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2 
miNOr prOJect 
On 
“impact OF greeN marketed prOdUct ON cONsUmer 
pUrchase decisiON” 
UNder the gUidaNce OF- dr. r.k. l...
DECLARATION 
I hereby declare that this project work entitled “Impact of Green Marketed Product 
on Consumer Purchase Beha...
ACKNOWLEDGEMENT 
To acknowledge all the persons who had helped for the fulfillment of the project 
is not possible for any...
CONTENT 
 Introduction 
Green Marketing 
Green Concept 
 Literature Review 
 Objective 
 Hypothesis 
 Research Method...
Introduction 
Today the concept of sustainability is almost ubiquitous by showing application 
in corporate strategy, cons...
Most of the studies related to green consumerism have been conducted in well 
developed countries. It is to be acknowledge...
forms one components of green marketing, or of the green marketing 
claims, therefore, green marketing includes a wider ra...
Review of the related literature shows that there is not so much research, nor a 
unique definition about green marketing ...
In a study in 1994, Dietz and Stern proved that 42 percent of the British 
consumers paid attention to environmental conse...
Objective 
The objective of the project is“To study the factors effecting 
consumer buying behavior for green products”. 
...
Research Methodology 
Research Design- Descriptive 
Sampling Technique- Judgmental Sampling 
Sample Size- 100 
Area- Varan...
Data Analysis and Interpretation 
Table 1.Demographic profile of Respondent with mean score (N=100) 
Age % Monthly Income ...
Table 2 shows that 55% of the target population know about the green 
marketing and 14% have a little information about gr...
companies which are deciding to go green in future a few consumer are there 
who disagree to pay higher products for green...
are paying higher for green product to ensure environmental protection 
responsibility. 
TABLE 7. What is the main reason ...
TABLE 9. Why do you think green marketing is in headlines nowadays? 
Reason % 
Consumers are being aware of green products...
TABLE 11.In your opinion is green marketing is more effective then regular 
marketing? 
Rating Scale % 
Strongly Agree 20 ...
TABLE 13. Do you think it is difficult for all the companies to implement green 
marketing? 
Rating Scale % 
Strongly Agre...
Findings and Conclusions 
Consumers awareness towards green marketing is high 
Consumers have expressed strong concerns ab...
In India, at present situation is concerned the transition from regular marketing 
to green brand is difficult because com...
Suggestions 
 Companies should try to manufacture green products as consumers 
awareness is increasing with the time and ...
Learnings 
 The project helped me think pro actively on a topic of interest. 
 Talking to people and understanding their...
Questionnaire on Impact of Green Marketed Production Consumer 
Purchase Decision: Confidential for academic purpose 
1. Na...
a. Strongly Agree 
b. Agree 
c. Neutral 
d. Disagree 
e. Strongly Disagree 
10. What is the main reason that makes you wil...
c. Neutral 
d. Disagree 
e. Strongly Disagree 
15. Do you think government should take initiative in making companies to g...
References 
 Polonsky , Michael Jay, “An Introduction to Green Marketing”, Electronic 
Green Journal,1994 (http://eschola...
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Impact of Green Marketed Product on Consumer Purchase Decision

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Research is conducted to analyse the impact of green marketed product on consumer purchase decision and to know what percent of the sample population is aware of green marketing or product manufactured through green process and their attitude towards it.
Major findings are-
* Consumer awareness towards green marketing products is high, a large no.
population approximately 55 percent is aware about green marketing.
* Consumer are ready to pay extra amount for green marketed product as they believe they are manufactured without harming environment which gives them a feeling socially responsible person and at the same time they believe green products are good for health.
Suggestions-
Government can play a very important role in promoting and creating awareness about the green marketing which is equally good for the environment, customer and for producers. Therefore govt. should try to take some necessary action.

Published in: Environment
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Impact of Green Marketed Product on Consumer Purchase Decision

  1. 1. 2 miNOr prOJect On “impact OF greeN marketed prOdUct ON cONsUmer pUrchase decisiON” UNder the gUidaNce OF- dr. r.k. lOdhwal FacUlty OF maNagemeNt stUdies – BaNaras hiNdU UNiversity prepared By- kUmar gaUrav mBa 2Nd sem. rOll NO. 25
  2. 2. DECLARATION I hereby declare that this project work entitled “Impact of Green Marketed Product on Consumer Purchase Behavior” is my original work, carried out under the guidance of my faculty guide Dr. R.K. Lodhwal has not been submitted to any other institute/ university or any organization apart from Faculty of Management Studies Banaras Hindu University. Kumar Gaurav (Signature)
  3. 3. ACKNOWLEDGEMENT To acknowledge all the persons who had helped for the fulfillment of the project is not possible for any researcher but in spite of all that, it becomes a foremost responsibility of the researcher and also the part of research ethics to acknowledge those who had played a great role for the completion of the project. So in the same sequence at very first, I would like to acknowledge my parents because of whom I got the existence in the world for the inception and the conception of this project. Later on I would like to confer the flower of acknowledgement to Dr. R.K. Lodhwal Sir and other faculty members who taught me that how to do project through appropriate tools and techniques. And would also like to thanks my friends who constantly supported me while working on the project. Rest all those people who helped me are not only matter of acknowledgement but also authorized for sharing my success. Kumar Gaurav MBA 2nd Sem Roll No. 25
  4. 4. CONTENT  Introduction Green Marketing Green Concept  Literature Review  Objective  Hypothesis  Research Methodology  Data Analysis and Interpretation  Conclusion and Findings  Suggestion  Learning  Limitation  Questionnaire  References
  5. 5. Introduction Today the concept of sustainability is almost ubiquitous by showing application in corporate strategy, consumer choice, student education and academic research. The need for sustainable business practices by corporations around the world is identified to be a result of overall increase in the consumer awareness of lack of environmental protection and social inequities. Over the last decade environmentalism has emerged to be a vital aspect due to increasing issues related to acid rains, depletion of the ozone layer, and degradation of the land and many more pressing environmental issues. This resulted in increase in consumer concern with regards to restoration of ecological balance by presenting demands for eco friendly products in countries around the world. (Doyle 1992; Vandermerwe and Oliff 1990). The research on environmental consumerism is a well researched topic with the first research dating back to the 1970s (Henion and Kinnear, 1976). There has been extensive growth in interest exhibited by marketing academics as well as practitioners with regard to the impact of marketing on promoting and maintaining ecological balance (Chammaro et al., 2009; Bhattacharya, 2011). Thereis a great deal of depletion of non renewable energy resources which accompanied by generation of non bio degradable pollutants has lead to an increase in consumer and corporate awareness of green marketing issues. The basic ideas behind environmentalism dictate that corporations have responsibilities that go beyond the production of goods and services. These responsibilities involve helping to solve important social problems, especially those they have helped create (Buchholz 1991; Porter & Van der Linde 1995; Peattie, 1995). Corporations such as McDonald’s, Wal-Mart, Procter & Gamble, and Du Pont acknowledge that the environment must be protected and enhanced for economic growth to take place, and have taken action towards that goal. McDonald’s has made a $100 million commitment to its consumers for recycling purposes. Wall-Mart encourages the purchase of environmentally friendly products and reports that the green labeling program that they initiated in 1989 contributed to an overall 25% increase in sales for the year. Procter & Gamble has pledged to spend $20 million per year to develop a composting infrastructure. (Lodge and Rayport, 1991).
  6. 6. Most of the studies related to green consumerism have been conducted in well developed countries. It is to be acknowledged that when considered from a developing country context there is a lack in number of studies. It is against this backdrop from the above discussion it is quite clear that there is a large research gap in terms conceptually identifying those areas of consumer awareness impacting the concept of green marketing. Green Marketing According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. "Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption, disposal of products and services happen in a manner that is less detrimental to the environment. With growing awareness about the implications of global warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. The shift to "green" is expensive to look at but still is expected to prove advantageous in the long run in terms of cost of product. Polonsky (1994) defines green marketing as .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. Green Marketing Concept Many people believe that green marketing is a way to promote or advertise aspecific product using environmental terms, such as television advertisement, to announce a type of heaters asnot to cause a shortage of oxygen m but all that can not be named more than eco-declaration, or green advertising, which
  7. 7. forms one components of green marketing, or of the green marketing claims, therefore, green marketing includes a wider range of organizational activities, such as; product modification, changes to the production process, packaging changes m and delivery changes, and more ( Polonsky,2007). In their attempt to define green marketing, researches and practitioners have addressed several terms relate with this concept, Praskash (2002), pointed out that he employed the term green marketing in his survey '' to refer to the strategies to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them'', while (Posonsky,2007), has defined it as '' green or environmental marketing consist of all activities designed to generate and facilitate any exchange intended to satisfy human need or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment'' Other researchers have defined environmental marketing as '' the holistic management process responsible for identifying, anticipating and satisfying the requirement of customers and society, in a profitable and sustainable way'' (Karna et al, 2001). Literature Review The review of literature provided scientific theories and cites various literatures that were done elsewhere in related green marketing strategies adopted by the companies which will in turn help to provide foundation for a analysis and discussion. According to Ginsberg & Bloom (2004), The first step is to gain rich understanding on consumer preference towards green marketing i.e., whether the development of product that has greater selling attribute is better selling point to target consumers. Various studies have showed that the to know the target green market segment better, there is need for appropriate individual consumer tendencies towards green marketing (Fuller, 199 p330-331 Coddington 1993, p.8n99,1;on,83).Various author has proposed different models to develop strategy that includes the green marketing grid (Grant, 200 p.10,59) and the green marketing strategy,matrix (Ginsbmbgerg& Bloom 2004).
  8. 8. Review of the related literature shows that there is not so much research, nor a unique definition about green marketing approach due to its youngness, however, what is a common fact among proposed definitions, is fulfilling the company's goals with the least damage to living environment and human beings. Following is a number of definitions being floated on the subject:  Green marketing is a managerial process to identify, foresee and meet society's and customer needs via a sustainable and profitable procedure.  Green marketing or ecological marketing focuses on all designed activities to meet human's needs and wants with the least impact on natural environment.  According to the American Marketing Association (1976), green marketing is the study of positive and negative aspects of marketing on pollution and reducing consumption of energy and other scarce resources.  Green marketing or environmental marketing includes all activities that are designed to facilitate the transactions in order to meet human wants and needs in a way with the least adverse effects on living environment. Primary studies on green marketing and about customer interest for green products was first done by Vandermerwe and Oliff in 1990 . In 1989, a study in the United States of America indicated that 49 percent of responders have made changed in their purchase habits for the sake of environment. According to another research by Callan and Thomas in 1992, 93 percent of participants stated that environmental consequences have had a role in their purchasing habits . The results of another research which was done in developing countries by Peattie in the same year showed that 75percent of participant’s somehow involved environmental criteria in their purchasing responders have made changed in their purchase habits for the sake of environment. According to another research by Callan and Thomas in 1992, 93 percent of participants stated that environmental consequences have had a role in their purchasing habits. The results of another research which was done in developing countries by Peattie in the same year showed that 75 percent of participants somehow involved environmental criteria in their purchasing.
  9. 9. In a study in 1994, Dietz and Stern proved that 42 percent of the British consumers paid attention to environmental consequences in their purchases and 27 percent of them had the will to pay 25 percent more than the normal market prices for environment-friendly products. According to the studies done by Levinson, 83 percent of customers claimed that they chose environment-friendly brands and 80 percent concerned the company reputation regarding environmental protection issues.
  10. 10. Objective The objective of the project is“To study the factors effecting consumer buying behavior for green products”. Hypothesis There is significant difference in attitude, purchase intention and actual purchase behavior of consumer for green marketed product.
  11. 11. Research Methodology Research Design- Descriptive Sampling Technique- Judgmental Sampling Sample Size- 100 Area- Varanasi Time Period- 1month(March-13) Data Collection Method- Personally Administered Survey
  12. 12. Data Analysis and Interpretation Table 1.Demographic profile of Respondent with mean score (N=100) Age % Monthly Income % Edu. Qualification Gender 15-20 22 0-5 30 Illiterate 0 Male- 20-25 35 5-10 10 Undergraduate 24 68 25-30 20 10-20 12 Postgraduate 48 Above 30 23 20-30 28 Secondary Level 20 Female - 32 Above 40 20 Other 8 Table 1 depict the demographic information of the respondents which reveal that 22%of the population comes under the age group of 15-20 and majority falls under the age group 20-25 i:e 35% . Table 2. Are you aware of “green products” or Eco-friendly products? Response % Yes 55 No 31 A little 14
  13. 13. Table 2 shows that 55% of the target population know about the green marketing and 14% have a little information about green market, information like Some say that they heard about green marketing while a few said they seen advertisement of green marketing once or twice. TABLE 3. How you became aware of “green products” or Eco-friendly products? Source of Awareness % Television 45 Magazines 12 Class lectures 28 Newspapers 3 Others 2 As figure shows that majority of people’s source of awareness about green marketing is Television through advertising i:e 45% after that class lecture is the source of information i:e 28%. TABLE 4. If green features increase the price of the product, are you willing to pay more? Rating Scale % Strongly Agree 19 Agree 38 Neutral 15 Disagree 17 Strongly Disagree 11 The figure shows that 38% of the consumer are agree to pay a higher price for green products which is a good sign companies offering green products or the
  14. 14. companies which are deciding to go green in future a few consumer are there who disagree to pay higher products for green products. TABLE 5. Do you think there is enough information about “green” features when you buy the product? Rating Scale % Strongly Agree 20 Agree 23 Neutral 17 Disagree 28 Strongly Disagree 12 Figure shows that consumer are not satisfied with the information about green feature when they buy the products. So here the point where companies need to focus because total 40 out of 100 including disagree of strongly disagree available consumer are dissatisfied with the information available about green features of product. TABLE 6 What is the main reason that makes you willing to pay more for the “green” products? Reason for Purchase % Enhance a quality of life 22 Environmental protection responsibility 32 Potential increase of product value 24 Getting high level of satisfaction 22 Figure shows that all the given reason are almost equally responsible for paying higher price for the product by the consumer. But still majority of 32% of people
  15. 15. are paying higher for green product to ensure environmental protection responsibility. TABLE 7. What is the main reason that makes you not willing to pay more for the “green” products? Not Paying because % Cannot see the benefit of those features 23 Product cost is too high, cannot afford them 29 Producers only claim, actually it is not 34 Government should pay for them 14 The majority of the 34% consumer who are not willing to pay higher prices for the green product believe that producer only claim that it is green product but in reality it is not and second most 29% believe that product cost is too high and the cannot afford it. It is the major challenge in front of the companies to produce green product at a lower price. TABLE 8. Are you aware about the advantages of green marketing products? Response % Yes 45 No 37 A little 18 45% of the total targeted population are aware about the green products advantages and 37 are still unaware about its advantages. These unaware buyer are those who are not into the habit of using it or never used green product.
  16. 16. TABLE 9. Why do you think green marketing is in headlines nowadays? Reason % Consumers are being aware of green products 34 Company increasing its competitive edge 39 Company’s attempt to address society’s new concern 27 The majority of the 39% of total targeted population thinks that increasing competition in the market is the reason because of which green marketing is in headlines these days. TABLE 10. Which marketing element strongly influences your buying behavior of green products? Reason % Product 36 Package 15 Place 15 Promotion 34 Product itself is the most important reason which influences the 36% consumer purchase decision towards green product. After that promotion through advertising and other resource is the responsible factor influencing consumer to purchase green product. Thus product quality and promotion are the two most important factor which companies need to focus on instead of any other things.
  17. 17. TABLE 11.In your opinion is green marketing is more effective then regular marketing? Rating Scale % Strongly Agree 20 Agree 33 Neutral 17 Disagree 16 Strongly Disagree 14 It is the question which primarily comes in the mind when companies think for green marketing whether it would be effective than regular marketing or not. Yes it would be because majority of 53% people out of 100 believe that green marketing is more effective that regular marketing. Its creates positive image in the mind of the customer that company is socially responsible and producing eco friendly products. TABLE 12.Do you think government should take initiative in making companies to go green? Rating Scale % Strongly Agree 31 Agree 23 Neutral 12 Disagree 21 Strongly Disagree 13 Table 12 clearly depicts that most of the people believe that government should take initiative in making companies to go green because natural resources are depleting at a faster pace so it is the duty of the government to take corrective actions.
  18. 18. TABLE 13. Do you think it is difficult for all the companies to implement green marketing? Rating Scale % Strongly Agree 32 Agree 25 Neutral 13 Disagree 18 Strongly Disagree 12 As figure shows that 32% of the people believes that it is difficult for all that companies to implement green marketing because small companies revenue doesn’t allow them to invest in this area.
  19. 19. Findings and Conclusions Consumers awareness towards green marketing is high Consumers have expressed strong concerns about the concept of green marketing and companies going green. Apart from this, consumers are well aware of the fact that the productivity of companies can be drastically improved. People are aware of green environment because it is less detrimental to the environment and companies can look into implementation of this concept for betterment of business. From the results of data analysis given in Table 12 we can infer that the role of government plays a vital role in green marketing. As far as initiation of green marketing is concerned everyone are responsible for green marketing. If we analyze the facts pertaining to green marketing the significant results are positive at one end. On other end, consumers say that it is difficult for all the companies to implement green marketing. Environmental education refers to organized efforts to teach about how natural environments function and particularly how human beings can manage their behavior and ecosystems in order to live sustainably. Consumers attitude towards purchase of green product is high As far as green product is concerned the consumers strongly expressed that they are familiar with green product and shown interest to buy green marketed product and as shown in table no.4 that consumer are ready to pay higher price for green product over normal product. And they also believe that green product has higher quality and generate a sense of responsibility among consumer and marketer towards the society. Consumer purchasing green product because they believe that they are higher in quality as compared to normal product indirectly inferred from the table 10. And the consumer who are not ready to pay higher prices for the green product are generally because they are more expensive that normal product so here is the need to manufacture more and more green products to reduce its cost.
  20. 20. In India, at present situation is concerned the transition from regular marketing to green brand is difficult because companies do not have that much value so that they produce green product and sell at reasonable price because it incurs huge cost in following green practices but there are few companies who are following these practice. And most of the consumers realize the importance of green branding which means that there is a positive sign for betterment of the environment as well as for business.
  21. 21. Suggestions  Companies should try to manufacture green products as consumers awareness is increasing with the time and it will help in betterment of business.  Cost should be reduced to increase green product reach i:e to the people with lower income.  Quality should be maintained because consumer believe that green product quality is more than the normal goods.
  22. 22. Learnings  The project helped me think pro actively on a topic of interest.  Talking to people and understanding their perception was an enriching experience.  The purchasing behaviors of Indian consumer align with their global counterparts thus I have been able to map this phenomenon in global context. Limitations  A convenience sample was used for the data collection which makes the result no readily generalizable. Although great effort was put in to get a sample which include people from different demographics.  This study is only conducted in Varanasi region. So it is very difficult to determine whether it can be extended to a larger population outside this region.  This study is not product specific. This study is conducted only to understand the perception of consumers about green product as a whole.  Personal bias of the respondent while answering the question may have skewed the result slightly. Although an effort has been made to verify the result through all sorts of possible analysis applicable to this research.
  23. 23. Questionnaire on Impact of Green Marketed Production Consumer Purchase Decision: Confidential for academic purpose 1. Name ……………………………. 2. Gender a. Male b. Female 3. Age a. 15-20 b 20-25 c. 25-30 d. 30 &above 4. Education Qualification: a. Illiterate b. Undergraduate c. Postgraduate d. d.Secondary Level e. Other 5. Monthly Income(in thousands) a. 0-5 b. 5-10 c. 10-20 d. 20-30 e. Above 40 6. Are you aware of “green products” or Eco-friendly products? a. Yes b. No c. A little 7. How you became aware of “green products” or Eco-friendly products? a. Television b. Magazines c. Class lectures d. Newspapers e. Others 8. If green features increase the price of the product, are you willing to pay more? a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 9. Do you think there is enough information about “green” features when you buy the product?
  24. 24. a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 10. What is the main reason that makes you willing to pay more for the “green” products? a. Enhance a quality of life b. Environmental protection responsibility c. Potential increase of product value d. Getting high level of satisfaction 11. What is the main reason that makes you not willing to pay more for the “green” products? a. Cannot see the benefit of those features b. Product cost is too high, cannot afford them c. Producers only claim, actually it is not d. Government should pay for them 12. Are you aware about the advantages of green marketing products? a. Yes b. No c. A little 13. Why do you think green marketing is in headlines nowadays? a. Consumers are being aware of green products b. Company increasing its competitive edge c. Company’s attempt to address society’s new concern 14. Which marketing element strongly influences your buying behavior of green products? a. Product b. Package c. Place d. Promotion e. All of the above 15. In your opinion is green marketing is more effective then regular marketing? a. Strongly Agree b. Agree
  25. 25. c. Neutral d. Disagree e. Strongly Disagree 15. Do you think government should take initiative in making companies to go green? a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree 16. Do you think it is difficult for all the companies to implement green marketing? a. Strongly Agree b. Agree c. Neutral d. Disagree e. Strongly Disagree
  26. 26. References  Polonsky , Michael Jay, “An Introduction to Green Marketing”, Electronic Green Journal,1994 (http://escholarship.org/uc/item/49n325b7)  Coddington, Walter. 1993. Environmental Marketing: Positive Strategies for Reaching the Green Consumer. New York: McGraw-Hill Inc.  Davis, Joel J. 1993. "Strategies for Environmental Advertising." Journal of Consumer Marketing 10 (2): 19-36.  Polonsky, Michael (2007). An introduction to green marketing, electronic green journal,Vol.1. Issue 2.  Olson, E.G. (2008), Creating an Enterprise-Level „Green “Strategy, in: Journal of Business Strategy, Vol. 29, No. 2, pp. 22-30

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