Green innovative product

Courtesy : www.proquest.com/

The presence of green innovative product (GIP) is observed to influence
consumers’ purchasing decisions as they become more ecologically aware of the
effects caused by conventional products’ consumption to the environment. This article
reviews the concept behind GIP and its effect on consumer’s behavior. The article
focuses on the meaning and classification of GIP and on how it affects consumer’s
behavior in terms of their satisfaction, environmental attitude and also purchase.
Several issues that arise for customer when they consume GIP will be raised. The
article will also address why the industry such as oil and gas needs to cater to the need
for GIP and provide basic guidelines on how this is achieved without too much
difficulty. The insights are expected to help build our understanding on the importance
of GIP to be researched and on the potential of its commercial value that encourages
consumers to repeat purchase after consuming it. In addition, the insights may give an
idea for government and the industry in forming and formulating appropriate policies
as well as increasing public’s environmental sensitivity. The article implies the
important connection between GIP and individual’s identity as well as their ecological
beliefs.
Keywords – Satisfaction, Environmental Attitude, Purchase, Green Innovative
Product
1 Introduction
This article discusses the concept of green innovative product (GIP) and of its effect on consumer’s
satisfaction, environmental attitude and purchase behavior. The article starts with a brief introduction
on GIP, followed by literature review linking the concept of GIP to consumer’s environmental
attitude, satisfaction, and behavior and ends with a conclusion of the discussion.
Green consumption is usually related to environmentally responsible consumption where consumers
consider the environmental impact of purchasing, using, and disposing of various products, or using
various green services (Follows & Jobber, 2000). Today, many industries have reorient their
operations to meet their businesses and stakeholders’ demand for green product consumption. The
demands have led corporate decision makers facing increasing public sensitivity, stricter regulations,
and growing stakeholder pressure that are all focused on preserving the natural environment (Chang,
2011). Mainly, encouragement for consumers to consume environmentally friendly (or green)
International Conference Earth Science & Energy
IOP Conf. Series: Earth and Environmental Science 519 (2020) 012030
IOP Publishing
doi:10.1088/1755-1315/519/1/012030
2
products is attributed to the world’s attention to existing global environmental problems (Choi &
Fielding, 2013). More customers have shifted their preferences towards choosing products and
services that are more environmentally friendly (Leonidou, Katsikeas, & Morgan, 2013); and more
decisions are made due to the benefits and uses offered by the green products (Cherian & Jacob,
2012).
While the consumer’s shift towards green product purchase and consumption meant that a segment of
green consumers is found, many companies find it difficult to turn this newfound segment opportunity
to their advantage; particularly because they struggle to make green products available, to ensure sales
locations accessible and to offer affordable price of the green products as per demanded by the green
consumer segment. These limitations cause consumers to feel that they are not given maximum
opportunity to consume green products (Hur, Woo, & Kim, 2015). As companies continue their effort
to increase consumer awareness on sustainable, environmentally friendly products and services, they
believe that offering consumers with green innovative product (GIP) is how they can meet up with
current consumer desires (Wong & Wong, 2014). It is important to note the difference between green
product and GIP. In brief, green product refers to a product designed with reduction usage ability of
natural resources and that it can be recycled (Ariffin et al., 2016). On the other hand, green innovative
product (GIP) is the end result marketers get when they focus on combining environmental
conservation practices at every stage of their creation of goods and services (Dagher & Itani, 2012).
Thus, we can briefly conclude that GIP is an upper or specific version of green product as the GIP
stresses on finding the innovation that can be applied on the whole process of producing the green
product. This is why the product is now known not as the green product but green innovative product.
Green consumption, green product and GIP are very much encouraged to ensure sustainable
development is achieved globally.
2 Literature review
2.1. Understanding the concepts of Green Product, Green Innovation and Green Innovative Product
Many definitions on green product have been found in the literature. Ariffin et al.’s (2016) definition
for example refers to a product that is designed to reduce usage of natural resources; and which can be
recycled (Ariffin et al., 2016). Another definition found refers to it as a product related to decisions
and actions with aim to protect or benefit the natural environment by saving energy and/or resources
and reducing pollution and waste (Danjelico and Pujari 2010). As can be seen, the two definitions are
quite similar since protection of the environment is considered the key function of green products.
Some examples of green products on the market are household items produced with post-consumer
plastic or paper, recyclable or reusable packaging, energy-saving light bulbs and detergents containing
materials that can be biodegradable, not polluting and free of synthetic dyes or perfumes (Tan, 2011),
including fuel-efficient vehicles, organic food, health products (Rungie, Uncles, & Laurent, 2013; Hur,
Woo & Kim, 2015). According to Hur, Woo & Kim (2015), marketing of green products requires
strategic (e.g. contribute to the development of effective promotional strategies of environmentally
considered products, specifically hybrid cars) and tactical (e.g. packaging, labelling) approaches. For
instance, strategically, companies can choose to use green product design techniques (Baumann et al.
2002) while tactically, companies can decide on how they should package and label the products in
ways that are more environmentally friendly (Hur, Woo & Kim, 2015). Importantly, a product can be
green as long as it is focused on being environmentally friendly, either in piecemeal or wholesome
package. The tendency to minimize impact on the environment has resulted in the evolution of green
innovation studies.
There are two types of green innovation research. The first type defines green innovation as the
company’s ability to evaluate green commitments such as saving the environment from pollution,
saving energy, and recycling useless materials (Chen, 2008), while the latter treats green innovation as
a corporate environmental process through energy savings, pollution prevention, waste recycling,
green product design, and environmental management (Chang, 2011). Furthermore, green innovation
consists of new or modified processes, practices, systems and products that benefit the environment
International Conference Earth Science & Energy
I
and contribute to environmental sustainability (Oltra, 2009). The current study defines green
innovation as a new or modified product and process, including technological, managerial, and
organizational innovation, which helps maintain the surrounding environment. In addition, due to
increasing customer concerns about environmental protection, environmental management has become
an important part of strategic planning in many organizations (Choi & Fielding, 2013). Environmental
regulations can lead to situations that can provide ease and firmness regarding the environment where
it can reduce pollution and show that green innovation must be treated differently from other
innovative tactics because it not only produces spillover effects for research and development efforts
but also external effects positive, that is improvement in the environment (Pa, 2017).
2.2 The output of green innovation is green innovative product (GIP).
As earlier described, green innovative product (GIP) is the product that resulted from the efforts of
combining environmental conservation practices at each and every step of producing goods and
services (Dagher & Itani, 2012). Chang (2011) explains how environmental factors (e.g. material use,
energy consumption, environmental impact) are considered by marketers in the green innovation
process as products are modified and created with certain quality so that the GIP can reduce negative
environmental impacts during the product’s life cycle. Green innovation is critical to production of
GIP. Guoyou et al. (2013) consider green innovation as an instrument for improving company’s
environmental management process, and is very much related to the changes (technologically,
organizationally, socially, or institutionally) to be made in order to reduce environmental burden (e.g.
pollution). Green innovation shows a hierarchical structure in the industry where the results show that
product innovation and processes are important and interesting phenomena and enable companies to
better anticipate changes in consumer preferences and harmonize green product innovation initiatives
with consumer values, thus enabling industries with quickly innovate based on market demand to gain
a competitive advantage (Lin, Chen, & Huang, 2014). Through GIP then, company would achieve
competitive advantage and build respectful company’s image (Wong, 2012). Companies can offer and
communicate GIP’s environmental related customers’ preferences and perceived product values to
differentiate GIP from conventional products. As Chan et al. (2015) explain, consumers must be made
aware that consuming GIP has an advantage over conventional product; traditionally, evaluation
applied on product efficiency and impact on the environment do not consider the output produced by
the consumption that consequently worsen environmental performance but with the consumption of
GIP, environmental performance will be improved as well as reduce costs (Chan et al., 2015). Lin et
al.’s (2013) empirical study of the automotive industry in Vietnam for example showed positive effect
of green innovative product (GIP) on company’s performance. The same study also reported of GIP’s
important role in influencing consumer behavior (i.e. perception consumer, satisfaction, willing to
pay) and hence company’s performance (Lin et al., 2013). Chen and Burns (2006) state that solutions
cannot be achieved without action and support from government, industry and consumers. Green
Innovative product (GIP) must be directly related to environmental regulations or policies, so that
green innovation product (GIP) can lead to good environmental performance and are the right media
to change and improve environmental performance (Chang, 2011).
2.3 Consumer’s value, environmental attitude, satisfaction and purchase
Consumer value is defined as an interactive relativistic preference experience. where experience is
service quality and tangible benefits as a means of adding differential value to product or service
offerings (Peattie & Charter, 2003). Regarding market demand, behavior and awareness in industries
that implement green innovation practices or invest in environmental management prevent higher air
pollution, use of chemicals and actions that can damage the environment. Meanwhile, Hur, Woo &
Kim, (2015) explained that consumer value has an influence on environmental motivation by
evaluating products and product choices in buying hybrid cars in America. Furthermore Paul & Rana,
(2012) states that motivation is based on understanding environmental awareness which is described in
five dimensions; environmental knowledge, environmental values, environmental attitudes, desire to
act and concrete actions. On the one hand, pro-environment motivation shows how consumers make
green purchases, such as green food consumption among Muslim consumers and non-Muslim
consumers in Malaysia by following a strict diet that complies with religious dietary laws. Meanwhile
International Conference Earth Science & Energy

ecological awareness factors and preferences affect consumers to buy green products. So that it
becomes easy for ecologically conscious consumers to include green products in routine purchases and
feel satisfied with the green product. Even consumers buy a green product if the overall satisfaction of
the green product is more than non-green products but their satisfaction levels vary for different
attributes. Furthermore, the concept of customer satisfaction itself, seeking an understanding of the
motivation to buy “green products”. Based on the influence of demographic factors, it further explores
buyer socio-demographic moderation on the relationship between value and customer satisfaction
(Hur, Woo, & Kim, 2015). Given the limited influence of customer satisfaction in purchasing green
innovative product (GIP), where satisfaction is an important dimension for buyers. How should
consumers consume green innovative product (GIP) be accompanied by environmental attitude as a
manifestation of repeat buying behavior. That is, giving the expected value to buyers increases their
satisfaction and thus the possibility of repeat purchases (Mittal & Kamakura, 2001).
Consumer satisfaction in consuming environmentally friendly products expresses social responsibility
through the willingness to buy green products. More specifically, about consumers’ willingness to
make repeat purchases, as well as environmentalists or often called environmental attitudes. “Prosocial” and socially conscious consumer behavior, is responsible for environmental protection (Wells,
Ponting, & Peattie, 2011). From a social marketing perspective, green consumption reflects the
motivational tendency of individual consumers (Lee, 2009) and underlines social dilemmas, where
individuals, communities, and environmental interests have different opinions and arguments
(Schuitema & de Groot, 2015). This article focuses on identifying which value dimensions are
significantly related to repeat buyer satisfaction on innovative green products. By focusing on the
values underlying the assessment of satisfaction, environmental attitude, this research is intended to
provide a better understanding of repeat buyers of green innovative product (GIP) and attitudes of
environmentally conscious consumers.
2.4 Customer Value Satisfaction
Following the theory developed by Sheth et al. (1991), consumer choice is based on various
dimensions of value, each dimension of value makes a different contribution to the chosen situation.
For example, a consumer may be more influenced by utility features (for example, product, price,
promotion, place), or social tendencies (for example, socially desirable consumption), depending on
their level of importance. Therefore, customer value is considered as “the difference between the total
benefits and the total sacrifice consumers feel when buying a product or service.” The total benefits of
ts are a combination of product attributes and are the result of consumers using products (Monroe,
1990). Meanwhile, total sacrifice is what consumers must let go of to get the product purchased. By
identifying the benefits and costs of products, consumers not only consider performance or functional
aspects but also social and emotional factors as well (Sheth, Mittal, & Newman, 1999; Sweeney &
Soutar, 2001). Emotions are translated as customer satisfaction where overall customer evaluation of
performance and supply (Fallis, 2013). Then according to According to Chang et al. (2016),
satisfaction is the evaluation of consumption experiences which refers to a series of affective
(emotional) responses that arise specifically during a consumption experience (eg happiness, pleasure,
peace, joy, and enthusiasm). This overall satisfaction has a strong positive influence on customer
loyalty intentions in various product and service categories (Chen & Chang, 2013). Because overall
evaluations are built over time, satisfaction usually mediates the effect of product quality, service
quality, and price or equality of payments for loyalty (Chang et al., 2016). It also contains a significant
affective component, created through the use of repeated products or services (Gallarza, et al., (2016).
In the context of services, overall satisfaction is similar to evaluating overall service quality. Seyed
Shahin Sharifi (2014) considers satisfaction to be an affective response, centered on comparing
product results with several standards set before buying, and measured during or after consumption.
There are two types of emotions, positive and negative. Chang et al. (2016) also shows that positive
and negative emotions can exist at the same time because customers have a zone of tolerance in
emotions, where negative emotions do not affect positive emotions. Emotional values refer to feelings
or affective statements of customers either experiencing or anticipating experiences when they
International Conference Earth Science & Energy
IOP Conf. Series: Earth and Environmental Science 519 (2020) 012030

estimate a company’s products or services (Barlow & Maul, 2000). Positive experience through
consumption of products can affect customer satisfaction. Historically, satisfaction has been used to
explain loyalty as a behavior (for example, the possibility of repurchasing and recommending).
However, Verhoef (Ladhari, Souiden & Dufour, 2017) argues that longitudinal data that combines
surveys with subsequent behavior should be used to establish a causal relationship between perception
and behavior. For example, López & Sánchez, (2014).) Discover the positive effects of overall
customer satisfaction on the duration of relationships for customers and Moriuchi & Takahashi,
(2016). shows positive overall satisfaction with the use of customer service. In the study of large-scale
hybrid customers, Ozaki and Sevastyanova, (2011), showed a strong non-linear approach, the effect of
customer satisfaction on the basis of behavior, such as that the functional form of satisfaction with
repurchasing increased marginally. They also found a retention-satisfaction relationship in all
customer characteristics. On the basis of this research, we expect customer satisfaction to have a
significant influence on customer retention that varies across customers.
2.5 Envieromental Atitude
Environmental attitudes can be defined as an assessment of the value of individual environmental
protection (Eze and Ndubisi, 2013). In consumer attitudes show that most individuals act according to
attitude. Pa, (2017) states that concern for the environment is a strong attitude towards environmental
preservation. Attitudes are defined as lasting positive or negative feelings about a person, object, or
problem. Actually, this refers to information that someone has about individuals, objects, or problems
(Dagher & Itani, 2012).
The social psychology literature on behavioral research has shaped attitudes as important predictors of
behavior, behavioral intentions, and explanatory factors of variance in individual behavior (Barbarossa
& Pastore, 2015). In many studies both of these factors have been found to be important / significant
predictors from consumer pro-environment behavior, for example, the level of individual concern for
environmental problems has proven to be a useful predictor of environmentally conscious behavior,
namely recycling behavior (Tsai et al., (2015); Thieme et al. (2015), and green purchasing behavior
(Yadav & Pathak, 2016; Ariffin et al., 2016). Barbaro et al. (2015) in their previous study showed that
the presence of pro-environment attitudes does not always lead to pro-environment actions; others
show a weak relationship between attitudes towards the environment and behavior of women are more
dominant than men (Petratos and Damaskou, 2015).
Purchasing activities on green products provide learning about a caring behavior in the environment.
Where this strengthens green identity through healthy lifestyles and environmental protection (Goh et
al. (2016). Furthermore, consumer behavior in green products must focus on environmentally friendly
attributes and health benefits. Environmental protection can be emphasized in repurchase behavior
(Beasley, Shank & Shank, 2017) The information and consumer experience of a product influences the
level of purchase. With information and consumer experience, we can identify the extent to which
consumers can ensure the privileges of products they do not use (Li et al., 2017), allowing consumers
to do or consume products based on uses and benefits. In this study, environmentally conscious
consumers can be defined as consumers who are the environment of their personal consumption or
who try to use their power to make environmental changes as evidenced by buying behavior (Sloan
and Bodey, 2015) Interrupted in that, the increasing amount of information available about a product
or service can increase the willingness to make a purchase so that it has an impact on good service (Li
et al., 2017).
2.6 Purchase
According to Agyeman, (2014), green purchasing behavior refers to the consumption of products that
are good or beneficial to the environment, can be recycled or can be maintained and are sensitive or
responsive to ecological problems. Choi & Fielding, (2013) reveals that to behave environmentally
friendly reflects social awareness around saving and advancing Earth’s natural resources, preserving
and protecting for the sake of civilization. Consumers are becoming increasingly aware of
environmental problems and this has increased the demand for ecological products. If consumers have
a good attitude towards the environment, consumers are more likely to buy environmentally friendly
International Conference Earth Science & Energy
I
products. Continuous awareness of environmental problems in turn can change consumer attitudes and
intentions to buy hijab products. The behavior of consumers buying green products has become an
important concept in the marketing literature. Previous research has revealed that consumers with
buying behavior in green products show a higher level of actual purchases than consumers who
indicate that they have no intention to buy (Goh et al,. 2016). (Baidya & Ghosh, 2014) also supports
this by showing that buying behavior represents what consumers think will be consumed.
Furthermore, the behavior of certain objects is estimated by purchasing to do environmental attitude
thus, purchasing positively influences the probability of consumers’ decisions and skip the
environment in buying green products.
2.7 Repeat Purchase
Instrumental learning theory can be applied to develop strong relationships with independent and
environmentally friendly products. Repeated purchases can be linked to green innovative products
through satisfaction, as well as environmental attitudes. Consumers often buy environmentally
friendly products must be valued through programs that recognize “green consumers”. Green
consumers must be approached by companies to share their product experiences with other consumers.
This will generate awareness about green products. Incentives in the form of services on innovative
green products can be provided through customer satisfaction to encourage consumers through
environmentally friendly attitudes and this will also encourage consumers to make repeat purchases on
innovative green products.
Researchers argue that the effects of repeat purchases may depend on the habit of consuming or
buying green products (Baidya & Ghosh, 2014). Many studies have empirically examined the
relationship between environmental attitudes and repeat purchases (Chiu, Hsu, Lai, & Chang, 2012; Li
et al., 2017). and the relationship between satisfaction and repeat purchase (for example, Chen, Liang,
& Xie, 2016). Overall, the purpose of this study was to examine affective antecedents (satisfaction),
environmental attitudes to repurchase.
2.8 Consumer Area in Making repeat Purchase
In relation to developing learning instruments to develop strong relationships with green innovative
products on satisfaction, as well as environmental attitudes and making repeat purchase decisions.
Where, repeat purchases can be positioned using 4Ps by linking to innovative green products.
Consumers often buy and make repeated purchases of environmentally friendly products in this case
green innovative product (GIP), must be appreciated through programs and campaigns to recognize
what is meant by “green consumers”. “Green consumers” must be approached by companies to share
product experiences with other consumers. This will generate awareness and environmental attitudes
about innovative green products. The incentive in encouraging consumers to consume green
innovative product (GIP) is done by introducing green innovative product (GIP) through 4Ps so that
consumers can feel satisfaction/dissatisfied with the product consumed.
3 Conclusion
Based on a comprehensive literature review, these articles provides a comprehensive collection of
consumer behavior in consuming and making purchases or repeat purchase on innovative green
products. This is considered as the basis of consensus among the actors involved such as; government,
industry, and individuals in creating innovative products about consumer behavior in making purchase
or repeat purchases. Therefore, the satisfaction and attitude of the consumer environment is an
invaluable resource in shaping buying behavior. Furthermore, it was concluded that evaluation of
consumer satisfaction and environmental attitudes are both important in determining the behavior of
innovative green products. It seems that the environmental behavior of consumers in particular, plays
an important role as a mediator between satisfaction and purchase or repeat purchases.
Furthermore, the results obtained illustrate the importance of investigating the antecedents of
satisfaction and environmental attitudes to make predictions of behavior with regard to willingness to
buy back green innovative product (GIP). Therefore, this article emphasizes the fact that satisfaction,
International Conference Earth Science & Energy
IOP Conf. Series: Earth and Environmental Science 519 (2020) 012030
I
environmental attitudes and environmental purchases must be incorporated into psychological and
social resources in shaping consumer behavior. The high level of involvement of individuals with
innovative green products is shown by the attitude of the environment to influence their choices
regarding consumer assessment and satisfaction in consuming innovative green products.
In conclusion, consumer satisfaction, environmental attitudes have an important role in shaping
purchase or repeat purchase behavior of green innovative product (GIP). Where the results are
obtained from the benefits and results obtained for consumers and the environment. This study aims to
explain the newly created sustainability for environmental attitudes on green consumer behavior
(consisting of green consumer behavior) based on the behavior provided in this article. This is a
longitudinal contemporary study because it validates the findings of previous studies.