A Role of Green Marketing and Its Effect On Consumer Purchase Behavior

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International Research Journal of Engineering and Management Studies (IRJEMS)

Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

A ROLE OF GREEN MARKETING AND ITS EFFECT ON


CONSUMER PURCHASE BEHAVIOR
MS. ANSHUL AGARWAL
ASSISTANT PROFESSOR
INSTITUTE OF PROFESSIONAL STUDIES
GWALIOR(M.P.)
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ABSTRACT
The concept of green marketing had been INTRODUCTION
emerged very vast in these years and took
an important place in each and every Green marketing is the marketing of
corporations and industries. It had been environmentally friendly products and
seen that companies were focusing more services. It is becoming more popular as
on green marketing practices to capture a more people become concerned with
large market share and attract the environmental issues and decide that they
customers. Even consumers, who play a want to spend their money in a way that is
vital role in smooth functioning of kinder to the planet. Green marketing can
marketing had also been observing the involve a number of different things, such
green practices by different companies and as creating an eco-friendly product, using
also been influenced by it. There had been eco-friendly packaging, adopting
a new change in the consumer lifestyle and sustainable business practices, or focusing
their attitude towards green practices. The marketing efforts on messages that
new initiatives had been taken place and communicate a product’s green benefits.
given a new shape to marketing mix by This type of marketing can be more
making these practices green. Keeping in expensive, but it can also be profitable due
consideration the environmental issues and to the increasing demand.
innovation in traditional methods of
marketing, green marketing had been The concept of green marketing is
proofed a new birth to marketing world. concerned about protection of ecological
Green marketing had also encouraged the environment. Growth in marketing
consumers for being aware and purchase activities resulted into rapid economic
green products more for saving themselves growth, mass production with the use of
with the environment. This paper had advanced technology, comfortable and
described various green marketing luxurious life, style, severe competition,
practices and their effect on the purchase use of unhealthy marketing tactics and
behavior of the consumers. techniques to attract customers,
exaggeration in advertising, liberalization
Keywords: Green Marketing, Marketing
and globalization, creation of multinational
Mix, Environment, Purchase Behavior

© 2019, IRJEMS | www.irjems.com Page 1


International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

companies, retailing and distribution by GREEN MARKETING MIX


giant MNCs, etc., created many problems.
All of these things had affected the nature GREEN PRODUCT: Product constitutes
on a large scale and the need had been the first P of marketing mix. Many
arose for protecting the environment for a companies these days are quite serious of
healthy and stable life. the ways the products are being
manufactured. Different upgraded
methodologies and systems are in place
Environmental sustainability is not simply
while assessing the impact of
a matter of compliance or risk
manufacturing on environment. The real
management. Businesses are increasingly
challenge lies in front of industries which
recognizing the many competitive
are trying to cut down the manufacturing
advantages and opportunities to be gained
cost by incorporating plastics and different
from eco-sustainability. Worldwide
fiber materials to lower the weight and cost
evidence indicates that people are
of the manufactured tangible product. Here
concerned about the environment and are
polymers are being considered as great
changing their behavior accordingly. As a
substitutes for metals. It would be quite
result, there is a growing market for
challenging for the companies to justify
sustainable and socially responsible
their stand on green products if they are
products and services. The types of
using such low cost non-biodegradable
businesses that are emerging, what they
material in their operations. The argument
manufacture, and their approach to
here would be how products manufactured
marketing are changing. Green marketing
from non-biodegradable plastic material
is the marketing of products that are
can be considered as green products.
presumed to be environmentally preferable
to others. Thus green marketing GREEN PRICE: Price refers to the
incorporates a broad range of activities, amount paid by the customer to purchase a
including product modification, changes to product. The price of a product is
the production process, sustainable influenced by several factors like cost of
packaging, as well as modifying material, product differentiation,
advertising. The marketing industry can competition, market share and the
‘walk and talk’ and become the new customer's perceived value of a product.
corporate champions of the environment. When it comes to pricing the question
Successful green marketers will reap the arises as to how firms ensure green
rewards of healthy profits and improved marketing while pricing their products. In
shareholder value, as well as help to make this discussion it would be quite
the world a better place in the future. convincing that green products are
relatively costlier than non-green products.
The cost of absorbing environmental
concerns is relatively high compared to
conventional ones. It can be argued that

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International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

green marketing pricing should be that creates good awareness and influences
affordable to a common customer. the target audiences for further purchases.
Talking in terms of green promotion would
GREEN PLACE: Place is generally
then be meeting this optimum level. The
referred to as the distribution channel or
optimum level needs to be taken forward
distribution network. Place can be any
not only in terms of the promotional
physical store as well as virtual stores. The
expenses but also the different ways in
process involved in transferring products
which promotion is being affected.
from the producer to the consumer is
known as physical distribution. Green Re-engineering green marketing “Green
place in that sense can be anything which Marketing is the marketing of products and
minimizes the customers and the services that are not only environment
manufacturer’s effort in acquiring and friendly but also preferably acceptable to
selling a product respectively. Many firms various stakeholders in the society.
now-a-days have started selling their Various dimensions on which green
products online. This really cuts down the marketing are based are a broad range of
customers cost to practically visit a market activities including product modification,
place, select a store and then purchase the production process, product packaging,
product. Firms have come up with their product transfer, and ethical product
own websites which displays the promotion.”
merchandise and the customers have to
place the order online and get the delivery LITERATURE REVIEW
of product within few days. The internet As defined by Tapan K. Panda “Green
can really be termed as a green place as it Marketing consists of all the activities that
offers an unmatchable comfort to the make the consumer to focus on the
customer and this also saves cost to the environment safety and take their
manufacturer in way of commissions or purchasing decision with regard to the
cuttings given to various middlemen. The natural environment safety and its
challenge in selling a product on a green management”.
place would be in terms of sensing the
features of a product and experiencing it. The National Marketing Institute estimates
The green place should be enough in that about 80 percent of consumers are
convincing the smart customer about the engaged by green marketing at some level,
product features. with about 17 percent of consumers highly
engaged. This consumer group, referred to
GREEN PROMOTION: Firms undertake as LOHAS (Lifestyles of Health and
promotional activities so as to create Sustainability). These are those who like to
awareness about the product/services they pay a premium for green products. This
make. It always has been an expectation group (also more affluent and educated
from the top management of organizations than the general population) is interested in
to have an optimum promotional budget green products as they appeal to health

© 2019, IRJEMS | www.irjems.com Page 3


International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

considerations. Highly price-sensitive Green marketing acquired an eminent


consumers are the least responsive to green status since early 1990s. There has been
marketing. Green marketing faces a big occurring about green consumers and
challenge on price sensitivity and level green consumerism in 1970s and 1980s.
income as not all are ready to pay more Henion and Kinnear (1976) defined green
than expected price for the green product, consumers as environment focused
keeping aside the issue of health of the consumers while Antil (1984) described
environment. green consumer as a specific type of
conscious consumer who is very protective
Green products are typically durable, non-
towards the environment and its issues.
toxic, made from recycled materials, or
Michael Polonsky (1994) defined “green
minimally packaged (Ottman, 1997). Many
marketing as the marketing that consists of
consumers make a perception that the
all activities designed to generate and
green products are more priced than other
facilitate any exchanges intended to satisfy
conventional products (Peattie, 1999;
human needs or wants, such that the
Polonsky, 2001). Green pricing takes care
satisfaction of these needs and wants
of the human, environment, planet as a
occurs, with minimal detrimental impact
whole and consider the health management
on the natural environment.” According to
of the community and society. Here, the
Scholossberg (1993) as quoted by
consumer would think for a moment about
Polonsky (1997), Green promotion helps in
his/her pocket before going for a green
lessening the gap between the consumer
product as a consumer always thinks about
and environment. Also, it helps in making
is the purchasing pwer capability.
the education spread about environment
Sometime consumer keeps the
issues and how to overcome with each
environment first before the price, but not
one’s contribution.
always they consider or we can say not all
consumers takes the green product as a Hypothesis 2 – Consumer is positively
first preference keeping aside the other associated with the effect of green
purchasing factors. Sometimes, they also promotion.
purchase green product going out of the
pocket. Various studies and strong acceptance
opinion taken by consumer shown the
hypothesis 1 – Green product pricing is positive interest of the consumer
positively associated with the consumer towards environment issues and
purchase capability. acceptance of green product as per
Nowadays, most of the firms are more various opinion polls taken in US and
focused towards sustainable environment elsewhere, however action to do so in
and are ready for trying the new era of reality are debatable (Mendleson N,
green marketing with an objective of green Polonsky M J, 1995). According to this
and safe environment paper, there is a positive relationship
(WongFuiYeng&RashadYazdanifard,2015) between the green place and buyers

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International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

purchasing behavior. A majority of filled by 35 respondents. Findings are


polls indicate that consumers favor totally on the Reponses recorded and
green products, and are willing to pay hence, it supports the quantitative data.
more for them. However, the fact is
SAMPLING METHOD
that higher-priced green products have
always struggled for market share. In 100 respondents had been selected for this
many industries they garner only 3 research on random basis. The respondents
percent of total market share in the are from various places as they have been
consumer market; in business-to- selected simultaneously in the different
business markets, green marketing super market stores while shopping. The
often commands greater results. This list of places are big bazar, M.D. Sons (a
doesn’t mean that consumer are not big departmental store in Gwalior) and
caring about any factor but they are Eazyday. Data collection is made during
also taking into consideration the the week holidays i.e. Saturdays and
various other factors associated with Sundays as these days’ people are in mind
the green product like quality, cost, of purchasing different products and
transportation and production place. answers the questionnaire in unbiased way
Green place means that how the without any pressure.
companies are planning their green
The group of respondents include the age
production that would lessen the
group above 23 years till 35 years and
transportation cost and the logistics
most of them are working professional
part so as to save time and cost with a
who frequently visit the store for daily
better effective quality.
needs products to purchase.
Both primary and secondary data are been
Hypothesis3–Consumer is positively used for the survey and result that will
associated with the product which came out of this research. Questionnaire is
involve inhouse green production formed with a Likert scale type and
RESEARCH METHODOLOGY responses are recorded and analyzed
through the software SPSS.
TYPE OF RESEARCH
RESULTS AND INTERPRETATION
The type of research that is used is
The below pie chart shows amount the
qualitative and quantitative research both.
awareness and concern about the
Qualitative research is done to analyze the
environment by our consumers. The
consumer behavior in respect of the green
consumer always keeps in mind about the
product and their responses towards the
safety of the environment while purchasing
purchasing decision they made at the time
any type of product. And this also
of selection of green products. Also, this
inculcates that our consumer is aware
paper also contains the statistical and
about the environment issues and are
numerical data based on the questionnaire

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International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

contributing towards the protection of place. According to the recorded


ecology. respondents, they have answered that their
purchase decision get effected when they
saw that the particular product is made in a
more clean, green place and involves all
in-house production without involving any
out activities in its formation till it is full
and final made.

CONCLUSION

The consumers are now technology


oriented and they are very well exposed to
the external environment. Besides this they
are now educated and had a power to
analyze their decision regarding any
purchase they are making related to nay
Also, the consumers are ready to pay more product. Continuous diminishing
price for the green product. Results environment health and increase in the
showed that 75% of the respondents who level of global warming has made the
are aware about the green product are consumer warn about the activities they are
ready to pay more price than the other performing related to the environmental
product for the green product. So, this safety. So, they are more focused and
clears the above statement or hypothesis ready to contribute as much as they can
that the consumers are able to pay more for towards the safety of the ecology.
the green product. They are positively Also, in the corporate world it is very
correlated with the green price and the necessary to focus on their production
green product. activities to minimize the dependency on
Coming to the second hypothesis, the environmental sources and also
respondents had answered that they get promote their valuable social activities to
influence when they see the promotion of the consumer as they are ready to accept
green products and also, when they saw the such products which would save the
type of promotion is environmental environment and boost up its health. The
friendly they are more motivated towards consumers are very well aware and give a
that particular product. So, they accepted positive outlook towards a green product
that they would prefer the product that had and expect to make more contribution
a promotional activities eco-friendly and towards the concept of ‘green and clean’
that also makes them contribute towards always. There is a need to analyze the
the green and clean environment and to be consumer behavior with respect to the
a social citizen of a country. So it is clear green product coming up from time to time
that the hypothesis is correct. there is a and making those required changes as per
positive correlation between effect of the required scenario of the environment
green promotion on then consumers. and consumer.
The last statement also shows the positive
relationship between the consumer and
their involvement with the product which
has in-house green production in a green

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International Research Journal of Engineering and Management Studies (IRJEMS)
Volume: 03 Issue: 03 | March -2019 e-ISSN: 2395-0126

REFERENCES

1. WONG FUIYANG & RASHAD


YAZDANIFARD (2015), “Green
Marketing: A Study of Consumers’ Buying
Behavior in Relation to Green
Products”, global journal of
management and business research,
vol. 15 issue. 5 version 1.0.
2. Fuller, D.A. (1999), Sustainable
Marketing, Sage Publications,
Thousand Oaks,CA.
3. Pujari, D., Wright, G., Peattie, K.
(2003), "Green and competitive:
influences on environmental new
product de- velopment performance",
Journal of Business Research, Vol. 56
No.8,pp.657-71.
4. PHILIP KOTLER (2015) marketing
management” retrieve from this book
5. Dr. Rashad yazdanifard (2011),”the
impact of green marketing on customer
satisfaction and environmental safety”,
Proc .of CSIT vol.5 (2011)
6. Vaibhav bhalerao (2015),”green
marketing: greening the four P’s of
marketing”, international journal of
knowledge and research in
management, vol. 5 issue 2 .

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