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MASTER OF PHILOSOPHY in
BUSINESS MANAGEMENT
Research Guide
Dr. R. GOPAL
DIRECTOR, DEAN AND HEAD OF THE DEPARTMENT
Place:
Date:
Business Management and that the dissertation has not formed the basis for
the award previously of any degree, diploma, associate ship, fellowship or
any other similar title of any University or Institution.
Also certified that the thesis represents an independent work on the part of
the candidate.
Place:
Date:
Signature of the
Head of the department Signature of the Guide
IV
ACKNOWLEDGEMENT
In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University
The research work embodied in this dissertation has been carried out under
the expert guidance and supervision of Dr. R. Gopal, Dean and Director,
University. It was only due to his valuable guidance and cheerful enthusiasm
that I was able to complete my research work in a respectable manner. My
profound gratitude and most sincere acknowledgement are extended to him
for his constant encouragement and intellectual insights and also the
constructive criticism that was of immense help from the outset to the finale.
Last but not the least I want to acknowledge the contribution of all those
people who helped me in the one way or the other in compilation of my
dissertation work especially the administrative staff and the library staff at
Department of Business Management, Padamshree Dr. D. Y. Patil University.
Place:
V
CONTENTS
CHAPTER NO.
TITLE
PAGE NO.
List of Tables
VIII
List of Figures
IX
EXECUTIVE SUMMARY
X
1
Introduction to Green
1
Marketing
2
Kyoto-protocol and Clean
17
Development Mechanism
3
Green Marketing: Literature
56
Review
4
Green Marketing: Case
78
Studies
5
Objective of the Study and
105
Research Methodology
6
Profile of the Respondents
114
7
Factors Affecting Green
122
Marketing
8
Summary and Conclusion
146
Bibliography
156
Annexure
164
Questionnaire
168
VI
LIST OF TABLES
Table No.
Title
Page No.
6.1
Age of the Respondents
116
6.2
Qualification of the Respondents
118
6.3
Working Status of the Respondents
119
6.4
Gender of the Respondents
121
7.1
Factor Affecting Green Marketing
125
7.2
Importance of Factors affecting Green
129
Marketing
7.3
Factor Affecting Green Marketing by
132
Age
7.4
Factor Affecting Green Marketing by
135
Qualification
7.5
Factor Affecting Green Marketing by
137
Gender
7.6
Understanding of Consumer for
142
Green product
7.7
Understanding of customers for
144
green symbol
7.8
Awareness of Green products present
145
in the market
VII
LIST OF FIGURES
Figure No.
Title
Page No.
2.1
CDM Project cycle
51
3.1
Awareness Stages in Economic
73
Development of Industries
3.2
Stake holders for Go-Green Strategy
74
5.1
Framework for Factors affecting Green
112
Purchasing Behaviour
6.1
Age of the Respondents
117
6.2
Qualification of the Respondents
118
6.3
Working Status of the
120
Respondents
6.4
Gender of the Respondents
121
7.1
Factor Affecting Green Marketing
133
by Age
7.2
Factor Affecting Green Marketing
136
by Qualification
7.3
Factor Affecting Green Marketing
137
by Gender
7.4
Awareness about Eco-certification
139
among consumers
VIII
EXECUTIVE SUMMARY
In order to position green product offerings, companies must first segment the
market according to levels of pro-environmental purchase behaviour and then
target the greener consumer segments. However, a review of the literature
IX
indicates that socio-demographic and personality indicators have had only
limited success in profiling consumers according to their proenvironmental
purchasing behaviour. The demand for green products has been shown to be
uneven across different market segments. Thus, for organizations to position
green products, or communicate their environmental efforts, to members of
the population who are likely to be concerned about environmental issues,
green consumer segments need to be identified.
This research work aims to illustrate how the green challenge is exerting an
influence on current marketing practice and how its implications will require a
more profound shift in the marketing paradigm, if marketers are to continue
delivering customer satisfaction at a profit throughout this new millennium.
The study is empirical in nature and has been designed to find out the
consumer perception of the green products and the factors that affect their
purchasing behaviour for the green products.
X
To give recommendations and suggestions to increase the uptake of green
products in India.
PROPOSED HYPOTHESIS
behaviour.
RESEARCH METHODOLOGY
Development of Questionnaire
XI
stressful life, promotion of green products, presence, packaging, eco-
certification etc. Based upon these various factors a framework has been
developed.
Environmental awareness
Demographic profile
A pilot testing was done with these 150 questions and finally an instrument of
43 questions was developed. A five point likart scale was used to collect the
responses. Data has been collected from 695 respondents from various parts
of Mumbai and Navi Mumbai.
DATA ANALYSIS
Data analysis of the filled questionnaire has been done using SPSS. Primarily
a factor analysis was done on the questionnaire to identify the important
factors affecting Green Marketing among Indian Consumers.
Total 11 factors have been identified in the studies that have the egenvalue of
more then 1.
XII
S.No
Factors
1
Concern for health and environment
2
Eco buying attitude
3
Social Responsibility
4
Eco certification
5
Social awareness and value
6
Lifestyle
7
Absence of marketing
8
Promotion
9
Brand consciousness
10
Indifferent attitude
11
Packaging
An analysis of mean and standard deviation of these factors showed that
Concern for health and environment was considered as most important factor
by the Indian consumers in green purchasing behaviour, followed by
packaging as the second, Eco-certification as the third, and Lifestyle as the
fourth most important factor while Indifferent attitude is considered as least
important factor, followed by brand consciousness and eco-buying attitude.
XIII
CONCLUSIONS
Green marketing is still in its infancy in India still this study shows that it is
Marketers can charge a premium on products that are seen as more eco-
responsible.
Green marketing builds brand equity and wins brand loyalty among
customers.
Most customers choose to satisfy their personal needs before caring for the
environment.
Many customers keep away from products labeled green because they see
such labeling as a marketing gimmick, and they may lose trust in an
organization that suddenly claims to be green.
Green marketers need to find out the value their customers place on green
benefits. It is important that they position the product on the
XIV
basis of the functional need it caters to and then talk about the
XV
CHAPTER-1
INTRODUCTION TO
GREEN MARKETING
XVI
CHAPTER-1
For the new century, the key challenge for mankind is to find more
sustainable and equitable ways to produce consume and live.
Sustainability was once a vision of the future shared by an
environmentally-orientated few. The publication of the Brundtland
Report Our Common Future in 1987 brought the issue into the
mainstream. In the wake of the 1992 Rio Earth Summit, the worlds
governments and major corporations have increasingly adopted the
XVII
pursuit of sustainability as a goal. The real challenge lies in turning
these good intentions into meaningful progress in the face of powerful
vested interests, a deeply entrenched and environmentally-hostile
management paradigm, and a global economy with tremendous
momentum on a trajectory which aims towards conventional economic
growth.
XVIII
zeitgeist which reflects increasing concern about the socio-
environmental impacts of business. In the longer term, the pursuit of
sustainability will demand fundamental changes to the management
paradigm which underpins marketing and the other business functions
(Shrivastava, 1994).
Consumer is ruling the market today and they are exercising their
XIX
say, avoiding clothing stitched by child laborers. For another consumer,
the tipping point might be the way the company treats the environment
in their design, testing, and production processes.
More than 12 other studies in the US, Brazil, Europe, Mexico, South
Korea and Taiwan have established links between air pollutants and low
birth weight premature birth still birth and infant death. Thus the
growing awareness among the consumers all over the world regarding
protection of the environment in which they live, People do want to
bequeath a clean earth to their offspring. Various studies by
environmentalists indicate that people are concerned about the
environment and are changing their behavior pattern so as to be less
XX
hostile towards it. Now we see that most of the consumers, both
individual and industrial, are becoming more concerned about
environment-friendly products. Most of them feel that environment-
friendly products are safe to use. Worldwide evidence indicates people
are concerned about the environment and are changing their behavior.
As a result of this, green marketing has emerged which speaks for
growing market for sustainable and socially responsible products and
services. As resources are limited and human wants are unlimited, it is
important for the marketers to utilize the resources efficiently without
waste as well as to achieve the organization's objective.
GREEN MARKETING
XXI
of green marketing is that potential consumers will view a product or
service's "greenness" as a benefit and base their buying decision
accordingly. Companies all over the world are striving to reduce the
impact of products and services on the climate and other environmental
parameters. Marketers are taking the cue and are going green.
Green marketing offers business bottom line incentives and top line
growth possibilities. While modification of business or production
processes may involve start-up costs, it will save money in the long
term. For example the cost of installing solar energy is an investment in
future energy cost savings. Companies that develop new and improved
products and services with environmental impacts in mind give
themselves access to new markets, substantially increase profits and
enjoy competitive advantages over those marketing non-
environmentally responsible alternatives.
According to a recent study for North America, Eco Markets 2009 (Kate
Rusnak, 2009), respondents attributed some importance to all of the
purchasing factors indicated in the survey, price and performance were
ranked as most important in a list chat also included environmental and
social considerations. Comparing "green" packaging products against
traditionally used containers, bags and sacks revealed that slightly
more purchasers believe that green packaging costs more while 30%
see it as costing the same. Throughout the Eco Markets study, findings
suggest there is plenty of room for green product growth in the
XXII
marketplace. When it comes to selecting green products, eco-labels can
increase trust and confidence in green products.
XXIII
From developing countries perspective the most important aspect to be
considered primarily is creation of awareness among consumers and
creating cost effective technologies which involves not only a stake
from producers and consumers but also the role of state is very crucial.
While more and more companies are focusing on Being Green less
attention has been paid on spreading green and since attitude and
perceptions are socially constructed it cannot develop without focusing
efforts on creating awareness for eco-friendly technology.
XXIV
other than Singapore, indicated they were concerned about the
environment. A 1994 study in Australia found that 84.6% of the sample
believed all individuals had a responsibility to care for the environment.
A further 80% of this sample indicated that they had modified their
behavior, including their purchasing behavior, due to environmental
reasons. As demands change, many firms see these changes as an
opportunity to be exploited. It can be assumed that firms marketing
goods with environmental characteristics will have a competitive
advantage over firms marketing non-environmentally responsible
alternatives.
XXV
products. This lack of consideration of the true "greenness" of activities
may result in firms making false or misleading green marketing claims.
India is worlds 2nd largest populated country and the natural resources
are under tremendous pressure and therefore there is an urgent need to
pay attention for a right balance between consumption with
conservation of natural resources. This paper reviews the existing
literature on Green Marketing and proposes the role of different
stakeholders in Green marketing strategy. Further it examine the
various factors hampering the uptake of Green products in India and
highlight the need of creating consumer awareness and extensive use
of cleantech (environmental friendly technology) to address green
myopia in India.
Market is trying to pull the consumers who are exercising their vote
with everything they purchase (Ottman et all, 2006; Polonsky,1994;
Prakash, 2002) by putting a lot of emphasis on choosing products that
XXVI
they believe in on an ethical level. Despite all efforts put forth by
companies to sell the products with green labels, the uptake of the
green products in Indian market is still near to the ground (Aggrawal et
all, 2010). Consumer perception for GREEN is still unclear (Chris Ely,
2010). Studies from the developed countries reported 90 percent of
consumers familiarity with terms like recycling, energy efficiency,
organic and global warming and consumers purchase
environmentally friendly products, even if that means paying a higher
price (Hume 1997; Miller 1993). Having addressed consumer behaviour
and behaviour related to green concepts and activities, one of the
biggest questions facing the industry is how environmental awareness
and concerns translate when it comes time to buy. The demand for
green products has been shown to be uneven across different market
segments (Ottman, 1992; Peattie, 1992). Thus, For organizations to
position green products, or communicate their environmental efforts, to
members of the population who are likely to be concerned about
environmental issues, green consumer segments need to be identified
(Bohlen et al., 1993, p. 415). There is an attitude-behaviour gap' where
30% of consumers report that they are very concerned about
environmental issues but they are struggling to translate this into
purchases (Young, Hwang & Caroline J Oates, 2010). This gap is even
larger in emerging economies like India. Realizing this gap the present
XXVII
study has been designed to understand the factors affecting the green
purchasing behaviour in India.
XXVIII
ways: (i) repair (ii) recondition iii) remanufacture (iv) reuse (v) recycle
and (vi) reduce.
The work would focus primarily on the above issues and strategies for
promoting products by employing claims about their environmental
attributes or about firms that manufacture and/or sell them. Secondarily,
it would focus on studying product and pricing issues.
XXIX
CHAPTER-2
KYOTO PROTOCAL
AND CLEAN
DEVELOPMENT
MECHANISM
XXX
CHAPTER-2
The technologies include, but are not limited to, the following areas:
Recycling
Water Purification
Sewage Treatment
Environmental remediation
Renewable Energy
XXXI
products, production and profits. Over time it has evolved to become
more human, with the emergence of disciplines like organizational
behaviour, human resource management, business ethics and societal
marketing. The fact that businesses are physical systems which exist
within a finite and vulnerable physical environment has, until recently,
largely been ignored as a management and marketing issue. During the
1990s, the marketing discipline began to seriously discuss the physical
implications and sustainability of marketing (e.g. OHara, 1995; van Dam
and Apeldoorn, 1996).
XXXII
Programme (UNEP) was launched in order to encourage United Nations
agencies to integrate environmental measures into their programs.
XXXIII
it was the pending environmental problems that dominated the meeting
and led to wider public environmental awareness.
XXXIV
Carbon Footprint
Climate Change
XXXV
produced at the United Nations Conference on Environment and
Development (UNCED), informally known as the Earth Summit, held in
Rio de Janeiro from 3 to 14 June 1992. The objective of the treaty is to
stabilize greenhouse gas concentrations in the atmosphere at a level
that would prevent dangerous anthropogenic interference with the
climate system.
Protocol, which has become much better known than the UNFCCC
itself.
XXXVI
countries to GHG reductions. Updated inventories must be regularly
submitted by Annex I countries.
countries
Developing countries.
XXXVII
Annex I countries which have ratified the Protocol have committed to
reduce their emission levels of greenhouse gasses to targets that are
mainly set below their 1990 levels. They may do this by allocating
reduced annual allowances to the major operators within their borders.
These operators can only exceed their allocations if they buy emission
allowances, or offset their excesses through a mechanism that is
agreed by all the parties to UNFCCC.
XXXVIII
Some opponents of the Convention argue that the split between Annex I
and developing countries is unfair, and that both developing countries
and developed countries need to reduce their emissions unilaterally.
Some countries claim that their costs of following the Convention
requirements will stress their economy. This was one reason given by
George W. Bush, then President of the United States, for not forwarding
the Kyoto Protocol to the United States Senate for ratification. Other
countries point to research, such as the Stern Report, that calculates
the cost of compliance to be less than the cost of the consequences of
doing nothing.
Annex I countries
Annex II countries
XXXIX
There are 23 Annex II countries and the European Union. Turkey was
removed from the Annex II list in 2001 at its request to recognize its
economy as a transition economy. These countries are classified as
developed countries which pay for costs of developing countries:
(UNFCCC)
XL
they would recognize "common but differentiated responsibilities," with
greater responsibility for reducing greenhouse gas emissions in the
near term on the part of developed/industrialized countries, which were
listed and identified in Annex I of the UNFCCC and thereafter referred to
as "Annex I" countries.
Benchmarking
XLI
emission reduction commitments as measured against the 1990 base
year. This might be interpreted as being equitable, but this is not
necessarily the case. One country might have previously made efforts
to improve energy efficiency in the years preceding the benchmark year,
while the other country had not. In economic terms, the marginal cost
curve for emissions reductions rises steeply beyond a certain point.
Thus, to meet its emission reduction commitment, the country with
initially high energy efficiency might face high costs. But for the country
that had previously encouraged overconsumption of energy, e.g.,
through subsidies, the costs of meeting its commitment would
potentially be lower.
Precautionary principle
XLII
Conferences of the Parties
Since the UNFCCC entered into force, the parties have been meeting
annually in Conferences of the Parties (COP) to assess progress in
dealing with climate change, and beginning in the mid-1990s, to
negotiate the Kyoto Protocol to establish legally binding obligations for
developed countries to reduce their greenhouse gas emissions. From
2005 the Conferences have met in conjunction with Meetings of Parties
of the Kyoto Protocol (MOP), and parties to the Convention that are not
parties to the Protocol can participate in Protocol-related meetings as
observers.
XLIII
but differentiated responsibilities" established in the UNFCCC even
though, collectively, the larger, newly industrializing countries were
expected to be the world's largest emitters of greenhouse gas
emissions 15 years hence. In order to monitor the implementation of the
Convention, COP1 also established two permanent subsidiary bodies:
the Subsidiary Body for Scientific and Technological Advice (SBSTA)
and the Subsidiary Body for Implementation (SBI).
Change
XLIV
emissions trading, clean development mechanism and joint
implementation. Most industrialized countries and some central
European economies in transition (all defined as Annex B countries)
agreed to legally binding reductions in greenhouse gas emissions of an
average of 6 to 8% below 1990 levels between the years 2008-2012,
defined as the first emissions budget period. The United States would
be required to reduce its total emissions an average of 7% below 1990
levels; however neither the Clinton administration nor the Bush
administration sent the protocol to Congress for ratification. The Bush
administration explicitly rejected the protocol in 2001.
XLV
COP 5 took place between October 25 and November 5, 1999, in Bonn,
Germany. It was primarily a technical meeting, and did not reach major
conclusions.
XLVI
regularly scheduled meeting of the parties to the UNFCCC - COP 7 - had
been set for Marrakech, Morocco, in October-November 2001.
XLVII
domestic action constituted a significant element of the efforts of each
Annex B country to meet their targets.
Carbon sinks: It was agreed that credit would be granted for broad
activities that absorb carbon from the atmosphere or store it, including
forest and cropland management, and re-vegetation, with no over-all
cap on the amount of credit that a country could claim for sinks
activities. In the case of forest management, an Appendix Z establishes
country-specific caps for each Annex I country. Thus, a cap of 13 million
tons could be credited to Japan (which represents about 4% of its base-
year emissions). For cropland management, countries could receive
credit only for carbon sequestration increases above 1990 levels.
XLVIII
Adaptation Programs of Action; and (3) a Kyoto Protocol adaptation
fund supported by a CDM levy and voluntary contributions.
setting
the
stage
for
nations
to
ratify
the
Kyoto
Protocol.deadlink deadlink The
completed
package of
decisions is
XLIX
Operational rules for international emissions trading among parties to
the Protocol and for the CDM and joint implementation;
L
2004 - COP 10, Buenos Aires, Argentina
LI
link Canada's environment minister, at the time,Stphane Dion, said
the agreement provides a "map for the future."[5]
Africa, take snaps of the wildlife, the poor, dying African children and
women. Black also noted that due to delegates concerns over
economic costs and possible losses of competitiveness, the majority of
the discussions avoided any mention of reducing emissions. Black
concluded that was a disconnect between the political process and the
scientific imperative. Despite such criticism, certain strides were made
at COP12, including in the areas of support for developing countries
and clean development mechanism. The parties adopted a five-year plan
of work to support climate change adaptation by developing countries,
and agreed on the procedures and modalities for the Adaptation Fund.
They also agreed to improve the projects for clean development
mechanism.
COP 13/MOP 3 took place between December 3 and December 15, 2007,
at Nusa Dua, in Bali, Indonesia. Agreement on a timeline and
structured negotiation on the post-2012 framework (the end of the first
LII
commitment period of the Kyoto Protocol) was achieved with the
adoption of the Bali Action Plan (Decision 1/CP.13). The Ad Hoc Working
Group on Long-term Cooperative Action under the Convention (AWG-
LCA) was established as a new subsidiary body to conduct the
negotiations aimed at urgently enhancing the implementation of the
Convention up to and beyond 2012. These negotiations took place
during 2008 (leading to COP 14/MOP 4 in Poznan, Poland) and 2009
(leading to COP 15/MOP 5 in Copenhagen).
Conference
LIII
The overall goal for the COP 15/MOP 5 United Nations Climate Change
Conference in Denmark was to establish an ambitious global climate
agreement for the period from 2012 when the first commitment period
the New York Times announced that "President Obama and other world
leaders have decided to put off the difficult task of reaching a climate
change agreement... agreeing instead to make it the mission of the
Copenhagen conference to reach a less specific politically binding
agreement that would punt the most difficult issues into the
future." Ministers and officials from 192 countries took part in the
Copenhagen meeting and in addition there were participants from a
large number of civil society organizations. As many Annex 1
industrialized countries are now reluctant to fulfill commitments under
the Kyoto Protocol, a large part of the diplomatic work that lays the
foundation for a post-Kyoto agreement was undertaken up to the
COP15.
LIV
international institutions that will approach USD 30 billion for the period
2010 - 2012. Longer-term options on climate financing mentioned in the
accord are being discussed within the UN Secretary General's High
Level Advisory Group on Climate Financing, which is due to report in
November 2010. The negotiations on extending the Kyoto Protocol had
unresolved issues as did the negotiations on a framework for long-term
cooperative action. The working groups on these tracks to the
negotiations are now due to report to COP 16 and MOP 6 in Mexico.
Two countries, Qatar and South Korea, are currently bidding to host
the 2012 COP 18.
LV
treaty with the goal
of achieving "stabilization
of greenhouse
gas concentrations in
the atmosphere at a level
that would
LVII
sector and developing countries to contribute to emission reduction
efforts, negotiators of the Protocol included three market-based
mechanisms Emissions Trading, the Clean Development Mechanism
and Joint Implementation.
The projects must qualify through a rigorous and public registration and
issuance process designed to ensure real, measurable and verifiable
emission reductions that are additional to what would have occurred
without the project. The mechanism is overseen by the CDM Executive
Board, answerable ultimately to the countries that have ratified the
Protocol.
LVIII
Operational since the beginning of 2006, the mechanism has already
registered more than 1,000 projects and is anticipated to produce CERs
amounting to more than 2.7 billion tonnes of CO2 equivalent in the first
commitment period of the Kyoto Protocol. The mechanism is seen by
many as a trailblazer. It is the first global, environmental investment and
credit scheme of its kind, providing a standardized emission offset
instrument, CERs.
CDM INDIA
climate system.
LIX
L
X
Legend
PP
-
Project Proponent
DOE
-
Designated Operational Entities
AE
-
Applicant Entity
EB
-
Executive Board
COP/MOP
-
Conference of the Parties and Meetings serving as
CER
-
Certified Emission Reductions
DNA
-
Designated National Authority
Green Trade & Development
Used for years in local and regional pollution control programs in the
United States, market approaches are now recognized for their ability to
provide cost savings and flexibility to companies and countries
committed to greenhouse gas control. Green Markets believes that well-
crafted rules and oversight are needed to assure that pollution trading
does not compromise environmental objectives. With greenhouse gas
trading, though, the benefits can go well beyond compliance flexibility
and economic efficiency.
LXI
for example, enables trading between industrial and developing nations,
providing a framework that can result in capital flows to environmentally
beneficial development activities. Although the United States is not
participating in the Kyoto Protocol, several US programs enable similar
transactions on a voluntary and regulatory basis.
LXII
have helped to enhance the capacity of sustainable energy stakeholders
to participate in the international carbon market, and included direct
technical support for carbon market participation. Currently Green
Markets provides resources through its website to help build knowledge
about carbon market logistics and opportunities, and about other
mechanisms to support the expanded use of renewable energy, energy
efficiency, and other climate protection options.
LXIII
CHAPTER-3
GREEN MARKETING
LITERATURE REVIEW
LXIV
CHAPTER-3
Over the last 50 years, since evolution, Green Marketing has witnessed
many success and pitfalls in both academics and markets. It has
evolved from the term marketing of environmental friendly products to
marketing of green products to green marketing.
Literature Review
LXV
EVOLUTION OF GREEN MARKETING
The concept of green marketing seems to take its foundations into the
concept of traditional marketing itself (Polonsky, 1994; Charter et al,
1999). According to Prakash (2002), the relationship between the
marketing discipline, the public policy process and the natural
environment is important. This relationship is described by many terms:
environmental marketing (Coddington, 1993), ecological marketing
(Fisk, 1974; Henion and Kinnear, 1976), green marketing (Peattie, 1995;
LXVI
Ottman, 1992), sustainable marketing (Fuler, 1999) and greener
marketing (Charter and Polonsky, 1999). Task of marketing now is to
walk on a tight rope to achieve the triple bottom line of PPP.
1999).
LXVII
To project an image of high quality, including environmental aspects,
both in regards to product attributes and the manufacturer's track
record for environmental compliance.
The setback came because many industries made false claims about
their products and services. For instance, the environmental
organization CorpWatch, which issues annually a list of the top ten
"greenwashing" companies, included BP Amoco for advertising its
"Plug in the Sun" program, in which the company installed solar panels
in two hundred gas stations, while continuing to aggressively lobby to
LXVIII
drill for oil in the Arctic National Wildlife Refuge. The media came up
with the term "Greenwashing" to describe cases where organizations
misrepresented themselves as environmentally responsible. To put it
this way-
"I'm skeptical sometimes because [a product] will have a green logo but
no explanation as to how it is green. This leads me to think they just
slapped a sucker on... as a consumer, you can't always believe what
you are told." (Audray Gray, 2009).
LXIX
uptake of Green Products is very less throughout leading us to Green
Myopia.
Customer satisfaction.
LXX
incorporates a broad range of activities, including product modification,
changes to the production, packaging changes, as well as advertising. A
study by Nancy E. Furlow (2010) described the phenomena of Green
washing in an elaborated way and also gave the managerial
implications. According to that article early 1990s saw a rapid rise in
products touting environmental claims. The "green" phenomenon of the
'90s disappeared as rapidly as it appeared, but today many
manufacturers are again revisiting the value of promoting their
products, or even themselves, as being green to attract a growing
environmentally aware segment. In attracting a green audience,
companies often use claims that sound environmentally friendly, but are
actually vague, and at times may be false. As a result, "Greenwashing"
has become commonplace in market. Green washing is the
dissemination of false or incomplete information by an organization to
present an environmentally responsible public image.
LXXI
these environmental claims. By giving the public a channel to judge
these messages, consumers have put marketers on guard that
environmental claims will not go unchecked.
LXXII
criticized. Since 2000, BP has used the tag line "Beyond Petroleum" as
part of its green campaign. The overhaul of BP's image has been
celebrated by some as a rebranding success and decried by others as a
perfect example of greenwashing (Solman, 2008). BP's less than green
activities include lobbying efforts to open restricted spaces such as the
Arctic National Wildlife Refuge to drilling and illegally dumping
hazardous waste from the Endicott Island oil field between 1993 and
1995. The company was even named as one of the 10 worst companies
in 2005 by Multinational Monitor. Most recently, BP was forced to shut
down operations in 2006 in Prudhoe Bay as the result of a ruptured
decayed pipeline. Even with its questionable environmental track
record, BP has undoubtedly been successful in painting itself green. BP
ranked highest among energy companies for being green in the
"ImagePower Green Brands Survey" conducted last year and 49 percent
of respondents felt that BP had become greener in the past five years
(Solman, 2008).
LXXIII
point that the greenness of the product may become meaningless to the
consumer (Zimmer et. al, 1994).
LXXIV
environmental claims, thereby avoiding any product that may in fact be
better for the environment (Mayer, et. al, 1993).
VARIOUS STUDIES
LXXV
Socio-demographics, such as sex, age, education and social class (see
Schlegelmilch et al., 1994),
LXXVI
Personality variables have been found to have somewhat higher
linkages to individuals environmental consciousness (Kinnear et al.,
1974; Schwepker and Cornwell, 1991). However, while this is true for
general environmental measures, the results are somewhat inconsistent
for specific pro-environmental behaviours, such as green purchasing
decisions (see Balderjahn, 1988). Furthermore, personality variables
have been shown to explain only a small part of the total variability of
the behavioural measures used (Webster, 1975, p. 196). Indeed, Hooley
and Saunders (1993; p. 145) suggest that caution should be taken in
using personality variables for market segmentation according to
behavioural criteria: In most instances, personality measures are most
likely to be of use for describing segments once they have been defined
on some other basis. It is quite possible, indeed probable, that
behaviour and reasons behind it will vary within segments defined on
the basis of personality characteristics alone. Moreover, personality
variables do not easily lead to segmentation strategy (Webster, 1975,
p. 196) due to the inherently complex processes involved in their
measurement and interpretation.
LXXVII
been shown to express their environmental consciousness through the
products they purchase.
LXXVIII
demand of a sustainable economy is calling a balanced integration of all
three factors profit, people and planet.
Twentieth Century
PLANET
Late Nineties
PEOPLE
Eighteenth
PROFIT
LXXIX
Besides state and industry it is consumer who is an integral part of the
value chain of go green. Arnulf Grubler (A. Grubler, 2006) wrote in
INDUSTRY STATE
CONSUMER
LXXX
also finding it as a lucrative strategy to tap the consumer market.
According to Ottman (2006) a strong commitment to environmental
sustainability in product design and manufacturing can offer to
companies opportunities to grow their businesses, to innovate or to
build brand equity. However to exploit these economic opportunities to
steer global commerce onto a more sustainable path, green products
must appeal to consumers outside the traditional green niche. The
marketing discipline has long argued that innovation must consider an
intimate understanding of the customer and a close look at green
marketing practices over time reveals that green products must be
positioned on a consumer value sought by targeted consumers.
LXXXI
Specifically, it is predicted that many international companies will
aggressively initiate green marketing strategies in the Asian markets for
the following reasons:
LXXXII
emerging in many Asian countries. However, because little research has
been conducted in an Asian culture, international green marketers have
expressed that the unavailability of market information in foreign
countries often becomes a major hindrance to the success of
international expansion of their green products (Gurau and Ranchhod,
2005).
LXXXIII
CHAPTER-4
GREEN MARKETING:
CASE STUDIES
LXXXIV
CHAPTER-4
Product
LXXXV
The increasingly wide variety of products on the market that support
sustainable development and are good for the triple bottom line include
products made from recycled goods, such as QuikN Tuff housing
materials made from recycled broccoli boxes and products that can be
recycled or reused. Efficient products, which save water, energy or
gasoline, save money and reduce environmental impact. Queenslands
only waterless printer, Print point, reduces operating costs by using
less water than conventional printers and is able to pass the savings on
to customers. Products with environmentally responsible packaging,
McDonalds, for example, changed their packaging from polystyrene
clamshells to paper.
LXXXVI
Price
Place
LXXXVII
displays or using recycled materials to emphasize the environmental
and other benefits.
Promotion
LXXXVIII
CASE STUDIES OF GREEN PRODUCTS AND
SERVICES:
Indias 1.15 billion population, and the worlds largest population in the
"Under 25 years age group
The largest democracy in the world, with greater political and social
stability than China.
The second fastest growing economy, and the 4th largest economy PPP
(purchasing power parity), in the world
LXXXIX
It is because of all these reasons that multinationals today are eyeing
India and introducing their products in the Indian market. Many Green
products have been launched here and the performance of these
products is good among Indian consumers. Some of the successful
case studies of green marketing are-
New Delhi, capital of India, was being polluted at a very fast pace until
Supreme Court of India forced a change to alternative fuels. In 2002, a
directive was issued to completely adopt CNG in all public transport
systems to curb pollution.
XC
Tata Motors is setting up an eco-friendly showroom using natural
building material for its flooring and energy efficient lights. Tata Motors
said the project is at a preliminary stage.
The Indian Hotels Company, which runs the Taj chain, is in the process
of creating eco rooms which will have energy-efficient mini bars,
organic bed linen and napkins made from recycled paper. But there
wont be any carpets since chemicals are used to clean those. And
when it comes to illumination, the rooms will have CFLs or LEDs. About
5% of the total rooms at a Taj hotel would sport a chic eco-room design.
One of the most interesting innovations has come in the form of a
biogas-based power plant at Taj Green Cove in Kovalam, which uses the
waste generated at the hotel to meet its cooking requirements. Tata had
launched a low-cost water a low-cost water purifier made from natural
ingredients. Another eco-friendly consumer product that is in the works
is Indica EV, an electric car that will run on polymer lithium ion batteries.
Tata Motors plans to introduce the Indica EV in select
European markets this year. The groups large companies such as Tata
Steel, Tata Motors, Tata Chemicals and Tata Consultancy Services
contribute 80% of the groups overall emissions and a panel, headed by
Tata Sons director JJ Irani, has been formed to address this issue.
Several companies have already or are in the process of implementing
clean development mechanism (CDM) projects. Tata Steel said it is
currently working on more than 17 CDM projects with Ernst & Young
XCI
and these projects are at various stages of approval at United Nations
Framework Convention on Climate Change. Tata Power has said that of
the total power it would generate in the next 10 years, 25% would be
from renewable energy sources. Tata Motors is collecting environmental
and energy data across its dealer and supply chain to compute their
carbon footprint and identity opportunities for cutting down on carbon
dioxide emission. This initiative will enable sharing and deployment of
ideas throughout the value chain.
A source in Indian Hotels said that all of its domestic and international
hotels would be certified by Green Globe, an international agency by the
end of 2010. Clean Technology Tata Steel aims to reduce carbon dioxide
emissions at its Jamshedpur plant from 1.8 tons to 1.7 tons per ton of
liquid steel made by 2012. Global benchmark is 1.5. Tata Motors is
setting up an eco-friendly showroom using natural materials.
XCII
4,000 per month from their own homes. This drive has produced a
sustainable livelihood for the poor women in that area.
"A green building is one which uses less water, optimises energy
efficiency, conserves natural resources, generates less waste and
provides healthier spaces for occupants, as compared to a conventional
building."
The rapid progress made by the Indian Green Building Council in India
and the prestigious green building projects being awarded the Platinum,
Gold and Silver ratings already in operation in India.
SCORECARD
XCIII
The only deterrent for going green, apparently, is the myth that project
costs are prohibitive and unaffordable. The construction industry and
upcoming Special Economic Zones would certainly welcome these
changes and implement them with the same approach as Indias was
to USA offer the carbon-credit carrot for implementation, but not to
make it mandatory and impose penalties or fines for non-conforming to
stipulated norms.
XCIV
is Reduce, Reuse and Recycle. Each hotel has its own programme,
encompassing local participation, creating awareness among
employees and internal conservation through energy-saving gadgets
and environment-friendly material. Guests are also encouraged to be a
part of campaign, Give back as much as you take from the
environment.
Awards
ITC Mughal won the Golden Peacock award for the year 2004.
ITC Green Centre was given the US Green Building Council Platinum
Rating.
ITC Hotels received the PATA Gold Environment Award in 2005 in the
Corporate category
LEED.
ITC Hotels made a humble start in the 'Greening' of the supply chain (GSC)
XCV
recently, with the clear intent of attempting to work towards'creating a sea of
excellence' as opposed to an'island of excellence' in the economic domain
through industry initiative, by inducing our suppliers to adopt cleaner & greener
production (C & GP) practices.
NTPC
XCVI
Gujarat University converts banana plant waste into useful products. A
Gujarat based agriculture university has successfully converted those
parts of the fruit's plant which are usually thrown away as waste into
highly useful products, including an edible candy with nutritional
values. The other products include fibre for textile and paper industry
and organic liquid fertilizer which have been developed under the
project which aims for efficient use of each and every component of
banana plant. This candy is made from the central core of the banana
plant pseudostem, which is a nutrition-rich part. The candy has been
developed on experimental basis and we are in the process of
standardising the product. And also looking at the demand for banana
in the international market and with new technologies evolved for better
yield, farmers have shown interest in its cultivation in state mainly in
districts of south Gujarat.
XCVII
resistance.
These tyres will also have longer life due to advanced compounding
technology - offering excellent performance, handling and braking that
are a hallmark of tyres from JK Tyre. A result of JK Tyre's pioneering
research initiatives into new-age environment-friendly raw materials,
these tyres are made from silica based tread compounds. The tyres also
offer higher durability as compared to normal radials and offer better
resistance against cuts - thanks to its superior compounding
technology.
XCVIII
a random collection of environment friendly technologies. They require
careful and systematic attention to the full life cycle impacts of the
resources, the resource consumption, and pollution emissions over a
buildings complete life cycle. As a society, we, in India, are more
conscious and sensitive to the impact of thoughtless over-exploitation
of our resources on environment. This awareness is thanks to our
culture, heritage and traditions brought forth with the Vaastu science,
which is as old as our civilization. Green design is a philosophy of
designing a building that is in harmony with the natural features and
resources surrounding the site. There are several key steps in
designing sustainable green buildings, such as, green building
materials are obtained from local sources that reduce loads, optimizes
systems, and generate on-site renewable energy. Building materials
considered to be green include products that are reusable, renewable,
non-toxic, and/or recyclable. Building materials should be extracted and
manufactured near the building site to minimize the energy wasted in
their transportation.
XCIX
energy can warm a building in winter. Prevailing breeze and convection
currents can passively cool a building in summer. Usage of thermal
mass can help store the heat gained during the day and release it at
night, thereby minimizing the swings in temperature. Thermal mass can
also both heat a building in winter and cool it during summer. Insulation
is the final step to optimizing a structure. Well-insulated windows,
doors, and ceilings and walls help reduce energy loss, thereby reducing
energy usage.
MARKETING
CI
including Zip Car (East Coast), Flex Car (Washington State), and Hour
Car (Twin Cities)
COKE INC
MCDONALD
McDonald's restaurant's napkins, bags are made of recycled paper.
CII
environmental friendliness. The schoolhouses walls are coated with a
silicone coating to guard against rain damage. The school can
accommodate about 16 students.
SILICON-AIR BATTERY
IBM
CIII
emissions per year. IBM claims that the savings for customers are great
in going green, by using IBM technologies such as their blade servers
instead of other vendor's technologies, a customer with a 25,000-
square-foot data center should be able to save as much as 42 percent
on energy consumption.
VIDEOCON
CIV
high-growth markets for telecommunications. At the same time, many
operators have adopted corporate social responsibility initiatives with a
goal of reducing their networks' carbon footprints, and network
infrastructure vendors are striving to gain competitive advantage by
reducing the power requirements of their equipment. According to an
industry report, all of these factors will continue to converge over the
next several years, and 'green' network equipment will grow to
represent 46% of the $277 billion global telecom infrastructure market
by
2013.
CV
problem in Indian cities and towns with the urban areas of India
producing about 40 million tons of solid waste from household and
commercial activities every year. As the Solid Waste Management
(SWM) is of local nature it is the responsibility of the State which in turn
has entrusted it to local authorities who carry out the solid waste
management in areas under their control using mostly their own funds,
staff and equipment. The urban local bodies spend approximately
Rs.500 to Rs.1500 (approx. USD 12 - 36) per tonne on solid waste for
collection, transportation, treatment and disposal. About 60-70% of this
amount is spent on collection, 20-30% on transportation and less than
5% on processing and final disposal. Out of the total municipal waste
collected, about 94% is disposed by open dumping and the rest is
composted (Visvanathan et al.,2004).
The 2001 Census has put the number of urban centres as 5144 out of
which 464 centres have a population greater than 1 lakh. According to
the Central Pollution Control Board(CPCB) the average waste generated
for small towns is 0.1 kg per person per day; for medium towns/city is
0.3 to 0.4 kg per person per day; and for large cities around 0.5 kg per
person per day (CPCB, 2000). The typical rate of increase of waste
generation in Indian cities has been estimated at around 1.3% annually.
The expected generation of Lesson from Municipal Solid Waste
Processing Initiatives in India International Symposium MBT 2007 IN -
www.wasteconsult.de 9 3
CVI
MSW in 2025 will therefore be around 700 grams per capita per day.
Considering that the urban population of India is expected to grow to
45% of total from the prevailing 28%, the magnitude of problem is likely
to grow to even larger proportions (World Bank, 2006).
The socio-economic structure of the Indian society not only makes per
capita generation of waste much less compared to that of the western
societies, it has also brought in a system of waste recycling and reusing
not common in developed societies, though these systems are fast
loosing ground. A substantial amount of MSW is recycled and reused
through the primary intervention of ragpickers and second-hand
markets, though there are problems like the health hazard to the
ragpickers and the degradation and devaluation of the recyclables.
Since the experience in the towns all over India regarding waste
processing has not been encouraging and since the States were not
observed to take any specific initiative in this regard various
committees were appointed by the Central Government and as a result
of these committees various projects were initiated. The two leading
methods of waste processing being adopted in India include
composting (aerobic composting, anaerobic, vermicomposting, etc.)
and waste-to-energy (bio-methanation, pelletisation, incineration)
(CPHEEO,2000). The larger (50-60%) proportion of organic matter in
Indian MSW indicates the desirability of biological processing of
wastes. This paper is aimed at analyzing the performance of these
CVII
waste processing plants on technical aspects (i.e. processing
technology and quality of product), the type of management and
performance, institutional aspects (i.e. government policies and
regulations, stakeholder cooperation) and environmental health
aspects. This also includes aspects such as the technology maturity,
input quality/ quantity flexibility and local availability of technology and
expertise.
Hotel offers free meal to guests who are willing to generate electricity.
The Crown Plaza Hotel in Copenhagen, Denmark , is offering a free meal
to any guest who is able to produce electricity for the hotel on an
exercise bike attached to a generator. Guests will have to produce at
least 10 watt hours of electricity - roughly 15 minutes of cycling for
someone of average fitness. They will then be given meal vouchers
worth $36 (26 euros).
CVIII
Company creates a desktop printer that doesn't use ink nor paper .
Different from conventional printers, PrePeat adopts a thermal head to
print on specially-made plastic sheets. These plastic sheets are not
merely water-proof, but could be easily erased, just feed the sheets
through the printer again, and a different temperature will erase
everything or just write over it. Also claimed by the manufacturer, such
one sheet could be used up to 1,000 times so that you'll reduce your
expenses on paper for sure.
Designer creates a sink that uses wasted water to grow a plant . Made of
polished stained concrete, the Zen Garden Sink has a channel that
allows the water used while washing your hands to water a plant.
CIX
Created by young Montreal designer Jean-Michel Gauvreau the sink
comes in single or double basin model. The sink is designed in a way
you won't get your plants all soapy. There is a main drain at the bottom
of the basin for soapy grime. Your little plant friend just gets whatever
you choose to dole out.
Designer creates a shower that forces you to leave when you've wasted
too much water. 20% of our total domestic energy usage is from hot
water for showering and bathing. That's over 6 times the energy usage
of domestic lighting. So designer Tommaso Colia came up with his eco-
friendly shower design that will force you to get out when you take too
long and waste much water. The eco_drop shower features beautiful
concentric circles that will rise to force you to stop showering when you
take too long, and accordingly save water.
CX
to Tio's computer program so the entire family can see how they're
doing. In a brilliant piece of visual positive reinforcement, Holley's
program lets kids grow a virtual tree which gets bigger and healthier the
more energy they save.
CXI
CHAPTER- 5
OBJECTIVE OF THE
STUDY AND
RESEARCH
METHODOLOGY
CXII
CHAPTER-5
METHODOLOGY
CXIII
The study is empirical in nature and has been designed to find out the
consumer perception of the green products and the factors that affect
their purchasing behaviour for the green products.
RESEARCH METHODOLOGY
Development of Questionnaire
CXIV
FRAMEWORK FOR FACTORS AFFECTING
ECONOMIES
CXV
Lifestyle or status symbol also influences the purchase decision. (
Griskevicius, Tybur,& Bergh, 2010)
CXVI
Framework for Factors Affecting Green Purchase
Behaviour
MARKETING
AWARENESS ASPECT
ASPECT
environment
1.
Product
3. Social Responsibility
3.
Promotion
4. Eco authenticity
4.
Place
Age,
Gender
3.
Family dimension
GREEN PURCHASE
4.
Education
5.
Occupation
BEHAVIOUR
6.
Income
CXVII
Based on the above framework a questionnaire was designed with 640
questions. Based on the face validity and repeatability the number of
questions was reduced to 150.
A pilot testing was done with these 150 questions and finally an
instrument of 43 questions was developed. A five point likart scale was
used to collect the responses. Data has been collected from 695
respondents from various parts of Mumbai and Navi Mumbai.
CXVIII
CHAPTER-6
PROFILE OF THE
RESPONDENTS
CXIX
CHAPTER- 6
The survey for the research work was conducted in the city of Mumbai
and Navi Mumbai keeping in mind that Green Marketing is still a metro
phenomenon in the developing economies like India. A sample of 1000
respondents was selected randomly for the survey. Out of which only
694 questionnaires were found completely filled hence considered for
the study.
From the table 6.1 it is evident that out of the total 649 respondents,
more then 27% are below 25 years of age group, maximum i.e. 39% are
from age group of 26 years to 35 years. Nearly 20% are from the age
group of 36 years to 45 years and rest of the 15% is from age group of
46 years and above.
CXX
Table 6.1- AGE OF THE RESPONDENTS
Up to 25
189
27.2
26-35
267
38.5
36-45
135
19.5
46 and above
103
14.8
Total
694
100
CXXI
Figure 6.1 - AGE OF THE RESPONDENTS (Bar Chart)
From the table 6.2 it is evident that out of total 694 respondents, 56% are
graduate and 24% are post graduate where as only 20% are SSC and
HSC passed which clearly indicates the high literacy ratio in the metro
areas.
CXXII
Table-6.2: QUALIFICATION OF THE RESPONDENTS
Qualification
Frequency
Percent
SSC
30
4.3
HSC
109
15.7
Graduate
390
56.2
PG and above
165
23.8
Total
694
100
WORKING STATUS OF THE RESPONDENTS
CXXIII
From the table 6.3 it is evident that out of total 694 respondents, 73% are
working and 27% are nonworking respondents
Professional Status
Frequency
Percent
Working
506
72.9
Nonworking
188
27.1
Total
694
100
Figure 6.3: WORKING STATUS OF RESPONDENTS
CXXIV
GENDER OF THE RESPONDENTS
From the table 6.4 it is evident that out of total 694 respondents, 60% are
male respondents and 40% are female respondents.
Table-6.4: GENDER OF THE RESPONDENTS
CXXV
Gender
Frequency
Percent
Male
416
59.9
Female
278
40.1
Total
694
100
Gender
Male
Female
CXXVI
CHAPTER-7
FACTORS AFFECTING
GREEN MARKETING IN
INDIA
CXXVII
CHAPTER-7
INDIA
CXXVIII
combinations of the potential factors, plus "error" terms. The
information gained about the interdependencies between observed
variables can be used later to reduce the set of variables in a dataset.
CXXIX
Factor-1 Concern for health and environment
Loading
1
Awareness of green product like
fuel
0.646
2
I am concerned about me and my familys
0.747
health
3
The uses of green product can save our
0.705
earth
4
Consumption of green products
will
0.646
CXXX
recycled
5
I promote environmental awareness by
0.618
1
To save energy, I use public transport as
0.571
much as possible
2
I buy
energy
efficient
household
0.691
appliances
3
I have
switched products for
ecological
0.542
reasons
Factor-4 Eco-certification
1
I look for eco friendly certification while
0.529
0.613
green product
1
I get value for money while buying Green
0.588
Product
2
There
are
campaigns
to
provide
0.711
3
Now a days people are more environment
0.508
Factor-6 Lifestyle
CXXXI
1
0.696
2
Green products are high quality products
0.593
1
The green products are not well promoted
0.737
in the market
2
The green products are not available at
0.571
affordable prices
Factor-8 Promotion
1
I look for good offers to buy green
0.719
products
2
I look for variety while buying eco-friendly
0.612
products
1
I am not brand conscious for eco friendly
0.7384
products
CXXXII
what I do
Factor-11 Packaging
1
Packaging
attracts me
to buy green
0.703
products
Kaiser-Meyer-Olkin
Measure
of
Sampling
.891
Adequacy.
Kaiser criterion: The Kaiser rule is to drop all components with eigen
values under 1.0.
MARKETING IN INDIA
As clear from Table 7.1, there are total 11 factors affecting green
purchase behaviour according to this study. Further as a market person,
we are interested in understanding the importance of these factors as
per customer ratings on various factors.
S.No
Factors
Mean
Std.
CXXXIII
Deviation
Concern
for health
and
1
environment
3.88
0.82
2
Eco buying attitude
2.99
0.86
3
Social Responsibility
3.21
0.90
4
Eco certification
3.27
0.99
Social
awareness
and
5
value
3.41
0.89
6
Lifestyle
3.25
1.04
7
Absence of marketing
3.29
1.03
8
Promotion
3.23
1.02
9
Brand consciousness
2.53
1.24
10
Indifferent attitude
2.50
1.02
11
Packaging
3.61
1.19
Result from Table-7.2 showed that Concern for health and environment
was considered as most important factor by the Indian consumers in
green purchasing behaviour, followed by packaging as the second, Eco-
certification as the third, and Lifestyle as the fourth most important
factor while Indifferent attitude is considered as least important factor,
followed by brand consciousness and eco-buying attitude.
CXXXIV
FACTOR AFFECTING GREEN MARKETING BY
DEMOGRAPHICS
Analysis of table 7.3 showed that across the age groups up to 25 years,
26-35 years, 36-45 years and 46 years and above concern for health and
environment is the most important factor affecting their buying
behaviour for green products. The second most important factor
Packaging is also across the age group. Social awareness and values
is third most important factor for age group up to 45 years while eco-
certification is important for age group more then 45 years.
CXXXV
Up to 25
26-35
36-45
46 and
Factors
Years
yrs
yrs
above
environment
3.90
3.95
3.84
3.73
2.87
3.06
2.99
3.01
Social Responsibility
3.01
3.32
3.31
3.16
Eco certification
3.15
3.31
3.33
3.32
Social awareness
and
value
3.37
3.45
3.41
3.38
Lifestyle
3.28
3.29
3.21
3.16
Absence of marketing
3.20
3.34
3.35
3.23
Promotion
3.36
3.24
3.23
2.98
Brand consciousness
2.66
2.57
2.33
2.44
Indifferent attitude
2.59
2.46
2.41
2.52
Packaging
3.55
3.77
3.44
3.52
CXXXVI
Packaging Indifferent
attitude
Concern for health
and environment
Brand consciousness 0 1 2
3 4
5
Promotion
Absence of
marketing
Lifestyle
Eco certification
Social
Responsibility
46 and above
36-45 yrs
Eco buying attitude
26-35 yrs
Up to 25 Years
CXXXVII
FACTOR AFFECTING GREEN MARKETING BY QUALIFICATION Analysis
of table 7.4 showed that across the qualification groups HSC,
PG and
Factors
SSC
HSC
Graduate
above
environment
3.67
3.63
3.98
3.84
3.10
2.80
3.00
3.06
Social Responsibility
3.59
2.94
3.22
3.29
Eco certification
3.22
3.02
3.30
3.36
Lifestyle
3.32
3.26
3.32
3.08
Absence of marketing
3.30
3.26
3.27
3.36
Promotion
3.30
3.15
3.33
3.04
Brand consciousness
2.13
2.58
2.59
2.42
Indifferent attitude
2.30
2.56
2.48
2.52
Packaging
3.60
3.48
3.66
3.57
CXXXIX
Packaging
Indifferent
attitude
Brand
consciousness
Promotion
Absence of
marketing
R
e
L
i
E
c
S
o
C
o
E P
c
H
S
o
0.00 1.00
2.00
3.00
4.00
5.00
CXL
FACTOR AFFECTING GREEN MARKETING BY GENDER
Analysis of table 7.6 showed that for both male and female respondents
Factors
Male
Female
Social Responsibility
3.24
3.16
Eco certification
3.20
3.37
Absence of marketing
3.29
3.29
Promotion
3.28
3.16
Brand consciousness
2.58
2.45
Indifferent attitude
2.54
2.43
Packaging
3.53
3.73
CXLI
Packaging
Indifferent
attitude
Brand
consciousness
Promotion
Absence of
marketing
R
e
L
i
E
c
S
o
C
o
E
c
S
o
0.00 1.00
2.00
3.00
4.00
5.00
AWARENE
SS ABOUT
ECO-
CERTIFICA
TION
AMONG
CONSUME
RS
CXLII
Green gap exists around terms such as energy efficiency, energy
conservation, demand response, smart energy and clean energy, and
customers understanding, acceptance and perceptions of value around
those terms, according to an EcoPinion survey from EcoAlign, a new
marketing agency launched by the Distributed Energy Financial Group.
CXLIII
UNDERSTANDING OF THE CUSTOMERS FOR GREEN PRODUCTS ON
Fresh products
CXLIV
80
74
76
70
63
60
55
50
48
43
40
43
42
30
24
32
20
10
0
Green Products
6.19 Analysis of Figure 6.5 shows that Green symbolize Healthy to 76%
respondents while natural/ organic to 74% of the total respondents. 63%
and 55% of respondents relate the term to vegetarian and fresh
respectively.
CXLV
UNDERSTANDING OF THE CUSTOMERS FOR GREEN SYMBOL ON
FOLLOWING OPTIONS
Vegetarian
Natural / organic
Recycled / recyclable
Ayurvedic / Herbal
Company logo
Fresh
Healthy
Good quality
Highly priced
CXLVI
Meaning of symbol
4%
0%
9%
10%
Vegetarian
8%
19%
Natural / Organic
Recycled / Recyclable
Ayurvedic / herbal
6%
Company Logo
Fresh
2%
Healthy
Good quality
42%
Highly priced
CXLVII
Figure 7.7: Awareness of the Customers for Green products present in
the market
Analysis of Figure 7.7 shows maximum respondent i.e 36% are not
aware of presence of green products in the market.
CXLVIII
CHAPTER-7
SUMMARY AND
CONCLUSIONS
CXLIX
Chapter-7
The model of innovation diffusion for example does not apply uniformly
to all international markets. In many respects this is due to differences
in culture. Different cultures have a different attitude towards the past,
present and the future which in turn impacts on degree of enthusiasm
for adopting new technologies. Also different cultures exhibit different
degrees of individualism and collectivism which influence readiness to
adopt something new or preference to wait until many others have
adopted the technology. Bradley (2003, p.108) shows that in eastern
countries the response pattern is different to that in the west and the
life cycle much shorter.
CL
Another model is Maslows hierarchy of needs which show the order in
which needs are satisfied by buyers. Research by Schutte and Ciarlante
(1998, p.93) shows that in Asia not only is the order in which these
needs are satisfied, different but also the needs themselves vary
compared to the west. The problem with these models is that they view
eastern or Asian markets as being similar and do not differentiate
between groups within such markets on socio economic lines as buyer
behaviour is likely to be markedly different between the wealthy
elite/growing urban middle class on the one hand and the urban
poor/rural masses on the other.
A clever marketer is one who not only convinces the consumer, but also
involves the consumer in marketing his product. Green marketing
should not be considered as just one more approach to marketing, but
has to be pursued with much greater vigor, as it has an environmental
and social dimension to it. With the threat of global warming looming
large, it is extremely important that green marketing becomes the norm
rather than an exception or just a fad. Recycling of paper, metals,
plastics, etc., in a safe and environmentally harmless manner should
become much more systematized and universal. It has to become the
general norm to use energy-efficient lamps and other electrical goods.
CLI
to maintain a cleaner and greener environment. Finally, consumers,
industrial buyers and suppliers need to pressurize effects on minimize
the negative effects on the environment-friendly. Green marketing
assumes even more importance and relevance in developing countries
like India.
CLII
opportunity to enhance you product's performance and strengthen your
customer's loyalty and command a higher price.
Until this occurs it will be difficult for firms alone to lead the green
marketing revolution. It must not be forgotten that the industrial buyer
also has the ability to pressure suppliers to modify their activities.
First and foremost, a good green marketing program is one that either:
adds renewables that would not already be added or supports
renewable projects that might not otherwise continue to operate. If
these things are already happening and being paid for by all, then the
program doesn't meet the bottom-line test: green marketing programs
must make a difference.
CLIII
among regional and national groups with an interest in promoting
renewable power. Public Service of Colorado, for example, has
developed a close working partnership with the Land and Water Fund
and other environmental groups in the state.
CLIV
Green marketing is offering a number of significant
Green marketing builds brand equity and wins brand loyalty among
customers.
However, green marketing poses huge dangers for marketers if they get
it wrong:
Most customers choose to satisfy their personal needs before caring for
the environment.
they see such labeling as a marketing gimmick, and they may lose trust
CLV
Green marketers need to find out the value their customers place on
green benefits. It is important that they position the product on the
basis of the functional need it caters to and then talk about the
additional benefits of greenness.
CLVI
to be seen is the importance green business has in India. Tackling mass
poverty is the first thing that is happening, and it should be the first
thing that the country emphasizes. India will be an economic
powerhouse, and could be a leader in green business if they choose to
be. The direction that business takes in India will have massive impact
on the world. If business leaders there recognize the vast potential that
green business has, and then decide to invest time, money, and effort,
the world would only benefit. India is in a very unique position right
now, they could either lead the world, or potentially aid in its
destruction.
CLVII
BIBLIOGRAPHY
CLVIII
BIBLIOGRAPHY
Chris Ely, (2010) What Green Means to Consumers & the Industry.
Dealerscope. Philadelphia: Mar 2010. Vol. 52, Iss. 3; p. 26 Peter Aldhous
(2010) Exposed: green shoppers' dirty little secrets New Scientist.
London: Vol. 205, Iss. 2753; pg. 11
CLIX
William Young, Kumju Hwang, Seonaidh McDonald, Caroline J Oates
(2010) Sustainable Development. Chichester: . Vol. 18, Iss. 1; pg. 20
Hume, Scott (1991), "Consumer Double-talk Makes Companies Wary,"
Advertising Age, 28 October, GR4.
CLX
Kaman Lee. (2008) Opportunities for green marketing: young
consumers. Marketing Intelligence & Planning 26:6, 573-586. Online
publication date: 1-Feb-2008
Green Journal
CLXI
Buttel F H and Flinn W L (1978), "Social Class and Mass Environmental
Beliefs: A Reconsideration", Environment and Behavior, Vol. 10, No. 3,
pp. 433-450.
CLXII
McEvoy J (1972), "The American Concern With Environment", Social
Behaviour, Natural Resources and the Environment, pp. 214-236, Harper
& Row, New York.
CLXIII
Schahn Joachim and Holzer Erwin (1990), "Studies of Individual
Environmental Concern: The Role of Knowledge, Gender, and
Background Variables", Environment and Behavior, Vol. 22, No. 6, pp.
767-786.
Stern Paul C, Dietz Thomas and Kalof Linda (1993), "Value Orientations,
Gender and Environmental Concern", Environment and Behavior, Vol.
25, No. 3, pp. 322-348.
CLXIV
Tognacci Louis N, Weigel Russell H, Wideen Marvin F and Vernon David
T (1972), "Environmental Quality: How Universal is Public Concern?",
Environment and Behaviour, Vol. 4, No. 1, pp. 73-86.
CLXV
ANNEXURE
LIST OF COUNTRIES ANNEX-1 AND ANNEX-2
CLXVI
Annex I Countries
Australia
Austria
Belarus a/
Belgium
Bulgaria a/
Canada
Croatia*
Czech Republic a/ *
Denmark
European Union
Estonia a/
Finland
France
Germany
Greece
Hungary a/
Iceland
Ireland
Italy
Japan
Latvia a/
Liechtenstein*
Lithuania
CLXVII
Luxembourg
Monaco*
Netherlands
New Zealand
Norway
Poland a/
Portugal
Romania a/
Russian Federation a/
Slovakia a/*
Slovenia a/*
Spain
Sweden
Switzerland
Turkey
Ukraine a/
on 13 August 1998,
(EIT))
Australia
Luxembourg
Austria
Monaco*
CLXVIII
Belgium
Netherlands
Canada
New Zealand
Croatia*
Norway
Denmark
Portugal
European Union
Spain
Finland
Sweden
France
Switzerland
Germany
Turkey
Greece
Iceland
and Northern Ireland
Ireland
Italy
Japan
Liechtenstein*
* Countries added to Annex I by an amendment that entered into force
on 13 August 1998,
CLXIX
The non-annex I countries are the developing countries
CLXX
QUESTIONNAIRE
Questionnaire
1) Gender
CLXXI
2) Age
3) Education
4) What do you understand from green products? (Tick more than one)
a) Green colored products
Others_____________
5. What does the symbol on the right signify? (Tick any one)
CLXXII
a. Vegetarian
b. Natural / organic
c. Recycled / recyclable
Fresh
Healthy
Good quality
Highly priced
a. Yes
a. Yes
CLXXIII
b. No
8. Have you ever sent old or broken household electronic products (Mobile
phone, Television, Refrigerator, Air-conditioned, Car battery.etc) for
recycling?
a. Yes b. No
9. Are you aware of any products that are designed with environmental
issues in mind? If yes, kindly mention the same.
10. Choose the energy saving electronics from following which are used by
you currently?
CLXXIV
(b) Solar water heater
(k) None
11. Have you ever bought or considered buying products which are
designed with environmental issues in mind?
a. Yes b. No
CLXXV
(e) Other (specify)_____________________________
12. If given a choice, please choose the kind of vehicle from the following
that youd prefer to own.
(a) Petrol
(b) Diesel
(c) Gas
(d) Electric
(e) Solar
(f) Others___________________
Abstract (Summary)
CLXXVII
The GfK Roper Green Gauge(R) Global report, which examines the
green habits of 36,000 consumers in 25 countries worldwide, found that
American consumers are also skeptical about the cost and efficacy of
green products and their impact on the environment. Approximately two
in three Americans perceive green products to be too costly and one-
third believes they don't work as well as "regular" products.
In the USA, these numbers also represent a dramatic increase from just
two years ago.
"In the US and around the world, marketers are being challenged by
consumers to produce better green products that don't cost too much.
To that end, marketers need to be cognizant of the distinctive
perceptions and attitudes about green products in order to convey
these products as a smart, pragmatic purchase," said Timothy Kenyon,
Director of the GfK Roper Green Gauge study at GfK Custom Research
North America.
CLXXVIII
Between these segments lie the "Carbon Cultured," consumers who are
concerned about the environment, yet their green behaviors tend to lag
a bit, as well as the status-seeking "Glamour Greens." "Green in Need"
consumers have the desire, but lack the means to be environmentally
responsible.
"Our Green Gauge Global report not only discusses the unique
elements of each of these population segments, but it also provides
actionable strategies for developing green marketing campaigns and
tailored customer communications in every region across the globe,"
said Kenyon. "Now, more than ever, there is no one-size-fits-all
approach to reach those consumers across the globe who embrace
green behaviors compared to others who are less passionate about the
environment."
CLXXIX
CLX
XX