A study on Consumers Purchasing Intention towards Eco-Friendly products

Submitted To: Dr Smriti Sood

Submitted By: Singh Kumar

Anil Kumar Pankaj

Vikas Sharma

1. INTRODUCTION 1.1 Eco-friendly Products Eco friendly products reduce the aspects that produce the harm to environment. These are the type of products that keep the environment clean and away from the harm and also avoid the different kind of pollution. These products save the environment from toxicity in all of their three departments i.e. either there manufacturing, their use and their disposal, in all aspects these products keep the environment friendly. These products are basically used to reduce different kinds of pollution such as green house effect, air pollution, water pollution such as landfill etc. These products are made by different kind of materials which are recycled in nature. Nowadays there are lot of products which are based on eco friendly phenomenon such as eco paper, eco friendly shoes and many other products of daily use to save the environment from pollution. These products are also called as Green Products or Environmental Friendly. [1] 1.2 Consumer purchasing intention towards eco-friendly products Eco-friendly purchase intention is conceptualized as the probability and willingness of a person to give preference to products having eco-friendly features over other traditional products in their purchase considerations. According to Beckford et al., (2010) and Chan (2001) research studies, eco-friendly purchase intention is a significant predictor of eco-friendly purchase behavior, which means that purchase intention is positively affecting the probability of a customer decision that he will buy eco-friendly products. Chan and Lau (2002) conducted a cross-cultural research study in China and America, wherein consumers in Shanghai and Los Angeles were surveyed, concluded that the asymmetric influence of green purchasing intention on green purchasing behavior warrants further attention. A firm needs to analyze buying behaviour for:

Buyers reactions to a firms marketing strategy has a great impact on the firms success. The marketing concept stresses that a firm should create a Marketing Mix that satisfies customers, therefore need to analyze the what, where, when and how consumers buy. Marketers can better predict how consumers will respond to marketing strategies.

Four types of consumer Purchasing Intention are: Routine Response/Programmed Purchase Intention Limited Decision Making

Extensive Decision Making/Complex high involvement Impulse purchasing intention, no conscious planning. [2]

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1.3 Why Eco-friendly Products are gaining importance Eco friendly products are used to overcome different types of environmental hazards and play an important role in reducing the pollution. It is important to use eco friendly products because the need of the World is much higher as compared to different types of products. Non Eco friendly products cause a lot of pollution in the environment and the usage speed as well as disposing time is much higher than the production of these products. When these products are disposed, they create pollution in the environment and release numerous amounts of toxins in the nature which are harmful for both living beings and the environment. In the production of non eco friendly products, the fore most challenge is the shortage of different kind of resources such as energy, raw material etc. Thus, it is necessary to use eco-friendly products because they are manufactured by used and old material such as recycled material and also reduce the pollution from the environment. So we should use the eco friendly products to keep our recourses and ecology safe. 1.4 Need and significance of the study Man has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately environmental marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives. Four reasons for firms using environmental marketing are as follows: 1. Organizations perceiving environmental marketing to be an opportunity that can be used to achieve its objectives. 2. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more responsible. 3. Competitors' environmental activities pressure firms to change their environmental marketing activities. 4. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior. The information will: 1) provide insight into the real market potential for eco-friendly products, and 2) provide insight about potential strategies for enhancing the purchasing intentions of consumers of eco-friendly products.

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2. LITERATURE REVIEW
(Tan Booi Chen & Lau Teck Chai) The result indicated in the study is that there is no difference between gender in their environmental attitudes and their attitudes on green products. It also indicates no significant relationship between consumers attitude on the environmental protection and their attitude on green products. This means that consumers attitudes on the green products are not facilitated by the positive attitudes of consumers towards environmental protection. The studys results also shows that there is a significant relationship between consumers attitude on governments role and their attitude on green products. [3]

(Issac Cheah) The results in his studies states that the three antecedents of ecoliteracy, interpersonal influence and value orientation have strong correlations with attitudes towards environmentally friendly products. Consumers with favourable attitudes towards environmentally friendly products are more likely to purchase environmentally friendly products. Perceived product necessity moderates the relationship between attitudes toward environmentally friendly products and the willingness to purchase environmentally friendly products. [4] (Jacob Cherian & Jolly Jacob, 2012) One thing that is being reiterated in their study is that the current consumption levels are too high and are unsustainable. Therefore there is a need for green marketing and a need for a shift in the consumers behavior and attitude towards more environmental friendly life styles It is clearly evident from review of literatures and the conceptual model that the majority of the consumers still lack green knowledge and because of such low awareness towards green products organizations are still not pushing towards developing more green products nor are they working hard on green packaging. According to (Rex and Baumann, 2007), those aspects will spur businesses to develop more products from an environmentally friendly perspective. Green marketing is a part of marketing and therefore shares a number of aspects with traditional marketing such as price, promotions, products and place. Even green marketing requires that businesses develop and maintain a strong relationship with all their suppliers, their market intermediaries and significantly with the consumers, according to (Chan et al., 2012). (Ajzen, I., & Fishbein, M. 1980)Theory of reasoned action, people consider the implications of their actions before they decide to engage or not engage in a given behavior. Thus according to the theory, peoples attitudes play a significant role when it comes to their forming an intention to act in a certain behavior. The model primarily argues that people engage in processing that leads to the formation of attitudes, norms and intentions prior to performing the behavior. (Thogersen 2000)It is an integrated marketing communications approach and/or a holistic approach using eco-labels which may better educate consumers on the social and environmental impacts of their consumer purchasing decisions. What companies must remember, however, is that environmental labeling schemes are only a supplement to not a substitute for general
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environmental awareness and educational efforts. In addition, studies have shown that, in making purchasing decisions consumers use labels only when he/she trusts the message conveyed; therefore, labels should be promoted in a way that conveys trust. (Mainieri, Barnett, Valdero, Unipan, and Oskamp 1997). According to various research reports, shoppers are thinking green, but not always buying that way. They surveyed young business professionals about sustainable consumption in India. These young business people also represented young Indian consumers, mainly from the middle and upper socio-economic groups. Our research revealed that awareness and understanding of sustainable consumption among consumers was low; the majority of Indian consumers still buy small, unpackaged goods from low-cost, family-run shops. Even to wealthier Indian consumers, sustainable consumption was felt to imply only consuming less, the concept of consuming differently is a significant but missing factor. ( Beckford et al, (2010) and Chan (2001))Green purchase intention is conceptualized as the probability and willingness of a person to give preference to products having eco-friendly features over other traditional products in their purchase considerations. According to their research studies, green purchase intention is a significant predictor of green purchase behavior, which means that purchase intention is positively affecting the probability of a customer decision that he will buy green products. (Pickett-Baker and Ozaki (2008)) found that respondents considered it good to buy brands that were less damaging to the environment. Though, they revealed that sometimes it is not easy to identify green products. Moreover, respondents indicated that they do not notice much relevant or engaging marketing about these products. Therefore, in order to get effective results from the marketing campaign, marketers must put emphasis on the benefits of the product to the consumer and product improvements, such as a new improved formula or design. Thus, the better use of marketing and portraying a good brand image is crucial to sell green products. (Ali et al., 2010; DSouza, Taghian, Lamb, and Peretiatkos, 2006; Gan, Wee, Ozanne and Kao, 2008). According to study findings that there are many customers who have positive and high intentions to purchase green products but due to higher prices and poorer quality as compare to non-green products, they do not buy them. Hence, along with environmental aspects manufacturers should consider the prices and quality of green products to attract theseconsumers.

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3. OBJECTIVES
Understanding consumers purchasing intentions towards eco-friendly products Objective 1: To determine consumers awareness about eco-friendly products.

Objective 2: To study the relationship between Eco-knowledge (EK), Eco-concern (EC), Perceived product price and consumers purchasing intentions of eco-friendly products.

Objective 3: To study the effect of demographic variables on consumers Purchasing intentions of eco-friendly products.

4. HYPOTHESIS
H1: There is a positive relationship between environmental concern and consumers eco-friendly purchase intentions.

H2: There is a positive relationship between environmental knowledge and consumers eco-friendly purchase intentions.

H3: There is a positive relationship between preceived product price and consumers eco-friendly purchase intentions.

5. RESEARCH METHODOLOGY 5.1 NATURE OF THE STUDY

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The current research is an attempt to investigate the key determinants of consumers friendly purchase intentions.

eco-

The study is descriptive in nature. Descriptive research is designed to describe characteristics of a population or a phenomenon.

5.2 METHODS OF DATA COLLECTION

Both Primary and secondary data will be used in this study. Primary Data: Primary data is the data collected and assembled specifically for the research project at hand. In order to collect the required information to address the overall research questions and hypothesis, self administered questionnaire will be preferred as a survey instrument. Secondary Data: Secondary data is the data that have been previously collected for some purpose other than the one at hand. Secondary data used in this research shall be collected from journals, magazines, web-sites, newspapers, books etc.

5.3 SAMPLING PLAN

Considering the cost, degree of use, advantages and time constraints, the sampling technique followed will be Convenience sampling: It refers to the collection of information from members of population who are conveniently available to provide it. Data will be collected from four departments of Panjab University namely, UBS, UIAMS, Pharma and law by using the convenience sampling technique. Considering all the constraints and requirements i.e. cost of data collection, time, availability and other factors sample size of about 120-150 will be taken for the research.
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5.4 STATISTICAL TECHNIQUES TO BE USED

Analysis of data collected through questionnaires will be done through
simple tabulation Correlation analysis and Chi-square test will be applied to reach to conclusions of the objectives For better understanding and clear depiction pie-charts and bar diagrams will be used.

REFERENCES
1. http://www.solarpowernotes.com/what-are-eco-friendly-

products.html#.UPvF1h0Us1M
2. http://www.udel.edu/alex/chapt6.html 3. Tan Booi Chen, Lau Teck Chai,(2010) Attitude towards the Environment and

Green Products: Consumers Perspective, Management Science and Engineering, Vol. 4, No. 2, , pp. 27-39. 4. Issac Cheah, (Curtin University of Technology, Perth, Australia), Ian Phau, (Curtin University of Technology, Perth, Australia) 5. Jacob Cherian1 & Jolly Jacob2, (2012) Green Marketing: A Study of Consumers Attitude towards Environment Friendly Products 6. Rex, E., & Baumann, H. (2007). Beyond ecolabels: what green marketing can learn from conventional marketing. Journal of Cleaner Production, 15(6), 567576. 7. Ajzen, I., & Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behavior. Prentice-Hall, Englewood Cliffs, NJ. 8. Thogersen, John. (2000), Psychological Determinations of Paying Attention to Eco-labels in purchase decisions, Journal of Consumer Policy, Vol. 23, Iss. 3, pp. 285 315. 9. Mainieri, Tina; Barnett, Elaine G. (1997), Green buying: The influence of environmental concern on consumer behavior, Journal of Social Psychology, Vol. 137, Iss.2, pp. 189 205. 10. Beckford, C. L. Jacobs, C. Williams, N and Nahdee, R. (2010), Aboriginal Environmental Wisdom, Stewardship, and Sustainability: Lessons From the Walpole Island First Nations, Ontario, Canada, The journal of environmental education, Vol, 41 No. 4, pp. 239248.
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11. Pickett-Baker, J., and Ozaki, R. (2008), Pro-environmental products: marketing influence on consumer purchase decision, Journal of Consumer Marketing, Vol, 25 No. 5, pp. 281293. 12. Gan, C., Wee, H. Y., Ozanne, L., and Kao, T. H. (2008), Consumers purchasing behavior towards green products in New Zealand, Innovative Marketing, Vol, 4 No. 1, pp. 93-102.

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