Professional Documents
Culture Documents
MASTER OF PHILOSOPHY
in
BUSINESS MANAGEMENT
Submitted by
ARTEE AGGRAWAL
(Enrollment No. DYPMPHIL076990001)
Research Guide
Dr. R. GOPAL
DIRECTOR, DEAN AND HEAD OF THE DEPARTMENT
August 2010
I
FACTORS AFFECTING
GREEN MARKETING
IN INDIA:
A STUDY OF METRO
CONSUMERS
II
DECLARATION
the thesis has not formed the basis for the award of any degree, associate
Place:
Date:
III
CERTIFICATE
Business Management and that the dissertation has not formed the basis for
Also certified that the thesis represents an independent work on the part of
the candidate.
Place:
Date:
Signature of the
Head of the department Signature of the Guide
IV
ACKNOWLEDGEMENT
In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University
The research work embodied in this dissertation has been carried out under
the expert guidance and supervision of Dr. R. Gopal, Dean and Director,
University. It was only due to his valuable guidance and cheerful enthusiasm
for his constant encouragement and intellectual insights and also the
constructive criticism that was of immense help from the outset to the finale.
Last but not the least I want to acknowledge the contribution of all those
dissertation work especially the administrative staff and the library staff at
Place:
V
CONTENTS
EXECUTIVE SUMMARY X
1 Introduction to Green 1
Marketing
2 Kyoto-protocol and Clean 17
Development Mechanism
Bibliography 156
Annexure 164
Questionnaire 168
Repot on Green Marketing 177
VI
LIST OF TABLES
VII
LIST OF FIGURES
Figure No. Title Page No.
2.1 CDM Project cycle 51
3.1 Awareness Stages in Economic 73
Development of Industries
VIII
EXECUTIVE SUMMARY
consciousness worldwide. One recent survey found that 82 per cent of British
another study established that 69 per cent of the general public believes that
remarkable rate. Companies all over the world are striving to reduce the
parameters. Marketers are taking the cue and are going green.
In order to position green product offerings, companies must first segment the
IX
indicates that socio-demographic and personality indicators have had only
purchasing behaviour. The demand for green products has been shown to be
This research work aims to illustrate how the ‘green challenge’ is exerting an
influence on current marketing practice and how its implications will require a
The study is empirical in nature and has been designed to find out the
consumer perception of the green products and the factors that affect their
consumers
purchasing behaviour.
X
To give recommendations and suggestions to increase the uptake of green
products in India.
PROPOSED HYPOTHESIS
behaviour.
behaviour.
RESEARCH METHODOLOGY
Development of Questionnaire
XI
stressful life, promotion of green products, presence, packaging, eco-
certification etc. Based upon these various factors a framework has been
developed.
questions. Then on the basis of face validity and repeatability, the numbers of
Environmental awareness
Demographic profile
A pilot testing was done with these 150 questions and finally an instrument of
43 questions was developed. A five point likart scale was used to collect the
responses. Data has been collected from 695 respondents from various parts
DATA ANALYSIS
Data analysis of the filled questionnaire has been done using SPSS. Primarily
Total 11 factors have been identified in the studies that have the egenvalue of
more then 1.
XII
S.No Factors
3 Social Responsibility
4 Eco certification
6 Lifestyle
7 Absence of marketing
8 Promotion
9 Brand consciousness
10 Indifferent attitude
11 Packaging
Concern for health and environment was considered as most important factor
XIII
CONCLUSIONS
Green marketing is still in its infancy in India still this study shows that it is
eco-responsible.
socially responsible.
4. Green marketing builds brand equity and wins brand loyalty among
customers.
they see such labeling as a marketing gimmick, and they may lose
8. Green marketers need to find out the value their customers place on
XIV
basis of the functional need it caters to and then talk about the
green products and value them enough. If they do not, then the
Marketers also have the responsibility to make the consumers understand the
green marketing, consumers are willing to pay more to maintain a cleaner and
XV
CHAPTER-1
INTRODUCTION TO
GREEN MARKETING
XVI
CHAPTER-1
ecosystems are just a few of the indicators that all is not well. World
Bank (Word Bank Report, 2000) figures showed that nearly half the
world’s population lives on under $2 per day. For this half of the world,
have little meaning, and promises that the growth in the industrialized
economies would lead to a better quality of life for them have generally
For the new century, the key challenge for mankind is to find more
Report ‘Our Common Future’ in 1987 brought the issue into the
mainstream. In the wake of the 1992 Rio Earth Summit, the world’s
XVII
pursuit of sustainability as a goal. The real challenge lies in turning
growth.
companies and the markets within which they operate. Companies have
XVIII
zeitgeist which reflects increasing concern about the socio-
(Shrivastava, 1994).
companies to generate profits, but they also want from these companies
want a company to do well in financial and growth term, but they also
sustainability.
Consumer is ruling the market today and they are exercising their
that they believe in on an ethical level. On one level, this might mean,
XIX
say, avoiding clothing stitched by child laborers. For another consumer,
the tipping point might be the way the company treats the environment
human potential and harmony with other resources, both natural and
using recycled material instead of virgin ones and natural and organic
change.
More than 12 other studies in the US, Brazil, Europe, Mexico, South
Korea and Taiwan have established links between air pollutants and low
birth weight premature birth still birth and infant death. Thus the
growing awareness among the consumers all over the world regarding
XX
hostile towards it. Now we see that most of the consumers, both
are concerned about the environment and are changing their behavior.
GREEN MARKETING
XXI
of green marketing is that potential consumers will view a product or
accordingly. Companies all over the world are striving to reduce the
parameters. Marketers are taking the cue and are going green.
Green marketing offers business bottom line incentives and top line
processes may involve start-up costs, it will save money in the long
future energy cost savings. Companies that develop new and improved
According to a recent study for North America, Eco Markets 2009 (Kate
more purchasers believe that green packaging costs more while 30%
see it as costing the same. Throughout the Eco Markets study, findings
XXII
marketplace. When it comes to selecting green products, eco-labels can
cleaning it up. It entails much more than a new package, using recycled
change.
Stanford and Hartman, 2006). Ottman et all (2006) related the reasons in
studies from South Asia (Kaman Lee, 2008) showed that social influence
XXIII
From developing countries’ perspective the most important aspect to be
from producers and consumers but also the role of state is very crucial.
manufacturing and
While more and more companies are focusing on Being Green less
attention has been paid on spreading green and since attitude and
XXIV
other than Singapore, indicated they were concerned about the
A further 80% of this sample indicated that they had modified their
alternatives.
XXV
products. This lack of consideration of the true "greenness" of activities
India is world’s 2nd largest populated country and the natural resources
myopia in India.
paying heavy health and economic price for it (Nagdeve, 2002). After
products and for complying with the CDM norms to reduce carbon
prints. Corporate world has also geared up to encash the profits coming
Market is trying to pull the consumers who are exercising their “vote”
XXVI
they believe in on an ethical level. Despite all efforts put forth by
companies to sell the products with green labels, the uptake of the
all, 2010). Consumer perception for GREEN is still unclear (Chris Ely,
and concerns translate when it comes time to buy. The demand for
purchases (Young, Hwang & Caroline J Oates, 2010). This gap is even
larger in emerging economies like India. Realizing this gap the present
XXVII
study has been designed to understand the factors affecting the green
liability, life-cycle analysis, material use and resource flows, and eco-
Firms could also adopt management systems that create conditions for
XXVIII
ways: (i) repair (ii) recondition iii) remanufacture (iv) reuse (v) recycle
The work would focus primarily on the above issues and strategies for
XXIX
CHAPTER-2
KYOTO PROTOCAL
AND CLEAN
DEVELOPMENT
MECHANISM
XXX
CHAPTER-2
sound.
The technologies include, but are not limited to, the following areas:
Recycling
Water Purification
Sewage Treatment
Environmental remediation
Renewable Energy
XXXI
products, production and profits. Over time it has evolved to become
marketing. The fact that businesses are physical systems which exist
(UNCHE) was held in Stockholm, Sweden from June 5 to June 16, 1972.
XXXII
Programme (UNEP) was launched in order to encourage United Nations
Declaration and Action Plan defined principles for the preservation and
toxicity andacid rain , were not necessarily relevant issues for all
XXXIII
it was the pending environmental problems that dominated the meeting
generations." UNEP is the voice for the environment within the United
private sector
XXXIV
Carbon Footprint
as Carbon offsetting.
Climate Change
XXXV
produced at the United Nations Conference on Environment and
climate system.
Protocol, which has become much better known than the UNFCCC
itself.
from 30 April to 9 May 1992. It entered into force on March 21, 1994. As
were used to create the 1990 benchmark levels for accession of Annex I
XXXVI
countries to GHG reductions. Updated inventories must be regularly
The UNFCCC is also the name of the United Nations Secretariat charged
secretariat was Yvo de Boer; on May 17, 2010 his successor, Christiana
Figures from Costa Rica has been named. The Secretariat, augmented
countries
developing countries
Developing countries.
XXXVII
Annex I countries which have ratified the Protocol have committed to
mainly set below their 1990 levels. They may do this by allocating
These operators can only exceed their allocations if they buy emission
transition in 1992.
Annex II countries.
XXXVIII
Some opponents of the Convention argue that the split between Annex I
requirements will stress their economy. This was one reason given by
George W. Bush, then President of the United States, for not forwarding
the Kyoto Protocol to the United States Senate for ratification. Other
doing nothing.
Annex I countries
countries in transition:
Annex II countries
XXXIX
There are 23 Annex II countries and the European Union. Turkey was
removed from the Annex II list in 2001 at its request to recognize its
(UNFCCC)
Janeiro (known by its popular title, the Earth Summit). On June 12, 1992,
incumbent upon all UNFCCC parties. The parties agreed in general that
XL
they would recognize "common but differentiated responsibilities," with
UNFCCC for advice and consent of the U.S. Senate to ratification. The
Benchmarking
only quantified target set in the original FCCC was for developed
the year 2000 (Goldemberg et al., 1996, pp. 32–33). There are issues with
al., 1996, pp. 32–33). For example, take two countries that have identical
XLI
emission reduction commitments as measured against the 1990 base
necessarily the case. One country might have previously made efforts
while the other country had not. In economic terms, the marginal cost
initially high energy efficiency might face high costs. But for the country
potentially be lower.
Precautionary principle
XLII
Conferences of the Parties
Since the UNFCCC entered into force, the parties have been meeting
of the Kyoto Protocol (MOP), and parties to the Convention that are not
observers.
pick from and choose future options to address climate change which
XLIII
but differentiated responsibilities" established in the UNFCCC even
Declaration was noted (but not adopted) July 18, 1996, and reflected a
Secretary for Global Affairs for the U.S. State Department at that
Change
XLIV
emissions trading, clean development mechanism and joint
defined as the first emissions budget period. The United States would
XLV
COP 5 took place between October 25 and November 5, 1999, in Bonn,
Germany. It was primarily a technical meeting, and did not reach major
conclusions.
controversy over the United States' proposal to allow credit for carbon
of climate change and meet their obligations to plan for measuring and
positions, and the talks in The Hague collapsed. Jan Pronk, the
XLVI
regularly scheduled meeting of the parties to the UNFCCC - COP 7 - had
little progress having been made in resolving the differences that had
after George W. Bush had become the President of the United States
and had rejected the Kyoto Protocol in March 2001; as a result the
observer at the meeting. As the other parties negotiated the key issues,
States had strongly favored when the Protocol was initially put together,
XLVII
domestic action constituted a significant element of the efforts of each
Carbon sinks: It was agreed that credit would be granted for broad
activities that absorb carbon from the atmosphere or store it, including
cap on the amount of credit that a country could claim for sinks
XLVIII
Adaptation Programs of Action; and (3) a Kyoto Protocol adaptation
remained to be negotiated and agreed upon, and these were the major
Plan of Action, finalizing most of the operational details and setting the
express hope that the United States would re-engage in the process at
forward as a target to bring the Kyoto Protocol into force. The World
XLIX
Operational rules for international emissions trading among parties to
legally binding;
countries better adapt to climate change. The fund would also be used
also agreed to review the first national reports submitted by 110 non-
Annex I countries.
L
2004 - COP 10, Buenos Aires, Argentina
made since the first Conference of the Parties 10 years ago and its
change, the Buenos Aires Plan of Action was adopted. The parties also
first Meeting of the Parties (MOP-1) to the Kyoto Protocol since their
marked the entry into force of the Kyoto Protocol. Hosting more than
ever and the largest gathering in Montreal since Expo 67. The Montreal
to "extend the life of the Kyoto Protocol beyond its 2012 expiration date
LI
link Canada's environment minister, at the time,Stéphane Dion, said the
Kenya. At the meeting, BBC reporter Richard Black coined the phrase
Africa, take snaps of the wildlife, the poor, dying African children and
concluded that was a disconnect between the political process and the
and agreed on the procedures and modalities for the Adaptation Fund.
mechanism.
COP 13/MOP 3 took place between December 3 and December 15, 2007,
LII
commitment period of the Kyoto Protocol) was achieved with the
adoption of the Bali Action Plan (Decision 1/CP.13). The Ad Hoc Working
Conference
help the poorest nations cope with the effects of climate change and
December 2009.
LIII
The overall goal for the COP 15/MOP 5 United Nations Climate Change
agreement for the period from 2012 when the first commitment period
New York Times announced that "President Obama and other world
leaders have decided to put off the difficult task of reaching a climate
agreement that would punt the most difficult issues into the future."
Ministers and officials from 192 countries took part in the Copenhagen
large part of the diplomatic work that lays the foundation for a post-
within the UNFCCC process. The accord was notable in that it referred
LIV
international institutions that will approach USD 30 billion for the period
10 December 2010.
Johannesburg.
Two countries, Qatar and South Korea, are currently bidding to host the
LV
treaty with the goal of achieving "stabilization of greenhouse
November 2009, 187 states have signed and ratified the protocol.
These figures are used for converting the various greenhouse gas
LVI
The Protocol allows for several "flexible mechanisms", such
sources and removals from sinks under UNFCCC and the Kyoto
LVII
sector and developing countries to contribute to emission reduction
each equivalent to one tonne of CO2. These CERs can be traded and
The projects must qualify through a rigorous and public registration and
Protocol.
LVIII
Operational since the beginning of 2006, the mechanism has already
amounting to more than 2.7 billion tonnes of CO2 equivalent in the first
instrument, CERs.
CDM INDIA
climate system.
period 2008-12
LIX
LX
Legend
PP - Project Proponent
AE - Applicant Entity
EB - Executive Board
Used for years in local and regional pollution control programs in the
United States, market approaches are now recognized for their ability to
crafted rules and oversight are needed to assure that pollution trading
LXI
for example, enables trading between industrial and developing nations,
environment.
LXII
have helped to enhance the capacity of sustainable energy stakeholders
Information
impede market access for small and medium sized enterprises, local
inclusive, with the goal of helping to enable carbon market access for
LXIII
CHAPTER-3
GREEN MARKETING
LITERATURE REVIEW
LXIV
CHAPTER-3
Over the last 50 years, since evolution, Green Marketing has witnessed
Literature Review
results. The earliest article found in the search result dated back to 1971
many studies are there but very few work has been done in India on
Green marketing.
LXV
EVOLUTION OF GREEN MARKETING
its inception. The concept of green marketing has been around at least
since the first Earth Day in 1970 and later when the American Marketing
the idea did not catch on until the 1980s, when rising public interest in
the environment led to a demand for more green products and services.
The concept of green marketing seems to take its foundations into the
(Fisk, 1974; Henion and Kinnear, 1976), green marketing (Peattie, 1995;
LXVI
Ottman, 1992), sustainable marketing (Fuler, 1999) and greener
1999).
LXVII
To project an image of high quality, including environmental
household products in the USA between 1989 and 1990 and continued
The setback came because many industries made false claims about
"Plug in the Sun" program, in which the company installed solar panels
LXVIII
drill for oil in the Arctic National Wildlife Refuge. The media came up
this way-
"I'm skeptical sometimes because [a product] will have a green logo but
other products and services that serve the same purpose. The label
helped the customers to identify the compatible products but still the
LXIX
uptake of Green Products is very less throughout leading us to “Green
Myopia”.
two objectives:
Customer satisfaction.
latter can be termed “green marketing myopia.” Miller (2008) claims that
reach the most targeted audience, while helping grow the bottom line.
tries to mix two concepts which have diverging goals. According to her
LXX
incorporates a broad range of activities, including product modification,
companies often use claims that sound environmentally friendly, but are
used by manufacturers (Miller, 2008). On the web site, anyone can post
ads deemed to be misleading and rate how the deception compares with
incredible growth of green claims in the past few years. The site allows
LXXI
these environmental claims. By giving the public a channel to judge
Ford Motor Company's "It Isn't Easy Being Green" campaign for the
friendly, Ford's cars were considered the worst carbon emitters and had
early and much-criticized entry into the hybrid market, Ford has backed
petroleum giant BP has decided to label itself as the green oil company.
LXXII
criticized. Since 2000, BP has used the tag line "Beyond Petroleum" as
part of its green campaign. The overhaul of BP's image has been
hazardous waste from the Endicott Island oil field between 1993 and
1995. The company was even named as one of the 10 worst companies
of respondents felt that BP had become greener in the past five years
(Solman, 2008).
overuse and misuse of the "green" claims can saturate the market to the
LXXIII
point that the greenness of the product may become meaningless to the
example paper vs. plastic). Whole Foods is under attack for this very
reason. The Environmental Affairs Council filed action last year with the
for using only 100% recycled paper bags (Enviros to FTC, 2008).
lose any competitive edge they might have gained. Finally, there will be
environmental marketing will not only hurt consumers and firms, but it
will also harm our environment (Polansky, et. al, 1998). If the consumer
LXXIV
environmental claims, thereby avoiding any product that may in fact be
has come out of the shadows about its steps to become environmental,
VARIOUS STUDIES
LXXV
1. Socio-demographics, such as sex, age, education and social class
measured and applied, it is not surprising these have been the most
LXXVI
Personality variables have been found to have somewhat higher
1974; Schwepker and Cornwell, 1991). However, while this is true for
have been shown to “explain only a small part of the total variability of
likely to be of use for describing segments once they have been defined
for this approach rests on the fact that consumers have traditionally
LXXVII
been shown to express their environmental consciousness through the
eighteenth century turned the wheel and made earning profits from
planet had become prime aim to earn profits. Later towards the end of
economic activities. This was the time when development became the
improve the work place and work culture. Holistic development and
work – life balance became the talk of the town. Many strategies have
been applied to bring a balance in the life of workers, work hours got
workers but still environment was something nobody was talking about.
there is concern for better human life and more then that the existence
LXXVIII
demand of a sustainable economy is calling a balanced integration of all
Twentieth Century
PLANET
Late Nineties
PEOPLE
Eighteenth
PROFIT
LXXIX
Besides state and industry it is consumer who is an integral part of the
INDUSTRY STATE
CONSUMER
LXXX
also finding it as a lucrative strategy to tap the consumer market.
Western works (Kaman Lee (2008). There are only few to name (Chan,
LXXXI
Specifically, it is predicted that many international companies will
as China) have raised local and global concerns about the quality of
than previous generations (Li and Su, 2007; Tai and Tam, 1997; The
Economist, 2006).
LXXXII
emerging in many Asian countries. However, because little research has
2005).
LXXXIII
CHAPTER-4
GREEN MARKETING:
CASE STUDIES
LXXXIV
CHAPTER-4
Product
than competitors.
LXXXV
The increasingly wide variety of products on the market that support
sustainable development and are good for the triple bottom line include
materials made from recycled broccoli boxes and products that can be
less water than conventional printers and is able to pass the savings on
clamshells to paper.
for example, promote the added qualities such as taste and tenderness.
tested.
LXXXVI
Price
bonus but will often be the deciding factor between products of equal
often less expensive when product life cycle costs are taken into
Place
customers go out of their way to buy green products merely for the sake
they are not just appealing to a small green niche market. The location
LXXXVII
displays or using recycled materials to emphasize the environmental
Promotion
commitment. To reduce the use of plastic bags and promote their green
commitment, some retailers sell shopping bags, under the banner of the
trust.
LXXXVIII
CASE STUDIES OF GREEN PRODUCTS AND
SERVICES:
The largest democracy in the world, with greater political and social
The second fastest growing economy, and the 4th largest economy
manpower
service industries
LXXXIX
It is because of all these reasons that multinationals today are eyeing
India and introducing their products in the Indian market. Many Green
New Delhi, capital of India, was being polluted at a very fast pace until
the driving factor for Tata Group in the last decade, going green is the
buzzword for the present one. From being on the fringe, the green
the current 1.8 tone to 1.7 tons per ton of liquid steel made by 2012. The
XC
Tata Motors is setting up an eco-friendly showroom using natural
building material for its flooring and energy efficient lights. Tata Motors
The Indian Hotels Company, which runs the Taj chain, is in the process
organic bed linen and napkins made from recycled paper. But there
won’t be any carpets since chemicals are used to clean those. And
when it comes to illumination, the rooms will have CFLs or LEDs. About
5% of the total rooms at a Taj hotel would sport a chic eco-room design.
biogas-based power plant at Taj Green Cove in Kovalam, which uses the
waste generated at the hotel to meet its cooking requirements. Tata had
is Indica EV, an electric car that will run on polymer lithium ion batteries.
this year. The group’s large companies such as Tata Steel, Tata Motors,
Irani, has been formed to address this issue. Several companies have
XCI
and these projects are at various stages of approval at United Nations
the total power it would generate in the next 10 years, 25% would be
and energy data across its dealer and supply chain to compute their
A source in Indian Hotels said that all of its domestic and international
end of 2010. Clean Technology Tata Steel aims to reduce carbon dioxide
emissions at its Jamshedpur plant from 1.8 tons to 1.7 tons per ton of
banish polythene bags by replacing them with paper bags and providing
them to shop keepers at lucrative prices. "Pahal" is one such group that
has been training women to make paper bags from old newspapers.
XCII
4,000 per month from their own homes. This drive has produced a
"A green building is one which uses less water, optimises energy
building."
The rapid progress made by the Indian Green Building Council in India
and the prestigious green building projects being awarded the Platinum,
SCORECARD
XCIII
The only deterrent for going green, apparently, is the myth that project
changes and implement them – with the same approach as India’s was
stipulated norms.
on October 18, 1975, with the opening of its first hotel - Chola Sheraton
synonymous with Indian hospitality. With over 100 hotels in more than
group Hotels have had the privilege of hosting world leaders, Heads of
State and discerning guests from across the world and within.
XCIV
is ‘Reduce, Reuse and Recycle’. Each hotel has its own programme,
environment’.
Awards
· ITC Mughal won the Golden Peacock award for the year 2004.
Platinum Rating.
· ITC Hotels received the PATA Gold Environment Award in 2005 in the
Corporate category
– LEED.
ITC Hotels made a humble start in the 'Greening' of the supply chain (GSC)
XCV
recently, with the clear intent of attempting to work towards'creating a sea of
through industry initiative, by inducing our suppliers to adopt cleaner & greener
NTPC
utilize coal-ash that has been a major source of air and water pollution.
Barauni refinery of IOC is taken steps for restricting air and water
pollutants.
make commuting easier for those with dysfunctional arms and hands. It
does not have handles and can be used to go out on the road. bike has
a seat and two footrests on either side. The user can navigate the bike
past three years, his teams have been collecting banana peels from the
areas near Godavari and produce thread out of it. Local women and
seasonal farmers are then put to weaving rugs and making paper.
XCVI
Gujarat University converts banana plant waste into useful products. A
parts of the fruit's plant which are usually thrown away as waste into
values. The other products include fibre for textile and paper industry
and organic liquid fertilizer which have been developed under the
project which aims for efficient use of each and every component of
banana plant. This candy is made from the central core of the banana
standardising the product. And also looking at the demand for banana
in the international market and with new technologies evolved for better
XCVII
resistance.
These tyres will also have longer life due to advanced compounding
these tyres are made from silica based tread compounds. The tyres also
technology.
Group, product labels are more important than advertising for finding
task.
green-building practices are becoming the norm of the day. Real estate
of the green house effect and the benefits of harnessing the limited
on human health and environment. Effective green buildings are not just
XCVIII
a random collection of environment friendly technologies. They require
careful and systematic attention to the full life cycle impacts of the
culture, heritage and traditions brought forth with the Vaastu science,
materials are obtained from local sources that reduce loads, optimizes
their transportation.
Day lighting with ample windows will eliminate the need to turn on
electric lights during the day. These buildings also harvest solar energy
with 20% of their energy requirement coming from solar cells. Solar
XCIX
energy can warm a building in winter. Prevailing breeze and convection
mass can help store the heat gained during the day and release it at
also both heat a building in winter and cool it during summer. Insulation
doors, and ceilings and walls help reduce energy loss, thereby reducing
energy usage.
MARKETING
bulb. The CFL’s clumsy shape, however, was incompatible with most
the look and versatility of conventional incandescent light bulbs and the
promise of more than $20 in energy savings over the product’s life span
C
Light, at $15 each versus 75 cents for incandescent bulbs. The product
had difficulty climbing out of its deep green niche. The company re-
life" positioning and promise of saving $26 in energy costs over its five-
year lifetime. Finally, with the U.S. EPA's Energy Star label to add
promise to cut its global energy use 20 percent by the year 2010. To
worldwide.
needs for better fuel savings and fewer traffic tie-ups and parking
"time-sharing" system for cars. Consumers who drive less than 7,500
miles a year and do not need a car for work can save thousands of
CI
including Zip Car (East Coast), Flex Car (Washington State), and Hour
COKE INC
MCDONALD
Canadian-born John Lamorie and his Taiwanese wife, Shelly Wu, used
would turn them over for points in class, to build the 75 sq-metre
schoolhouse. The project took about a year, with school now set to
CII
environmental friendliness. The schoolhouse’s walls are coated with a
SILICON-AIR BATTERY
tolerance for both humid and extremely dry conditions. Potential uses
and weight because they lack the built-in cathode used in conventional
batteries.
IBM
its second phase of the project, the team from IBM Global Technology
initiative for an average 25,000 square foot data centre, the potential
CIII
emissions per year. IBM claims that the savings for customers are great
on energy consumption.
VIDEOCON
and a ‘with-it’ brand; ahead of its foray into diverse areas such as DTH
and telecom. As a first step towards the revamp, the conglomerate has
unveiled a new logo, designed by Inter brand Singapore. The new ‘V’ is
a more fluid version of the erstwhile logo and comprises two green lava-
like shapes. The two animated characters have been named ‘Chouw’
and ‘Mouw’ and the agency has conceptualized a series of five films,
each telling a simple story while reinforcing the brand’s new positioning
statement, “Experience Change.” For instance the first film titled ‘Hot’
shows the two characters flying up to the cloud and making it burst to
CIV
high-growth markets for telecommunications. At the same time, many
industry report, all of these factors will continue to converge over the
by 2013.
processing.
residues, trade and non hazardous industrial refuse and treated bio-
CV
problem in Indian cities and towns with the urban areas of India
has entrusted it to local authorities who carry out the solid waste
management in areas under their control using mostly their own funds,
Rs.500 to Rs.1500 (approx. USD 12 - 36) per tonne on solid waste for
The 2001 Census has put the number of urban centres as 5144 out of
for small towns is 0.1 kg per person per day; for medium towns/city is
0.3 to 0.4 kg per person per day; and for large cities around 0.5 kg per
person per day (CPCB, 2000). The typical rate of increase of waste
www.wasteconsult.de 9 3
CVI
MSW in 2025 will therefore be around 700 grams per capita per day.
45% of total from the prevailing 28%, the magnitude of problem is likely
The socio-economic structure of the Indian society not only makes per
markets, though there are problems like the health hazard to the
Since the experience in the towns all over India regarding waste
processing has not been encouraging and since the States were not
CVII
waste processing plants on technical aspects (i.e. processing
expertise.
Hotel offers free meal to guests who are willing to generate electricity.
modified dance floo . All the flashing strobes and pounding speakers at
burden. The club's owner, Andrew Charalambous, said the dance floor
CVIII
Company creates a desktop printer that doesn't use ink nor paper .
merely water-proof, but could be easily erased, just feed the sheets
everything or just write over it. Also claimed by the manufacturer, such
one sheet could be used up to 1,000 times so that you'll reduce your
at this amazing green roof at the School of Art, Design and Media at
roofs create open space, insulate the building, cool the surrounding air
with native greenery to colonize the building and bond it to the setting.
Designer creates a sink that uses wasted water to grow a plant . Made of
polished stained concrete, the Zen Garden Sink has a channel that
allows the water used while washing your hands to water a plant.
CIX
Created by young Montreal designer Jean-Michel Gauvreau the sink
you won't get your plants all soapy. There is a main drain at the bottom
of the basin for soapy grime. Your little plant friend just gets whatever
Designer creates a shower that forces you to leave when you've wasted
too much water. 20% of our total domestic energy usage is from hot
water for showering and bathing. That's over 6 times the energy usage
friendly shower design that will force you to get out when you take too
long and waste much water. The eco_drop shower features beautiful
concentric circles that will rise to force you to stop showering when you
goal of this design from Tim Holley. He calls it Tio, and it's a ghost-
shaped light switch that gives kids a visual reminder of how much
energy they've used by leaving lights on. Tio starts out green and
smiling. If the light is left on for more than four hours, he turns yellow
and looks shocked. And if you dare to leave that light on for more than
eight hours, sweet little Tio turns into a raging red hulk, complete with
frowny mouth and angry eyes. But he won't just visually remind your
kids about their energy habits; information from the light switch is sent
CX
to Tio's computer program so the entire family can see how they're
program lets kids grow a virtual tree which gets bigger and healthier the
killers, the staple-free stapler "cuts out tiny strips of paper and uses the
strips to stitch up to five pieces of paper together." You can even order
them customized with your corporate logo so you can, you know, brag
CXI
CHAPTER- 5
OBJECTIVE OF THE
STUDY AND
RESEARCH
METHODOLOGY
CXII
CHAPTER-5
METHODOLOGY
The demand for green products has been shown to be uneven across
CXIII
The study is empirical in nature and has been designed to find out the
consumer perception of the green products and the factors that affect
STUDY
Indian consumers
purchasing behaviour.
RESEARCH METHODOLOGY
Development of Questionnaire
CXIV
FRAMEWORK FOR FACTORS AFFECTING
ECONOMIES
compared with men (Mohamed M. Mostafa, 2007) This leads to our first
proposition:
factors such as gender, are more likely to lead to green purchases than
toward (a) environmental protection, (b) fair trade, (c) local products,
Lee, 2008).
CXV
Lifestyle or status symbol also influences the purchase decision. (
purchases.
CXVI
Framework for Factors Affecting Green Purchase
Behaviour
MARKETING
AWARENESS ASPECT
ASPECT
1. Concern for health and
environment 1. Product
2. Eco buying attitude 2. Price
3. Social Responsibility 3. Promotion
4. Eco authenticity 4. Place
5. Social awareness and
DEMOGRAPHIC ASPECT
1. Age,
2. Gender
3. Family dimension GREEN PURCHASE
4. Education
5. Occupation BEHAVIOUR
6. Income
CXVII
Based on the above framework a questionnaire was designed with 640
Environmental awareness
Demographic profile
A pilot testing was done with these 150 questions and finally an
used to collect the responses. Data has been collected from 695
CXVIII
CHAPTER-6
PROFILE OF THE
RESPONDENTS
CXIX
CHAPTER- 6
The survey for the research work was conducted in the city of Mumbai
and Navi Mumbai keeping in mind that Green Marketing is still a metro
respondents was selected randomly for the survey. Out of which only
the study.
From the table 6.1 it is evident that out of the total 649 respondents,
more then 27% are below 25 years of age group, maximum i.e. 39% are
from age group of 26 years to 35 years. Nearly 20% are from the age
group of 36 years to 45 years and rest of the 15% is from age group of
CXX
Table 6.1- AGE OF THE RESPONDENTS
Up to 25 189 27.2
CXXI
Figure 6.1 - AGE OF THE RESPONDENTS (Bar Chart)
From the table 6.2 it is evident that out of total 694 respondents, 56%
are graduate and 24% are post graduate where as only 20% are SSC and
HSC passed which clearly indicates the high literacy ratio in the metro
areas.
CXXII
Table-6.2: QUALIFICATION OF THE RESPONDENTS
SSC 30 4.3
CXXIII
From the table 6.3 it is evident that out of total 694 respondents, 73% are
CXXIV
GENDER OF THE RESPONDENTS
From the table 6.4 it is evident that out of total 694 respondents, 60% are
CXXV
Gender Frequency Percent
Gender
Male
Female
CXXVI
CHAPTER-7
FACTORS AFFECTING
GREEN MARKETING IN
INDIA
CXXVII
CHAPTER-7
INDIA
CXXVIII
combinations of the potential factors, plus "error" terms. The
the variable space, it takes into account all variability in the variables. In
method was used to extract the factors. The variables were grouped into
eleven factors and, all together, account for 53.43 per cent of the total
the results, the factors were rotated using the Varimax method. The
variables, which means that the factor analysis was suitable (Hair et al.,
1998).
CXXIX
Factor-1 Concern for health and environment Loading
the environment
to the environment
CXXX
recycled
Factor-4 Eco-certification
Factor-6 Lifestyle
CXXXI
1
0.696
It is prestigious to buy green products
Factor-8 Promotion
CXXXII
what I do
Factor-11 Packaging
Kaiser criterion: The Kaiser rule is to drop all components with eigen
MARKETING IN INDIA
As clear from Table 7.1, there are total 11 factors affecting green
we have calculated the mean values of all the 11 factors and standard
deviation.
CXXXIII
Deviation
Result from Table-7.2 showed that Concern for health and environment
CXXXIV
FACTOR AFFECTING GREEN MARKETING BY
DEMOGRAPHICS
Analysis of table 7.3 showed that across the age groups up to 25 years,
26-35 years, 36-45 years and 46 years and above ‘concern for health and
‘Packaging’ is also across the age group. ‘Social awareness and values’
is third most important factor for age group up to 45 years while eco-
CXXXV
Up to 25 26-35 36-45 46 and
Factors Years yrs yrs above
Absence of marketing
3.20 3.34 3.35 3.23
Brand consciousness
2.66 2.57 2.33 2.44
CXXXVI
Packaging
Indifferent
attitude
Brand
consciousness
Promotion
Absence of
marketing
46 and above
Social
awareness and
value
Eco
certification
Social
Responsibility
Eco buying
attitude
Concern for
health and
environment
0 1 2 3 4 5
CXXXVII
FACTOR AFFECTING GREEN MARKETING BY QUALIFICATION Analysis
products but for SSC it is ‘Social awareness and values’. The second
CXXXVIII
Table 7.4: Factor Affecting Green Marketing By Qualification
PG and
CXXXIX
Packaging
Indifferent
attitude
Brand
consciousness
Promotion
Absence of
marketing
PG and above
Lifestyle Graduate
HSC
SSC
Social
awareness and
value
Eco
certification
Social
Responsibility
Eco buying
attitude
Concern for
health and
environment
CXL
FACTOR AFFECTING GREEN MARKETING BY GENDER
Analysis of table 7.6 showed that for both male and female respondents
affecting their buying behaviour for green products. The second most
most important factor for both the gender. Indifferent attitude is least
CXLI
Packaging
Indifferent
attitude
Brand
consciousness
Promotion
Absence of
marketing
Female
Lifestyle
Male
Social
awareness and
value
Eco certification
Social
Responsibility
Eco buying
attitude
Concern for
health and
environment
CXLII
Green gap exists around terms such as energy efficiency, energy
behavior.
CXLIII
UNDERSTANDING OF THE CUSTOMERS FOR ‘GREEN PRODUCTS’ ON
FOLLOWING OPTIONS
Bio-degradable products
Vegetarian products
Fresh products
Healthy products
Others_____________
CXLIV
80 74 76
70 63
60 55
50 48
43
40 43 42
30 24 32
20
10
0 3 5
Green Products
6.19 Analysis of Figure 6.5 shows that ‘Green’ symbolize Healthy to 76%
respectively.
CXLV
UNDERSTANDING OF THE CUSTOMERS FOR ‘GREEN SYMBOL’ ON
FOLLOWING OPTIONS
Vegetarian
Natural / organic
Recycled / recyclable
Ayurvedic / Herbal
Company logo
Fresh
Healthy
Good quality
Highly priced
CXLVI
Meaning of symbol
4% 0% 9%
10%
Vegetarian
8% 19% Natural / Organic
Recycled / Recyclable
Ayurvedic / herbal
6% Company Logo
Fresh
2%
Healthy
Good quality
42% Highly priced
of Figure 7.6 shows that ‘Green symbol’ symbolize high priced product
respondents.
CXLVII
Figure 7.7: Awareness of the Customers for ‘Green products present in
the market
Analysis of Figure 7.7 shows maximum respondent i.e 36% are not
CXLVIII
CHAPTER-7
SUMMARY AND
CONCLUSIONS
CXLIX
Chapter-7
reasons.
The model of innovation diffusion for example does not apply uniformly
countries the response pattern is different to that in the ‘west’ and the
CL
Another model is Maslow’s hierarchy of needs which show the order in
(1998, p.93) shows that in Asia not only is the order in which these
needs are satisfied, different but also the needs themselves vary
compared to the ‘west’. The problem with these models is that they view
elite/growing urban middle class on the one hand and the urban
A clever marketer is one who not only convinces the consumer, but also
and social dimension to it. With the threat of global warming looming
CLI
to maintain a cleaner and greener environment. Finally, consumers,
like India.
theirs alone.
consumers want a cleaner environment and are willing to "pay" for it,
products that are more eco-responsible, think again. You must find an
CLII
opportunity to enhance you product's performance and strengthen your
Until this occurs it will be difficult for firms alone to lead the green
First and foremost, a good green marketing program is one that either:
these things are already happening and being paid for by all, then the
CLIII
among regional and national groups with an interest in promoting
developed a close working partnership with the Land and Water Fund
with the intent of rate basing a good portion of it, and subscribing the
should not be excessively higher than the actual cost of the resources
excessive prices.
CLIV
Green marketing is offering a number of significant
10. Marketers get access to new markets and gain an advantage over
11. Marketers can charge a premium on products that are seen as more
eco-responsible.
socially responsible.
13. Green marketing builds brand equity and wins brand loyalty among
customers.
14. However, green marketing poses huge dangers for marketers if they
get it wrong:
17. Many customers keep away from products labeled “green” because
they see such labeling as a marketing gimmick, and they may lose trust
CLV
18. Green marketers need to find out the value their customers place on
basis of the functional need it caters to and then talk about the
products and value them enough. If they do not, then the marketers may
the responsibility to make the consumers understand the need for and
The significance India will have on the the world in the future will be
extraordinary; we’ve only scratched the surface. The thing that remains
CLVI
to be seen is the importance green business has in India. Tackling mass
poverty is the first thing that is happening, and it should be the first
be. The direction that business takes in India will have massive impact
on the world. If business leaders there recognize the vast potential that
green business has, and then decide to invest time, money, and effort,
the world would only benefit. India is in a very unique position right
now, they could either lead the world, or potentially aid in its
destruction.
CLVII
BIBLIOGRAPHY
CLVIII
BIBLIOGRAPHY
Chris Ely, (2010) What Green Means to Consumers & the Industry.
464
Social Psychology. Washington: Mar 2010. Vol. 98, Iss. 3; pg. 392
CLIX
William Young, Kumju Hwang, Seonaidh McDonald, Caroline J Oates
consumers. Psychology & Marketing. Hoboken: Vol. 20, Iss. 10; pg. 883
CLX
Kaman Lee. (2008) Opportunities for green marketing: young
Green Journal
strategies”, Business Strategy and the Environment, Vol. 11, pp. 285-
297.
Business and Economics. Thunder Bay: Mar 2010. Vol. 10, Iss. 6; pg. 22,
4 pgs
pp. 18-39.
112.
CLXI
Buttel F H and Flinn W L (1978), "Social Class and Mass Environmental
pp. 433-450.
Strategy: The Case of Air Pollution", Journal of Marketing, Vol. 35, July,
pp. 61-65.
CLXII
McEvoy J (1972), "The American Concern With Environment", Social
CLXIII
Schahn Joachim and Holzer Erwin (1990), "Studies of Individual
767-786.
Stern Paul C, Dietz Thomas and Kalof Linda (1993), "Value Orientations,
558-575.
CLXIV
Tognacci Louis N, Weigel Russell H, Wideen Marvin F and Vernon David
CLXV
ANNEXURE
CLXVI
Annex I Countries
· Australia ·
· Austria
· Belarus a/
· Belgium
· Bulgaria a/
· Canada
· Croatia*
· Czech Republic a/ *
· Denmark
· European Union
· Estonia a/
· Finland
· France
· Germany
· Greece
· Hungary a/
· Iceland
· Ireland
· Italy
· Japan
· Latvia a/
· Liechtenstein*
· Lithuania
CLXVII
Luxembourg
· Monaco*
· Netherlands
· New Zealand
· Norway
· Poland a/
· Portugal
· Romania a/
· Russian Federation a/
· Slovakia a/*
· Slovenia a/*
· Spain
· Sweden
· Switzerland
· Turkey
· Ukraine a/
· United Kingdom of Great
Britain and Northern Ireland
· United States of America
on 13 August 1998,
(EIT))
· Australia · Luxembourg
· Austria · Monaco*
CLXVIII
· Belgium · Netherlands
· Canada · New Zealand
· Croatia* · Norway
· Denmark · Portugal
· European Union · Spain
· Finland · Sweden
· France · Switzerland
· Germany · Turkey
· Greece · United Kingdom of Great Britain
· Iceland and Northern Ireland
· Ireland · United States of America
· Italy
· Japan
· Liechtenstein*
on 13 August 1998,
Development (OECD))
CLXIX
The non-annex I countries are the developing countries
CLXX
QUESTIONNAIRE
Questionnaire
1) Gender
CLXXI
2) Age
3) Education
4) What do you understand from “green products”? (Tick more than one)
d) Bio-degradable products
e) Vegetarian products
f) Fresh products
h) Healthy products
m) Others_____________
CLXXII
a. Vegetarian
b. Natural / organic
c. Recycled / recyclable
d. Ayurvedic / Herbal
e. Company logo
f. Fresh
g. Healthy
h. Good quality
i. Highly priced
a. Yes
b. No
a. Yes
CLXXIII
b. No
recycling?
a. Yes
b. No
9. Are you aware of any products that are designed with environmental
10. Choose the energy saving electronics from following which are used
by you currently?
CLXXIV
(b) Solar water heater
(k) None
11. Have you ever bought or considered buying products which are
a. Yes
b. No
CLXXV
(e) Other (specify)_____________________________
12. If given a choice, please choose the kind of vehicle from the following
(a) Petrol
(b) Diesel
(c) Gas
(d) Electric
(e) Solar
(f) Others___________________
CLXXVI
New Report: American Consumers Lead the World in
Abstract (Summary)
exhibit the least concern about the environment, to the "Green inDeed,"
the group of consumers who are not only green in their lifestyles but
more environmentally cynical nations in the world with only 62% of the
according to the findings from the new Green Gauge Global report from
America. This ranks the US 24th out of 25 markets around the world -
CLXXVII
The GfK Roper Green Gauge(R) Global report, which examines the
American consumers are also skeptical about the cost and efficacy of
In the USA, these numbers also represent a dramatic increase from just
"In the US and around the world, marketers are being challenged by
consumers to produce better green products that don't cost too much.
Director of the GfK Roper Green Gauge study at GfK Custom Research
North America.
exhibit the least concern about the environment, to the "Green inDeed,"
the group of consumers who are not only green in their lifestyles but
CLXXVIII
Between these segments lie the "Carbon Cultured," consumers who are
concerned about the environment, yet their green behaviors tend to lag
responsible.
"Our Green Gauge Global report not only discusses the unique
green behaviors compared to others who are less passionate about the
environment."
the varying green attitudes and behaviors globally, marketers can more
target audiences.
CLXXIX
CLXXX