Adviser ： Liming Chuang & Chun-Chu Liu Doctoral Student ： Shu-Tsung Chao Date ： Oct. 27, 2011

1. The effects assessment of firm environmental strategyand customer environmental conscious on greenproduct development Adviser：Liming Chuang&Chun-Chu Liu Doctoral Student ：Shu-Tsung Chao Date ： Oct. 27, 2011

2. Abstract 1 Introduction 2 Literature Review and Hypotheses Dev. Results References 3 5 7 Methodology Conclusion and Recommendation 4 6 Outline

3. Abstract

4. Abstract • The purpose of this study is to examine why both parties (industry and consumer market) （Dyadic Perspective、雙值觀點 ） have mutual interests （共同利益）in protecting the environment, but they still are hesitant to act green. （對綠色行動仍然猶豫不決） • The study used two-stage sampling from consumer market to depict ideal green product characteristics and reliable toy companies. （描繪出理想的綠色環保產品特性）

5. Abstract (cont.) • Customers : • This research shows that the willingness to buy (購買意願) green toys increases if most people in society buy green toys represents that customers are environmentally conscious(環保意識) and care about protecting the environment or buying green toys is the result of a new economic trend (新的經濟趨勢) and childhood education. • The willingness to buy green toys increases if customers think that green products implies an enhancement on new product development (加強對新產品開發) to toy manufacturers.

6. Abstract (cont.) • Manufacturers : • If manufacturers are able to manage the difficulty of cooperation with all parties in the supply chain (供應鏈) and difficulties related to production (生產之困難度) , they are willing to adopt customers’ perceived value on green toys for their new product development strategy. • This research aims to find the effect of consumer perceived value and company eco-innovation (生態創新)on green product development.

7. Introduction

8. Introduction • In recent years, there has been an upsurge (上昇趨勢) in the reporting of research in the area of eco-innovation, green innovation or sustainable (可持續發展) development innovation with regards to R&D, production processes, new products and new services (Conway & Steward, 1998; Forster & Green, 2002; Hart, 1997; Pujari, 2006; Pujari, Peattie, & Wright, 2004; D. Pujari, G. Wright, & K. Peattie, 2003). • Academic researches on corporations and environmental concern have increasingly been published since 1990s.

9. Introduction (cont.) • Most studies concentrate on examining companies’ new strategies in response to regulation of environmental protection(Huang, 2004). (檢視公司對環保法規的反應之新策略) • Fails to clarify what exactly is supposed to be done by companies (無法澄清究竟什麼是公司應該做的)particularly with regards to new product development (Pujari, 2006) , with a combination of company perceived value and consumer perceived value toward green product development strategy.

10. Introduction (cont.) • The purpose of this study is to understand why is it that even though both parties (industry and consumer) have mutual interests and understanding of environmental protection they still are hesitant to act green. • The study adopts a two-stage sampling process: • the first stage investigates the consumer market by collecting their points of views on consumers’ perceived value on green toy development

11. Introduction (cont.) • the second stage identifies the concept of organizational eco-innovation strategy on green product development, and then compares the results between the both parties • To conclude what are the important factors involved in the strategies for developing green products. • People have started to think about how compensate for the related loss（如何彌補相關損失）. Some have begun to live in a more simple way to consume less and make less waste also known as LOHAS. (樂活)

12. Introduction (cont.) • In the past decade, when companies promote and sell green products, the environmental concerns always draw attention and recognition and expect consumers to adjust their buying intentions and develop new buying behavior.(環境的問題總是吸引關注的，並期望消費者增進自己的購買意願和發展新的購買行為) • This study includes consumer perceived value on green products that is beneficial at the product management level（有利於產品開發管理水準的提昇以開發綠色產品） to develop green products that comply with consumers’ demands for marketing management to plan an efficient green marketing plan. （以符合消費者之需求為動力以規劃進行高效的綠色行銷)

13. Literature review and Hypotheses development

14. Conceptual Model Stage 1 Stage 2 Green Economy Organization Culture H1 H5 H6 H2 Green Product Development Customer Perceived Value Green Management H7 H3 H4 H8 Green Design Willingness to Buy Quantitative Qualitative Figure 1. Conceptual Model

15. Green Economy • Environmental economics plays a key role in identifying options for efficient natural resource management (環境經濟在有效的自然資源管理中扮演著關鍵的作用)that facilitate sustainable development (Munasinghe, 1993) (可促進持續性發展) • Various stakeholders, such as consumers, governments, and environmental groups are increasingly paying their interests in the environmental performance of products (Johansson & Magnusson, 2006).

16. Green Economy (cont.) H1: Green Economy has positive influence on green product development.

17. H1: Green Economy has positive influence on green product development. Green Economy Organization Culture H1 Green Product Development Customer Perceived Value Green Management Green Design Willingness to Buy Figure 1. Conceptual Model

18. Consumer Market Awareness • There is 89% consumers concerning about what they buy would impact the environment and 79% consumers willing to pay additional 5% for Biodegradation or recycle material made packaging (Makower, 2009). (生物分解或回收的材料) • On the other hand, there is few research discussing about toy safety, however, preventing childhood injury (預防兒童傷害)is very important to parents and primary caregivers (主要照顧者) and governments.

19. Consumer Market Awareness (cont.) H2: Green Economy has positive influence on customer perceived value.

20. H2: Green Economy has positive influence on customer perceived value. Green Economy Organization Culture H2 Green Product Development Customer Perceived Value Green Management Green Design Willingness to Buy Figure 1. Conceptual Model

21. Customer Perceived Value • According to Holbrook’s (1999) definition on perceived value, the total value consumers received from products or service includes the value of product, service, personal, image, however, to obtain above value , customers must pay its cost, that includes monetary (貨幣), time, energy and mental cost, which so called customers’ cost. • Consumers are fascinated on (著迷)some specific characteristics of a product. It seems a magic power to make them attached. It aims to build consumer’s loyalty to the products.

22. Customer Perceived Value (cont.) H3: A higher degree of customer perceived value positively influences customer’s purchase intention.

23. H3: A higher degree of customer perceived value positively influences customer’s purchase intention Green Economy Organization Culture Green Product Development Customer Perceived Value Green Management H3 Green Design Willingness to Buy Figure 1. Conceptual Model

24. Willingness to Buy • Willingness to buy is a normal effectiveness measurement and often used to anticipate (預測) a response behavior. Patterson (1997) provides a model of the customer purchase intentions. • Previous studies have provided ample evidence for the positive influence that perceived value has on purchase intention or consumers’ willingness-to-buy (Dodds, Monroe, & Grewal, 1991; Monroe, 1990; Zeithaml, 1998).

25. Willingness to Buy (cont.) H4: A higher degree of purchase intention positively influences green product development strategy.

26. H4: A higher degree of purchase intention positively influences green product development strategy. Green Economy Organization Culture Green Product Development Customer Perceived Value Green Management H4 Green Design Willingness to Buy Figure 1. Conceptual Model

27. Organization Culture • Market orientation is the business culture that produces outstanding performance through its commitment to creating superior value for customers (Slater & Narver, 2000). • Also, the marketing concept states that organizational success depends upon satisfying customers’ needs better than competitors (Kolter & Armstrong, 1994). (組織的成功取決於對滿足客戶的需求之能力優於競爭對手)

28. Organization Culture (cont.) • Some researchers have posited that market-oriented values and market-oriented activities are both aspects of the market-oriented culture has been found as one of the key factors of business success (Gainer & Padanyi, 2005) as well as new product innovation and the market focus helps a business develop an understanding of its target market and their needs (Pujari, 2006).

29. Organization Culture (cont.) H5: A higher degree of marketing orientation in the organizational culture positively influences green product development strategy. H6: A higher degree of marketing orientation in the organizational culture positively influences green management.

30. H5: A higher degree of marketing orientation in the organizational culture positively influences green product development strategy Green Economy Organization Culture H5 Green Product Development Customer Perceived Value Green Management Green Design Willingness to Buy Figure 1. Conceptual Model

31. H6: A higher degree of marketing orientation in the organizational culture positively influences green management. Green Economy Organization Culture H6 Green Product Development Customer Perceived Value Green Management Green Design Willingness to Buy Figure 1. Conceptual Model

32. Green Management (Life-Cycle Assessment) • Life-cycle assessment is the measuring greenness tool which provides an objective evaluation from raw material acquisition to final waste treatment (原料收購到最終廢棄物處理)which so called “Cradle-to-Grave” (從搖籃到墳墓)perspective to evaluate the overall greenness of a product and to optimize all stages of a product (Bhat, 1996; Jørgen Hanssen, 1998). • Life-cycle assessment aims to set up the goal of maximum performance while minimizing waste of green products, through the measuring assessment, the value represent how will a product performs compared with what the customer wants and is willing to pay (Bhat, 1996).

33. Green Management (Life-Cycle Assessment) (cont.) H7: A higher degree of green management positively influences green design.

34. H7: A higher degree of green management positively influences green design. Green Economy Organization Culture Green Product Development Customer Perceived Value Green Management H7 Green Design Willingness to Buy Figure 1. Conceptual Model

35. Green Design • An effective green design enhances product quality, reduces costs in developing green products and generates cyclic efficiency (Bhat, 1996; Braungart et al., 2007) • Green design also involves two broad segments to set up green strategies: Source Reduction and Waste Management (Bhat, 1996). • Eco-efficiency as a “social action strategy” seeking to “reduce the use of materials in the economy in order to reduce undesirable environmental impacts….and produce a relatively higher degree of economic affluence which is more fairly distributed” (Schutz & Welfens, 2000).

36. Green Design (cont.) • As Braungart (2007) defining the concept of eco-efficiency is: dematerialization, increase resource productivity, reduced toxicity, increased recyclability(down cycling) and extended product lifespan. (非物質化，提高資源生產率，降低毒性，增加可回收率與延長產品的壽命) • To consider green design on toys, the safety always the prior category in discussion and made strong connection on designing stage.

37. Green Design (cont.) H8: A higher degree of green design positively influences green product development.

38. H8: A higher degree of green design positively influences green product development. Green Economy Organization Culture Green Product Development Customer Perceived Value Green Management H8 Green Design Willingness to Buy Figure 1. Conceptual Model

39. Methodology

40. Conceptual Model Stage 1 Stage 2 Green Economy Organization Culture H1 H5 H6 H2 Green Product Development Customer Perceived Value Green Management H7 H3 H4 H8 Green Design Willingness to Buy Quantitative Qualitative Figure 1. Conceptual Model

41. Sampling Plan • We obtained data on the degree environment concern between consumers and manufacturers • A two-stage sampling will be used in this study. • At phase one stage, we collect 220 adult customers equally divided into two groups: married and have child/children at age under eight; married or single, few experience on raising child/children.

42. Sampling Plan (cont.) • At stage two, we visit twenty toy manufacturers who have intention to develop green business. • The questionnaire contains environment concern and the process of Eco-Innovation that includes organizational culture, green management and green design and product development requirement

43. Sampling Plan (cont.) • This is an important part of the study, it’s the combination of consumers’ perspective and manufacturers’ perspective on green products. • It shows whether toy manufacturers consider consumers’ value into their new product development strategy, and furthermore to define the key successful factors of new product development at Eco-innovation process.

44. Data Analysis Procedure • Descriptive Statistic Analysis • Factor Analysis and Reliability Test • Factor Analysis • Item-to-Total Correlation • Internal Consistency Analysis (Cronbach’s alpha) • Multiple Regression • In-Depth Interview

45. Results

46. Data Collection • This experiment includes two sample groups, one is consumer group another is a few of toy manufacturers. • Consumer Group : • 220 above 20 years old respondents that assuming the targeted consumer group is with economic independence and owns decision power on purchasing decision. • The returning response was 167, after eliminating incomplete information provided, the effected response is 152. The total effective response rate is 69%.

47. Data Collection (cont.) • Toy Manufacturers : • 20 Taiwanese toys makers who are interested of this subject, the valid and completed response was finished the first part of semi-structured questionnaires and accepted a phone interview. • The response with completed information provided only 6 toys makers . The total effective response rate is 30%.

48. Empirical results Table 1. Result of Simple Regression for Green Economy and Consumer Perceived Value (four factors) ( Testing for H2 )

49. Empirical results Table 2. Result of Multiple Regression for Consumer Perceived Value and Willing to Buy Green Toys ( Testing for H3 )

50. Empirical results Table 3. Result of Simple Regression for Willing to Buy Green Toys and Product Development ( Testing for H4 )