The effects assessment of firm environmental strategy and customer environmental conscious on green product development

Abstract

The purpose of this study is to examine why both parties (industry and consumer market) have mutual interests in protecting the environment but they still are hesitant to act green. The study used two-stage sampling from consumer market to depict ideal green product characteristics and reliable toy companies, and visit these companies for the second sample collection to examine whether the organizational eco-innovation strategy with customer value has a positive effect on green product development. In other words, the customer's benefit is an important factor for new product development strategy for green toys. This research shows that the willingness to buy green toys increases if most people in society buy green toys. This represents that customers are environmentally conscious and care about protecting the environment, or buying green toys is the result of a new economic trend and childhood education. The willingness to buy green toys increases if customers think that green products implies an enhancement on new product development to toy manufacturers. Further, if manufacturers are able to manage the difficulty of cooperation with all parties in the supply chain and difficulties related to production, they are willing to adopt customers' perceived value on green toys for their new product development strategy. It is rare to find academic research discussing the perspectives of both consumers and manufacturers in the same study because the research topic is very broad and many conditions must be considered. This research aims to find the effect of consumer-perceived value and company eco-innovation on green product development.

Green Product Innovation: Where we are and Where we are Going

“…Green capabilities, in terms of 'a firm's abilities to integrate, coordinate, build, and reconfigure its competences and resources to accomplish environmental management and environmental innovations' (Chen et al, 2012, p. 375), technological capabilities (in terms of R&D activities and high qualification of employees) and green design activities (Horbach, 2008;Kammerer, 2009;Rehfeld et al, 2007;Tsai et al, 2012) are also important antecedents of GPI. Other antecedents are environmental leadership (conceived as the process through which an individual involves other people in the achievement of environmental goals) (Chen et al, 2012) and the search for a technological lead (Triebswetter and Wackerbauer, 2008b).…”

“…Other factors stimulating GPI are uncertainty avoidance and risk aversion (Leonidou et al, 2013;Wagner, 2009) as well as marketing orientation, eco-labelling activities, informing consumers about the environmental quality of products, conducting market research (Tsai et al, 2012;Wagner, 2008Wagner, , 2009) and scrutinizing customers and competitors (Driessen et al, 2013).…”

Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

“…Price premium for green products is limited [33] and willingness to buy is strongly related to the ability of informing customers about the benefit of purchasing green [34,35]. The consumption of environment-friendly alternatives seems also affected by frequency of use [36] and level of functional risk [37].…”

Introducing Sustainability in Value Models to Support Design Decision Making: A Systematic Review

“…Price premium for green products is limited [30] and willingness to buy is strongly related to the ability of informing customers about the benefit of buying green [31][32]. The consumption of environmentfriendly alternatives seems also affected by frequency of use [33] and level of functional risk [34].…”