Science, Technology and Development ISSN : 0950-0707

THE IMPACT OF GREEN MARKETING ON CUSTOMER

SATISFACTION WITH SPECIAL REFERENCE TO SELECTED FMCG

D.K. Jayakanth,
Research Scholar, Department of Commerce,
Dhanraj Baid Jain College, University of Madras, Thoraipakkam, Chennai, Tamilnadu, India
Dr. M. Rajesh,
Associate Professor, Department of Commerce,
Dhanraj Baid Jain College, University of Madras, Thoraipakkam, Chennai, Tamilnadu, India

ABSTRACT

The main purpose of this study is to find out the impact of green marketing practices on
customer satisfaction among the leather industries' customers. Green revolution, going green,
environmental protection, sustainable life style, sustainable development, protecting our earth and
many more has become a natural phenomenon in our everyday life. Green marketing is a tool used
by many companies in various industries to follow this trend. This paper focuses on the impact of
green marketing on customer satisfaction of FMCG products. Multiple regression analysis is used
to find the impact of Green marketing practices on Customer satisfaction. Determination of the
Eco friendly product is the important factors that plays high role in Green marketing practices.
However the responses show that attitude and environment deterioration plays minimal role in
Green marketing practices. It is noted that Awareness, Determination of product, Environment
deterioration and Purchase behaviour has positive significant impact on Customer satisfaction.
Determination of product followed by Purchase behavior and Awareness predicts Customer
satisfaction of FMCG more. SPSS (Statistical Package for Social Sciences) v.21 is used to analyze
the data.

Keywords: Green Marketing, Customer Satisfaction, FMCG.

Volume VIII Issue X OCTOBER 2019 Page No : 411

Science, Technology and Development ISSN : 0950-0707

INTRODUCTION

In the last decade, consumers have become more enlightened on environmental issues.
Green marketing refers to selling product or rendering services based on environmental benefit. It
came into existence in late 1980s and early 1990s. Green marketing is growing rapidly and
consumers are willing to pay a lot for green product. There has been little analysis of the impact
of this new market on the consumers and the environment so far. Green marketing affects all areas
of our economy, it does not just lead to environmental protection but it also creates new market
and job opportunities. Companies that are environmental stewards stand a chance of gaining many
satisfied and loyal customers.

In general, green marketing is a much broader concept that can be applied to consumer
goods, industrial goods and even services. Green marketing incorporates a broad range of
activities, including product modification, changes to the production process, packaging changes,
as well as modifying advertising (Akter, 2012). Green marketing is the process of developing
products and services and promoting them to satisfy the customers who prefer products of good
quality, performance and convenience at affordable cost, which at the same time do not have a
detrimental impact on the environment. Companies all over the world are striving to reduce the
impact of products and services on the climate and other environmental parameters. Marketers are
taking the cue and are going green. As resources are limited and human wants are unlimited, it is
important for the marketers to utilize the resources efficiently without waste as well as to achieve
the organization's objective. So green marketing is inevitable.

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). Examples of FMCG generally include a wide range of frequently
purchased consumer products such as toiletries, soaps, cosmetics, tooth cleaning products, shaving
products and detergents. By definition, FMCG addresses to a very core and inescapable need in
the consumer’s life and so it is less prone to economic swings than high ticket items such as
television or even apparel. The Indian FMCG sector is the fourth largest in its economy and has a
market size of US$13.1 billion. FMCG sector generates 5% of total factory employment in the
country and is creating employment for three million people, especially in small towns and rural
India. Well-established distribution networks, as well as intense competition between the
organized and unorganized segments are the characteristics of this sector. FMCG sector in India

Volume VIII Issue X OCTOBER 2019 Page No : 412

Science, Technology and Development ISSN : 0950-0707

has a strong and competitive MNC presence across the entire value chain. The middle class and
the rural segments of the Indian population are the most promising market for FMCG, and give
brand makers the opportunity to convert them to branded products. Most of the product categories
like jams, toothpaste, skin care products, shampoos, etc, in India, have low per capita consumption
as well as low penetration level, but the potential for growth is huge. Going green, green economy
or the green movement has gained massive popularity globally over the past several years and its
influence has spread across just about FMCG industry. Being “green” helps preserve and sustain
society’s resources.

REVIEW OF LITERATURE

Yazdanifard & Mercy (2011) have approached “The impact of Green Marketing on
Customer satisfaction and Environmental safety”. Green revolution, going green, environmental
protection, sustainable life style, sustainable development, protecting our earth and many more has
become a natural phenomenon in our everyday life. As a result, this paper can be used by
researchers who need to find out the impact of green marketing on customer satisfaction and
environmental safety. Chang & Fong (2010) have examined the relationship between Green
product quality, green corporate image, green customer satisfaction, and green customer loyalty.
The empirical results show that (1) green product quality is positively associated with green
customer satisfaction and green customer loyalty; (2) green corporate image is positively
associated with green customer satisfaction and green customer loyalty; and (3) green customer
satisfaction is positively associated with green customer loyalty. The results indicate that green
product quality could bring about green customer satisfaction and green customer loyalty.
Additionally, green corporate image contributes to green customer satisfaction and green customer
loyalty. Amit Syal & Dr Lokesh Jindal (2016), study focus on analyzing the green marketing
strategies in terms of product, price, place and promotion. Key takeaways from the study findings
that that there are a huge number of male respondents aware of green marketing strategies of
FMCG sector in India. Numerous male respondents enumerate awareness with the help of word
of mouth communication, advertisements, banners and the like. Dhanjit Pathak (2017) explores
the influence of consumer and the response of customer towards green marketing. The study will
help to develop a trend for green marketing and will help to take decision for investing in green

Volume VIII Issue X OCTOBER 2019 Page No : 413

Science, Technology and Development ISSN : 0950-0707

marketing projects to produce green products. The results of this research project (Green-
marketing) shows that customers have a high level of involvement regarding environmental issues
as a consequence of growing environmental consciousness.

RESEARCH METHODOLOGY

This study focuses on the impact of green marketing practices on customer satisfaction
among FMCG products. This study coves the selected respondents consuming the Eco Friendly
products in Chennai. This study is based on the primary data collected through questionnaire to
study the perception of the consumers. Convenient sampling method was adopted to select the
respondents. A sample of 109 respondents who consumes eco friendly products in Chennai. This
study comes under the category of analytical research study. The respondents are selected with
different gender, age group, education, occupation, family background and income levels. The
questionnaire comprises of three sections, first section covers personal information of the
respondents, second part covers Green marketing dimensions and third section covers the
Customer satisfaction scales. Descriptive statistics such as mean and standard deviation are used
to express the perception of the factors of Green marketing and Multiple regression analysis is
used to find the impact of Green marketing practices on Customer satisfaction. SPSS (Statistical
Package for Social Sciences) v.21 is used to analyze the data.
OBJECTIVES OF THE STUDY

 To assess the factors of Green marketing practices

 To study the impact of Green marketing practices on Customer satisfaction in FMCG
products.

RESULTS AND DISCUSSION

The reliability of the study sounds to 83.6%. The validity of the questionnaire is also
established with the help of expert’s opinion and respondents’ feedback. Samples of 109
respondents who are all purchasing Eco friendly products (EFP) in Chennai were included in the
study. 56.9% of the selected respondents are females, 32.6% of them are graduates, 19.6% of
them are home makers and 56.9% of the respondents live in joint family.

Volume VIII Issue X OCTOBER 2019 Page No : 414

Science, Technology and Development ISSN : 0950-0707

Table-A
Perception on factors of Green marketing practices

Dimensions Mean SD
Awareness 3.13 0.534
Attitude 3.09 0.508
Determination of product 3.65 0.791
Pricing 3.12 0.532
Environment deterioration 3.02 0.625
Purchase behaviour 3.38 0.722

It is inferred from the Table-A, determination of the Eco friendly product is the important
factors that plays high role in Green marketing practices. Respondents purchase behaviour,
awareness, pricing also plays moderate role in Green marketing. However the responses show that
attitude and environment deterioration plays minimal role in Green marketing practices.

Multiple regression analysis was conducted by taking Awareness, Attitude, Determination

of product, Pricing, Environment deterioration and Purchase behaviour as independent variables
and Customer satisfaction as dependent variable, the following null hypothesis is framed.

H0: To study the impact of Green marketing practices on Customer satisfaction in FMCG
products
Table -B
Impact of Green marketing practices on Customer satisfaction

Green marketing R2 Beta F-statistics t- value

(Constant) 0.401 9.624**
Awareness 0.611 0.145 3.621**
Attitude 0.057 1.022
Determination of product 0.356 36.148** 8.001**
Adjusted R2
Pricing 0.048 1.457
Environment deterioration 0.124 3.014**
0.599
Purchase behaviour 0.239 5.662**
** Significant at 1% level

It is observed from the Table-B, the regression model’s F value is 36.148 and it is
significant at 1% level, the null hypothesis “To study the impact of Green marketing practices on
Customer satisfaction in FMCG products” is rejected. The regression model’s coefficient of

Volume VIII Issue X OCTOBER 2019 Page No : 415

Science, Technology and Development ISSN : 0950-0707

determination (R2) is 0.611 shows good variability of 61.1%. It is noted that Awareness,
Determination of product, Environment deterioration and Purchase behaviour has positive
significant impact on Customer satisfaction. However Attitude and Pricing are not predicting
customer satisfaction significantly. Single unit improvement in Awareness, Determination of
product, Environment deterioration and Purchase behaviour increases Customer satisfaction by
0.145, 0.356, 0.124 and 0.239 units respectively. Determination of product followed by Purchase
behavior and Awareness predicts Customer satisfaction of FMCG more.
CONCLUSION

Evaluation of green marketing strategies is crucial among FMCG sector in order to remain
competitive and profitable whereby it seems that today’s society is not only growing an interest in
green marketing, but also green marketing practices have become an integral part of carrying out
business and more so in FMCG industry that thrives mostly on natural resources for production.
Key takeaways from the study findings that that there are a huge number of male respondents
aware of green marketing strategies of FMCG sector in India. Numerous male respondents
enumerate awareness with the help of word of mouth communication, advertisements, banners and
the like. Green marketing mix plays an important role in experiencing the benefits derived from it.
Challenges that have been identified during the study should be carefully considered as they hinder
the progress of the economy to a large extent. If firms do not embrace the green concept
consequences occur. Green FMCG sector shall not be attractive thereby hindering in the growth
of FMCG segment in India. Determination of the Eco friendly product is the important factors
that plays high role in Green marketing practices. Respondents purchase behaviour, awareness,
pricing also plays moderate role in Green marketing. However the responses show that attitude
and environment deterioration plays minimal role in Green marketing practices. It is noted that
Awareness, Determination of product, Environment deterioration and Purchase behaviour has
positive significant impact on Customer satisfaction. However Attitude and Pricing are not
predicting customer satisfaction significantly. Single unit improvement in Awareness,
Determination of product, Environment deterioration and Purchase behaviour increases Customer
satisfaction by 0.145, 0.356, 0.124 and 0.239 units respectively. Determination of product
followed by Purchase behavior and Awareness predicts Customer satisfaction of FMCG more.

Volume VIII Issue X OCTOBER 2019 Page No : 416

Science, Technology and Development ISSN : 0950-0707

REFERENCE

1. Akter, J. (2012). “Consumer Attitude towards Green Marketing in Bangladesh”, ASA

University Review, 6(1). pp158-166.
2. Chang, N., & Fong, C, M. (2010) “Green product quality, green corporate image, green
customer satisfaction, and green customer loyalty”, African Journal of Business
Management, African Journal of Business Management. 4(13), pp2836-2844
3. Yazdanifard, R., & Mercy, I. E. (2011), “The impact of Green Marketing on Customer
satisfaction and Environmental safety”, In Proceedings of International Conference on
Computer Communication and Management (ICCCM 2011)
4. Dhanjit Pathak (2017) “Role of Green Marketing in Satisfying the Customers and Its
Impact on Environmental Safety” IRJIMS, ISSN: 2394-7969 (Online), ISSN: 2394-7950
(Print) Volume-II, Issue-XII, January 2017, pp17-29
5. Amit Syal1 , Dr Lokesh Jindal2 (2016), “Evaluation of Green Marketing Strategies in
FMCG Segment Authors”, IJETST- Vol.03(06) pp 4107-4114

Volume VIII Issue X OCTOBER 2019 Page No : 417