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Green Consumerism: Consumer Purchase Intention and Behavior Towards Green Products in FMCG Sector

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Green Consumerism: Consumer Purchase Intention and Behavior Towards Green Products in FMCG Sector

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© © All Rights Reserved
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Abhigyan Vol. XL No.

1 (April - June 2022) ISSN - 0970-2385; eISSN -2583-1445

Green Consumerism: Consumer Purchase Intention and Behavior


towards Green Products in FMCG Sector

This research study focuses on green consumerism that looks at consumer's behavior and purchase behavior of
green products. With the increasing global concern to protect the environment, “Turning Green” is becoming a
new mantra of success in any business. On the other side, green consumerism is also now becoming a trend where
consumers are more concerned about their environment and surroundings and are looking for products that are
environment friendly and do not bring any harm to the society so companies are also doing their best in adopting
green production process. This research paper aims to study consumer's purchase behavior towards eco-friendly
products in FMCG sector by using various demographic variables and also to find out if there is any gender
influence in their purchase of green products. With the support of various literature, some of the factors that
influence the purchase behavior are environment consciousness, ecolabels and packaging, gender-based attitude &
perceived product quality.
Keywords: Green Consumerism, Green Marketing, Green Products, Consumers Attitude, Purchase Behavior,
Purchase Intention.

ntroduction

There is a growing concern towards environmental conservation


leading to “Green Consumerism” (Eriksson, 2002). Consumerism
can be defined as a progress which originally started as a practice
which was presented to safeguard consumers against operations of
unethical business. The green consumer is typically known as one
who supports eco-friendly attitudes and/or who purchase the green
products over the standard alternatives (Boztepe, 2012). Green or
environment friendly products are the products that do not harm
the environment in its usage and it can be recycled or re-used for
S. Kaviya future consumption. Production and consumption of goods and
Research Scholar, services are the most influential factors of environment pollution
Amrita School of Business, and Indian consumers environment concern is showing an
Amrita Vishwa Vidyapeetham, increasing trend. Fast moving consumer goods (FMCG) play an
Coimbatore, Tamil Nadu. important role in major consumption in consumers purchase.
Consumers concern about the environmental issues has increased
steadily for past two decades and awareness about eco-friendly
R. G. Priyadarshini products (green products) has been gaining importance among the
Associate Professor, Indian consumers. Nowadays, companies are also adopting green
Amrita School of Business, marketing for products in their activities as a part of social
Amrita Vishwa Vidyapeetham, responsibility and trying to reach their consumers with their green
Coimbatore, Tamil Nadu. products and green messages. The aim of this study is to examine
consumers purchase intention and behavior towards environment

© Foundation for Organisational Research and Education DOI: 10.56401/Abhigyan/40.1.2022.1-10

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Green Consumerism: Consumer Purchase Intention and Behavior towards Green Products in FMCG Sector

friendly products (green products) and gender-based influence towards their purchase of those green
FMCG products.
Characteristics of Green FMCG Products
The products those are manufactured through green technology and that cause no environmental hazards
are called green products. Promotion of green technology and green FMCG products are necessary for
the conservation of natural resources and sustainable development. The following are some of the
measures that defines the green FMCG products (Kavita Gujral, 2018),
• Products that are naturally grown or made with natural ingredients,
• Products that are recyclable, re-usable and bio-degradable,
• Products contained recycled contents, non-toxic chemicals,
• Products content under approved chemicals,
• Products that are not harm or pollute the environment,
• Products with eco-friendly packaging i.e., re-usable, re-fillable containers etc.,
• Products that will not be tested on animals.
Literature Review
Green Marketing
Green marketing is also known as ecological marketing, sustainable marketing, environmental marketing.
American marketing association (AMA) defined “green marketing as the marketing of products that are
presumed to be environmentally safe. It incorporates a broad range of activities that includes product
modification, changes to the production process, changes
to the packaging, as well as The products those are manufactured modifying advertising”.
Worldwide evidence have through green technology and that cause shown that people are more
c o n c e r n e d a b o u t t h e i r no environmental hazards are called green environmental surroundings
and change their behavior products. Promotion of green technology a c c o rd i n g l y ( Po l o n s k y,
1994). The objective is to and green FMCG products are necessary s e l l p r o d u c t s t h a t a r e
harmless to the environment for the conservation of natural resources and simultaneously involve
in encouraging consumers to and sustainable development. support and protect the
e n v i r o n m e n t ( St e r n & Ander, 2008).
Green Consumerism
Green consumerism is the concept in which consumers are more concerned about their environmental
surrounding and make only eco-friendly purchases (Boztepe, 2012). They involve only in environment
friendly behavior and don't act against nature in their consumption. According to Sawant (2015),
consumers are increasingly becoming mindful of the environment, as well as socially responsible. Almost
all consumers are conceivably green consumers. For instance, when a consumer has an option to choose
from two similar products, the consumer will choose to buy an environment friendly product. The
positive attitude of consumers towards the environment is evident in their purchasing habits such as their
concern regarding CFC- free products and products recycling (Ansar, 2013).
Why it is so important?
Concern for the environmental problems has been gradually and consistently increasing over the past few
decades among the public. Indian perspective regarding the purchase of green products is focusing in the
same direction with the aim of preserving the environmental eco-system and bio-diversity. McDaniel,
S.W. & Rylander, D.H. (1993) discussed in Strategic Green Marketing that green marketing is taking
shape as one of the key business strategies of the future. Nowadays companies also focus on
manufacturing their products in an environment friendly way as their major corporate strategy. To gain

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Abhigyan Vol. XL No. 1 (April - June 2022) ISSN - 0970-2385; eISSN -2583-1445

competitive advantage in the changing world, firms are following the demand and current trends of
consumers & making changes and improvement over time.
Green Consumers and their Purchase Intention
Green Consumers are the ones who support eco-
friendly attitudes and/or who purchase green
products over the Over the past few decades environmentalism and conventional products
green marketing emerged as a major aspect due
(Boztepe, 2012). Product to increased environmental issues such as ozone that incorporates the
strategies in recycling or with depletion, earthquake, acid rain, deforestation, recycled content, reduced
packaging or using fewer land degradation, ozone depletion and many toxic materials to reduce the
impact on the natural more. This resulted in an increase in consumer environment is known as
concern over the ecological balance and its
green products or eco- restoration by demanding eco-friendly products.
friendly products
(Elkington, 1999). There is a growing interest among the
consumers around the world towards the environmental
concern and protection of their surroundings.
Why Companies are Using this as a Strategy?
Green marketing consists of all activities designed to generate or facilitate any exchanges that involve
satisfying human needs and wants with minimal impact or no impact on the environment. Nowadays,
consumers are more aware and concerned about their surroundings and environment. Although polls
from the public and their opinions consistently show that consumers would prefer to choose a green
product or eco-friendly product over other products that are less friendly to the environment when all
other things are equal, those “other things” are rarely equal in the minds of consumers (Hackett, 2000).
Also, over the past few decades environmentalism and green marketing emerged as a major aspect due to
increased environmental issues such as ozone depletion, earthquake, acid rain, deforestation, land
degradation, ozone depletion and many more. This resulted in an increase in consumer concern over the
ecological balance and its restoration by demanding eco-friendly products.
Increased use of green marketing is depending on five possible reasons (Polonsky, 1994b):
• Organizations perceive environmental marketing to be an opportunity that can be used to achieve
their objectives (Keller, 1987 & Shearer, 1990).
• Organizations believe they have a moral obligation to be more socially responsible. Governmental
bodies are forcing firms to become more responsible (Davis, 1992).
• Competitors environmental activities pressure firms to change their environmental marketing
activities (Davis, 1992).
• Cost factors associated with waste disposal or reductions in materials usage forces firms to modify
their behavior (Keller, K.L., 1993).
Strategies Used to Enhance Purchase Intention of Green Products
It is observed that people who care for the surroundings will demonstrate their concerns through various
activities such as evaluating and assessing the products which they decide to buy to make sure that they
are purchasing eco-friendly products as described in the paper (Suchard & Polonski, 1991). As
civilization is increasingly apprehensive about the natural surroundings, both individuals and businesses
have begun to place more emphasis on positive reinforcement and considering the realities of the
situations or actions that may have a negative impact on the environmental surroundings (Polonsky,
1994). Once customers value a product's beneficial effects, price will no longer be an impediment to buy
(Moser, 2015). Sixty-Six percent of customers said that they would be ready to spend much for
environment friendly products (Nielsen, 2015). People look for hints about the eco-friendliness of
product lines such as whether that particular company has a corporate image for being eco-friendly,
options on packaging like ecolabels, certifications and options for post consumption such as recycling.
There has been little research that shows that marketing communications of green products affect only
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Green Consumerism: Consumer Purchase Intention and Behavior towards Green Products in FMCG Sector

limited level of consumer response.


Green marketing/ advertising is thought to be an efficient strategy for enhancing goods and services and
investment opportunities because it is closely related to environment sustainability. Sustainable
consumers are a central component for companies or businesses operating in today's economic situation
since they are regarded as a driving factor for usage of those products. It is the responsibility of the
organization to quickly adapt to changes that are happening in the growing environment as a result of
massive complexities while working on improving environment friendly products. Environment
sustainable marketing and its related outcomes are becoming an important instrument for improving
business practices to ensure the long-term viability of enterprises. In current market place, green
marketers have yet to investigate environment sustainable branding. Consumer perceptions on eco-
friendly products could be influenced by brands as an effective environment friendly stance necessitates
brand differentiation. An appropriate and very well described eco-friendly standards marketing strategy
and pricing structure enhances environment friendly activities for increasing market competitiveness.
Aside from environment concerns, there are variety of reasons why businesses are embracing eco-friendly
marketing. Political pressure, corporate responsibility towards environment, corporate entity, opportunity
and fierce competition are all primary motivators for businesses to embrace eco-friendly marketing. Apart
from meeting consumers' needs and desires and contributing to environment sustainability, there are
many advantages from eco-friendly marketing for enterprises. Environment friendly marketing enables
enterprises to build customers trust while still increasing revenue growth and profit margins.
Furthermore, eco-friendly marketing stimulates the overall growth of businesses which in turn enhances
the business opportunities of being a specific deterrence for government subsidies and also helps in
expanding the customer base.
Nowadays, public concern for environmental issues has steadily increased appealing to preserve nature
and biodiversity. Indian perspective regarding green products is also gradually increasing. Green
marketing has become an important strategy in business since the rise of environmental awareness among
countries. With greater awareness rising among the public, especially with reference to the global
warming and climate change phenomenon, people have become cautious with regard to their purchases,
especially towards the nature of purchased products. As environmental awareness is able to serve a clear
purpose for “Green Consumerism”, consumer behaviors are able to show the applicative potential of
green consumerism. This would underline the consumer buying behavior for green products. This study
gives a brief idea about consumer attitude and intention towards their purchase of green products and
consumer purchase behavior of green products with respect to their gender.

Theoretical Framework

Environmental
Consciousness

Ecolabels &
Packaging
Purchase Behavior

Gender based
Attitude

Perceived Product
Quality

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Abhigyan Vol. XL No. 1 (April - June 2022) ISSN - 0970-2385; eISSN -2583-1445

Conceptual Model
A. Environmental Consciousness
Consumers who are more concerned about the environment and its surrounding in order to protect the
environment from the activities that harm the environment. These consumers are more concerned and
hence do not purchase products that are harmful to the environment.
B. Ecolabels & Packaging
Nowadays consumers increasingly trust ecolabels.
Aside from environmental concerns, there are variety of
Ecolabels & packaging is reasons why businesses are embracing eco-friendly therefore effective in
demonstrating and marketing. Political pressure, corporate responsibility emphasizing sustainability.
towards environment, corporate entity, opportunity and
The relevant symbol of eco- fierce competition are all primary motivators for label & packaging gives the
consumers a clear signal that businesses to embrace eco-friendly marketing. Apart from the ingredients used are
meeting consumers' needs and desires and contributing
sustainable. Consumers to environment sustainability, there are many advantages
therefore are making
purchases looking for those from eco-friendly marketing for enterprises. ecolabels & sustainable
packaging.
C. Gender based Attitude
Gender is one of the major factors that affects consumer purchase behavior. When gender differs, the
perception of consuming the products is different as well. Men and Women tend to have different
choices while purchasing because of the difference in their upbringing and socialization.
D. Perceived Product Quality
Perceived product quality may be defined as the way in which a customer views a product's brand equity
and overall superiority compared to the available alternatives (Aaker, 1991; De Chernatony, 2009). This
is also one of the factors that influences consumer purchases, sometimes the customer's perception of the
overall quality or superiority of a product differs with respect to the intended purposes, relative to the
alternatives.
Research Objective
The main objective is to study consumers' attitude and purchase intention towards green products in
FMCG sector. The secondary objective is to study and compare the gender influence on their purchase
behavior of green products in FMCG sector.

Hypothesis
This research focuses on seven demographic variables viz.., age, gender, educational qualification,
employment status, monthly income, marital status, family type. There are 28 hypotheses framed to find
out if there are any significant variations among respondents of different demographic variables of all
four factors with respect to their purchase behavior.
Environmental Consciousness
Age:
H0: There is no significant variation among respondents of different age groups with respect to
environmental consciousness in their purchase behavior.
HA1: There is a significant variation among respondents of different age groups with respect to
environmental consciousness in their purchase behavior.
Similar hypotheses have been written to test the significance of gender, educational qualification,
employment status, monthly income, marital status and family type.
Ecolabels & Packaging
Age:
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Green Consumerism: Consumer Purchase Intention and Behavior towards Green Products in FMCG Sector

H0: There is no significant variation among respondents of different age groups with respect to ecolabels
& packaging in their purchase behavior.
Hb1: There is a significant variation among respondents of different age groups with respect to ecolabels
& packaging in their purchase behavior.
Similar hypotheses have been written to test the significance of Gender based attitude and Perceived
product quality with respect to gender, educational qualification, employment status, monthly income,
marital status and family type.
Research Methodology
The target group in this study comprises consumers of age group who are above 24 that includes both
male and female households of Tamil Nadu and Kerala
working professionals, self- employed, home makers and
students. The selected population is finite in
nature. The sampling It has been shown that people technique adopted is
convenience sampling as the with higher monthly income are respondents consists of
people who are inhabitants more concerned about spending of Tamil Nadu and Kerala.
Sample size of the study is on eco-friendly products. 203. Primary method of
data collection process has b e e n u s e d . Pre p a re d a
Questionnaire and circulated among the selected sample.
One-way ANOVA is used to f i n d o u t i f t h e re i s a
significant variation among respondents of various age groups, with respect to all four factors such as
environmental consciousness, ecolabels & packaging, gender-based attitude and perceived product
quality.

Analysis and Interpretations


Analysis of variance has been performed to analyze the difference of mean among different demographic
variables viz., age, gender, educational qualification, employment status, monthly income, marital status,
family type for all 4 factors that is environmental consciousness, ecolabels & packaging, gender-based
attitude, perceived product quality which influences the consumers purchase behavior.
The following has been explaining the analysis of variance of means with respect to the various
demographic variables of all 4 factors that are environmental consciousness, ecolabels & packaging,
gender-based attitude, perceived product quality that influences the consumers purchase behavior:
In one-way ANOVA, the p-value is not significant for any of these factors: environmental consciousness,
ecolabels and packaging, gender-based attitude and perceived product quality with respect to the
demographic variable age, gender and educational qualification which do not influence the consumers
purchase behavior of eco-friendly products.
Figure I explains the demographic variable (employment status) w.r.t all four factors of purchase
behavior. In one-way ANOVA, the p-value is significant for ecolabels and packaging factor is found to be
0.063 respectively, with a confidence interval of 95% that influences the consumers purchase behavior of
eco-friendly products and other factors like environmental consciousness, gender-based attitude,
perceived product quality is not significant with respect to employment status, thereby not influencing
the consumers purchase behavior of eco-friendly products.
When monthly income varies, the p-value is significant for all four factors that are environmental
consciousness, ecolabels and packaging, gender-based attitude and perceived product quality which are
found to be 0.017, 0.009, 0.025 & 0.009 respectively, with a confidence interval of 95% with respect to
the demographic variable monthly income that influences the consumers purchase behavior of eco-
friendly products.

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Abhigyan Vol. XL No. 1 (April - June 2022) ISSN - 0970-2385; eISSN -2583-1445

Figure I: ANOVA Table Depicting Variation in Means of Samples Belonging to


Varying Categories of Employment
Sum of Squares df Mean Square F Sig.
Environmental Between Groups 3.528 3 1.176 1.753 .157
consciousness Within Groups 132.809 198 .671
Total 136.337 201
Eco labels and Between Groups 3.940 3 1.313 2.466 .063
packaging Within Groups 105.466 198 .533
Total 109.406 201
Gender based Between Groups 1.571 3 .524 1.258 .290
attitude Within Groups 82.434 198 .416
Total 84.005 201
Perceived Between Groups 2.916 3 .972 1.688 .171
product quality Within Groups 114.019 198 .576
Total 116.936 201
Figure II explains the demographic variable (marital status) w.r.t to all four factors of purchase behavior.
In one-way ANOVA, the p-value is not significant for any of these factors with respect to the
demographic variable marital status which does not influence the consumers purchase behavior of eco-
friendly products. But the p-value is significant for perceived product quality factor and is found to be
0.072 respectively, with a confidence interval of 95%. Other factors like environmental consciousness,
ecolabels and packaging, gender-based attitude is not significant with respect to the demographic variable
family type that is not influencing the consumers purchase behavior of eco-friendly products.

Figure II: ANOVA Table Depicting Variation in Means of Samples Belonging to


Varying Categories of Family Type
Sum of Squares df Mean Square F Sig.
Environmental Between Groups .864 1 .864 1.275 .260
consciousness Within Groups 135.473 200 .677
Total 136.337 201
Eco labels and Between Groups .235 1 .235 .430 .513
packaging Within Groups 109.171 200 .546
Total 109.406 201
Gender based Between Groups .778 1 .778 1.870 .173
attitude Within Groups 83.227 200 .416
Total 84.005 201
Perceived Between Groups 1.879 1 1.879 3.267 .072
product quality Within Groups 115.056 200 .575
Total 116.936 201

Results and Discussions


In monthly income, all four factors that are environmental consciousness, ecolabels & packaging, gender-
based attitude and perceived product quality has a significant effect with respect to the consumer's
purchase behavior. Analysis and results shows that, monthly income variable is found to have higher
variation among the consumers who have a monthly income of more than Rs. 1,00,000, since it has the
highest mean score with respect to all significant factors. Based on the data collected, it is found that the
consumers whose income level is more than Rs. 1,00,000 are showing higher interest and are keen to

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Green Consumerism: Consumer Purchase Intention and Behavior towards Green Products in FMCG Sector

purchase eco-friendly products. It is seen that green products have substantial awareness and consumers
are willing to pay something more for eco-friendly products. It has been shown that people with higher
monthly income are more concerned about spending on eco-friendly products. In employment status,
the factor ecolabels & packaging has a significant effect with respect to consumers purchase behavior.
Results and analysis shows that the consumers who are in in-service are found to have higher variation
among the other employment status, since it has the highest mean score. Here it is known that
consumers who are in in-service are more concerned about the environment and they are showing higher
intention to purchase green products than consumers who are in other employment status.
In family type, the factor perceived product quality
has a significant effect with This study reveals that the ecolabels & respect to consumers
packaging, perceived product quality are the
purchase behavior. From the major prime factors that motivate the consumers results and analysis, it shows
that the consumers who are to interrogate about green products. Moreover, in nuclear family type are
f o u n d t o h a v e h i g h e r manufacturers and marketers can not only variation than consumers
who are in joint family type, consider introducing ecolabels products, and yet since it has the highest mean
score. Here it is found that also work to build consumer trust on the c o n s u m e r s w h o a re i n
ecolabels.
nuclear family type are more concerned in purchasing
environment friendly products than the consumers
who are in joint family type. Also, the study suggests that, the perceived level of quality which is an
overall evaluative judgement of a product's items and a key dimension in product choice and attitude
towards purchase intention of that product (Doorn & Verhoef, 2011). From this study it is revealed that
perceived product quality is a major influencing factor among consumers in their family that induces the
purchase of eco-friendly products. Prem Priya et.al (2006) in their paper “Nature of Family influenced by
Consumer Buying Behavior: Multiple Group Analysis Approach” suggested nuclear family decision
making (51%) was highly influenced by consumer buying behavior with compared joint family decision
making (28%). It was found that consumers who are in nuclear family highly influenced in making
purchases than the consumers who are in joint family. Gender plays an equal and important role in
making purchase decisions of green products. There is no variation and influence among genders in
making purchases of eco-friendly products. From all the above findings, it is found that there is no
gender influence among consumers in purchasing of eco-friendly products, since it does not have a
significant effect on any of those factors with respect to consumers purchase behavior (Prem Priya et.al.,
2006).
Managerial Implications
The findings of this research provide a valued knowledge on the consumers purchase behavior and
intention that leads to purchase of green products especially in FMCG sector. These observations can
assist businesses in developing policies that will improve consumers purchasing decision and usage
behavior toward green products. Marketers would benefit from understanding the determinants to green
purchasing behavior, as this knowledge will allow them to customize their product range and develop
marketing efforts to enhance green purchasing behavior. This study reveals that the ecolabels &
packaging, perceived product quality are the major prime factors that motivate the consumers to
interrogate about green products. Marketers should keep in mind while educating about green products
that these factors have the positive impact among consumers. Moreover, manufacturers and marketers
can not only consider introducing eco-label products, and yet also work to build consumer trust on the
eco-label. This also gives them a chance to construct their communication in accordance with the
requirements in order to expand the target group.
Research Implications
This research study concentrates only on the consumers of down south that is Tamil Nadu and Kerala
which lacks in understanding of Indian consumers purchase intention as a whole. The chosen sample size
for the study is 203 which does not represent all consumers in Tamil Nadu and Kerala. Several significant

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Abhigyan Vol. XL No. 1 (April - June 2022) ISSN - 0970-2385; eISSN -2583-1445

independent variables were discovered in this study. Future research could be conducted by increasing the
number of independent variables and size of the sample, as there could be some other independent
variables affecting consumers green purchasing intention.
Limitations and Future Scope
This current study does not focus on various other measures that influence the consumers purchasing
decisions about green products in FMCG sector. Moreover, only a few factors that leads to purchasing
intention of green products were taken, since it has the primary influence on making purchase decisions.
This study was conducted without having control over other factors that influence the purchasing
intention of green products. Future scope of this study would be to analyze the same by having control
over the other factors that influence the consumers purchase intention of green products to get a more
efficient and beneficial model to explain the same.

Conclusions
From this study it is found that the factors that influence the consumers purchase behavior are
environmental conscious, ecolabels & packaging, gender-based attitude and perceived product quality
with respect to the demographic variable monthly income of more than Rs. 1,00,000. Other than that,
factors ecolabels & packaging, perceived product quality influence the consumers purchase behaviour
with respect to the demographic variables employment status who are in in-service and family type who
are in nuclear family respectively. Above all it is found that the factors ecolabels & packaging, perceived
product quality has a major influence on consumers purchase behavior. In terms of demographics,
consumers whose monthly income is more than Rs. 1,00,000. are showing major interest and are keen in
purchasing eco-friendly products associated with environmental consciousness, ecolabels & packaging,
gender-based attitude and perceived product quality, by coming to the employment status consumers
who are employed in in-service are more concerned about purchasing environment friendly products that
associated with ecolabels & packaging, when seeing about family type consumers who are in nuclear
family type are more interested in purchasing environment friendly products that associated with
perceived product quality with respect to the consumers of Tamil Nadu and Kerala. Also it is found that
there is no gender influence among consumers in their purchase behavior while making purchases
especially people in the south region Tamil Nadu and Kerala.

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