the study of consumer behavior and purchasing decision

THE STUDY OF CONSUMER BEHAVIOR

AND PURCHASING DECISION TOWARD

ECO-FRIENDLY BUILDING MATERIALS

BY

MR.APICHART ASAWA-AMNUAI

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE

OF MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2015

COPYRIGHT OF THAMMASAT UNIVERSITY

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Independent Study Title The Study of Consumer Behavior and

Purchasing Decision Toward Eco-Friendly

Building Materials

Author Mr.Apichart Asawa-Amnuai

Degree Master of Science Program in Marketing

(International Program)

Department/ Faculty / University Faculty of Commerce and Accountancy

Thammasat University

Advisor Prof. Dr. Paul G. Patterson

Academic Year 2015

ABSTRACT

The study of “consumer behavior and purchasing decision toward eco-

friendly building materials” has been chosen to be a part of a contemporary topic in

applied marketing for building material producers especially SCG (Siam Cement

public company limited) who decided to enter the eco-friendly building materials

market in order to develop marketing strategy for the future plan.

In order to achieve this purpose, the study set out to achieve the following

four objectives. The market research methods were conducted in two stages in this

independent study. Firstly, the research used two exploratory methods. There was two

focus groups conducted to find insight in consumer attitude and behavior, consumer

factors effecting purchase decision one building materials product and attitude

statements (Objective 3-4). The quality of answer provided rich information that helps

producer to understand the reaction from consumer Secondly, the descriptive research

was done with market survey after the exploratory research in order to expand and

quantify the research finding into key figures. The sample selection of the study was

executed by using the convenience-sampling concept. The 200 respondents are

include 100 of users and 100 of non-users of eco-friendly building materials product.

The data analysis and interpretation conducted after the market research and analyzed

by using SPSS.

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ACKNOWLEDGEMENTS

I would like to express my sincere gratitude to my advisor, Prof. Dr. Paul

G. Patterson, for his guidance throughout the course of independent study. The

advice, help and recommend through meeting and emails are really valuable for my

study. I am very thankful to all participants in my research who gave me their real

and useful information for the focus group and the questionnaire both offline and

online channel. I would like to extend my appreciation to my colleagues at SCG

company especially brand management office who support me in term of the

information. Thank to my friend to support me.

Lastly, I thank almighty my parents, sister and brother for unconditional

love, inspiration and support given to me.

.

Apichart Asawa-Amnuai

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TABLE OF CONTENTS Page

ABSTRACT (1)

ACKNOWLEDGEMENT (2)

LIST OF TABLES (5)

LIST OF FIGURES (6)

CHAPTER 1 INTRODUCTION 1

1.1 Research Objectives 1

CHAPTER 2 CONTEMPORARY TOPIC DESCRIPTION 3

2.1 The 4Ps Marketing Mix 3

2.2 The Success Brand Set 3

2.2 Literature Review 4

CHAPTER 3 RESEARCH METHODOLOGY 5

3.1 Exploratory Research 5

3.2 Descriptive Research 6

3.3 Sampling Procedure 6

3.4 Research Sample 7

3.5 Data Collection 8

3.6 Data Analysis 8

CHAPTER 4 RESEARCH FINDINGS AND RESULTS 10

4.1 Key Finding from Secondary Research 10

4.2 Key Finding from Focus Group 11

4.3 Key Finding from Market Survey 14

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CHAPTER 5 MANAGERIAL APPLICATIONS AND CONCLUSIONS 29

5.1 Result Summary 29

5.2 Business Implication 31

5.3 Suggestion and Further Study 32

REFERENCES 33

APPENDICES 34

BIOGRAPHY 41

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LIST OF TABLES

Tables Page

3.1: Research Sample 7

4.1: Key building materials company, brand and product 11

4.2: Personal characteristic user respondent in focus group 11

4.3: Personal characteristic non-user respondent in focus group 12

4.4: Demographic Report 15

4.5: Type of user distribution by product awareness 17

4.6: Crosstabs Type of user x Status 18

4.7: Crosstabs Type of user x Occupation 19

4.8: Crosstabs Type of user x Age 20

4.9: Crosstabs Type of user x House Value 20

4.10: Mean score of key decision-making factors influencing to purchase the building

materials product 23

4.11: Independent samples test (t-test) – Means score of key decision-making factors

influencing to purchase the building materials product difference between customers

and non-customers 24

4.12: Mean score of attitudinal statement behavior toward eco-friendly

building materials product 25

4.13: Independent samples test (t-test) – Means score attitudinal statement

behavior toward eco-friendly building materials product difference between

customers and non-customers 28

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LIST OF FIGURES

Figures Page

2.1 The successive set involved in consumer decision-making 3

4.1: Eco-friendly building materials product awareness 16

4.2: Brand awareness of eco-friendly building materials - user 21

4.3: Willingness to pay for eco-friendly building materials comparing to

general building materials. 21

4.4: Channels to purchase building materials 22

4.5: Source of building materials product information 22

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CHAPTER 1

INTRODUCTION

Building materials product is very important for developing country like

Thailand due to infrastructure, housing, and building that are rising significantly.

Nowadays, green trend is increasing rapidly due to government support as there are

concerns more on eco-friendly product preferences, since the launch of the new

regulation for 17 types of products and service purchasing for government agency in

January 2008. The regulation stated that the purchase have to contain at least 25% of

green products and the portion required will be increased up to 100% in 2011. On the

other hand in the private sector, the usage of "green buildings" has increasingly by the

big company use its to uplift their corporate social responsibility (CSR) and improve

their company reputation, This lead to rise of the green buildings being constructed in

Thailand since 2007. Therefore, this is the great opportunity for building material

producers to catch up the green trend and develop new building materials with green

features such as hybrid cement from recycle raw material, wood substitute from green

process, roof tiles or solar panel to launch to consumer market.

In conclusion, the finding of the study of “consumer behavior and

purchasing decision toward eco-friendly building materials” reported to the public

under the aspiration of the researcher in order to beneficially help building material

producers especially SCG (Siam Cement public company limited) who decided to

enter to eco-friendly building materials market in order to develop marketing strategy

for the future plan.

1.1 RESEARCH OBJECTIVES

The purpose of this research is beneficially help building material

producers especially SCG (Siam Cement public company limited) who decided to

enter to eco-friendly building materials end-consumer market in order to develop

marketing strategy for the future plan by the study of consumer behavior and

purchasing decision of toward eco-friendly building materials. The research is guided

by following objectives:

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1. To evaluate awareness of eco-friendly building materials product.

2. To identify user of eco-friendly building materials product.

a) Psychographic

b) Behavioral

c) Demographic

3. To define consumer decision-making factors in choosing the building

materials product.

a) The most important purchasing factor in choosing building

materials product.

b) The importance of eco-friendly features.

c) The differences in decision-making factors between user and non-

user of eco-friendly building materials product.

4. To understand consumer attitude and behavior toward eco-friendly

building materials product

a) The positive attitude eco-friendly building materials product.

b) The Negative attitude eco-friendly building materials product

c) The differences in attitude between user and non-user toward the

eco-friendly building materials product.

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CHAPTER 2

CONTEMPORARY TOPIC DESCRIPTION

2.1 THE 4PS MARKETING MIX

The researcher found six relevant articles that is greatly beneficial to this

study. The eco-friendly building materials is one of the product which can describe

into the 4Ps marketing mix) as follow; (E. Jerome McCarthy, 1960)

1. Product: Product quality, product design, service and product design

2. Price: Reservation price (Higher than general product, similar to

general product and lower than general product)

3. Place: Easy to find distribution channel and relationship between seller

and customers

4. Promotion: Brand and promotion

2.2 THE SUCCESSIVE BRAND SET

FIGURE 2.1: The successive set involved in consumer decision-

making (Kotler, P. &Keller, K.L., Marketing Management, 14th edition, 2012,

p.189)

Successive brand set is the model of consumer decision-making by

gathering brand and product feature information from source of information around

them. The total set of brands is the first stage. And the consumer may know some

brand in total set which leading to the awareness set. Some of the brands meet the

buyer’s buying criteria will move forward to the consideration set. As the consumer

gathers more information about product and product related then they have choice set

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in their mind. The consumer will make decision on this. So It’s very important for the

producer to understand the consumer’s decision criteria’s to make them as the final

decision like the example of computer industry in figure 2.2.

2.3 LITERATURE REVIEW

According to Assist. Prof. Dr. Singha, the designer who specialize in eco-

friendly product, pointed out that trend for green product is increasing recently in

several sectors especially food, automobile and building materials industry and by

2020, the green trend will be a global lifestyle.

Also from Thai Green Building Institute report, the number of green

structures has been growing rapidly over the past six years, almost doubling annually

as the direct result of increasing awareness driven by the institute, universities, the

private sector and the government.

Thai government concern more on eco-friendly product preference, since

they have launched the new regulation for 17 types of products and service

purchasing for government agency in January 2008 that the purchase have to contain

at least 25% of green product and the portion required will be increased up to 100% in

2011. As well as in the private sector, the usage of "green buildings" has increasingly

by the big company use its to uplift their corporate social responsibility (CSR) and

improve their company image, resulting in rise of these types of buildings being

constructed in Thailand since 2007.

Therefore, there is potential for building material producers to catch up

the green trend and to realize how consumer perceive of green features on building

material product and how it could impact on consumers’ purchasing decision, so that

the producers could have ideas for its strategy to try to develop eco-friendly building

materials such as hybrid cement from recycle raw material, wood substitute from

green process, roof tiles or solar panel to be launched into consumer market.

It is crucial to understand the customers in this eco-friendly building

materials market, their attitude, decision-making influence factors, and behavior.

Therefore, the study of “consumer behavior and purchasing decision toward eco-

friendly building materials” has been chosen to be an independent study topic, which

focuses on the issue of technology

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CHAPTER 3

RESEARCH METHODOLOGY

To deepen the understanding of consumers and learn more about

customers’ insight, marketing tools are utilized to collect the secondary data and

primary data in both qualitative and quantitative approaches. Sampling election and

target respondents have been selected from user and non-user of eco-friendly building

materials. In order to achieve the objectives, the research has been divided in two

stages; first the exploratory research then the descriptive research.

3.1 EXPLORATORY RESEARCH METHODOLOGY

To achieve all of the study objectives, this study used two exploratory

methods including the secondary research and the qualitative research. Each research

method has been designed to achieve the objectives of a particular study as follow,

3.1.1 Secondary Research

To study on market overview in term of the current market situation,

market competition and its strategy. In addition, this provided the important overview

figure for building materials market in term of the market values, market growth and

market information. The research is to explore the significant article and critique

about building material industry in order to gain market information, to be used as a

guideline for quantitative research. The sources of information for this secondary data

are mostly fact and data from the Internet, company website, annual reports and other

supported sources including the publishing, news, related research studies, etc. This

information helps researchers to investigate into the appropriate data that will identify

possible prior to the actual collection of data and also to notice potential trends of the

market, which could see the potential result from the survey.

3.1.2 Focus Group (Appendix A)

The focus group is one of the qualitative research methods which find

consumer attitude and behavior, consumer decision-making factors in choosing the

building materials product and also defined attitude statement (Objective 3-4). The

quality of the answers will provide rich information in order to help understand in

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depth on the reaction from consumers. The data obtained from focus group was

analyzed understand the key variables and guideline for designing the survey

questionnaire.

3.2 DESCRIPTIVE RESEARCH

The purpose of descriptive research is to help quantify the research result

into figure, percentage and ranking. The research will be conducted by using market

survey in order to collect the data and coded into numbers for SPSS. The data was

used to interpret the result, which helps to achieve the objectives of overall study.

3.2.1 Market Survey

The market survey is a quantitative research method using the survey

questionnaire. The questionnaire was designed based on the result from the focus

group. The questionnaire consist of closed-end questions with Likert scale, semantic

differential scale technique, and opened-end questions. (Appendix B: Questionnaire)

the proposes of the market survey are:

1. To evaluate awareness of eco-friendly building materials product.

(Objective 1)

2. To identify user of eco-friendly building materials product in term of

psychographic, behavioral and demographic (Objective 2)

3. To define consumer decision-making factors in choosing the building

materials product and the differences in decision-making factors

between user and non-user of eco-friendly building materials product.

(Objective 3)

4. To understand consumer attitude and behavior toward eco-friendly

building materials product and the difference of attitude between user

and non-user of eco-friendly building materials product.

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3.3 SAMPLING PROCEDURE

1. Sample Selection: The respondents will be screened at the beginning

stage as the respondents need to be 50% user and 50% non-user of eco-

friendly building materials product.

2. Respondent Qualification:

• Male or female age between 25-55 years old .

• Live in Bangkok and up-country areas.

• Upper middle class to upper class customer (house value 3,000,000-

5,000,000 baht or more than 50,000-70,000 baht household income).

3. Respondent Selection Criteria

• 10 respondents for 2 focus groups will be selected based on quota

sampling, 50% user and 50% non-user of eco-friendly building

materials product.

• 200 respondents for market survey will be selected by screening

questions and based on quota sampling (50% user and 50% non-user

of eco-friendly building materials product)

4. Survey acquisition & recruiting plan

• Focus group - The participants will be interviewed with semi-

structured questions. All of them have to pass the screening

questions to be considered as “the target respondents in user group

or non-user group”. And focus group will take no more than 60

minutes.

• Market Survey - Online questionnaire, the respondents who are non-

user will be acquired through line application which is the most

popular application in Thailand and Facebook page created to attach

the online survey link. Offline questionnaire, the respondents who

are user will be survey by a methodology of interviewer-

administered questionnaire in the construction site, workplaces and

home villages. This will include the actual homeowners of the

product who invest to build house with eco-friendly product.

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3.4 RESEARCH SAMPLE

The qualitative and quantitative research methods were conducted by

selecting convenience sample as follow;

TABLE 3.1: Research Sample

3.5 DATA COLLECTION

1. Qualitative Research: Focus group

• The respondents were divided into two groups for the focus group,

which are user and non-user of eco-friendly building materials

product.

• The respondents of focus group have been recruited within

Bangkok area and up-country area, which vary age, occupation and

income.

• The focus groups were conducted by moderator.

• The interview duration for each group was around 45-60 minutes

• The set of questions is in shown an appendix A: Focus group

discussion guide

2. Quantitative Research: The Market Survey

§ The questionnaires were distributed by using the quota methods

both on-line and off-line.

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§ The respondents will be screened at the beginning stage as

respondents need to be 50% user and 50% non-user of eco-friendly

building materials product

§ The questionnaires were set with at least 200 data sets divide into 2

groups, which are group of user 100 and group of non-user 100 of


§ The survey set the quota sampling of target respondents by using

50% user and 50% non-user of eco-friendly building materials

product

§ The Online questionnaire has been distributed via online through

“Google Docs” (https://docs.google.com) and the respondents

could access to the online questionnaire via the following link

given. Respondents were acquired through Line application and

Facebook, which are the most popular application and social media

in Thailand.

§ The questionnaire received a total 242 data sets with 13 error data

set and 25 unqualified respondents data sets.

3.6 DATA ANALYSIS

1. Qualitative Research: Focus group, the data collected were analyzed

based on each group to define the key finding of user and non-user of

eco-friendly building materials product then comparisons between each

groups were done to define the differences. The summary of each group

and all groups will be reported by using the following pattern,

• General information: Gender, age, level of education, occupation.

• Awareness of eco-friendly building materials product: Example.

Hybrid Cement, Eco-friendly roof tiles and solar panel.

• Consumer decision-making factors in choosing the building

materials product: Example. Quality, price, distribution, service

and eco-friendly.

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• The difference in decision-making factors between user and non-


• Consumer attitude and behavior toward eco-friendly building

materials product (why the buy or not buy): Example, Positive

Attitude: Eco-friendly building material product help me build my

image, eco-friendly building material protect the planet, I build my

environment concern image by using eco-friendly building

material, Negative Attitude: eco-friendly building material is not

value for money product (expensive).

• The difference of attitude between user and non-user of eco-

friendly building materials product

Moreover, the findings of each topic or sub-topic will be listed

and ordered into top five to top ten answers. Then, the selected answers

will be used as the choices when designing the survey questionnaire

particularly the closed-end questionnaire.

2. Quantitative Research: The verified data were analyzed through SPSS.

The questionnaire was designed mostly with closed-end questions and

one open-end question at the end of questionnaire. The multiple choices

questions were analyzed by using percentage while the rating questions

were analyzed base on mean score. The analyses were done, focusing on

the frequency, relative frequency, correlations between variables,

analysis of variance, and cross tabulation. The result from SPSS will be

interpreted and presented in tables and graphs to support evidence of the

study of consumer behavior and purchasing decision toward eco-friendly

building materials

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CHAPTER 4

RESEARCH FINDINGS AND RESULTS

4.1 KEY FINDING FROM SECONDARY RESEARCH

According to Kasikorn Bank, Thailand, the market value of building

materials is worth 580,000 million baht in 2014 with a growth rate of 4-5%. The

usage of "eco-friendly building materials" has increasingly by government and large

firms to improve their corporate image and show their corporate social responsibility,

These were cause by the new regulation on 17 types of products, the increasing

numbers of green buildings being constructed in Thailand since 2007 and the trend on

green and environmental concern.

The number of eco-friendly building material products has been growing

rapidly because an increasing in awareness driven by the building materials producer,

institute, universities, the private sector and the government.

Moreover, eco-friendly building material products is not only for the

business market but also for consumer market because there are many new eco-

friendly building materials launched to the market, which is benefit to end-user in

many aspects.

Besides the brand image and CSR benefit aspects, eco-friendly building

material products also have lower operating costs in the long run. In the case of new

construction projects, there is a significant decrease in operating costs such as the

facilities cost (energy cost) resulting in higher savings in the long-run and even truly

increase ROI.

The players and their concerns that influence the further growth in eco-

friendly building materials in Thailand include:

1. Government: lack of consistency and support in execution.

2. Consumers: limited awareness on economical and health benefits.

3. Building materials producer: acquire 20% more in retail prices

compared to standard building materials.

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4. Developers: cost-benefit consideration (including the availability of

materials and energy solutions, which eventually rely on imports and

increase overall costs).

5. Construction workers: lack of technical knowledge and familiarity.

The key building materials company in Thailand market includes;

TABLE 4.1: Key building materials company, brand and product.

Company Brand Product

SCG SCG, Tra Chang, Tiger,

Cement, Insulation, Steel, Wood Substitute, Fiber Cement Board, Roof Tiles, Pipe, Concrete Block

Mahaphant Shera, Ha Huang Wood Substitute, Fiber Cement Board, Roof Tiles

SCCC Insee, Conwood Cement, Wood Substitute, Fiber Cement Board, Concrete Block

Tra Petch Product Tra Petch Wood Substitute, Fiber Cement Board, Concrete

Block, Roof Tiles

4.2 KEY FINDING FROM FOCUS GROUP

In order to achieve the objectives, the focus groups were conducted by

researcher with 2 groups of people, the first group consists of five users of eco-

friendly building materials who have used the product over the past year and the

second group consists of five non-users of eco-friendly building materials. Personal

characteristics of respondent in focus group are shown in table 4.2,

TABLE 4.2: Personal characteristics of users respondents in focus

groups.

Gender 3 Male and 2 Female Age 28,35,37,45,47 Income 40,000-250,000 Baht/Month Occupation 2 Office worker, 1 business owner, 1 government officer,

1 freelance Brand Tra Chang, Tiger, Shera, Insee, Conwood

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Product Solar panel, Fiber cement wood substitute, Insulation, ALC Block

House Value 3,000,000-10,000,000 Baht

TABLE 4.3: Personal characteristics of non-users respondents in

focus groups.

Gender 3 Male and 2 Female Age 31,35,38,42,48 Income 45,000-220,000 Baht/Month Occupation 3 Office worker, 2 business owner

Brand Tra Chang, Tiger, Shera, Insee, Conwood House Value 4,000,000-9,500,000 Baht The key finding from the focus groups can be summarized as follow:

1. Well-known eco-friendly building materials products are

• Solar Panel

• Cement from recycle raw materials.

• Roof tile with water-based color coating

• Wood substitute with non-asbestos.

• Wood substitute made from fiber cement materials.

• Autoclaved lightweight concrete block (ALC)

• Brick from recycle materials.

• Insulation from natural materials.

• Building materials product with green label

2. Top five decision-making factors in choosing building materials

products include product quality, price, brand, service, and

relationship.

3. Positive and negative attitudes statement toward eco-friendly building

materials product.

Positive:

• According to Attaphol, “eco-friendly building materials are as

effective as general product”.

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• Athivut stated “eco-friendly building materials help me save

money in the short-term and long-term”.

• “Eco-friendly building materials are good for health”, “Eco-

friendly building materials will help me save the earth”, “Using

eco-friendly building materials improves my image” stated by

Pornwalai.

• “Using eco-friendly building materials is effective way to protect

the environment” (Attaphil, Athivut and Pornwalai)

Negative:

• Wajcharaphol stated “Eco-friendly building materials products are

expensive”, “An eco-friendly building material is worth

investment”

• “I don't see the value of Eco-friendly building materials”, “The

designs of eco-friendly building materials are less variety

comparing to the general products”, “Eco-friendly building

materials are least effective than general product” according to

Sirin

• “Eco-friendly product are not popular nowadays”, “Eco-friendly

building material is difficult for me to find the distribution

channel” (Tippayaporn)

4. Consumer Behavior

• Consumers normally buy building materials at Home Pro, Home

Mart by SCG, Home Work, Global House, Do Home, SCG Home

Solution Center, Traditional Building Materials Store

• They usually find the information about eco-friendly building

material from TV commercial advertising, radio, newspaper, store,

website, social Media, magazine

• The brand of eco-friendly building materials in their mind include

Tra Chang, Tiger, Shera, Insee, Conwood, SCG and Diamond

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4.3 KEY FINDING FROM MARKET SURVEY

The questionnaire was distributed through telephone call, personal

contact, email and social network (such as Facebook and Line Application). The

target respondents are both the current users and non-users of eco-friendly building

materials. 16 questions covered attitude towards eco-friendly building materials,

factors leading to purchase, purchasing behavior related to building materials, and

demographic. There are a total of 242 respondents answering the survey but only 200

give valid results.

4.3.1 Considerations

Since the data of non-user group were collected online, it was difficult to

control and manage the quotas. The incidence of demographic including gender and

age fall out naturally. Doing online survey, there may be some unclear points that

confuse the respondents. Another issue is the order bias of the attributes that may

ultimately lead to bias in results; for instance, data is skewed towards one attribute

that is on early question. The online survey by Google Docs cannot apply rotation to

the list of attributes. For significance testing, the report used t-test to compare means

scores. It tests significance at standard of 95 percent confidence level.

4.3.2 Key findings – Demographic

Out of 200 total respondents, female respondents (66.5 percent) are more

active in participating in the survey than male respondents (33.5 percent). Majority of

the respondent’s status are single (70 percent) and about one-third status were married

(27 percent). In term of education level, bachelor degree or below respondent

accounted for 42 percent and the rest are master or above respondent. Majority of the

respondent’s age 30 years old and below (51 percent) and above 30 year old (49

percent). About half of them have income less than 45,000 Baht/month (47.50

percent) and 52.50 percent of respondents earn income above 45,000 Baht/month.

Most of them are full-time worker in as private sector. (70.50 percent) and only few

are government officers (4 percent). All of them have house worth 2 million baht or

less (17.50 percent), 2-4 million baht (31.50 percent), 4-6 million baht (26.50 percent)

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and 6 million baht and above (24.50 percent). The data reported here is shown in table

4.4 as follow.

TABLE 4.4: Demographic Report

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4.3.3 Key Finding - Eco-friendly building material product awareness

FIGURE 4.1: Eco-friendly building materials product awareness

The top three products with high-level awareness on eco-friendly building

materials are solar panel (58.0 percent), Insulation from natural material (54.4

percent) and building materials with green label (48.5 percent). Only 28.5 percent and

24 percent are aware at wood substitute products with non-asbestos and made from

fiber cement materials. Autoclaved lightweight concrete block (ALC), bar, cement

from recycle materials and roof tile with water based color coating are not well

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known. As presented in table 4.5 follow, there are two products significant difference

between user and non-user, which are solar panel and building materials product with

green label, and directionally the results suggest that user group has higher awareness

of eco-friendly building awareness than non-user group on majority six products,

building materials product with green label, wood substitute with non-asbestos, wood

substitute made from fiber-cement materials, autoclaved lightweight concrete block

(ALC), cement from recycle raw materials and roof tile with water-based color

coating while the rest of the two products, non-user group has higher level of product

awareness which are solar panel and insulation from natural materials.

TABLE 4.5: Type of user distribution by product awareness

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4.3.4 Key findings – The profiles of user of eco-friendly building

materials product in term of Demographic, psychographic and behavioral

TABLE 4.6: Crosstabs Type of user x Status

Table 4.6 presents the relationship between type of user and status. The

table shows frequency and column percentage and also the total column on the right

hand and last row. Market researcher names this table ‘cross-tabulation’ and it uses

Chi-square distribution to test whether or not there is a significant relationship

between the two observed variables. The user respondents have the less single status

45.7 percent, compared to non-user respondent 54.3 percent. Pearson Chi-square is

7.695, p-value 0.021, it is concluded that status has significant relationship with type

of user of eco-friendly building materials.

In addition the occupation should be analyzed. It is important to

understand how occupation impact to type of user. Table 4.7 helps us understand what

occupation of user respondent compared to non-users respondent. 48.2 percent of user

are the private office worker compared to 51.8 percent of non-user. Pearson Chi-

square is 11.702, p-value 0.039, similarly to previous table it is concluded that type of

user and occupation also have statistically significant relationship.

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TABLE 4.7: Crosstabs Type of user x Occupation

Table 4.8 users respondent are age 30 years or above 59.2 percent. Non-

user respondent are age 30 years or less 58.8 percent Chi-square is reported as 6.483

with p-value 0.011 less than 0.05, and the relationship between type of user and age is

statistically significant

The results in table 4.9 reports that the house values of majority of user

respondent are higher than majority of non-user respondent. 52.8 percent of user

respondent have the house with value 4-6 million baht, and 61.9 percent of non-user

respondent have the house with value 2-4 million baht. This relationship is proved to

be statistically significant as Chi-square is 8.90 and p-value is 0.035.

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TABLE 4.8: Crosstabs Type of user x Age

TABLE 4.9: Crosstabs Type of user x House Value

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Figure 4.2 reports brand awareness of eco-friendly building materials of

users. It shows that the two brands with high awareness are SCG brand (73 percent)

and Tra Chang brand (63 percent). About 20 percent of user are aware Shera brand

and Conwood brand.

FIGURE 4.2: Brand awareness of eco-friendly building materials -

user.

Additionally, most of the users are willing to pay for eco-friendly building

materials that are priced the same general building materials (75 percent). There are

only 19 percent of users who willing to pay more for eco-friendly building materials

higher than general building materials and 6 percent willing to pay lower.

FIGURE 4.3: Willingness to pay for eco-friendly building materials

comparing to general building materials.

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FIGURE 4.4: Channels to purchase building materials

The two key channels to purchase building materials are Home pro store

(80.0 percent) and traditional building materials stores 43 percent. Only 20 percent

claimed to purchase building materials at Homework store, 17 percent at SCG Home

Solution store and 11 percent at Home Mart store. Do home, Boontavorn, and Thai

wasadu are not very popular channels due to little presence. As presented in figure 4.5

below, the results suggest that user 69 percent received most of the products’

information at the point of purchase. On the other hand 57 and 46 percent always find

product at website and social media. Only 29 and 26 percent receive product

information from magazine and TV due to limitation of flexibility and media space.

24

FIGURE 4.5: Source of building materials product information.

4.3.5 findings – The decision-making factors influencing the

purchase of building materials product and the difference between user and non-


TABLE 4.10: Mean score of key decision-making factors influencing

the purchase of building materials product.

25

All respondents were asked on the importance of each factor when they

purchase the building materials products on five point scale, 1=not, 5=very. The mean

score to each factor is presented in the table 4.10. The score read by user and non-user

to find the underlying key influencing factor of each group.

For the user, product quality (4.38) seems to be the most significant

factor. In addition price (3.78), design (3.77), Service (3.64), promotion (3.60) and

brand (3.60) could encourage the purchases of building materials product as well.

However the users are quite neutral for distribution channel (3.54) and eco-friendly

and eco-efficiency (3.30) when they choose the products. And they are not interested

in personal relationship (2.77) between building materials seller and them.

Foe non-user, there is not big difference from user group in term of the

order of important factor. Product quality (4.52) is the most influencing factor. Price

(4.04), design (4.01), service (3.81), promotion (3.72), and brand (3.70) would

encourage the purchases of building materials product as well. The non-users are

quite neutral for distribution channel (3.57), eco-friendly and eco-efficiency (3.30)

and relationship (2.77) between building materials seller and them when they choose

the product too.

Table 4.11: Independent samples test (t-test) – Means score of key

decision-making factors influencing the purchase of building materials product

difference between customers and non-customers

26

Table 4.11 above, reports the t-statistics test result that compares the mean

difference between user and non-user of eco-friendly building materials. Generally,

the findings suggest that there is not much difference in terms of influencing factors

toward the purchase of eco-friendly building materials between user and non-user.

The mean responses of each group are equally similar. There is only one key

influencing factor that makes the differences between user and non-user is price,

which tested to be statistically significant at 0.009. Non-users of eco-building

materials are more price sensitive comparing to user. They give significantly higher

mean score than the user by 0.260 point, which is significant with t-statistics test

result -2.069. This finding implies that the reasons that non-users do not buy the eco-

friendly building materials is either because the price is not reasonable or not value

for money. Directionally, 6 out of 9 influencing factors in table 5 have been given

greater scores by those who are non-users, though they are not statistically significant.

Non-user place greater values on the areas include product quality (0.140), brand

27

(0.210), service (0.06), relationship between seller and them (0.240), design (0.240),

and distribution channel (0.180). On the other hand, users have greater mean

responses for promotion (0.030) and eco-friendly and eco-efficiency (0.220).

4.3.5 Key findings – The consumer attitude and behavior toward eco-

friendly building materials product and the difference of attitude between user

and non-user of eco-friendly building materials product.

TABLE 4.12: Mean score of attitudinal statement behavior toward


28

Table 4.12 shows the mean score of the attitudinal statements on behavior

toward eco-friendly building materials product. There are a total of 14 statements

asked the respondent to rate on a five-point Likert scale The scores are read by user

and non-user.

For the users, save the earth (4.40) seem to be the most benefit from eco-

friendly building materials. In other words, this reflects building materials is one of

the effective way to help the earth. Good for health (3.98) and effective way to protect

the environment (3.95) would encourage purchasing eco-friendly building materials

as well. The user believed eco-friendly building materials are expensive (3.58) and

did not save the money for short-term (save the money for short-term, 2.80) but it’s

help to save the money over the long-term (3.57) and also value for investment (worth

investment, 2.50, Don’t see the value, 1.83). They also buy the eco-building materials

to improve their image (3.40) because they thought the qualities of these products are

quite similar to general building materials (3.33). The eco-friendly building materials

providers need to improve in term of variety of the products (less variety, 3.43) and

distribution channel (3.26). The users are quite neutral when considering the

popularity of the product (2.99).

Non-users, they have seen the benefits of eco-building materials product

as the high score of 4.44 shows that the product help me save the earth, 4.03 as

effective way to save environment, 3.79 knowing that its good for health, similar

product quality to general product (3.48), can help save money in the long term (3.39)

and don’t see the value (2.03) but still do not buy the product because they believed

these products are expensive (3.94), less variety than general product (3.91), difficult

to find (3.58) and not popular (3.57). They feel neutral given to important on return on

investment of these products (worth investment 2.67).

Table 4.13 shows the results of t-test that test whether or not user and non-

user have significantly different in attitudes on eco-friendly building materials. There

are a total of 14 statements that have been asked using 5 points agreement rating

scale, and they cover all key areas related to eco-friendly building materials in

positive and negative aspects such as product quality, variety of products, price,

distribution, and promotion. This reports the 95% confidence interval of the

difference. The minus sign of mean difference indicates that non-user has greater

29

mean response than user, and vice versa for positive sign. The key aspects that have

been tested to be statistically significantly different are five key areas. The first

element is eco-friendly building materials are expensive which give a significantly

greater mean response by non-user by 0.360 point, t-statistic -2.484 with p-value

lesser than 0.05. The difference based on 95% confidence interval. Second element is

low variety of eco-friendly building materials products comparing to general products

and this is significantly valued by non-user with mean difference of 0.480 point; t-

statistic -3.791 with p-value less than 0.05. The third element is about popularity.

Non-users believed eco-friendly building materials are not popular nowadays. They

give significantly higher mean score user by 0.580 point; t-statistics is -4.784 with p-

value lesser than 0.05. This finding implies that non-user may not buy the eco-

friendly product because it’s not popular. The fourth area is effective of eco-friendly

building materials product comparing to general product that is significantly more

valued by non-user. They have greater mean response by 0.380 point; t-statistics is -

2.723 with p-value lesser than 0.05. This implies that non-user do not buy the eco-

friendly product because they do not believe in product quality. Difficult to find the

distribution channel is the last element. Non-user have significantly greater mean

response than user by 0.320 point. The null hypothesis is rejected as calculated t-

statistics is -2.536 with p-value lesser than 0.05. It is concluded that user are more

engaged with the eco-friendly product through distribution channel.

Directionally, 6 out of 14 attitudinal statements in table 4.10 have been

given greater scores by those who are non-user, though they are not statistically

significant. Non-user place greater values on the areas include least effective than

general product (0.150), save the money in short-term (0.070), save the earth (0.040),

effective way to protect environment (0.080), don’t see the value (0.200) and worth

investment (0.172). In comparison, users have greater mean responses for save the

money over long-term (0.180), good for health (0.190) and improve image (0.090)

30

Table 4.13: Independent samples test (t-test) – Means score attitudinal

statement behavior toward eco-friendly building materials product difference

between customers and non-customers

31

CHAPTER 5

SUMMARY AND CONCLUSION

5.1 KEY FINDING FROM MARKET SURVEY

From the result of the study in both quantitative and qualitative research

method, it can be summarized in topics as follows,

1. The awareness of eco-friendly building material product.

The top three high level of product awareness on eco-friendly building

materials are solar panel, Insulation from natural material and building materials with

green label. These products got high level of product awareness so this impacts on

sale volume.

2. The profiles of eco-friendly building materials product users in

term of Demographic, psychographic and behavior.

The characteristic of eco-friendly building materials, demographic,

occupation, status, age and house value have significant relationship with type of

users statistically.

Top two brands awareness for the user respondents are SCG brand and Tra

Chang brand. They are willing to pay for eco-friendly building materials only if it has

the same price as the general building material these users prefer to purchase building

materials and find the product information at Home pro and traditional building

materials stores.

3. The decision-making factors influencing the purchase of building

materials products and the difference between user and non-user

of eco-friendly building materials product.

The product quality is the most important decision-making factor

influencing the purchase of building materials. Follow by price, design, service,

promotion, brand, distribution channel, eco-friendly and eco-efficiency and

relationship. The ranking of importance is quite similar between users and non-users.

32

For each attribute of 4Ps, the result shows that the most influencing factors

in choosing the building materials as follow;

In term of product, the quality, design, and service are most concerned.

Whereas for price is also considered. In addition, the place including distribution

channels and their relationship with customer is essential. And for the promotion,

consumer gives importance to the promotion offered and the brand.

There is only one key influenced factor that differentiates the user sand

non-users, which noted to be statistically significant the price. Non-users of eco-

building materials are more price sensitive comparing to the users.

4. The consumer attitude and behavior toward eco-friendly building

materials product and the difference of attitude between user and

non-user of eco-friendly building materials product

For the user, “save the earth” seem to be the most benefit from eco-

friendly building materials. In other words, this demonstrates that building materials

is one of effective way to help the earth. Good for health and effective way to protect

the environment would encourage purchasing eco-friendly building materials as well.

The user believed eco-friendly building materials are expensive but helps to save the

money over the long-term and also value for the investment. The eco-friendly

building materials providers need to be improved in term of variety of the product and

distribution channels.

33

Non-users, noticed the benefits of eco-building materials product, help me

save the earth, effective way to save environment, good for health, similar product

quality to general product, save money over the long term, and don’t see the value but

they still do not consider the product because they believed these products are

expensive, less variety than general product, difficult to find and not popular.

There are five key areas related to eco-friendly building materials that

differencing to the user and non-user. All of five elements that are higher valued by

non-user. Include expensiveness. Less variety of eco-friendly building materials

products comparing to general products, the popularity, and non-users believed that

eco-friendly building materials are not popular nowadays. This finding implies that

non-user may not buy the eco-friendly product because it’s not popular. Another area

is the effectiveness of eco-friendly building materials product comparing to general

product. And low accessibility is another concern can be concluded that users are

more engaged with the eco-friendly product through distribution channel.

In conclusion, in order to serve the customer needs and become the

successful company in eco-building materials business, the company needs to set the

powerful marketing strategy using the consumer insight both of current user and non-

current user. So the company should develop marketing strategies considering product

strategy, pricing strategy, place strategy and promotion strategy for each group of

consumer.

5.2 BUSINESS IMPLICATION

From key result of study, the marketing strategy can be developed based

on key findings in term of 4Ps of marketing mix and STP as the core elements of

marketing plan to help grow the company in building materials business. The result

from the quantitative and qualitative studies provided the consumer insight

information. The researcher strongly recommend to building materials provider to

focus on product quality attribute for the general building materials and pricing

strategy due to difference of price sensitivity of user and non-user of eco-friendly

building materials.

34

For eco-friendly building materials business, eco-friendly building

materials providers have to improve in term of the distribution channel and variety of

the products to increase customer satisfaction of user group. To convert non-user to be

user, the quality of the eco-friendly product needs to match with general product and

pricing as well.

5.3 SUGGESTION FOR FURTHER STUDIES

The result of this study represents user and non-user of eco-friendly

building materials at a certain time period (2 months when the data was collected) so

this study can’t be consider a good represent over time due to probability of behavior

and attitude change. Therefore, further study can be conducted again in the future.

35

REFERENCES

"Green Trend in 2020 : สีเขียวจะเปนไลฟสไตลของโลก - IBiz - Manager Online."

Green Trend in 2020 : สีเขียวจะเปนไลฟสไตลของโลก - IBiz - Manager Online.

Manageronline, 23 Apr. 2014. Web. 18 Nov. 2014.

<http://www.manager.co.th/iBizChannel/ViewNews.aspx?NewsID=9570000045141>

"คูมือการจัดซื้อจัดจางสินคาและบริการที่เปนมิตรกับสิ่งแวดลอม." (n.d.): n. pag.

Pollution Control Department. Pollution Control Department. Web. 18 Nov. 2557.

<http://ptech.pcd.go.th/gp/userfiles/files/GP-2555.PDF>.

"Rapid Growth in Thai Green Building since 2007 - The Nation." The Nation. The

Nation, 29 Dec. 2013. Web. 26 Nov. 2014.

<http://www.nationmultimedia.com/business/Rapid-growth-in-Thai-green-building-

since-2007-30222892.html>.

"Green Buildings Growing Rapidly in Thailand." Royal Thai Embassy Washington,

D.C. Royal Thai Embassy Washington, D.C., n.d. Web. 18 Nov. 2014.

<http%3A%2F%2Fwww.gofishing.ru%2Fwstat%2Fref_201405.html

Aaker, D. A., Kumar, V., Day, G. S., and Leone, R. (2011). Marketing Research (10th

edition). Asia: John Wiley and Sons

Howitt, D. and Cramer, D. (2011). Introduction to SPSS statistics in Psychology (5th

edition). Essex: Pearson Education Limited

Kotler, P. & Keller, K.L. (2012). Marketing Management. Successive sets involved in

consumer decision making, 14th edition, 2012, 189. Pearson Prentice Hall

Pcrichart Suksuphak (2013). The segmentation of passengers and influencing factors

when choosing an airline for leisure purpose on Bangkok – The East Asia routes,

Thammasat university

36

APPENDICES

37

APPENDIX A

FOCUS GROUP DISCUSSION GUIDE

Session 1: Introduction to market research and personal information

1. Introduction of Explorer: Explain interview objectives and house rules:

• An in-depth understanding

• It’s all about opinion, no right or wrong answers

• Be yourselves, be relaxed, and most importantly enjoy the

discussion

2. Ask respondent to introduce herself:

• Name, age, occupation, income

• House value

• Their roles on home construction

Session 2: Eco-friendly building materials product awareness and decision

making factors

1. Explore: Brand awareness of building materials product

2. Explore: Ask respondent about awareness of the product

• Three main eco-friendly building materials

• The eco-friendly building materials which use before

3. Explore: Ask respondent about decision-making factors

• Three primary reasons of choosing building materials

• The influencing factors when choosing building materials

Session 3: The Perception toward eco-friendly building materials

1. Explore: Positive perception toward eco-friendly building materials

2. Explore: Negative perception toward eco-friendly building materials

3. Explore: Top of mind eco-friendly building materials brand, why?

4. Explore: The most favorite brand, why?

38

APPENDIX B

SURVEY QUESTIONAIRE

Consumer behavior and purchasing decision toward eco-friendly building materials

Dear Participant,

I am student from Master Degree in Marketing program, Thammasat University,

would like to kindly ask you to be a respondent to the questionnaire (“Consumer

behavior and purchasing decision toward eco-friendly building materials) for my

independent study project. The result of this research will be use for academic

purpose partial to a completion of master degree program.

To complete this questionnaire, it would take approximately 15 minutes.

To ensure your privacy, I ask that you not to include your name in the questionnaire.

Moreover, your information will be kept confidential and use for my academic

purpose as this project will be submitted to the university.

Thank you for your time and dedication. Your contribution will be a valuable source

for my further studies. Your participation is appreciated.

For further information, please contact [email protected] or call 081 889 9979

Sincerely yours,

1. In the last 12 months, have you bought anybuilding material?

(Mark only one)

£ Yes

£ No

2. How much is your house value (exclude land)?

__________ Baht

3. Have you ever used eco-friendly building materials?

(Mark only one)

£ Yes

£ No

4. Please check the following product that you know? (Check all that apply)

£ Solar Panel

£ Cement from recycle raw materials.

39

£ Roof tile with water-based colour coating

£ Wood substitute with non-asbestos.

£ Wood substitute made from fibre cement materials.

£ Autoclaved lightweight concrete block (ALC)

£ Brick from recycle materials.

£ Insulation from natural materials.

£ Building materials product with green label

£ Other……………………………………………….

£ Other……………………………………………….

£ Other……………………………………………….

5. How do these factors influence on your decision-making when purchasing

building materials products? (Check only one per roll)

Not at all Very

influence

Product Quality 1 2 3 4 5 6 7

Price 1 2 3 4 5 6 7

Brand 1 2 3 4 5 6 7

Service 1 2 3 4 5 6 7

Relationship 1 2 3 4 5 6 7

Design 1 2 3 4 5 6 7

Distribution Channel 1 2 3 4 5 6 7

Promotion 1 2 3 4 5 6 7

Eco Friendly and Eco Efficiency 1 2 3 4 5 6 7

Others (please, specify____________) 1 2 3 4 5 6 7

6. How much are you willing to pay more or less for eco-friendly building

materials comparing to general building materials product? (Mark only one)

£ ________% Lower than general building materials

£ The price should be the same as general building materials

£ ________% Higher than general building materials

40

7. Where would you like to buy eco-friendly building material? (Check all that

apply)

£ Home Pro

£ Home Mart by SCG

£ Home Work

£ Global House

£ Do Home

£ SCG Home Solution Center

£ Transitional Building Materials Store

£ Other……………………………………………….

£ Other……………………………………………….

8. How do you agree with following statement? (Mark only one per roll)

Not at all Very influence

Eco-friendly building materials are as

effective as general product 1 2 3 4 5 6 7

Eco-friendly building materials will

help me save money over the long-

term

1 2 3 4 5 6 7


help me save money in the short-term 1 2 3 4 5 6 7

Eco-friendly building materials are

good for health 1 2 3 4 5 6 7


help me save the earth 1 2 3 4 5 6 7

Using eco-friendly building materials

improves my image 1 2 3 4 5 6 7

Using eco-friendly building materials

is effective way to protect the

environment.

1 2 3 4 5 6 7

Eco-friendly building materials

products are expensive 1 2 3 4 5 6 7

41

I don't see the value of Eco-friendly

building materials. 1 2 3 4 5 6 7

The designs of eco-friendly building

materials are less variety comparing to

the general products

1 2 3 4 5 6 7

Eco-friendly product are not popular

nowadays 1 2 3 4 5 6 7

Eco-friendly building materials are

least effective than general product 1 2 3 4 5 6 7

Eco-friendly building material is

difficult for me to find the distribution

channel

1 2 3 4 5 6 7

An eco-friendly building material is

worth investment 1 2 3 4 5 6 7

9. Where do you usually find the information about eco-friendly building material?

(Check all that apply)

£ TV Commercial Ad.

£ Radio

£ Newspaper

£ Store

£ Website

£ Social Media

£ Magazine

£ Other……………………………………………….

£ Other……………………………………………….

10. When you think of eco-friendly building materials, what brands come to

mind? (Check all that apply)

£ Tra Chang

£ Tiger

£ Shera

£ Insee

42

£ Conwood

£ SCG

£ Diamond

General information

11. What is your age?

______________ Years

12. What is your Gender? (Mark only one)

£ Male

£ Female

13. What is your marital status? (Mark only one)

£ Single

£ Married (number of children_______, if any)

£ Divorced (number of children_______, if any

14. What is your average household income per month?

______________ Baht

15. What is your occupation? (Mark only one)

£ University student

£ Office worker

£ Government officer

£ Business owner

£ Housewife

£ Retired

£ Others (please specify ________________)

16. What is the highest degree or level of school you have completed education?

(Mark only one)

£ Below high school

£ High school graduate, diploma or equivalent

£ Bachelor’s degree

£ Master’s degree

£ Professional degree

£ Doctorate degree

43

BIOGRAPHY

Name Mr.Apichart Asawa-Amnuai

Date of Birth November 24, 1985

Educational Attainment Academic Year 2007: Bachelor Degree

Work Position Brand Planner

SCG Cement-Building Materials

Co.,Ltd.

Work Experiences Assistant Sale Manager

Thai paper Co.,Ltd

Assistant Marketing Manager

SCG Paper PLC

Assistant Marketing Communication

Manager

SCG Paper PLC

the study of consumer behavior and purchasing decision

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