The Influence of Demographic Factors and Values on the Willingness to Pay More for Green Products
"THE INFLUENCE OF DEMOGRAPHIC FACTORS AND VALUES ON THE CONSUMERS’ WILLINGNESS TO PAY MORE FOR GREEN PRODUCTS”
I.INTRODUCTION 1.1. Research Background Nowadays, people have become more aware of their environment. They try to slow down the process of global warming in many different ways. One of the efforts to slow down the process of global warming is that now people try to create, produce, and market the environmental-friendly products or, also known as, green products. People who pay attention to green products are called green consumers. According to Rodriguez and Ibeas (2006), “Green consumers” are those who care about the environmental attributes, and are willing to pay a premium for products manufactured in environmental-friendly production processses. As a result, green movement has become trend of consumer behavior. This movement creates the green marketing actions in the business world. Zhang and Zhang (1999) state 2 definitions of green marketing, the first is in the narrow sense and the other in the broad sense. "Green marketing" in the narrow sense means the special way of marketing established on the basis of conventional marketing and targeting on “green goods”. And in the broad sense, "green marketing" means a whole set of ideas, methods and process to realize marketing goals of enterprises. Zhang and Zhang (1999) also state that the driving force behind the green marketing is the market demand of "green consumption" as its core, and the objectives are to spontaneously protect the environment and to promote efficient use of by enterprises. These would be achieved by means of designing, fabricating, packing, selling and recycling "green products". Considering the importance of green marketing and its issues, this study tries to find out the profile of green consumers that are willing to pay more for green product in Indonesia. Empirical study in this area is still considered rare. The previous study of Laroche et al. (2001) identified several
I.INTRODUCTION 1.1. Research Background Nowadays, people have become more aware of their environment. They try to slow down the process of global warming in many different ways. One of the efforts to slow down the process of global warming is that now people try to create, produce, and market the environmental-friendly products or, also known as, green products. People who pay attention to green products are called green consumers. According to Rodriguez and Ibeas (2006), “Green consumers” are those who care about the environmental attributes, and are willing to pay a premium for products manufactured in environmental-friendly production processses. As a result, green movement has become trend of consumer behavior. This movement creates the green marketing actions in the business world. Zhang and Zhang (1999) state 2 definitions of green marketing, the first is in the narrow sense and the other in the broad sense. "Green marketing" in the narrow sense means the special way of marketing established on the basis of conventional marketing and targeting on “green goods”. And in the broad sense, "green marketing" means a whole set of ideas, methods and process to realize marketing goals of enterprises. Zhang and Zhang (1999) also state that the driving force behind the green marketing is the market demand of "green consumption" as its core, and the objectives are to spontaneously protect the environment and to promote efficient use of by enterprises. These would be achieved by means of designing, fabricating, packing, selling and recycling "green products". Considering the importance of green marketing and its issues, this study tries to find out the profile of green consumers that are willing to pay more for green product in Indonesia. Empirical study in this area is still considered rare. The previous study of Laroche et al. (2001) identified several