Market Research On Consumer Behaviour Towards Green Marketing

INTRODUCTION
Meanings & Concepts 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. Yet 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. Other similar terms used are Environmental Marketing and Ecological Marketing. The term green marketing came into prominence in the late 1980s and early 1990s. The American Marketing Association (AMA) held 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" Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. The definition which encompasses all major components of other definitions is: "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." This definition incorporates much of the traditional components of the marketing definition that is "All activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants". So, in simple terms Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in it or produced and/or packaged in an environmentally friendly way.

The obvious assumption of green marketing is that potential consumers will view a product or service's "greenness" as a benefit and base their buying decision accordingly. The not-so-obvious assumption of green marketing is that consumers will be willing to pay more for green products than they would for a less-green comparable alternative product - an assumption that has not been proven conclusively, specially the mild effect which it had on consumers has washed away by the present recession only. Green marketers though argue that it is a way to use the environmental benefits of a product or service to promote sales. Many consumers will choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. People buy billions of dollars worth of goods and services every yearmany of which harm the environment in the way they are harvested, made, or used. Environmentalists support green marketing to encourage people to use environmentally preferable alternatives, and to offer incentives to manufacturers that develop more environmentally beneficial products.

Importance of green marketing Man has limited resources on the earth, with which she/he must attempt to provide for the worlds' unlimited wants. There is extensive debate as to whether the earth is a resource at man's disposal. In market societies where there is "freedom of choice", it has generally been accepted that individuals and organizations have the right to attempt to have their wants satisfied. As firms face limited natural resources, they must develop new or alternative ways of satisfying these unlimited wants. Ultimately green marketing looks at how marketing activities utilize these limited resources, while satisfying consumers wants, both of individuals and industry, as well as achieving the selling organization's objectives. When looking through the literature there are several suggested reasons for firms increased use of Green Marketing. Five possible reasons cited are: 1. Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. 2. Organizations believe they have a moral obligation to be more socially responsible. 3. Governmental bodies are forcing firms to become more responsible. 4. Competitors' environmental activities pressure firms to change their environmental marketing activities. 5. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior. Goals of Green Marketing 1. Eliminate the concept of waste. 2. Reinvent the concept of product. 3. Make prices reflect actual and 5. Bringing out product modifications. 6. Changing in production processes. 7. Packaging changes. 8. Modifying advertising.

environmental costs. 4. Make environmentalism profitable.

Benefits of Green Marketing Todays consumers are becoming more and more conscious about the environment and are also becoming socially responsible. Therefore, more companies are responsible to consumers aspirations for environmentally less damaging or neutral products. Many companies want to have an early mover advantage as they have to eventually move towards becoming green. Some of the advantages of green marketing are: 1. It ensures sustained long term growth along with profitability. 2. It saves money in the long run, though initially the cost is more. 3. It helps the companies market their products and services keeping the environment aspects in mind. It helps in accessing the new markets and enjoying the competitive advantage. 4. Most of the employees also feel proud and responsible to be working for an environmentally responsible company.

GREEN MARKETING: A CORPORATE INITIATIVE It is important in todays world because mankind has limited resources on the earth and if we want long term sustainability of human life on this earths surface, then companies has to learn to conserve these scarce natural resources and create products that have less environmental damage. Otherwise the very existence of humankind will be under question mark. Corporate are going green from the grassroots level to sustain and win the customers expectations. The environment is becoming increasingly important part of the corporate reputations and they are actively participating in greening the corporate strategy. Companies have converted almost all the products to make them eco-friendly products. Following are the recent environment friendly initiatives taken by the companies. Sony: Green ODO Digital Camera Sony has recently launched developed and launched a range of innovative products named as ODO line products also called as Eco-chic. These products do not require AC adapter as they were powered by kinetic or solar energy. Sony has used simplified packaging and recycled plastic in the manufacturing of ODO products as a Sustainable Product initiative. The ODO line products comprise of five products: 1. Spin N Snap: The spin and snap is a digital camera. It has two holes which are used as view finder and chargers. On spinning the camera on ones fingers generates kinetic energy and charges the device. 2. Push Power Play: Push power play is a display device with a roller on the base. The rollers are used to charge the device by the friction of the device with hard surface. 3. Crank N Capture: Crank and Capture is a digital video camera with a crank used to operate and generate power. 4. Pull and Play: The pull and play is a stereo headphone with a cord to simply pull and use.

5. Juice Box: The juice box is a credit card sized object used to recharge the other ODO products. Sony has also added a new Twirl N Take hand powered digital camera to the ODO line series. Twirl N take digital camera has a sleek stem circle design. It is recharged by rolling the round wheel on the hard surface. Sonys ODO line product series are the most innovative eco -friendly products which are very safe and handy. Even children can also use these products. Cipla: CFC - free Inhaler Cipla-Indias second largest drug company by market share has planned and started replacing all its CFC contained drugs to meet the international standard and Montreal Protocol ban deadline. The CFC depletes the ozone layer and also is a major cause of global warming. Cipla has updated the necessary technology to avoid the CFC and has also done its clinical trial in India and overseas. The Rota haler and the Asthalin inhaler are environment friendly inhalers, used by asthma and bronchitis patients. These inhalers are using HFA (Hydro Fluro Alkaline) technology. The Rotahaler is a powder based inhaler, different from regular inhaler which contains propellants. Bharat Petroleum Bharat Petroleum launched a campaign to position itself as a responsible corporate green entity. Foraying into renewable energy-solar and wind power-it installed solar panels on its service stations. It also ran a program to cut production of greenhouse gases by 10% across its units worldwide and achieved it much ahead of schedule. Cleaner fuels such as Greener Diesel (ultra low sulphur content) and BP Auotgas were developed. Almost all of its plants are ISO 14001 certified. Currently it is running a program to contain its net emissions at current levels for ten years.

Hindustan petroleum Hindustan petroleum owns a massive e-waste recycling plants, where enormous shredders and granulators reduce four million pounds of computer detritus each month to bite-sized chunks-the first step in reclaiming not just steel and plastic but also toxic chemicals like mercury and even some precious metals. HP will take back any brand of equipment; its own machines are 100 percent recyclable. Nokia: The Take-Back Campaign The Take-Back campaign is running successfully in 85 countries. It was recently launched in India, specifically in Bangalore, Delhi, Gurgaon and Ludhiana, with over 1,300 recycling bins distributed just in the first months.

Other companies: LG has insisted mainly on power management, While Nokia has centered its attention on the use of recyclable materials. Samsung has produced marketing-friendly green devices like its Restore and Reclaim and has mainly focused on producing phones with reduced toxins, by removing BFRs (bromide flame retardants) last year. It also plans to remove most other toxins by the end of 2012. Sony Ericsson, with its Green Heart line, concentrates mainly on packaging.

Videocon

The company has changed its logo, appeal and also its corporate strategy in order to adjust to the recent global environment and stay in the race. Videocon changed it logo from the traditional giant solid silver V to a more fluid lava type V.

With this new logo, it is visible that the company is trying to portray itself as an eco friendly company with a fresh outlook and to give a feel that the Videocon always on the move. Using the color of nature, i.e. green, Videocon has give a feel that it product are environmentally aware and with respect to world environmental standards.

IDEA Ad Campaigning- SAVE PAPER. SAVE TREES. SAVE THE WORLD IDEA Cellular, the 3rd largest GSM mobile service operator in India, has its own way to promote the brand. IDEA has launched an ad: Use Mobile, Save Paper. This ad also features IDEAs brand ambassador Abhishek Bachchan, but as a tree! This new ad is sixth in the series. The preceding campaigns were Championing a world without caste, Championing a world in which no one suffers from the disability to communicate; Education for All, Participative Governance, and the last Walk When You Talk.

AIRCEL Ad campaigning - Save our tigers Save our Tigers campaign is collaborative effort from Aircel and WWF India to save the wildlife especially tigers worldwide. Amitabh Bachaan has joined the initiative as the campaign ambassador Dhoni who roars for our Tigers in Aircel Save our Tiger Ad Kiran Bedi, Suresh Raina and Baichung Bhutia follow the same.

ANALYSIS AND INTERPRETATIONS

Graph showing the gender of the respondents

80

70

60

50

40

30

20

10

0 Gender

Male 67

Female 33

INTERPRETATION 67% of the respondents to the questionnaire were males and the rest were females.

Graph showing the age group of the respondents

90 84 80

70

60

50

40

30

20 12 10 1 0 Age Group 15-20 12 20-25 84 Age Group 25-30 1 1 30-35 1 2 35-40 2

INTERPRETATION 84% of the respondents to the questionnaire were of the age group 20-25, 12% belonged to the age group 15-20 and the rest few belonged to the other age groups mentioned in the questionnaire.

Graph showing the educational level of the respondents

60

50

40

30

20

10

0 Educational Level

Secondary Education 5

Graduation Level 42

Post-graduation Level 53

INTERPRETATION 53% of the respondents are educated at a Post-graduation level, 42% at graduation level and the rest has secondary education.

Graph showing the awareness about the term Green Marketing

100 90 80 70 60 50 40 30 20 10 0 Are you aware about the term Green Marketing ?

Yes 91

No 9

INTERPRETATION 91% of the respondents are aware about the term green marketing and the rest are not.

Graph Showing how respondent became aware of green products or ecofriendly products
40

35

30

25

20

15

10

0 Television How you became aware of green products or eco-friendly products ? 38 Magazines 18

Newspaper s 12

Internet 27

Others 6

INTERPRETATION 38% of the respondents became aware about green products through television, 27% through Internet, 18% through magazines, 12% through newspapers and the rest through other sources.

Graph showing whether respondents have heard of any campaign related to green marketing
80

70

60

50

40

30

20

10

0 Have you heard of any campaign related to green marketing ?

Yes 73

No 27

INTERPRETATION 73% of the respondents have heard about green marketing campaigns and the rest have not.

Graph showing whether the respondents have been part of any such campaign
100 90 80 70 60 50 40 30 20 10 0 Have you been part of any such campaign ?

Yes 14

No 86

INTERPRETATION 86% of the respondents have not been part of any green marketing campaigns and the rest have been.

Graph showing whether respondent consider the environmental aspects of the products before buying them
70

60

50

40

30

20

10

0 Do you consider the environmental aspects of the products before buying them ?

Yes 30

No 8

Sometimes 62

INTERPRETATION 62% of the respondents sometimes consider the environmental aspects of the products before buying them, 30% do consider and 8% do not.

Graph showing if the respondents think green marketing activities are good at addressing environmental issues
120

100

80

60

40

20

0 Do you think that green marketing activities are good at addressing environmental issues ?

Yes 96

No 4

INTERPRETATION 96% of the respondents think that green marketing activities are good at addressing environmental issues and the rest do not.

Graph showing if respondents think green marketing activities results in better products
100 90 80 70 60 50 40 30 20 10 0 Do you think that green marketing activities results in better products ?

Yes 88

No 12

INTERPRETATION 88% of the respondents believe that green marketing activities results in better products and the rest do not.

Graph showing if green marketing strengthen a company's image in the mind of consumers
100 90 80 70 60 50 40 30 20 10 0 Do you think that green marketing strengthen a company's image in the mind of consumers ?

Yes 94

No 6

INTERPRETATION 94% of the respondents think that green marketing can strengthen a companys image in the mind of consumers and the rest do not.

Graph showing if respondent think companies that focus on environmental concerns persuade consumers to buy products
80

70

60

50

40

30

20

10

0 Do you think that companies that focus on enviroinmental concerns persuade consumers to buy products ?

Yes 68

No 32

INTERPRETATION 68% of the respondents think that companies that focus on environmental concerns persuade consumers to buy products and the rest do not.

Graph showing if respondent fell by implementing green marketing strategy the companies are able to gain competitive advantage over others
70

60

50

40

30

20

10

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

I think that by implementing green marketing strategy the companies are able to gain competitive advantage over others !

17

59

22

INTERPRETATION 17% of the respondents strongly agree, 59% agree, 22% neither agree nor disagree and 1% each disagree and strongly disagree that by implementing green marketing strategy the companies are able to gain competitive advantage over others.

Graph showing if respondent think at times companies are trying to cheat customers in the name of green products
70

60

50

40

30

20

10

0 Do you think that at times companies are trying to cheat customers in the name of green products ?

Yes 66

No 34

INTERPRETATION 66% of the respondents think that companies are trying to cheat customers in the name of green products and the rest do not.

Graph showing if green features increases the price of the product, are they willing to pay more.
80

70

60

50

40

30

20

10

0 If green features increases the price of the product, are you willing to pay more ?

Yes 9

No 18

To a certain extend 73

INTERPRETATION 9% of the respondents are willing to pay more for increased green features, 18% are not willing and 73% are willing to pay more to a certain extend.

Graph showing the main reason that makes you not willing to pay more for the green products
40 37 35 30 25 20 15 10 5 0 Product cost is Cannot see the Producers only too high, benefit of claim, actually cannot afford those features it is not them What is the main reason that makes you not willing to pay more for the green products ? 14 34 37 14 14 34

Environmental issues are gimmick for commercial only 14

INTERPRETATION 14% of the respondents consider environmental issues are gimmick for commercial, 37% consider producers only claim of providing green products, 34% consider that green product cost is too high and 14% cannot see the benefit of those features and so they are unwilling to pay more for green products.

Graph showing whether there is enough information about green features when you buy the product?
70

60

50

40

30

20

10

0 Do you think whether there is enough information about green features when you buy the product?

Yes 40

No 60

INTERPRETATION 40% of the respondents think that there is enough information about green features when they buy the product and the rest 60% do not think so.

Graph showing the main reason that make the respondents to pay more for the green products
80 73 70

60

50

40

30

20 13 10 9 5

0 Enhance the quality of life What is the main reason that makes you willing to pay more for the green products ? 13

Enviromental protection responsibility 73

Potential increase of product value 5

Getting high level of satisfaction 9

INTERPRETATION 9% of the respondents are of the opinion that they get high level of satisfaction when they buy green products and so they are willing to pay more. 5% believe that green products have potential increase of product value, 73% are concerned about environmental protection responsibility and 13% want to enhance their quality of life and hence they are willing to pay more for the green products.

Graph showing which marketing element strongly influences their buying behaviour of green products
60

50

40

30

20

10

0 Product Which marketing element strongly influences your buying behaviour of green products ? 29 Package 11 Place 0 Promotion 12

All of the above 48

INTERPRETATION 29% of the respondents are influenced by product characteristics, 11% are influenced by package, 12% by promotion and 48% are influenced by all the factors mentioned in the questionnaire in buying green products.

Graph showing according to respondent which company in India concentrates the highest in green marketing
40

35

30

25

20

15

10

0 According to you which company in India concentrates the highest in green marketing ?

WIPRO 21

ITC 35

Videocon 15

TATA 16

Others 13

INTERPRETATION 21% of the respondents consider WIPRO, 35% considers ITC, 15% considers Videocon, 16% considers TATA and 13% considers other companies like Nokia, HCL, Reliance etcas a company which concentrates in green marketing.

FINDINGS, SUGGESTIONS AND CONCLUSIONS

Important Drawings And Findings

Most of the respondents belong to the age group 20-25, which shows that the survey is mostly responded by youth and so the needs are demanded by the future icons of the country. Most people are aware about the term Green Marketing. Many have heard about green marketing related campaigns but a very few have actually participated in such campaigns. More than half of the respondents consider environmental aspects of the products before buying them. Almost all the respondents think that Green marketing activities are good at addressing environmental issues, which means they are effective and they are getting an identity. A good part of respondents think that green marketing activities results in better products. This shows that the market is actually waiting for many more new green products. Almost all the respondents think that green marketing strengthens a companys image in the mind of consumers which shows that the companies can have a better brand image through green marketing. More than half of the respondents think that by implementing green marketing strategy the companies are able to gain competitive advantage over others. Many people think that at times companies are trying to cheat them in the name of green products. People to a certain extend are willing to pay more for green featured products, but some of them are unwilling to pay since they doubt the green quality of the customer products and the since the cost cannot be afforded by them. About half of the respondents say that product, package, place and promotion influence their buying behavior of green products. ITC is considered to be the company in India which concentrates the highest in green marketing, followed by WIPRO.

Suggestions
The first factor what companies which are going green has to take care about is to give themselves an assurance to the customers and be a trustworthy brand More information about green marketing and green products has to spread among the market; this can help in improving the demand for green products. Companies should start make strategies to produce and provide green products at lower prices which can help in the improved consumption of them. Spread green awareness through campaigns at national as well as state levels and also by conducting seminars in educational institutions.

Conclusion
The survey conducted reveals that the public is actually aware about the term green marketing. It also makes clear that the consumers are willing to consume green products, but due to certain factors like product cost and trustworthiness they are hesitating to go for them. If the companies give much more emphasis on spreading awareness and gaining the minds of people with regard to brand image, then they can bring a new revolution of green products which will be welcomed by the market. Researches can help the companies to develop green products can enable them to provide them at lower price. This will lead to more and more consumption of green products and thus the companies and its consumers together can make out a new India, a Green India.

APPENDIX

Questionnaire
I am a student of Amity Business School, Noida currently pursuing MBA in Marketing and Sales. As a part of curriculum, I am doing a survey on Green Marketing. Kindly co-operate and respond sincerely to each question. All the information will be kept confidential and will be used only for academic purpose. 1) Name of the Respondent: 2) Gender Male Female ___________________________________

3) Age Group 15-20 20-25 35-40 25-30 30-35

4) Educational Level Secondary Education Graduation Level Post-graduation Level

5) Are you aware about the term Green Marketing? Yes No 6) How you became aware of green products or Eco-friendly products? Television Magazines Newspapers Internet Others:______________

7) Have you heard of any campaign related to Green Marketing? Yes No

8) Have you been part of any such campaign? Yes No

9) Do you consider the environmental aspects of the products before buying them? Yes No Sometimes

10) Do you think that Green Marketing activities are good at addressing environmental issues? Yes No

11) Do you think Green Marketing activities results in better products? Yes No 12) Do you think that Green Marketing strengthen companys image in the mind of consumers? Yes No

13) Do you think that companies that focus on environmental concerns persuade consumers to buy products? Yes No

14) I think that by implementing green marketing strategy the companies are able to gain competitive advantage over others! Strongly Agree Agree Neutral Disagree Strongly Disagree

15) Do you think that at times companies are trying to cheat customers in the name of green products? Yes No

16) If green features increase the price of the product, are you willing to pay more? Yes No To a certain extend

17) What is the main reason that makes you not willing to pay more for the green products? Cannot see the benefit of those features Product cost is too high, cannot afford them Producers only claim, actually it is not Environmental issues are gimmick for commercial only

18) Do you think there is enough information about green features when you buy the product? Yes No

19) What is the main reason that makes you willing to pay more for the green products? Enhance the quality of life Environmental protection responsibility Potential increase of product value Getting high level of satisfaction

20) Which marketing element strongly influences your buying behavior of green products? Product Package Place Promotion All of the above

21) According to you, which company in India concentrates the highest in Green Marketing? WIPRO ITC NOKIA TATA HCL Other:_______________

BIBLIOGRAPHY

WEBSITES

http://en.wikipedia.org/wiki/Green_marketing dated February 2013. http://www.inc.com/encyclopedia/green-marketing.html dated January 2013. http://www.scribd.com/doc/6988139/Green-Marketing dated September 2011. http://www.google.com/greenmarketing