Sci.Int.(Lahore),29(2)465-469, 2017 ISSN 1013-5316; CODEN: SINTE 8 465 March-April MALAYSIAN GREEN CONSUMERS DEMOGRAPHICAL SEGMENTATION Mohd Nazri Mohd Noor 1 , Mohd Amirul Hafidz Ahmat 2 , Rudaini Sham Abdullah Jumain 3 , Mohd Ariff Mustafa 4 , Izzat Fakhruddin Kamaruzaman 5 Faculty of Business, Multimedia University, Jalan Ayer Keroh Lama, 75450, Ayer Keroh, Melaka. Malaysia Tel: + (606) 2523269 E-mail: amirul.ahmat@mmu.edu.my ABSTRACT: The purpose of this paper is to segment the Malaysian consumers based on the demographical characteristics. This descriptive and hypothesis testing study was conducted to explain the difference between groups within the context of green consumers. Center of attention is given to the consumers’ decision to purchase green products. Self -administered questionnaires were employed to obtain meaningful data from 230 consumers at major shopping malls in Melaka, Malaysia from September 2015 until February 2016. Based on the analysis, there is no significant difference between male and female consumers in their green purchase decision. However, variables such as age, education and level of income have shown a significant difference between groups and the effects are somewhat large. Generally, results from this study helps the marketers to be more focused upon designing their promotional activities. In the future, marketers should concentrate on the consumers aged 40 years old and above, possessed at least a bachelor degree and income of above RM5000 to promote green products. This study adds to the literature in green marketing. It represents findings from developing country that can be used for future comparative studies related to green market segmentation. The findings have strong implications to both academic and industry, particularly on the aspect of consumers’ readiness to accept green products as their future way of life. Keywords: Green Consumers, Green Marketing, Demographic Segmentation, Green Purchase Decision 1. INTRODUCTION Green marketing is becoming a popular terminology used by many companies around the globe [1][2] to promote products that are less harmful to the environment and health. Nowadays, consumers have shown their greatest concern about environmental protection and green purchase activities [3,4]. The popularity of going green has inspired many companies to adopt this idea for future marketing strategy and business sustainability [5,6]. Such efforts bring into a new dimension of relationship between consumers and companies. Recent studies have shown an increasing trend of consumers‟ awareness due to the massive green campaigns and activities done by companies that are very concern about environment and consumer needs [7]. To this regards, consumers‟ environmental concern can be recognized from their purchase involvement [8,9]. Therefore, this study attempts to segment the consumers based on their behavioural attitude towards environmental protection and decision to purchase green products. It starts with the overall view of a green marketing and its common characteristics. The importance of green segmentation will be discussed along with the relevant criteria to differentiate each category of consumers. The research methodology, analysis and findings, as well as implications were also highlighted to better understand the green segmentation. 2. LITERATURE REVIEW Green Marketing, Green Products and Green Consumers Green marketing can be generally defined as the management process that identifies, anticipates and satisfies the needs and wants of customers and society in a profitable and sustainable way [10]. Studies about green marketing can be traced back as early as 1970s [11]. During the time period, focus was given on the environmentally friendly consumers. Since then, the issue of protecting the environment and green consumerism have becoming the centre of attention among academic researchers [12]. In due course, many countries started to impose legislations on the environmental protection [13]. Thus far, the topic of green marketing focuses on the factors affecting the environmental consciousness, acceptance of green products and purchase decisions. Relating to its offerings, green product could be seen as a product developed to minimize or eliminate the harmful effect on human‟s health and the environment via the minimisation of non-renewable resource usage, avoidance of toxic materials and lastly the usage of renewable resource will take place in accordance to their rate of replenishment [14]. Green products are not limited to the food and beverages, but also applicable to the electrical appliances and vehicles. To this extent, consumers who take into account the environmental impact on their consumption pattern and willing to change their purchasing behaviour can be regarded as green consumers [8,15,16]. These consumers have the tendency to purchase green products and feel proud to be associated with green activities. In marketing, green consumers appear to be an important element that must be considered by companies [17,18]. Furthermore, the increasing number of green companies has made market segmentation becoming more important especially during the early phase of developing an effective market targeting and brand positioning [19]. Although some studies against the idea of segmenting the green consumers [20], this topic remains important from a business perspective, especially towards the establishment of a future marketing strategy. Characteristics of Green Segmentation Market segmentation recognizes the grouping process based on the consumers‟ identical characteristics such as demographic, psychographic and behavioural segmentation [21]. However, apart from certain demographical characteristics (i.e. gender and age), the task to segments the market is a daunting process. Therefore, it is argued that an adoption of existing observable descriptive characteristics is essential to understand the consumers‟ perception towards green products and their intention to purchase.