Over the last few decennaries, the figure of environmental jobs such as planetary heating, H2O and air pollution, ozone depletion, fast diminution of woods, loss of species and farming area eroding are endangering the quality of human life and besides the environment ( Tanner & A ; Kast, 2003 ) . Harmonizing to a World Wildlife Fund study ( WWF ) , the natural resources that consume by the people are 20 % faster than the nature can regenerate ( Ross, 2004 ) . This status go worse because it will leads to the deficits of the natural resources in the hereafter. The chief cause of these jobs is due to the human behaviour and cultural patterns in the direct or indirect ways ( Oskamp, 2000 ) . In other words, homo is the cardinal beginning or chief solution to these jobs ( Gardner & A ; Stern, 2002 ) , in the association with the development of the efficient engineerings ( Oskamp, 2000 ) .
Harmonizing to the United Nations Conference on Environment and Development ( UNCED ) , besides known as i??i??Earth Summiti??i?? in Rio de Janeiro in 1992, policy shapers, diplomats, scientists, media forces and non-government organisation ( NGO ) representatives from 179 states are brought together in order to accommodate the impact of human socio-economic activities on the environment which threaten the human public assistance ( UNCED, 1992 ) . Besides, docket 21 has listed out the planetary schemes for promoting the sustainable development and continuing the environment in the twenty-first century ( UNCED, 1992 ) . For illustration, in the Principle 1 of the docket 21, human being is the chief Centre of concern for sustainable development, while in the Principle 10, the engagement of all the concerned citizens is the best manner to manage the environmental issues ( UNCED, 1992 ) . This conference has been acknowledged and emphasized that homo should working together in order to work out the environmental jobs. Besides, there are 45000 participants from 200 states are gathered in the United Nations Climate Summit in Copenhagen in December 2009, and convince of the demand for a new planetary understanding on clime alteration ( COP 15, 2009 ) . US, China, Brazil, India and South Africa had take action to accomplish the mark to restrict planetary heating to no more than 2i??i??C ( COP 15, 2009 ) .
Malaysia had allocated a immense sum of money in order to guarantee a balance between development and environmental sustainability. For illustration, in the Ninth Malaysia Plan ( 2006-2010 ) , authorities allocated RM510 million for cleansing, continuing and fancifying rivers ; RM530 million for coastal direction ; RM200 million for re-afforestation ; and another RM70 million for the direction of wildfire and protected countries ( Unit Perancang Economi, 2006 ) . In the Tenth Malaysia Plan ( 2010-2015 ) , due to the progressively demand in green merchandises and services, Prime Minister announced the constitutions of Green Technology Financing Scheme up to RM1.5 billion to heighten the application of the green engineering in the production of goods and proviso of services.
Since the environmental jobs are acquiring more serious, consumers have increase in the environmental consciousness and concerned about the impact of their day-to-day wonts on the environment ( Krause, 1993 ) . Some consumers are translated their concern into the pro-environmental behaviours such as recycling, energy economy and green purchase behaviour ( Kim, 2002 ; Kim & A ; Choi, 2005 ) . Consumers with a higher degree of environmental concern or green consumers will be more likely to buy green merchandises ( Shabecoff, 1993 ) . Green consumers refer to the consumers who are concern about the environmental issues and their premier consideration in buying a merchandise or service is environmental factors ( Soonthonsmai, 2007 ; Hartano, 2008 ) . As the consequence, green merchandise market spread outing at a singular rate ( Schlegelmilch, Bohlen & A ; Diamantopoulos, 1996 ) . Green merchandises refer to the goods or services that do non hold any negative environmental effects and it can be recycled or conserved ( Shamdasani, Chon-Lin & A ; Richmond, 1993 ) . The term of green merchandises, ecological merchandises and environmental-friendly merchandises are used interchangeably ( Shrum, McCarty & A ; Lowrey, 1995 ) .
i??i??Greeni??i?? is going an of import beginning for competitory advantage for concerns worldwide due to the progressively demand in the green merchandises and services. The tendencies of sustainable development are driving many concerns to develop and advance the green merchandises. For illustration, retail merchants such as Tesco, Metro and Wal-Mart are actively puting the high environmental criterions for their providers, because they realized that there is no hereafter in being seen as the unsustainable ( Thean & A ; Elaine, 2010 ) . Hohnen ( 2010 ) stated that concerns that traveling green or accommodate the environmental-friendly attack is a smart direction. The jobs emerge when consumers are loath to pass on the environmental-friendly merchandises which are more expensive as compared to the less friendly merchandises ( Environment Leader, 2009 ) . It is because they believe that the values derived from the producti??i??s properties are much lesser than what they pay for the green merchandises.
1.2 Background of the Research and Research Question
Environmental issues such as planetary heating, ozone depletion, H2O and air pollution and loss of species had threaten the environment and impact the ways human being unrecorded ( Barber, Taylor & A ; Strick, 2009 ; Tanner & A ; Kast, 2003 ) . Global warming which is caused by the combustion of the fossil fuels is the most serious issues that need to be solve by the human existences ( Cheah, 2009 ) . This, in bend causes the concerns and consumers face the challenge to continue and protect the environment ( Gan et al. , 2008 ) . Harmonizing to Laroche, Bergeron and Barbaro-Forleo ( 2001 ) , consumers have become more environmental consciousness and will see the impact of their buying behaviour towards the environment. As a consequence, more and more consumers are willing to pay monetary value premium for green merchandises and services ( Mandese, 1991 ; Laroche, Bergeron & A ; Barbaro-Forleo, 2001 ; Bazoche, Deola & A ; Soler, 2008 ) . Within this context, the concerns have been emerged to follow the environmental-friendly attack such as develop the green merchandises and cut down packaging in order to better company fight and derive more market portion ( Hastak & A ; Mazis, 1995 ; Fraj-Andri??i??s, Martinez-Salinas & A ; Matute-Vallejo, 2009 ) . Customer pro-environmental buying behaviour had motivated the net income goaded houses to advance green merchandises as a beginning of competitory advantage and beef up the company image ( Tan & A ; Lau, 2010 ; Banyt? , Brazionien? & A ; Gadeikien? , 2010 ) . i??i??The Earth is acquiring weaker and weaker every 2nd but non all of us are making our portion to salvage iti??i?? ( Alam, 2007, p. 1 ) . If human existences still do non responsible to conserve the environment, environmental issues will acquiring more and more serious. For illustration, high temperature will be result in the rise of sea degree and human wellness will be affected due to the low quality of the H2O. So, authorities, non-government organisations and community should working together in order to cut down environmental debasement.
Previous surveies are more interested with the attitude of the consumers towards the green merchandises ( Minton & A ; Rose, 1997 ; Tan & A ; Lau, 2010 ; Gan et al. , 2008 ; Kim & A ; Choi, 2005 ; Hi??i??Mida, Chi??i??vez & A ; Guindon, n.d. ) and purpose to buy green merchandises ( Bui, 2005 ) . All of which present the findings on the factors that influence the consumers to buy environmental-friendly merchandises. Harmonizing to Schlegelmilch, Bohlen and Diamantopoulos ( 1996 ) , environmental consciousness will impact the consumers in the purchase determination of the green merchandises. In add-on, consumers with the environmental cognition will be given to show positive attitudes towards the environment ( Antil, 1984 ) . Besides, old research workers are more focal point on the cleavage and profile of the green consumers based on the demographic factors such as age, gender, instruction, income degree and societal position ( Banyt? , Brazionien? & A ; Gadeikien? , 2010 ; Diamantopoulos et al. , 2003 ; Rice, Wongtada & A ; Leelakulthanit, 1996 ) . This means that their surveies are more focal point in the pro-environmental behaviour or environmentally witting consumer behaviour. The theories that applied by the old research workers in depicting consumer behaviour developed from the original Fishbein ( 1963 ) consumer expectancy-value behaviour to the theory of reasoned action ( TRA ) ( Ajzen & A ; Fishbein, 1980 ) , and eventually to the theory of planned behaviour ( TPB ) ( Ajzen, 1991 ) .
Monetary value is one of the most of import constituents in selling and consumer buying determination ( Litchtenstein, Ridgway & A ; Netemeyer, 1993 ) . However, none of these surveies focuses on the degree of monetary value that consumers are willing to pay for green merchandises. They would instead interested with the consumeri??i??s attitude or behaviour during the purchase determination. Although old surveies had provided the penetrations into factors that influence consumers in pro-environmental purchase behaviour, it could non be confirmed that the consumers are purchase the green merchandises in the world ( Gan et al. , 2008 ) . Harmonizing to Kalafatis et Al. ( 1999 ) , some consumers may claims that they are green due to the societal credence and equal influence. In add-on, old survey indicated that consumers are willing to pay monetary value premium for green merchandises in order to protect the environment ( Mandese, 1991 ; Laroche, Bergeron & A ; Barbaro-Forleo, 2001 ; Bazoche, Deola & A ; Soler, 2008 ) . But in world, they may non purchase the green merchandises because the monetary value is more expensive than conventional merchandises.
This survey is purposes to research the degree of monetary value that consumers are willing to pay and the monetary value decision-making procedure of the consumers. This survey can make full up the research spread left by old surveies as monetary value is one of the most of import constituents in the capitalist economy market. It is because monetary value premium is non good analyze by the old research workers. Besides, old surveies are more focal point on the developed states such as Europe and North America ( Rice, Wongtada & A ; Leelakulthanit, 1996 ) and United States ( Vlosky, Ozanne & A ; Fontenot, 1999 ) , while this survey is conducted in Malaysia which is a underdeveloped state. In add-on, due to the exploratory in nature of this survey, convergent interview will be conducted to place of import factors that influence consumeri??i??s monetary value decision-making towards the green merchandises and services. The of import factors identify in the literature and convergent interview will be used to build the research model. The research so proceeds to the quantitative informations by administering questionnaires to the consumers who are doing the family determinations. SPSS will used to analyse quantitative informations. Therefore, the research inquiry for this survey is listed as below:
i??i??What degree of monetary value that consumers are willing to pay for green merchandises and why the consumers are willing to pay the peculiar monetary value for the green merchandises? i??i??
1.3 Research Aims
The research objectives for this survey are listed as below:
? To analyze the determiners that influences the consumersi??i?? willingness to pay for environmental-friendly merchandises.
? To analyze the degree of monetary value that consumers are willing to pay for environmental-friendly merchandises.
1.4 Significance and Justifications for the Study
Over the last few decennaries, environmental issues such as planetary heating, depletion of stratospheric ozone bed, H2O and air pollution and acid rain had threaten the environment and human life ( Ramlogan, 1997 ; Tanner & A ; Kast, 2003 ) . Businesss had realized the importance of advancing the green merchandises in the market in order to continue and protect the environment. As a consequence, i??i??greeni??i?? is going an of import beginning for competitory advantage for concerns worldwide. However, bulk of the consumers claims that green merchandises are much more expensive than the conventional merchandises. So, this survey is important to understand the degree of monetary value that consumers are willing to pay for the green merchandises and why the consumers are willing to pay the peculiar monetary value for the green merchandises. There is limited survey that has addressed on the issue of monetary value in the selling of green merchandises particularly in Malaysia, but monetary value is one of the most of import constituents in the capitalist economy market. Therefore, this survey will heighten the theoretical apprehension on monetary value decision-making procedure of the consumers toward the buying of green merchandises by make fulling up the research or knowledge spread left by old surveies. It is because old surveies are more interested in the consumeri??i??s attitudes or behaviours toward the green merchandises. So, this survey is significance to the sphere of green selling as it extends the cognition base that presently exists in that field. In other words, this survey can lend to the new cognition development.
Besides, this survey would be good to the concerns or first movers that want to follow the environmental-friendly attack. It is because they can hold a better apprehension of the consumeri??i??s pro-environmental ingestion tendency and develop the specific pricing schemes in order to advance the green merchandises more efficaciously. The findings of this research can assist concerns to cut down the degree of ambiguity and hazard in puting the monetary value into the green merchandises and services market. Furthermore, a profile of consumers who are willing to pay more for the environmental-friendly merchandises can be identified. In this manner, the chance of being fail in following the environmental-friendly attack will be minimized. On the other manus, this survey can profit the authorities indirectly by supplying the necessary information on the willingness of the consumers to pay for green merchandises. So, the utile advice or recommendation about the pricing scheme of the green merchandises can be given to the concerns.
Furthermore, this survey would be good to the society because acquiring more and more concerns follow the environmental-friendly attack because concerns are more understand about the willingness of the consumers to pay for the different green merchandises. As a consequence, consumers will hold more picks in buying the green merchandises and services. Besides, the negative impact on the environment will be reduced because there is an increasing in the pro-environmental ingestion. Government does non necessitate to apportion a immense sum of money in continuing the environment such as cleansing and fancifying the H2O, deforestation and direction of wildfire and protected country.
Last but non least, this survey can supply the baseline information for the hereafter research workers on the recent degree of monetary value that consumers are willing to pay for green merchandises. This survey provides the farther penetrations about the pro-environmental ingestion and utile deductions on how to advance sustainable development.
1.5 Research Scope and Limitation
This survey is focal points on the degree of monetary value that consumers are willing to pay for different green merchandises and the monetary value decision-making procedure of the consumers. A mix method attack which is the combination of qualitative and quantitative informations will be used due to the exploratory in nature of this survey. First of all, convergent interviews will be conducted to place the of import variables that influence the consumeri??i??s monetary value decision-making procedure towards the green merchandises and services. The interviewees who make the family determination will be chosen in the Malacca countries and consists of different races such as Malay, India and Chinese. Then, the research will continue to quantitative informations aggregation attack by utilizing the questionnaires. The of import factors identify in the literature and convergent interview will be used to build the research model. SPSS will used to analyse qualitative informations.
1.6 Definition of the Key Footings
Cardinal Footings Definition Beginning
1 ) Monetary value Refer to the i??i??sum of all the values that clients give up in order to derive the benefits of holding a merchandise or servicei??i?? . ( Kotler et al. , 2007 )
2 ) Environmental attitudes Refer to the i??i??cognitive judgement towards the value of environmental protectioni??i?? . ( Lee, 2009, p. 88 )
3 ) Demographics Refer to the i??i??study of human populations in footings of size, denseness, location, age, gender, race, business and other statisticsi??i?? . ( Kotler et al. , 2007 )
4 ) Environmental cognition Refer to the sum of information that an person know which is related to the environmental jobs. ( Chan, 1999 )
5 ) Environmental concern Refer to the i??i??the consciousness of a individual about the environmental jobs, his or her support efforts for work outing them or the degree of his or her willingness for lending such attemptsi??i?? . ( Albayrak, Caber & A ; Aksoy, 2010, p. 84 )
6 ) Environmental-friendly merchandise attributes Refer to the merchandise that is produce in the environmental-friendly ways by utilizing the natural or renewable resources and biodegradable packaging. ( Meffert & A ; Kirchgeorg, 1993 ; Peattie, 1995 )
1.7 Organizational of Research
This research consists of 5 chapters which include debut, literature reappraisal, research methodological analysis, informations analysis and treatments, decision and deductions. The content for each chapter are mentioned as below:
Chapter 1: Introduction
This survey is aim to research the degree of monetary value that consumers are willing to pay for the different green merchandises and services and the monetary value decision-making procedure of the consumers. In chapter 1, researcher briefly explains the historical development of the green selling and the jobs with the issue under survey. The debut is chiefly about the overview of green selling, green merchandises and green purchase behaviour. Besides, background of the research, research inquiry and research aim will besides be discussed in chapter 1. The research aim is the chief intent that research worker want to accomplish in this survey. In add-on, chapter 1 includes significance and justification for the survey, research range and restriction and definition of the cardinal term. So, reader can hold a basic apprehension on why the survey is so of import and how this survey can make full up the cognition spread left by old research workers.
Chapter 2: Literature Reappraisal
Chapter 2 is the most of import portion in the research study which includes debut, theory, dependent variable, independent variables and the sum-up. It is because all the information is derived by the old research workers. In other words, this chapter is discoursing the bing cognition on the green selling. The information is gained from the secondary informations such as on-line database ( emeraldinsight.com and proquest.com ) , magazines, newspapers, and others. Besides, this chapter provides the basic construct on developing the theoretical model.
Chapter 3: Research Methodology
Research methodological analysis is a set of processs that applied by the research worker in carry oning this survey. The sub-title in this chapter includes research model development, research methods and instrument, trying program, informations aggregation method and informations analysis method. In this chapter, theoretical model will be developed based on the literature reappraisal and the preliminary interview. Then, the method used to analyze the research model and how to accomplish the research aims will be discussed in this chapter. Furthermore, this chapter besides described the population in carry oning this research and ways to roll up the information. Finally, type of package and statistical trial that need to utilize in this survey will besides be discussed.
Chapter 4: Datas Analysis and Discussions
Data analysis and treatments is the procedure of interpreting the informations gathered from the questionnaires and interview to the utile information. In this chapter, SPSS and NVIVO are used to analyse the quantitative and qualitative informations severally. Besides, the relationship between the dependant and independent variables that developed in the theoretical model will be discussed.
Chapter 5: Decision and Deductions
Chapter 5 is all about the decision that draw from the survey after all the informations have been analyzed by the research worker. Besides, restriction and recommendation for future research will besides be discussed in this chapter.