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INDIVIDUAL ASSIGNMENT

Subject: Marketing management

IEMBA SBF.02

Students : Tran Nhat Tan


name
ID : VN1001872
Date of : 12/November/2016
completion

Topic:
Its noted that an increasing number of Vietnamese consumers have engaged in
buying and using green products (i.e. the products/services that claim to
offer an environmental benefit, or that are sustainable and
environmentally friendly).
What do you think about the above opinion? (Agree? Not agree? And Why?)
Please use the key marketing concepts, theories learnt from the marketing
management course to frame your arguments (e.g., target customers; key benefit
that consumers seek for; factors influencing buying behaviors, etc.), and use
specific examples to support your points.

Contents
1. Introduction.......................................................................................................2
2. Definition.......................................................................................................... 2
3. Legal framework in Vietnam...............................................................................3
4. Survey by VNU Journal of Econimics and Business in October 2012.......................3
5. Environment Performance Index of Vietnam........................................................6
6. Specific products sample....................................................................................6
7. Assessment.......................................................................................................9
8. Conclusion.........................................................................................................9
References............................................................................................................ 10
1. Introduction
According to the UN, the environmental pollution and climate change are the two
biggest threats to the survival and development of human society in the twenty-
first century. Vietnam is likely one of the countries most negatively affected by
climate change. Therefore, environmental issues are being increasingly
concerned, enterprises are trying to change their behavior in line with the
orientation of the whole society. These concerns have started to change in
consumers purchasing patterns, which leading to creation of a new group of
consumers: green consumers.

One area that receiving a lot of attention is Marketing. Terms like "Green
Marketing" and "Marketing environment" appeared quite regularly in recent times.

Many researches reveal a fact that though consumers nowadays are more often
encouraged to behave in a environmentally friendly way through saving energy,
purchasing environmentally friendly products, or purchasing healthier products,
number of consumers have not been aware of the significance of those behaviors
sufficiently. In Vietnam, there still has been little evidence of the consumers
awareness of environmental issues or of friendly behavior towards the
environment.

Vietnamese consumers seem to be rarely exposed to the concept of green


purchasing rather than protect themselves and their family members. There have
been few studies about green purchasing in Vietnam, since green products are
relatively new for Vietnamese people.

There are some resources report of an increasing number of Vietnamese


consumers have engaged in buying and using green products. It might be true.
However, the reason of that purchase decision is not from their environment
protection perception or attitude, but their own benefits instead such as: healthier
food, saving cost

2. Definition
Green consumer: a group of consumers, who are concerned about the
environment in their purchase behavior, activities associated with the
marketplace and consumption habits and consider the effect of their behavior on
the natural environment around them. In other words, green consumers are
the ones who show the environment friendly behavior.

Green product: Lampe and Gazda (1995) define concept of green product as:
every aspect of the product: design, production, packaging, use and disposal,
provides an opportunity for a company not only to protect the environment but
also to benefit from positive consumer attitudes towards the environment.

Green marketing: green marketing incorporates a broad range of activities,


including product modification, changes to the production process, packaging
changes, as well as modifying advertising (Polonsky, Michael Jay 1994)

According to AMA the definition of green marketing is clearer and expresses as


follows: Green or Environmental Marketing consists of all activities designed to
generate and facilitate any exchanges intended to satisfy human needs or wants,
such that the satisfaction of these needs and wants occurs with minimal
detrimental impact on the natural environment.

3. Legal framework in Vietnam


Although many developed and developing countries have adopted and acted to
promote green purchasing nationwide as a response to environmental issues, it
still seems to be a brand-new concept in Vietnam. Ministry of Justice issues 300
legal documents, which in the field of environmental protection to legalize the
behaviors of individuals, organizations, business activities, technical procedures
and resources processing. Nevertheless, these formal documents are inconsistent,
incomplete, and unstable. As a result, outcomes of these documents on adjusting
the environmental protection behaviors of individual and organizational are
limited. In another effort, the Vietnam Green Purchasing Network (VNGPN) was
established in 2009 for the first time. This network aims at:

Raising awareness of consumers, organizations, and businesses in making their


choices of consuming green products;

Promoting and spreading technology solution in R&D and production of green


products;

Supporting businesses to advertise their green products;

However, I am still doubting whether Vietnamese consumers have any concern of


environmental issues by practicing green purchasing daily.

4. Survey by VNU Journal of Econimics and Business in October 2012


Questionnaire was distributed to a random sample of 900 consumers in Hanoi, Da
Nang, and Ho Chi Minh City. Of which , a total of 315 usable responses were
received(35%) including 118 of Hanoi, 93 of Da Nang and 102 of Ho Chi Minh City
as details in the following table:

Source:Hoang Van Hai and Nguyen Phuong Mai


VNU University of Economics and Business

Question 1: What is the awareness of Vietnamese consumers of environmental


issues?

(1 = Not interested at all to 5 = Very interested)

Source:Hoang Van Hai and Nguyen Phuong Mai


VNU University of Economics and Business
Results show that medium interest from consumers regardless of their education
level, gender, occupation concern about environmental issue. air pollution and
waste problems were most interested (reaching 52.1% and 50.5% respectively).

Question 2: What are consumers attitudes towards green purchasing?

(1 = Not applicable to me to 5 = Always intend)

Source:Hoang Van Hai and Nguyen Phuong Mai


VNU University of Economics and Business

Results reveal that the different levels of education consumers have quite
dissimilar responses. higher education levels consumers have significantly better
understanding of numerous actions to protect the environment, especially green
purchasing behaviors.

Moreover, all respondents revealed that they would consider several factors as
following table, when making a green purchasing.
Source:Hoang Van Hai and Nguyen Phuong Mai
VNU University of Economics and Business

Result shows that the most important factors are: descriptions on products,
information from the Internet, and information from TV. Besides, it is also proved
that the postgraduates and graduates consider all factors when making a
purchase. It is apparent that attitude and perception of consumers are the main
factors that make them in green purchasing.

5. Environment Performance Index of Vietnam


According to Vo (PetroTimes 2013), Vietnamese consumers have limited
perceptions of environmental protection and low demand for green products
toward environment protection although natural environment of Vietnam is
presently at an alarming level. Regarding to Environment Performance Index of
Yale University, Vietnam to be ranked at 136th out of 178 countries.

Source: http://archive.epi.yale.edu/epi/country-profile/viet-nam

In short, based on certain surveys as well as report of international organization,


Vietnamese consumers perception toward environment protection is still
relatively low level. it is apparent that attitude and perception of consumers are
the main factors that make them in green purchasing. The following part is
evidences which are able to support that opinion based on marketing theories.

6. Specific products sample


Dema Target Marketing Mix Message
nds custo and
Product Price Place Promotion
mers Benefits
to
customer
s
Mediu - -Organic High -Big cities: - Leaflet -Safe and
m Medium certificate: price Hanoi, Da Healthy
-sponsor for some
High no toxic, no Nang, Ho Chi foods.
social events.
income chemical, Minh city.
-
-Member card for
- No -Big Environme
loyal customers.
Educat Genetically supermarket: nt
ed Modified, Big C, Aeon, -Free shipping protection
Roots of Metro,
-Age: -customer service
material Vinmart
30-60 (after sale service)
-green label -Chain store in
packaging main street
such as Bac
-
Tom, Soi
Bien

-Digital
marketing
High - -Save High -Nationwide, - Brand name -Saving
Medium energy price especially bigawareness such as: energy
and cities such as Daikin, Panasonic, LG,
-green label -Saving
High Hanoi, Da in Quang.
(eco) operation
income. Nang, Ho Chi
packaging -Free shipping and cost
Minh city.
-Age: installation
-
25-50 -Shopping mall,
-Customer Environme
electronics
service(after sale ntal
supermarket.
service) friendly
-Digital
-Member card for
marketing
loyal customers.

-Discount
Low -High -Recycle Mediu -Shopping mall -
educate material m and Environme
d supermarket, ntal
-
such as BigC, friendly
Environmen
Metro, Co
tal friendly
Mart
material
Low -High - Cheap -Big cities: -Cheaper price Environme
educate Environmen er Hanoi, DaNang, ntal
tal friendly than Ho Chi Minh friendly
resources A92 city
(biofuels) gasoli
-Propaganda
ne
from
government.

7. Assessment
Explicitly, the demand for green electronic and organic products is definitely
potential as the needs of
Vietnamese consumers for green products are no longer doubtful. But the factors
make Vietnamese consumers decide to pay extra is due to their own benefits such
as safety and saving cost instead of environmental protection attitude. The others
examples are considered as failure or unsuccessful cases due to wrong message
to target customers. Vietnamese consumers green purchasing decision is not
from environment related manners. In fact, Vietnamese consumers have relatively
low level of environmental awareness in their daily consumption and their
knowledge and perception toward eco-products is still insufficient. That is also
proved at above surveys result. Thus, it leads to a question is that which factors
really
drive Vietnamese consumers to have intention to choose green products?
Definitely it is not environmental protection awareness unfortunately.

8. Conclusion
In Vietnam, there has been a very little evidence of the awareness of Vietnamese
consumers of environmental issues. This paper studies their understanding of
green products, the environmental awareness of Vietnamese consumers, and
attitude towards green purchasing via a questionnaire surveys in three biggest
cities in Vietnam - Hanoi, Da Nang and Ho Chi Minh City. Findings from the survey
as well as from international organizations report reveal that Vietnamese
consumers with a high level of education and with high income are more
concerned about environmental protection but still have not sufficient knowledge
enough of green products and green purchasing intend. By marketing messages
or slogans tend to consumers benefits such as safety, healthier, and saving
cost, it also indirectly becomes a part of nationwide environmental protection.
On the other hands, government should release more feasible legal documents as
well as use mass media to broadcast the environment issues frequently in order
to educate Vietnamese consumers, particularly young generation to change their
daily habit of purchasing products for the environmental protection. However,
green marketing is the inevitable trend for sustainable development of
businesses. It brings more opportunities for businesses, especially environmental
perception of consumers is raising rapidly todays. Thus, there are still positive
signs that the green marketing in Vietnam will steadily prosper in the coming
years.

References

Brand,n.d.ChienluocMarketing. [Online]
Available at: https://chienluocmarketing.wordpress.com/tag/marketing-xanh/
Dr. Nguyn Th Qunh Nga; Dr. Trn Hng Ti, 2016. Vietnam Logistics. [Online]
Available at: http://www.vlr.vn/vn/news/img/nghien-cuu-ung-dung/2890/marketing-xanh-
voi-nguoi-tieu-dung.vlr
[Accessed 5 11 2016].
Giang, N. T. H., 2014. Understanding Vietnamese Consumers Purchase Intentions
toward, Ho Chi Minh City: International University Vietnam National University HCMC,
Vietnam.
Hoang Van Hai; Nguyen Phuong Mai, 2012. Environmental Awareness and Attitude of
Vietnamese, Hanoi: VNU University of Economics and Business.
Nguyen Song Tung, 2015. Vietnamplus. [Online]
Available at: http://www.vietnamplus.vn/co-hoi-va-thach-thuc-trong-thuc-day-tieu-dung-
xanh-o-viet-nam/322304.vnp
[Accessed 05 11 2016].
Polonsky, M. J., 1994. An Introduction To Green Marketing, Los Angeles: Electronic Green
Journal, UCLA Library,.
Th, D. N. H., 2014. Hi tm l hc x hi Vit Nam. [Online]
Available at: http://hoitamlyhoc.vn/News/36/310/hanh-vi-tieu-dung-xanh-cua-nguoi-ha-
noi.aspx
[Accessed 6 11 2016].
University, Y., 2014. Yale University. [Online]
Available at: http://archive.epi.yale.edu/epi/country-profile/viet-nam
[Accessed 12 11 2016].