Strategy of Pro Environmental Marketing

International Journal of Marketing and Management Research
Vol. 8, Issue 10, October 2017, Impact Factor; 5.108 ISSN: (2229-6883)
www.skirec.org Email Id: skirec.org@gmail.com
STRATEGY OF PRO-ENVIRONMENTAL MARKETING: IMPACT ON CONSUMER PURCHASE DECISION
Poonam Sharma
Research Scholar, University Business School, Panjab University
ABSTRACT
PURPOSE: The purpose of the study is to understand the general environmental belief and
behaviour of consumers of Chandigarh. To what extent belief and behaviour affects consumer
product selection. Study also aims at understanding the perception about quality of pro-
environmental/green products and knowing the role of word- of mouth in quality perception.
DESIGN/METHODOLOGY/APPROACH: Random sampling method is adopted for getting the
questionnaire filled.
FINDINGS: The study found the significant gap in general environmental belief and behaviour of the
consumers. Environmental behaviour found to be affecting consumer buying behaviour more than
the environmental belief. Own experience of consumer found to be the relatively more important
factor for the formulation of quality perception about green/pro-environmental products, than
word- of- mouth.
RESEARCH LIMITATIONS/IMPLICATIONS: The focus of study is on consumer’s perception only
Retailers and marketing executives and managers of companies could be contacted to have more
understanding of different pro-environmental strategies being followed by different brands.
MANAGERIAL IMPLICATIONS: Companies should focus more on green production and should make
the marketing communication of greenness of its products proper. As, although consumer’s found to
have preference for green products than non- green products, but there is gap in the way green
products are marketed to them and the way consumer expects. Few consumers also reported
difficulty in identifying green products which offers scope for more intensive development in
marketing communication strategy.
CONTRIBUTION: The contribution of the paper is empirical testing of the variables and analyzing the
relationship thereof.
KEY WORDS: Environment behaviour, Environment belief, Pro-environmental strategies, marketing
communication.
An International Double-Blind, Peer Reviewed, Refereed Open Access Journal - Included in the International Indexing Directories
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INTRODUCTION
The green movement has been rapidly expanding in the 21st century; also consumers are taking
responsibility and doing the right things. In the past, successful marketing has aimed at recognizing
the existing market trends and then positioning products, services and brand in a way that
compliments and supports buyer intentions. Some studies on the consumption of pro- environment
products or green products have shown that perceived performance of product is a main obstacle in
preference of green products. (Ottman 1998) found that 41 per cent of consumers feel reluctant to
buy green products due to perceived low quality of these products. (Alston and Prince Roberts 1999)
found, in their research related to environmental strategy and new product development, that there
was a willingness among respondents to pay more for environmental improvement in cleaning
products than to sacrifice the aspect of product performance of green or pro-environmental
products. One of the emerging categories of product is GPIs (green product innovations), where the
performance of green product was found to be significantly better than traditional or conventional
products (Peattie, 1992).Further (Porter and van der Linde, 1995) through his study asserted that GPI
products have been good solution for harmonizing environment and economy. Companies have
increasingly adopting and introducing GPIs into their product development processes over recent
decades. However, in his research on green product innovation strategy,( Driessen 2005) found that
it is important to maintain in a competitive advantage, an optimum level of greenness is required
between greenness and innovative performance , therefore avoiding the objective of merely
capturing the niche green/pro-environmental product market. Therefore it is impertinent to
consider various factors influencing the consumer’s green product selection. This paper aims at
examining how consumers’ belief and attitudes, along with their exposure to information, affects
their behaviour and perceptions about the of product performance, with a particular focus on the
role of marketing communication and also knowing how marketing influences, consumer attitudes
towards green products leading to purchasing decisions. The objective of the study is; (1) To study
consumer belief and behaviour on pro-environmental products. (2) To know awareness of
consumers about the availability of environmentally friendly products. (3) The influence of
marketing efforts put in by marketers with reference to Consumers.
The review of the literature on “green” behaviour has been done under four themes:
1. Consumer belief and behaviour;
2. Consumer’s response to marketing of being pro environmental;
3. Trust in the product; and
4. Consumer’s exposure to product marketing communication.
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LITERATURE REVIEW
CONSUMER BELIEF AND BEHAVIOUR
Hoyer and Mac Innis (2004) stated in his study that consumers’ value and belief need to be given
importance, while examining and analyzing the influences on consumer’s purchase decisions. (Reser
and Bentrupperbaumer, 2005; Stern, 2000) further asserted that, environmental values play an
important role in pro-environmental behaviour. Values of a person affect his or her belief, which in
return influences personal norms of customers that further lead to preference for green product of
pro-environmental behaviour. However, an individual who is conscious and concerned about the
environment does not necessarily, behave in a green way when it comes to purchase of products.
This causes value and action gap. (Kollmuss and Agyeman, 2002) explored different internal and
internal factors that encourage or lead to pro-environmental behaviour and found some competing
and conflicting factors, directly related to consumers’ daily purchase decisions. (Ohtomo and Hirose,
2007) found that people, who are environmentally conscious and aware, do not necessarily behave
in a pro environmental way.
H1 Consumer environmental belief has significant impact on general environmental behaviour of
consumers
ENVIRONMENT BELIEF, BEHAVIOUR AND BUYING BEHAVIOUR
People’s attitudes affect their feelings and thoughts, and thus influence the behaviours such as
purchasing behaviour (Hoyer and MacInnis, 2004). This implies that marketers should make efforts
to change consumers’ attitudes so that they can influence consumers’ behaviour and decision
making process. Brands are generally considered to be effective because they put effect on the
affective and important aspect i.e. rational reasons are translated into emotional preferences
(Travis, 2000). Thus, brands can change consumer attitudes to increased sustainable consumption.
For example, affective marketing could change passive green consumers who are willing to pay
premium prices for pro-environmental products to greener consumption (Ottman, 1998).
Consumer’s purchase and consumption of products and services is often related to attempts to
achieve, or maintain, ideals conceived either by the self or others (Hawkins et al., 1998). Some
consumers may have an ideal self-concept of being environmentally responsible, but the actual self-
concept may fall far short of this ideal, with no significant change towards a greener lifestyle. Thus,
products and companies that effectively create the image of concern for the environment are likely
to be supported by these consumers.
H2 Consumer environmental belief has a significant impact on consumer buying behaviour
H3 Environmental behaviour has a significant impact on consumer buying behaviour
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H4 Environmental behaviour and belief has significant impact on consumer buying behaviour
CONSUMER EXPOSURE TO PRODUCT MARKETING COMMUNICATION
Consumer has relatively less opportunity to form an attitude about a green product than about
conventional or traditional products, unless they have put any extra efforts to get the knowledge of
a particular green product. This is due to the fact that producers of environmentally less damaging
products, often make no or little efforts for green or being pro-environmental claims in their
advertising (Rand Corporation, 2004). However, in advertising, where reference groups are used
frequently, they are very rarely associated with green products. In general green products are often
considered to be niche products, and marketing dominated influences for green products and
companies are few (Charter et al., 2002). Pooley and O’Connor (2000) argue that providing
information about environmental issues to consumer does not necessarily encourage pro-
environmental behaviour or attitudes among consumers. (WFA et al., 2002) asserted that,
advertising is more effective when it tries to appeal, values which can further become driver to
consumer decision about product selection.
H5 Pro-environment marketing communication is effective in influencing consumer’s purchase
decision.
TRUST IN THE PRODUCT
Hoyer and Mac Innis (2004) found word of mouth as major influencing factor on the purchase of
household or food products’, further it is found to be four times more effective than the persuasion
by sales assistants in brand switching. On the other hand, negative word-of-mouth may be damaging
to the company. The relative performance of green products is often considered to be inferior
(Ottman, 1998) early versions of green products were not at par with conventional products and
didn’t have good performance and this previous experience have been reflected by word-of-mouth,
and not redressed by later stage experience of customers.
H6 Consumers will trust green products and will judge green products based on previous experience
or word-of-mouth.
ENVIRONMENTALLY SUSTAINABLE/PRO- ENVIRONMENT PRODUCTS
Defining environmentally sustainable or pro-environment products is difficult and debatable. In a
narrow sense, there is nothing which can be regarded as truly sustainable or green product, because
all products that we purchase, own, use and discard in our everyday lives will have more or less
negative impact on environment, at some stage in their lifecycles. Therefore, products can be
classified according to the scale of impacts, and a quality line can be drawn (Cooper, 2000). If a
product has a relatively low environmental impact, it is regarded as an environmentally sustainable
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product. Another definition of a pro-environment product, for consideration in this paper, is that
products should be readily available for purchase of consumers and include those supplied by
companies with a reputation for reducing negative environmental impacts from their manufacturing
processes.
Table 1: Reliability coefficients
Environment Environment belief Consumer buying
behaviour behaviour
Number of dimensions 8 12 6
Cronbach Alpha 0.789 0.723 0.821
Values of 0.70 and above testify strong reliability of the scales
METHODOLOGY
For data collection simple random sampling was used. Markets of sector 7, 15 and 22 were selected
using random table from the list of sectors in Chandigarh. The primary data was collected through
questionnaire contains the HEP-NEP questions (Dunlap and van Liere, 1978) to measure consumer
general environmental belief with the possible responses of strongly disagree to totally agree.
The second part included questions about environmental behaviour, with six questions related to
purchasing behaviour based on previous HEP-NEP general environmental belief questions. RSW
Green Gauge questions (Ottman, 1998), which segment green consumers by behaviour. The results
were measured on a 5 point likert scale. The next part of the questionnaire covered marketing and
branding issues related to consumer awareness and again, the HEP-NEP environmental questions
were used to contextualize the responses to the consumer product questions again measured at 5
point likert scale.
Description of respondents
gender Total
male female
15-29 13 9 22
30-44 7 16 23
age
45-59 5 7 12
69 or above 7 6 13
Total 32 38 70
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Educational description of respondents
gender Total
male female
10th or 12th 5 4 9
graduate 14 11 25
education
pg 12 22 34
doctorate 1 1 2
Total 32 38 70
DATA ANALYSIS AND FINDINGS

DATA COLLECTION AND ANALYSIS
The first part of the questionnaire contains HEP-NEP questions (Dunlap and van Liere, 1978) to
measure general environmental belief with the possible responses of strongly disagree, disagree,
neutral, disagree and strongly disagree.
H1 Consumer environmental belief has significant impact on general environmental behaviour of
consumers
Relationship between Consumer Environmental Behaviour and Environmental Belief
Table 2: Regression model summary, impact of environmental belief and environment Behaviour
in consumers of Chandigarh
Independent variable Regression T value Sig
coefficient
Constant 2.912 4.570 .000
environmental belief .395 2.164 .041
Multiple R .254
R2 .064
Adjusted R2 .051
F 4.683 0.34
Sample size. 70
Consumer environment
behaviour
Consumer environmental belief 0.254 .034(sig)
There is weak correlation in consumer environment belief and behavior.
A simple linear regression was conducted to predict environmental behaviour from environmental
belief. F (1/68) =4.683, p<.05) R2=.064
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Since p<.05 the H1 is accepted. But very low R2 indicates that the model is not a good fit model. And
there is gap in environmental behaviour and belief.
H2 Consumer environmental belief has a significant impact on consumer buying behaviour
Regression model summary: impact of environmental belief on consumer buying behaviour in
consumers of Chandigarh
coefficient
Constant 4.816 2.800 .000
environmental belief .400
Multiple R .280
R2 .078
2
Adjusted R .065
F 5.766 .019
Sample size. 70
A simple linear regression was conducted to predict consumer buying behaviour from environmental
belief. F (1/68) =5.766, p<.05) R2= .078
Since value of R2 is very low thus model is not a good fit but the H2 is accepted as p<.05.
Environment belief is explaining 7% of variation in Consumer buying behaviour. And rest 97 % is due
to other factors which have not been covered in present study.
H3 Environmental behaviour has a significant impact on consumer buying behaviour
Regression model summary- impact of environmental behaviour on consumer buying behaviour in
consumers of Chandigarh
coefficient
Constant 4.022 1.337 .000
environmental 8.659 .666
behaviour
Multiple R .724
R2 .524
2
Adjusted R .517
F 74.975 .000
Sample size. 70
A simple linear regression was conducted to predict consumer buying behaviour from environmental
behaviour. F (1/68) =74.975, p<.05) R2=.524
Since p<0.05 is thus model is a good fit and the H3 is accepted. Environment behaviour found to be
explaining 52.4% variation in consumer Purchase decision
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H4 Environmental behaviour and belief are significantly related to consumer buying behaviour
coefficient
Constant 1.957 .931
.055
Environment belief .146 1.187 .239
Environmental .642 .698 8.099
behaviour
Multiple R .731
R2 .534
2
Adjusted R .520
F 38.419 .000
Sample size. 70
A simple linear regression was conducted to predict the consumer buying behaviour from
environment belief and behaviour F (2, 68) 38.419=, p<.05) R2=.534Since p<.05 model a good fit and
the hypothesis is accepted.
H5 Pro-environment marketing communication is effective in influencing consumer’s purchase
decision
Third part if the questionnaire covered branding and marketing issues related to consumer
awareness. And each item is been treated as a separate variable. First item was about the feeling of
consumers when brands are marketed as environment friendly. Mean of 4.41 with low standard
deviation is clear indication that majority of the people have strongly agreed to the statement.
The 7th and 8th statement of third part of the questionnaire was related to expectation of consumers
about the marketing communication from the manufactures producing green or pro-environmental
products again majority of consumers have expected and demanded to be informed of new
improved design/formulas. Mean score of all respondents is 4.07. Respondents also strongly agreed
that marketing communication should also aim at informing consumers about environment
friendliness of the product. From the results it is clear that the consumers by more when products
are marketed as environment friendly Thus H5 is accepted.
H6 Quality perception of green product is significantly related to word of mouth
Statement no. 3 of the third part of the questionnaire was aimed at knowing the quality perception
of respondents regarding the performance of green products. The mean score is 2.90, which clearly
indicates that majority have strongly disagreed to disagree with the statement. Fourth and fifth
statement was to know about basis of perception made by respondent, about the performance of
green product. Both the statements have mean score 3.33 or more which means that both word of
mouth and own experience of customer is important for quality perception but own experience of
customer with the product (mean score 3.73) found to be more important factor of quality
Page 27
perception. H6 is thus accepted as word of mouth found to be significant factor little behind own
experience of customer.
Ninth item of third part of questionnaire was about the opinion related to way green marked are
presently being marketed to them, mean score of 3.53 indicate that there is gap in the way green
products are marketed to them as people find difficulty in recognising the green products.
Sr. Items Mean Std.

no deviation
1 I feel good about buying brands which are less damaging to the 4.41 .602
environment
2 It is easy for me to identify these products 3.69 .986
3 Green products are inferior in performance to non-green products 2.90 1.342
4 I have formed this opinion because people I know and trust told 3.33 1.201
me so
5 I have formed this opinion because of my own 3.73 1.048
recent experience of a product
6 I trust well-known brands to make products which work 3.96 .806
7 In the marketing communication about a product, I expect to be 4.07 .688
informed of new improved formulas/design.
8 In the marketing communication about a product, I expect to be 4.29 .819
informed of how environmentally friendly a product is
9 Green products are marketed to me in a way which I never notice 3.53 1.046
10 Green products are marketed to me in a way which I find really 3.44 1.072
engaging and relevant to my lifestyle
DISCUSSION AND FINDINGS

Consumer’s Belief/values, Attitudes towards Environmentally Friendly Products: No respondent
strongly disagree, where good majority of the respondents strongly agreed that they would choose
environment - friendly brands and products. Respondents reacted positively about buying brands
which are less damaging to environment.
Consumer Awareness: Consumers in present research expressed, through their responses that
identifying environmentally sustainable products on the shelves of the store is slightly difficult for
them. This speaks about the consumer unawareness about the availability of green product and pro-
environment brands. Labeling of products should provide information about the extent of greenness
of the products to increase consumer’s awareness.
Page 28
Efforts of Marketing: Marketing plays a pivotal role in bringing consumer awareness and
encouraging consumer’s purchase decisions. Some of respondents agreed that they find difficulty in
identifying green products. This provides scope enlarging the existing marketing efforts put by the
green marketers in bringing consumer awareness.
Product Performance and Trust: Survey reveals that the green product performance was
significantly affected by environmental behaviour of consumers than belief. Further, it is expressed
by respondents in the survey that they are likely to trust well known products and judge green
products basing on their previous experience. This supports Hong-Youl and Perks’ (2005) argument
that brand trust is based on experience, information and satisfaction is thus is confirmed in the
present study.
This study also confirms the existence of an environmental value-action gap among customers in
their purchase decisions. This indicates, gap between consumers’ belief and behaviour over being
green when it comes to purchasing decision.
This paper has also highlighted various aspects of consumer behaviour and shown that consumer
preference for greener and pro-environmental goods could be influenced by marketing. Products
which are given greater exposure and marketing communication is able to make consumers aware,
about greenness of product will be more likely to sell in greater numbers. Pro-environmental values
are more likely to result in more pro-environmental behaviour when values and belief are specific
enough, the green action aligns with consumers’ subjective interests, and product attributes are
positively perceived.
A major barrier in the purchasing of green products is: concern over whether the product will
perform as expected. However, consumers generally trust the performance of well-known brands,
so green products that work well and do not make over inflated green claims could sell successfully
under well-known brands.
The current low levels of consumer awareness about global warming, India’s brands need to help
raise consumer consciousness. Indian manufacturers have yet to find a market for green products,
even as consumers have a low awareness of them because of the insufficient efforts made by the
marketers. But by embracing the green imperative, and investing in green initiatives
Page 29
CONCLUSION
This present study confirms the existence of an environmental value-action gap, a gap between
consumers’ belief and behaviour over being green. This paper has highlighted various aspects of
consumer behaviour and has also shown that, consumer preference for greener goods could be
influenced by making pro- environment marketing strategies. Products given greater exposure will
be more likely to sell in greater numbers in the market. Pro-environmental values are more likely to
result in more pro-environmental behaviour when values and beliefs are specific enough, there is
possibility that, green action aligns with consumers’ subjective interests, and also product attributes
are positively perceived by customers. A major barrier or obstacle in the purchasing of green
products is: concern about whether the product quality is as expected by customers. But the
perception of customers is changing slowly due to increased emphasis on quality by manufactures
and increased competition in the market. Consumers generally trust the performance of well- known
brands, so green or pro-environmental products that work well and do not make exaggerated green
claims could sell more and sustain long in the market, under well-known brands.
The existing relatively low levels of consumer awareness about global warming, India’s brands need
to help raise consumer consciousness about the general environment. Indian manufacturers have
yet to find a market for green products, even as consumers have a low awareness of them because
of the insufficient efforts made by the marketers. But by embracing the green imperative, and
investing in green initiatives
Page 30
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International Journal of Marketing and Management Research

STRATEGY OF PRO-ENVIRONMENTAL MARKETING: IMPACT ON CONSUMER PURCHASE DECISION

Educational description of respondents

DATA ANALYSIS AND FINDINGS

Sr. Items Mean Std.

3 Green products are inferior in performance to non-green products 2.90 1.342

DISCUSSION AND FINDINGS

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