Green Marketing Essay Example

degradation of the environment is an ongoing issue that deeply worries developed countries and has also prompted awareness in developing countries regarding the importance of the green movement for preserving nature. However, despite being extremely mindful of the environment, there are instances when individuals fail to take pro-environmental actions. In 2006, the Vermont Sustainable Jobs Fund (VASS) released a report on forest certification that highlights a distinction between consumer concern for the environment and their actual buying behavior when it comes to certified wood.

The objective of this study is to explore consumer attitudes towards green practices and the factors influencing pro-environmental behavior. This paper aims to analyze how demographic and social factors affect consumer "green purchasing behavior" and determine if heightened environmental awareness positively impacts consumer buying habits. Past studies have shown a notable connection between the "theory of altruism" and "pro-environmental consumer behavior".

Green Consumerism has implications on the purchasing behavior of consumers in the Indian market.

• What is pro-environmental behavior and how does attitude of consumer and culture have effect on pro-environmental behavior?

It is important to understand that pro-environmental behaviors are distinct from general consumer behaviors related to purchases. General consumer behavior is influenced by the perceived benefits and costs that only concern the individual consumer involved in the behavior.

The reason for pro-environmental behavior is the customer's attitude towards the environment. This is because customers who are conscious about ecological issues think that the current environmental conditions are deteriorating and present major challenges to global security. Conversely, if customers do not perceive these environmental concerns, they are unlikely to participate in environmentally friendly actions as it does

not offer immediate personal benefits or satisfaction. Nevertheless, such behavior does have a positive impact on creating a cleaner environment in the future, benefiting society as a whole (Mac Carry and Serum, 2001; Kim and Choc', 2005).

Recently, it has become clear that the worsening environmental conditions are increasingly endangering the health and well-being of consumers worldwide. Consequently, consumers are becoming more environmentally conscious and integrating this awareness into their attitudes, preferences, and buying decisions (Cigarillos, 2009). They now have a greater understanding of the seriousness of environmental decline, resulting in a heightened ecological consciousness and a preference for supporting businesses that prioritize eco-friendly practices (Roberts, 1996; Kilowatts et al., 1999; Larch et al., 2001).

The factors that influence consumer behavior in terms of being pro-environment are collectivism, environmental concern, and perceived consumer effectiveness (PACE). Madam and Judi (2008) state that the most influential factors affecting consumers' pro-environmental behavior include their perception of organic food, awareness of government action and support, beliefs about product safety and friendliness to the environment, availability of the product, and product information. In the upcoming discussion, we will analyze each of these factors separately.

Environmental knowledge

"Environmental knowledge" refers to a comprehensive understanding of facts, concepts, and connections related to the natural environment and its major ecosystems. This includes knowledge about the environment, crucial relationships leading to environmental aspects or impacts, an understanding of "whole systems," and recognition of collective responsibilities required for sustainable development. Based on the preceding dialogue, we can formulate hypotheses.

• HI: Environmental knowledge has a significant positive effect on the consumers' green Purchasing behavior. )

Stern, Dietz, and Koala (1993) conducted a

study which found that individuals who fulfill their personal needs are more likely to engage in ecological behavior. This is because they have more resources such as time, money, and energy that they can dedicate to larger social and pro-environmental initiatives. The study also investigated the influence of social altruism (concern for others' well-being) and aspheric altruism (concern for non-human elements of the environment) on the intention to purchase environmentally friendly products.

Based on the previous discussion, hypotheses can be formed, such as: H2O:

According to Columns and Agnomen, there is a positive connection between altruism and consumers' green purchasing behavior. Environmental awareness comprises cognitive and affective perception-based elements. Pain (2006) found that individuals who are more conscious of societal and environmental issues usually partake in pro-social and pro-environmental activities. If a consumer is environmentally mindful, they are willing to pay a higher price for eco-friendly goods. Bowmen's (2007) study conducted in India showed that 50% of the participants expressed their willingness to pay an extra 10% for products that are environmentally friendly.

According to the research findings, Chinese consumers are not as inclined as consumers from other countries to invest extra money in green products. Despite their admiration for nature, Chant (1999) found that Chinese consumers are only willing to pay an additional 4 percent for eco-friendly products. In contrast, American consumers demonstrated a willingness to pay up to 6.6 percent more for the identical product. Consequently, based on this analysis, we can propose the following hypothesis:

• HA: Environmental awareness is positively associated with consumers' green purchasing Behavior. )

According to Crosby, Gill and Taylor (1981), environmental concern is a significant

attitude that involves the preservation of the environment. Attitudes can be characterized as long-lasting positive or negative feelings towards individuals, objects, or issues. It also encompasses the knowledge one possesses about a specific individual, object, or issue (In-house, 1991). In the field of social psychology, attitudes have been widely recognized as influential indicators of behavior, behavioral intentions, and factors that explain differences in individual behavior (Kitchen & Reeling, 2000).

According to numerous studies, both factors are considered significant indicators of consumer pro-environmental behavior. Schultz and Sleazy (2000) suggest that attitudes towards environmental concern are linked to individuals' self-concept and their perception of their involvement in the natural environment. Mansards and Babbage (1998) highlight the importance of consumers' knowledge, attitudes, values, and practices in determining the quality of the environment.

The most consistent explanatory factor in predicting consumers' willingness to pay for green products is attitudes (Conga et al. , 2006). Attitudes represent what consumers like and dislike (Blackwell et al. , 2006) and often play a role in consumers' product purchasing decisions based on their environmental attitudes (Ireland,1993; Sweeper ND Cornwall, 1991). For instance, an individual's level of concern regarding environmental issues has been found to predict environmentally conscious behavior such as cycling behavior (Arbitrator and Align, 1975; Keller and Wood, Donation and Fitzgerald, 1992; Kerr, 1990; Ottoman, 1993; Schoolhouse, 1992). Other studies also examine specific areas such as green cosmetics and toiletries (Brother and Mac Donald, 1992) and recycled packaging (Barr, Ford and Gill, 2003). Paltrier and Huntley (1998) argue that environmental concern can significantly influence individuals to change behavioral practices in an attempt to mitigate the problem.

Numerous studies have shown that

environmental concern greatly influences the decision to purchase organic and green food (e.g. Grunter, 1993). Kim and Choc (2005) discovered a direct correlation between environmental concern and green buying behavior. Additionally, several studies have concentrated on examining the connection between environmental attitudes and environmentally related actions. Therefore, based on the aforementioned discussion, it can be concluded that the hypothesis is supported:

• HA: Environmental consciousness and attitude is related to consumer's buying behavior for CEO-friendly product.

Iris et al. (2006) suggest that media has a significant impact on environmental marketing by offering valuable information to consumers, which helps in increasing their environmental awareness and consciousness. Consequently, this heightened concern for the environment can motivate consumers to engage in environmentally-friendly actions. Furthermore, the family is acknowledged as an influential factor in shaping individuals' perspectives and principles concerning the environment.

Gryphon (2006) conducted research on environmental consciousness, which aids in comprehending the impact of family on environmentally conscious behavior. Based on the previous discussion, the formation of hypotheses is possible, including:

• HA: Environmental consciousness is determined by external determinants such Media, family.

Various psychological studies have highlighted the significance of demographic and cryptographic elements, including age, gender, education, income, and political orientation. These factors play a crucial role in comprehending an individual's awareness of their surroundings and their care for both the natural and social environments.

Various authors have suggested that there are differences in environmental awareness and concern among demographic groups. Young, well-educated individuals typically have greater environmental awareness compared to older, less-educated individuals. Similarly, women with higher income and education levels are more likely to show stronger concern for the

environment (Broody et al., 2004). Furthermore, a study by Erasure in 2001 confirmed that gender influences environmental concern and consciousness, with women generally demonstrating higher levels of environmental awareness than men.

The Health of the Planet Survey (Dunlap, Gallup and Gallup, 1993, Dunlap and Meting, 995) gathered data from citizens in economically and geographically diverse nations. Factors like population and lower education level were considered as main determinants. Some studies suggested a moderate relationship between environmental attitude and ecological behavior (e.g. Exalted and Lehman, 1993 and Smith et. Al, 1994), while others found a weak relationship (e.g. Berger & Carbon, 1992). Backfire et al. (2010) and Cornelius et al. (2008) also found that environmental attitude significantly impacts consumer environmental/green purchasing behavior in their studies. These studies form the basis for forming hypotheses.

• HA: Environmental concern and attitude positively influence consumers' green purchasing behavior.

Perceived Consumer Effectiveness (PACE) is the belief individuals have in their actions making a difference in problem-solving (Ellen, Winner and Cob-Walgreen, 1991).

Kim and Choc (2005) suggested that people who strongly believe their environmentally conscious actions will lead to positive outcomes are more inclined to engage in such behaviors to address their concerns for the environment. Based on the previous discussion, one can form hypotheses.

• HA: Perceived Consumer Effectiveness (PACE) has a positive association with consumers' green purchasing behavior.

Collectivism and individualistic orientations impact different aspects of social behavior.

McCarty and Serum (1994, 2001) discovered that collectivism has a positive impact on consumer beliefs about recycling and their recycling behavior. Therefore, individuals who embrace collectivism are more inclined to engage in recycling behaviors due to their

cooperative nature, willingness to assist others, and focus on communal goals rather than personal ones. Consequently, Kim and Choc (2005) concluded that collectivism influences consumers' green purchasing behavior. In conclusion, based on the preceding discussion, it can be proven that collectivism significantly affects consumers' green purchasing behavior.

• HA: Collectivism has positive influence on consumers' green purchasing behavior.

The lack of availability and price information for environmentally directed products is a challenge for consumers (Brown and Whalers, 1998). Studies have shown that the limited availability of green and organic food in stores discourages consumer purchases (Byrne et. Al, 1991; Davies, 1995). Mariner et al. (1997) argue that consumers' environmental consciousness is hindered by the inadequate availability and marketing of environmentally friendly products. The perceived environmental characteristics of a product, influenced by branding and immunization strategies, play a significant role in consumers' perception and purchasing behavior.

According to Gang and James (2007), companies face the challenge of effectively promoting the environmental and economic advantages of their products to encourage pro-environmental behavior in consumers. They recommend that organizations focus on long-term economic benefits and use creative means to communicate their unique selling points compared to competitors (GIG-Du Gang and Jeffrey James, 2007).

Only individuals who prioritize the environment and feel responsible for their natural surroundings will buy products, regardless of their aesthetic appeal, qualities, and price (Bobble and Administrations). Occasionally, companies falsely portray themselves as environmentally friendly. In this discussion, we will explore the concept of "Green Washing," which involves presenting 'brown' products as environmentally friendly through vague, incomplete, unsubstantiated, and inaccurate environmental claims or with minimal (if any) benefits. This tactic is employed by

numerous firms. A survey was conducted on Australian products to examine this practice.

A study conducted in November and January 2009 found that only five entities out of those surveyed did not engage in any form of greenwashing. In a similar survey carried out in North America during the same period, it was discovered that 98 percent of the 2,219 products examined were involved in greenwashing. Greenwashing has significant consequences, including undermining consumer confidence and trust in genuine "green marketing" practices. Greenwashing refers to making claims about the environmental impact of goods, services, or a company's own practices like using renewable energy and implementing waste and pollution reduction measures internally. Consequently, greenwashing negatively affects consumer purchasing behavior.

The Indian market.

Consumer green purchasing behavior drives marketers to prioritize the production and distribution of environmentally friendly products. These products are manufactured using eco-friendly technology and have no negative impact on the environment. Marketers also give importance to implementing a green supply chain when distributing these products. The green supply chain involves responsibly extracting and utilizing natural resources throughout the entire distribution process (Sacristans, 2007).

Marketers are placing more importance on creating products that possess characteristics like being grown, recyclable, reusable, and biodegradable. They emphasize the use of natural ingredients and the inclusion of recycled materials and non-toxic chemicals. Furthermore, they guarantee that the product does not cause harm or pollution to the environment and is not tested on animals. They also choose packaging options that are CEO-friendly, such as containers that can be reused and refilled. To ensure these environmentally friendly products are accessible to consumers, marketers employ Green supply chain management.

The escalating state

of the environment, including factors like raw material depletion, overflowing waste sites, and increasing pollution levels, is driving the growing significance of supply chain management (SCM). However, SCM goes beyond environmental concerns; it also proves to be an effective business strategy that enhances profitability. The SCM "system" encompasses Purchasing and In-bound Logistics (materials management), Production, Outbound Logistics (physical distribution & Marketing), and Reverse Logistics.

Many manufacturing supply chain enterprises have considered or initiated certain SCM practices like investment recovery and CEO-design. CEO-design is seen as an essential aspect of the supply chain as it concentrates on enhancing product and process technology to reduce environmental expenses. However, the effectiveness of CEO-design relies on internal cross-functional collaboration among departments within a company, as well as cooperation with external partners throughout the supply chain. Unfortunately, investment recovery and the development of recycled material markets in India have been largely overlooked.

The manufacturing product market is still working towards establishing a viable used parts market. However, India has introduced a regulated system that mandates manufacturers to consider environmental impacts throughout the entire life cycle. This encourages organizations to emphasize supply chain management practices and close the manufacturing supply chain loop.

SCM practices have become a systematic approach in the Indian manufacturing industry to ensure the economic and environmental sustainability of firms.

Case Study

Best Green IT Project:

The State Bank of India has implemented the Green IT@SBI project, which involves the use of CEO and power-friendly equipment in its 10,000 new Tams. This initiative has not only resulted in cost savings and the earning of carbon credits for the banking giant but has

also set a positive example for others to emulate. Additionally, the bank has also joined a green service called the "Green Channel Counter".

SIB offers various services such as paperless banking, no deposit slip, no withdrawal form, no checks, and no money transaction form. All these transactions are conducted through SIB shopping & ATM cards. Additionally, the State Bank of India has implemented a wind energy project to decrease emissions. They have become the first Indian bank to utilize wind energy from a 5-megawatt wind farm developed by Solon Energy. This wind farm, located in Combaters, employs 10 Solon wind turbines with a capacity of 1.5 MM each. The wind farm spans across three states - Tamil Nadia (4 MM wind capacity), Maharajah's (9 MM wind capacity), and Gujarat (1 MM wind capacity). This initiative is part of the State Bank of India's green banking program, aiming to reduce its carbon footprint and promote energy-efficient processes for its clients.

Indian Oil is prepared to achieve the goal of providing EURO-III compliant fuels to all areas of the country by 2010. Additionally, major cities will upgrade to Euro-IV compliant fuels by that time.

Indian Oil has invested approximately RSI. 7,000 crore in green fuel projects at its refineries. Currently, ongoing projects make up an additional RSI. 5,000 crore. The Mature Refinery has commissioned a Motor Spirit Quality Improvement Unit, and similar units are being established at three more refineries. Furthermore, all seven Indian Oil refineries have implemented facilities to improve diesel quality. Moreover, there are numerous other green fuel projects either being implemented or in the planning stages. Meanwhile, the R&D Centre of Indian Oil is

actively involved in developing environmentally friendly biodegradable lube formulations for CEOs.

The Centre is certified under 'SO-14000:1996 for environment management systems.

Lemon Tree Hotel, present in various locations across India from Surgeon to Bengal, has implemented a range of CEO-friendly processes and initiatives that focus on energy and water conservation, responsible waste management, as well as measures to control water, noise, and environmental pollution. The hotel is committed to ensuring a healthy and happy earth through these green initiatives.