Green Marketing Consumer Behaviour Essay Example

the FMC sector. Environmental sustainability is an essential aspect that businesses cannot overlook, and they should acknowledge the competitive advantages and opportunities associated with green marketing, despite potential costs. Additionally, it is crucial for consumers to have comprehensive knowledge regarding the advantages of adopting green products.

The concept of green marketing encompasses various activities such as altering products, the production process, packaging, and advertising (Michael Jay Polygons, 1994). Nowadays, there is a focus on modifying packaging and products to reduce environmental pollution. However, there is ongoing debate among marketing philosophers about the appeal of green products to customers in developing countries like Sri Lanka. This has prompted researchers to investigate the effectiveness of green marketing strategies in Sri Lanka.

The study's main objective is to examine consumers' attraction to CEO-friendly products in the FMC sector and the effect it has on their purchasing decisions. It aims to assess consumers' attitudes and perceptions towards CEO-friendly FMC products across four value-added areas – product, package, place, and promotion – that drive consumption motivation.

Literature Review

In the late 1970s and early 1980s, green marketing became more popular, even though it had been previously discussed. The American Marketing Association (AMA) held a workshop in 1975 called "Ecological Marketing," which was known as iris.

The workshop led to the publication of "Ecological Marketing" (Henning and Skinner AAA), one of the earliest books on green marketing. Following this, Codington 1993 and Ottoman 1993 released several other books discussing this subject. Green marketing encompasses various activities such as product modifications, production process alterations, packaging changes, and advertising adjustments (Polygons, 1994). International evidence suggests that people are increasingly conscious of the

environment and adjusting their behavior accordingly.

The Environmental Protection Agency (2000) notes that there is a growing need for sustainable and socially responsible products and services. This behavior, also referred to as green consumerism or pro-social consumer behavior (Wiener and Dossier, 1991), can be viewed as a manifestation of socially conscious consumption (Anderson, 1988) or socially responsible consumer behavior (Anti, 1984). It highlights environmentalism (Schoolhouse, 1991) and can also be characterized as environmentally concerned consumption (Henning, 1976).

According to a classic definition (Henning, 1976), 'environmentally concerned consumers' are described. Business organizations are increasingly concerned about environmental issues because of factors such as environmental pressure, governmental pressure, competitive pressure, and cost/profit issues (Environmental protection agency -2000). Unfortunately, the majority of people associate green marketing solely with the promotion or advertising of products that have environmental characteristics (Polygons, 1994). Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are commonly associated by consumers with green marketing (Polygons, 1994). However, green marketing is a much broader concept than just these claims; it can be applied to consumer goods, industrial goods, and even services (Roberts and Bacon, 1997). Furthermore, there is a perception that green products are of lower quality or do not fulfill their environmental promises, which has hindered hopes for these products (Roberts and Bacon, 1997).

Despite green marketing not meeting the expectations of many managers and activists, there is some positive news. The increasing number of people who are willing to pay extra for environmentally friendly products, ranging from organic foods to energy-efficient appliances, serves as evidence. (Dugout's et al. 2004) Green or Environmental Marketing encompasses all activities aimed at generating and facilitating exchanges

that fulfill human needs and wants while considering the satisfaction of the environment. [Polygons Bibb, 2]

Although public opinion polls consistently indicate that consumers favor green products over less eco-friendly alternatives, other factors are rarely given equal consideration. Consumers prioritize traditional attributes such as convenience, availability, price, quality, and performance. It is crucial to acknowledge that there is no universal green marketing strategy applicable to all companies. While CEOs are becoming more aware of the significance of eco-friendly consumption, significant barriers still hinder the adoption of these consumption patterns. These barriers often stem from the complexity and motivation associated with green consumption. The utilization of green marketing strategies depends on five potential reasons.

Polygons Bibb) Organizations perceive environmental marketing as an opportunity to achieve their objectives [Keller 1987, Shearer 1990]. These organizations also believe in their moral obligation to be more socially responsible [Davis 1992, Keller 1987]. The government is pushing firms to be more responsible [Davis 1992].Competitors' environmental activities are putting pressure on firms to change their environmental marketing. Cost factors associated with waste disposal or reductions in material usage are forcing firms to modify their behavior [Davis 1992, Keller, K.L. (1993)]. Additionally, environmentally responsible behavior often involves difficult motivational conflicts due to the incompatibility of collective goals related to environmental protection and individual consumers' self-interest, resulting in the free-rider problem (Wiener and Dossier, 1991). Public policymakers will continue developing more efficient ways to regulate waste and pollution, while scientists will continue gathering information about environmental risks from various substances or practices.

As pricing structures evolve, they will provide manufacturers and entrepreneurs with more accurate information about the actual cost of commercial activities and

the potential benefits of innovative solutions to environmental issues. This definition encompasses the traditional elements of the marketing definition, which refer to all activities aimed at meeting human needs or desires (Schlemiels et al,1996).

The cultural, infrastructural, political, and economic circumstances in the markets and society often create significant limitations on green consumerism (McIntosh, A. 1991). Both individuals and industries are increasingly concerned and aware of the natural environment. In a 1992 study of 16 countries, all except Singapore had over 50% of consumers expressing environmental concerns (Ottoman 1993). A 1994 study in Australia revealed that 84.% of the participants believed that everyone had a responsibility to care for the environment. Furthermore, 80% of the participants stated that they had changed their behavior, including their purchasing habits, due to environmental reasons (EPA-NEWS 1994). Different consumers have different ideas about ecologically-oriented consumer behavior, resulting in various ways of expressing their motivation to be green consumers (Anti, 1984). These innovations are not solely aimed at reducing packaging waste (Brother, 1990). Food manufacturers also aim to improve food preservation to enhance taste and freshness. This would lower the cost of food while providing consumers with the convenience of pre-sliced ingredients and reducing waste from peelings (Brother, 1990).+

Assuming that firms marketing environmentally friendly products will have an advantage over those promoting non-environmentally responsible alternatives, many companies have made efforts to become more environmentally responsible in order to meet consumer needs (Sweeper and Cornwall, 1991). Government regulations aim to empower consumers to make informed decisions and encourage them to be more environmentally responsible. However, establishing policies that effectively address all environmental issues remains challenging (Sweeper and Cornwall, 1991). Therefore,

environmentally friendly consumption can be seen as a complex form of consumer behavior that involves intellectual, moral, and practical considerations.

Conceptualization

In the study, researchers have sought to establish a connection between several aspects of green marketing, including product, package, distribution, and promotion (independent variables), and the customer's decision to make a purchase (dependent variable). These relationships may be influenced by demographic factors, which are considered as intervening variables in the conceptual framework. The figure 01 illustrates the conceptual model. Based on literature and a pilot study conducted in Sir Lankan supermarkets, the researchers acknowledge that marketers can employ various strategies related to the independent variables to evaluate the efficacy of green marketing practices.

In order to obtain a comprehensive interpretation of the findings, it is important to analyze the correlation between two main variables and other variables that impact the dependent variable. The developed conceptual model illustrates their relationship (Figure 01).

Methodology

This study is essentially an empirical one and as such, great effort was made to collect primary data. To accomplish this, a thorough questionnaire was administered.

The research consisted of personal interviews, observations, and data collection via self-administered questionnaires. A convenience sample was utilized to obtain sufficient responses. The questionnaires comprised 24 questions, encompassing both closed-ended and open-ended inquiries. The researchers and trained field assistants were responsible for completing the questionnaires. All closed-ended constructs in the study were assessed using five-point Likert-type scales, with 1 indicating "completely disagree" and 5 indicating "completely agree."

The belief is widespread that attitudes are best assessed through multiple measures, particularly when it comes to measuring environmental issues. Instead of using single-item questions, it is

preferred to utilize several items (Gill et al., 1986). The sample for this study was drawn from Colombo and its suburbs, and the researcher employed a combination of convenience and simple random sampling methods in selecting the participants. Care was taken to ensure comparability within the sample for analysis. Additional data were collected from various sources such as published articles, newspapers, relevant journals, etc. The sample consisted of university undergraduates studying business management degrees at the University of Sylvania. Prior discussions with the participants were conducted by the researchers in order to determine product categories and brands. Specifically focusing on green marketing practices in Sri Lanka's FMC sector, participants were asked to generate ideas for products falling under food items, beauty soap, and detergent categories. The final sample included 160 respondents from Colombo, Kampala, and Salutary districts in the western province.

The study utilized several statistical techniques, including entrap tendency (specifically Mean), percentage analysis, and correlation analysis. The percentage and correlation values were instrumental in highlighting key aspects of the collected data, allowing for comparisons between variables and enhancing the understanding of relationships within the study. Percentage values were employed to determine the contribution of different categories within each variable, while central tendency values were used to assess the level of attractiveness toward each variable related to CEO friendliness.

The responses to open-ended questions were coded and categorized prior to analysis. Both firms and customers are recognizing that they are part of a larger community and have a duty to act responsibly towards the environment. Consequently, firms now believe that they must strive to achieve environmental goals in addition to profit-related objectives, leading to the

integration of environmental concerns into the corporate culture. The majority of participants in the sample express a desire to do what is right, presenting a challenge and opportunity for green marketers to facilitate and simplify eco-friendly behavior.

Researchers are investigating the connection between green marketing elements and consumer purchasing choices. They are analyzing how variables like product, package, price, place, and promotion are related to the decision of buying FMC products. Table 01 displays the correlation between each concept and the purchase choice.

Table 02 illustrates the correlation coefficients for measurable variables among urban and rural consumers. These variables include product, package, place/distribution, promotion, and purchase choice. The Pearson's Correlation Coefficient values are: product - 1.12, package - 1.510, place/distribution - 1.212, and promotion - 1.428. The correlation is statistically significant at a significance level of 0.01 (2-tailed).

The study concludes that environmentally friendly products and packages have a significant impact on customer buying choices. Additionally, marketing communication that provides information about eco-friendly products also greatly influences purchasing decisions.

This study investigated the impact of green marketing strategies on consumer buying decisions in the FMC sector in Sri Lanka. The study found that green marketing strategies strongly influence consumers' purchasing decisions, with a mean value of 23.25, falling within the strongly influenced score category of 22-30. The mode and median values were 24.0 and 23.80 respectively (See Annexes 02). The variables of green marketing include product, package, place, and promotion, with CEO-friendly distribution and promotions for green soap and detergents being exceptions. The majority of respondents (57%) stated that promotions of green products strongly influence their buying decisions, while 32% indicated the same for promotions of green

products. Additionally, the mean value for green promotion is 3.15 (See Annexes 01), which falls closer to the lower level of the strongly influenced score category (3.67 - 5.00). The findings reveal that 89% of respondents reported that CEO-friendly packaging strongly influences their buying behavior.

According to the descriptive statistics for green products, both the mean and median are in the strongly influenced score category. However, the statistical distribution has multiple modes. Many customers emphasize that the design of biodegradable packaging is a crucial factor in product attractiveness. [ kept intact].

The findings reveal that 62% of respondents strongly believe that biodegradable packaging will impact their purchasing decisions, while 36% feel it will have a moderate effect. Interestingly, although distribution does not play a significant role in green marketing, 46% of consumers are interested in patronizing environmentally-friendly businesses and distribution channels (e.g., CEO-friendly hotels), while others prioritize cost and convenience. Similarly, 62% of employees prefer services from outlets located in non-polluted environments.

The average value of green marketing outlets is 2.95, falling within the moderately influenced score category (2.33 - 3.67). Therefore, quantitative data indicates that green marketing elements significantly influence store choice decisions in Sri Lanka. Customer attraction towards green marketing elements is determined by demographic variables. Additionally, a notable finding is that all age categories, genders, and education levels show positive responses towards the various variables of green marketing elements.

Customers, regardless of demographic differences, prioritize green marketing when choosing a store. The study reveals that customers between the ages of 18-30 and 31-50 place significant importance on CEO-friendly packaging when making purchasing decisions across different product categories. Among the 18-30 age group, 32

customers selected CEO-friendly packaging as the primary variable, while 16 customers opted for green promotion.

In addition, only four respondents have indicated that they consider distribution function as an important variable for their decisions. The sample comprises 90 male customers and 70 female customers. A cross analysis was conducted to determine the relative importance of green marketing variables based on gender. Out of the male customers, 37 respondents consider CEO friendly packaging as the most important factor in selecting green products. On the other hand, most of the female customers prioritize the green features in their selection. Both genders give promotion the next highest priority.

In this section, we analyzed the relative importance of green marketing variables across different education levels. The sample included 62 graduates, 30 professionally qualified individuals, and 44 customers who have completed secondary education (AIL passed). Overall, graduates, postgraduates, and AIL passed customers have given the highest priority to the green features of products. Additionally, they identified CEO friendly packaging as an important variable in selecting green products in the FMC category.