Green Marketing and It`s Effect on Customer's Behavior

ABSTRACT:

Today’s, Environmental scenario are concerned with environmental issues like global warming, disposal of waste, climate change, and alarming pollution and which are influenced by our routine life. The government has taken various interventions to promote green marketing practice in corporate. But still corporate hesitate to do so, due to their increase in cost of production and which will reduce their return of profit. The study shows the green marketing practices which enable good return of profit and positive affects of customer.

The company who successful in practice of green marketing in their products in reduction cost control like Mc Donald, Tuna manufactures, Xerox, Indian Railways, WIPRO, Infosys.

The green marketing denotes “Three R’s of Environmentalism” which are to Reduce consumption, waste and pollution, Reuse what we have and Recycle everything we can, Apart from this green marketing also stresses on Conserving energy, water and other natural resources, Compliance with all environmental regulations, Striving to buy, sell and use ecologically friendly products, Educate employees, customers and other businesses.

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Key words: Green marketing, strategy, Costumer satisfaction

INTRODUCTION:

Green marketing is the marketing of goods and services to bring environmental awareness to the consumers. Companies started to use the strategy in making their products and services towards green marketing, such as methods of producing, packing and distribution.The strategy of green marketing consists of all activities which are designed to produce and developthe idea to satisfy human needs or wants,satisfaction of consumers’ needs and wants occurs, which minimize the environmental impact.

Green marketing companies intends to develop the idea by promoting environmental products by mixing the traditional marketing to bring the products which are environmental friendly. This type of strategy enable the development ofsustainable new products to the market and new product line in the market.

• The manufacturing is done in a sustainable method
• Avoiding toxic or ozone-depleting substances in products
• The produced should be reused and recycled from it.
• More renewable materials used for production.
• Reduction of packing materials
• The product should be recycled and reused in eco-friendly manner

Green marketing strategy used by various companies:

• Digital tickets by Indian Railways have allowed its customers to carry PNR no. of E-Tickets on theirlaptop and mobiles.
• Mc Donald’s replaced its clam shell packing with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion
• Tuna manufactures modifies their fishing techniques because of the increased concern over driftnet fishing, and the resulting death of dolphins.
• Xerox introduced a high quality recycled photocopier paper in attempt to satisfy the demands of firms for less harmful products to the environment.
• Banks develops Eco friendly equipment in new ATM for power saving and earn carbon credit .India’s largest banking giant SBI is also entered into green services known as “Green channel counter”. By providing many services like ; paper less banking ,no deposit slip, no withdrawal form, no money transactions form all these transaction are done through SBI shopping & ATM cards.
• Forest & Environment Ministry of India has ordered to retail outlets like BigBazar,More,D-Mart etc that they could provide polythene carry bags to customers only if customers are ready for pay for it
• Leading Paint Company that has a broad customer base in India. Through their Green resolution, the company seeks to protect the environment by producing better products. Berger Paints , kansaiNerolac these companies started removing hazardous heavy metals like lead , mercury ,chromium, arsenic can have adverse effects on humans.

While ensuring the quality of products with ISO mark, now there is an increasing emphasis on marking goods that are environmental sustainable such products have “Ecomark” or ISO 1400 certification.

State of the problem

The resources are limited and human wants are unlimited. Over the exploitation of resources, global warming, greenhouse gas emission, pollution, soil erosion, deforestation and energy crisis in the world today are posing sever threat to nature and human life. So it may reflect in consumer’s pre-purchase, purchase and post-purchase behavior. Therefore, the research made an attempt whether the increasing awareness and literacy rate has been transformed into the attitudes of customers towards the responsibility of green marketing

Objectives of the Study

• To find the behavioral changes in consumers towards environmental issue.
• To find out the significant parameters of green marketing.

Research Methodology

The research is partially descriptive and partially analytical. The study was conducted among 250 consumers based on Judgmental Sample technique in Puducherry.A questionnaire with rating scale (Likert-scale) was used in this research. At the time of identifying sample, extreme care was taken to get a logical representation of various elements of demographic profile. The data gathered were evaluated by entering them into Microsoft Excel spreadsheet and used SPSS software for analysis.

Analysis

The questionnaire of the study comprised of questions to cover the cross-section areas of thebehavioral changes in consumerstowards Green marketing purchase of product.

It was attempted to uncover the factors underlying the respondents’ attitudes towards green marketing. Eighteen potential variables were identified and were presented for factor analysis.

The KMO value is above .5 means it shows the sufficient data for factor analysis. The Bartlett’s test of Sphericacity for the appropriateness of factor analysis is satisfactory, as the Chi-square value is calculated as 1292.425 at a degree of freedom 153. Since the estimated value of Chi-square is very high and the result is significant. In the factor analysis 18 variables are decreased under five factors.

Binary Regression Application on the significant Determinants of Green Marketing

Nine Variables have been identified to examine their impact on the buying decision of only those Products which protect the Human and Environment (PPHE). It needs to explain the binary dependent variable in terms of metric independent variables. The opinion of respondents on to purchase only products which protect human and environment (PPHE) investigated dichotomously. That is, if the presence of the attitudes of consumers to buy products that protect the human as well as environment has been coded as “I” and if it is not in that parameter, then the responses have been coded as “0”. The nine variables identified as follows:

1. GMHQ = I prefer green merchandise which are high quality for environment
2. WGAGM = I take useful time for watching advertisement which supports green marketing
3. PCRR = I buy products in which package can be reused or recycled.
4. ECM = Environmental certification of product is mandatory
5. PAER = It is important to be promoted alternative energy resources like geothermal energy, wind energy, solar energy, hydropower, etc.
6. AUP= Possible to avoid the habit of using plastic
7. WBMG = willing to buy more for green products
8. PGP = the procurable of green products has to be increased.
9. EPPA = Excessive packing of products have to be avoided