Green Product Purchasing Behavior of Young Thai Consumers

Introduction and Background

In the modern-day business community, organizations face an increasingly complex environment marked by an incremental emphasis on consumer benefit, environmental friendliness, and employee motivation. One of the most pressing demands placed on organizational leaders is the satisfaction of customers' evolving needs and wants.

Throughout the past decades, consumers have undergone a fundamental transformation. They have shifted from a passive force that purchased whatever manufacturers produced into an active force that dictates what items should be manufactured and sold. As customers have grown more demanding, elements such as product quality or high-quality service are no longer sufficient to attract and retain them. It is now necessary to understand customers deeply, to ensure that organizations create value through the purchase, and to simultaneously meet the demands of as many stakeholder categories as possible.

In order to comply with these needs, economic agents have placed incremental emphasis on a multitude of marketing endeavors. This research project is one such endeavor, aimed at recognizing the perspectives and behaviors of Thai consumers regarding green products. The research question emerged from the intersection of two distinct areas of contemporaneous interest: customer understanding and green products. In a context in which environmental threats are increasingly common, both the business community and consumers are striving to become more environmentally responsible (Johri and Sahasakmontri, 1998). This materializes in a series of efforts, including the replacement of older technologies with newer and more energy-efficient ones, sustained efforts to reduce greenhouse gas emissions, and the creation of green products.

The market for green products is still emergent and intriguing. On one hand, it is perceived as the necessary solution for implementing a healthier lifestyle — not only for the environment but for the population as well. On the other hand, it is perceived as expensive and more of a trend than a genuine necessity. In order to get to the bottom of this debate, it is necessary to interact directly with customers and comprehend their views, including their perspectives and the criteria that influence their buying behavior.

During this decade, individual consumers' purchasing decisions are no longer pegged strictly to product quality. A series of social and environmental factors have emerged to influence whether a client finalizes a purchase (Menon et al., 1999). Green marketing has been growing in popularity globally. Within the western hemisphere, for instance, green marketing has been gaining traction since the 1980s (Ottman et al., 2006). According to a study conducted in 1996 on European countries, 88 per cent of German consumers were prepared to switch to green products. Similarly, in Italy and Spain the percentages were 84 and 82 per cent respectively. Within the United States, an estimated 52 million households were believed to be included in the green market (Wasik, 1996). The trend that emerged in the western hemisphere is now gaining more popularity globally, with Asian economic agents and individual consumers placing greater emphasis on environmental stability. Within the business community, this has materialized in the necessity for companies to develop and implement environmentally friendly strategies. "While products and packaging will need to be brought into line with escalating consumer and regulatory demands, companies need to be seen as environmentally responsible. In the age of environmental consumerism, the perception is reality" (Ottman et al., 2006).

In the context of the Asian continent, a major threat to environmental stability is posed by emergent industry, which generates alarming levels of pollution. The rapid growth in industrial activity remains the root cause of pollution within the Asian region. Carter and Narasimhan (2000) expected that the current decade would bring about enhanced consumer awareness of environmental issues.

In Thailand specifically, environmental threats encompass a wide range of problems such as deforestation, wildlife trade, soil erosion, and air and water pollution — all relevant to green purchasing (WWF, 2010). Deforestation has resulted from attempts to convert forested land into agricultural land, causing Thailand's forest cover to drop from 53% in 1961 to 25% by 1998. Deforestation also generates a tremendous impact on global warming. As a result of rapid industrial expansion, high levels of air and water pollution have been registered: approximately 33 per cent of Thailand's water sources are categorized as having poor quality, and Thailand is ranked among the last Asian countries based on the amount of fresh water available per capita (WWF, 2010).

In this context, the Thai government and the Thai people have commenced paying greater attention to the effects of environmental problems. People make an effort to buy products that are environmentally harmless and, through them, to minimize the negative environmental implications of consumption. A first effort in this direction was the introduction of the Thai Green Label Scheme in 1993 and its formal launch one year later (Green Label Thailand, 2010). The scheme supports the development of the green products sector by introducing information for consumers and standards for businesses.

In order to satisfy green consumers, a product must be produced and delivered in a manner that is less harmful to the environment (Grankvist et al., 2007). These products not only respond to consumers' needs and wants but also generate long-term sustainability for the environment (Follow and Jobber, 1999). Beyond that, the consumer's choice of environmentally friendly products presents green producers with an opportunity to displace less pro-environmental products from the market (Thogersen, 2002).

On the other hand, Radman (2005) found that green products are more expensive than conventional products, leading consumers to purchase alternatives and treating price as a significant barrier. Economic agents themselves face several barriers in going green. For instance, replacing current technologies with more environmentally friendly ones is estimated to generate cost increases. Implementing and maintaining a green system is significantly more complex than doing so for a traditional system. Organizations are also limited by their lack of or reduced expertise in green operations. Finally, implementing a green system is associated with losses in operational productivity and profitability (Bernowski, 2008).

Research Questions

To guide this dissertation, five research questions were identified:

1. What is the perception of young Thai consumers regarding environmental stability?
2. What is the level of environmental consciousness revealed by young Thai consumers?
3. Does environmental consciousness impact the green product purchase decision?
4. What are the most important reasons supporting the green product purchase decision?
5. Which are the most important factors driving the decision to purchase green products?

Research Aim and Objectives

The aim of this research is to examine the green-purchasing behavior of young Thai adult consumers and to identify the factors that influence it. This research also aims to help marketers understand how consumers make choices in the purchase of green products and to offer recommendations for developing marketing strategies for green products in Thailand.

In order to complete this aim, the following research objectives must be met: (1) the assessment of green marketing in Thailand; (2) the critical identification of factors and criteria that impact the decision to purchase green products among young Thai individuals; (3) the thorough analysis of Thai consumer perspectives through a questionnaire; and (4) the issuing of valid recommendations for green businesses on how to better respond to customers' needs, wants, and characteristics.