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  • Leonard Robinson Chin

    November 4, 2021 at 3:45 pm

    Government intervention would refer to government policies that are imposed on organizations that organizations would need comply with. One example of such government policy is the No Plastic Bag Initiative which is introduced by the government of Malaysia not too long ago.
    Looking at the consumer of Malaysia behavior prior to the implementation of the No Plastic Bag policy we can draw the conclusion that Malaysian really love their plastic bags by looking at the scenes of trolleys full of plastic bags being pushed to the cars after an hour of grocery shopping. However, when the No Plastic Bag policy was imposed there is a charge for the plastic bag of 20 cents and in some states no plastic bags at all. (the policy is governed by local state legislature).

    Understanding the consumer behavior when the policy was first implemented the supermarket began selling their recyclable / reusable bags placed at the check out aisle. This bag go for a couple of ringgit to tens of ringgits for fancy branded ones. In the initial months of the implementation of the No Plastic Bag policy, supermarkets made a killing selling such reusable bags as it was evident many consumers are not bringing back the reusable bags and needing to purchase new bags each time they shop.

    But over time, this practice of being your own reusable bag was slowly catching on and the sale of reusable bags would fall. Understanding this behavior change, supermarket then focus on other ways instead of just selling the reusable bag. They introduce reward system like points to their loyalty program (i.e. Tesco – Green Points, Village Grocer – Bites Points) on the number of reusable bags you use. The more bags you bring the more points you get. It is my opinion here this is done in a way to encourage more purchases to fill up the many reusable bags that is brought to the store.
    Understanding the consumer behavior in response to the No Plastic Bag policy in my opinion would provide opportunities for the supermarket to gain extra revenue streams and provide a continual revenue stream in conjunction with their existing market strategies.