Influence of Value-Based Marketing on Generation Z towards Sustainable Consumption of Pertiwi’s Sustainable Products
Elshanti Nabiihah Salma1*, Sri Hartati1
1 School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
*Corresponding Author: [email protected] Accepted: 15 August 2022 | Published: 1 September 2022
DOI:https://doi.org/10.55057/ajrbm.2022.4.3.12
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Abstract: In terms of the amount of plastic waste currently being dumped into the South China Sea per person (0.52 kg/person/garbage), Indonesia is currently ranked second in the world.
These problems can create regional and ecological environmental hazards. The current state of the Earth is the result of irresponsible production and consumption. The sustainable consumption model therefore reduces the use of natural resources, toxic materials, gas emissions, and pollutants over the life cycle of a product or service to meet basic needs and improve quality of life. The factor that supports the shift in consumption patterns towards sustainable consumerism is the consumer behavior of Generation Z which is influenced by environmental and social factors. Unfortunately, Pertiwi is currently still having difficulties in determining a marketing strategy using the right value-based marketing. Therefore, this study undertakes consumer understanding by identifying the relationship between value-based marketing and sustainable consumption and the general motivational factors that support Generation Z to engage in sustainable consumption. This research was conducted using qualitative methods through narrative research interviews with 6 female informants who at least had experience using environmentally friendly products in Bandung and analyzed using manual and selective coding methods. The results show that value-based marketing increases sustainable consumption, and there is an impact of value-based marketing on daily consumption. In addition, it is explained about the views of the informants regarding the increase in value based marketing. These findings can help Pertiwi to develop a value-based marketing strategy that is carried out by Pertiwi itself.
Keywords: Consumption, Marketing, Sustainable, Value
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1. Introduction
In terms of the amount of plastic waste that it currently dumps into the South China Sea per person (0.52 kg/person/garbage), Indonesia is currently ranked second in the world (Jambeck et al., 2015). These problems can endanger diversity as well as the regional ecology. The state of affairs on Earth now is a result of mindless production and consumption. The sustainable consumption model decreases the use of natural resources, toxic materials, gas emissions, and pollutants over the course of a product's or service's life cycle in order to meet basic necessities and enhance quality of life, according to the 1994 Oslo Symposium. There is no reason to limit how much individuals consume, how productively firms function, or to compromise the standard of living for anyone.
According to Voola & O'Cass (2010), the last ten years have been dominated by market competition. Businesses need to treat marketing with respect. The marketing industry is therefore essential to carrying out the business plan. Maturity, which allows a company to access the right markets, must be the most important component in establishing a marketing strategy. As the world develops and new events occur occasionally, so do marketing strategies.
Undoubtedly, this marketing idea is related to these developments. The inability of marketing efforts to date to win customer confidence is due to fraud and the poor quality of the given goods or services. The company's reputation is obviously harmed by this.
Instead of only craving stuff, consumers of produced commodities also crave answers to their issues. addressing customer issues through the company's alternative actions and principles. To satisfy the demands of consumers of manufactured goods, it is insufficient. Because the brand is preferred above rivals, the corporation must provide a differentiating advantage (Doyle P, 2008). Rosadi (2021) conducted consumer research as well, and according to his findings, 28%
of consumers would be willing to pay more for a product if they were aware of it and believed in its sustainability. If customers feel confident in a sustainable product, it can be assumed that they wish to participate through product purchases.
Another factor supporting this shift in consumption patterns toward sustainable consumerism is the behaviour of Generation Z consumers, who are just starting to understand how important it is to protect the environment and nature. This generation's purchasing decisions are influenced by both environmental and social factors. According to a survey, generation Z consumers think they can support a healthy lifestyle and lessen environmental effects to enable people and families to become used to this life force (Ayunda S, Kusdibyo L, Alty F, 2021).
This data indicates that generation z is already aware of values-based marketing in Indonesia, but there hasn't been a significant study or one that focuses on how generation z specifically benefits from sustainable consumption. Therefore, understanding the connection is crucial.
2. Literature Review
2.1 Sustainable Consumption
The standard definition of sustainable consumption is the application of goods and services that enhance basic needs and improve quality of life while minimising the use of natural resources, toxic materials, and emissions of waste and pollutants over the course of a life cycle, all with the intention of not adversely affecting the needs of future generations (Reisch, 1998).
The definition of sustainable consumption, however, according to Kronenberg and Dobson in 2007, is that consumption is necessary for human development and enhances quality of life in the short, medium, and long terms when people are able to meet their basic needs while maintaining a balance with certain ecological and socioeconomic standards.
2.2 Value Based Marketing
The American Marketing Association defined marketing as a process for managing customer relationships in a way that is profitable for the organisation and its stakeholders in the company and may influence or be affected by the business in Kotler and Keller's 2009 book. This definition was cited by Kotler and Keller. In contrast, marketing is a social administrative process, according to Putri in 2017, where people and groups produce and trade goods and services to fulfil their needs and desires. According to Kertajaya in 2008, a marketing strategy is a way to achieve marketing objectives, which are steps a firm may take to harness the power of a brand and place itself in the minds of consumers. Value based marketing strategy is to maximise the value of those who own shares in a company by making decisions related to the
market. Usually the decisions are how to answer needs and meet market needs, realise the added value possessed by a sustainable business, and a potential value possessed by a certain material or element in life that will be committed to the market (Doyle, Peter 2000).
Figure 1: Value Based Marketing Strategy
2.3 Generation Z
They belong to the generation known as Generation Z, which spans the years 1995 to 2010.
Generation Y, who was born between 1980 and 1995, gave birth to Generation Z. Born between 1960 and 1980, Generation X gave birth to Generation Y. Baby boomers, who were born between 1946 and 1960, gave rise to Generation X. According to research done in 2016 by Bencsik, Csikos, and Juhez, which included Generation Z in the generation group, the Veteran Generation, which was born between 1925 and 1946, gave birth to the Baby Boom.
The uniform outlook will help the reader to follow the article easily. This can be obtained They belong to the Generation Z time period, born between 1995 and 2010. People who were born after 1995—the year when the internet started to be used for commerce—are referred to as members of Generation Z. (Mowery, David C and Simcoe, Timothy 2002).
Generation Z has different traits than the generation before it, the Millennials, because they have grown up with the most exposure to digital technology. Currently, Generation Z is through an educational process that heavily utilises digital technologies (Turner, Anthony 2015). Due to its willingness to spend money and active social commitment that considers both the present situation and the effects it will have in the future, Generation Z has emerged as a significant consumer group in the fight to preserve the environment (Song et al, 2020)
Maximize the value of those who own shares in a company by making decisions related to the market
How to answer needs and meet market needs
Realize the added value possessed by a sustainable business
Potential value possessed by a certain material or element in life that will be
committed to the market
3. Research Method 3.1 Research Design
Figure 2: Research Design
This study's research design is depicted in Figure 1. This study's research design begins with the identification of a problem and ends with conclusions and recommendations.
3.2 Research Approach
The researcher employed a qualitative research design and procedures for gathering data for narrative research. A qualitative approach was taken in the research. The term "methodology"
refers to a way that scholars approach issues and find solutions (Mulyana, 2008). Data analysis is a thought process that starts from one or more individual phenomena to draw a conclusion and research findings, according to Sugiyono in 2007. This thinking process is used in research that examines natural objects where the researcher is the primary instrument and data accumulation techniques are used in combination. The purpose of qualitative research is to provide more focused and preceding meaning than generalisation (Mulyana, 2008). A flexible research method with an open design is known as qualitative research.
Narrative data gathering methods are used in qualitative research. Descriptive research has several forms and has roots in various humanitarian and sociological disciplines, according to Daiute & Lightfoot in Creswell in 2004. In qualitative research, the term "narrative" can refer to a theme that is presented in a particular text or subject or to a text utilised in a setting or method of inquiry (Chase, 2005). According to James Schreiber and Kimberly Asner-Self in 2011, narrative research is the study of people's lives as they are revealed through the stories of their experiences. It also includes a discussion of what experiences mean to particular people.
3.3 Data Collection
The process of collecting data in qualitative research will be largely determined by the role of researchers related to conflicts that can exist in the data collection process (Creswell, 2018).
The researcher conducted interviews with 6 informants who met the researcher's criteria. These interviews were conducted from July 2022 face-to-face via online, such as Zoom Video Communications. The online interview was conducted due to the pandemic situation.
4. Results and Discussion
Qualitative analysis was collected from the explanations of informants which were then divided into 7 subjects:
1. Value based marketing increases sustainable consumption in generation Z.
2. Improvements in value based marketing.
3. Value-based marketing impacts the daily consumption of Generation Z.
4. Generation Z's view of value based marketing.
5. Standard product, what are they looking for from products to support sustainable consumption activities.
6. Motivation, what are they motivations for sustainable consumption activities.
7. Challenge, what are the challenges they face in carrying out sustainable consumption activities.
4.1 Value based marketing increase sustainable consumption
Informants have quite interesting reasons regarding their views on value based marketing that can increase sustainable consumption activities in their daily lives. There are similarities in answering because the existence of value-based marketing increasingly validates beliefs to carry out sustainable consumption, and from the marketing method which is usually applied with endorsement content, the informants feel they are being influenced to carry out sustainable consumption. In addition, if value-based marketing certainly answers the need for informants, sustainable consumption activities will increase.
4.2 Improvements in value based marketing
The things that make improvements to value based marketing and informants interested in sustainable consumption are actually correct, but when combined with other marketing methods, they have greater power but still adhere to the main principles of the marketing strategy.
4.3 Impact value-based marketing has on daily consumption
Informants themselves in their daily activities feel that value-based marketing itself has an impact on products/services which of course are in accordance with the needs of the customer where this need is a daily consumption so that this will have a major impact on the company if it makes the right product and is needed by consumers.
4.4 View on value based marketing
At this time the informants understand and view that this value-based marketing can have an impact on sustainable consumption carried out by generation Z because it departs from the customer's own value, so that customers do not have to bother looking for other products and this makes generation Z loyal. The brand is very prominent, this makes it easy for many Generation Z to find what they need, because the marketing also clearly explains the value of a product or service.
4.5 Standard product
Informants focus on finding products that can meet their daily needs, especially their basic needs. Informants measure it by looking at the value of themselves, especially the value to support the sustainable consumption activities carried out. Products that can have a good impact on the environment are products that are sought after such as high-quality products so that goods can withstand long-term use so that this can save on product purchases. This is related and has an impact on reducing the amount of waste. Another preference is products made from materials that are not harmful to the environment and users or from natural materials, this is related to the waste from the products consumed which are easily biodegradable in the environment.
4.6 Motivation
The informants themselves have quite a lot of reasons for what motivates them to do sustainable consumption. So that this can be one way for brands to take steps to be able to take action so that Generation Z can be aware of their products. The motivation is that the informant is already concerned about his own environment, this begins with the large amount of information obtained by the informant and enters the informant through both social media accounts and others. Then this is also supported by the nearby environment that has carried out sustainable consumption activities. Then another interesting thing is the issue of worrying about environmental conditions, this encourages informants to make sustainable consumption. Then the last one is where by trying to carry out sustainable consumption activities, informants feel happy because they can contribute to the environment so that these activities are continued continuously.
4.7 Challenge
In addition, the challenge faced in carrying out sustainable consumption activities is where the informant feels the hardest thing is consistency and this is usually influenced by the surrounding environment that is not yet supportive. For example, when you buy goods but the seller requires you to use a plastic bag, that's where the challenge arises. Then in the use of products that can be used repeatedly, the informants feel there are complications, such as the need to carry around and take up space.
5. Conclusion
Based on the results of previous research and discussion, there is an effect of value based marketing on generation Z towards sustainable consumption as shown by the existence of Value based marketing increases sustainable consumption in generation Z and value-based marketing impacts the daily consumption of Generation Z. In this activity, informants focus on Indonesian female consumers, especially those in Bandung aged 17-27 who are of childbearing age and born in Generation Z who have an interest in using sustainable ( environmentally friendly) products.
In addition, respondents should at least have experience in using environmentally friendly products, which can tell researchers about their experiences by talking about their lifestyle and how they think about it. Therefore, in this activity, it is certain that the informants share information about their daily consumption, especially sustainable consumption, including the standard of the product they consume, their motivation to do so, and the challenges they face.
This factor can be a very potential factor for making a value based marketing strategy based on the value of generation z who carry out sustainable consumption.
The recommended value based marketing strategies for Pertiwi and must be prepared in order to successfully introduce their products to the market are;
1) Value based marketing is increasingly validating beliefs to carry out sustainable consumption, and from the marketing method which is usually applied with endorsement content, the informants feel they are being influenced to carry out sustainable consumption. In addition, if value-based marketing certainly answers the need for informants, sustainable consumption activities will increase.
2) If value based marketing is combined with another marketing strategy, it will have greater power, but it will still rely on the primary principle of the marketing strategy.
3) Value based marketing itself has an impact on products/services which of course are in accordance with the needs of the customer where this need is a daily consumption so
that this will have a major impact on the company if it makes the right product and is needed by consumers.
4) Starting from the customer value itself, then the value of the brand is highly emphasised, this makes it easy for many Generation Z to find what they need, because the marketing also clearly explains the value of a product.
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