“CONSUMER BEHAVIOUR TOWARDS ECO-

FRIENDLY PRODUCTS”

Submitted for Internals for the Fulfilment of the Degree Masters of

Business Administration 2013-15

SUBMITTED TO- SUBMITTED BY-

MRS. ROMA JAITLEY DISHA JAIN (082)
(Faculty,DIAS) POOJA GUPTA (107)
JAGRITI CHHABRA (132)

DELHI INSTITUTE OF ADVANCED STUDIES

Affiliated to Guru Gobind Singh Indraprastha University

 INDEX

S. No. Content

1 ABSTRACT

2 INTRODUCTION

3 LITERATURE REVIEW

4 RESEARCH METHODOLOGY

5 RESEARCH DESIGN

6 CONCEPTUAL FRAMEWORK

7 FINDINGS

8 ANALYSIS

9 CONCLUSION
ABSTRACT
Environment friendly products and green marketing has become a highly attractive
subject. Corporate are constantly trying to find the best way to reach the customers
with their green message. Customers and businessmen are depending more on
environment and have started to pay more attention to the protection of environment.
Over the past few years, the demand for green products in Indian has been growing
significantly due to the increased interest in the environment. Consumers today are
increasingly “thinking green” and are willing to pay more for environmentally friendly
products. The increasing numbers of consumers who prefer and are willing to buy
these products are subjected to the buying process. Consumers have different
buying behaviours and these behaviours are constantly changing as a result of the
availability of best alternatives to choose from. As a part of company’s corporate
social responsibilities they try to products and provide services which are eco
friendly. Products are chosen for numerous reasons after seeing all the advantages
and disadvantages by the customer. Overall, the buying process is extremely fast-
paced today. This paper aims to find out the consumer buying behaviour towards
eco friendly products.

INTRODUCTION
Environment concern had become the most important issue for mankind in the
present world.

The businesses are no exception for this issue and they are responding through
environment-friendly products. Throughout this paper the terms eco-friendly
products, environment-friendly products, green products mean the same and are
used interchangeably. The depletion of oil resources, raw materials and pollution are
making organizations to rethink about their products and services. The eco-friendly
products are being introduced by modern organizations to protect the environment.
Eco-friendly paper is one of the solutions to save the environment and reduce the
pollution in thepresent world.

In recent years, terms like "going green" and "eco-friendly" have become buzz
words. The term "eco-friendly" has been used for so many different products and
practices; its meaning is in danger of being lost. Due to the increased importance of
green marketing to market success, firms continue to launch various forms of green
packaging programs through the introduction of recyclable and reusable packages.
Green marketing is due to the increased importance of green marketing to market
success, firms continue to launch various forms of green packaging programs
through the introduction of recyclable and reusable package.

Along with climate change, population growth and diminishing the natural resources
in current era, new techniques and methods are used for producing goods, which are
less energy consumption, more compatible with environment and harmless for
nature and humankind. Express that purchasing behaviour has a direct impact on
producing ecologically compatible products. Increasing number of people who are
willing to pay more for these kinds of products is the evidence, which supports the
growth of environmentally friendly products. With regard to increasing demand for
buying environmentally friendly products many companies also are producing and
replacing green products with non-environmental friendly products. Shifting from
normal products to environmentally friendly needs vast market research by
producers.

Environmentally preferable products are sometimes more expensive to

purchase than other alternative products. Green consumers have been shown to be
willing to pay a higher price for environmentally friendly products, which is a huge
opportunity for companies as well as governments looking to make eco-friendly
policy changes. Thus, the increasing number of consumers who prefer and are
willing to buy eco friendly products are creating opportunity for businesses that are
using “eco-friendly” or “environmentally friendly” as a component of their value
proposition. Businesses that offer products which are manufactured and designed
with an environmental marketing mix have a long term competitive advantage. A
better understanding of consumers’ buying behaviour will allow businesses to
acquire more market-applicable approach to sustain in the competitive market.
Behaviour has a strong influence in terms of consumer purchases. Shift towards
more sustainable consumption patterns is required and it is also important to
increase the environment awareness & consciousness among the people.
Consumers can reduce their impact on environment by their purchasing decisions.
The rising number of consumers who prefer and are willing to buy eco-friendly
products are creating opportunity for businesses that are using “eco-friendly” or
“environmentally friendly” as a component of their value proposition. Businesses that
offer products which are manufactured & designed with an environmental marketing
mix have a long term competitive advantage. Environmental issues are of
importance to consumers who are environmentally conscious when making a
purchase. Hence, a better understanding of consumer preferences in this case will
allow businesses to acquire more market-applicable approach to sustain in the
competitive market.

Overall consumers seemed to be most impacted by drivers that impact their lives
and the lives of their loved ones today. Health was a strong motivator in driving
“green” behaviour especially with respect to cleaning and other household products.
Some admitted that the sole reason for going green is that it makes economical
sense – this is respect to light bulbs and other such energy efficient products, with
green being a nice by-product. While many feel good about doing their share, they
feel that understanding the impact of many people making simple changes to help
the environment would be a powerful motivator.

The research paper aims to study that what all factors influence consumer behaviour
towards eco friendly products.
LITERATURE REVIEW
Dr.D.Geetha, D.Annie Jenifer (2014)

This research study on the “a study on consumer behaviour towards purchase of eco
friendly products in Coimbatore” throws light on the consumer’s attitude. The factors
influencing their purchase are benefit for health, quality and reliability, Variety and
quantity, environment and ambience, customer services and friendship advice etc

Collins Marfo Agyeman (2014)

Consumers are willing to buy eco-friendly products, but not to pay higher prices. This
indicates green product awareness among consumers. As consumers are aware and
concerned about the green products, it creates an opportunity for developing green
marketing focusing on more consumers.

P. Kishore Kumar & Dr. Byram Anand (2013)

The purchase intention of consumers is influenced by psychographic variables. The

consumers who have positive ecological behaviour also possess knowledge about
various green products like eco friendly paper. The consumers are influenced by
personal norms than social norms while adopting environment-friendly products.

Dr. Suresh S. Kawitkar (2013)

Most of the people are influenced by eco friendly product. Eco friendly products are
not easily available in the market Eco friendly products are not effectively promoted
As compare to other product eco friendly products are consumed less Eco friendly
products are costly hence consumer move away from it.

Kamyar Kianpour, Ahmad Jusoh, Maryam Asghari (2012)

There is a potential for generalizing the idea of buying green products for saving the
environment, energy and resources by this population in the future. It is
recommended that the authorities study the motivators that could persuade the
customers who are not willing to buy green products.

Afzaal Ali & Israr Ahmad (2012)

Consumers have expressed strong concerns regarding the environment, besides

with eagerness to buy products and services that they consider will add to a better
planet. With the passage of time, green consumerism is already a significant
movement, and it assures to become even more significant. Hence, what is better for
the environment is better for the organization also. Therefore, environmental
marketing, and green marketing can be done by businesses or enterprises to
increase green purchasing intention of consumers.
Clearworks, Green Resource Network, Infoco USA and ExecuteNow (2009)

Price remains the primary barrier to purchasing green products. The current
economic environment combined with a healthy dose of scepticism about green
claims makes it easier for consumers to delay acting upon whatever green purchase
impulses they may have.

Maneesha Patel, Namita Raina, Raj Patel(2012)

The main objectives of the study are to investigate the consumer attractiveness
towards eco- friendly products in FMCG sector and their impact of purchasing
decisio

OBJECTIVES

1. To check the awareness about the importance of eco-friendly product.

2. To study the factors affecting the buying behaviour of customers towards eco
friendly.
3. To analyze the retailers whether they are promoting eco friendly products or
not.
4. To check the preferences of customers between general good and eco
friendly good.

RESEARCH METHODOLOGY
Two methods of data collection methods are used for research purpose.

1] Primary data collection method

2] Secondary data collection method

The primary data for the purpose is collected through structured questionnaire. With
the intension of representing the population properly, the sample is distributed
among consumer. Secondary data is collected through internet, magazines, text
books.

The sample size of 50 is taken for study.

RESEARCH DESIGN
Research design used is exploratory as well as descriptive research design for this
study.
CONCEPTUAL FRAMEWORK

Ecology and Environment

Ecology is the science that deals with the interconnection of living organism and their
environment. Human ecology specifically looks at the interaction between human
and their environment. It is ultimately human being who chooses how to use
technology, and they initiate the action that result into ecological disturbances.

Eco-friendly Products
A study of biotic and abiotic factor is environment. Ecology is a relationship between
organisms and their environment. So by this definition we can readily say that the
products, which are friendly to the environment or ecology, are eco-friendly products.
The products in which a healthy person is exposed without any adverse affect are
Eco-friendly Products.

Different types of eco friendly

 Stationery
 Organic Food
 Electronic Appliances etc.

Consumer Behaviour
Consumer behaviour is the study of how people buy, what they buy, when they buy
and why they buy.
It blends elements from psychology, sociology, and economics. It attempts to
understand the buyer decision making process both individually or in groups. It
studies characteristics of individual consumers such as
demographics, psychographics, and behavioural variables in an attempt to
understand peoples want. It also tries to assess influencers from consumer from
groups such as family, friends, reference groups, and society in general.

Purchase Decision:
Once the alternative has been evaluated, the consumer is ready to make a purchase
decision. Sometimes purchase intension does not result in an actual purchase. The
marketing organization must facilitate the consumer to act on their purchase
intension. The provision of credit or payment terms may encourage purchase, or
sales promotion such as the opportunity to receive a premium or entering a
competition may provide an incentive to buy.

Obstacles to the Greenness

There are several problems associated with organizations attempt to undertake

green marketing practices. Some of them are-

1] Very often it is said that the products which are more environmentally safe, cost
more.
2] Consumer does not like performance and quality of green products.

3] Packaging is a key element in marketing. Packaging of eco friendly product does

not perform the promotional function.
DATA INTERPRETATION

Q.1 Have you ever bought or considered buying products which are Eco-Friendly?

Yes No Don’t care

24 20 6

No
Don't Care
Yes

Q.2 Income per annum

Not Applicable 2-5 lacs Below 2 lacs Above 5 lacs

30 12 2 6

Not Applicable
2-5lacs
below 2 lacs
above 5lacs

Q.3 Does price influence your purchase behaviour for Eco-Friendly products?

Yes No
35 15

Yes
No
Q.5 What kind of Eco-Friendly products have you bought?

Organic Food Electronic Appliances Stationery Decorative Items

16 15 13 6

Oraganic Food
Stationery
Decorative Items
Electronic Appliances

Q.6 Based on your past “green” shopping experiences, do you think large retailers
are providing a large selection of green products to choose from?

Yes No

28 22

Yes
No

Q.7 Does store environment, customer service and additional-value services

influence your shopping preference?

Yes No

44 6

No
Yes
Q.7 What kinds of gifts do you prefer to present?

Eco friendly According to person’s choice

10 40

Eco friendly
According to persons choice

FINDINGS
On the basis of information collected from the respondents, some important facts
which come as a result of this research are as follows:

 Out of the total respondents only 50% have bought or considered buying eco
friendly products.
 The most important factor that influences the buying of consumer is the price
of the product.
 After price, income of the people plays a vital role in buying eco friendly
products.
 57% of the people think that retailers are providing enough space for eco
friendly products.
 The environment of the store plays an important role in buying of the product
is the opinion of most of the respondents.
 Majority of the respondents prefer to buy organic food and electronic
appliances.
 Respondents still prefer to present normal consumer goods rather than
presenting eco friendly product. 85% of the respondents present the gift
according to the person’s choice.

ANALYSIS
 Consumers are still not aware of the benefits of eco friendly products they
take it as wastage of money.
 The chunk of the respondents who were aware of the benefits were ready to
pay high prices because they aren’t ready to compromise with their health and
environment.
 Retailers and the marketers are still not emphasising on the importance of eco
friendly goods and they are including less inventory of such products.
CONCLUSIONS

This study was conducted to investigate the relationship between the variables that
affect consumer’s buying behaviours for green products, to examine the factors that
affect consumer’s buying behaviours for green products.
Environmental concern could emerge as one of the powerful drivers that influence
eco-friendly purchases; it has actually not resulted in the ability to command a
sustainable premium consumers are willing to buy eco-friendly products, but not to
pay the higher price.
It may be important to examine in future studies the effect of disposable income on
willingness to pay premium. Increased consumer demand will help reduce costs in
production of eco-friendly products. Awareness among consumers that their buying
choices can make a difference to the environment should be promoted. There is a
scope for eco-friendly marketers to capture this market as it has long term scope &
growth.
Different other studies reveal that consumers are ready to pay more prices for the
products which are causing less environmental pollution. They also prefer
promotional campaign which protects the environment, and distribution channels
which are not causing environmental pollution. But they are not ready to compromise
the quality of the product for the sake of the environment. The marketers should
include consumer’s attitude measurement program me in their marketing plan and
adopt all aspects of green marketing, then only they can achieve their goal and fulfil
the social responsibility of a business concern.
BIBLIOGRAPHY

Dr.D.Geetha, D.Annie Jenifer (2014), “A STUDY ON CONSUMER BEHAVIOUR

TOWARDS PURCHASE OF ECO FRIENDLY PRODUCTS IN COIMBATORE”
Abhinav International Monthly Refereed Journal of Research in Management &
Technology, Volume 3, Issue 3 (March, 2014)

Collins Marfo Agyeman (2014) ,“CONSUMERS' BUYING BEHAVIOR

TOWARDSGREEN PRODUCTS: AN EXPLORATORY STUDY”, Int. J. Mgmt Res. &
Bus. Strat. 2014, Vol. 3, No. 1, January 2014

P. Kishore Kumar & Dr. Byram Anand (2013), “A Study on Consumer Behavior
towards Eco -Friendly Paper”, Global Journal of Management and Business
ResearchAdministration and Management Volume 13 Issue 11 Version 1.0 Year
2013

Dr. Suresh S. Kawitkar (2013), “Impact of Eco-friendly Products onConsumer

Behavior”, International Indexed & Refereed Research Journal, VOL- IV * ISSUE-
40, January, 2013

Kamyar Kianpour, Ahmad Jusoh, Maryam Asghari (2012), “Importance of Price for
Buying Environmentally Friendly Products”, Journal of Economics and Behavioral
Studies Vol. 4, No. 6, pp. 371-375, June 2012

Afzaal Ali & Israr Ahmad (2012), “Environment Friendly Products: Factors that
Influence the Green Purchase Intentions of Pakistani Consumers” Pak. j. eng.
technol. sci., Volume 2, No 1, 2012, 84-117, Jun 14, 2012

Maneesha Patel, Namita Raina, Raj Patel Consumer Behaviour – An Eco friendly approach
Maratha Mandir’s Babasaheb Gawde Institute Of Management, Mumbai University,
India

Clearworks, Green Resource Network, Infoco USA and ExecuteNow (2009), “Green
Products and Services --A Viewpoint from Consumers and Small and Medium
Business” ,

WEBSITES

www.google.com

www.wikipedia.com