DISSERTATION
ON
“A STUDY ON CUSTOMER’S PERCEPTION, ATTITUDE AND
AWARENESS TOWARDS GREEN MARKETING”
SUBMITTED TO
(2017-2019)
SANJIVANI COLLEGE OF ENGINEERING,
DEPT. Of MBA
Certificate
This is to certify that Mr. Yash Avinash Khambekar has submitted a
dissertation project on “A Study on Customer’s Perception, Attitude and
Awareness towards Green Marketing” to Savitribai Phule Pune University,
Pune for the partial fulfilment of Master in Business Administration (M.B.A.).
We further certify that to the best of our knowledge and belief, the matter
presented in this project has not been submitted to any other Degree or Diploma
course.
Dr. A. R. Jaswal
Dr. V.R. Malkar
Internal Guide
Head of Department
External Examiner
DECLARATION
Place:
Date: Yash Avinash Khambekar
MBA-2017-19
INDEX
5 Conclusion
6 Suggestions
8 Bibliography
9 Appendix
A
Research Proposal
ON
(Dr.A.R.Jaswal)
-SUBMITTED BY-
(Yash Khambekar)
Introduction
1.1 Background of the Study
Businesses need to constantly assess the latest and most attractive marketing trends.
Marketing trends can be found out by continually researching about the changes in consumer
behaviour in the marketplace. By identifying the changes in the consumer behavior, the
businesses can modify their offering to the consumers. Consumers today are more concerned
about environmental degradation and negative impact of their uses of product and services on
environment. The reason for this concern could be visible climatic changes, global warming
and increasing air and water pollution. Thus using green marketing by the organizations not
only provides an opportunity to meet consumer expectations and address their environmental
concerns, but also to gain a competitive advantage and a strong consumer base.
Green marketing is also termed as environmental marketing or ecological marketing.
According to American Marketing Association, marketing of products that are presumed to
be environmentally safe is called as Green Marketing. Thus wide range of activities are
covered under green marketing, which includes modifying the product, making changes in
the production process and packaging, as well as modifying advertising or removing any
activity that impacts the environment in negative way. Today, the Earth faces more
environmental issues than ever before, hence it is imperative for companies to make and
market themselves as environment friendly. Green marketing is emerging as a popular
promotional strategy owing to increased consumer awareness and concerns.
The concept of green or ecological marketing calls upon businesses to follow ethical and
green practices while dealing with customers, suppliers, dealers, and employees. Companies
have started marketing themselves as green companies. Even the Public Sector Units and
state governments are now paying a lot of attention towards environmental issues such as
global warming, pollution, or water contamination and have started taking steps to prevent
environmental pollution. In a recent survey conducted by National Geographic Society and
the international polling firm Globescan (2010) to determine consumers’ green attitude called
“Consumer Greendex”, the top scoring consumers were in the developing economies of
India, Brazil and China while industrialized countries ranked at the bottom. Consumers
showing the largest increase in environmentally sustainable behavior were in India, Russia
and the United States (Howe et al., 2010). A company to be successful in green marketing
requires to be committed to operate in environmentally friendly ways.
Respondent
A respondent is a person who replies to something, especially one supplying information for
a questionnaire.
In this study, respondents are the customers who are using green products.
Population
All the students of Sanjivani Group of Institutes, who are studying in MBA I & II year and
BBM I, II & III year. Total population is 306. To decide the population I have taken help of
data given by college.
Population Total no. % Sample
MBA I Yr. 60 20 33
MBA II Yr. 60 20 33
BBM I Yr. 88 29 48
BBM II Yr. 74 24 40
Sampling
Sampling is concerned with the selection of a subset of individuals from within a statistical
population to estimate characteristics of the whole population. Two advantages of sampling
are that the cost is lower and data collection is faster than measuring the entire population.
Sample size
A sample of 167 respondents was selected for the survey according to Morgan’s Table.
Sampling Method
Samples can be either probability samples or non-probability samples. With probability
samples each element has a known probability of being included in the sample but the non-
probability samples do not allow the researcher to determine this probability. Probability
samples are those based on simple random sampling, systematic sampling, stratified
sampling, cluster/area sampling whereas non-probability samples are those based on
convenience sampling, judgement sampling and quota sampling techniques.
Limitations
Duration given for completion of project it is not sufficient for the complete analysis
and study.
It is very difficult to find out the people, who are aware about green products and
green marketing,
The sources related with secondary data about this problem are limited.
2.5 Plan of Study
S. N. Main tasks to be completed End Date
Conclusion
Green marketing is a tool for protecting the environment for the future generation. Now this
is the right time to select “Green Marketing” globally. It will come with drastic change in the
world of business if all nations will make strict roles because green marketing is essential to
save world from pollution.
The study has implications for marketers as well as consumers and makes a good case for
start of an era of green marketing in India. The study since focused on a limited geographical
area has limited generalizability but provides good insights regarding behaviour of consumers
towards green products.
INTRODUCTION
Businesses need to constantly assess the latest and most attractive marketing trends.
Marketing trends can be found out by continually researching about the changes in consumer
behavior in the marketplace. By identifying the changes in the consumer behavior, the
businesses can modify their offering to the consumers. Consumers today are more concerned
about environmental degradation and negative impact of their uses of product and services on
environment. The reason for this concern could be visible climatic changes, global warming
and increasing air and water pollution. Thus using green marketing by the organizations not
only provides an opportunity to meet consumer expectations and address their environmental
concerns, but also to gain a competitive advantage and a strong consumer base.
The concept of green or ecological marketing calls upon businesses to follow ethical and
green practices while dealing with customers, suppliers, dealers, and employees. Companies
have started marketing themselves as green companies. Even the Public Sector Units and
state governments are now paying a lot of attention towards environmental issues such as
global warming, pollution, or water contamination and have started taking steps to prevent
environmental pollution. In a recent survey conducted by National Geographic Society and
the international polling firm Globescan (2010) to determine consumers’ green attitude called
“Consumer Greendex”, the top scoring consumers were in the developing economies of
India, Brazil and China while industrialized countries ranked at the bottom. Consumers
showing the largest increase in environmentally sustainable behavior were in India, Russia
and the United States (Howe et al., 2010). A company to be successful in green marketing
requires to be committed to operate in environmentally friendly ways.
6. Durable (long-lasting).
7. Biodegradable.
8. Renewable.
9. Reused products.
10. Third party certified to public or transport standard (e.g., organic, certified wood)
Many consumer durable companies are now marketing their products with Energy Star Label
stating that their use will reduce the energy consumption and consumers can save a lot of
money on electricity consumption over a period of time. For example, Godrej Consumer
Products is marketing its product through green marketing and gives additional incentive to
buyers to exchange their old products with latest green and environmental friendly products.
The advertisements try to persuade the buyers to adopt a green lifestyle and contribute in
development of a greener planet. NDTV a major media group promotes green values through
its campaign Greenathon. NDTV Greenathon as they call it organizes various philanthropic
and social activities to raise awareness regarding environmental issues at the same time
contribute to the social causes like electrification of rural areas etc. Philips is marketing its
Compact Fluorescent Light (CFL) as “Marathon”, highlighting its new “super long life” and
energy efficiency. Many companies are now offering more eco-friendly alternatives for their
customers; re-cycled products are one of the most popular alternatives that benefit the
environment. Companies are now focusing on not to use plastic bags, instead they use carry
bag made up of recycled paper (for example, Titan, Tanishq have made a corporate policy
that the goods will be delivered or given to customers only in the carry bags made out of
recycled paper). Idea Cellular Limited also launched an advertisement stating saving trees
towards their corporate social responsibility. Kansai Nerolac Paints is marketing themselves
as green as they have removed hazardous heavy metals from their paints and are marketing
their lead free paints in India. Dell focuses on producing green IT products under their
strategy called “Go Green with Dell”. Dell products are also coming in eco-friendly
packaging with a system recycling kit bundled along. They are also focusing on green
innovations from data-center efficiency to the use of eco-friendly materials for everything
from chassis design to product packaging.
Major electronic goods manufacturing organizations are selling their products with star
energy ratings that help to consume less energy. More is the star rating (maximum rating is 5
star) of the electrical/electronic appliance, less is the energy consumed. Nokia has come up
with the concept of recycling of phones to save the natural resources. In 2007, IBM launched
Project Big Green to help clients around the world improve the efficiency of IT and better
optimized their data center resources. IBM has software and services technologies to help
businesses reduce data center energy consumption and cut energy costs by more than 40
percent.
Efforts are being made at government and industry level to protect environment. In India
Environment Protection Act in was implemented in 1986 and Environment Audit in 1992 for
the protection of the environment. New Delhi, Indian capital, was one of the most polluted
cities until Supreme Court of India intervened to change to alternative fuels. In 2002,
Supreme Court issued a directive to completely adopt CNG in all public transport systems to
curb pollution. Many greenhouse gas reduction markets have emerged over a period of time
that can catalyze projects with important local, environmental, economic, and quality-of-life
benefits. Kyoto Protocol’s Clean Development Mechanism (CDM) is one of the steps
towards greenhouse gas reduction. In the construction industry, builder lobby are now using
fly ash bricks to reduce soil erosion due to manufacturing of traditional bricks. They are also
using solar panels to generate electricity for common passage lighting, elevators to reduce the
traditional electricity consumption. Footwear Design and Development Institute (FDDI) is
focusing on re-use of tyres, using unconventional methods and innovatively creating footwear
and accessories from old and recycled tyres. Green products have also proven to be recession
proof through the economic downturn of 2008 and 2009. According to a Datamonitor study
in the first six months of 2009 there were over 500 new product launches of goods that claim
themselves as eco-friendly.
Green marketing term was first discussed in a seminar on ―Ecological Marketing‖ organized
by American Marketing Association (AMA) in 1975 and took its place in the literature. The
term green marketing came into prominence in the late 1980s and early 1990s. The first wave
of green marketing occurred in the 1980s. The tangible milestone for the first wave of green
marketing came in the form of published books, both of which were called Green Marketing.
They were by Ken Pattie (1992) in the United Kingdom and by Jacquelyn Ottman (1993) in
the United States of America. According to Peattie (2001), the evolution of green marketing
has three phases.
First phase was termed as "Ecological" green marketing, and during this period all marketing
activities were concerned to help environmental problems and provide remedies for
environmental problems.
Second phase was "Environmental" green marketing and the focus shifted on clean
technology that involved designing of innovative new products, which take care of pollution
and waste issues.
Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s
and early 2000 concerned with developing good quality products which can meet consumers
need by focusing on the quality, performance, pricing and convenience in an environment
friendly way.
Characteristics of Green Products:
8. Products that have eco-friendly packaging i.e. reusable, refillable containers etc.
According to Ginsberg and Bloom, Companies can be classified on the basis of utilisation of
these elements companies can classify in four categories:
Products those are originally grown. Products with natural ingredients. Products those are
recyclable, reusable and biodegradable. Products contents under approved chemical. Products
containing recycled contents, non- toxic chemical. Products that do not harm or pollute the
environment Products that will not tested on animals.
The impulse to go “green” is spreading faster than morning glories. Organizations of all types
are launching green campaigns-from London’s congestion charge on automobiles to Wal-
Mart stores push to sell organic food. According to a 2007 McKinney’s Survey of 7,751
people in Brazil, Canada,
China, France, Germany, India, the UK and the US, 87% consumers worry about the
environmental and social impact of products they buy. But when it comes to actually buying.
Green goods, words and deeds often part ways. No more than 33 % of consumers of survey
are ready to buy green products or have already done so. A global Synovate survey conducted
in 2007 in association with Aegis, and repeated in 2008 in association with BBC World, also
found that consumer in most countries are becoming more aware and willing to act on
environmental concerns. According to comprehensive global report by Global Industry
Analysts Inc. of 2011, the global market of green marketing is projected to reach $3.5 trillion
by the year 2017, driven by the rising awareness about environmental issues among
consumers, governments and businesses. Further, 12% of the US population is identified as
“True Greens” by Mintel (a market research firm), who are consumers seeking out and
buying green products.
In India, the concept of Green Marketing has been utilizing right from the use of biogas in the
villages to using environment-friendly products like bamboo furniture, CFL, etc. In fact, the
pottery made from earthenware and the use of traditional surai and matka for drinking cool
water rather than the refrigerator, is another interesting example? Use of steel utensils which
are reusable, rather than disposable plates, can also be viewed as a green initiative. The use of
coolers rather than air conditioners goes a long way in reducing the carbon footprint.
However, these traditional items seem to be gradually losing their sheen, with more and more
people using modern gadgets and gizmos. According to Google Trends report 2007, on a
relative basis, more searches for “green marketing” originated from India than from any other
country.
1. Digital Tickets by Indian Railways. :- Recently IRCTC has allowed its customers to
carry PNR no. of their E-Tickets on their laptop and mobiles. Customers do not need to carry
the printed version of their ticket anymore.
2. No Polythene carry bags for free :-Forest & Environmental Ministry of India has ordered
to retail outlets like BigBazar, More, Central, D-Mart etc that they could provide polythene
carry bags to customers only if customers are ready for pay for it.
3. Green IT Project: State Bank of India:-By using eco and power friendly equipment in its
10,000 new ATMs, the banking giant has not only saved power costs and earned carbon
credits, but also set the right example for others to follow. SBI is also entered into green
service known as ―Green Channel Counter‖. SBI is providing many services like; paper less
banking, no deposit slip, no withdrawal form, no checks,no money transactions form all these
transaction are done through SBI shopping & ATM cards. State Bank of India turns to wind
energy to reduce emissions. The wind project is the first step in the State Bank of India's
green banking program dedicated to the reduction of its carbon footprint and promotion of
energy efficient processes, especially among the bank's clients.
4. Lead Free Paints from Kansai Nerolac:- Kansai Nerolac has worked on removing
hazardous heavy metals from their paints. The hazardous heavy metals like lead, mercury,
chromium, arsenic and antimony can have adverse effects on humans. Lead in paints
especially poses danger to human health where it can cause damage to Central Nervous
System, kidney and reproductive system. Children are more prone to lead poisoning leading
to lower intelligence levels and memory loss.
“Green Marketing” is a newer issue in the eyes of marketers. “Green Marketing” is defined
as the marketing of products that are presumed to be environmentally safe. There is a
common perception among the general population that the term green marketing refers only
to advertising or promoting products that possess environmental characteristics. Consumers
want to do the right thing when it comes to protecting the environment and their health. Even
in this economic climate, the green movement is gathering momentum, and it's hard to miss
the deluge of ads introducing new green products from well-known national brands. As
resources are limited and human wants are unlimited, it is important for the marketers to
utilize the resources efficiently without waste as well as to achieve the organization's
objective. So green marketing is inevitable.
Eco-friendly products are products that do not harm the environment, whether in their
production, use or disposal. Some of these going green products when in use, help conserve
energy, minimize carbon footprint or the emission of greenhouse gases, and does not lead to
substantial toxicity or pollution to the environment. Other green products are biodegradable,
recyclable or compostable. Hence, they do not harm the environment or upset the ecological
balance when they are disposed off. Look at the world‘s consumption rate today. Things are
being produced, used and then discarded at a super rapid pace. If we make no attempts to
switch to green alternatives now, in no time to come, we will be surrounded by the pollution
and toxins caused by producing, using and disposing these non-green items. How you
consume, use, and purchase determines what‘s manufactured. Remember learning about
supply and demand in elementary school? In your purchasing, from groceries to cars, from
cat litter to homes, remember that everything you buy has a price - not just in terms of what it
costs you, but what it costs the environment to be manufactured. Buying only eco friendly
products and services is our trump card for controlling global warming, and for giving the
planet a chance to heal. If we focus our purchasing power on buying products made from
recycled paper for instance, the demand for those products will escalate…actually promoting
businesses producing products made from recycled paper, and forcing other companies to
reconsider making their less environmentally sound products. Buying an eco friendly product
from eco-friendly companies will force others to compete for our business by also making
products from recycled paper.
It seems that we have forgotten somewhere along the way that we, the consumers, actually
have the power over what is made and purchased. We have allowed big business media to
drive our purchasing…but that can no longer be the standard to which we hold ourselves.
Demand eco friendly products and services…do your part to save the planet. Don‘t be part of
the herd. Demand what you know is best for you, your family, the economy and the planet.
Choose the products you buy wisely and with a firm commitment to buying green, local and
sustainable. You‘ll feel better…we‘ll all feel better, and our planet can begin to heal. We
hope our eco products definition has made clear what to look for in a green product. Earth
friendly simply means being friendly to nature. Earth is the only planet where human beings
can exist. We need to be eco friendly to save our planet Earth and environment as well as
making it a better place to live in. Million tons of waste is produced in the world every day. If
not much we can make little efforts to help planet Earth. A person being eco friendly not only
helps his surrounding to be less harmful, but also helps the fellow human beings and the
animals around him. One should know the importance of being nature friendly. Nowadays,
eco friendly products are readily available; one can be earth friendly by using these products
and by using organic chemicals instead of harsh ones for their purposes. To be very precise,
being earth friendly or eco friendly has become a necessity, that everybody should take part
in.
Despite these challenges, green marketing has continued to gain adherents, particularly in
light of growing global concern about climate change. This concern has led more companies
to advertise their commitment to reduce their climate impacts, and the effect this is having on
their products and services.
Green marketing has now evolved as one of the major area of interest for marketers as it may
provide competitive advantages. However it requires investment in terms of technology
enhancement, process modification, communicating benefits to customers etc. Many of the
companies in India have now started marketing themselves as green organizations due to
certain government regulations and shift in the preference of the consumers worldwide.
However, not much research with respect to green marketing has been done in India and there
is question about the awareness of green products among consumers. The attitude of Indian
consumers towards green products and the relationship between the attitude and behavior is
also questionable. As green marketing is different from the marketing in traditional way,
marketers need to know the factors that persuade the consumer to buy the green products.
This study aims to resolve the research question that what factors influence the consumer
persuasion to buy the green product or not.
LITERATURE REVIEW & RESEARCH METHODOLOGY
Over the last 50 years, since evolution, Green Marketing has witnessed many success and
pitfalls in both academics and markets. It has evolved from the term marketing of
environmental friendly products to marketing of green products to green marketing.
To get an in-depth insight into the topic of green marketing an extensive literature review is
done on e-libraries like proquest and ebsco, departmental library, journals, books etc.
A search on Ebsco on the topic ‘green marketing’ had generated 239 peer-reviewed full text
papers and a search on proquest generated 171 results. The earliest article found in the search
result dated back to 1971 in Journal of Marketing which shows that in early 70’s
academicians started thinking about environment and social responsibility. Though many
studies are there but very few work has been done in India on Green marketing.
Green marketing came into prominence in the late 1980s and early 1990s. The first book
titled Ecological Marketing was the outcome of first workshop on “Ecological Marketing”,
held by American Marketing Association (AMA) in 1975. Green marketing acquired an
eminent status since early 1990s. There has been occurring about green consumers and green
consumerism in 1970s and 1980s. Henion and Kinnear (1976) defined green consumers as
environmentally conscious consumers while Antil (1984) described green consumerism as a
specific type of socially conscious consumer behaviour with prime focus on protection of
environment. Green consumerism was described as a form of “pro-social” consumer behavior
(Weiner and Doescher, 1991). Michael Polonsky (1994) defined “green marketing as the
marketing that consists of all activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants, such that the satisfaction of these needs and wants
occurs, with minimal detrimental impact on the natural environment.”
Cherian and Jacob (2012) found that consumers lack green knowledge and because of this
low awareness, organizations are still not focusing towards development of green products.
According to Joel Makower (cited by Shafaat & Sultan, 2012), challenges faced by green
marketer also include the lack of standards and common consensus among the public about
what actually constitutes “green”. Despite these challenges, green marketing continues to
gain popularity, particularly in light of growing global concern about climate change.
Companies are coming forward to showcase their commitments to reduce adverse climate
impacts of their products and services. Green marketing can play an important role in
sustainable development so firms must adapt innovative methods to sustain itself in the
competitive environment.
Braimah and Tweneboah-Koduah (2011) studied Ghanaian consumers and have found low
level of awareness towards green marketing issues which affected that purchase decision of
the consumers. Price of green products was also found to be one of the factor that influence
the purchase of green products. However, it was found that young consumers are more likely
to be influenced by green issues.
There are several issues and challenges identified by various researchers with respect to
Green Marketing (Welling and Chavan, 2010). Practicing green marketing initially may
prove to be a costly affair as it encourages green products/services, green technology
(procuring new technology or modification of existing technology), green power/energy
which requires a lot of money to be spent on R&D programs. High investment is required in
marketing promotions to create awareness regarding green products and their uses. Many
customers may not be willing to pay a premium for green products which may affect the sales
of the company. It requires the companies to extensively communicate the presence and
benefits of green marketing to the customers by means of various tools available for
integrated marketing communication. Eco-labeling could be a good way to convince the
customers regarding green products. Consumers might be willing to pay premium price if
they see additional benefit (such as quality, environmentally safe product, fuel-efficient
vehicles, and non-hazardous products) attached with the product. Green Marketing can help
organizations to gain a competitive advantage and a strong consumer base. (Renfro L A,
2010).
Antonio et al (2009) suggested that due to environmental consciousness that has evolved over
time, studies on green consumerism will be the main focus point in future leading to
identifying the consumer attitudes, behaviors and intentions.
Brahma, M. & Dande, R. (2008), The Economic Times, Mumbai, had an article which stated
that, Green Ventures India is a subsidiary of New York based asset management firm Green
Ventures International. The latter recently announced a $300 million India focused fund
aimed at renewable energy products and supporting trading in carbon credits.
Miller (2008) claims that green marketing is a concept that, when implemented effectively,
can improve the customer relationships, image in the market and ability to reach the most
targeted audience, while helping grow the bottom line.
Consumers are substantially aware about green products; however applying green marketing
practices in business operations is not an easy task (Juwaheer, 2005).
Donaldson (2005) in his study realized in the Great Britain that in general the ecological
attitude of consumers changed positively. This study reported the strong faith of consumers in
the known commercial brands and in the feeble behaviour referring to the "green" claims,
which was the main cause behind the consuming failure to interpret their concerns beyond the
environment in their behavior.
Sanjay K. Jain & Gurmeet Kaur (2004) in their study of environmentalism which had fast
emerged as a worldwide phenomenon discussed business firms too have risen to the occasion
and have started responding to environmental challenges by practicing green marketing
strategies. Green consumerism has played a catalytic role in ushering corporate
environmentalism and making business firms green marketing oriented. Based on the data
collected through a field survey, the paper made an assessment of the extent of environmental
awareness, attitudes and behaviour prevalent among consumers in India.
Karna, J., Hansen, E. & Juslin, H. (2003) interpreted that proactive marketers are the most
genuine group in implementing environmental marketing voluntarily and seeking competitive
advantage through environmental friendliness. The results also give evidence that green
values, environmental marketing strategies, structures and functions are logically connected
to each other as hypothesized according to the model of environmental marketing used to
guide this study.
Oyewole, P. (2001) in his paper presented a conceptual link among green marketing,
environmental justice, and industrial ecology. It argues for greater awareness of
environmental justice in the practice for green marketing. A research agenda is finally
suggested to determine consumer's awareness of environmental justice, and their willingness
to bear the costs associated with it.
Prothero, A. & Fitchett, J.A. (2000) argued that greater ecological enlightenment can be
secured through capitalism by using the characteristics of commodity culture to further
progress environmental goals. Marketing not only has the potential to contribute to the
establishment of more sustainable forms of society but, as a principle agent in the operation
and proliferation of commodity discourse, also has a considerable responsibility to do so.
Jacquelyn Ottman, (1998) suggests that from an organizational standpoint, all aspects of
marketing including new product development and communications should be integrated
with environmental considerations. This holistic view of Green Marketing suggests that not
only the suppliers and retailers, but the new stakeholders including educators, community
members, regulators, and NGOs should also be taken into purview. Environmental issues
should not be compromised to satisfy primary customer needs. Organization operating green
practices in their processes and products is considered as environmentally friendly by the
consumers and they prefer to purchase the products of the organization that are marketing
themselves as green organizations.
Kilbourne, W.E. (1998) discussed the failure of green marketing to move beyond the
limitations of the prevailing paradigm. The author identified areas that must be examined for
their effect in the marketing/environment relationship, namely economic, political and
technological dimensions of the cultural frame of reference.
Prothero, A. (1998) introduced several papers discussed in the July 1998 issue of 'Journal of
Marketing Management' focusing on green marketing. This included a citation of the need to
review existing literature on green marketing, an empirical study of United States and
Australian marketing managers, a description of what a green alliance look like in practice in
Great Britain, ecotourism and definitions of green marketing.
Mintel (1995) found a significant gap between consumers concern and actual green
purchasing. It is found that still there are considerable barriers towards the diffusion of more
ecologically oriented consumption styles.
Firms are also forced to become more socially responsible due to the laws laid by the
government towards the protection of the environment. Firms are also pressurized by the
environmental activities adapted by competitors that demand the firms to change their
marketing activities to environmental marketing activities. One of the factors identified that
affects the purchase of green product is its high price in comparison with traditional product.
Price of the product can be reduced by properly designed environmental standards.
Environmental standards can trigger innovations that lower the cost of the product or improve
its value. Such innovation will allow the companies to use a range of inputs more
productively-from raw materials to energy to labor – thus offsetting the cost of improving
environmental impact and hence enhanced resource productivity will make companies more
competitive. Innovation will play a lead role in sustainable development for the companies to
be competitive and resisting innovations will lead to loss of competitiveness in today’s global
economy (Michael Porter and Claas van der Linder, 1995).
First consumer survey was conducted by Vandermerwe and Ollif (1990) stating that more
then 92% European multinationals clamed to have changed their products in response to
green concern. Green products introduction increased by more then double to 11.4% of all
new household products in the USA between 1989 and 1990 and continued to rise to 13.4%
in 1991. In spite of its growing popularity, the green marketing movement faced serious
setbacks in the late 1980s (Peattie and Crane 2005). A 2001 survey conducted by Roper
indicates that during the 1990’s approximately 2/3 of all consumers believed that
environmental protection and economic development can go hand in hand. While perception
is important, actual behavior is crucial to market success. A report (conducted by Mintel
1995) showed only a very slight increase in green consumer since 1990 and a significant gap
between concern and actual purchasing.
Davidson et al. (1985) found that the consumers’ attitude is associated with the knowledge
and personal experience they possess. However inconsistencies were found among the
relationship between consumers’ attitude and their behavior when it comes to green
consumerism.
Here we can say that a plethora of literature is coming on explaining the concept of Green
Marketing and various phenomena related to the concept. Still there is a lack of proper
perceptive on consumer behavior towards their response to Green products.
2.2 Objectives
To find out the customer’s attitude and perception towards green marketing.
To investigate the level of awareness of consumers about green products and
practices.
To identify the brands, consumer associate with green marketing practices.
To identify the factors that influences the customer persuasion to buy green products.
To analyses the level of satisfaction of green product customers through 5 point
scaling techniques.
Research Methodology is the systematic, theoretical analysis of the methods applied to a field
of study. It comprises the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Typically, it encompasses concepts such as paradigm,
theoretical model, phases and quantitative or qualitative techniques.
The methodology is the general research strategy that outlines the way in which research is to
be undertaken and, among other things, identifies the methods to be used in it. These
methods, described in the methodology, define the means or modes of data collection or,
sometimes, how a specific result is to be calculated.
Methodology does not define specific methods, even though much attention is given to the
nature and kinds of processes to be followed in a particular procedure or to attain an
objective.
It is the set of methods and procedures used in collecting and analyzing measures of the
variables specified in the research problem research. The design of a study defines the study
type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and
sub-type (e.g., descriptive-longitudinal case study).
Research problem, hypotheses, independent and dependent variables, experimental design
and, if applicable, data collection methods and a statistical analysis plan. A research design is
a framework that has been created to find answers to research questions.
Primary Data:-
These are the data which are collected from some primary sources i.e., a source of
origin where the data generate.
These are collected for the first time by an investigator or an agency for any statistical
analysis.
“Data which are gathered originally for a certain purpose are known as primary data.”
— Horace Secrist
“Primary data is the data observed or collected directly from first-hand experience.”
Merits:
1. It has high degree of accuracy.
2. For some enquiries, secondary data is not available.
3. These are more reliable.
4. It needs no extra precautions.
Demerits:
1. It requires lot of time.
2. It needs much money.
3. These data can be obtained through skilled persons only.
4. Sometimes, these data are not available altogether.
Primary data is the present study, collected first hand from the target segment through
questionnaire i.e. the customers or common people.
Secondary Data:-
These are the data which are collected from some secondary source i.e. the source of
reservation storage where the data is collected by one person and used by other
agency. These are collected as primary data and used by other as secondary data.
“The data which are used in an investigation, but which have been gathered originally
by someone else for some other purpose are known as secondary data.” — Blair.
“Published data and the data collected in the past or other parties is Called secondary
data”
Merits:
1. It is easy to collect.
Demerits:
I have collected secondary data from Internet (related websites), Research Papers and Books
etc.
2.3.3 Sampling:
Sampling is a statistical procedure that is concerned with the selection of the individual
observation; it helps us to make statistical inferences about the population.
In sampling, we assume that samples are drawn from the population and sample means and
population means are equal. A population can be defined as a whole that includes all items
and characteristics of the research taken into study. However, gathering all this information is
time consuming and costly. We therefore make inferences about the population with the help
of samples.
A) Random sampling:
In data collection, every individual observation has equal probability to be selected into a
sample. In random sampling, there should be no pattern when drawing a sample.
Significance: Significance is the percent of chance that a relationship may be found in sample
data due to luck. Researchers often use the 0.05% significance level.
Simple random sampling: By using the random number generator technique, the
researcher draws a sample from the population called simple random sampling. Simple
random samplings are of two types. One is when samples are drawn with replacements, and
the second is when samples are drawn without replacements.
Stratified simple random sampling: In stratified simple random sampling, a proportion
from strata of the population is selected using simple random sampling. For example, a fixed
proportion is taken from every class from a school.
Multistage stratified random sampling: In multistage stratified random sampling, a
proportion of strata is selected from a homogeneous group using simple random sampling.
For example, from the nth class and nth stream, a sample is drawn called the multistage
stratified random sampling.
Cluster sampling: Cluster sampling occurs when a random sample is drawn from certain
aggregation geographical groups.
B) Non-random sampling:
Non-random sampling is widely used in qualitative research. Random sampling is too costly
in qualitative research.
Availability sampling: Availability sampling occurs when the researcher selects the sample
based on the availability of a sample. This method is also called haphazard sampling. E-mail
surveys are an example of availability sampling.
Quota sampling: This method is similar to the availability sampling method, but with the
constraint that the sample is drawn proportionally by strata.
Expert sampling: This method is also known as judgment sampling. In this method, a
researcher collects the samples by taking interviews from a panel of individuals known to be
experts in a field.
Respondent
A respondent is a person who replies to something, especially one supplying information for
a questionnaire.
In this study, respondents are the customers who are using green products.
2.3.4 Population
All the students of Sanjivani Group of Institutes, who are studying in MBA I & II year and
BBM I, II & III year. Total population is 306. To decide the population I have taken help of
data given by college.
MBA I Yr. 60 20 33
MBA II Yr. 60 20 33
BBM I Yr. 88 29 48
BBM II Yr. 74 24 40
A sample of 167 respondents was selected for the survey according to Morgan’s Table.
2.3.6 Sampling Method
Researcher has collected data only from students of Management Studies (MBA &
BBA) of Sanjivani Group of Institutes which is situated in Kopargaon.
Researcher has collected primary data in the month of February 2019 only.
Limitations:
Duration given for completion of project it is not sufficient for the complete analysis
and study.
It is very difficult to find out the people, who are aware about green products and
green marketing,
The sources related with secondary data about this problem are limited.
Data Analysis
3.1 Analysis of Gender Wise Composition of Customers.
Table 3.1
1 Female 65 38.9
Chart 3.1
Gender
65, 39%
Female
Male
102, 61%
Interpretation:
Table 3.2
Chart 3.2
Age
7, 4%
22, 13%
Below 18
18-25 Years
Above 25
138, 83%
Interpretation:
Table 3.3
Chart 3.3
Yes
No
146, 87%
Interpretation:
Table 3.4
Chart 3.4
80
59
60
43
40 34
22
20 9
0
Green colored Natural / Recycled / Vegetarian Ayurvedic / Highly priced Energy saving
products organic recyclable products Herbal products products
products products products
Interpretation:
Table 3.5
Chart 3.5
Meaning of Symbol
3, 2% 6, 4% 7, 4% 7, 4%
7, 4%
22, 13%
Vegetarian
Natural / organic
Recycled / recyclable
Ayurvedic / Herbal
Fresh
115, 69%
Healthy
Good quality
Interpretation:
Table 3.6
Chart 3.6
58, 35%
Yes
No
94, 56%
Not Sure
15, 9%
Interpretation:
Table 3.7
Chart 3.7
Home appliances 39
Consumable items 65
Food items 81
Electronic items 59
0 10 20 30 40 50 60 70 80 90
Interpretation:
Food items are major green marketing products which customers are using in their
home.
Only 39 Respondents using Home appliances in their home which are green
marketing products.
3.8 Analysis of Energy saving electronics customers using currently
Table 3.8
Chart 3.8
Electric bike 17
Solar cooker 48
CFL Bulb 92
0 10 20 30 40 50 60 70 80 90 100
Interpretation:
55.1% Customers are using CFL Bulb as Energy saving electronics currently.
46.1% Customers are using Solar water heater as Energy saving electronics currently
3.9 Analysis of Influencing factors for purchasing any green products
Table 3.9
Chart 3.9
Influencing Factors
140 121
120
100
75
80
60
40 26 23
16
20
0
Advertisement Friends Relatives Neighbour Colleagues
Interpretation:
Table 3.10
Chart 3.10
140 122
120
100
80 60 60
60
29
40
13
20
0
Television Dailies & Friends Relatives Neighbours
Magazine
Interpretation:
73.1% Customers got aware through Television. So, Television plays an important
role for Awareness of Green Marketing Products.
Only 7.8% Customers got aware about Green Marketing Products through
Neighbours.
3.11 Analysis of Sources of Green Marketing Products
Table 3.11
Chart 3.11
Petty shops 22
Show rooms 55
Departmental stores 65
0 20 40 60 80 100 120
Interpretation:
According to 65.9% Respondents, Retail Stores are the major Source of Green
Marketing Products.
Petty Shops are the least preferred source of Green Marketing products.
3.12 Analysis of Reasons for purchasing and using Green Products
Table 3.12
Chart 3.12
Cost 22
Environment 78
Natural products 64
Healthy 70
Eco-friendly 121
Interpretation:
According to 72.5% Respondents, Green Products are Eco-friendly and this is the
main reason for purchasing and using Green Products.
Environment is another major reason for purchasing and using Green Products.
3.13 Analysis of Attitude towards green products
Table 3.13
Chart 3.13
80
60 52
40
20 11
6 2
0
Very good Good Moderate Poor Very Poor
Interpretation:
Table 3.14
Chart 3.14
Interpretation:
Table 3.15
Chart 3.15
Brand Association
Godrej 60
Nerolac Paints 28
Philips CFL 73
Nokia 23
Bajaj CFL 83
0 10 20 30 40 50 60 70 80 90
Interpretation:
According to 49.7% Respondents, Bajaj CFL is the brand they associate with Green
Marketing Practices the most.
46.1% Respondents associate Indian Railways as a brand with Green Marketing
Practices.
3.16 Organizations manufacturing/promoting green products are really concerned about the
environment.
Table 3.16
Chart 3.16
Strongly Disagree
52, 31% Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
74, 44%
Interpretation:
Table 3.17
Chart 3.17
Strongly Disagree
Somewhat Disagree
Neutral
Interpretation:
37.1% Respondents somewhat agreed that Consumers have become more concerned
about protection of environment
4.1% Respondents strongly disagreed that Consumers have become more concerned
about protection of environment
3.18 If a Green Product is available in a product category often purchased, I would…..
Table 3.18
Chart 3.18
48, 29%
27, 16%
77, 46%
Interpretation:
Table 3.19
Chart 3.19
Strongly Disagree
50, 30%
Somewhat Disagree
Neutral
Somewhat Agree
Strongly Agree
63, 38%
Interpretation:
37.7% Respondents somewhat agreed that While purchasing the product, they prefer
green products over conventional products.
Only 3% Respondents strongly disagreed that while purchasing the product, they
prefer green products over conventional products.
3.20 I feel that green products are priced higher as compared to conventional product.
Table 3.20
Chart 3.20
Strongly Disagree
Somewhat Disagree
64, 38%
Interpretation:
38.3% Respondents found to remain Neutral on the statement ‘I feel that green
products are priced higher as compared to conventional product.’ Means they are not
really sure about the high prices of Green Products.
3.21 I feel that price of green product affects my purchase behaviour.
Table 3.21
Chart 3.22
Strongly Disagree
Somewhat Disagree
Neutral
Interpretation:
43.1% Respondents somewhat agreed that price of green product affects their
purchase behaviour.
Whereas according to 6% Respondents, price of green product doesn’t affect their
purchase behaviour.
3.22 Analysis of Factors affecting the purchase of green products
Table 3.22
Chart 3.22
Past Experience 44
Product Price 77
0 10 20 30 40 50 60 70 80 90
Interpretation:
According to 50.9% Customers, the most key factor which affects the purchase of
Green products is Availability of Green Products.
The least affecting factor on the purchase of Green products is Information provided
on product.
3.23 Analysis of Level of satisfaction towards green products
Table 3.23
Very Very
High Moderate Low
High Low
Quality 65 76 21 3 2
Cost 26 71 56 12 2
Availability 27 65 59 13 3
After Sales Service 36 71 44 14 2
Comfortable of the product 40 78 34 12 3
Packaging of the green products 41 84 29 10 3
Goodwill of the green product brand 60 71 27 7 2
(Source – Survey)
Chart 3.23
60
50
40
Very High
30
High
20 Moderate
10 Low
Very Low
0
Interpretation:
Due to increased awareness and concern consumer may prefer green products over
conventional products to protect the environment. The consumers are concerned about the
state of environment and expect the organizations to employ green practices towards the
protection of environment.
Consumers have shown positive attitude towards green products at the same time they are
concerned with the availability and price of such products. Most of the Respondents were
satisfied with the performance of Green products. The study has implications for marketers as
well as consumers and makes a good case for start of an era of green marketing. The study
since focused on a limited geographical area has limited generalizability but provides good
insights regarding behaviour of consumers towards green products. The study can be
replicated at a larger scale to get more insights into the behaviour of consumers and
understand more about green phenomenon.
Green marketing is a tool for protecting the environment for the future generation. Now this
is the right time to select “Green Marketing” globally. It will come with drastic change in the
world of business if all nations will make strict roles because green marketing is essential to
save world from pollution. Green marketing is a tool for protecting the environment for the
future generation.
Suggestions
Television advertisements should be utilized more for reaching out to the consumers
regarding green products and practices. Advertising appeals using green products and
practices are likely to move emotions and result in persuasion
The marketing communication regarding green practices need to focus more on
theme and message.
Marketers should make the green products available to the consumers for their
consumption as customers have shown willingness to buy green products if it is
available.
Consumers may purchase the green product if marketers can make them aware about
the benefits of the green products which consumers perceive as priced higher as
compared to that of traditional products.
Marketers can come up with new green products in economical segment and
communicate the benefits to the consumers.
There is a need of green retail shops in all cities.
Learning’s from Dissertation
The study undertaken has helped Researcher to understand the concept of Green
Marketing Products and Practices.
The Study aided Researcher to find out the customer’s attitude and perception towards
green marketing.
The Study assisted Researcher to investigate the level of awareness of consumers
about green products and practices.
The Study has helped Researcher to identify the brands, consumer associate with
green marketing practices.
The study also gave Researcher knowledge about the factors that influences the
customer persuasion to buy green products.
Further Researcher came to know about the level of satisfaction of green product
customers.
Bibliography:
Research Papers:
Bhatia, Mayank Jain, Amit “ Green Marketing: A Study of Consumer Perception and
Preferences in India” Electronic Green Journal, 1(36)
Prof. Jaya Tiwari “Green marketing in India: An Overview”, IOSR Journal of
Business and Management (IOSR-JBM)
R. Maheswari, G. Sakthivel “Customer’s attitude and awareness towards green
products with reference to Coimbatore –An analytical study” IJMRD 2015; 2(1):
156-162
Vinod.S “A Study on Customers Perception towards Green Marketing and Products
with Special Reference to Thiruvananthapuram City” International Journal of Recent
Research in Commerce Economics and Management (IJRRCEM) Vol. 3, Issue 2, pp:
(28-33), Month: April 2016 - June 2016.
Books:
Kothari C.R., Business Research Methodology, Second Revised Edition, New Age
International Publications.
Appendix
Questionnaire:
Name:-
Gender:
a. Female
b. Male
Age:
a. Below 18
b. 18-25 Years
c. Above 25
a. Yes
b. No
What do you understand from “green products”? (Tick more than one)
a. Vegetarian
b. Natural / organic
c. Recycled / recyclable
d. Ayurvedic / Herbal
e. Fresh
f. Healthy
g. Good quality
a. Yes
b. No
c. Not Sure
What are the green marketing products you are using in your home?
a. Electronic items
b. Food items
c. Consumable items
d. Home appliances
Choose the energy saving electronics from following which are used by you currently?
a. CFL Bulb
b. Solar water heater
c. Solar cooker
d. Solar electric products
e. Five star energy saving rated Air - conditioner
f. Five star energy saving rated Television
g. Five star energy saving rated Fridge
h. Electric bike
i. Can’t say
a. Advertisement
b. Friends
c. Relatives
d. Neighbour
e. Colleagues
a. Television
b. Dailies & Magazine
c. Friends
d. Relatives
e. Neighbours
a. Retail Stores
b. Departmental stores
c. Show rooms
d. Petty shops
What are the reasons for purchasing and using Green Products?
a. Eco-friendly
b. Healthy
c. Natural products
d. Environment
e. Avoiding Global Warming
f. Cost
g. Renewable & Recyclable Product
a. Very good
b. Good
c. Moderate
d. Poor
e. Very Poor
Perception towards green products
a. Very good
b. Good
c. Moderate
d. Poor
e. Very Poor
Which of the following brands do you associate with Green Marketing Practices?
a. Bajaj CFL
b. Indian Railways (paperless ticket)
c. Nokia
d. Philips CFL
e. Nerolac Paints
f. Exide Green Batteries
g. Godrej
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
If a Green Product is available in a product category often purchased, I would…..
Definitely Not Probably Not Not Sure Probably Buy Definitely Buy
Buy Buy
While purchasing the product, I prefer green products over conventional products.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
I feel that green products are priced higher as compared to conventional product.
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
a. Strongly Disagree
b. Somewhat Disagree
c. Neutral
d. Somewhat Agree
e. Strongly Agree
Following factors affect the purchase of green products?
a. Product Price
b. Awareness about
Green Products
c. Availability of Green
Products
d. Past Experience
e. Information provided
on product
Very Very
High Moderate Low
High Low
Quality
Cost
Availability
After Sales Service
Comfortable of the product
Packaging of the green products
Goodwill of the green product
brand