1
Recycling of Products as a Marketing Problem
Alper Antebi
MAR 322
Charles Lawry
Pace University
October 16, 2014
Recycling of Products as a Marketing Problem
Introduction
For my research proposal I have chosen recycling of products as a marketing problem. Recycling is the best way to reuse a material or product. People utilize many products, gadgets, appliances etc. and constant use of any products or electronic devices causes wear and tear, the product gets old and the consumers had to ultimately throw them (Sodhi et al 2001). If we keep on throwing used material, the waste accumulation and garbage dump will be overcrowded with these materials and products and it can lead to many unfavorable consequences or problems (Oskamp, 1995). So my company thought an innovative way to recycle these materials so it can be reused. Recycling has many benefits for our environment as well as customers too. It reduces air, water pollution, helps in conservation of natural resources, and saves energy consumption.
Although recycled product has many benefits but a major marketing problem arises while selling these products to customers or consumers. Various researches have been done to analyze the problem in detail and find the best possible solution to overcome it. The recycling research has been divided into many categories such as pricing research, consumer behavior research, selling techniques and strategy, promotional research etc. Thus we need to build a strategy or framework to integrate all these research aspects and design a new method or strategy to launch these recycled products in markets and how to increase its sales.
A literature review will help understand the topic better and understand the different aspects of recycling. For creating recycled products we need to distinguish the items which can be recycled, then we need to find out the method which can be used to recycle items. Various methods or recyclers are available, but we will try to choose which cost effective, eco is friendly and fast. We need to do a market survey and statistical analysis. We need to find out dependent as well as independent variables and find their correlation. Then we need to find its impact on various variables such as recycling behavior, problems, limitations, solutions etc. (Sirdeshmukh et al 2002).
Pricing Research
Cost is also a factor in conducting market survey and research. Thorough analysis of cost must be done as different recycling programs. During market survey we will also determine the prices of similar products in market such that similar recycled products can be created and will be sold at considerably very low prices.
Promotion research
A better promotion requires different communication tactics which include advertising, personal selling, publicity, sales promotions etc. It is designed to increase the sales. This research investigates effects of various strategies which are focused on increasing rec.
Z Score,T Score, Percential Rank and Box Plot Graph
1Recycling of Products as a Marketing ProblemA.docx
1. 1
Recycling of Products as a Marketing Problem
Alper Antebi
MAR 322
Charles Lawry
Pace University
October 16, 2014
Recycling of Products as a Marketing Problem
Introduction
For my research proposal I have chosen recycling of
products as a marketing problem. Recycling is the best way to
reuse a material or product. People utilize many products,
gadgets, appliances etc. and constant use of any products or
electronic devices causes wear and tear, the product gets old
and the consumers had to ultimately throw them (Sodhi et al
2001). If we keep on throwing used material, the waste
accumulation and garbage dump will be overcrowded with these
materials and products and it can lead to many unfavorable
consequences or problems (Oskamp, 1995). So my company
thought an innovative way to recycle these materials so it can
2. be reused. Recycling has many benefits for our environment as
well as customers too. It reduces air, water pollution, helps in
conservation of natural resources, and saves energy
consumption.
Although recycled product has many benefits but a
major marketing problem arises while selling these products to
customers or consumers. Various researches have been done to
analyze the problem in detail and find the best possible solution
to overcome it. The recycling research has been divided into
many categories such as pricing research, consumer behavior
research, selling techniques and strategy, promotional research
etc. Thus we need to build a strategy or framework to integrate
all these research aspects and design a new method or strategy
to launch these recycled products in markets and how to
increase its sales.
A literature review will help understand the topic better
and understand the different aspects of recycling. For creating
recycled products we need to distinguish the items which can be
recycled, then we need to find out the method which can be
used to recycle items. Various methods or recyclers are
available, but we will try to choose which cost effective, eco is
friendly and fast. We need to do a market survey and statistical
analysis. We need to find out dependent as well as independent
variables and find their correlation. Then we need to find its
impact on various variables such as recycling behavior,
problems, limitations, solutions etc. (Sirdeshmukh et al 2002).
Pricing Research
Cost is also a factor in conducting market survey and research.
Thorough analysis of cost must be done as different recycling
programs. During market survey we will also determine the
prices of similar products in market such that similar recycled
products can be created and will be sold at considerably very
low prices.
Promotion research
A better promotion requires different communication tactics
which include advertising, personal selling, publicity, sales
3. promotions etc. It is designed to increase the sales. This
research investigates effects of various strategies which are
focused on increasing recycling behavior. Various studies have
been linked to various components of promotions. Door to door
selling and personally communicating with consumers also play
a significant role.
Distribution research
First of all the materials to be recycled are separated according
to the recycling process which will be applied and the recycler
which will be utilized. Very less research has been done in this
area so comparison is difficult.
Objectives
The main objective behind the preparation of this research
proposal was to distinguish and find out various problems
associated with selling of the products.
· To conduct a market survey to know about the need of the
consumers or customers.
· To enlists the probable problems and solutions.
· To design an effective marketing plan.
· Advertise the products and attract customers with various
advertising techniques.
· To introduce various promotional offers regarding the product.
· Provide maintenance of products.
· Provide customer satisfaction.
Problems
Customers generally like fresh products as they believe that the
utility and life span of products will be better. They don’t
believe in buying the recycled or old products as the working
efficiency is expected to be low and the warranty or life span of
the product cannot be expected to be good in comparison to the
original products (Shawn, 2006). Moreover they believe that the
recycled products will require more servicing. So even if the
market price of the product is low, it will require maintenance
and thus the overall cost incurred on the products will
4. ultimately rise ( McCarty et al 1993).
Solution
The best possible solution to the above mentioned problem is to
convince the consumers or customers so that they become
interested in buying the product. If we explain about the
benefits of the product to the customers and demonstrate the
product and its utility thoroughly then it will help the customer
to choose the product better (Malhotra and Peterson 2006). We
can explain about the various attractive feature of the products
like cost effectiveness, user friendly nature, less power
consumption, more fast, working efficiency etc. We can conduct
free workshops to promote and demonstrate the products better.
Development of Hypothesis
Various hypotheses can be built on the basis of above probable
problems and solutions.
Hypothesis 1: If majority of consumers belong to the middle
class family or average income group, then the sales of products
will increase.
Hypothesis 2: If the product is user friendly and easy to use
then the sales of the product will automatically increase.
Hypothesis 3: If the product has a larger life span and gives
5. warranty for a long period then more customers will buy it.
Hypothesis 4: If the product is environment friendly then the
government will also support the product which in turn will
increase the sales.
Hypothesis 5: If the product is certified and tested in the
laboratory then it highly likely to be bought by customers.
Research Methodology
Sampling technique: The main aim of the sampling technique is
to avoid any bias and utilize a cost-effective manner for
sampling. The sampling should be done carefully in order to
avoid any error because a single error can lead to big
differences. Various sampling methods can be used depending
on the various advantages and disadvantages it carries. The
sampling method should be cost effective, profitable, and easy
to conduct. The method should not be biased (Craig and Dougas
2005).
So we will use the random sampling method to sample
population here as it offers many advantages.
· Every individual has equal chance of getting selected.
· It can be used in case of large populations.
· It is representative of population.
· It is the easiest method to sample population.
· Conclusions or generalizations can be drawn easily.
· It avoids bias.
This type of sampling method is appropriate for the market
6. research as it provides statistical data which is cost efficient
too. Here our main requirement was to choose a sampling
method which is more user friendly, easy to use, for large
population, cost effective and as this method seem promising
and avoid statistical error, thus it was chosen.
Sample Design
Sample size: Large population was chosen which included
people of various groups. Thus giving fair chance to be equally
likely selected.
Methods for collection of data
There are various methods for collection of data. Instruments
and tools can be used according to the research proposal. Both
qualitative and quantitative approach can be used. The
qualitative approach can be used for small size and relies on
explanatory data whereas quantitative approach can used for
large sample size and relies on descriptive data in bulk. We can
collect data by conducting surveys, formulating questionnaires,
conducting interviews etc. (Carson et al 2001)
I. Surveys: Surveys will be conducted at various places to
collect a random sample or mixed population so that every
individual have an equal chance of getting selected.
II. Questionnaires: There are many ways of introducing
questionnaires either it can be on paper or web based.
7. III. Conducting Interviews: Interviews can be conducted and
can be telephonic, web based or face-to –face.
Hypothesis Testing
There are 5 hypotheses that need to be tested. They can be
tested in the following way:
· Calculate mean, variance, standard deviation
· Develop an alternative hypothesis H1.
· Develop a null hypothesis H0
· Choose an appropriate level of significance
Study Limitations
I. Bias: In research there a hypothesis is formulated and an
outcome is expected .The first step of research requires
sampling method .Thus we see a series of steps are involved in
research and errors or variation can occur at any steps. It can be
of various types such as selection bias, bias of an estimator, it
can occur in hypothesis testing too.
· For our market survey we try to choose a population or place
which will contain people of different interests. But in spite of
our analysis it might happen that we survey people of same
interest or a particular age group or belonging to a particular
economic class. Thus if unknowingly we conduct the survey on
a particular group or having same interest, then our sampling
results will be biased and not true. Thus to avoid this we need
8. to survey from a lot of different places to minimize the error.
· Bias of an estimator: The estimator may have sometime
expectations that can differ with the value of the parameter
leading to bias.
· Errors in hypothesis testing: Various errors also crop up in
hypothesis testing like Type I error ,Type II error, Type III
error
Conclusion
Our first objective is to create awareness. It can be done
through various ways like distribution of fliers or mailers
announcing the promotion or launch of recycled products. Once
awareness is created about the products they must be educated
about the mechanics of the products. Local merchants can set up
booths to display or promote recycled products (Spengler et al
2004). We conducted interviews and questionnaires in our
market survey. We asked the participants several questions with
yes or no options. They were arranged online and offline as
well. The most frequent responses were that they would like a
cost effective recycled product which would be fast, efficient,
user friendly and eco friendly. The main demand of the
consumers was that it has to be low price and must have a
warranty to ensure that they get the best product which will
work for long. After the awareness and promotion program
other advertising options must also be considered like social
media, newspapers, websites, print media, broadcasting etc.
9. For our sampling we choose various places such as
residential places, colleges, offices etc. We did the statistical
analysis to find out if the hypothesis were correct or not. We
find out the statistical analysis to be correct except few errors
and bias which was there. All these detailed information and
reviews from the consumers will help us to create a better
product and we expect the sales of our products to reach
heights. Also we will strive to create a better product in low
price with many attractive features.
Finally we know that successful marketing requires
continuous effort. Follow up surveys must be part of the
program. The major requirement of the program is funding,
because if the funds are low then the promotions might suffer
and ultimately the sales (Hair et al 2010).
References
1. Oskamp, S. (1995). Resource conservation and recycling:
Behavior and Policy. Journal of Social Issues.
2. Burn, Shawn. "Social Psychology and the Stimulation of
Recycling Behaviors: The Block Leader Approach." Journal of
10. Applied Social Psychology 21.8 (2006).
3. Sodhi et al (2001). Models for recycling electronics life of
products.
4. Spengler et al (2004). Environmental integrated production
and recycling management.
5. McCarty et al (1993). A structural equation analysis of the
relationships of personal values, attitudes and beliefs about
recycling and recycling of solid waste products.
6. Malhotra and Peterson (2006). Basic Marketing Research; a
decision making approach.
7. Craig and Dougas (2005). International Marketing Research.
8. Sirdeshmukh et al (2002). Consumer, trust value and loyalty
in relational exchanges.
9. Carson, Gilmore, Perry, Gronhaug (2001) Qualitative
Marketing Research.
10. Hair et al (2010). Essentials of marketing research.