Environmental Perception

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Perception is defined as a method by which physical sensations are selected, organized and interpreted to provide some meaning. Consumer’s perception of the firm’s corporate strategies toward environmental issues is expected to contribute to the formation of the overall perception about green products (D’Souza, Taghian et al, 2005). Schiffiman and Kanuk (1997) is also purpose that perception is the process by which an individual choose, organizes and interprets stimuli into a meaningful and coherent picture of the world.

According to Tellis (1998) perception is the process of forming mental patterns and drawing meaning from external stimuli. Perception happen through the senses. Perception consists of two stages, analysis and synthesis. The analysis involved comparing external stimuli with images stored in memory to identify patterns. Synthesis is the process of drawing appropriate meaning from patterns based on the context of their occurrence.

2.3 Environmental Responsibility in MNCs

Recently, MNCs faced the environmental sustainability challenge when growing their business. Important role should be played by MNCs through suitable strategies and operations, an example of green processes and product development. Besides that, concept such as design for environment, eco-design, extended producer responsibility and product stewardship are becoming more and more common in corporate culture. (Albino, Balice and Dangelico, 2009, p. 83 and 86). As a result, the effective development of green products has an essential role in creating successful environmental strategies, and to help companies and economies towards environmental sustainability (Pujariet al., 2003).

George Mason University (2008), state that a company could develop g...

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...er translate these values into the purchase of green products. Chase and Smith (1992) also have point out that environmental messages in green advertisements can influence the customer perception towards EFPs. Hence, the third hypothesis of the study is:
H3: There is a significant relationship between green advertising by MNCs in promoting EFPs and green purchasing intention of customers.

2.10 Conclusion

Based on the literature described in this chapter, three hypotheses had been developed for testing in this research. Hypothesis one was related to eco-labeling and its relationship with purchasing intention of customers. Hypothesis two was related to green packaging and branding and its relationship with purchasing intention of customers. Finally, hypothesis three were related to the relationship between green advertising and purchasing intention of customers.

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