A Study on Consumer Attitudes towards Green Fast Moving Consumer Goods (FMCG) (With Special Reference to Tiruchirapalli Town)

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1 Volume-6, Issue-4, July-August 2016 International Journal of Engineering and Management Research Page Number: A Study on Consumer Attitudes towards Green Fast Moving Consumer Goods (FMCG) (With Special Reference to Tiruchirapalli Town) Dr. T.Unnamalai Assistant Professor, Department of Commerce, BDU College, Kurumbalur, Perambalur, INDIA ABSTRACT In this paper we discussed about the Tiruchirapalli district. Which is the secured second place among the India cities in Clean City project. Even though the awareness and the usage of Green among the people is very low. But majority of them are having consciousness about the eco friendly environment and try to save earth from pollution. In this paper Keywords--- Consumer, Industries, GDP I. INTRODUCTION Fast Moving Consumer Goods industries are considerably large sector in our Indian economy. This is the fourth largest sector in our economy and its market share is $13.1 billion. It nearly represents 2.5% of the country s GDP and it grows at an average of 11% a year, in the last five years the annual growth accelerated to 17%. These industries also provide wide range of employment opportunity about more than three million people in downstream activities. Due to this reason there is a stiff competition among these companies and as a result of this the companies are investing a huge amount of money as their investment to gain their market share. In order to gain market share companies are following a lot of marketing activities and they are ready to produce their products according to the taste and preferences of the consumers. Health Environmental Consciousness among our consumers is gaining momentum and they are interested to incorporate environmentally- friendly products into their lives due to environmental degradation. Although the market for green and environmentally-friendly products is still infant stage in our country, this is expected to change. Consumer concern about the environmental issues has been increased steadily all over the world for the past two decades and the awareness about the eco friendly (green products) has been gaining importance among the Indian consumers also. The companies are started to adopt the green marketing for products in their activities as a part of social responsibility and trying to reach their consumers with their green products and green messages. Green products are those products that will not pollute the earth, products can be recycled or conserved products with natural ingredients, products content under approved chemical. This study tries to analyze the attitudes of consumers towards the environmental friendly products of the consumers those who are residing at Tiruchirapalli town with in the radius of 5 km. around the Rockfor temple. The study seeks to answer basic questions about the Tiruchirapalli consumers personal characteristics that influences eco friendly consumption. Chi square test is used to test the hypothesis and found that there is a relationship between the personal characters and their attitude to purchase the green products which are not harmful to the society and the consumers themselves. The data have been collected from 250 consumers at convenient random technique. 380 Copyright Vandana Publications. All Rights Reserved. II. IMPORTANCE OF THE STUDY Production and consumption of goods and services are the most influence factors of environmental pollution and Indian consumers environmental concern is showing an increasing trend. Indian consumers seem to have a lot of confidence on green products, those which are harmless to environment, when compared to their counterparts in China, Canada and USA. According to a survey released on Thursday by DuPont, majority of Indian consumers are also familiar with green products, have confidence that such products are good for environment and feel that bio-based ingredients enhance desirability of a product. According to the survey, Indian consumer confidence on green products better for the environment (85 per cent) is higher than other countries surveyed by DuPont in previous years. Previous studies

2 showed China with 70 per cent confidence, Canada with 65 per cent and the United States with 60 per cent. DuPont survey has revealed that Indian consumers are increasingly becoming environmentally conscious and prefer sustainable products. (Sources: Consumer attitudes and awareness about the green products are the most important guiding factors to purchase the green products. This study brings out the attitude of the consumers about the green products in Tiruchirapalli town. Tiruchirapalli district is center part of Tamilnadu and it can be easily accessible by road, air and train from various parts of Tamilnadu and India. The main objective of the study is to know the level of awareness and attitude about the green products and its impact on their purchasing behavior. III. STATEMENT OF THE PROBLEM The green products are gradually getting awareness among the consumers among the world wide in order to take part in the societal cause and want to join in the movement of eco friendly environment or health environment. Due to this main reason the researcher is trying to know the awareness and the attitude to purchase the green products among the consumers in Tiruchirapalli town. IV. OBJECTIVES OF THE STUDY The main aim of the study is to find out whether the personal characters of the consumers that influences green product consumption. The study will also try to shed light on consumer s attitude, awareness and satisfaction level of the consumers. The other objectives of the study are 1) To know the consumer attitude towards Green. 2) To know the awareness level of consumers about the green 3) To know the factors influencing the purchase of Green FMCG Products 4) To know the awareness level and attitude of consumers towards green marketing 5) To offer some suggestion for betterment of environment. V. METHODOLOGY OF THE STUDY Both primary data secondary data have been collected for the study. Primary data are collected from the 250 consumers from Tiruchirapalli town. The sample consumers are selected using convenient random sampling method. The period of the study is May to July 2016(three months duration). The secondary data have been collected from books, journals and websites. Chi square test is used to know the relationship between the personal characters and the level of awareness and the attitude of the consumers. VI. LIMITATION OF THE STUDY The followings are the limitations of the study. The primary data collected only for three month period of May, June and July There are more than 23 lakh people living in Trichirapalli district. But only 250 people were selected as sample for the study. The samples were selected only from Trichirapalli town not from rural area. Due to cost constrain the data and the area has to be restricted. A convenient random sampling technique has been used for collecting the data. The data have been collected to understand the attitude and awareness level of the consumers about the green. The study is not for a specific product. Due to these reasons the results are not generalizes and the results may be vary depends upon the place where the consumers are residing. The sample size and the area are restricted. So, it is difficult to determine whether it can be extended to a large population of this region. Personal bias of respondents while answering the questions may have skewed the results slightly. VII. HYPOTHESES OF THE STUDY There is no relationship between the gender of the consumer and consumer attitudes between There is no relationship between the income of the consumer and consumer attitudes between There is no relationship between the age of the consumer and consumer attitudes between There is no relationship between Consumer attitudes such as usage is the status symbol in the society, do not create any harm to society, health, create any pollution, prefer by consumer near future, availability, can be easily identify, costlier one and availability of the products and frequency of purchase of the products. 381 Copyright Vandana Publications. All Rights Reserved.

3 VIII. PROFILE OF TIRUCHIRAPALLI DISTRICT For the purpose of the study Tiruchirapalli district is selected. The Tiruchirapalli economy is the fourth largest in the State. The district located in the central region of the State is well connected by rail, road and airways. Tiruchirappalli is situated on the banks of the river Cauvery. It abounds in history. Once the citadel of the Cholas, this strategic city was under the reign of the descendants of the Pandiyas and Vijayanagar. Tiruchirappalli as it is today was much too benevolent under the rule of the Nayaks of Madurai. Apart from the Rockfort with its historicity and spiritual significance, Tiruchirappalli has popular educational institutions established in the second half of 18th century by the Christian missionaries. The total population of the district as per 2001 census was lakh of which lakh were male and lakh were females. Almost equal amount of females are in the district. In this district there are 2 Universities, more than 30 Engineering colleges, 1 Medical College, 1 agricultural college and nearly 30 Arts and Science Colleges and more than 20 Polytechnic colleges, Para medical colleges and Teacher Training Colleges. Nearly 28 colleges are offering MBA programmes. Students from other parts of the Country and other nation are pursuing their graduation, post graduation and engaged in research activities. It is not only industrial area but also famous for the educational institutions. The main reason for selecting the district is population of this district consist equal number of male and female members. Due to number of educational institutions students from various parts of the district, State and from all over the part of the country. This study deals with the analysis attitudes towards the environmental friendly products of the 250 consumers those who are residing at Tiruchirapalli town with in the radius of 5 km. around the Rockfor temple. IX. REVIEW OF THE LITERATURE McDaniel, S.W. & Rylander, D.H. Strategic Green Marketing (1993) discussed that Green marketing is taking shape as one of the key business strategies of the future. The increasing environmental consciousness makes it incumbent on consumer marketers not just to respond to, but to lead the way in, environmental programs. Consumer marketers should recognize a product's environmental implications, analyze the changing consumer and political attitudes while recognizing the role that companies can play in protecting the environment. Kilbourne, W.E. Green Marketing: A Theoretical Perspective (1998) discussed that the failure of green marketing to move beyond the limitations of the prevailing paradigm. While there are nascent macro developments in marketing that might lead to a truly green marketing considering sustainability, holistic thought, and the limitations of the prevailing paradigm, they remain thus far on the periphery of the discipline. Polonsky, Rosenberger, & Ottman,J Developing : Learning from Stakeholders (1998). discussed the research which focused on US and Australian markets' perceptions of stakeholders' potential to influence the green new product development (NPD) process and what strategies can be used to involve stakeholders in this process. The findings suggest that marketers believe some stakeholders with "high" influencing abilities should be involved in the green NPD process, although it appears that in practice, firms use very basic methods to include these stakeholders. Peattie, K. in his article titled Golden Goose or Wild Goose? The Hunt for the Green Consumer (2001). Business Strategy and the Environment analyses that research about the identity and nature of the green consumer has been the central character in the development of green marketing, as businesses attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs, and to develop market offerings that meet these needs Ottman, J.A. (2004).in his article titled Removing the Barriers for Green Market concluded that businessmen should remove barriers and create some new customers for business. Customers should feel empowered. The more the people believe that they as one individual or working in concert with all other consumers of a product can make a difference, the greater the likelihood that they will buy greener product. W.M.C.B. Wanninayake & Pradeep Randiwela, Consumer Attractiveness about Green FMCG Products - an Empirical study (2008) the purpose of study was to investigate the consumer attitudes and perceptions towards eco- friendly products in FMCG sector and their willingness to pay on green products. This study was based on both primary and secondary data. The primary data were collected from the sample survey that was conducted in the three districts in western province such as Colombo, Kalutara, and Gampaha. 160 respondents were selected for the survey and respondents were asked to answer the prepared questionnaire. The questionnaire was designed to obtain the consumers attitudes and perception regarding eco-friendly under four value added areas such as product designing, packaging, place and promotion that lead towards the motivation of consumption. The secondary data were collected from relevant journals, books and other published data. The study revealed that the green products have substantial awareness among Sri Lankan customers and they are willing to pay something more on green products. The majority of customers considered that package is most important element of such 382 Copyright Vandana Publications. All Rights Reserved.

4 products. The researchers have recommended some marketing strategies to meet changing mind set of customers towards the green products. Ramanakumar K. P. V. & Manojkrishnan C.G, Consumer Attitude Towards Of FMCG Sector: An Empirical Study (2012), The current rapid growth in the economy and the patterns of consumer s consumption and behavior worldwide are the main cause of environmental deterioration. The shortage of natural resource, which seriously affects human beings existence and development, environment protection has become the world wide focus. The growing social and regulatory concerns for the environment lead an increasing number of customers to consider green issues as a major source of strategic change. Rising awareness of global environment and social problems has forced companies to recognize these demands in their activities. Now, industries are increasingly being required to meet social and environmental specifications in the market because of rising customer pressures. Even though it is increased ecoawareness of customers during past few decades, there are some barriers to the diffusions of more ecologically oriented consumption and production styles. Therefore companies are increasingly recognizing the importance of green marketing concepts. Green marketing is the need of the hour when we are seeing environmental degradation every single day. Sudhalakshmi.K& Chinnadorai. K.M, Awareness Level of Consumers towards Green FMCG Products with Special Reference to Coimbatore District (2014) In recent days, environmental issues have received a great deal of discussion in the field of marketing. When the society becomes more concerned with the natural environment, businessmen have begun to modify their behavior to address the society s new concern. With the growing awareness about the implication of global warming, non-bio degradable solid waste, harmful impact of pollutants etc, both marketer and consumers are switching to eco-friendly products and many companies have accepted their responsibility not to harm the environment and not to waste the natural resources. The research study took place in Coimbatore district of Tamil Nadu. A questionnaire is designed in order to find out the awareness level of consumers towards green FMCG products in order that 100 respondents were taken for the study. Going green has become the new success mantra and is being discussed by people from all walks of life. The above study indicates that the consumers of Coimbatore district of Tamilnadu are aware about the ecofriendly and they have more concern for eco-friendly products. The study shows they are identifying the eco-friendly through the eco-label and therefore it can be considered as a major tool for Environmental marketing. The government, the organization and the customers has to put hands together in creating awareness of eco-friendly products. Namita Rajput, Ruchika Kaura, Akanksha Khanna, A Study Of Consumers' Attitudes And Purchase Intentions Towards Environmental: Friendly Products In FMCG Sector In India 2014, Owing to the increased environmental concerns and concerted efforts of governmental and non-governmental organizations, the last decade has witnessed a spectacular boost in environmental awareness worldwide. The rapid economic growth in the past years and reckless consumption pattern are causing environmental deterioration and over utilization of natural resources worldwide. As consumers, people can reduce the impact of their purchase behaviour on environment and make a difference through their purchase decision. They have the power to create an opportunity for businesses that are using eco-friendly or environmental-friendly as an element of their value proposition. The aim of this study is to examine factors which influence the purchase of environmental friendly products in FMCG (Fast Moving Consumer Goods) sector in India and to exhibit the factors used by companies from the marketing-mix elements (the product, the price, the place and the promotion) that have an influence on green purchase attitudes and to examine if some factors are more important than others. Also, the others factors from the view point of the consumer like word of mouth and satisfaction will be examined. The study utilizes a quantitative research design which involves data collection based on a survey and the further analysis and testing of data using simple correlations, multiple regression and ANOVA. The results of the study indicate that satisfaction (through past experience), advertising/promotion and word of mouth influence the purchase decisions of consumers towards environmental-friendly products. The research would be of great help to the companies in FMCG sector as they get an idea about the best marketing strategies that they can adopt to understand the consumers' attitudes and purchase intentions towards environmental-friendly products. Also, these companies will have insight about how to profile environmental-friendly consumers in India and to develop effective messages that will functionally and emotionally appeal to their target customers. Maheswari. R, Sakthivel.G, Customer s attitude and awareness towards green products with reference to Coimbatore An analytical study (2015) Green Marketing is a newer issue in the eyes of marketers. Green Marketing is defined as the marketing of products that are presumed to be environmentally safe. There is a common perception among the general population that the term green marketing refers only to advertising or promoting products that possess environmental characteristics. People associate terms such as recyclable with green marketing. Green marketing, while incorporating these claims, is a broader concept. It includes not only altering the advertising of a product but also a variety of activities such as altering production processes, changing packaging and modifying products. 383 Copyright Vandana Publications. All Rights Reserved.

5 Polansky (1994) defines green marketing as: All activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. A 2001 survey conducted by Roper indicates that during the 1990 s approximately 2/3 of all consumers believed that environmental protection and economic development can go hand in hand. While perception is important, actual behavior is crucial to market success. This present study, primary objective is study about the customer s attitude and perception towards green marketing products with the reference to Coimbatore. The secondary objectives of this study are find out the level of awareness, measure the level of satisfaction in terms of quality, cost, availability and sources of green marketing products in Coimbatore district. X. RESEARCH GAP Majority of the study previously conducted deal with green marketing mix, green products, awareness level environmental issues and consumer behavior towards green products level. Some studies discussed that the demographic variables have the capacity to predict the attitude of ecological concerned consumers. The present study tries to observe the findings of the past studies or the present consumers attitude and level of awareness towards the green products in Tiruchirapalli district. XI. RESULTS AND DISCUSSION The findings of the primary data have been analyzed and given in the form tables. Table 1 shows the demographical profile of the consumers. TABLE - 1 DEMOGRAPHICAL PROFILE OF THE RESPONDENTS Particulars No. of the % of the respondent Respondent Age of the Respondent Up to 30 yrs yrs yrs yrs 10 4 Above 60 yrs 5 2 Gender of the Respondent Male Female Education level of the Respondent Up to 12th std Graduate PG Professional 13 5 Others Marital status of the Respondent Married Unmarried Occupation of the Respondent Student Housewife Employed Entrepreneur Retired persons 8 3 Total Monthly income of the Respondent No income Copyright Vandana Publications. All Rights Reserved.

6 Sources primary data Below Rs Above Family size of the Respondent Up to members 4-6 members members 14 6 Above members Table -2 Consumers' Attitude towards the Sl.No Particulars Highly Disagree Disagree Neutral Agree Highly Agree Total Mean Value Rank usage is the status symbol in the society do not create any harm to society prefer by consumer near future do not create any harm to the health do not create any pollution have reputation in the market can be easily identify Copyright Vandana Publications. All Rights Reserved.

7 8 concept is existed long time back. But it does not implemented by many companies costlier one available only at shopping malls only Sources Primary data Consumers are strongly believed that the Green are available in shopping malls and the products are costlier one. Green and eco friendly and it may not create any harm to environment and health. TABLE - 3 Awareness about the Sl.No Particulars No. of % of Respondent Respondent 1 Friends, colleges and Relatives News paper and Magazines Television and Radio Internet Departmental stores others sources 17 7 Sources primary data With the help of the above table, it is observes that the ward of mouth is the main media to know about Green Table -4 Types of Purchased per Month Sl.No Particulars No. of Respondent % of Respondent 1 Organic Food items like Vegetables, Rice, Fruits etc Cosmetics(soap, Shampoo ect) Toiletries Electricals others 17 6 Sources primary data 386 Copyright Vandana Publications. All Rights Reserved.

8 38% of the respondents are purchasing cosmetic products for their usage every month. Table - 5 Amount Spent for purchasing Per Month Sl.No Particulars No. of Respondent % of Respondent 1 Below above Sources primary data 32% of the respondents are spending nearly 1000 Rs per month for purchasing the green products. XII. TESTING OF HYPOTHESIS There is no relationship between the gender of the consumer and consumer attitudes between There is no relationship between the income of the consumer and consumer attitudes between There is no relationship between the age of the consumer and consumer attitudes between There is no relationship between Consumer attitudes such as usage is the status symbol in the society, do not create any harm to society, health, create any pollution, prefer by consumer near future, availability, can be easily identify, costlier one and availability of the products and frequency of purchase of the products. Factors Method Calculated value Table value Result Gender consumer attitudes between environmental degradation and usage of green FMCG products Rejected Age consumer attitudes between environmental degradation and usage of green FMCG products Accepted Income consumer attitudes between environmental degradation and usage of green FMCG products Accepted 387 Copyright Vandana Publications. All Rights Reserved.

9 Frequency of Purchases Consumer attitudes Accepted XIII. FINDINGS OF THE STUDY 52% of the respondents are from the age group of below (middle age group). The youngsters are more interested in purchasing the green products. 58% of the respondents are female. 38% of the respondent have been completed their graduation. 36% of the respondents are getting salary from the range of to Consumers are strongly believed that the Green are available in shopping malls and the products are costlier one. Green FMCG products and eco friendly and it may not create any harm to environment and health. It is observes that the ward of mouth is the main media to know about Green 38% of the respondents are purchasing eco friendly cosmetic products for their usage every month like fairness cream, hair dye, shapoo etc. 32% of the respondents are spending nearly 1000 Rs per month for purchasing the green products. There is a significant relationship between the gender and the awareness of the green products. There is no relationship between the income and the age of the consumers and their attitudes about the green products There is relationship between the attitude of the consumers and the purchasing pattern of the consumers. The attitude of the consumer about green in positively correlated with the purchasing pattern of the consumers. XIV. SUGGESTION The attitude of the consumers about the eco friendly environment has the positive impact to their behavior. The consumers are willing to buy the products to safe guard the environment and their health. Due to their health consciousness they are interested to purchase the Green FMCG products. So, the companies try to produce the goods not harm to the consumers and the society. Even though the products are made from organic inputs there are still some doubts about the ingredients of the products. So, the Government tries to fix standard norms for the products and certified that the goods are made from organic ingredients. Though consumers are willing to purchase green products, many business organizations still in behind the need of the eco friendly society. Companies may use agricultural products for their input to produce products like shampoo, face wash, hair dye; etc.it will save cost as well as environment. The government should create awareness about green products to protect the environment. The Tiruchirapalli district centrally located city and having educational background, there is only a small group of people of them are getting awareness about the green products. Still it is infant stage in Tiruchirapalli. Trichy Corporation creates awareness among the public not use of plastic. They try to use conservative energy for their daily requirement. Our Bharathidasan University is going to adapt solar energy for their use in near future. (Source The Hindu, ). So, the government.ngo, Private sectors and others should try to create awareness about the green products. XV. CONCLUSION Tiruchirapalli district is centrally located, having vast population and having educational background Green marketing, awareness about the green products and green environment still it is in infant stage in Tiruchirapalli. Tiruchirapalli district secured second place among the India cities in Clean City project. Even though the awareness and the usage of Green among the people is very low. But majority of them are having consciousness about the eco friendly environment and try to save earth from pollution. The Corporation is already creating campaign for avoiding plastic products. The corporation, University and other private companies try to use conservative energy. The steps could be taken by joint hands from the government, corporation, NGOs and Private companies. Meanwhile, if the entire Tiruchirapalli customers are became natural eco-friendly user, definitely Tiruchirapalli will become a one of the finest clean city in future. REFERENCES 388 Copyright Vandana Publications. All Rights Reserved.

10 [1] Kilbourne, W.E. (1998) Green Marketing: A Theoretical Perspective. Journal of Marketing Management. Volume 14, Issue 6, 1998 [2] Maheswari. R, Sakthivel.G, Customer s attitude and awareness towards green products with reference to Coimbatore An analytical study (2015) International Journal of Multidisciplinary Research and Development 2015; 2(1):pp [3] McDaniel, S.W. & Rylander, D.H. (1993) in the article titled Strategic Green Marketing The Journal of Consumer Marketing Vol. 10 Iss: 3, pp.4 10 [4] Namita Rajput, Ruchika Kaura, Akanksha Khanna, A Study Of Consumers' Attitudes And Purchase Intentions Towards Environmental: Friendly Products In FMCG Sector In India (2014) International Journal of Research in Commerce, It & Management Volume No. 4 Issue No. 04 April 2014 [5] Ottman, J.A. (2004) Removing the Barriers for Green Market Journal of Marketing, Vol. 24, No. 4, March 2009 [6] Peattie, K. (2001) in his article titled Golden Goose or Wild Goose? The Hunt for the Green Consumer, Business Strategy and the Environment Volume 10, Issue 4, pages , July/August 2001 [7] Polonsky, Rosenberger, & Ottman, J. (1998) Developing Green FMCG Products : Learning from Stakeholders. Asian Pacific Journal of Marketing and Logistics, vol. 63, April [8] Ramanakumar K. P. V. & Manojkrishnan C.G, Consumer Attitude Towards Of FMCG Sector: An Empirical Study Volume No. 3 (2012), Issue no. 2 February, 2012, pp [9] Sudhalakshmi.K& Chinnadorai. K.M Awareness Level of Consumers towards Green FMCG Products with Special Reference to Coimbatore District, IRJBM,Volume No VII, December 2014, Issue 13, pp 52-58,Global Wisdom Research Publications [10] Wanninayake W.M.C.B. & Pradeep Randiwela, Consumer Attractiveness about Green FMCG Products - an Empirical study (2008) Oxford Economic Conference Program,2008 [11] [12] [13] Copyright Vandana Publications. All Rights Reserved.