A STUDY ON INFLUENCE OF GREEN PRODUCTS ON CONSUMER BUYING BEHAVIOR WITH REFERENCE TO COLLEGE STUDENTS IN COIMBATORE CITY
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1 A STUDY ON INFLUENCE OF GREEN PRODUCTS ON CONSUMER BUYING BEHAVIOR WITH REFERENCE TO COLLEGE STUDENTS IN COIMBATORE CITY *Mr. PURINAT YAMAKANITH Ph.D, Research Scholar, School of Commerce, CMS College of Science & Commerce, Coimbatore , Tamilnadu **Dr. N. RAVICHANDRAN Associate Professor & The Director, School of Commerce, CMS College of Science & Commerce, Coimbatore , Tamilnadu ABSTRACT There has been a rapid growth with the increase in the consumption across the world. Today s consumers are becoming concerned about how their purchase affects the environment. The purpose of this study is to understand the factors influencing the consumer behavior while purchasing of green products. Convenience sampling method was used and the primary data was collected through a structured questionnaire from 200 college students in Coimbatore city. In pursuance of the study s stated objective, the formulated hypotheses were subjected to ANOVA analyzes. The finding of the study reveals that there is significant relationship between demographic profiles and factors which influence consumer s buying behavior for green products. Green marketers can therefore understand, identify and design of green marketing mix strategies to appeal young people be aware of environmental issues and consequently decide to purchase for green products. Keywords: Consumer buying behavior, green consumer, green products, environmental friendly Introduction: Nowadays people give precedence to green products even young people due to it prevents contributions to air, water and land pollution. Making a truly green product keeps both environmental and human safety in mind. Consumers are becoming sensitive in their environmental attitudes, preferences, and purchase and desire of consumers to purchase green products and services is rising. Many are more aware of environmental issues and consequently choose products and do not damage the environment over less environmentally friendly products, even if they cost more. Firms today are faced with consumers who are environmentally conscious when making a purchase. 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 green product eco-friendly or environmentally friendly as a component of their value proposition. Business 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 behavior will allow business to acquire more market applicable approach to sustain in the competitive market. Review of literature: In the following review of existing studies on the related topic provide us a base to go ahead in the pursuit of understanding consumer buying behavior of green products by College students. The study entitled The influence of green products on 45
2 consumer buying behavior with reference to college students in Coimbatore city explores how today the attitude of the consumers of green products is increasing. Many green products producers and marketers are competing to give the best quality of the products in terms of environmental and sustainable issues. A literature review goes beyond the search for information and includes the identification and articulation of relationships between the literature and your field of research. While the form of the literature review may vary with different types of studies and various researchers are as discussed below: J. B. Fonseca and F. C. A. Santos (2011) this paper presents results of an investigation into the development of environmentally friendly products: case study in a Germany company producer of dishwashers. Concepts of eco-design and life cycle analysis are shown in the literature review. The case study uses these concepts to investigate the dishwashers produced by the German multinational company called Bosch und Siemens Hausgeräte. Historical quantitative analysis of water and electrical energy consumption from the first versions of dishwashers until the most modern ones, as well as the systems which were implemented and improved in order to achieve the targets linked to the reduction of water and electrical energy consumption, are presented. Bing Zhu (2012) Chinese advertising industry has dramatically developed as consumers concerns over the impact of environmental degradation on their lives and interests increase, which results in a significant sale of green products. This study aims to explore how green advertising affect consumers purchase intention of green products. The data were collected from 313 consumers in Shanghai, China. The research findings reveal that credibility of claim (β=0.847, p<0.001) and consumer attitude toward green advertising (β=0.65 p<0.05) significantly influence consumer purchase intention of green products. Dr. D. Suresh Kumar and Dr. Rajesh Sharma (2013) over the years, demand for green products is increasing rapidly and customers are gradually becoming more aware about these products. Green products are very good for health and customers have started to realize the importance of these products. This paper aims to address the consumers perception and attitude towards green products. For analyzing the behavior and attitude of the customers, Sikar district of Rajasthan state has been selected. Paper attempts to analyze the various responsible factors which are significant about the selection of the green products and these eco-friendly products have been able to attract the customers in the recent past. Objective of the study: 1. To know the awareness of green products among consumers in Coimbatore City. 2. To examine the factors that influence consumers buying behavior for green products. Significance of the study: When the consumers buy recycled content and other environmentally friendly products, they help reduce waste by creating a market for manufactures of the products. They also help create jobs in business that handle and use recycle materials. Requesting more sustainable products in the market place tells manufactures that consumers care about the way products are made and to know about the factors that influence consumers to purchase for green products. The most important is how manufactures provide information and the green products that their customers are looking for and motivating them become green consumers. Methodology: This study primarily uses descriptive research design: The questionnaire survey method is used to collect demographic data about respondents behavior, beliefs, opinions, interests and the like and the data thus generated is organized, analyzed and interpreted. A purposive sample of college students in Coimbatore city were selected for eliciting the study data. 200 students were selected from five colleges in Coimbatore city. A detailed list of all the colleges providing education for bachelor degree, master degree and other level in Coimbatore city was obtained from university sources. The primary data for this study was collected through questionnaire and secondary data was collected from internet and well research publication. In this study convenience sampling method is employed. The choice of Coimbatore city is highest revenue-yielding district after the state s capital city as well as Coimbatore city has a diversified economy, Coimbatore is an important and renowned manufacturing centre, producing specialized products intrinsic to the region. In order to gather data from the respondents and questionnaire were used as research tool. The Questionnaire which is the primary tool of data collection is framed taking into consideration the primary objectives of the study. With the help of few sample questions a brief questionnaire was distributed to all the selected colleges in order to identify the users of green products. Framework of hypothesis: It's a statistical procedure used to support (accept) or not support (reject) the hypothesis based on sample is the only source of current information about the population. Because our sample is a probability sample and therefore representative of the population, the sample results are used to determine whether or not the hypothesis about the population parameter has been supported. A hypothesis has been framed for this study and it is: There is no significant relationship between gender of respondents and frequency of buying green products. 46
3 RESULT AND DISCUSSION: Table No.1 Gender of respondents Gender Total no. of respondents Percentage (%) Male Female The table No.1 reveals gender information of the respondents. 60% of college students are male and 40% of them are female. Table No.2 Age of respondents Age in years Total no. of respondents Percentage (%) & above 4 2 The table No.2 gives age information of the respondents. 62% of college students belong to the age group of 18-21, 36% of them belong to the age group of 22-25, and the rest 2% of them belong to the age group of 26& above. Table No.3 Level of education of respondents Level of education Total no. of respondents Percentage (%) Undergraduate Postgraduate Other 4 2 Table No.3 shows education information of the respondents. 66% of college students fall under undergraduate, 32% of the respondents fall under postgraduate and the rest 2% of the respondents fall under master of philosophy. Table No.4 Annual income of the family of respondents Annual income (Rs.) Total no. of respondents Percentage (%) Below & above Table No.4 reveals annual income of the family information of the respondents. 46.5% of college students are under income of the family group of Rs , 39.5% of the respondents are under of Rs , 11.5% of the respondents are under of Rs & above and the rest 2.5 % of the respondents are under below Rs Table No.5 Green products can save the environment and harmless to human health Opinion Total no. of respondents Percentage (%) Yes No 12 6 Not always Table No.5 It is observed from the above table that 74% of the respondents said Yes that the green products can save the environment and harmless to human health, 20% of them said Not always that the green products can save the environment and harmless to human health and the rest 6% of them said No that the green products can save the environment and harmless to human health. 47
4 Table No.6 Frequency of buying green products Frequency No. of respondents Percentage (%) Several times a week Once a week Once a month Few times a year Table No.6 It is noted from the above table that 56% of the respondents had bought of green products once a month, 23.5% of them had bought of green products once a week, 19% of them had bought of green products few times a year and the rest 1.5% of them had bought of green products several times a week. Serial No. Table No.7 Factors that most influence respondent when they buy green products Influence factor Total no. of respondents Percentage (%) 1 Acceptable Price Design/Packaging Sales Promotion Advertising Popularity Brand Name Quality of the product Table No.7 It is noted from the above table that 34% of the respondents influenced by acceptable price factor when they buy green products, 27.5% of them influenced by quality of the product factor, 15% of them influenced by design/packaging factor, 12.5% of them influenced by advertising factor, 7% of them influenced by sales promotion factor, 3% of them influenced by popularity factor and the rest 1% of them influenced by brand name factor. Findings Table No.8 The relationship between gender of respondents and frequency of buying green products Frequency Gender Total Male Female Several times a week Once a week Once a month Few times a year Total ANOVA Source of Variation SS df MS F P-value F crit Rows Columns Error Total The table No.8 Two Way ANOVA shows the results that the calculated value of F > F critical. Therefore, we rejected the null hypothesis. Hence, there is significant relationship between gender of respondents and frequency of buying green products. The respondents of this study were collected from 200 college students from five colleges in Coimbatore city. The majority (60%) of the respondents are male, 62% of them belong to the age group of 18-21, 66% of them fall under undergraduate level, 46.5% of them are under income of the family group of Rs , 74% of the respondents said Yes that the green products can save the environment and harmless to human health, 56% of the respondents have bought of green products once a month, 34% of the respondents influenced by acceptable price factor when they buy green products and from the ANOVA test table, there is significant relationship between gender of respondents and frequency of buying green products. 48
5 Suggestions and Conclusion: Nowadays consumers have been in the search for ensuring their futures and sustaining their life in appropriate conditions as green consumers and aware of environmental issues. They have started to consider whether the products they buy is environment-friendly or not apart from price and quality features of the products. Green product is essential to save world from pollution. From the business point of view because a clever marketer is one who not only convinces the consumers, but also involves the consumers in the product. Green products should not be considered as just one more approach to marketing, but has to be pursued with much greater vigour. Therefore, green producers and green marketers need to know about green consumers needs and encourage customers to discuss their needs as well as motivate them by giving good information about green products and providing good quality of green products to satisfy their needs. REFERENCES: 1. Bing Zhu (2012), The Impact of Green Advertising on Consumer Purchase Intension of Green Products, SSRN Social Science Research Network, Proceedings of World Business and Economics Research Conference, October Blackwell R D, Miniard R D and Engel P W (2001), Consumer Behavior, New York, Harcourt College Publishers. 3. Dr. D. Suresh Kumar and Dr. Rajesh Sharma (2013), A Study on Consumers Perception and Attitude towards Green Products, International Journal of Advanced Research in Management and Social Sciences, Vol.4, No.2, April Hoyer W. D. & Maclnnis D. J. (2001), Consumer behavior, Boston: Houghton Miffin Inc., 11 (4) J. B. Fonseca and F. C. A. Santos (2011), Development of Environmentally Friendly Products: Case Study in a Germany Company Producer of Household Appliances, International workshop Advances in Cleaner Production Initiatives and Challenges for a Sustainable World, São Paulo Brazil May 18 th - 20 th Magnus Bostrom & Mikael Klintman (2008), Eco-Standards, Product Labelling and Green Consumerism, Palgrave Macmillan Publisher, P M. Meenakshi Saratha and Linda Mary Simon (2014), A study on customer satisfaction Level on green products with special reference to Coimbatore district, International Journal of Multidisciplinary Research and Development, Vol.2, No.3, August 2014, P Ms. Preeti Sehgal and Ms. Neha Singh (2010), A Study on Preference of Consumers on Eco-friendly Product with Reference to Chennai City, CBS E- Journal, Biz n Bytes, Vol.6, December
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