IBMR IPS ACADEMY INDORE

SESSION (2017 - 2019)

Submitted To: Submitted By:

MBA III Sem

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 Table of content

S.No Contents

1 Introduction

2 Green Consumer Behavior

3 Hypothesis

4 Methodology of study

5 Research design

6 Sample size

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 A study of Consumer Behaviour for Green Marketing
Ms. Anuradha Gaikwad.
Ms. Deepa Ingavale.

Abstract-

In current business scenario environmental issues plays an important role in business. In most of
the countries government is concerned about the environmental problems. In today’s business
environmentally sustainable development has become a key issue. Thus Green marketing is one
of the strategies a firm can adopt to achieve this.

Green Marketing refers to the process of selling products and /or services based on their
environmental benefits. Such a product or service should be eco-friendly in itself or produced in
an eco-friendly way. In today’s environmentally conscious world the word “Green” has become a
buzz word. Green causes are increasingly popular with public making green marketing good for
public relations and sales.

Green Marketing has been defined by AMA as “The study of the positive and negative aspects of
marketing activities on pollution, energy depletion and non-energy resource depletion”.

However one of the basic assumptions of green marketing is that potential consumers would be
willing to pay more for a “green” product. The present paper makes an attempt to analyse the
awareness and willingness of the consumer to buy green products.

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Introduction

Global warming, carbon credits, ozone depletion, environmental hazards, environment impact
assessment have all become common terminology in the 21 st century and it is an indication of
environmentally conscious society. Society becomes more concerned about natural environment
when ill effects of environmental degradation are experienced by the society. One of the reasons
for this degradation is problems that arise out of mass production, mass consumption and mass
marketing of environmentally irresponsible products. As a result business houses have begun to
modify their behavior in an attempt to address these kinds of ‘new’ concerns of the society.
Conventional marketing involves selling products and services that satisfy consumer needs at
affordable prices but green marketing has the additional challenge of defining ‘what is green’ and
developing and selling products that the consumer will like.

Green marketing also known as environmental marketing involves a range of activities including
product modification changes in production process, changes and modifications in packaging as
well as modifying advertising. As defined by Tapan K. Panda “Green or Environmental
Marketing consists of all activities designed to generate and facilitate any exchange intended to
satisfy human needs or wants such that the satisfaction of these needs and wants occurs with
minimal detrimental impact on natural environment”.

It is imperative that when we talk and think about green products; to be really ‘green’ they should
claim that they are ‘less environmentally harmful’ rather than environmentally friendly. Thus
environmental marketing should look at minimizing environmental impacts. Environmentally
friendly products balance environmental compatibility with performance, affordability and
convenience. They are typically durable, recyclable, non-toxic and should be made out of
materials which are either decomposable or recyclable. These products should have minimum
packaging and embody low environmental energy impact.

We all know that the resources on this earth are limited and human wants are unlimited.
Therefore it is important for the marketers to utilize resources efficiently without waste as well as
to achieve the objectives of the organisation. There is a growing interest among the consumers
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all over the world regarding protection of environment. World wide evidence indicates that
people are concerned about the environment and are accordingly modifying their behaviour.
Green marketing has emerged as a result of this and it speaks of a growing market for sustainable
and socially responsible products and services.

As debates about how to cope with impact of human activity on environment continue in full
force, such as global warming talks that dominate political circles, business have entered the
‘green market’. Firms typically provide consumers eco-products or adopt green practices, and
some firms simultaneously offer eco- or green products while committing to eco-production and/
or eco philanthropy. Green business strategies have appeared in a wide range of industries and
address a wide range of eco issues. A few examples of green products are hybrid automobiles,
eco-friendly paint, organic food, recycled copy paper and environmentally friendly cleaning
products. Businesses also promote their recycling efforts, use of wind power, or other practices
intended to minimize the environmental impact of their actions.

Firms in market economies make their production and marketing decisions based on many
factors, including government regulations and consumers, which are primary forces shaping
consumer products industry. Consumer preferences regarding eco-friendly products and
government regulation provide incentives for incorporating environmental and other green
objectives in the firm’s profit maximisation decision. Some firms are proactive with respect to
greening of their products while for some firms eco-friendly practices are a bye-product of cast
minimization strategy.

An important aspect of green marketing is the willingness and ability of the consumers to buy
green products and pay more for it. The US market for example has 3.5 million confirmed green
consumers while European market also has a consumer base for Green Products.

However there is very little data available on the consumer base in India or the willingness and
ability of the consumer to pay extra for green products. The present paper is an attempt to study
the consumer awareness of people in the city of Kolhapur.

Green consumer behavior:

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We can define a green consumer behavior the one that has these characteristics:

 "purchase choice, product use and post-use, household management, collective, and consumer
activism behaviors, reflecting some degree of environmental- related motivation";
 "purchase and use of products with lower environmental impacts, such as biodegradable
products, recycled or reduced packaging, and low energy usage"

 use of organic product, made with processes that provide energy saving, then by the action of
recycling, in fact a green consumer is "one who purchase products and services perceived to
have a positive (or less negative) influence on the environment

Objectives

1. To study the awareness of consumers with respect to green marketing.

2. To find the willingness of the consumers to pay more for green products.

3. To find out awareness about eco- friendly or green products.

Hypothesis:

1. Consumers are aware about green marketing.

2. Consumers are willing to pay more for eco-friendly products.

Methodology of Study:

Both primary data and secondary data has been used for the research paper.

1. Primary Data

This includes questionnaire survey of people from the study area.

2. Secondary Data

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 Various published articles from journals, books, internet websites.

Research Design:

The research design used in the project is descriptive and exploratory research design. it was
decided to conduct the research with a sample size 100.

Sample Size:

The sample size Will be 100 - 200 customer each. Data are collected by using questionnaire and
interview.

References:

A. Books

1. Grant John (2007), The green Marketing Manifesto, John Wiley and Sons Ltd accessed
via internet on 14th Jan 2011.

2. Ottman Jacquelyn. A. (2007) Green Marketing: Opportunity for Innovation’ Book Surge
LLC accessed via internet on 15th Jan’ 2011.

3. Ottman Jacquelyn. A (2011) The New Rules of Green Marketing: Strategies, Tools, and
Inspiration for Sustainable Branding accessed via internet on 15th Jan 2011.

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4. Panda Tapan, (2007) Marketing Management- Text and Cases, Indian Context, Excel
Books, New Delhi. P. 287 – 290.

B. Journals

1. Woolverton Andrea and Dimitri Carolyn (2010), Renewable Agriculture and food
systems from retrieved 12th Jan 2011from INFLIBNET data base

C. Websites

1. www.sbinfocanada.about.com/cs/environmentbiz/a/sustaindevelop.htm
2. www.coolavenues.com/mba-journal/marketing/green-marketing-opportunities-
challenges?page=0,1
3. www.indianmba.com/Faculty_Column/FC623/fc623.html

4. www.usatoday.com/money/advertising

5. http://e-articles.info/e/a/title/Green-Marketing/

6. www.businesspundit.com-