saw the growing of waste produced, especially in developed
countries. The waste can be produced both from factory’s
process and waste from consumer product package. Both of
them are generally difficult to recycle. Meanwhile, in developing
countries, the main concerns are the amount of waste due to the
lack of technology on processing product factories and the lack
oof method for disposal purposes.
Alibeli [2] studied that discussion of environmental issues in
developed countries has been initiated since the 1990s which
states that the habits and purchasing behavior of today's
consumers are directed to the issue of environmental
preservation. According to Shrum et al [3], in the United States,
several studies polls consistently show that a majority of
Americans see themselves as people who are environmentalists.
Other study conducted by a polling organization, pointed to Fraj
et al [4] , Roper Organization showed that the segments most
"green" among consumers has doubled in the period 1990 to
1993. In another poll in 1990 by an advertising agency, Walter
Thompson points to the fact that 82% of respondents noted that
they would pay at least 5% more for environmental-friendly
products, up about 49% from the previous year. Fraj also show a
recent research conducted by Advertising Age magazine that
held by Yankelovich Clancy Shulman. They found that 70% of
the respondents mentioned the decision of purchasing a product
or brand has been influenced by regular eco-friendly messages in
advertising apart from the label and packaging products.
Meanwhile, Indonesia, as a developing country that still has
been spurring economic growth, is currently using a large
amount of natural resources that are still polluting the
environment and lead waste from both industrial and domestic
activities. This is evidenced by the position of Indonesia is still
under the criteria of green economy with a Human Development
Index (HDI) 6.17 and Ecological Footprint 1.2. Therefore, it
should take into account applying the concept of sustainable
consumption and production (Sustainable Consumption and
Production / SCP) and the green economy in the context of a
pro-poor, pro-jobs, pro-growth and pro-environment.
Actually Indonesia’s commitment to support the implementation
of a green economy is shown with a variety of policies.
2. CISAK 2013 – 224
According to Environment Minister, Balthasar Kambuaya
when opening the 10th Conference of Asia Pacific Roundtable
for Sustainable Consumption and Production (APRSCP) in
Yogyakarta from 9-11 November 2011, Indonesia has
implemented a green industrial policy such as program 3R
(Reduce, Reuse, Recycle) , supervision of environmental-
friendly industrial raw materials, cleaner production,
campaigning balance exploration of natural forest,keeping the
water from pollution, and energy efficiency.
However, in order to develop industrial and business-friendly
environment independently, businessman must have an
understanding of demand or market orientation. Kim [5] studied
that for more than four decades, market-oriented corporate
strategy is viewed by academics and practitioners as a key pillar
to achieve superior performance in both manufacturing and in
service companies. Do Paco et al [6] also studied that the
marketing concept states that in order to achieve organizational
goals such as increasing market share and profitability, the most
influencing factor are ability of the company in determining the
needs and wants of target markets and satisfy them with more
effective and efficient process than its competitors Therefore, to
obtain a comprehensive understanding , required research and
studies of market segmentation and demographic profile in
Indonesia related to green and non green consumers.
B. ANALYSIS
1. Methodology
This study used a non-probability sampling as prochedure for
gathering primary data. Cooper and Schlinder [7] defines a non-
probability sampling as the sample size determination procedure
in which each member of a research target population does not
have the same opportunities to be selected as the sample. This
procedure is appropriate because the target respondents surveyed
must meet certain criteria that are relevant to the research
undertaken.
The population was urban communities scattered in several
major cities in Indonesia such as Padang, Batam, Jakarta,
Bandung, Surabaya, Yogyakarta and Makassar. Deployment
questionnaire is done online through social media : yahoo group
mailing list, facebook, google + and online media in two
directions: skype. The number of samples taken are 610
samples. The number of samples being measured has exceeded
the minimum number of respondents in studies using non
probability analysis according to Hair et al [8]
2. Types and Sources of Data
The data used in this study were obtained directly from
respondents which is relevant to the research, therefore the type
of data to be processed is the primary data. Primary data was
choosed because of its proximity to the real facts and the height
control that can be taken to avoid error at the time of data
gathering
3. Data Gathering procedures
The survey was conducted by using the instrument of self
administered questionnaire containing: a brief description of the
research being carried out, questionnaire filling procedure, risks
and benefits of participation, and willingness statement to
participate in the study.
After a brief introduction of research, on the issue of
environmental preservation and knowledge of green products,
respondents were asked to give his opinion on the overall
variables in the study. Respondents were asked to give a
statement regarding the intention to purchase green products for
green identify purchasers. Respondents were asked to respond to
all questionnaire items without leaving the items that can not be
responded.
C. RESULT
Fig. 1. Percentage of Green Consumer and non Green Consumer in
Indonesia
56%
44%
Green
Consumer
Non Green
Consumer
3. CISAK 2013 – 224
1. Non Green Consumer Data
Fig. 2. The reason why customer does not have enough willingness to
purchase green product
2. Green Consumer Data
a. Moderate Green Consumer Data
Fig. 3. The percentage of Moderate Green Consumer’s Gender
Fig. 4. The percentage of Moderate Green Consumer’s Age
Fig. 5. The percentage of Moderate Green Consumer’s Education
Fig. 6. The percentage of Moderate Green Consumer’s Income
Fig. 7. The reasons purchasing green products
b. High Green Consumer Data
Fig. 8. The percentage of High Green Consumer’s Gender
51%
26%
14%
9%
I got a little bit of information about
various kind of green product offered
Variant of green product is difficult to
be found
Green product has not been available
around me
Price of green product is too
expensive
58% 42%Gender
Man Woman
51% 24% 25%Age
18-35 years 36-45 years
46-65 years
8% 39% 7% 46%Education
Magister Bachelor
Diploma High School
17% 37% 35% 11%Income
0-Rp 1 million
Rp 1 million - Rp 5 million
Rp 5 million - Rp 15 million
> Rp 15 million
40% 17% 15%Reasons
I do care upon environment issue
I just try it
I care upon health of mine and my family
53% 47%Gender
Man Woman
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Fig. 9. The percentage of High Green Consumer’s Age
Fig. 10. The percentage of High Green Consumer’s Education
Fig. 11. The percentage of High Green Consumer’s Income
Fig. 12. The reasons purchasing green products
Fig. 13. The situatuions that affect purchasing decison for green products
Fig. 14. Constraint on purchasing green product
35% 23% 42%Age
18-35 years 36-45 years 46 - 65 years
9% 26% 8% 57%Education
Magister Bachelor Diploma High School
14% 31% 39% 16%Income
0-Rp 1 million
Rp 1 million - Rp 5 million
Rp 5 million -Rp 15 million
> Rp 15 million
45% 9% 7%Reasons
I do care
I just try it
I care upon health of mine and my family
39%
15%
10%
When I am at shop or
supermarket and I see green
product
When I get information
about their availability from
mass media
When I get some
recommendation to buy it
from friends or family
24%
28%
24%
26%
26%
17%
25%
26%
21%
37%
21%
27%
28%
29%
26%
18%
22%
25%
29%
28%
28%
24%
22%
29%
22%
21%
26%
28%
26%
31%
18%
17%
16%
19%
13%
18%
15%
18%
14%
19%
Paper
Fruit/vegetable
Electronic
Car/motor cycle
Health care & cosmetic
Snack & packages
Meat/fish
Office tools
Clothes
Home Furnitures
Price of green product is too expensive
Green product is difficult to be found
Product review is the same with conventional product
I do not need these green product
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Fig. 15. The level of important : companies must produce green product
and use green manufacturing as well
Fig. 16. Attribute of Green Company associated by green consumer
Table 1. Knowledge about green inisiative conducted by Indonesia Companies
Attributes
Unile
ver
(%)
Toyota
(%)
Sinar
Mas
(%)
Marth
atilaar
(%)
Intel
(%)
Bio
far
ma
(%)
Ne
stle
(%
)
I do not have
any idea that
this company
is a green
company
79.15 74.11 89.34 75.89 77.76
79.
10
74.
87
I knew that
this company
is a green
company,
still I do not
know in
ditail their
green
inisiative 10.06 7.86 6.67 7.56 8.56
6.2
3
7.4
4
This
company
is selling
green
product 3.24
8.89 1.32 8.79 6.84
7.5
5
9.9
7
This
company
adopted
environme
nt-friendly
production
system and
manufactur
ing process 3.44 5.56 1.44 6.67 4.44
3.6
7
5.5
9
This
company
conducted
any green
campaign 3.20 3.58 1.23 1.09 2.40
3.4
5
2.1
3
D. DISCUSSION
1. Green consumers is divided into High Green Consumer who
purchase green products based on his choice at three custom
parameter: most of the purchased products are green products,
buying many green products, or they have purchased green
products periodically. Moderate Green consumer is the
consumer who have purchased green products but have not
bought it periodically.
2. High Green Consumers are more committed and proactive in
purchasing, green product. They also have a better
understanding of green product, and concern on the
environmental and health problems as a major factor supporting
the purchase decision. Moderate Green Consumer make a
decision the first time to buy green product, largely driven by
curiosity. High Green Consumer is also older age, more
educated and higher income than moderate green consumers..
3. Green products does not automatically guarantee a purchase
decision. While in the store / supermarket, 41% green product
consumers compare prices with conventional products based on
various perspectives such as health benefit (70%) and quality
(66%).
4. Most high green consumer make purchasing decisions when
viewing the product information whereas the moderate consumer
green did it by the recommendation of family / friends.
5. 93% of consumers recommend that a company must
immediately transformed into a green company. However, on
the other hand the majority of respondents were not aware or can
11%
43%
46%
Not important
Less important
Important
47%
56%
83%
the company shows
transparancy about risk of
product usage
the company pay attention
upon environment issue
the company uses
environmental-friendly
production system and…
6. CISAK 2013 – 224
not recall green company policy initiatives that have made
before (the source of the company's website)
a. Nestle [9] has been committed in producing green
products: Naturnes (products with a composition of 100%
organic) and the latest Nestle packaging uses 25% of ingested
plastic that can be recycled.
b. Unilever [10] has adopted green manufacturing system
in order to reduce water usage into 63% on each ton of
production and 39% reduction in CO2 emissions per ton of
production.
c.Intel [11] has undertaken various green campaigns
including: the Climate Savers Computing Initiative and plug in
to recycling campaign. Intel also has built cooperation with
environmental organizations like Green Greed and the Chicago
Climate Exchange.
d.Toyota [12] has built a supply system that promotes
energy efficiency for the entire network of factories throughout
the world.
e. Marthatilaar [13] campaign for a product with the
original organic composition.
f. Sinar Mas [14] has been campaigning for forest
rehabilitation program that has been done in Riau and East
Kalimantan.
6. Prices, Availability in the market, and the lack of instructions
on the green product is a major obstacle that inhibits green
product purchasing decisions.
7. the most Green company attribute associated in the minds of
consumers is companies that have adopted green production
systems and the companies that are doing green campaign as
part of a company's CSR policy.
D. REFERENCES
[1] Grewal, Dhruv and Levy, Michael, 2010.”Marketing”.McGraw Hill
International Edition New York, USA
[2] Alibeli, Madalla A.2009.”Environmental Concern : A Cross National
Analysis”, Journal of International and Cross-Cultural Studies, Volume 3,
1-10
[3] Shrum,L.J.Mcarty,.John A, Lowrey.Tina M (1995).”Buyer Characterictics
of the Green Consumer and Their Implication for Advertising Strategy”.
Journal of Advertising, Vol.XXIV,Number 2, 71-82
[4] Fraj,Elena and Martinez, Eva.2006.”Influence of personality on ecological
consumer behavior”. Journal of Consumer Behavior 5, 167-181
[5] Kim, Yeonshin.2005. “Antecedents of Green Purchase Behavior : An
Examination of Collectivism, Environmental Concern, and PCE”,
Advances in Coonsumer Research Volume 32, 592-599
[6] Do Paco, Armina M. Finisterra, Raposo, Mario Lino Barata, and Filho,
dan Walter Leal, 2009, “Identifying the green consumer: A segmentation
study”, Journal of Targeting, Measurement and Analysis for Marketing,
Vol. 17, 1, 17-25.
[7] Cooper, Donald R. dan Schindler, Pamela S. 2008, “Business Research
Methods”, McGraw Hill International Edition, New York, USA.
[8] Hair et al., “Multivariate Analysis”, Pearson Global Edition, Saddle River,
New Jersey, USA.
[9] (2013) The Nestle website. [Online]. Available: http://www.nestle.com/
[10] (2013) The Unilever website. [Online]. Available :
http://www.unilever.com/
[11] (2013) The Intel website. [Online]. Available: http://www.intel.com/
[12] (2013) The Toyota website. [Online]. Available: http://www.toyota.com/
[13] (2013) The Marthatilaar website. [Online]. Available:
http://www.marthatilaar.com/
[14] (2013) The Sinar Mas website. [Online]. Available:
http://www.sinarmas.com/