GREEN MARKETING - AN ANALYSIS OF CONSUMER BEHAVIOUR TOWARDS GREEN PRODUCTS

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This paper was presented in the Ist International Conference on Business & Information Management (ICBIM), 2012, organized by NIT, Durgapur. This is basically a research paper aiming to contribute towards the growing ecological concern that most marketers want to address these days. It also tries to unveil consumer behaviour towards the purchase and consumption of eco-friendly products.

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GREEN MARKETING - AN ANALYSIS OF CONSUMER BEHAVIOUR TOWARDS GREEN PRODUCTS

  1. 1. AN ANALYSIS OF CONSUMER BEHAVIOR TOWARDS GREEN PRODUCTS
  2. 2. WHAT IS GREEN MARKETING ?
  3. 3. WHAT IS A GREEN PRODUCT ?
  4. 4. WHY ARE FIRMS GOING GREEN ?
  5. 5. • Macdonald’s have stopped packaging their hamburgers etc in polystyrene containers and now use cardboards which comes from a renewable resource and is biodegradable or recyclable . Hotels around the world are turning eco- friendly by the use of herbal toiletries, stationery from recycled paper, “no-smoking” rooms, less detergents and wasting less water, spending on gardens and orchards.
  6. 6. The production process is compatible with ecosystemIt is compatible with goals of the companyIt satisfies the consumers
  7. 7. Eco label is an environmental claim thatappears on the packaging of aproduct, making it easy for the consumers totake environmental concerns into accountwhen shopping.It is awarded to a manufacturer by anappropriate authority. ISO 14020 is a guideto the award of Eco-labels.The government of India launched anEco-mark Scheme in 1991 to encourage thecustomers to purchase those products whichhave less harmful environmental impact.
  8. 8. THE 4 GREEN P’s1. Green Product : Attributes such as energy saving, organic etc. that leads to reduction in resource consumption and pollution.2. Green Price : Most consumers will pay additional value if there is a perception of extra product value .3. Green Place : Aiming to reduce carbon footprint by way of managing logistics to cut down transport emanations.4. Green Promotion : To address the relationship between a product and the environment, to promote green life style, and to present a corporate image of environmental responsibility.
  9. 9. CONSUMER DEMOGRAPHIC (Age, Gender, Income, Ed ucation)ELEMENTS OFGREEN MARKETINGProduct PURCHASEPrice DECISIONPlacePromotion
  10. 10. RESEARCH METHODOLOGY• Research Objective :To investigate the factors that influenceconsumers’ choice of eco-friendly products overconventional products &To find out the relation between consumers’attitude and perception towards green marketingw.r.t price sensitivity and quality.
  11. 11. • Sample Size, Sample Unit and Sample Design :150 respondents, Age Group of 25-30 years,Convenience Sampling.• Sources of Data :Both Primary and Secondary Data.Primary data has been collected through astructured questionnaire and personal interviewsand observation.
  12. 12. 56 % respondents have ever purchased a green product, 44 %have not purchased yet and 75 % of this 44 % respondents whoare yet to purchase green products may buy it in the future. 28 % respondents always prefer buying green products over traditional products, 20 % respondents frequently buy green products over traditional products, 8 % sometimes buy green products over traditional products whereas 44 % respondents never buy green products over traditional products.Only 35.33 % respondents are willing to pay premium topurchase green products.
  13. 13. Regarding familiarity with green products, 24.44 % ofrespondents have come to know about green products throughmagazines, 22.22 % through newspapers, 15.56 % have comeacross green products on the internet and 12.22 % have beenacquainted with it in store. Surprisingly, the role of electronic media (TV and Radio) is negligible in creating familiarity to green products (6.67 % and 11.11 % respectively).
  14. 14. 89.29 % of green product users are willing to recommend greenproducts to others, 9.09 % of respondents would likerecommending green products , though they themselves have notyet used, on account of factors like environment protectionresponsibility, safe for health etc. The rest finds green products notworthy of recommendation due to a host of factors like costlier, notmuch difference in performance or quality, customers are cheatedby companies in the name of green products etc. Quality of the product is the top most priority factor, then price, place and promotion respectively in influencing the purchase of green product.
  15. 15. Quality and Certification are the two considerable variables (since gotsame rank with same probability) while purchasing green products. It isalso clear that price is not at all a considerable variable for selection ofgreen products, rather, being “eco-friendly” and “good for health” aremuch more important. 37.73 % respondents are in favor of saving utility bills and so prefer paying premium for green products, 18.86 % respondents prefer paying premium because green features are eco-friendly, 15.09% respondents are ready to pay premium as they feel responsible towards protecting the environment.
  16. 16. CONCLUSION• Consumer Behavior plays a major role in the choice ofgreen products.• The marketers of green products / services need to be moreinnovative and dynamic to compete with the changingpurchase behavior among customers.• The study brought out the fact that the people areconsiderably well aware of green products, but not loyalentirely towards it due to a host of factors like expensive, notmuch difference when compared to traditional products interms of performance and quality, commercials beingperceived as gimmick only, etc.
  17. 17. CONCLUSION CONTD… CONCLUSION• To attract customers more towards green products, the marketers must create promotions which are both realistic and have moral values and the product availability in terms of volume and variety are also important.• Business organizations should start following green marketing strategies as it offers incentives and growth opportunities in the long term, though it may involve huge start-up costs.
  18. 18.  Either Fold It Or Let It Be Unfold Just Going Green Is Not Enough, Be Transparent Know Your Consumers Empower Your Consumers One Size Doesn’t Fit All Make Yourself Audible To The Consumers Mull Over Pricing Selecting The Right Name Take Advantage Of Govt. Regulation That Mandates Behavior Change
  19. 19. ~ Tanusree Bhowmick & Subhojit Chakraborty Astt. Prof, DSMS GROUP OF INSTITUTIONS DURGAPUR

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