GREEN CLOTHING AND ECO-FASHION: A GROWING SUSTAINABLE MARKET FOR SME’S.
Naila Aaijaz, University Malaysia Kelantan, Malaysia naila@umk.edu.my
Mohamed Dahlan bin Ibrahim, University Malaysia Kelantan, Malaysia dahlan@umk.edu.my
ABSTRACT
Objective – This study attempts to gain knowledge about consumer attitude towards organic clothing and organic clothing stores (retailers) and to see whether there is any potential this might have for young entrepreneurs. Here we have tried to evaluate the current state of consumer awareness and knowledge in Malaysia. Design/methodology/approach - The survey was conducted using mall-intercept personal survey whereby potential respondents were approached and were requested to fill up the likert-based questionnaire.
The questionnaire was designed especially to elicit consumers’ buying pattern and their views on organic clothes. Consumers were asked open frame questions on their agreements and disagreements. Reliability tests were conducted to check the internal consistency of measurement items and the Cronbach’s alpha was calculated to show that there was high correlation between the items. Pearson correlation tests were also used to examine the individual relationships between the independent variables and the dependent variable (intention to buy organic clothes), and subsequently Multiple Linear regression (MLR) tests using stepwise regression method were conducted to find which determinants could explain the intention to purchase organic clothes. This is just a basic research done regarding consumer’s attitude and awareness towards organic clothing and how it enhances the growing market for Small and Medium Enterprises. The local eco-entrepreneurs also find taking up a social responsibility to create awareness and encourage consumers to buy eco- friendly products. Findings – The data obtained from the survey were analyzed using Demographic Analysis of respondents, Chi-Square, ANOVA and Correlation Analysis to examine possible results that brings to the understanding of consumer knowledge, belief, perceptions and willingness to purchase and wear organic clothes. Research Limitations – the sample was restricted to a single geographic area in Malaysia and further the number of respondents may not portray the population responses with regard to organic clothes consumption. Practical implications – As Malaysians become more concerned about environment, the green consumer category will continue to grow. It is important for businesses to recognize this phenomenon and capitalize on the emerging market for environment friendly goods and services. Green Entrepreneur promotes the welfare of local people, hence he can be re-designated as Social Entrepreneur
Keywords: green consumers, consumer power, environment, SME’s, social entrepreneurship, Malaysia, business idea, eco tourism, organic clothing.
1.
INTRODUCTIONWe spend a lot of money on clothes, often driven by the desire for something fresh, new and trendy. We want to look young, attractive, and successful. Clothes are now becoming increasingly disposable. The EPA estimated in 2003 that there was 10 million tons of clothing and other textile waste thrown away. Clothes that come home in bags, get worn a few times, and then a shoved to the back of the closet and forgotten. To address this problem, some entrepreneurs are rethinking the clothes they are making and looking for ways to waste less, recycling existing clothes to give them a new life.
Wearing something green is a new fashion statement. Organic cotton is a major improvement over conventionally grown cotton, reusing clothing we already have is even greener. In the U.S. events are held where people bring their old clothes, swap them, or modify them at sewing stations with help from skilled workers. The old worn-out dresses are trimmed, cut, re-sewed, re-mend, and re-fashioned. This concept is spreading throughout the globe now.
Many people have drawers and closets full of old T-shirts that they don’t wear but also don’t want to throw away. Businesses are finding creative new ways to recycle such T-shirts to make a quilt, hand-bags and purses. Opportunities for recycled clothing are tremendous now.
There are huge lot of old discarded clothes which can be re-invented at a green clothing business unit. This unit can be a Small and Medium Enterprise (SME) set up by a focused entrepreneur. This is how he can become a Green Entrepreneur in the clothing business.
Why do consumers go ‘Green’? And what empowers consumers to select Green/organic Clothing items? Consumers’ all over the world are facing a lot of changes in their consumption pattern in the last two decades. Demand towards products is driven by convenience and habit which in turn is hard to change. But consumers have scanty knowledge of the link between their consumption choices and growing market for local businesses as well as environmental consequences. Malaysia which is passing through the intermediary stage of development is facing with tremendous challenge in ensuring sustainable business development and environmental consciousness. The increase of the environmental consciousness has had a thoughtful effect on consumer behaviour, with the green product market expanding at a remarkable rate (Bhaskaran et al 2006). Therefore in the last few decades there has been an increase in production and consumption of organically produced products in the US and it has filtered in the Asian countries as well. Organically produced products are seen to have less impact on the environment.
Common beliefs and attitudes of the consumers and their awareness on environmental issues (Government awareness programmes) is basically the main reason. The western countries market has also done a broad generalization regarding demographic characteristics of green customers which has an impact on their buying behaviour. But an empirical study done here is ideal to evaluate the reasons on the whole. Every entrepreneur and marketer knows that material goods and services serve multiple purposes to consumers. Purpose is to satisfy basic needs such as subsistence and protection. In the last two decades consumers have become more environment and health conscious. The trend has led to more independent businesses and entrepreneurial ventures focused towards green consumers. In clothing products, the
environmental friendly clothing is termed as “Organic” clothing and is considered healthy (Chinnici et. al, 2002).
The product information is more important to a green consumer rather than a catchy advertising campaign. Even the hospitality industry with ecotourism falls under this banner.
Green consumers lead to eco-friendly businesses and thereafter create and develop a new community of social entrepreneurs. Hence we find a paradigm shift from eco-entrepreneurs to social-entrepreneurs
In December 2000, the National Organic Standards Board of the U.S. Department of Agriculture (USDA) established a national standard for the term “organic”. Organic Clothing is defined by how Clothing should be produced without the use of sewer-sludge fertilizers, most synthetic fertilizers and pesticides, genetic engineering (bio-technology), growth hormones, irradiation and antibiotics to plants. A variety of agricultural products can be produced organically, including fresh farm produce, grains, meat, dairy, eggs, and processed clothing products. “Organic does not mean “natural”. There is no legal definition as to what constitutes “natural” Clothing. However, the Clothing industry uses the term “natural” to indicate that a Clothing has been minimally processed and is preservative-free. Natural clothing can include organic clothing, but not all natural clothing are organic in nature.
Americans have become increasingly concerned about environment. Studies have shown that almost 62% to 77% Americans have joined the environmental movement from 2004-2006 (Can be seen in the Sierra Club membership). More people are making their homes energy efficient, driving more fuel efficient cars, focusing more on recycling, and buying products that are healthier and less harmful to society and the environment. This has given boost to independent businesses and state owned businesses dealing in environment friendly products.
Local businesses focusing on green products have emerged as a growing business sector.
Significance of ‘Green’ in Clothing business:-
• Eco Fabrics / Organic Clothing
For the last few years humans have realized the disastrous effects of plastic bags on the planet. Plastic bags have been stuffed in our lands via landfills, in our animals – plastic bags and plastic pieces were found in the stomach of several cows in India and have even managed to form an island – there is a large mass of discarded plastic waste floating in the Pacific Ocean too.
A lot has been done in an effort to get rid of plastic bags and bottles. Many corporate organizations and governments have attempted to them. But at the end of the day it boils down to the individual, not regulations, that will solve this problem (or any other for that matter, but that’s another topic for another day!) As an individual we have the sole right to choose. And our decisions can make the difference to the planet, one bag at a time.
So what’s the alternative? What constitutes an “eco bag and eco clothing”? It is made up of Eco fabric. Eco fabrics have always been around in the form of cloth and other sustainable materials that were used in ancient times. Fortunately a number of hip, fashionable and earth-
friendly people have come on strong to save their planet and oceans without compromising on the cool factor. They patronize eco friendly products and propagate the same.
Organic clothing is made of all-natural, non-synthetic materials and is a part of the organic agriculture movement. This movement emphasizes farming and processing that work with nature and help minimize air, soil and water pollution. Organic clothing materials come from plants that have not been radiated genetically modified or treated with synthetic or chemical pesticides. Organic Clothing fabric may be processed in any of the following ways:-
1. Natural and Sustainable Fabric like Organic Cotton, Organic Wool, Organic Silk, Hemp
2. Recyclable or renewable material like Bamboo, soy and Tencel, wood pulp product
3. "POP," fabric made from recycled plastic soda bottles
• Eco Fashion
Eco-Clothing and Eco-Fashion is devoted to the future of clothing and textile design. It showcases and supports designs which do not only contemplate cut, form, and drape, but also the garment's social and environmental impact, from the cultivation of its fibers to its use and disposal. Globally Labour Laws and Environment Protections Laws have to be adhered to in dealing with Eco-Fashion and all Eco-products. Recycled products are also used in Eco- fashion i.e. re-invent clothes to reduce waste.
In today’s fashion era, designers all over the world are making a marked statement with Eco- fashion or Green fashion, making clothes that best suit the environment. These 100% organic fabrics are grown without pesticides or herbicides made from synthetic products. Not only this, these 100% organic fabrics are treated without chemical dyes or bleaches. Today clothing made from organic fiber’s such as organic cotton, hemp, soy silk, or bamboo are largely in fashion and widely used. For example Eco fabric is made with hemp plant? Hemp plant is produced without any insecticide and this plant requires very little water to grow. The plant also doesn’t require any artificial fertilizers or synthetic herbs to grow quickly and densely. Not only this, the long and sturdy fibers of the plant make it last much longer and durable in nature.
The organic hemp plant has another characteristic too. It absorbs equal amounts of CO2 during its growing phase that will be released later when the plant is burnt for fuel or other purposes, and does not contribute to the green effect. However, due to organic properties of this plant, it is possible to substitute hemp for other material, thus reducing the effect of water pollution to a large extent. A non-combustible and non-toxic product in nature, hemp if cultivated in large quantities helps in conservation of natural resources.
• Green washing
It means the fibers must be grown at certified organic farms, and they can’t be blended with synthetics or dyed or bleached with chemicals.)
• Organic Dry Cleaning
It's likely that our drycleaners use PERC, a petroleum-based solvent that is a known carcinogen. Drycleaners sometimes use DF-2000, a hydrocarbon solvent that is harmful to the environment. If one has intends to look for a clothing care process that makes less of an ecological impact, they can try green cleaning which is CO2-based, or opt for steam cleaning their clothing. Wet cleaning, a water-based process, is PERC-free but is not safe for all fabrics.
2.
OBJECTIVES of THE STUDYThis study attempted to gain knowledge about consumer attitude towards organic Clothing products consumption and to see whether there is any potential this might have for changing their behaviour. The rationale for carrying out this study is that consideration for the environment could come only from well informed citizens who are aware of, and fully committed to their rights to a quality health and environment. Here we have tried to evaluate the current state of consumer awareness and knowledge in Malaysia.
The specific objectives of the study are –:
1. To gain knowledge on the local consumers awareness and attitude towards organic Clothing – consumers are among those who :-
i. Have made their purchases along with organic clothing products.
ii. Consumers who never purchased any organic products
iii. Those who have been dedicated Green Consumers i.e. organic clothing buyers and consumers for a long time.
2. Investigate the reasons which may influence the intention of buying organic Clothing products.
3. Analyse how Green consumers “promote” Green Markets i.e. environment friendly product markets.
4. How “Green consumers” lead to the birth of “Green Entrepreneurs” who finally show signs of building a “Social Entrepreneur’s” profile.
3.
LITERATURE REVIEWAs early as 1965, consumer’s attitude towards pesticide use in farms was explored (Bearler and Willitis, 1968; Sachs et al., 1987). Methods used to explore these topics have been varied, included mail and phone surveys. According to the research, there are number of reasons that consumer choose to purchase organic Clothing products, as well as some barriers. Reasons of buying would be grouped according to general and commodity-specific concerns (Yiridoe et al. 2005). Examples of concern include food safety, human health, environmental impact, whereas commodity attributes included taste , freshness and packaging (Yiridoe et al., 2005). Surveys have identified additional positive attributes that consumer associate with organic food products which include improved taste (Davies, 1995), they are better for environment (Lea and Worsley, 2005).
Empirical evidence shows that consumer’s difficulty in locating environmentally directed products is partly due to lack of information (Brown and Wahlers 1998). Research related to consumer attitudes and preferences for organic products shows that these products are
perceived as healthier than conventional alternatives (Chinnici et al., 2002; Harper and Makatouni, 2002). Consumers do not always buy sustainable products as consequences of environmental concern or to benefit the community or due to personal beliefs but mainly to give priority to health, to be part of the social group, to distinguish from others and to accomplish the need to try out new technologies (Vermier and Verbeke, 2004).
To the best of our knowledge very limited research has been done pertaining to consumer attitudes towards organic product in Malaysia, and what effect it will have on the up-coming businesses and the transformation of environmental friendly businesses to finally show concern for the society at large. Hence there is an advent of Social Entrepreneurs. Love for nature and environment will lead to care for the society as well. We also see the consumer’s knowledge on government action towards healthy and organic products is on a very limited scale. The results could be used by the government, budding entrepreneurs and NGO’s (Non Governmental Organisations) to tap a business opportunity, plan marketing strategies, design proper sales channel and target it to these group of consumers. With awareness creation by the government sector this group of consumers will increase.
Over the last few decades many researchers in Malaysia have studied the SME’s in Malaysia in different fields of interest. For example micro-credit (Sudin and Bala, 1994; Moha Asri, 1997, Rosman et al. 2004) , franchise (Abu Bakar and Rohaizat, 2003), business strategy (Mohd Rafi and Syed Ihsan, 2002), human resources management (Wyer and Mason, 1998;
Hooi, 2006), and information technology (Moha Asri, 2002; Foong, 1999). The environment
‘green’ business related researches have been done in a qualitative way (Mohd.Rafi, 2010) and few researches on Green consumers and Organic Food (Naila Aaijaz, Mohd. Dahlan, and Ghazali, 2009). But no specific research related to Organic Clothing and Eco-fashion has been done which sites this as a huge SME opportunity for young entrepreneurs.
4.
RESEARCH DESIGN (RESEARCH METHODOLOGY)The survey was conducted using mall-intercept personal survey. Potential respondents were approached while they were shopping in supermarkets located in 3 different locations within Kota Bharu. The supermarkets were Mydin (Kubang Kerian), Billion, KB Mall and Tesco.
Prior to data collection, the availability of organic clothing within these locations was confirmed. The respondents were requested to fill up the questionnaire and to return it back immediately to the researcher. As a result, a total of 104 questionnaires were collected. The questionnaire was designed especially to elicit consumers’ buying pattern and their views on organic products. Consumers were asked open frame questions on their agreements and disagreements. We used Likert Scale (1 = almost always,, 2=to a considerable degree, 3=occasionally, 4=seldom and 5=never). This is just a basic research done regarding consumer’s attitude and awareness towards organic clothing and how it enhances the growing market for Small and Medium Enterprises. The local eco-entrepreneurs also find taking up a social responsibility to create awareness and encourage consumers to buy eco-friendly products. The following statistical tests were applied to analyse the data collected :-
i. Reliability tests were conducted to check the internal consistency of measurement items.
ii. Cronbach’s alpha was calculated. It’s a tool to observe reliability of scales. Cronbach's alpha determines the internal consistency or average correlation of items in a survey instrument to gauge its reliability.
iii. Pearson correlation tests were used to examine the individual relationships between the independent variables and the dependent variable (intention to buy organic products).
iv. Multiple Linear regression (MLR) tests using stepwise regression method were subsequently conducted to find which determinants could explain the perception and intention to purchase organic Clothing products
Finally we arrive at the The Green Consumer Information Paradox, which supports the contention that perceptions towards organic products depict the strongest relationship with the buyer’s intention to buy organic clothing followed by the buyer’s belief that by using organic product he is contributing to preserving the environment. The researchers here contend that this environment friendly attitude of consumers will give rise to eco- entrepreneurs and subsequently will culminate into evolution and rise of social entrepreneurs.
Hence the following hypothesis:- Hypothesis formulation :-
1st Hypothesis
H0 : Customers having environmental perception intend to buy Green Clothing.
H1: Customers having environmental perception do not intend to buy Green Clothing 2nd Hypothesis
H0: Customers having environmental perception have an inclination to become green SME entrepreneurs.
H2: Customers having environmental perception do not have an inclination to become green SME entrepreneurs.
Conceptual Framework and Hypothesis formulation FIGURE – 1
5.
RESEARCH ANALYSIS and FINDINGS Reliability Test Analysis (Scale Alpha) / Cronbach’s alphaThe Reliability Test results as seen in Table 1 below reveals that the reliability are satisfactory as Cronbach’s alpha exceed 0.70 (Nunnally, 1978). Cronbach's alpha measures how well a set of items (or variables) measures a single uni-dimensional latent construct. When data have a multi-dimensional structure, Cronbach's alpha will usually be low. Technically speaking, Cronbach's alpha is not a statistical test - it is a coefficient of reliability (or consistency). Cronbach's alpha can be written as a function of the number of test items AND the average inter-correlation among the items. Below, for conceptual purposes, we show the formula for the standardized Cronbach's alpha:
Here N is equal to the number of items, c-bar is the average inter-item covariance among the items and v-bar equals the average variance. One can see from this formula that if you
increase the number of items, you increase Cronbach's alpha. Additionally, if the average inter-item correlation is low, alpha will be low. As the average inter-item correlation increases, Cronbach's alpha increases as well. This makes sense intuitively - if the inter-item correlations are high, then there is evidence that the items are measuring the same underlying construct. This is really what is meant when someone says they have "high" or "good"
reliability. They are referring to how well their items measure a single uni-dimensional latent construct. Thus, if we have multi-dimensional data, Cronbach's alpha will generally be low for all items. In this case, we run a factor analysis to see which items load highest on which dimensions, and then take the alpha of each subset of items separately.
Table – 4.1 (a) : Standardised Confirmatory factor loadings (Perception and Entrepreneurial inclination towards Green Clothing and Eco Fashion)
Construct Items Cronbach
Alpha Perception towards Environment 7 items
1. How often do you purchase clothing. -.321
2. Have you heard of Eco-Fashion clothing. .346
3. Are you aware of chemical used in apparel production .428
4. Is Eco fashion expensive .334
5. Will you consider by Eco Fashion clothing. .833
6. Will you pay more for Eco Products .673
7. Will you recommend Eco-fashion and Eco-Cleaning to your friends and family.
.682 Entrepreneurial Inclination 6 items
1. Eco fashion is sustainable market for SMEs in the future .752
2 Is Eco fashion an untapped market .685
3. If you intend to become an entrepreneur, then will you venture in the Eco Clothing and Eco Fashion world
.746
4. Eco fashion should go for mass market .708
5. Will you recommend your friends and family members to use Eco-fashion clothing and Eco-cleaning.
.752 6. Handicrafts and Recycled clothes fall into the Eco Fashion
category.
.298 Note : All factor loadings are significant at p=0.01
Table – 4.1 (b) (i) Reliability Statistics (Perception of Organic (Green) Clothing.
Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items N of Items
.690 .687 7
Item-Total Statistics Scale Mean
if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted How often do you
purchase clothing 16.955 17.521 -.321 .532 .777
Are you aware of
chemical used on apparel production
16.705 12.119 .428 .376 .648
Will you consider buying
Eco-Fashion clothing 17.345 11.624 .833 .839 .570
Will you pay more for
Eco products 17.220 11.188 .673 .779 .582
Is Eco fashion expensive 17.405 12.785 .334 .633 .674
Have you heard of Eco
fashion 16.395 10.914 .346 .561 .695
Will you recommend Eco Fashion and Eco-Cleaning to your friends and family
17.405 11.398 .682 .744 .584
Interpretation of Reliability Analysis of Perception of Organic (Green) Clothing
Cronbach’s Alpha can take values between 0 and 1. The closer to 1, the more reliable the scale of our variable. Table 4.1 (b) (i) reveals reliability are satisfactory as Cronbach’s alpha exceeds 0.69. When we examine the Corrected Item – Total Correlation we find that “How often do you purchase clothing” variable has the lowest value (-0.321) and Cronbach’s alpha for the overall scale of our variable is 0.690. If we delete this item, the Cronbach’s Alpha ‘if Item deleted column’ shows that the overall reliability will increase to 0.777. Judging from this, deletion of this item will definitely increase our reliability much higher, hence we decided to delete it and retain rest of our items. We can see that all the items are around 0.7. In general most researchers agree that 0.7 is acceptable so the scale of our
“Perception of Green Clothing” is acceptable.
Table – 4.1 (b) (ii) Reliability Statistics - Entrepreneurial inclination Reliability Statistics
Cronbach's Alpha
Cronbach's Alpha Based
on Standardized
Items N of Items
.848 .851 6
Item-Total Statistics Scale
Mean if Item Deleted
Scale Variance if Item Deleted
Corrected Item-Total Correlation
Squared Multiple Correlation
Cronbach's Alpha if Item
Deleted Should Eco-fashion go for
mass market 12.890 13.495 .708 .836 .811
Handicrafts and Recycled clothes fall into the eco- fashion category
12.890 15.656 .298 .246 .881
Is Eco_fashion an untapped
market 12.705 13.506 .685 .826 .814
Eco Fashion is a sustainable
market for SME in the future 12.580 13.280 .666 .537 .817 Will you recommend Eco
Fashion and Eco-Cleaning to your friends and family
12.705 13.174 .752 .763 .802
If you intend becoming entrepreneur, will you venture in the Eco-Fashion or Eco-Cleaning
12.255 11.196 .746 .749 .802
Cronbach’s Alpha can take values between 0 and 1. The closer to 1 the more reliable the scale of our variable. Table 4.1 (b) (ii) reveals reliability are satisfactory as Cronbach’s alpha exceed 0.80. When we examine the Corrected Item – Total Correlation we find that
“Handicrafts and Recycled clothes fall into the Eco Fashion category.” This variable has the lowest value (0.298). Cronbach’s alpha for the overall scale of our variable is 0.848. If we delete this item, the Cronbach’s Alpha if Item deleted column shows that the overall reliability will increase only slightly to 0.881. Judging from this, deletion of this item would not increase our reliability much, hence we decided to retain all our items. We can see that all the items are around 0.7. We can see that all the items are around 0.7. In general most researchers agree that 0.7 is acceptable so the scale of our “Entrepreneurial Inclination towards Eco Clothing” is acceptable.
Data Analysis
The data obtained from the survey were analyzed using Chi-Square, ANOVA and correlation analysis to examine possible results that brings to the understanding of consumer knowledge, belief, perceptions and willingness to purchase and consume organic Clothing.
All statistical analyses were using SPSS package version 16.0.
Analysis of Findings
Demographic Analysis of the Respondents
Two hundred respondents participated in the survey. Majority were male 69 %
Refer Table 4.3.1 (a) and the majority of the respondent’s (31.5%) age ranged from 25-30 years. The sample was predominantly Malaysian nationals (87%) with ethnic races - Malays (62%), Chinese (12.5%), Indians (12.5%) and Others (26%). Most respondents (37.5 %) were married and (19%%) were married with kids. 44% respondents had experienced some chronic skin illness themselves and 56% respondents’ family members had suffered from some chronic skin illness earlier. Table 4.3.1 (a) demonstrates the summary of sample demographics.
Table 4.3.1 (a) Demographic Profile of Respondents (n=200)
Items Number Percentage (%)
Gender
Male 138 69%
Female 62 31%
Nationality
Malaysians 174 87%
Non-Malaysians 26 13%
Ethnicity
Malay 124 62%
Chinese 25 12.5 %
Indians 25 12.5%
Others 26 13%
Age
18-24 50 25%
25-30 63 31.5%
31-40 37 18.5%
41-50 37 18.5%
51 and above 13 6.5%
Marital Status
Single 62 31%
Engaged 25 12.5%
Married 75 37.5%
Married with Kids 38 19%
Level of Education
Diploma 28 26.9 %
Bachelor 39 27.9 %
Master 26 25 %
PhD 12 11.5 %
Others 05 4.8 %
Occupation of respondents
Administration 15 7.5%
Academics 54 27%
Sales & Marketing 19 9.5%
Accounts 6 3%
Medical Doctor 27 13.5%
Engineer 12 6%
IT/Technical job 17 8.5%
Student 35 17.5%
School Teachers 15 7.5%
Family Income per month
RM 2000 under 76 38%
RM 2000-5000 49 24.5%
RM 5000-8000 12 6%
RM 8000-12000 50 25%
RM 12000-15000 6 3%
RM 15000 and above 7 3.5%
Respondent suffered from any skin illness
Always 0 0%
To a considerable degree 24 12%
Occasionally 48 24
Seldom 25 12.5
Never 103 51.5%
Family suffered from any chronic skin illness
Always 0 0%
To a considerable degree 12 6%
Occasionally 37 18.5%
Seldom 63 31.5%
Never 88 44%
(b) Buying Pattern of Organic Products
The respondents were asked to indicate their Apparel buying behaviour related to organic clothing. Category 1, 2 and 3 are those who never bought (non users) any of organic products and they made up to almost 87% of the sample. That is only 13% had bought and used Organic clothing in the past. It somehow signified that the sample captured unequal number of organic product users and non users. Table 4.3.1 (b).
Table 4.3.1 (b) Respondent’s category of Organic Clothing Buyer
Category Organic Clothing Buyer Frequencies Percentage
1. I have not bought organic clothing in the past and I am not thinking about buying organic clothing now.
38 19 %
2 I have not bought organic clothing in the past and I am thinking about buying in the near future.
112 56 %
3 I have not bought organic clothing in the past and I am definitely planning to buy organic clothing in the future.
24 12 %
4 I used to buy organic clothing, but I no longer buy them, I might start buying them again in the future.
12 6 %
5 I buy organic clothing on most, not all trips to the market place
14 7 %
(c) Pearson’s R Test of Correlation
Pearson correlation tests were used to examine the individual relationships between the independent variables
(i) Relationships between Perception variables of Green Clothing and intention to buy Organic products :-
The above table of correlation shows that there is significant relation existing between intend to buy eco clothing and all other independent variables as ‘r’ is ranging from 0.336 to 0.774, p=.000 i.e. p> 0.05). Therefore all variables have a positive correlation and are associated with ‘intention to buy Eco-clothing’. So we should not reject our 1st null hypothesis i.e.
customers having environmental perception will buy eco-clothing. The tests indicate that 2 independent variables ‘Will you pay more for eco-products’, and ‘Will you recommend Eco- Clothing and Eco-Cleaning to your family and friends’are significantly related to intention to buy organic products. However the strength of the relationship varies from weak to strong.
Table 4.3.1 (c)(i) shows the summary results.
(ii) Relationships between independent variables and Inclination to become entrepreneur in the Eco Clothing and Eco fashion world.
The above table of correlation shows that there is significant relation existing between intend to buy eco clothing and all other independent variables as ‘r’ is ranging from 0.354 to 0.812, p=.000 i.e. p> 0.05). Therefore all variables have a positive correlation and are associated with ‘inclination to become entrepreneurs in Eco Clothing SMEs’. So we should not reject our 2nd null hypothesis i.e. customers having environmental perception will buy eco-clothing.
The tests indicate that 2 independent variables ‘Eco-Fashion is a sustainable market for SMEs in the future, and Will you recommend Eco-Clothing and Eco-Cleaning to your family and friends’ are significantly related to inclination to become entrepreneur in the eco-Clothing and eco-fashion world. However the strength of the relationship varies from weak to strong.
Table 4.3.1 (c)(ii) shows the summary results.
Table 4.3.1 (c)
(i) Relationships between the Independent variables and Intention to buy Organic Products
(ii) Relationships between independent variables and Inclination to become Entrepreneur in the Eco Clothing and Eco fashion world.
*Correlation is significant at the 0.01 level (1-tailed)
* p value is significant at <.05
(d) Multiple Linear Regression Tests
Multiple Linear regression (MLR) tests using stepwise regression method were subsequently conducted to find which determinants could explain the intention to purchase organic clothing products. The advantage of step-wise regression is that it will take the significant variable first and keep the other variables in reserve and next another significant variable will be included. By this iteration method, the R2 values will be given stepwise so that one can observe the contribution of each independent variable to the model.
(i) Relationships between Perception variables of Green Clothing and intention to buy Organic products
Dependent Variable
1. Will you consider buying Eco Fashion clothing.
Independent Variables Pearson’s R
Test of Correlation Sig. (1-tailed)
*P value (significance)
1 How often do you purchase clothing. -.327 Insignificant variable cancelled
2 Have you heard of Eco-Fashion clothing. .366 .000
3 Are you aware of chemical used in apparel production .475 .000
4 Is Eco fashion expensive .583 .000
5 Will you pay more for Eco Products .858 .000
6 Will you recommend Eco-fashion and Eco-Cleaning to your friends and family.
.774 .000
(ii) Relationships between independent variables and Inclination to become an entrepreneur in the Eco Clothing and Eco fashion world.
Dependent variable:-
1. If you intend to become an entrepreneur, then will you venture in the Eco Clothing and Eco Fashion world
Independent Variables:- Pearson’s – R
Test of Correlation Sig. (1-tailed)
*P value (significance)
1. Eco fashion is sustainable market for SMEs in the future
.603 .000
2 Is Eco fashion an untapped market .510 .000
3. Eco fashion should go for mass market .517 .000
4. Will you recommend your friends and family members to use Eco-fashion clothing and Eco-cleaning.
.812 .000 5. Handicrafts and Recycled clothes fall into the Eco Fashion
category.
.354 .000
(i) Intention to purchase organic clothing products
Table 4.3.1 (d) (i) Variance explained by factors - purchase intention of organic Clothing (Summary)
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .915a .838 .834 .2911
a. Predictors: (Constant), Will you recommend Eco Fashion and Eco-Cleaning to your friends and family, Are you aware of chemical used on apparel production, Is Eco fashion expensive, Have you heard of Eco fashion, Will you pay more for Eco products
b. Dependent Variable: Will you consider buying Eco-Fashion clothing
Table 4.3.1 (e) (i) : Factors predicting purchase intention of organic Clothing products ANOVAb
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 84.846 5 16.969 200.314 .000a
Residual 16.434 194 .085
Total 101.280 199
a. Predictors: (Constant), Will you recommend Eco Fashion and Eco-Cleaning to your friends and family, Are you aware of chemical used on apparel
production, Is Eco fashion expensive, Have you heard of Eco fashion, Will you pay more for Eco products
b. Dependent Variable: Will you consider buying Eco-Fashion clothing
Table 4.3.1 (f) (i) : Factors predicting purchase intention of organic Clothing products (Coefficientsa
Model
Unstandardized Coefficients
Standardiz ed Coefficient
s
t Sig.
B Std. Error Beta
1 (Constant) .137 .090 1.532 .127
Have you heard of Eco
fashion .053 .019 .106 2.826 .005
Are you aware of chemical
used on apparel production .117 .023 .167 5.039 .000 Is Eco fashion expensive .167 .027 .235 6.262 .000 Will you pay more for Eco
products .390 .036 .504 10.842 .000
Will you recommend Eco Fashion and Eco-Cleaning to your friends and family
.158 .039 .194 4.092 .000 a. Dependent Variable: Will you consider buying Eco-Fashion clothing
(a) dependent variable : Intend to purchase organic Clothing.
Interpretation of MLR (Multiple Linear Regression ) in Test (i).
In the first iteration, perception ‘Have you heard of Eco Fashion’ is the first independent variable which enters the model and it produces a R2 of 19% as shown in Table 4.3.1 (f)(i). In the second iteration – ‘Will you recommend Eco Fashion and Eco Cleaning to family and friends’ enters the model which adds to the R2 by 39%. The R2 improves by 20% because of this variable.
The dominant factors in purchase intention towards organic clothing products are given in the Table 4.3.1 (f). Here “t” value is important for interpretation. In the first iteration, the “t”
value was 2.826 and significant. This “t” value is the error level present in the model which takes purchase intention of organic clothing as dependent variable and perception towards organic clothing ‘heard about Eco fashion’ as the independent variable. In the second iteration when perception towards organic clothing factor is added to consumers ‘aware on chemical use on apparel’ on organic clothing being environment friendly, the ‘t’ value for increases up to 5.039 and the ‘Is Eco fashion expensive’ option shows a ‘t’ value of 6.262.
This ‘t’ value decrease (or error level decrease) is not only because of addition of organic clothing as environment friendly factor but also because of the interaction or the joint contribution of perception towards organic clothing factor and consumers awareness on organic Clothing being environment friendly factor. Similarly the ‘t’ value further increases in the fourth iteration where it is 10.842 (increased) for perception factor, then it decreases in the fifth (last) iteration to 4.086 for ‘Will you recommend to family and friends’ on environment friendly factor. Hence the first and last factors are less significant. These imply
that the contribution of the model improves further. The result suggest that an individual who is also an organic Clothing buyer perceived that factors that influences him to buy organic Clothing products are his perception ‘Will you pay more for eco product’, perceived that it is environment friendly ‘Aware of chemical use’ and customer is aware that ‘Eco products are expensive’ also.
(ii) Inclination to become an entrepreneur in the Eco-clothing and Eco-Fashion world.
Table 4.3.1 (d)(ii) Variance explained ‐factors in purchase intention of organic Clothing ‐ Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .866a .749 .743 .6140
a. Predictors: (Constant), Will you recommend Eco Fashion and Eco‐Cleaning to your friends and family, Handicrafts and Recycled clothes fall into the eco‐fashion category, Eco Fashion is a sustainable market for SME in the future, Is Eco_fashion an untapped market, Should Eco‐
fashion go for mass market
b. Dependent Variable: If you intend becoming entrepreneur, will you venture in the Eco‐
Fashion or Eco‐Cleaning
Table 4.3.1 (e)(ii) : Factors predicting purchase intention of organic Clothing products ANOVAb
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 218.363 5 43.673 115.844 .000a
Residual 73.137 194 .377
Total 291.500 199
a. Predictors: (Constant), Will you recommend Eco Fashion and Eco-Cleaning to your friends and family, Handicrafts and Recycled clothes fall into the eco-fashion category, Eco Fashion is a sustainable market for SME in the future, Is Eco_fashion an untapped market, Should Eco- fashion go for mass market
Table 4.3.1 (f) (ii): Factors predicting inclination to become an entrepreneur in Eco‐clothing and Eco‐
fashion world ‐ Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) ‐.466 .170 ‐2.743 .007
Eco Fashion is a sustainable
market for SME in the future .359 .063 .278 5.683 .000 Is Eco_fashion an untapped
market ‐.111 .118 ‐.081 ‐.941 .348
Should Eco‐fashion go for
mass market ‐.092 .125 ‐.065 ‐.739 .461
Handicrafts and Recycled clothes fall into the eco‐
fashion category
.145 .053 .111 2.737 .007
Will you recommend Eco Fashion and Eco‐Cleaning to your friends and family
1.052 .069 .759 15.259 .000
a. Dependent Variable: If you intend becoming entrepreneur, will you venture in the Eco‐Fashion or Eco‐Cleaning
Interpretation of MLR (Multiple Linear Regression ) in Test (ii).
In the first iteration, inclination ‘Eco Fashion is a sustainable market for SME in the future’
is the first independent variable which enters the model and it produces a R2 of 63% as shown in Table 4.3.1 (f)(ii). In the second iteration – ‘Is Eco-fashion an untapped market’ enters the model and adds to the R2 by 118%. The R2 improves by 55% because of this variable.
The dominant factors in inclination to become entrepreneur in Eco-clothing and Eco-fashion are given in the Table 4.3.1 (f)(ii). Here “t” value is important for interpretation. In the first iteration, the “t” value was 5.683 and significant. This “t” value is the error level present in the model which takes ‘inclination to become entrepreneur in Eco-clothing and Eco-fashion world’ as dependent variable and ‘Eco fashion is a sustainable SME market in the future’ as the independent variable. In the second iteration when ‘inclination to become entrepreneur in Eco-clothing and Eco-fashion world’ factor is added to consumers ‘Is Eco-fashion an untapped market’ , the ‘t’ value for the 2nd iteration decreases to -.941 and the ‘Should Eco- fashion go for mass market’ option shows a ‘t’ value further decrease to -.739. This ‘t’ value decrease (or error level decrease) is not only because of addition of ‘Eco-fashion should go for mass market’ but also because of the interaction or the joint contribution of ‘Is Eco- fashion an untapped market’and ‘Eco-fashion go for mass market’. Similarly the ‘t’ value further increases in the fourth iteration where it is 2.737 (increased) for inclination factor, then it increases further in the fifth (last) interation i.e. 15.259 for ‘Will you recommend to family and friends’ on inclination factor. Hence the second and third factors are less significant. These imply that the contribution of the model improves further. The result
suggest that an individual who is also an organic clothing buyer will have an inclination to recommend to family and friends and finds Ec-fashion being a sustainable SME market in the future and will be inclined to become an entrepreneur in the Eco-fashion world.
Discussion and Inference of The Green Consumer Information Paradox
Result indicated that perceptions towards organic products depict the strongest relationship with buyer’s intention to buy organic products followed by the buyers belief that by consuming organic product he is contributing to preserving the environment. Yiridoe et al.
(2005) has admitted that some of the general concerns with regard to consumer’s perception towards organic product include safety, environmental impact, human health, taste, nutritional value and visual appeal. The other factors i.e. belief that a product is safer and availability of product information also support the intention to buy organic products.
However, other factors i.e. awareness about availability of product (location) were found to be insignificantly related to the intention to use the product. Studies have shown that most significant factors affecting nature is not the official government policy but public awareness or public concern for environment. It can be argued here, that, consumers who are increasingly concerned and realized the essentials of environmental issues are considered as
“Green Consumers”; those consumers who make their buying decisions at least partly on the basis of personal environmental criteria.
6.
RECOMMENDATIONS(a) Manufacturing for, and Marketing to the Green Consumers – reverse side of the coin.
In the 20th and 21st century, the entrepreneur or person who invests and runs his own business for Green Consumers can be termed as Eco-Entrepreneur. That is the entrepreneur who is environment friendly. In other words, he is an organic products’ farm owner who delivers the highest standard in product integrity to his customers. Understanding consumer behaviour is critical to any entrepreneur. Hence the inference of this study is highly useful to an eco- entrepreneur or a prospective eco-products entrepreneur. For the Green Entrepreneur the stakes are high. Taking the research study inference i.e. The Green Consumer Information Paradox he can plan all environmental campaigns – from building public awareness to driving organic product sales. To be successful in this market it is important to tie the product’s environmental attributes to the lifestyles of the target customers.
(b) Eco-Tourism
As Malaysians become more concerned about environment, the green consumer category will continue to grow. It is important for businesses to recognize this phenomenon and capitalize on the emerging market for environmentally friendly goods and services. Eco-tourism is becoming very popular in Malaysia. It is also a service which is environment friendly.
Customers interested in eco-tourism want to enjoy nature’s offerings and are ready to pay more to preserve and protect the environment.
(c) Paradigm Shift from Eco-entrepreneurship to Social Entrepreneurship
Despite the exciting opportunities of the green consumer market, eco-entrepreneurs must not neglect the traditional consumer values:-
1. Price Factor – Few will pay extra for greener (organic) environment friendly products.
2. Quality factor – many may not like green products – less effective.
3. Convenience – only minimal inconvenience will be tolerated by consumers of green products.
4. Availability – very few customers will go out of the way to purchase green products.
Finally we can say that Green Entrepreneur promotes the welfare of local people, hence he can be re-designated as Social Entrepreneur. Many researches can be done to study the impact of Green Consumer on the growth of Green Entrepreneurs and finally Social Entrepreneurs.
7.
LIMITATION and FUTURE RESEARCHThe limitations of this study is that the sample was restricted to a single geographic area in Malaysia. Further the number of respondents may not portray the population responses with regard to organic-clothing consumption. Therefore additional studies will be necessary to better discriminate between consumer groups to determine which segments are most appropriate to market and to promote organic clothing as a way of building sustainable consumption pattern for the future. Since consumers’ perception towards organic Clothing product has a strong correlation with the intention of buying organic clothing, therefore it is wise to further investigate the details of how consumer perceived the organic clothing. This will help marketers with better selling point when promoting these products to the public at large. Many awareness creation activities should be held and showed among the younger generation consumers in their early age. It should be done before they reach the stage where their consumption pattern becomes their habit, and determines their future identity and self values.
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