Analysis of Green Marketing

Published Date: 23 Mar 2015

Green marketing is in the focus of present marketing strategy due to the pressure that comes from inclined environmental awareness in the global climate change. Different initiatives have been considered to support environmental programme and practices. This study as a whole tries to understand the penetration level of the green marketing initiatives by companies, the customer acceptance of these initiatives as compared to past data, and understand the various factors responsible for such perceptions. A sample of 54 was used to find the acceptance level, and awareness of the green marketing initiatives as compared to the time of inception of such initiatives. Also various statistical tools were utilised with the help of the aforementioned data sample to pinpoint the factors responsible for such change in the acceptance and awareness phenomenon.

1. INTRODUCTION

1.1 About the Research

The study aims to understand the penetration level of the various green marketing initiatives of the various companies and tries it to understand the acceptance and awareness of such ventures. Using data accrued form 54 respondents who are possible targets of such initiatives the main hypothesis of the awareness of the green marketing initiatives was tested. further research was done to understand the variable that were responsible for any more future trends and changes in the green industry and what have happened u till now .The research has found that there is indeed a high acceptance level which has been shown using the chi square test statistic to prove the hypothesis and also factors have been indentified that contribute to the overall phenomenon.

1.2 Genesis of the problem

Being a student of marketing it has always caught my imagination the various attempts of marketers to address consumer needs utilising whatever opportunity that arises in front of them. One such opportunity is the rising trend of the consumer acceptance to pay premium for green marketed products which was evident to me form the research study done by Daniel W. Elfenbein and BrianMcManus  Washington University, Saint Louis - John M. Olin School of Business and University of North Carolina (UNC) at Chapel Hill which was titled as A Greater Price for a Greater Good? Evidence that Consumers Pay More for Charity-Linked Products 

An in-depth review of this literature proved that there is indeed a rising trend in the consumer acceptance of companies green marketing initiatives. This raised my determination to take up a research with motive to understand any such trend in the Indian affluent market and consumers.

1.3 Major concepts

Before, delving straight into the research work, it would be better to know some of the concepts that would be taken up in the later part of this work, the understanding of which is necessary for the user to understand the research more clearly. These are discussed below:

Green marketing: - 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,

• Modifying advertising.

Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment

Conventional marketing involves selling products that satisfy consumer needs at

affordable prices. Green marketing must also satisfy customer needs at affordable prices, but green marketing has the additional challenge of defining what are green and developing and selling products those consumers will like. Green products balance environmental compatibility with performance, affordability, and convenience. They are typically durable, non-toxic, recyclable, and are often made from recycled materials.

Green products have minimal packaging, and should carry low environmental impact. Green product is a descriptive idiom to distinguish a product that has been designed to have minimal impact on the environment.

Green marketing not only focuses on advertisements and promotion of products with environmental characteristics, but it pervades all the activities of designing, production, packaging and promoting greener products. Green marketing thrives on the underlying philosophy 'Reduce, Reuse and Recycle.

Unlike the conventional marketing green marketing not only ensures the interests of the manufacturers and consumers but it also ensures environmental friendliness by including the activities related with the protection of natural environment. Thus green marketing should look at minimizing environmental harm, not necessarily eliminating it.

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Need

On our planet sources are limited and human needs (wants) unlimited. Recyclable or renewable goods are needed to fulfil the unlimited needs of a costumer. As industries are having limited resources, they have to search for new and alternative ways to satisfy the consumer needs (wants). Thus green marketing is important for the firms to utilize the

limited resources satisfying the consumer needs as well as achieving the organization's selling objectives.

Few reasons why firms are adopting Green Marketing:

1. Social responsibility: Organizations believe that to keep the environment clean is there moral as well as social responsibility.

2. Laws: Laws imposed by various authorities.

3. Competition: Competitor's environmental activities pressure firms to go for green marketing.

4. Cost Reduction: Reduction in cost due to recycling and material usage forces firms to look for green marketing.

The Green Consumer

The green consumers are the driving forces behind the green marketing process. It is they who drive consumer demand, which in turn encourages improvements in the environmental performance of many products and companies. Thus, for a marketer it is important to identify the types of green consumers. Many organizations have found that two out of every three consumer is green in developed country but country like India and its organization has found that one out of every six consumer is green, but their environmental commitments vary because of their different standards, expectation from producers, demand and buying power. It is thus not efficient to say that the green consumer is one who engages in green consumption, specifically, consumes in a more sustainable and socially responsible way. A consumer acquires bundle of wants and needs and this is also true for the green consumer. To satisfy those needs businesses have to break down the market into different groups of consumers that differ in their responses to the firm's marketing mix program. The segments arrived at should preferably have the following features:

1) Measurable 2) Sizeable 3) Accessible 4) Actionable 5) Competitive intensity 6 ) Growth potential A great deal of market research has been concerned with identifying the green consumer. A clear picture has not yet been established and it differs a lot between markets. But some generalizations about the green consumer can be made on the basis of the research done so far. The green consumer:

Is inconsistent

Is confused

Is generally a woman

Are adults who are likely to be more concerned about the environment

Is sophisticated in wants and need

Green Product

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. For example, CNG (Converted Natural Gas) use in the vehicles, super-concentrated laundry detergents not only save energy and packaging, they save end space, money and effort. Organically grown food not only better preserves soil and reduces the amount of toxins in the water supply; they have superior taste and health benefits compared to their counterparts. Therefore green product means any product, which is not hazardous for environment and customer as well, and it also work as a future remedy of negative impact of a product.

Customer Realization Indicators on Green Products

Green product realization by green customer is based on some indicator while they are in buying point. Here the researcher fined some common indicator, which indicates that the particular customer is green.

1. Responsible and careful: when green customer in purchasing point, they always responsible and careful towards environment, hazardous or uncertain future. These customers group introduced as "deep greens".

2. Powerful consumers: Green Consumers always demands multiple option or alternative products so that they can buy green product, as they like best. For example, CNG and four-stroke vehicle is the almost alternative product and green consumers always intend to get several option.

3. Widespread recycling: Green consumer always thinks for further recycling. For example Paper bags recycled again and again.

4. Consciousness for Recycling: Interest on the recycling benefits is high because consumers can link it to real benefits.

5. Interest in greener products: Realization based on availability of greener products. In India, eco-tourism was very unknown word for local tourist but few eco-park establishment in coastal belt and hilly area had changed the scenario and people start liking this kind of things due to green.

6. Health and Quality Perceptions: Consumers have considered products made from recycled content to be inferior, even unclean. Green consumers always make sure that they are safe and secure in the context of health and quality as well.

7. Reliability: Green consumer wants to make sure that the product, which is green, is a reliable in all aspects. They always search for statistics of green product so that they can judge their beliefs.

Realization problem of Green Product

Still green marketing is a growing realization and concept in customer mind for product and service users. Though green marketing seems to be a popular, well-liked and important term, it has not been very successful in practice by the customer in India either attracting customers or in helping the environment. Some realization problems were found through interviewing with sample respondents and also some problems are adjusted through reviewing secondary materials like foreign journals and other literatures. These are follows: -

A. Consumer Association in India is not playing vital role for building consumer consciousness concerning green product and green consumers.

B. Consumers are relying on industry and government too much. They think, they do not have to do anything; it is someone else's problem and someone will solve the problem specially Government.

C. Green marketing has been only implemented within the public relation department giving little room for product improvement or enhancement and real environmental benefits.

D. Green Marketing activities with modest or no attempt being made in product development in the context of green product. Greening sometimes led to a decrease in costs. Whilst some products became cheaper, they were sold at best to provide the company with extra profit. In recent time all environment friendly ordinance passed by the national assembly but its implication program is going very slowest way, which cannot help the product to be green and people to be green consumer as well.

E. It is not clear to the general people that what kinds of benefits are involving in environmental friendly products. Neither customers nor producing organization clearly state environmental benefits.

F. Polluting manufacturing e.g. all chemicals, dying, petroleum and other waste outing organizations tried to respond to the misconceptions or fallacy or misleading notions presented by the media and pressure groups by presenting their own version of "facts" through public relation or promotional departments. The government authority and the related authority have taken extremely modest promotional activities

G. The similar products were produced, but some "new" environmental benefits were added in their promotion to take advantage of the increasing interest customers showed in the environment.

H. There has little practice of "Enviropreneur" marketing that refers environmentally committed person, segment or company that seeks to bring to market innovative new green products.

I. There has no legal authority that can make sure comparative differences of no-environment friendly products and environmental products.

J. There is no set of standard environmental characteristics, which can be harmful for the customers or end users.

A survey constituted through field survey within 100 sample respondents for finding out how conscious a consumer regarding green marketing and how they actually measure a green product. Results appear that consumers are not excessively committed to improving their environment and may be looking to place too much responsibility on industry and government. Ultimately green marketing requires that consumers want a cleaner environment and are willing to "pay" for it, possibly through higher priced goods, modified individual lifestyles, or even governmental intervention. Until this occurs it will be difficult for firms alone to lead the green marketing revolution. Most of the people (32%) believe that green product is for minimizing cost, 23% believes that it is for relative economical rather other competitive products like a minimum cost. And rest of the respondents divided into different opinion like it is a alternative, convenience and environment friendly product. But all in all there is (50%) acceptance level at the inception point of the green marketing initiatives.

1.4 Need for the Study

The following points indicate the need of the study:

This study pinpoints towards a new angle which effectively measures the depth of awareness of the green initiatives taken by companies. Though studies regarding the customer realisation have been earlier attempted. They have been qualitative in nature. This attempt at a survey of the possible customer regarding the awareness and acceptance level of green marketing initiatives paves way for further causal studies and also realises the truth of the belief that there is a growing trend in companies and also customer lean towards ecologically sustainable business models and practices.

This study also aims to theoretically explain why companies want to reduce their carbon foot print and how are they doing it by live examples.

This study helps to identify the various factors and variables quantitatively to hold true to the hypothesis that these variables and factors are responsible for the change in trend as seen when compared to inception of green marketing initiatives.

1.5 Some green marketing ventures

Top 10 Companies that Paint India Green

Judging by the number of large, small and mid-size Indian companies that are setting the trend with green initiatives, India is serious about building environmental sustainability into her business practices. The following companies who made it to the list of top 10 green Indian companies prove the statistics right!

Suzlon Energy

Suzlon One Earth Global Headquarters in Pune - India's greenest building

SuzlonEnergy

The world's fourth largest wind-turbine maker is among the greenest and best Indian companies in India. Tulsi Tanti, the visionary behind Suzlon, convinced the world that wind is the energy of the future and built his factory in Pondicherry to run entirely on wind power. Suzlon's corporate building is the most energy efficient building ever built in India.

ITC Limited

ITC Papekraft's premium range of eco-friendly business paper

ITC Limited

ITC strengthened their commitment to green technologies by introducing 'ozone-treated elemental chlorine free' bleaching technology for the first time in India. The result is an entire new range of top green products and solutions: the environmentally friendly multi-purpose paper that is less polluting than its traditional counterpart.

Tata Metaliks Limited (TML)

Every day is Environment Day at TML, one of the top green firms in India. A practical example that made everyone sit up and take notice is the company's policy to discourage working on Saturdays at the corporate office. Lights are also switched off during the day with the entire office depending on sunlight.

Tata Metaliks Limited (TML)

"Everybody is motivated to do something about reducing carbon footprints", says Harsh Jha, Managing Director - TML

 

 

Newsprint and Papers Limited (TNPL)

Adjudged the best performer in the 2009-2010 Green Business Survey, TNPL was awarded the Green Business Leadership Award in the Pulp and Paper Sector. The initiatives undertaken by this top green firm in India includes two Clean Development Mechanism projects and a wind farm project that helped generate 2,30,323 Carbon Emission Reductions earning Rs. 17.40 Crore.

Tamil Nadu Newsprint and Papers Limited (TNPL)

Aerial view of TNPL

Wipro Technologies

The list of top 10 green Indian companies is never complete without Wipro which climbed to the top five brand league in Green peace's 'Guide to Greener Electronics' ranking. Despite the global financial crisis, Wipro held fast to its commitment towards energy efficiency and was lauded for launching energy star compliant products in the market.

Wipro Technologies

Wipro broadens its green IT initiative

Through its participation in "The Green Grid"

Oil and Natural Gas Company (ONGC)

ONGC's green projects contribute to increased environmental awareness among local communities

Oil and Natural Gas Company (ONGC)

India's largest oil producer, ONGC, is all set to lead the list of top 10 green Indian companies with energy-efficient, green crematoriums that will soon replace the traditional wooden pyre across the country. ONGC's Mokshada Green Cremation initiative will save 60 to 70% of wood and a fourth of the burning time per cremation.

IndusInd Bank

IndusInd's solar-powered ATM expects to save around 1,980 Kw of energy annually

IndusInd Bank

Green banking has been catching up as among the top Indian green initiatives ever since IndusInd opened the country's first solar-powered ATM and pioneered an eco-savvy change in the Indian banking sector. The bank is planning for more such initiatives in addressing the challenges of climate change.

 

 

IDEA Cellular

One of the best Indian companies, IDEA, paints India green with its national 'Use Mobile, Save Paper' campaign. The company had organized Green Pledge campaigns at Indian cities where thousands came forward and pledged to save paper and trees. IDEA has also set up bus shelters with potted plants and tendril climbers to convey the green message.

 

 IDEA Cellular

Hero Honda Motors

Hero Honda is one of the largest two-wheeler manufacturers in India and an equally responsible top green firm in India. The company's philosophy of continuous innovation in green products and solutions has played a key role in striking the right balance between business, mankind and nature.

Hero Honda Motors

Hero Honda Green Ambassadors: winners of the international inter-school environment quiz competition

2. REVIEW OF LITERATURE

2.1 Importance of review of related literature

Literature review has a very special role in forming the research scope and research history which is related to the topic chosen for research. Research is made in order to inform people with new knowledge or discovery. However, it is not to be expected that everybody would willingly believe what we are tackling in our whole research paper. Thus, what we can do to make our research more credible will be to support them with other works which have spoken about the same topic that we have for our research. This is where literature review comes in. This is why literature review involves scanning the pages of any published literature like books, newspaper, magazine, website, webpage, collection, research paper - where we may be able to find any reference to the same topic that we are researching on. There are many reasons why literature review is rendered as a significant part of any research or dissertation paper. Literature review is the part of the paper where the researcher will be given the opportunity to strengthen our paper for we will be citing what other reliable authors have said about our topic. This will prove that we are not just writing about any random subject but that many others have also poured their thoughts on the topic.

2.2 How Literature Review was done?

Firstly, the literature sources to be reviewed were selected. Research Papers (from various research databases such as SSRN, EBSCO, JSTOR etc.), Published papers in various journal of finance of various nations (such as American Journal of Finance, Indian Journal of Finance etc.), Academic papers published in various premier research institutes both within the nation and outside it, books, newspapers, magazines and websites - were taken as the sources for literature review. Book included were also included.

2.3 Literature review main(books and articles)

Cateora Graham, in International Marketing, has drawn a parallel line between green marketing and product development. The author has cited a variety of examples where the importance of green marketing has been laid focus on. Green marketing is a term used to identify concern with the environmental consequences of a variety of marketing activities. It very evident from the author's research and examples the packaging and solid waste rules are burdensome but there are successful cases of not only meeting local standards but also being able to transfer this approach to other markets. [2]

Philip Kotler and Kevin Lane Keller in Marketing Management has initiated the topic by discussing about the relevance of green marketing in the past few decades and has also discussed the explosion of environmentally friendly products. However, according to the author from the branding perspective green marketing programs have not been very successful. Marketers tried and failed with green sales pitches over the last decade because of certain obstacles which the movement encountered. The consumer behaviour is such that most consumers appear unwillingly to give up the benefits of other alternatives to choose green products.

Along with definitions from different sources, the authors Debraj Dutta and Mahua Dutta, of Marketing Management, have given an explanation of what is green marketing. According to the authors green marketing incorporates a broad range of activities including the modification of product, production process and packaging. The authors have also discussed a few literature sources that have focused on green marketing and its relevance in today's era. It was evident that the possible reasons because of which organizations engage in green marketing.

K.K.Shrivastava & Sujata Khandai, the author of Consumer Behaviour in Indian Context, has discussed green marketing legislation in association with the multinational corporations. These face a growing variety of legislation designed to address environmental issues. Global concern for the environment extends beyond industrial pollution, hazardous waste disposal and rampant deforestation to include issues that focus directly on consumer products.

Kenneth E. Clow & Donald Baack the authors of Integrated Advertising, Promotion and Marketing Communication. According to the authors the marketers need to be aware of the threats and opportunities associate with four trends in the natural environment namely shortage of raw materials, increased cost of energy, increased pollution levels and the changing roles of government. New regulations hit certain industries very hard and also that consumers often appear conflicted about the natural environment.

Jacquelyn A. Ottman the author of Green Marketing: Opportunity for Innovation, has explained green marketing from an organizational standpoint, environmental considerations should be integrated into all aspects of marketing new product development and communications and all points in between. According to the author environment should be balanced with primary customer needs. The so-called "green consumer" movements in the U.S. and other countries have struggled to reach critical mass and to remain in the forefront of shoppers' minds. The lack of consensus by consumers, marketers, activists, regulators, and influential people has slowed the growth of green products.

According to the American Marketing Association (Wikipedia), 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. It could be concluded that defining green marketing is not a simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term. As we know that the emerging greenhouse gas reduction market can potentially catalyze projects with important local environmental, economic, and quality-of-life benefits. The Kyoto Protocol's Clean Development Mechanism (CDM), for example, enables trading between industrial and developing nations, providing a framework that can result in capital flows to environmentally beneficial development activities.

Prof. Sanjit Kumar Dash author of Green Marketing: Opportunities & Challenges has mentioned that all activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment. The evolution of green marketing involves (three phases) from this article. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000.

In the Strategic Marketing and Green Marketing, the Green Imperative is impossible to ignore, and companies are scrambling to understand how to develop business models that are more sustainable. After an objective analysis of all product, process, and policy issues associated with your company as well as performing an assessment of your current marketing strategy, we can develop a comprehensive sustainability and corporate responsibility strategy to increase ROI. The organization will then become more efficient through environmental and social responsibility, achieve superior competitive advantage and brand differentiation, as well as enhance your brand image in the marketplace.

In accordance with the Strategic Marketing - Brand Development and Green marketing the brand image is derived from marketing strategy. We can develop the brand identity and mold the company's image within the framework of the strategic marketing plan. This strategy and design teams develop the marketing communications materials around maintaining a positive, distinctive, and consistent brand image in the marketplace.

The American Wind Energy Association has associated green marketing with wind energy. Green marketing can improve the environmental profile of the U.S. electricity supply if marketers sell a power product that includes a substantial fraction of wind, geothermal, biomass (including landfill gas) and/or solar resources. The generation of power from these renewable resource technologies produces few or no air emissions, no carbon. They will be most vulnerable in competitive markets and can most benefit from consumer support. While "green" is difficult to define, and arguments can be made that natural gas and large hydropower are less environmentally harmful than coal, oil, and nuclear power, green-customer demand is unlikely to exceed the supply of large, existing quantities of gas and hydro resources.

Anja Schaefer from the The Open University (BBC) has mentioned that green marketing is there in a sizeable market segment of green consumers who are willing to pay a little more for environmentally friendly products from environmentally friendly companies. Producers and retailers will react to this green demand and environmentally friendly practices will be pushed through the supply chain. Green marketing dates back several decades now, with specialist manufacturers and retailers such as Ben and Jerry's, the Body Shop and so forth, leading the way.

Green Marketing and Social Networks have discussed the problems related to the idea of greening the world through marketing. The article has discussed that organizations are not running charities and their main objective should be to align their own objectives with that of the protection of the environment. And if it is really delivered the environmental goods will deliver positive results for the organization. The programmer already lists quite a few problems with the various environmental targets and actions described by retailers.

David Wigder the writer of Reframing Global Warming across the Political Spectrum provides a different approach towards green marketing from this article. The author says that the green marketers are challenged to efficiently reach consumers and effectively impact their attitudes and behaviors.   Marketing Green's mission is to provide industry professionals with practical strategic marketing advice on how to build green brands and motivate mass market adoption of more sustainable products. Today, there is a common perception that Democrats are more pro-environment than Republicans.

Green marketing and biotechnology (Wikipedia) has provided a relationship between. Biotechnology is often used to refer to genetic engineering technology of the 21st century however the term encompasses a wider range and history of procedures for modifying biological organisms according to the needs of humanity, going back to the initial modifications of native plants into improved food crops through artificial selection and hybridization. With the development of new approaches and modern techniques, traditional biotechnology industries are also acquiring new horizons enabling them to improve the quality of their products and increase the productivity of their systems. Biotechnology is technology based on biology, especially when used in agriculture, food science and medicine.

A Greater Price for a Greater Good? Evidence that Consumers Pay More for Charity-Linked Products by Daniel W.Elfenbein  Washington University, Saint Louis - John M. Olin School of Business

Brian McManus  University of North Carolina (UNC) at Chapel Hill - Department of Economics

Study whether consumers will pay more for products that generate charitable donations, we analyze data from eBay on charity and non-charity auctions of otherwise identical products. Charity prices are 6% greater, on average, than non-charity prices. Bids below the closing price are also greater, as are bids by individuals bidding on identical charity and non-charity products. Bidders appear to value charity revenue at least partially as a public good, as they submit bids earlier in charity auctions, stimulating other bidders to bid more aggressively. Our results help explain why firms may pledge charitable donations, green production, or similar activities.

Green Marketing and its Implication Problem in Bangladesh Mohammad Shamsuddoha 

University of Chittagong

This study implicates that although environmental issues influence all human activities, few academic disciplines have integrated green issues into their literature. This is especially true in marketing. As society becomes more concerned with the natural environment, businesses have begun to modify their behaviour in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. Some evidence of this is the development of journals such as "Business Strategy and the Environment" and "Greener Management International," which are specifically designed to disseminate research relating to business' environmental behaviour. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. In Bangladesh, Green issues are new for all company because they did not have any practiced of it's before. The researcher will find out what is all about green marketing and implication problem of green marketing.

Realization on Green Marketing in Bangladesh Mohammad Shamsuddoha 

University of Chittagong

This study indicates that though green issues convince all human activities, few academic disciplines have integrated green issues into their literature. Businesses have begun to adapt their behaviour in an attempt to address society's "new" concerns. Some businesses have been quick to accept concepts like environmental management systems and waste minimization, and have integrated environmental issues into all organizational activities. One business area where environmental issues have received a great deal of discussion in the popular and professional press is marketing. Terms like "Green Marketing" and "Environmental Marketing" appear frequently in the popular press. Many governments around the world have become so concerned about green marketing activities that they have attempted to regulate them. In Bangladesh, Green issues are new for all company because they did not have any practiced of it's before. Here the researcher will find out how customers are reacting after having a concept like green product.

Green Marketing: Preferences and Paths? Nigamananda Biswas 

Assam University - Department of Business Administration

The study shows that Green marketing is a vital constituent of the holistic marketing concept. Many global players in diverse businesses are now successfully implementing green marketing practices. Green marketing is a new marketing concept and has become a corporate buzzword. It has been a new fashion for the marketers to be greener for gaining competitive advantage over the competitors in the turbulent market. The present paper has made an attempt to highlight the reasons of adopting green marketing approaches over the traditional marketing by the organizations. It has also identified some paths of going green to have edge over the other players in the same industry

3. RESEARCH DESIGN & METHODOLOGY OF STUDY

3.1 Statement of problem

The aim of this study is to investigate immense opportunities and associated challenges in Green Marketing. Green marketing is still in its infancy and a lot of research is to be done on green marketing to fully explore its potential. Marketing Green means having a vision and a plan and taking (cautious) action. As more companies look to promote their environment savvy practices, it's a good idea to pause for a moment and consider what companies are marketing when promoting organization as green or sustainable.

The major focus of this research is three fold

What does the modern day consumer understand of the green marketing initiatives?

What do companies stand to gain from these initiatives

And what is the consumer type who is the best target for these initiatives

3.2 Variables studied

v1= consumer consider environmental aspect of product

v2=green marketing and advertising should be utilised for product service and knowledge

v3= green product and service address environmental issues

v4=green initiatives lead to product innovation

v5=companies green initiatives strengthen its image

v6=companies green presence effects consumer purchase decision

3.3 Objectives of the study

Understanding empirically what shapes the green marketing success.

The reach of the initiatives to protect the environment by companies

The type of customer who is most receptive to the green marketing initiatives

To understand the awareness and acceptance of companies green marketing initiatives

3.4 Hypothesis formed

Main hypothesis

Null hypothesis: - the modern day consumer is not aware of the green marketing initiatives

Alternate hypothesis: - the modern day consumer is not aware of green marketing initiatives

Model fit hypothesis

Null hypothesis = variable s are uncorrelated in the population.

Alternate hypothesis = variables are correlated in the population.

3.5 Design of study

The design of this research is in tune with the objectives of the research

Quantitative techniques have been used for the analysis of data which is primary in nature and has been collected through Internet data collection methods

SPSS tools have been used to prove empirically that there is great opportunity for green marketing initiates and the resulting success

Chi square hypothesis testing is another quantitative test utilised to find out the awareness of the companies green initiatives among consumers.

3.6 Sampling Procedure

Sampling technique: - simple random sampling

Sample size; - 50

Sampling area:- Bangalore

There are two sources through which data is collected.

Primary Data: Primary data has been collected mainly through structured questionnaire.

The questions were designed in an easily understandable manner that the respondents may not have any difficulty in answering them.

Secondary Data: Secondary data has been obtained through websites, books, and online magazines and journals.

3.7 Tools used in the study

Questionnaires

S.p.s.s (statistical package for social sciences)

Microsoft excel

Microsoft word

4. DATA ANALYSIS & INTERPRETATION

4.1 Qualitative test for understanding the factors

This series of tests and analysis is ventured to find out what exactly are the factors responsible for the trend in the green marketing acceptance

The variables were defined according to the past surveys and customer profiles collected from the literature reviews.

Sustainability: Consumer Perceptions and Marketing Strategies by Seonaidh McDonald and Caroline J. Oates

Aberdeen Business School, The Robert Gordon University, UK

Management School, University of Sheffield, UK

The above mentioned study has helped a great deal in understanding the green consumer and what is expected of the companies to fulfil these needs. The consumer profile can be softly described as below

Responsible and careful

Powerful consumers

Widespread recycling

Consciousness for Recycling

Interest in greener products

Health and Quality Perceptions

Reliability

Form the consumer requirements a questionnaire pattern was created which would measure in a five point scale the following variables

v1= consumer consider environmental aspect of product

v2=green marketing and advertising should be utilised for product service and knowledge

v3= green product and service address environmental issues

v4=green initiatives lead to product innovation

v5=companies green initiatives strengthen its image

v6=companies green presence effects consumer purchase decision

The response for questionnaire was collected via the net form model.

The data was quantified and the correlation was calculated to understand the interdependency of the variables within each other.the correlation matrix is a s follows in the next sheet.

Form the correlation matrix the researcher can easily understand whaich variables have correlation with each other.

In other words one can understand whether there is actual match between the variables or they are totally arbitrary and miles apart.

The Correlation matrix

 

variable 1

variable 2

variable 3

variable 4

variable 5

variable 6

variable 1

1

variable 2

0.038091

1

varibale 3

0.273314

0.545132

1

variable 4

0.284376

0.537212

0.582958

1

variable 5

0.269529

0.527679

0.495364

0.625899

1

variable 6

0.383186

0.337526

0.471182

0.549567

0.580975

1

Test for the factor analysis model fit

Test type = Bartlett's test of spehricity

Null hypothesis = variables are uncorrelated in the population

Alternate hypothesis = variables are correlated in the population

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. = 0.8255

Approx. Chi-Square

107.8317

df

15

Sig.

0

The approximate chi square statistic is 107.8317 with degrees of freedom 15 which is significant at the level of 0.05.

the value of KMO statistic is .8255 is also large (>0.05).

Hence null hypothesis is rejected

Result: - Factor analysis may be considered an appropriate technique for analysing the correlation matrix

Principle component analysis

Refer to the annexure for the complete result

Scree plot

Results from Factor analysis:-

Based on the scree plot and Eigen values and percentage of variance

THE no of factors which best explain the phenomenon of consumer acceptance and perception of green marketing

= 2, these two explain 72% of the variables.

The two factors extracted for further qualitative research are

1- Initiative benefits

2-cusotmer perception benefits

4.2 Quantitative analysis to prove the main hypothesis

These series of process are used to test main hypothesis that was mentioned in the research methodology section of the report

The chi square test was utilised to test the main hypothesis so as o clearly compare the changing trend and the consumer acceptance of the green marketing initiatives at present and that one at the inception of the industry

The chi square test statistic is utilised to pitch together the observed data and the expected data and provide comparative X^2 statistic which at a significance level can be used to test the critical and calculated value to prove the hypothesis true or false

The test is as follows

MAIN HYPOTHESIS TESTING

Sl no

Variable

observed

expected

o-e

(o-e)^2

(o-e)^2/e

1

Q1

50

25

25

625

25

2

Q3

21

25

-4

16

.64

3

Q11

48

25

23

529

21.6

47.24

X^2 = 47.24

dF= 2

Significance level = 0.05

chi table value or critical val = 7.824

cal value > critical value

Hence reject null hypothesis and accept alternate hypothesis.

Form this quantitative test it has been proved that there is awareness present in the modern day customer when it comes to green marketing initiatives. and this gives rise to a profitable trend which will see many companies foraying in to this industry.

Graphical results

Respondent awareness result

1= not aware

2= aware

Information sources for green marketing initiatives

1=television 3=friends /family 5=internet

2=newspaper 4=magazines

Consumer participation in green marketing activities

1= yes , 2 = no

Consumer perception of companies motive for green initiatives

1=government pressure

2= competitive pressure

3=as a part of corporate social responsibility

4=new opportunities and markets

Consumer knowledge of green marketing initiatives.

1= product modification

2=change in production process

3= change in packaging

4= modification in packaging

5= all of these

5. FINDINGS, SUGGESTIONS & CONCLUSION

5.1 Major Findings & conclusion

In this study I set out to broaden the relationship between green purchase perception and green initiative success and to test it empirically.

Using complementary quantitative and qualitative analyses has allowed me to examine the data from different perspectives. Both our qualitative and quantitative analyses have strongly confirmed that there is high amount of acceptance in the green consumer when compared to past data and the factors which effect them are actually beneficial to the green initiatives.

The findings contribute to the understanding of a number of facets of the green marketing process, and the customer profile related to this industry

. The perception archetypes that have been outlined in the variable selection part of the survey have been taken from a past research and suggest that individuals have different outlooks, which have a propensity to colour the way in which they perceive green activities overall.

These outlooks can be biased either in terms of perception of the initiative evolved by the company to appear green and market itself.

I suggest that these issues need further examination. To do this, academics may need to step outside the traditional boundaries of their specializations and integrate the knowledge of several broad fields of work. Qualitative research will be needed to understand the reasons for the associations that have been uncovered between different activities. More research will be needed to unpack the perceptions of customer and initiative which have been derived from the factor analysis

Finally, having verified that company initiative and consumer perception are both important variables for understanding consumer perceptions of different activities, we would suggest that more work is needed to discover whether these are the only two possible continua that are relevant to understanding consumer perceptions of Sustainability. It is possible that there are other concepts, which we have not considered here, that also impact on the adoption of sustainable consumption practices. Studies taking a grounded approach to the perception of sustainability activities will be crucial in uncovering any other factors that similarly affect the consumption process.

5.2 Limitations of the study

1) As the topic of research is wide so time is the main constraint in the research.

2) Target audience is also another limitation as accessing people for the optimum sample is tough

3) Some respondents were not interested in giving answer and they appeared to be busy and bored at the very sound question.

4) The research is confined to a certain parts only and does not necessarily show a pattern applicable to all of Country.

5) In a rapidly changing environment, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings.

6) Time and money are one of the major constraints of any research activity and this is also attributed with this research