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
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
(1)
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
6
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
eco-friendly building materials product.
§ 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-
user of eco-friendly building materials product.
• 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)
16
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
22
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.
23
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-
user of eco-friendly building materials product.
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
eco-friendly building materials product.
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
Eco-friendly building materials will
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
Eco-friendly building materials will
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