“GREEN MARKETING” POTENTIAL AS MEASURES Journal of Marketing and Human Resource Management, 7(2), ... Green Marketing refers to holistic ... questionnaire created and will be ...

Download “GREEN MARKETING” POTENTIAL AS MEASURES   Journal of Marketing and Human Resource Management, 7(2), ... Green Marketing refers to holistic ... questionnaire created and will be ...

Post on 03-May-2018

212 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • http://www.iaeme.com/IJMHRM/index.asp 47 editor@iaeme.com

    International Journal of Marketing and Human Resource Management (IJMHRM) Volume 7, Issue 2, MayAug (2016), pp. 4760, Article ID: IJMHRM_07_02_005 Available online at http://www.iaeme.com/ijmhrm/issues.asp?JType=IJMHRM&VType=7&IType=2 ISSN Print: ISSN 0976 6421 and ISSN Online: 0976 643X Journal Impact Factor (2016): 5.5510 (Calculated by GISI) www.jifactor.com IAEME Publication

    GREEN MARKETING POTENTIAL AS MEASURES

    FROM CONSUMER'S PURCHASING BEHAVIOURS

    Dr. Mehal Pandya

    Deputy Director, Knowledge Management and Research Organisation at Dr.BAOU, Ahmedabad, Gujarat

    ABSTRACT

    Environmental problems have led government and companies increasingly shift their focus on

    green marketing and green products. Consumers today also are a stakeholder of this initiative as

    without them all the efforts in this regards would fail. Green Marketing has become an important

    strategy in businesses since the international 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 regards to their purchases,

    specifically towards the nature of purchased products. As green marketing continues therefore to

    evolve not only into a strategy but into a platform across the world, India is still at the onset of a green

    marketing phenomenon. To therefore assess the direction of this phenomenon, the study is aimed at

    determining the green marketing potential in India as assessed through the perspective of consumers.

    Environmental Awareness and Consumer Behaviour was used in order to assess the presence of a

    green potential in India. As environmental awareness is able to serve a clear purpose for green

    consumerism, consumer behaviour is able to show the applicative potential of green consumerism.

    Through questionnaires, results of the study were able to reveal a strong green potential existing in

    India, both with positive indicators within environmental awareness and consumer behaviour.

    Key words: Green Marketing, Consumer Behaviour, Global Warming, Climate change, Eco-Friendly products, Green products, Sustainable Development

    Cite this Article: Dr.Mehal Pandya, Green Marketing Potential As Measures From Consumer's Purchasing Behaviours. International Journal of Marketing and Human Resource Management, 7(2), 2016, pp. 4760. http://www.iaeme.com/ijmhrm/issues.asp?JType=IJMHRM&VType=7&IType=2

    1. INTRODUCTION

    According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. "Green Marketing" refers to holistic marketing concept wherein the production, marketing, consumption and 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, and harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. While the shift to "green" may appear to be expensive in the short term, it will

  • Dr.Mehal Pandya

    http://www.iaeme.com/IJMHRM/index.asp 48 editor@iaeme.com

    definitely prove to be indispensable and advantageous, cost-wise too, in the long run (Mishra, 2010). Green marketing generally aims to promote environmentally friendly products and a safe environment where people could stay. At present green marketing is widely becoming a phenomenon throughout the world as concerns on our environment have begun to escalate in the past few decades. Every year, the population of people who are turning towards green brands or environmental friendly products are increasing, thus, magnifying the phenomenon exponentially. Businesses in almost every industry nowadays are flaunting the green features of their products and services in every chance they get.

    2. OBJECTIVES OF THE STUDY

    This study is aimed at determining the purchasing behaviour of target Markets in India with reference to green marketing, to fully understand the green market potential of the country. To meet such objectives, the specific questions that follow were raised:

    1. What are the underlying perspectives of consumers in India on green marketing, green brands and green products and in relation to current environmental issues and concerns?

    2. Would the awareness of consumers in India on environmental issues and concerns affect their perception of the need for a full circulation of environmental friendly products in their country?

    3. Is the target market amenable to the consumption of green goods and services once made available within the country?

    4. What certain green goods and services have the greatest potential for profitability and return of sustainability within the country?

    5. Is there a potential market for green goods and services in the country based on the gathered perceptions of consumers in the country?

    3. SCOPE OF THE STUDY & RESEARCH METHODOLOGY

    This study will cover literatures, research questions and structure, a designed research method, and a questionnaire created and will be distributed to specific residents in India. After which, answers for the research question are going to be tallied through which conclusions are to be formulated and implications will be drawn. The main objective of this study is to determine the potential of a green market in India, particularly the potential of selling environmental friendly goods and services. This objective will met through determining the consumers perspectives on green products and services, their effects on the environment and their probable support with regards to the launching of such goods and services within their country.

    As such, the study will only cover the following set of variables:

    1. Green marketing potential or the potential for a green market in India;

    2. Perspectives of Consumers (with reference to their purchasing behaviour);

    3. Possible profitability of green market in India;

    4. Possible return of sustainability of a green market in India.

    As such, the study will not consider the viewpoints of stakeholders, companies, etc., but would only be focused on consumers. In terms of data collection scope, a questionnaire was used as the main instrument for gathering data from particular residents in India. A set of questions were asked to the participants to assess whether green marketing in the country has a potential. With that detail noted, the study is descriptive in nature with a survey method applied as a technique for data collection processes. Data analysis that will follow will be quantitative in nature rather than qualitative.

    4. REVIEW OF PREVIOUS STUDIES

    Brahma, M. & Dande, R. (2008), The Economic Times, Mumbai, had an article which stated that, Green Ventures India is a subsidiary of New York based asset management firm Green Ventures International. The latter recently announced a $300 million India focused fund aimed at renewable energy products and supporting trading in carbon credits.

  • Green Marketing Potential As Measures From Consumer's Purchasing Behaviours

    http://www.iaeme.com/IJMHRM/index.asp 49 editor@iaeme.com

    Donaldson (2005) in his study realized in the Great Britain initially concluded that in general the ecological attitude of consumers changed positively. This study reported the strong faith of consumers in the known commercial brands and in the feeble behaviour referring to the "green" claims, which was the main cause behind the consuming failure to interpret their concerns beyond the environment in their behaviour.

    Sanjay K. Jain & Gurmeet Kaur (2004) in their study environmentalism have fast emerged as a worldwide phenomenon. Business firms too have risen to the occasion and have started responding to environmental challenges by practicing green marketing strategies. Green consumerism has played a catalytic role in ushering corporate environmentalism and making business firms green marketing oriented. Based on the data collected through a field survey, the paper makes an assessment of the extent of environmental awareness, attitudes and behaviour prevalent among consumers in India.

    5. LITERATURE SURVEY

    The purchase behaviour of consumers in India towards green products and the potential of green marketing as a company strategy in the country have been measured. In order to address the endeavours of this research, it is important to construct an irrefutable literature that is based on different studies made.

    5.1. Marketing

    The main mantra of todays marketing activities is purchasers satisfaction, a wide range of consumer producer goods have been designed with the development of new markets and new selling opportunities, and for many marketing has become a good profession. Marketing is the responsibility of the management, not just a function delegated to specialists (Silk, A. J., 2008). In addition, the American Marketing Association (Gregory T. Gundlach and William L. Wilkie 2009) defined marketing as an organizational role and course of procedures for communicating, producing, and delivering value to customers, dealing with customer relationships in a manner that will benefit both the organization and its stakeholders. It is often said that todays consumer backdrop is shaped by two powerful forces, technology and globalization. In relation to these innovations in technology and globalization, problems created by industrial activities have created ecological problems; a very good example of this is Global warming. The fundamental role of marketing in the enterprise was drawn from the fact that marketing is a procedure through which a firm produces value for its selected purchasers. Moreover, value is created by meeting customer requirements, therefore a firm must define itself not by the product it offers in the market, but by the customer benefit it offers (Silk, A. J., 2008).

    5.2. Green Marketing

    Green marketing or environmental marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such as the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. This description assimilates a great deal on the traditional part of the marketing definition that is All activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants. Consequently it guarantees that the interest of the entire organization and all of its consumers is safeguarded because voluntary exchange will not materialize unless both the buyer and seller will benefit equally. Furthermore, the definition above includes safeguarding nature by making an effort to lessen the unfavourable impacts of this exchange on the environment (Polonsky, 1994b:2).

    A holistic and responsible strategic management process that identifies, anticipates, satisfies and fulfils stakeholder needs, for a reasonable reward, that does not adversely affect human or natural environmental well-being (Charter (1992), p. 394)

    Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological Marketing. While green marketing came into prominence in the late 1980s and early 1990s, it was first discussed much earlier. The American Marketing Association (AMA) held

  • Dr.Mehal Pandya

    http://www.iaeme.com/IJMHRM/index.asp 50 editor@iaeme.com

    the first workshop on "Ecological Marketing" in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled "Ecological Marketing" [Henion and Kinnear 1976a].

    5.3. The Green Consumer

    Green consumer Who is mindful of environment related issues and obligations, and is supportive of environmental causes to the extent of switching allegiance from one product or supplier to another even if it entails higher cost.

    5.4. Green Products and Its Characteristics

    The products those are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development. We can define green products by following measures:

    Products those are originally grown,

    Products those are recyclable, reusable and biodegradable,

    Products with natural ingredients,

    Products containing recycled contents, non-toxic chemical,

    Products contents under approved chemical,

    Products that do not harm or pollute the environment,

    Products that will not be tested on animals,

    Products that have eco-friendly packaging i.e. reusable, refillable containers etc.

    Green product stresses the straight and tangible benefits provided by greener design, such as energy efficiency or recycled content, rather than stressing the environmental attributes them. Reducing the environmental impact of a product improves the product's overall performance and quality in ways that are important, not just the most dedicated and loyal green consumer, but to all consumers.

    5.5. Green Marketing Process

    GREEN MARKETING

    External Green Ps

    Paying customers

    Providers

    Politicians

    Pressure groups

    Problems

    Predictions

    Partners

    Internal Green Ps

    Products

    Promotion

    Price

    Place

    Providing info.

    Processes

    Policies

    The 4 Ss of Green Success

    Satisfaction of stakeholder needs

    Safety of products and processes

    Social acceptability of the company

    Sustainability of its activities

  • Green Marketing Potential As Measures From Consumer's Purchasing Behaviours

    http://www.iaeme.com/IJMHRM/index.asp 51 editor@iaeme.com

    6. GREEN MARKETING IN INDIA

    India is a world leader in green IT potential, according to a recently released global enterprise survey. Among the companies that have succeeded thus far in their green marketing strategies are Apple, HP, Microsoft, IBM, Intel, Sony and Dell. HCL has a comprehensive policy designed to drive its environmental management program ensuring sustainable development. HCL is duty bound to manufacture environmentally responsible products and comply with environmental management processes right from the time products are sourced, manufactured, bought by customers, recovered at their end-of-life and recycled.

    6.1. Why Green Marketing in India?

    As resources are limited and human wants are unlimited, it is important for the market...

Recommended

View more >