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1. Introduction
Elham Rahbar is based at
the School of Management, Over the past decades, concern about the environment has become not only a significant
Universiti Sains Malaysia, public issue but also a crucial topic in academic research. A sharp rise in environmentalism
Malaysia. has emerged in the US and western Europe. A positive change within consumers’ behavior
Nabsiah Abdul Wahid is towards environmental related products can be seen due to the increased level of
based at the Graduate environmental awareness since the 1970s (Alwitt and Pitts, 1996). This change contributed
School of Business, to the start of the green revolution to prevent further damage to the environment. Malaysia is
Universiti Sains Malaysia, also following the same tools to protect the environment.
Malaysia.
Throughout the years, Malaysia has demonstrated serious commitment towards
environmental management to achieve environmental objectives, such as, launched the
Product Certification Program, Malaysia’s national labeling program by the Standards and
Industrial Research Institute of Malaysia (SIRIM). This eco-labeling scheme emerges with
the purpose of providing information to consumers in order to identify environmental
products and their specifications. Other considerable national environmental policies which
were endorsed by the Agricultural Department and Federal Agriculture Marketing Authority
(FAMA) and the Malaysian Energy Commission are related to agricultural products and
energy efficiency (EE). The developments observed in Malaysia show the efforts taken
through green marketing initiatives to encourage consumers into taking account the
environmental aspects in their purchasing behavior. Naturally, the change in consumer’s
behavior where those who worry about the environment will indicate their concerns through
different behaviors like checking the products which they are going to purchase to ensure
they are buying ethically (Suchard and Polonski, 1991).
Green marketing tools such as eco-label, eco-brand and environmental advertisement will
make easier perception and awareness of green products attributes and characteristics,
consequently, guiding them into purchasing environmentally-friendly products. Applying
these policy tools plays an essential role to switch consumer’s actual purchasing behavior to
buy environmental friendly products, therefore, reduce the negative impact of synthetic
products on the environment.
Studying the determinants of consumers’ green purchase behavior would benefit green
marketers. Although studies on the influence of green marketing tools on purchase behavior
has been the focus of some of recent studies, majority of them have been conducted in
industrialized countries (Bleda and Valente, 2008; Chatterjee, 2009; Chan, 2004; Davis,
1993) but the findings often contradict each other. Therefore, the findings may only be
relevant in certain cultural, time and geographical context. Due to the complexity in
consumers’ green purchasing behavior, generalization is often not meaningful under
This research project was
funded by the Universiti Sains different cultural and demographical context. According to Ottman (1992a, b) and Peattie
Malaysia fellowship scheme. (1992) demand and attitudes for green products is likely to be uneven across different
The authors thank the IPS and
the School of Management for
market segments and cultures. Consequently, research on the effect of green marketing
providing facilities. tools on purchase behavior in emerging Asian markets is considered to be well-timed. In
DOI 10.1108/17515631111114877 VOL. 12 NO. 2 2011, pp. 73-83, Q Emerald Group Publishing Limited, ISSN 1751-5637 j BUSINESS STRATEGY SERIES j PAGE 73
addition, this kind of research can provide some insights to green marketers regarding how
they can expand their operation in Asia especially in Malaysia.
In particular, the objective of this paper is to examine if the green marketing tools (i.e.
environmental advertisement, eco-label and eco-brand) as a variable, affect the consumer’s
actual purchasing behavior among Penang’s consumers (state in Malaysia).
2. Literature review
2.1 Green marketing tools
Lee (2008) states three stages for green marketing. The first stage of green marketing
emerged since the 1980s, when the green marketing notion was newly initiated in industry
(Peattie and Crane, 2005). Green marketing went into its second stage in the 1990s, in this
decade the specific backlash was experienced by marketers (Wong et al., 1996).
Progressively, marketers apprehended that consumers concern, their positive attitude
towards environment and green products did not translate into purchasing behavior
(Schrum et al., 1995). Since 2000, green marketing has developed into a third stage. In the
this stage green marketing has gone through new momentum again with implementation of
more advanced technology, stricter regulation by governments and enhancement of global
environmental awareness.
According to Hartmann and Ibáñez (2006) green marketing generally focuses on the
efficiency of cognitive persuasion strategies, and believes that the consumer’s high
involvement concerning environmental issues is an effect of growing environmental
knowledge.
Stanton and Futrell (1987) define green or environmental marketing as actions intended to
replace current needs and wants with minimal harmful impact on our environment.
Ginsberg and Bloom (2004) claim that there is not any single marketing tool that would be
appropriate for all firms. Rather, strategies should be different based on different markets
and the degree of consumer concern on the environment.
Three green marketing tools are considered in this study as enhancements to a consumer’s
knowledge about environmental friendly products. Currently, these tools are also used to
help consumers distinguish between green products and conventional products. These
tools include eco-brand, eco-label and environmental advertisement.
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Few studies have investigated the link between environmental labeling and a consumer’s
intention and behavior to purchase environmentally-friendly products (D’Souza, 2004; Nik
Abdul Rashid, 2009; Whitson and Henry, 1996). In addition, D’Souza (2004) explains that
little is understood about the effect of label information on a consumer’s intention to purchase
environmental friendly products. For instance, according to a report by the Parliamentary
Office of Science and Technology (2004), in markets with low awareness consumers about
environmental issues, eco-labeling as a green marketing tool is ineffective. One reason for
this ineffectiveness is the lack of consumer’s trust of eco-label schemes (Schwartz and Miller,
1991). In some cases consumer’s distrust of eco-labels can be expressed through their
ignorance in identifying eco-labels and the regulations which authorize companies to place
labels on their products (Lyer, 1999). In this sense investigators such as Bleda and Valente
(2008) state that performance of eco-labeling schemes has shown the adverse effect in
some situation, whereas, Kuhn (1999) illustrate that these situations will emerge by growth in
pollution from enlarging the market in result of achieving greater market share through
manufactured environmental friendly products.
Furthermore, not much has been said about the influence of the cognitive process of reading
label information as a choice criterion that consumers use to make green purchases.
According to Nik Abdul Rashid (2009) eco-labels are attractive instruments informing
consumers about the environmental impact of their purchasing decisions. To help
consumers to identify products those are more environmentally preferable than other similar
products, eco-labeling schemes were initiated in order to promote environmental
consumerism. The first eco-labeling schemes have been developed since the late 1977 in
Germany (Blue Angel eco-label). To date, there are approximately 30 different green label
schemes worldwide. Asian countries such as China, Japan, Korea, India, Thailand, Malaysia
and Singapore have launched their own eco-labeling schemes. The Malaysian business
sector is not far behind in responding to challenges arising from demand made from the
consumers for environmentally friendly products. Malaysian green label schemes were
committed to start in 1996 by the Standards and Industrial Research Institute of Malaysia
(SIRIM) at that time there were eco-labeling schemes related to energy conservation,
agricultural products, degradable, non-toxic plastic packaging material, hazardous
metal-free electrical and electronic equipment, biodegradable cleaning agents and
recycled paper.
This study deals with the consumers’ recognition of various labels, use of eco-labels and the
understanding of eco-labels meaning and trust of the label’s message.
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This influence is known as brand equity. According to Aaker (1992), brand equity, from a
consumer’s perspective, can be defined as a differential effect that brand knowledge has on
a consumer’s response to the marketing of that brand. Green brands should be used to
emphasize the position that green products perform the same as non-green ones. Also,
green brands should be used to help consumers differentiate green brands from other
similar brands with same functions. The significant factor motivating consumers to change
actual purchase behavior to buy eco friendly products is emotional brand benefits
(Hartmann et al., 2005). Hartmann et al. (2005) list different types of emotional brand benefits
as:
A feeling of well-being, auto-expression benefits through the socially visible consumption and
nature-related benefits (p. 11).
Thus, the purchasing behavior will switch to buy environmental friendly products as a result
of consideration of the benefit of green brands. The consumers who acknowledged
themselves as an environmental conscious consumers prefer to select the green products in
their actual purchase to satisfy their emotional needs.
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their organizations, their products and their advertising in order to achieve the goal of
changing the consumer purchasing behavior (Mendleson, 1994).
Referencing from the existing literature, it is thus hypothesized that:
H1. A significant and positive relationship exists between green marketing tools and
customer’s actual purchase behavior.
H1a. A significant and positive relationship exists between eco-label and customer’s
actual purchase behavior
H1b. A significant and positive relationship exists between eco-brand and customer’s
actual purchase behavior.
H1c. A significant and positive relationship exists between environmental
advertisement and customer’s actual purchase behavior.
3. Method
3.1 Sample and procedure
The respondents in the current study were individual consumers in Penang. It was decided
that the sample be formed by individuals over the age 18-years-old. The reason is
individuals above this age are familiar with purchasing of products and are also empowered
in their decisions for choosing the right items between many available choices, therefore,
considerate to environmental issues in their purchasing behavior. The method of data
collection was a structured questionnaire. The survey was distributed in some main
shopping centers in Penang where people purchase their daily necessities from. A total 250
individuals in Penang participated in the present study.
3.2 Measures
The questionnaire is composed of five sections. The first part focused on the demographic
characteristics of respondents.
Perception towards environmental advertising was measured in the second part of the
questionnaire following Chan’s (2004) study. Four items measuring the perceived impact of
environmental advertisement on consumer’s actual purchasing behavior were used on a
five-point Likert scale (1 ¼ strongly disagree, 5 ¼ strongly agree).
The third part measures perception of eco-label of green marketing tools as a guide to
consumers for recognizing environmentally-friendly products. It was adapted from Nik
Abdul Rashid’s (2007), the original study consisted of three components of evaluating
consumer’s cognitive behavior towards the eco-label which are: awareness, knowledge and
trust. With respect to subject we utilized awareness and trust, again with five-point Likert
scale composed of three items respectively. The respondents’ recognition about the
eco-label was tested by applying one of the local logo (Malaysian best) in the questionnaire.
The fourth part of questionnaire was designed to measure the impact of eco-brand on
consumer’s actual purchase behavior. The last part of the questionnaire covers the
dependent variable of the study, i.e. actual purchase behavior. In this study, the variable is
measured by the level of the priority given when respondents decide on their actual product
purchase of green products with ecological features versus non-green products. Each item
measured would underline the feature of green and non-green products to be selected by
consumers following a related study by Nik Abdul Rashid (2007). In his study, consumer
intention was measured using two group products, i.e. energy saving versus non-energy
saving light bulbs (green and non green products) where respondents were asked to
compare the two group products and specify their preference on a five-point Likert scale
(1 ¼ strongly agree to 5 ¼ strongly disagree). Although the focus of this study is on actual
purchase behavior (not purchase intention), the researchers have followed closely Nik Abdul
Rashid’s method but the two groups of products were created following Yam-Tang and
Chan’s (1998) classification of environmentally sensitive products instead. Group A displays
a six items/green products with characteristics that fit with a green product definition (they
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can impact positively on the environment) whereas group B displays seven items representing
the non green products. The displays of both group A and B products are followed by related
statements on consumer actual purchase behavior. A five-point Likert scale as used in Nik
Abdul Rashid’s study is used here. Statistical techniques were used to process the data
included, factor analysis, reliability analysis, and multiple regression analysis.
4. Findings
Factor analysis was utilized on four study variables to provide information included in several
variables into a small number of factors. Thus, the basic structure of the domain could be
discovered and would facilitate the interpretation of underlying domains (Sekaran, 2006;
Hair et al., 1998).
All constructs were subjected to principle component analysis with Varimax rotation. The
solution was using the criterion of eigenvalue greater than 1.00 with the cumulative
percentage of above 50 percent and factor loading for each item should load 0.50 or greater
are considered significant while loading lower than 0.35 on other factors are acceptable
(Hair et al., 1998).
Green marketing tools have been used as an independent variable to specify the impact on
actual purchasing behavior. The variables include three dimensions: environmental
advertisement, eco-label and eco-brand. These three dimensions were combined for factor
analysis. A factor analysis on 16 items (four items environmental advertisement, six items
eco-label and six items eco-brand), was performed to measure this construction and four
identifiable dimensions, appropriately named as environmental advertisement, eco-label,
eco-brand and one dimension for trust perception to eco-label and eco-brand (Table I).
The results have shown similarity with the study by Nik Abdul Rashid (2007), in his research,
perception towards eco-label had only two identifiable dimensions, listed as awareness of
Environmental advertisement
Environmental advertisement enhance my
knowledge about green products 0.87 0.03 0.007 0.10
I enjoy watching broadcast environmental
advertisement 0.82 0.13 0.10 0.05
Environmental advertisement guide customers to
making an informed purchasing decision 0.79 0.16 0.009 0.13
Perception of eco-label
I am aware the Malaysian best logo 0.01 0.14 0.91 0.03
The Malaysian best logo is easily recognizable
for me 0.06 0.13 0.90 0.004
Perception of eco-brand
I am aware of eco-brands 0.09 0.63 0.33 0.10
Eco-brand is symbol of product reliability 0.06 0.79 0.09 0.24
I believe eco-brand is truthful 0.15 0.88 0.02 0.04
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the label and trust in label. All remaining items had a factor loading of between 0.63 to 0.91
and the eigenvalue of 2.80, 1.81, 1.55, and 1.1 respectively. The four factors cumulatively
contained 72.76 percent of the variance in the data with KMO of 0.65 and significant
Bartlett’s Test of Sphercity.
The reliability test was carried out for four dimensions, resulted Cronbach alpha 0.78, 0.70,
0.84 and 0.54 respectively for environmental advertisement, eco-label, eco-brand and trust
in eco-label and eco-brand.
Only one dimension was extracted from four items measuring the actual purchase behavior
since the solution cannot be rotated. The eigenvalue extracted was 2.52 and captured 63.19
percent of the variance in the data with KMO 0.77 and significant Bartlett’s Test of Sphericity.
Reliability test performed gave a 0.80 on Cronbach alpha.
From the factor analysis results, one dimension to green marketing tools was added (trust in
eco-label and eco-brand).
Multiple regression analysis was performed to analyze the relationship between a
dependent variable and independent variables and addressed hypothesis (Coakes and
Steed, 2001; Hair et al., 1998).
A descriptive analysis using mean and standard deviation of two variables to help
researchers understand the respondent’s perception of variables and other detailed
analysis that were performed. A summary of all descriptive statistics are provided in Table II.
Notes: *p , 0.05; **p , 0.01; R square ¼ 0.109; adjusted R square ¼ 0.07; n ¼ 250
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The effect of eco-label and environmental advertisement on actual purchase behavior were
not significant at all with b ¼ 20.09, p . 0.05 and b ¼ 0:04, p . 0.05. Hypotheses H1a and
H1c are rejected.
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they will choose the environmental friendly products that are less harmful to the environment
than their alternatives.
Whitson and Henry (1996) note that only few studies (e.g. Nik Abdul Rashid, 2007; D’Souza
et al., 2006; D’Souza, 2004) have been done on consumer’s purchase behavior and
environmental labeling.
The similarity between results of this study and Nik Abdul Rashid’s (2007) study could be
seen in terms of trust in eco-label. Furthermore, both studies were conducted in Malaysia
and the findings express the Malaysian consumer’s trust in eco-label and eco-brand that
influence their intention to purchase and also their actual purchase behavior.
Nik Abdul Rashid (2007) argues that eco-label (also eco-brand in this study) is a new concept in
Malaysia not only in terms of existence but as strategies that are utilized by marketers to
influence on the purchase behavior. He also describes the lack of any critical efforts by
marketers and producers to develop the trust in eco-label and eco-brand among Malaysian
consumers and thus, whatever trust they have would likely to be accidental and this is
generated from the consumers’ interaction with environmental issues. The same assumption
may be used for this study as well. Since eco-brand and trust to eco-label and eco-brand is
found to be important in influencing green purchase behavior of consumers, it is suggested for
the green marketers and the manufacturers to pay particular attention to eco-branded products.
The implication of this study to governmental policy is providing a few guidelines for
government to formulate the green policies such as providing promotional incentives to
those green products manufacturers who are truly green in their manufacturing processes,
encouraging the public to buy products with eco-label.
Secondly, government can raise campaigns to promote public awareness of eco-labels as it
is proven in this study that trustfulness of eco-labels can exert a significant influence in green
purchase behavior of consumers. With the increase awareness on eco labels, it would help
in promoting green consumption among consumers. However, government should be
monitoring the credibility and trustworthiness of messages carried in eco-labels. Besides,
government should endeavor to inform citizens about the meaning and availability of the
new eco-labels and eco-brands and the benefits of using eco-labeled and eco-branded
products to environment (Rios et al., 2006).
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Aaker, D.A. and Stayman, D.M. (1992), ‘‘Implementing the concept of transformational advertising’’,
Psychology and Marketing, Vol. 9 No. 3, pp. 237-53.
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No. 2, pp. 19-36.
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their implications for advertising strategy’’, Journal of Advertising, Vol. 24 No. 2, pp. 71-82.
Whitson, D. and Henry, W. (1996), What’s in a Label? Environmental Issues in Product Packaging,
The Haworth Press, New York, NY, pp. 29-43.
Corresponding author
Elham Rahbar can be contacted at: [email protected]
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