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International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X A STUDY ON THE AWARENESS OF GREEN MARKETING AMONG CUSTOMERS IN SOUTH BANGALORE * Karpagavalli.G Research Scholar, Bharathiar University, Coimbatore. (Assistant Professor, Management Department, T. John College, Bangalore) Dr.A.Ravi, Research Supervisor, Bharathiar University, Coimbatore. (Principal, RJS Institute of Management Studies, Koramangala, Bangalore) ABSTRACT The term Green Marketing is the buzz word used in industry which is used to describe business activities which attempt to reduce the negative effect of the products/services offered by the company to make it environmentally friendly. As society becomes more concerned with the natural environment, businesses have begun to modify their process in an attempt to address society’s new issues. Some businesses have been quick to accept the newer challenges or changes like environmental management, minimization of the waste align in with organizational activities. For a company to be successful in implementing green marketing strategy, it should not forget attitude of consumers towards green marketing. The outcome of this paper may trigger the minds of marketer to give a thought for adopting the suitable strategies which will give them a way to overcome major problems associated with regular marketing techniques and make a shift to green marketing. Eventually the marketers can save a lot on overhead costs and associated entities in the market. Keeping this thing in mind this paper is an attempt to understand awareness of consumers’ towards green marketing and green branding along with exploring the concept of green marketing. Keywords: Green marketing, Eco-Friendly products, Green brands, Green products INTRODUCTION: According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus green marketing in corporate a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not simple task where several meanings intersect and contradict each other; an example of this will be the existence of varying social, environmental and retail definitions attached to this term.OthersimilartermsusedareEnvironmentalMarketingandEcologicalMarketing. Thus" www.apjor.com Page 124 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X Green Marketing" refers to holistic marketing concept wherein the production, marketing consumption and disposal of products and services happening manner that is less detrimental to the environment with growing awareness about the implications of global Warming, non-biodegradable solid waste, harmful impact of pollutants etc., both marketers and consumers are becoming increasingly sensitive to the need for switch in to green products and services. While the shift to "green" may appear to be expensive in the short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the long run. An average green company can be described by using the models and experiences reported by John Ellington, Peter Knight and Julia Hailes in their book The Green Business Guide (Elkingtonetal. 1992) .Agree Company is based on its corporate vision that includes environmental concerns as the company’s functioning. This simply means that the company realizes the needs of the ecosystem with which it interacts. For example, any company wants ―to be a good company, having concern for the community and the environment‖. Green marketing might be a result of pragmatic policy, referring to the changes of preferences of the customers and/or to follow the mainstream development of the industry. However, there are companies, which are really centered on green values and try to realize the ideological world view in the agri business activities (e.g.the Body Shop, Benand Jerry’s, Tom’s of Main, Interface). REVIEW OF LITERATURE According to the authors like Ottaman,(1993)and KenPeattie,(1993)conventional marketing is out and green marketing is in. In the developed countries, the surge of environmental consciousness that followed Earth Day in 1990 washed over the market place rapidly. In poll after poll, consumers claim they are willing to change their buying habits– and even pay more for products–to protect the environment(Pearce,1990; Consumer Reports,1991;Bergerand Corbin,1992;Codington,1993;Davis,1993;McDougall,1993; Ottoman, 1993). Manufacturers got the message that the Marketing Intelligence Service (ConsumerReports,1991),which tracks new product introductions, reports that the percentage of new packaged products making some kind of green claim more than doubled between1989and1990,risingfrom4.5%to11.4%ofthetotal.Duringthesameyear,thenumberofgreenadvertiseme ntsappearing on television and in major print outlets more than quadrupled, according to an audit by the advertising agency J.Walter Thompson(Consumer Reports, 1991). Elkington(1994:93) defines green consumers one who avoids products that are likely to endanger the health of the consumer or others; cause significant damage to the environment during manufacture, use or disposal; consume a disproportionate amount of energy; cause unnecessary waste; use materials derived from threatened species or environments; involve unnecessary use of, or cruelty to animals; adversely affect other countries. According to the Joelmakeover (awriter, speaker and strategist on clean technology and green marketing),green marketing faces a lot of challenges because of lack of standards and public consensus to what constitutes "Green". According to Peattie(2001),the evolution of green marketing has three phases. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late1990sandearly 2000.Green marketing is a vital constituent of the holistic marketing concept. It is particularly applicable to businesses that are directly dependent on the physical environment; how then, should companies handle the dilemmas associated with green marketing? They must always keep in mind that consumers are unlikely to compromise on traditional product attributes, such as convenience, availability, price, quality and performance. It’s even more important to realize, however, that there is no single green-marketing strategy that is right for every company. It is suggested that companies should follow one of four strategies, depending on market and competitive conditions, from the relatively passive and silent "lean green" approach to the mor aggressive and visible" extreme green" approach- with "defensive green" and "shaded green" in between. Managers who understand these strategies and the underlying reasoning www.apjor.com Page 125 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X behind them will be better prepared to help their companies benefit from an environmentally friendly approach to marketing. OBJECTIVES OF THE STUDY: To study about Green Marketing. To analyze about customer awareness about green products and green marketing. To analyze companies involved in Green marketing. Future of green Marketing in India Researcher have used structured questionnaire and a five point balanced like rt scale for measuring consumer attitude towards green marketing and green branding. Primary data was collected from respondents of Bangalore city through a questionnaire designed for a sample of 100 respondents by using the mail survey method due to limitation of time factor. Random sampling method was adopted by the researcher and selected the samples from Bangalore region representing both the genders, different age groups, education level, marital status and monthly income. The data collected from the respondents are coded, tabulated and analyzed into logical statements using mean and percentage analysis. Secondary data was collected from the available literature, journals and web search wherever necessary. The Questionnaire method was chosen for its versatility speed and cost benefits. Due to shortage of time there searcher has used only descriptive statistical tool-Mean and percentage to arrive at findings and conclusion. DATA ANALYSIS Correlation between Demographic Variables and Consumer Behavior Although much research has been done on the demographic profiles of eco-friendly Consumers, findings are still relatively mixed with some demographic characteristics showing more consistent results than others. Four of the most common demographic variables employed in study of consumer behavior are: age group, gender, household income, and education. It is well established that the types of goods and services sought by individuals change as they age and pass through the various life cycle stages. Compared to their older counterparts, younger individuals are less committed to definite patterns and are more open to new perspectives and products (de Mooij, 2004), particularly those involving advanced technology. Income also strongly affects product choice, as higher-income consumers are better placed to purchase expensive, statusenhancing items (e.g., household appliances, consumer electronics, and luxury products; de Mooij, 2004). Higher education levels expose Individuals to different cultural perspectives and make them less likely to follow local behavioral norms and more global to act as consumers (Keillor et al., 2001). Lastly, the differential effect of gender is among the most robust findings in the management literature. Males and females differ on many aspects of consumer behavior, including shopping Patterns, information processing, judgment, responses to advertising, and the products they tend to buy (Cleveland et al., 2003). For the present research study; Independent sample ttest, Chi square test and ANOVA have been employed for the analysis of data. Analysis of Marketing Mix on Consumer Buying Behavior Bangalore being economically well developed city, has emerged as an education hub in India, there is nothing wrong in assuming that the city with considerably good literacy rate is well aware of the environmental degradation and its repercussions to the human race, thus the following hypothesis are developed for the study. H1: Environmental concern varies with age and income of respondents H2: There is no relationship between consumer’s attitude and purchase behavior of green products. H3: Consumers of south Bangalore city are well aware of environmental problems. www.apjor.com Page 126 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X The data was first presented in tabular and graphical form representing the different responses’ given by the consumers. Then analysis was done in four stages as follows: Stage I- Demographic profile of the respondents was tabulated in a self explanatory manner. Percentage analyses were performed to find out exact number of people giving response in similar manner. Demographic categories of age and income level were then analyzed for each dependent variable (knowledge, attitude, behavior, and lifestyle) to find out how people of one demographic sub-category show their concern toward environment. Stage II- As demographic variables are taken as independent, the dependency of other variables on demography was checked with the help of one way ANOVA (Analysis of Variance). ANOVA is a technique where the influence of one factor on another factor is checked. The researcher employed ANOVA for determining whether the responses of the sample depend on demographic variables or not. The results were in favor of demographics which mean that the responses given by the sample population was the outcome of sample belonging to different age, and income level. In other words, people belonging to different demographics show different concern about the environment. Stage III- At this stage the data was segregated on the basis of responses given to various questions about variables under consideration. Each question of attitude was checked with all purchase behavior and conservation behavior questions with the help of Chi square test. This is done to test whether there is a potential relationship between attitude and behavior (Purchase and conservation). Chi square test is a nonparametric test of statistical significance for bivariate tabular analysis. Typically, chi-square test indicates whether or not, two different samples are differed enough in some characteristic or aspect and let us know the degree of confidence we can have in accepting or rejecting the hypothesis. Stage IV- With the help of percentage analysis the whole sample was then divided into five major groups on the basis of their concern about the environment. This was done as per Roper’s green gauge73(1996) method. Roper had divided the US Population into 5 groups on the basis of the attitude, and behavior towards environmental, barriers to green living and environmental knowledge. In the study of consumer behavior, demographic characteristics play a vital role. It is being said that consumer attitude and behavior depends greatly on the demographic attributes they carry. Keeping in view the objective of finding out the relationship between demographic attributes and their respective environmental concerns, the present study took up one way ANOVA test. In the test quantitative demographic variables such as age and income level of the respondents were separately taken to see the relationship between demographics and environmental concern. Taking age as an independent variable and eco concern as dependent variables, the above table shows that, the calculated value of F is 15.77 (Aprox), which is more than the table value ie. 3.24 at 5% level with d.f. being v1=3 and v2=16. This could not have arisen because of chance but due to the difference in sample means. It proves the first part of the 1st hypothesis which states that ―Environmental concern varies with age and income of respondents‖. Thus it was concluded that the overall concern of consumers towards ecology, to a great extent is driven by the age level they belongs to, and the income level of the consumers. It is very important to mention here, that the age is negatively related to eco concern (age increases, eco concern decreases) Income level has positive relation with the eco concern. From the study it is evident that, even the self declared green consumers were not equipped or motivated enough to make decisions regarding the most significant issue for each purchase, and alter their purchase accordingly. In addition, they did not have the time for research, information interpretation and product www.apjor.com Page 127 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X search required for green purchasing. Our results showed that green consumers can use their buying power to make a difference, but at a high cost in terms of effort and time, which is a significant barrier. Analysis of Product Quality-Responses regarding quality of Eco-friendly Products Observation The quality of most eco-friendly FMCG products conforms to my expectations. Most eco-friendly fast moving consumer goods I buy wear out /exhaust too quickly Eco Friendly products are healthier than their conventional counterparts The quality of ecofriendly products I buy has remained same over the years. Mean Std.dev SE 3.1 1.2446 0.05 5 Ho 4.5 T-Stat 25.152 Dof 499 P 4.512 4.092 1.0591 0.04 7 4.5 8.613 499 4.67E 3.65 0.9483 0.04 2 4.5 20.04 499 2.72E 3.462 1.0443 0.04 6 4.5 22.224 499 7.08E Most of the respondents agreed that although eco-friendly products are less expensive to Society in long run (mean: 4.062.; Std Dev: 1.3645), they are overpriced in short run (mean: 3.586; Std Dev: 0.9488). The findings are tabulated after having used likert scale for measuring the awareness of consumers in South Bangalore towards green marketing and attitudes of consumers towards green marketing (Highest Rating is 5-StronglyAgreeand 1-StronglyDisagree) www.apjor.com Page 128 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X Table: The computed mean and percentage of respondents Sl Description(filled by Respondents– No Likersscale) 1 2 3 4 Mean Score Are you aware of green marketing? 4.52(5)consi dered the Believe in concept of green market 4.79(5) nexthigherval Iamawareofcompaniesgoing green? 4.09(4) ue) I knowabout the advantagesofgreen 4.52(5) productsinanorganization? 5 I knowabout the advantages of using green 4.19(4) products in home in this scenario? 6 Employees in any organization feel that their ? work schedule gets affected by implementing green concept 7 Green marketing conceptisexisted for long timeback butit isnot implementedby many companiesin Bangalore. 8 9 4.57(5) Companiesare reluctantinimplementing 4.09(4) green marketingconcept What is the main reason that makes you willing 4.58(5) to pay more for the ―green‖ products? 10 Which marketing element strongly influences 4.07(4) your buying behavior of green products? 11 Governmentshould take initiative in making 4.6(5) people to know about green products 12 Everyone is responsibleforsuccessful green marketingconcept 4.67(5) After having understood the concept of green marketing and this paper triggers a thought for marketer’s about the impact of significant changes in green marketing for effective utilization of resources and the final product which company develops shall be less detrimental to the environment which can be concluded from the following paragraphs related to awareness of consumer towards green marketing. Consumer’s awareness towards green marketing is high Consumers have expressed strong concerns about the concept of green marketing and companies going green. Apart from this, consumers are well aware of the fact that the productivity of companies can be drastically improved. People are aware of green environment because it is less detrimental to the environment and companies can look into implementation of this concept for betterment of business. We www.apjor.com Page 129 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X can infer that the role of government plays a vital role in green marketing. Some consumers neither a green or disagree for the fact that green marketing is just an old concept. As far as initiation of green marketing is concerned everyone are responsible for green marketing. If we analyze the facts pertaining to green marketing the significant results are positive at one end. other end, consumers say that it is difficult for all the companies to implement green marketing. Environmental education refers to organized efforts to teach about how natural environments function and particularly how human beings can manage their behavior and ecosystems inorder to live sustainably (Wikipedia, 2009). Consumer’s attitude towards green marketing is high As far as green branding is concerned the consumers strongly expressed that they are familiar with green products and shown interest to know more about green products. In India, at present situation is concerned the transition from regular marketing to green brand is difficult. Most of the consumers realize the importance of green branding which means that there is a positive sign for betterment of the environment as well as for business. This exploration in to green marketing or eco-friendly marketing is a positive sign for transition from India to a greener and greater India. Some important suggestions as given by respondents to improve the natural environment are listed below • Using eco-friendly products • Regular vehicular pollution check ups • Avoid using plastic • Gather and spread environmental information • Tree plantation • Enforcement of law • Water harvesting • Proper treatment and disposal of industrial and household waste • Improve public transport system • NGO should come forward for environmental protection • Recycling scrap CONCLUSION From the study it can be concluded that Green Marketing concepts and products can be easily accepted by the people in south Bangalore. Even they are willing to pay more for the green products. People are ready to accept but the entrepreneurs and the Government has to take initiative for promoting and implementing the concept of green marketing and green products. www.apjor.com Page 130 International Journal of World Research, Vol: I Issue XX, August 2015, Print ISSN: 2347-937X REFERENCES J.A Ottman,. et al, "Avoiding Green Marketing Myopia", Environment, Vol-48, June-2006 www.greenmarketing.net/stratergic.html www.epa.qld.gov.au/sustainable_ industries www.greenpeace.org/international www.google.com http://www.iocl.com/AboutUs/environment%28GFA%29.aspx Meredith, B. H. (2002). One more time—what is marketing? NZ Business, 16(9). Ottman, J., & Miller, D. S. (1999). Green Marketing. Electronic Green Journal. Peattie, K. (1999). Shifting to a Greener Paradigm. In Charter, M., & Polonsky, M. (Eds.), Greener marketing, A Global Perspective on Greening Marketing practice. Greenleaf Publishing. Pickett, M., Kangun, N., & Grove, J. (1995). An examination of the conserving consumer: Implications for public policy formation in promoting conservation behavior. Environmental marketing Strategies, practice, theory and research. Haworth Press. Polonsky, M. J., & Rosenberger III, P. J. (2000). Re-evaluating Green Marketing—A Sophisticated Strategic Marketing Approach. AMA Winter Educators’ Conference Proceedings, 11. www.apjor.com Page 131