AN EMPIRICAL STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS THE GREEN MARKETING

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1 AN EMPIRICAL STUDY ON CONSUMER BUYING BEHAVIOR TOWARDS THE GREEN MARKETING Deepika K N Abstract: Green marketing is one of the best tactics which is used by the organization to build or to create a brand image in the minds of the customer. It is one of the marketing technique. Green marketing first came into existence in the year 1980 which is defined as marketing of products that are presumed to be environmentally friendly in short called as eco-friendly which incorporates several activities such as redefining the product quality, product modification, changes in the production process, technological advancements, Improvement in the packing, advertisement strategies & also increasing the awareness on the compliance marketing amongst industries. The promotional activities and product quality should form as a differentiation in terms of providing brand image and builds the core competency among the existing companies this should intern create a change in the buying behavior and consumer attitude towards perceiving a brand. This will lead to strong base towards developing a strong brand image and also serves as a major contributor for growth of the firm. INTRODUCTION (Green Marketing) Green marketing first came into existence in the year 1980 which is defined as marketing of products that are presumed to be environmentally friendly in short called as eco-friendly which incorporates several activities such as redefining the product quality, product modification, changes in the production process, technological advancements, Improvement in the packing, advertisement strategies & also increasing the awareness on the compliance marketing amongst industries. The promotional activities and product quality should form as a differentiation in terms of providing brand image and builds the core competency among the existing companies this should intern create a change in the buying 84

2 behavior and consumer attitude towards perceiving a brand. This will lead to strong base towards developing a strong brand image and also serves as a major contributor for growth of the firm STATEMENT OF THE PROBLEM The concept of Go Green has made a significant impact on the social life of the people (E.g. Production of oxygen by trees at a free cost- A post in the Face book) created a revolution in the mindset of the people about the pollution. Concept introduced by Government of India such as SWACHH BHARATH also made a significant impact in the mindset of the people. Cleaning the Ganga River is one of the drastic steps taken by the Central government proved once again that the it is focusing more on environmental friendly, Having said all these it has become mandatory for the upcoming companies to implement the concept of Green Marketing to their products because of the change in the consumers approach in terms of environmental issues & to gain a sustainable competitive advantage with change of gaining many satisfied rather Delighted customers The study mainly focuses on how companies should build its brand to create sustainable competitive advantage through effective implementation of Green Marketing. Consumer behavior Introduction The aim of marketing is to meet and satisfied target consumers needs and wants better than competitors. Marketers always looking for emerging customer trends that suggest new marketing opportunities. Consumer behavior is the study of how individual, groups and organization select by, use and dispose of goods and services, ideas or experiences to satisfies their needs and wants. Studying consumers provides clues for improving or introducing products and services, setting prices, devising channels, crafting messages and developing other marketing activities. Consumer buying decision process 1. Problem/ need recognition 2. Pre purchase information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behavior RESEARCH TOPIC An Empirical study on consumer buying behavior towards Green marketing: OBJECTIVES OF THE STUDY 1. To assess the concept of green marketing in Soaps and Detergents Sector. 2. To study the challenges and prospects companies are facing in green marketing advertising 3. To study the green marketing strategies adopted by the various companies along with the success factors 4. How green marketing advertisement affect the buying behavior of the customer 5. To assess the impact of Green Marketing on the building the Brand 85

3 as a promotion and product differentiation tool in order to facilitate the company to have a revenues in the long run RESEARCH QUESTION The research which is being carried out through a structured questionnaire which is designed by resembling the need and scope of which the optimum responses can be obtained Literature reviews shows that most of the companies which have implemented Green marketing have made a bench mark in view of getting revenues however none of the study has examined the impact of Green marketing strategies for the development of brand especially in the product sector. Hence the study is undertaken REVIEW OF LITERATURE Green marketing a study of consumers buying behavior in relation to green products by Wong FuiYeng α & Rashad Yazdanifard published in Global Journal of Management and Business Research ( E ) Volume XV Issue V Version I talks about the research conducted in the area of consumers buying and states that the Green marketing strategies can be used Green marketing in India: An Overview by Prof. Jaya Tiwari published in the IOSR Journal of Business and Management talks about the scope of green marketing in terms of business growth especially towards the contributing sectors of India. The paper tries to bring out the salient features of Green marketing through which one can achieve a standalone core competency in the long run A thorough examination and review of literature is done on the green marketing and advertising strategies. Most of the research is done on green marketing, Importance of importance, Benefits of green marketing. However, very less emphasis is given in the field effectiveness of training in Facility Management firms. By conducting a research on this mentioned subject area, there lies a huge scope of improving and standardizing advertising in firms products which leads to company growth and sector success. RESEARCH DESIGN A well structured Questionnaire will be used to collect the primary data. For designing an effective questionnaire for the study, it is necessary to test the validity of the questionnaire. This will be done by a pilot study consisting of personal visits to consumers in Bangalore for this study developing a draft questionnaire and getting 86

4 opinions. The questionnaire will be finalized based on the comments and suggestion of respondents. Primary data will be collected by using the questionnaire from sector firms. Secondary data will be collected from reputed journals, Magazines, website, Newspapers Data Collection and Analysis Methods Factor analysis is conducted to chart down the parameters which influences the buying behavior of the customers Questionnaire is tested using suitable statistical tools & also formal pilot study would be conducted to eliminate the possible hurdles Multiple regression analysis, Correlation, & ANOVA is used to analyze the data Hypothesis is also tested using the same statistical techniques MEASURING TOOL/ INSTRUMENT/ QUESTIONNAIRE Measuring Tool/ Instrument / Questionnaire A well-structured questionnaire will be used to collect the primary data. For designing an effective questionnaire for the study, it is necessary to test the validity of the questionnaire. This will be done by a pilot study consisting of personal visits to selected consumers and getting opinions and the questionnaire will be finalized based on the comments and suggestion of respondents. ANTICIPATED OUTCOME/ CONTRIBUTION TO KNOWLEDGE Incorporation of Green Marketing calls for specific parameters which are defined in the course of research. The research tries to bring the affect of green marketing on the strategic decision making of the company in the long run It will inculcate the awareness level among the stake holders who intern can implement the Green Marketing strategies for building the product differentiation platform and growth The Research will help the prospective companies who are interested in building up its image which intern have a impact on prospective development of the country 120% 100% 80% 60% 40% 20% 0% DATA ANALYSIS AND INTREPRETATION Data analysis and interpretation: 1. Green marketing awareness Green marketing awareness 97% Yes 3% No 87

5 As per the above survey 97% of the customers are known about the eco-friendly products. And most of the customers are known about companies which are producing green products. 2. Promotional strategies to create awareness about green marketing As per the survey 97% of the customers are ready to pay for green products because they are satisfied with the quality and environmental concern. 4. Information regarding Eco-Friendly Products Information regarding Eco-Friendly Products Promotional strategies to create awareness about green marketing 100% 0% 100% 77% 50% 3% 20% 0% 0% Television Magazines Newspapers Yes No Others From the survey it is clearly indicating that most of the customers are aware about the eco friendly through television. 3. Number of Customers willing to pay on Eco-Friendly product Number of Customers willing to pay on Eco- From the survey it is indicating that all the customers are getting proper information about the products while purchasing the products. 5. Reasons that make customers to pay more for the Green products REASONS THAT MAKE CUSTOMERS TO PAY MORE FOR THE GREEN PRODUCTS No Yes 3% 97% 7% 63% 10% 20% 0% 50% 100% 150% 88

6 As per the survey it is showing that all the customers are ready to purchase green products. Because it is enhancing quality of life, environmental protection, increase products value, high level of satisfaction. From the surveyed data it is cleared that 63% of the customers are purchasing green products based on the product quality and quantity and also they are attractive towards the packaging and promotional strategies. 6. Reasons that make customers not to pay more for the Green products Reasons that make customers not to pay more for the Green products I AM READY TO PAY EXTRA PRODUCER SHOULD PAY PRODUCERS ONLY CLAIM, CANNOT SEE THE BENEFIT 0% 17% 20% 11% 15% 3% 20% 10% 7% 34% 0% 10% 20% 30% 40% From the surveyed data it is cleared that sometimes customers are feels that they are paying more on green products, some customers mentioning that these are the tactics the companies are using to promote the products and clear the stocks. 7. Promotional Strategy Promotional Strategy 63% Product Package Place Promotion FINDINGS Almost all the customers are aware about the green products. Companies are using different type of promotional strategies. Customers are ready to pay even though the organization is increase the price. Company is providing proper information about the products. How to use and dispose of the products. As per the survey the customers are willing to pay for the green products. Because its satisfying the customer s needs and wants. All 4p s of marketing mix is satisfying the customer s needs and wants. CONCLUSION Green marketing or green products are protecting the environment as well as educating the society to how to protect the environment. SWACHH BHARATH also made a significant impact in the mindset of the people. Green products and marketing companies are educating the people about the environment. 89

7 BIBLIOGRAPHY BOOK REFERED GREEM MARKETING CONCEPT o By Robert Dahlstrom CONSUMER BEHAVIOUR o By Debra L. Stephens WEBSITES REFERED Green marketing By: -Wikipedia, the free encyclopedia consumer behavior By: -Wikipedia, the free encyclopedia Author s Profile: Deepika K N Assistant Professor Bangalore Institute of Management Studies. Bangalore. deepikaraniachar@gmail.com 90