Consumer Perspectives on the Sustainability of the Malaysian Palm Oil Supply Chain: Awareness, Price Sensitivity, and Certification Impacts

N. Sureshkumar P.P. Narayanan, Heri Fathurahman, Nursaadatun Nisak Ahmad, Farha Ghapar, Li Lian Chew, Veera Pandiyan Kaliani Sundram

Research output: Contribution to journalArticlepeer-review

Abstract

The purpose of this study is to investigate the sustainability of the Malaysian palm oil supply chain from the perspective of consumer behavior. Specifically, it aims to assess consumer awareness of the environmental and social implications of palm oil production, examine the impact of price sensitivity on purchasing decisions, and explore the influence of eco-friendly certifications like the RSPO on consumer preferences. The research employs a structured survey distributed both online and in-person to a diverse sample of Malaysian consumers. With a sample size of 200 respondents, the survey evaluates variables such as customer awareness, price sensitivity, and the influence of product labeling and certification on the demand for sustainable palm oil. The study finds that consumer awareness significantly impacts the demand for sustainable palm oil, with higher awareness correlating with a greater preference for sustainably sourced products. Price sensitivity remains a barrier, as many consumers are reluctant to pay premiums for eco-friendly options. Furthermore, clear and credible product labeling and certifications like RSPO positively influence consumer trust and demand for sustainable palm oil. Policymakers and industry stakeholders can leverage these insights to develop targeted strategies that promote sustainable palm oil practices. This study contributes to the existing literature by providing a comprehensive analysis of the factors influencing consumer demand for sustainable palm oil in Malaysia, a major global producer. It integrates theories such as the Theory of Planned Behavior, Price-Quality Inference Theory, and Signaling Theory to explain consumer behavior dynamics.

Original languageEnglish
Pages (from-to)408-436
Number of pages29
JournalMalaysian Journal of Consumer and Family Economics
Volume33
DOIs
Publication statusPublished - Dec 2024

Keywords

  • consumer behaviour
  • eco-friendly certification
  • environmental awareness
  • Malaysia
  • price sensitivity
  • sustainable palm oil

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