GREEN CONSUMERISM: INACTION DESPITE OF AWARENESS

LITERATURE REVIEW BY SATAKSHI ARORA MA-FMG

INTRODUCTION
Environmentalism has fast emerged the world over as an important phenomenon for more than a decade now, owing to the increasing environmental problems such as acid rain, green house effect, land degradation and ozone layer depletion. Initially most of the ecological pressures came from the nongovernmental organizations, local environmentalists, governmental agencies (Doyle 1992;Johri and Sahasakmontri 1998;Keegan et al 1995; Meffret and Kirchgeorg 1994;Peattie and Ratnayaka 1992; Vander-Merwe and Oliff 1990). Concern with the environmental degradation has led to a new segment of consumers: the green or ecological consumers. Marketers must pay special attention to the needs of this segment. The growing concern with the environment, increased competition and greater selectiveness and demands of consumers represent an immediate challenge for green marketing (Aminda M Finisterra do paco, Mario Lino Barata Raposo 2010). In recent years, environmentalism has caught up in India too. Due to pressures from environmentalist lobbies, the government has enacted a number of legislations to combat the pollution menace and preserve natural resources. The movement, however continues to be more of a government initiated one. Not much headway can be expected unless industrial and individual consumers turn green and start engaging on their own eco-friendly behaviors (Sanjay K Jain and Gurmeet Kaur 2004). Studies show that, despite of all the efforts made by the Nongovernment organizations, researchers and environmentalists to persuade the consumer to rather act more on the eco friendly, the graph of awareness is comparatively high than that of the action done. Since the consumers have emerged as force to reckon within accelerating growth of corporate environmentalism and use of green marketing, they have also become a focal point of marketing research. A wide gamut of issues concerning consumers environmental awareness, attitudes and behavior has been examined in the past (Arbuthnot 1977; Arbuthnot and Lingg 1975; Schlegelmilch et al 1996; Sanjay k Jain and Gurmeet Kaur 2004). Some of previous studies on environmentally responsive consumerism have addressed the implications of buyer behavior

(Charter 1992; Ottman 1989; Peattie 1992) and changes the organizational management practices required for the entrepreneur (Charter 1992 ; Strong Welford and Gouldson 1993).

CONSUMER BEHAVIOR: WHERE THE GAP LIES

Based on studies undertaken in the past as well as my understanding of the subject, this research was made to emphasize on the fact that there is a lack of action in consumer behavior, industrialists and business firms despite of being aware and concerned about the environmental degradation. As Hussey and Hussey (1997) have pointed out, practical limitations ( such as time, money and access to respondents) and difficulties in research design mean that this is rarely, if ever, possible to measure all factors and variables that might have a bearing on a research problem. Researchers such as Gerrans and Hutchinson(1998), Merritt(1998) and Ludevid Anglada(2000) have shown that many consumers have high awareness of their role in environmental remediation and have strong desire to actively do something. However, most studies have reported that there is often great deal of difference between the stated attitude of consumers and the actual environmental performance. This paper includes source exemplar researches done across the globe, where the awareness amongst the consumer/industrialist/business firm owners is there but due to the different factors, there is not a movement to lead to improvement of the environment. In Australia, Hutchinson and Gerrans study (1997) showed a broad sympathy for green concerns by small firm managers, but little practical evidence of behavioral change. More recently, Acutt and Genos (2000) examination of SMEs (Small-

Medium Enterprises) in the Australian state of Queensland found no relationship between green views and actions taken to improve the environment. Tiley (1998), Hutchinson and Chaston (1994) and Petts et al (1999) have all reported similar dichotomy between attitudes and performance in UK and Europe. The lack of suitable and accessible information about how to improve a firm's environmental business activities also appears to be an important reason for inaction. Gombault and Versteege (1999), Winter and Ledgerwood (1994) and Hutchinson and Chaston (1994) have all claimed that SMEs suffer from a shortage of relevant environmental information. Tilley's (1998) study of UK SMEs has suggested that access to relevant, business-related environmental information is generally in short supply among small business owner/managers, and is a key determinant of environmental outcomes. This being the case, it would seem reasonable to also infer that managers with greater access to environmental information would be more environmentally sensitive and supportive than those who are less well informed. Many proponents of a greener business approach have relied upon consumer demand as a key plank in their argument that firms should become more environmentally responsible if they are to survive in a competitive marketplace (Bennett, 1991; Charter and Polonsky, 1999; Darnovsky, 1996; Day and Arnold, 1998). Similarly, the Australian Bureau of Statistics (1998) has reported that environmental issues are a significant factor in Australian consumer behavior.

Finally, one of the most common arguments advanced against greater environmental efforts is cost - the claim that SMEs simply do not have the financial resources necessary to adopt better processes (Raar, 2000). Palmer (2000), for example, has argued that a lack of financial resources is one of the biggest single barriers to environmental progress. Townsend's (1998) study of Australian manufacturing SMEs found that the most common factor in hindering improved environmental performance was difficulty in accessing capital.

GEOGRAPHIC BASED REVIEW

NEW YORK: Despite growing consumer interest in the environment and
green lifestyles, fewer consumers are willing to pay more for green products, according to a new research report from Yankelovich, Inc., a consumer market research and analytics company with offices in Chapel Hill, N.C. and New York City. The Going Green 2 report, a follow-up to last year's report examining how much consumers actually care about green issues, indicates that environmentalism is developing among U.S. consumers. That's especially true among Echo Boomers (ages 16-29) and GenXers (ages 30-43), who say they are more concerned about the environment compared to a year ago. While interest in green issues continues to grow, consumers' willingness to pay more for green alternatives has declined, according to Yankelovich. "There is a looming challenge for marketers of green products and services," said Dr. David Bersoff, executive VP in charge of global knowledge and intelligence at Yankelovich and author of the Going Green 2 report. "Consumers will be pushing for stricter governmental and institutional green policies, and they'll be choosing brands to a greater extent based on green considerations. But at the same time, they are becoming less willing to help marketers pay for the greening of their business and products." While concern about the environment is increasing among the population as a whole, it is still primarily a minority position. Although 49 percent of consumers feel that our environmental problems are severe, and 51 percent feel that these problems demand immediate corrective action, only 41 percent of Americans express high levels of personal concern, a four-point increase over last year, the report said. "It is important to note that, contrary to what might have been expected in the midst of rising unemployment, interest rates and fuel prices, increased levels of economic concern did not reduce levels of environmental concern," said Dr. Bersoff. "In fact, somewhat surprisingly, consumers who have no

financial anxiety appear to be the least attractive targets for new green products and services." Going Green 2 surveyed adults, ages 16 and older, in a nationally representative sample of more than 2,500 respondents (Yankelovich,2008).

AUSTRALIA: A research examined the demographic profiles of

Australian green consumers in relation to their satisfaction of environmental labelling. It examined consumers' understanding of labelling and empirically investigated the association of demographic profile of consumers with their attitudes towards such labels. The results indicated that some of the demographic variables were significant, which is largely consistent with earlier findings by other researchers in this area. Label dissatisfaction was higher in the older and middle age respondents. However, some respondents disagreed that labels were accurate while commenting that labels were easy to understand (Clare DSouza, Mehdi Taghian, Peter Lamb 2007).

EUROPE: Europeans' claims appear less environmentally conscientious;

UK consumers rank bottom, with just 45% of them happy to part with their cash to support the high street's greener brands. The response is noticeably more muted when consumers are asked how much of an influence the environment has on buying activity across specific categories. When looking at day-to-day purchases, just 26% of people claim that green factors have a significant or large influence over how they act. The research has shown us that consumers tend not to be tempted by green principles alone - but that green as part of a broader proposition can be a winner.

UK: The UK is also one of the markets least likely to be motivated by green
issues when buying health and beauty brands. Again, on the basis of a significant or large influence, the global average is 40%, but the UK ranks alongside the US - close to the bottom of the table at 30%. Household, travel and entertainment goods are other product areas where UK consumers fall far behind in their green purchase habits. It would appear that brands still have a job to do in getting their sustainability messages heard and acted on (Andrew Czarnoski,2009).

EGYPT: A study investigates the influence of various cultural values and

psychological factors on the green purchase behavior of Egyptian consumers. However, one of the other important findings suggests that the link between intention and actual purchase is weak. In other words, on a declarative level, more and more consumers in Egypt express their concern over the ecological situation and declare their willingness to contribute somehow to the protection of environment by buying green products. However, in reality this concern may not be manifested consistently (Mohamed M Mostafa,2007).

PORTUGAL: The results show that certain environmental and

demographic variables are significant in differentiating between the 'greener' consumer group and the other segments. Portuguese consumers, despite their support for policies designed to improve the environment, does not always translate their concerns into environmentally friendly actions (Arminda M Finisterra do paco,Mario Lino Barrata Raposo 2010).

TABLE SHOWS THE FACTORS AND CONSUMER BEHAVIOR AREA NEW YORK AUSTRALIA UK/EUROPE EGYPT PORTUGAL AWARENESS WILLINGNESS ACTION

CONCLUSION
Our research has shown us that consumers tend not to be tempted by green principles alone - but that green as part of a broader proposition can be a winner. Developing an environmentally friendly product that also helps save money is an obvious hit. Combine a money-saving proposition with a green one and you have a recipe for success. Brands also have to be sure that any claims they make will motivate consumers - in today's climate of savvy shoppers, there's no room for 'green wash'. If a product feature or benefit doesn't motivate people, it has no place in a marketing strategy. Companies need to look carefully during product development research at whether or not being green is good for their brands. It will not always be the lead selling point for consumers, and there is a danger of letting green considerations dwarf other more fundamental issues. Example - A deodorant must convince the buyer that it is effective and kind to the skin - its CFCs are clearly an issue, but are rarely the prime motivation to buy. However, the issue again comes when consumers are asked to convert principles into action. Most shoppers are not yet at a stage where they would proactively seek out retailers that adopt choice editing. The UK, US, Australia and India itself ranks as one of the most apathetic countries in turning intentions into practice - with just a third (34%) of us confirming that we will ensure we shop at a retailer that choice edits. * Compared to a global average of 52%, these figures again point to a disparity between our environmental aspirations and how far we will go to turn these into action - and an important message for brands and retailers looking to build green issues into their own marketing strategies. Suggestion as far as this small research can sieve out, is to combine the principles of green marketing and emotion marketing. This could benefit companies and brands on their USP quotient further proving profitable, increasing consumer demands and at last benefiting environment for the obvious reasons by turning green consumerism concept into mass action.

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