Products Which Are Environmentally Safe

Published Date: 02 Nov 2017

Introduction

Green marketing is the marketing of the products which are environmentally safe. Though, the developed countries started focusing on green marketing in 1980s and early 1990s, but in India it is in trend from last few years only. Green marketing has a broader perspective as compared to the traditional marketing. Earlier marketers were having two main concerns, their own and of the customers, but now, concern for the environment is equally important. So, the endeavour is to make a balance between the organization, the customer and the environment. 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. According to Pride and Ferrell (1993) green marketing, also alternatively known as environmental marketing and sustainable marketing, refers to an organization’s efforts at designing, promoting, pricing and distributing products that will not harm the environment. Polonsky (1994) defines green marketing as 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.

Literature Review

The researches done on the various dimensions of green marketing in India and other countries have been discussed below:

Peattie and Crane (2005) explore the history of "green marketing" since the early 1990s and provide a critique of both theory and practice in order to understand how the marketing discipline may yet contribute to progress towards greater sustainability. The paper examines elements of green marketing theory and practice over the past 15 years by employing the logic of the classic paper from 1985 "Has marketing failed, or was it never really tried" of seeking to identify "false marketing" that have hampered progress. That much of what has been commonly referred to as "green marketing" has been underpinned by neither a marketing, nor an environmental, philosophy. Supporting this view Singh, Surinder Pal (2008) attempts to introduce the terms and concepts of green marketing; briefly discusses why going green is important; examines some of the reason that organizations are adopting a green marketing philosophy; and mentions some of the problems with green marketing. However Alsmadi, Sami (2007) said this pro-environmental attitude was not sufficient to turn good intentions into actual buying actions, possibly due to several factors, such as loyalty to traditional products and weak credibility of "green" claims. His article stresses the need to link consumers’ good intentions to actual buying behaviour through a green marketing strategy, which focuses on the unique characteristics of green products and how they impact the environment. This can be better understood by how Lee, Kaman (2008), tries to identify important factors that affect green purchasing behaviour which showed that social influence was the top predictor of adolescents’ green purchasing behaviour, followed by environmental concern as the second, concern for self-image in environmental protection as the third, and perceived environmental responsibility as the fourth top predictor. Hashem and Al-Rafai (2011) also investigates the influence of applying green marketing elements mix (product, pricing, distribution and promotion) by chemical industries companies in three countries in West Asia on consumer's mental image. As well as, they found out if there were differences in applying green marketing mix elements by chemical industries companies on consumer's mental image according to country, gender, age, educational level and income. The study population consisted of citizens in three Arab States in West Asia that represented three different types of economies; free economy, free economy depends mainly on oil and socialist economy respectively. Statistical analysis revealed that there applying green marketing mix elements by chemical industries companies in all countries on the consumer's mental image is significant. They found that applying green marketing mix elements by the chemical industries companies in three countries on consumer's mental image is significant according to country, gender and age only. This trend can also be seen in paper by Mishra, Pavan and Sharma, Payal (2010), which discusses the growing awareness among the consumers all over the world regarding protection of the environment which has created new vistas of opportunity for green marketing and products. But contrary to these opportunities green marketing also poses certain challenges such as need for standardisation, patience and perseverance. Welling and Chavan (2010) in their paper try to study the feasibility of practicing green marketing in case of small and medium scale manufacturers summarised that Eco labelling is still not popular in small and medium scale manufacturers. They concluded that Green marketing is not going to be an easy concept. In support of this view Rahbar, Ehlam and Wahid, Abdul Nabsiah (2011) have studied the relationship between trust in eco-label, eco-brand and purchase behaviour and found it to be significant. This means that the respondent’s trust in eco-label and eco-brand has a positive effect on consumer’s actual purchase behaviour. Fan, Haofu and Zeng, Lin (2011) explored several factors and analysed marketing strategies of company they interviewed according to four Ps of conventional marketing mix, and finally put forward their own opinions about how green food companies use four Ps of conventional marketing mix to implement green marketing strategy in green food industry in China. Even during a recessionary period Murphy, Richard, Graber, Melissa and Stewart Abigail (2010) determined whether green marketing had an impact on consumer behaviours. Their survey included a large number of participants and worldwide data which demonstrates how consumers respond to green marketing and comparing country to country. The results indicate while different countries face unique environmental issues, the consumer is generally accepting of green marketing efforts. This study concludes that despite the recessionary period the green movement is likely to persevere.

Objectives of the Study

To know the attitude of people towards green products.

To study what motivates customers to buy and use green products.

To explore the green marketing strategies used by the various organizations.

Hypothesis

In view of information collected by reviewing the existing literature, the following hypotheses had been developed.

H0 : No significant difference exists between male and female respondents as regards to their attitude towards green marketing.

Research Methodology

Descriptive and exploratory research design has been used in this research. Primary data has been collected mainly through structured questionnaire. The survey questionnaire consisted of 3 parts: (1) Demographic profile (2) Motivation and (3) Attitude of people towards Green Marketing. Assessment of customer attitude has been obtained on a 5-point Likert’s scale, ranging from ‘strongly agree’ to ‘strongly disagree’. Secondary data related to previous studies and strategies of the companies has been obtained from their official websites and other authentic sources like books, and online magazines and journals. The data has been collected from NCR region. The sample has been drawn using judgemental and quota sampling and the sample size is 200. Out of 200 respondents, 100 male and 100 female respondents have been taken.

Data Analysis

Respondents’ Profile

The demographic profile of the respondents is presented in table 1:

Age: Majority of the respondents were from the young age group of 18-25 (31 per cent), 26 per cent were 25-35, 21 per cent from 35-45, 16 per cent from 45-55 and 6 per cent from 55 or above age group.

Gender: Equal number of male and female respondents was chosen. So, 50 per cent of the respondents were males and remaining 50 per cent were females.

Income: More than one-third (39 per cent) of the respondents were from income group of Rs. 25000 to Rs. 50000, around one fourth (27 per cent) of the respondents were from below Rs. 25000 income group.

Occupation: Half of the respondents belonged to service class, 16 per cent were students, 13 per cent businessmen and the rest were housewives or retired people.

Table 1 Demographic profile of the respondents

Demographic Factors

Category

%

Age

18-25

31

25-35

26

35-45

21

45-55

16

55 or above

6

Gender

Male

50

Female

50

Monthly Income (in Rs.)

Below 25000

36

25000-50000

48

50000-75000

13

75000-100000

2

100000 or above

1

Occupation

Service

50

Business

13

Student

16

Housewife

5

Others

16

Table 2 Independent Samples t-Test between gender and attitude towards green marketing

Levene's Test for Equality of Variances

t-test for Equality of Means

F

Sig.

T

df

Sig. (2-tailed)

1.

Are you willing to spend more on environmentally safe or green products

Equal variances assumed

.012

.913

.146

198

.884

Equal variances not assumed

.146

197.925

.884

2.

Does packaging have an impact on your preference to purchase green products

Equal variances assumed

.001

.973

.167

198

.868

Equal variances not assumed

.167

197.948

.868

3.

You buy green products because you want to save resources for next generation

Equal variances assumed

.002

.962

.113

198

.910

Equal variances not assumed

.113

197.888

.910

4.

You would like to buy more green products if they are more accessible in the market

Equal variances assumed

.013

.908

-.011

198

.991

Equal variances not assumed

-.011

197.820

.991

5.

Do you notice the eco label of the products

Equal variances assumed

.014

.904

.038

198

.970

Equal variances not assumed

.038

197.828

.970

6.

Do you think there is a difference in the quality of green products

Equal variances assumed

.019

.891

.032

198

.974

Equal variances not assumed

.032

197.826

.974

For ascertaining whether significant difference exists between the male and female respondents’ attitude towards green marketing t-test was employed. Levene’s test checks for equality of variance among various groups. Significance value of Levene’s test > 0.05 indicates that equal variance is assumed. In the given table 2, all groups have equal variances. T-test statistics (significance value) less than level of significance (0.05) indicate that the two categories of independent variables (male and female) differ significantly towards their response to the various statements.

In this case no significant difference was observed as all significance value are greater than 0.05. Thus it can be concluded that male and female respondents have no significant difference in their attitude towards green marketing. Hence, null hypothesis H0 is accepted.

Table 3 Percentage Analysis

Question

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

1.Are you motivated to buy products because you want to contribute in saving the environment

Response

68

84

44

2

2

Percentage

34

42

22

1

1

2.Do your friends influence you to purchase environment friendly products

Response

30

104

50

14

2

Percentage

15

52

25

7

1

3.Are you encouraged to purchase products that do not harm the environment because you do not want to disobey the environmental laws and regulations

Response

44

122

16

18

0

Percentage

22

61

8

9

0

4.You are motivated to buy green products because of

Response

98

52

26

12

12

Percentage

49

26

13

6

6

5.You are encouraged to buy environmentally friendly products because of your knowledge about recycling

Response

58

122

18

2

0

Percentage

29

61

9

1

0

6.You feel the desire to continue buying products of company that carries out green marketing

Response

52

128

16

4

0

Percentage

26

64

8

2

0

7.Are you willing to spend more on environmentally safe or green products

Response

78

104

16

0

2

Percentage

39

52

8

0

1

8.Does packaging have an impact on your preference to purchase green products

Response

42

120

28

6

10

Percentage

21

60

14

3

5

9.You buy green products because you want to save resources for next generation

Response

110

58

30

2

0

Percentage

55

29

15

1

0

10.You would like to buy more green products if they are more accessible in the market

Response

64

104

20

6

6

Percentage

32

52

10

3

3

11.Do you notice the eco label of the products

Response

26

118

50

2

4

Percentage

13

59

25

1

2

12.Do you think there is a difference in the quality of green products

Response

40

96

32

8

4

Percentage

20

48

16

4

2

Findings

Majority of the respondents are very often or often motivated to buy products because they want to contribute in saving the environment. ( table 3)

More than half of the respondents agree that they are influenced by their friends to purchase environment friendly products.

Two-third respondents agree that they encouraged purchasing products that do not harm the environment because they do not want to disobey the environmental laws and regulations.

49 per cent of the respondents are motivated to buy green products because of radio and television advertisements, 26 per cent are motivated to buy because of print advertisements and 13 per cent due to online advertisements.

61 per cent of the respondents agree that they are encouraged to buy environmentally friendly products because of their knowledge about recycling and no one strongly disagrees to this fact.

64 per cent of the respondents feel the desire to continue buying products of company that carries out green marketing.

More than half consumers are willing to spend more on environmentally safe or green products.

Two-thirds agree packaging has an impact on their preference to purchase green products

52 per cent of the respondents agree and 32 per cent strongly agree that they would like to buy more green products if they are more accessible in the market.

55 per cent of the respondents strongly agree that they buy green products because they want to save resources for next generation.

59 per cent of the respondents agree that they notice the eco labels of the products.

Nearly half of the respondents agree that there is a difference in the quality of green products.

Latest Green Marketing Strategies

Some examples of the organizations who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs are:

AMUL has been rated as the Top Indian Green Brand by Global Green Brands survey. The International Dairy federation has also awarded AMUL Green movement as the best Environment Initiative in the ―Sustainability Category in 2010.It also has been awarded Srishti’s good green Governance award for four consecutive years since 2011.

McDonald's replaced its clam shell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion.

Since its foundation in 1918, Panasonic as a manufacturing company has upheld its mission to create products and services that will contribute to the sound development of society and contribute to society through its business. In April 2007, Panasonic introduced a new environmental mark, ‘eco ideas,’ as a symbol that represents their commitment to initiatives and attitudes for environmental conservation. They use the mark on a global basis ranging from products’ environmental labels, advertising and public relations to employees’ environmental badges, in an effort to widely publicize our determinations. In February 2012, the "Recycling Resources-oriented Product" series, which utilizes resources recovered from used products, was launched under the concept of "product to product." 

Paper Kraft - the eco-friendly paper by ITC- it is marketed as the first of its kind in India, since it is using the pioneering 'Ozone Treatment & Elemental Chlorine Free technology'. It combines the sustainable forestry initiatives and the use of innovative technology to leverage and market the uniqueness of the product.

 

Consider the new washing machine range by Videocon. They are being promoted as the first washing machine in India to receive a BEE Star rating helping to save 30-33% of electricity. While an average consumer may not be interested in knowing the technicalities of the energy efficient technology used, but the energy saving (and hence cost savings) are sure to be an appealing incentive for the consumer.

Another example is of Amway Corporation which has created detergent which is considered safe for disposal.

Wipro had identified 23 target areas in turning the organisation green, which fell under four broad categories: strategy (four areas ensuring that Green IT did not operate in a vacuum but had a link with the company‘s designated roadmap for growth); people (four areas aimed at reducing the carbon footprint in the personal lives of individuals); facilities and operations (five areas encompassing the physical infrastructure both at company and at client sites); and IT-specific improvements (ten areas focused on the IT environment both of the company and of the customers).

Britain based HSBC became the world's first bank to go carbon neutral late last year and is now turning its 11000 buildings in 76 countries worldwide into models of energy efficiency." our customers have told us that they decide where they shop based on whether the business is a good neighbour ", says David North, Tesco's community director. Organizations like the Body Shop heavily promote the fact that they are environmentally responsible. While this behaviour is a competitive advantage, the firm was established specifically to offer consumers environmentally responsible alternatives to conventional cosmetic products.

An example of a firm that does not promote its environmental initiatives is Coca-Cola. They have invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact. While being concerned about the environment, coke has not used this concern as a marketing tool. Thus many consumers may not realize that Coke is a very environmentally committed organization.

Tata Metaliks has given a green slant to all of its business and plant operations in a bid to reduce its carbon footprint and mitigate its environmental impact. One of these initiatives has to do with increasing the green cover around the plant. The green cover provides several benefits: the plants absorb carbon dioxide, give out oxygen and also helps suppress noise and reduce dust.

Recommendations

After having analysed both primary and secondary data following recommendations are proposed:

As resources are depleting and pollution in increasing day by day more organizations should come forward with new products that are environment friendly.

Better use of internet should be made for spreading awareness regarding green marketing as people are generally familiar with traditional media only.

As packaging has considerable effect on purchasing preferences of customers therefore organizations must focus on making such packaging which provides relevant information.

From this study we found that green marketing strengthens company’s image in the mind of consumers therefore organizations must promote their green marketing activities.

The meaning of eco labels must be made clear to the consumers as sometimes they present confusing image.

Further studies could be conducted on specific eco-brand as choosing a specific eco-brand can provide respondents with the opportunity to compare eco-branded and the non-eco-branded products thus generating a more reliable response.

Promotional campaigns should be conducted to highlight the role of various industries in the application of green marketing in order to serve the surrounding community.

More studies in this field will provide more information about obstacles and limitations faced by companies to increase their level of applying green marketing strategies.

8. Conclusion

From the various findings we can conclude that there is immense opportunity for green marketing in the Indian market as maximum numbers of the people among the population surveyed are aware of green marketing campaigns although some of them have not been part of such campaigns. The consumers think that green marketing will create a healthy environment. Also consumers want a cleaner environment and are willing to pay for it possibly through higher priced products or even through governmental intervention. The attitude of customers towards green products is quite positive they want to buy green products because they want to save the environment for future generations. Also they are willing to buy more green products if they are readily available in the market. Most of the people are motivated to buy green products because of radio and television advertisements and some others are motivated through print advertisements. The companies that use green marketing strategy are able to gain competitive advantage over others. Maximum threat to the environment is posed by improper waste disposal, automobiles and vehicles and manufacturing units. However adoption of green marketing can definitely contribute to the protection of the environment. Proper waste disposal, a check on the carbon emissions, recycling and reuse of waste material and a proper legal framework could be set up by the government authorities for the purpose of environment protection. So, the road ahead for the organizations is that they should adopt more and more green marketing strategies to satisfy their customers and make earth a better planet to live.