Factors Influencing Customer's Decision To Buy Green Product Design In Malaysia

Nurul Zarirah, Nizam (2012) Factors Influencing Customer's Decision To Buy Green Product Design In Malaysia. Project Report. UTeM, Melaka, Malaysia. (Submitted)

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Abstract

Customers' acceptance of green products is still low, particularly in Malaysia. This conclusion can be drawn from the fact that the number of environmentally friendly products offered in the market is relatively low compared to their non-green counterparts. One way to overcome this problem is by designing products that meet customers' expectation. Consequently, firms should understand how customers think about green products. The purpose of this study is to identify the factors which influence customers' decision in buying green product in the context of developing countries. In this paper, green products are defined as products or recycled products which can prevent or minimize their negative impacts on the environment. The key factors which may influence customers' intention to buy green products, which have benefit-to-self, benefit to environment, comparative cost and attainable cost. Then, an examination of those factors is conducted through a survey on 360 customers and potential customers of green products in Melaka, Malaysia. A statistical data analysis is then performed using a Statistical Package for the Social Sciences (SPSS). From this investigation, it is revealed that the benefit-to-self factor is not a significant factor which influences customers' intention to buy green products. Research design provides basic guidance and direction to carrying out the research project. The design of this study is a case study. Regarding on this research questions, this study will consist of several steps. At the beginning, a literature review is conducted to find out characteristics of the customers of green products, as well as factors which are usually considered by customers in the green buying decision. Data will be collected through a survey on customers and potential customers of green products in Malaysia. This research will use a different perspective. It will try to investigate factors which are valued the most by customers of green products instead of setting them a priori. In addition, customers' decision about their preferences and choices are based on the value of the product. The implication of this research to the design of green products is then discussed.

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