Determining Consumer Response to a Companys Effort in Using Sustainable Business Practices - Essay Example

Result of the survey about consumer’s buying preferences towards technological goods produced using sustainable business practices I. Executive summary The following study is conducted to determine consumer response to a company’s effort in using sustainable business practices. This paper will determine if there is a market incentive in terms of consumer responsiveness to producing goods that are environmentally friendly. If there is, this paper will also determine which segment of the market is/are the most receptive to green products so that a company can specifically focus on their market. II. Introduction Knowing the preference of a market or determining how will consumer respond towards a certain good is critical to a business success especially when it is about to introduce a product in the market. The information regarding the market’s preference, behaviour or response towards a certain product is critical because this will give the company an idea whether to push through with the product or not and if ever it will push through with the product, on how will it position itself in the market that would optimize its success. In the case of this paper, the research will determine the consumer buying preference towards technological goods produced using sustainable business practices. Albeit it is ideal to produce products using sustainable business practices, it is not yet known whether there will be a business incentive in terms of market acceptance in the market of Dubai towards green products. This paper will attempt to determine Consumer buying preferences towards technological goods produced using sustainable business practices and if they are, what particular consumer demographics are susceptible to it so that a company can focus on a particular segment of the market to optimize its success. III. Description of methodology The information used in research paper came from primary data through the form of a survey. The survey had 40 respondents from the Dubai market. The demographics of the market are consumers age 30-60 above, who have a source of income of USD 20,000 to USD 59,000 that ranged from single people to couples with family. Suffice to say that the respondents were a fair representative of consumers of technological goods. The purpose of the survey however was to determine their preference towards technological goods produced using sustainable business practices. Albeit it is the ideal business practice, it is yet to be determined if sustainable business practice can translate to sales and ultimately profit. The survey came in the form of a questionnaire which requires respondents to indicate their age, gender, approximate annual income and civil status. The questionnaires were designed to be simple to easily determine consumer response towards technological goods produced using sustainable business practices. IV. Analysis of the data from the survey The result of the survey was an eye opener as well as encouraging. For one, there are already segments in the market who particularly conscious about the company’s business practice and in fact has a bearing in their purchase decisions. Survey result showed that the age group 35 to 39 and 40 to 44 strongly agreed that consumer should completely stop buying products that are unsustainable to the environment. This indicates that a particular segment in the market has a strong opinion about the environment friendliness of a product. This is being supported by another statistical data that these age groups are responsive to the environmentally sustainable practice of a company. Age group 35 to 39, 40 to 44 and 45 to 49 proved to be willing to pay extra as long as the product/s is/are environmentally friendly. They would also ask or inquire about the business practice of a company of which they deemed to be important in the decision making process of purchasing their electronic goods. Consumers also do not merely associate environment friendliness to energy consumption because respondents on all age group did not cite energy consumption as one of the reason why they are buying a technological product. Other parameters such as gender, type of family they have or level of income were not conclusive to have a positive correlation of a preference toward a green product. The following are the summary of the result of the survey; A. Consumers who are willing to pay extra for green products Age bracket yes no sometimes 30-34 3 1 3 35-39 5 2 0 40-44 5 2 1 45-49 5 2 2 50-54 3 1 0 55-59 4 2 1 60-64 4 1 0 Graphical representation of age group who are willing to pay premium for environmentally sustainable electronic products B. Customers who would inquire before buying Graphical representation of Customers who would inquire before buying C. Consumers who opinions that we should stop buying products that are not environmentally friendly Age bracket Strongly Agree Somewhat Agree 30-34 0 6 35-39 5 1 40-44 6 2 45-49 3 3 50-54 2 3 55-59 4 4 60-64 1 0 Graphical representation of consumer’s opinions that we should stop buying products which are not environmentally friendly D. Important factors in buying a technological product Age bracket Energy Consumption Manufacturer Reputation of the brand Durable Upgradable 30-34 1 0 1 0 3 35-39 0 2 2 1 1 40-44 2 2 0 2 2 45-49 1 0 2 3 0 50-54 4 0 1 1 0 55-59 1 2 3 1 0 60-64 0 0 1 0 0 Graphical representation of factors that affect consumers in buying electronic products V. Conclusion Survey results revealed that consumer buying preferences towards technological goods produced using sustainable business practices depend on age bracket. The study showed that customer’s aging between 35 to 40; 41 to 45 and 46 to 50 are the ones most responsive to a company’s business practice. Consumer buying preferences towards technological goods produced by using sustainable business practices is determined by age more than any element of demographics such as gender or income. Such, if a company would poise itself as an environmentally friendly company, it should focus its marketing efforts to the market segment aging 35 to 50 years old to have an optimal chance of success. Read More