2 Influence of Green Marketing
2 Influence of Green Marketing
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InfluenceofGreenMarketingonConsumerBehaviorARealisticStudyonBangladesh
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Influence of Green Marketing on Consumer
Behavior: A Realistic Study on Bangladesh
A S M Saifur Rahman α, Adita Barua σ, Rajidul Hoque ρ & MD Rifat Zahir Ѡ
Abstract- This study aims at looking into consumer perception Companies often applies different strategical
towards green values created by the green marketing efforts approaches toward different parts of the industry to gain
by the promoters and its impact on their purchasing behavior competitive advantages via repositioning consumer
of eco-friendly sustainable products. This study also highlights
perception through innovative green products (Elham
the resolution of the efforts set by marketers in promoting
2017
Rahbar, 2011). In past few years, the concept of green
green brand awareness in the consumer’s mind relative to the
non-green products. It further highlights the consumer marketing has only been highlighted over the packaging
Year
perception and the impact of green marketing communication and labeling of product and incentive strategies. An
to see how consumers are influenced to opt for green assessment should be carried out to know about how
products. The study includes the result of a consumer product different organizations are putting their effort in green 9
and green marketing survey using a questionnaire devised by activities.
Global Journal of Management and Business Research ( E ) Volume XVII Issue I Version I
the authors on the basis of several types of research carried in Purchase decision making process of a
the field. This study holds that despite there is a lot of scope consumer usually consists of five stages: the felt need of
in Bangladeshi market for green products to be utilized more
a benefit, information search, evaluation of alternatives,
within consumer groups that have pro-environmental
preferences, green product marketing communication isn’t
purchase decision and post-purchase evaluation. In this
revealing enough to consumers. The study urges that the process of consumer purchase decision, several factors
greater use of marketing and brands to promote and sell like social, cultural, psychological, behavioral, marketing
products that are environmentally favorable and function mix and situations, all effect at some point.
effectively. Both parties, the organizations and consumers
Keywords: consumer behavior, green marketing, green have a responsibility toward environmental issues and
products. they participate in the process by delivering and
purchasing of green products. Here, the fact should be
I. Introduction noted that environmental commitment and participation
N
ow environmental awareness has not merely in green activities are two separate issues, both the
become a global interest, as well as a organizations and consumer has a vital role to play here,
demanding issue in academic research. The but consumer decision is the most crucial because they
green issue has fostered a positive change in the motivate producers to deliver green products (Suplico,
behavior of consumers since 1970s (Linda F. Alwitt, 2009). It is a common sense that consumers won’t buy
1996). This change has induced a significant upset in such product that is harmful to human health,
the perceptual experience of consumers with a rising environment, plants, animals and any natural resources
concern for the preservation and prevention of any (Lee, 2008).
further damage to the environment. Admittedly green Learning these facts might play an influential
marketing is an effort to reduce these disturbing impacts role in the change of consumer purchasing behavior
on our environment through installing a new course of and create a positive perception toward environmentally
green concept through designing, producing, friendly products. Consequently, research is important in
packaging, labeling and consuming products that are particular geographical, sociological, situational and
eco-friendly. time settings (Elham Rahbar, 2011).
Several studies have investigated the change in
the consumer’s perception, where people are caring
about the environment will demonstrate their concerns
Author α: BBM (India) & MBA (UK), Lecturer, Faculty of Business through different behaviors, such as avoidance of
Administration, Cox’s Bazar International University. buying a product because it is potentially harmful
e-mail: [email protected] (Suchard & Polonsky, 1991).
Author σ: BBA & MBA (University of Chittagong), Lecturer, Faculty of
Business Administration, Cox’s Bazar International University. II. a review of the research literature
e-mail: [email protected]
Author ρ: BBA & MBA (University of Chittagong), Assistant Professor, Several researchers have attempted to find a
Faculty of Business Administration, Cox’s Bazar International University.
e-mail: [email protected]
way to preserve the environment. Many perceived that
Author Ѡ: Student, Faculty of Business Administration, Cox’s Bazar there is a keen relation between behavioral
International University. e-mail: [email protected] characteristics, demographic characteristics,
Today, many companies are pursuing their demands on the basis of environmental requirements.
effort to preserve the environment by delivering products The very first era lasted till the early 1970s,
that are environment-friendly. For this purpose, namely ecological green marketing era, really focused
products and producing process has become greener on external problems of the environment (e.g. Air &
as they realized that going green and profits aren't water pollution). The second era took off in the late 80s,
contradictory to each other (Hart, 1997, p. 67). Green namely, green environmental marketing era infused
marketing is providing an opportunity to be innovative in several new concepts with the past focused area, such
a way that will assist them to make profits and contribute as developing clean technology, ensuring sustainability,
toward the green planet (Grant, 2007, p. 10). Though looking out for a consumer and trying to attain
business often causes damage to the environment in competitive advantage etc. (Peattie & Crane, 2005).
several ways, whether it is directly or indirectly, now The core difference between first and second
there is a raising phenomenon of recognizing eras was that the first era was focused on the
environmental friendly sustainable operations. effectiveness of the industries on the environment, but
Especially MNCs (Multinational Companies), possesses the second era included all services and manufacturing
enough resources to put green activities in motion, they methods under environmental marketing (Peattie &
should come forward (Tjärnemo, 2001, p. 29). Crane, 2005).
To put it in a simple term, marketing refers to The third era, sustainable green marketing,
"working in the market", in order to deliver the benefits concentrated on empowering strict rules of the state,
that will meet the needs of consumers at large. But the which the second era couldn't continue. Since then, a
term green marketing is not all about satisfying sustainable development in the arena of marketing
consumer needs or improving the living standard, it's made a great influence over the economy (Delafrooz,
about preserving the ecosystem, it's about defending Taleghani, & Nouri, 2014). For instance, the
against ecological damages we already caused by “environmental technology” created by the Toyota was
industrial advancement (Polonsky, 2011). Recently, not just because of law enforced them to do so, but also
green marketing gained a significant coverage within the due to the demand from a unified product line for the
world-wide media. It seems that both the personal and next generation cars like electric–combustion hybrids
organizational buyers are becoming more and more (Delafrooz, Taleghani, & Nouri, 2014).
aware of environmental sustainability and showing In that respect are several tools being used for
interest to conserve it (Elham Rahbar, 2011). the green marketing purpose. Knowledge about these
In 1976, a workshop organized by the AMA green marketing tools (e.g. eco-label, eco-brand,
(American Marketing Association) namely "A Guide to environmental advertisement) will help to establish an
Ecological Marketing", tried to gather a bunch of easier perception toward green product attributes and
specialists to appraise the impact of marketing on the features. Moreover, it'll help to consumers to identify and
environment (Kinoti, 2011). At this workshop, green purchase the green products. Use of such policy tools
marketing was defined as "the study of the positive and influences the consumer perception and conduct in
negative aspects of marketing activities on pollution, purchasing green products (Elham Rahbar, 2011).
energy depletion, and non-energy resource depletion" In accordance with Hartmann and Ibáñez
(Delafrooz, Taleghani, & Nouri, 2014). (2006), usually, the intensity level of cognitive
© 2017
1 Global Journals Inc. (US)
Influence of Green Marketing on Consumer Behavior: A Realistic Study on Bangladesh
persuasion strategies is the main focus of green environmental awareness among consumer population
marketing. Besides, they think that the reason behind and changing consumer perception toward green
consumers, increasing high involvement in choosing marketing practices and products as well. Thus, the
environmentally friendly products is the growing study also has following objectives to fulfill –
environmental awareness among people. 1. To study the level of awareness of Bangladeshi
But the Ginsberg and Bloom (2004) claims that consumers about green products and patterns.
none of the marketing tools is fit for all types of firms. 2. To measure the green values of the customers.
They rather suggested that, based on different market, 3. To study the perception of Bangladeshi consumers
different strategies should be traced, as the toward green products and marketing practices.
environmental awareness varies in degree from markets 4. To study the preferences of Bangladeshi consumers
to markets. about green products and marketing practices.
So, it's clear that an assessment of the 5. To recognize the factors that influence the customer
consumers' perception and awareness of the green percussion to buy green products.
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concept would be useful to the marketers, although, this 6. To explain the issues and challenges of green
study highlights the consumer perception toward the
Year
marketing practices in Bangladesh.
green marketing.
Understanding of this theme “Consumer IV. Methodology 11
perception and purchase behavior” is highly significant,
The study tried to explore the consumer's
consumers and the environment, both are keenly
Global Journal of Management and Business Research ( E ) Volume XVII Issue I Version I
perception of green marketing and measure the
interrelated. This is because, at some point, consumers
correlation between consumer purchase behavior and
and environment can influence each other directly
green marketing tools, consumer attitude and the green
or/and indirectly. Consequently, changes in any relevant
concept of marketing, and consumer purchase intention
element in the costs or savings can hit the economy
and green marketing. The study applied an analytical
(Delafrooz, Taleghani, & Nouri, 2014).
model of investigation, a questionnaire survey and
According to Philip Kotler (2013), the final
regression analysis to guide the study productively. As
consumer behavior during the moment of purchasing
an applied research, the study aims at solving existing
something is the consumer purchasing behavior. He
problems within the organization and individuals to
identified four sorts of purchase behavior: normal,
make them more concerned about the concept of
complex, variety seeking and tension reducing purchase
"Going Green”.
behavior.
Though different assumptions regarding Both secondary and primary data have been
consumer behavior suggest that they take compiled and analyzed with a view to examining the
environmental facts quite seriously while purchasing, but research objectives. The first phase of the study was an
in their activities, it is usually cannot be caught or extensive search for relevant scholars' articles, books,
noticed (Delafrooz, Taleghani, & Nouri, 2014). reports to set the boundary of the subject area. The
Perception of consumer behavior or study was extended out in different cities of Bangladesh.
"Knowing/understanding customers" is not so easy as The primary data was gathered via a questionnaire
we may appear to be perceived. Most often, consumers prepared by the authors with an extensive support from
express their needs and expectations on the basis of different studies and researches. The questionnaire
situations and the fashion of expressing varies rapidly. comprises 4 sections respectively demographic data,
Sometimes, consumers are not yet aware of their inner knowledge base data, behavioral data, and questions
motivations or the factors that influencing that can regarding the indicators scale which sub-sectioned by
change their opinion at the moment of purchasing. But Consumer Attitude, Purchase Intention, and Purchase
it is really important for the marketers to investigate and Behavior. The first section includes the demographic
survey their consumer needs very subjectively to data like name, age, annual income etc. The second
understand their perception, needs, expectations and section of the questionnaire includes the knowledge
finally their behavior during purchase (Kotler P. , 2012). base data of the respondent to understand the
knowledge regarding the green concept. In the third
III. Aims & Objectives section, three points Likert scale (3, 2, 1) technique was
used to quantify the variables. This information includes
This study aims at looking into consumer the perception of the respondent toward the green
perception toward green values created by the green concept (e.g. the green marketing tools, green products
marketing efforts by the promoters and its impact on and general conduct of the respondent). Finally, the
their purchasing behavior of eco-friendly products. fourth section includes a seven-point Likert scale (7, 6,
Moreover, Green marketing evolution is 5, 4, 3, 2, 1) technique to measure the variables. Each
spreading around Bangladeshi market rapidly and the proposition in this section/ sub-section is numbered as
concept has had a radical influence on increasing a variable and most of the propositions are devised in a
positive scale. In the empirical analysis of all positive analyzing the average level of perception of the
propositions, if respondent gets on an average a high respondents. The multiple methods are used to
mark (above 3) i.e. towards agreement means that the explaining the variation in the dependent variables with
respondents are in right perspectives.The statistical respect to the given a set of independent variables.
methods used in the analysis were: Means, Coefficient On the basis of the reviewed literature, following
of the Variables, Standard Deviations and Regression hypotheses were generated to be verified by statistical
methods. Means and Standard Deviation is used to analysis.
Table 1: List of Hypothesis
SL H0 / Null Hypothesis H1 / Alternative Hypothesis
01 Consumers have a positive perception toward green Consumers have a negative or neutral perception toward
products. green products.
02 Consumer attitudes are positively influenced by the green Consumer attitudes are negatively or neutrally influenced
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V. Findings & Analysis of Study who were willing to share their perception and contribute
Global Journal of Management and Business Research ( E ) Volume XVII Issue I Version I
Considering the normality of data used for the Neither of the variables shows any moderate level of
purpose of this study we have conducted a Pearson correlation. But when significance level is .01, there is a
correlation analysis assuming the data set used are weak correlation that we presented on the above table 3
normal. Here we can see that when significance level is with one *.
.1, most of the variables have a strong correlation.
Table 5: Regression Analysis
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Here, R2 = .600, F= 187.326, df = 377, No of IV =3.
Year
Regression Analysis helps to examine the factors, situational and demographic factors,
impact of one variable on another variable and check physiological factors.
the impact of independent variables on the dependent 13
The second and third hypotheses examined the
variables. The value of R is taken from the table of influence of green marketing activities over the
Global Journal of Management and Business Research ( E ) Volume XVII Issue I Version I
model summary, and value of df and F is taken from consumer attitude and purchase intention, shows that
ANOVA test table while data analyzed by the SPSS tool. the green marketing activities have no significant
influence over these factors alone. suggested
VI. Discussion of Findings Recommendations for the facts is to continue the
The correlation test shows that there is a weak environmental awareness among the consumers, for
negative correlation with the green behavioral base and instance, what are the negative impacts of other
other three variables consumer attitude, purchase products on the environment and how to keep the
intention and purchase behavior. This suggests that environment safe. Moreover, marketers should keep in
green marketing activities have no influence on the mind that they need to provide a continuous awareness
consumers’ behavior. But consumer attitude has a of products that is environment-friendly.
strong positive correlation between the purchase The green concept is a new color of thinking to
intention and purchase behavior of consumers. This the consumers of Bangladesh. To establish the concept
suggests that consumer is highly influenced by the in consumers’ mind compared with other
attitude they have on the product and what they intend environmentally harmful products, it’ll require training,
to purchase or what they need at the point of purchase knowledge, cultural integration and new technologies.
decision. Again, there is strong positive correlation Moreover, the economic factors should be availed to the
exists between the consumer purchase intention and massive consumer population to erase the costly green
purchase behavior, suggesting that consumers are products. Moreover, government officials, producers,
highly influenced by the intention, explaining that and knowledgeable people should assist in the matter
purchase behavior actually depends on the situational to help each other to create a healthy green future. In
factors. addition, green products should come up with more
innovative advertising, diverse range products, and
The regression analysis shows that the
lower prices to be fully appreciated.
consumer attitude towards the product is the main
influencing factor in consumer purchase decision The fourth hypothesis examined the influence of
making (beta value = .508). Purchase intention of the green marketing activities over the consumers purchase
consumer is next (beta value = .340), and the green behavior, revealing that consumers are more influenced
behavioral base shows the least influence over the by the attitude they have on the product and the
forecasting purchasing behavior. intention they have regarding the products.
From the survey on the samples regarding
The first hypothesis examined the consumer's
green marketing and its product, the study come out
attitude toward the green products, revealed that
with four major factors influencing them on buying/using
consumers have a mixed understanding of the green
green products, i.e.,
concept. As a new dimension of environmental
perseverance, the concept is new to the Bangladeshi
consumers. Even the consumers are aware of the
environmental degradation, they lack the knowledge of
green products and most importantly some factors are
considerably affecting the green concept like economic
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Global Journal of Management and Business Research ( E ) Volume XVII Issue I Version I
© 2017
1 Global Journals Inc. (US)
Influence of Green Marketing on Consumer Behavior: A Realistic Study on Bangladesh
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