Green Marketing of Small and Medium Enterprises - Essay Example

Green Marketing of Small and Medium Enterprises Table of Contents Introduction 3 1 Rationale of Chosen Topic 3 2 Aims and Objectives 4 3 Research Questions 4 2. Methodology 4 2.1 Data Collection Techniques 4 2.2 Research Methods 5 2.3 Questionnaire Technique 5 2.4 Sampling Techniques and Tools 5 2.5 Methods of Analysis 5 3. Summary of Aspects for the Literature Review 6 4. Ethical Considerations 7 Reference List 8 1. Introduction Green marketing can be expressed as a holistic marketing concept where a company is seen to adopt production, operations, marketing, sales, consumption and disposal activities on the basis of techniques which create less negative impact upon the environment. Increasing levels of commercial activities, economic activities and resource depletion have created adverse impacts upon the environment (Chen and Chang, 2012). Firms across the globe have realised that their unchecked manner of resource consumption and creation of environmental footprint would leave irreversible impacts. Such impacts would affect the lifestyle of future generations. The green marketing concept in the current paper is analysed based on the factors such as green value, green trusts and green risks. These factors are seen to create adequate impact upon the purchase intensions of consumers which ultimately derives organizations to undertake various green marketing strategies (Ginsberg and Bloom, 2004). 1.1 Rationale of Chosen Topic The growing changes in climate and the depletion in the quality of vital resources such as air and water have led the human race become alert of their activities. Unless the current generation takes drastic steps for the preservation of important resources, the future generation would not be able to thrive comfortably (Gupta and Ogden, 2009). Monitoring and controlling the environmental impacts of commercial activities is much necessitated (Rahbar and Abdul Wahid, 2011). Hence, environmental studies and formulation of strategies by which sustainability practices are ensured becomes necessitated. There are a growing number of organizations across the globe that undertake the green initiatives in their day to day activities and while developing long term plans in respect of production and operations. Green marketing has therefore become an important objective in the commercial realm, which encourages researchers and students to undertake studies related to green marketing (Chen, 2010). The current project analyses the importance of undertaking green marketing initiatives; the risks, trust and perceived value of green marketing that impacts purchase decisions and how various small and medium enterprises (SME’s) meets the green marketing initiatives. The study can be considered to provide valuable insights regarding how SME’s contribute in meeting green marketing initiatives (Pickett-Baker and Ozaki, 2008). The findings from the current study may encourage students to undertake future research works related to the same subject matter. The study also evaluates understanding the aspects which influence the green purchasing intentions of consumers (Orth and Green, 2009). 1.2 Aims and Objectives The primary aim of the current paper is to understand the concept of green marketing and its associated risks, value, trust and consumer purchase intentions. The study has been carried out with reference to the firms in the U.K. The current paper tries to evaluate the concept of green marketing based on the following important objectives: Importance of green marketing and its related concepts. The importance of green marketing and perceived value, risks and trusts upon purchase intentions that are related to the concept of green marketing in the U.K. Green marketing initiatives and its execution by the SME’s in Europe and specifically in the U.K. 1.3 Research Questions 1) How important is green marketing, what are its characteristics and objectives? 2) How strongly are green marketing initiatives undertaken by the SME’s in the U.K in respect to green marketing? 3) How strong is the effects of perceived green value, risk and trust upon the purchase intentions of consumers and how are the same addressed by SME’s in the U.K? 4) Does sustainability related measures facilitate in meeting green marketing objectives as well? 2. Methodology 2.1 Data Collection Techniques The data collection techniques followed in the current paper incorporates both primary and secondary data. The secondary data collection techniques mainly involve collection of data from various books, journals and online publications. They form a strong source of information for developing theoretical frameworks (Steinhauer, 2002). The primary source of information used in the current research work is essentially a questionnaire survey. Primary sources of information are mainly collected through the efforts of the researcher himself. Hence, the reliability and the utility of the primary techniques in meeting the requirements of the research objectives are higher. However, to form theoretical explanation and reach concrete conclusions, the data from secondary sources are deemed essential (Kumar and Phrommathed, 2005). 2.2 Research Methods The current study is mainly based on quantitative analysis technique. The information collected from the questionnaire survey would be analysed using various statistical processes such as descriptive statistics (Patton, 2005). They would facilitate understanding the importance of factors on the basis of quantifying the same. In order to be able to analyse the responses statistically, the options provided for each questions are suitably codified. Quantitative analysis facilitates forming stronger conclusions by establishing mathematical relationships between the factors incorporated in the study. The questionnaire survey would be carried out targeting the consumers and the managers of various organizations in the U.K (Neuman, 2005). 2.3 Questionnaire Technique The survey would be carried out with essentially the consumers in the U.K (Dornyei, 2007). The questions for the survey would be framed in a manner such that they would facilitate in meeting the set research objectives of the paper. The survey would be based on the likert scale technique, so that the options selected by the respondents can be codified and analysed (Kothari, 2004). 2.4 Sampling Techniques and Tools The sampling technique followed for selecting the respondents from a larger population is essentially the stratified sampling technique. The stratified sampling technique is used when the population consists of different groups of individuals or can be subdivided into numerous categories (Patton, 2005). However, to ensure that each group is suitably represented in the final sample, the systematic sampling is executed as well. Hence, the sampling technique used for analysing the results of the survey can be stated to the stratified systematic sampling. The sample size is about 150 consumers in the U.K, as large sample data will be more realisable in data analysis using SPSS (Marczyk, DeMatteo and Festinger, 2005). 2.5 Methods of Analysis The information collected from the secondary sources is mainly analysed theoretically. A descriptive approach is henceforth adopted. The information gained from the questionnaire survey is mainly analysed using statistical techniques such as SPSS (Statistical Package for Social Sciences). Using the software, the researcher analyses the responses received incorporating statistical measures such as mean, median, mode amongst others. Such mathematical evaluation facilitates in better understating the responses from the sample (Mackenzie and Knipe, 2006). It becomes easy to accurately state which green marketing factors impact the consumers purchase behaviour more strongly. In this respect, the factors evaluated are mainly green risks, trusts and value. Also, the system aids in understating the strongest factors which impact the development of green marketing in SME’s and the most essential advantages gained from the same (Welman, Kruger and Mitchell, 2005). 3. Summary of Aspects for the Literature Review Small and medium enterprises constitute the major sections of most economies across the globe. Hence, their activities and the manner in which they execute various commercial functions create a strong impact upon the environment. General research such as that conducted by Gilg, Barr and Ford (2005) reveals that almost organizations falling under the category of SME’s in the European Union comply with the environmental regulations. A large number of the companies are doing so as they do not want to face legal actions in the future. A considerable number of SME’s also believe that environment protection is a part of their business objectives. Adaptec is one such SME that that offers environmentally conscious products and is actively committed to the green marketing campaign by ensuring that their green claims are credible (Dornyei, 2007). There also exists a number of SME’s in the segment who is contributing beyond what is actually required (Dornyei, 2007). Only a small number of SME’s in the European Union consider that green marketing and such environment related sustainability practices are not very important. The green marketing initiatives undertaken by most organizations in the EU consists of aspects such as minimization of wastage, saving important resources such as water, utilization of recycled materials, using environmental friendly packaging and transportation mechanisms (Neuman, 2005). Cigny is one of the top SME’s which follows the green marketing strategy for reducing their power consumption and constantly invents fresh ideas to engage consumers in preventing waste (Neuman, 2005). Researchers such as Peattie (2010) have pointed out that there exists a positive relationship between customer purchase intentions and the perceived green value. The existence of environmental value in the production and operation systems of a firm enhances their goodwill and thereby is seen to create greater demand for their products and services. The impact of perceived risk upon the purchase intentions of consumers is seen to be negative (Dornyei, 2007). If products are laden with risks, they would generally prefer not to purchase the same. Green perceived risks are generally related to the negative impacts a product would create due to the purchasing intentions of consumers (Dornyei, 2007). However, on the other hand, the green perceived trusts and the purchase intentions of consumers are positively related (Chen, 2010). It is generally considered that firms which adopt green marketing have huge concern for the stakeholders of the present and future. Hence, it is easier for consumers to trust the brand (Ramayah, Lee and Mohamad, 2010). 4. Ethical Considerations The findings and conclusions drawn in respect of the current research is mainly dependent upon the responses provided the sample population. Hence, the responses obtained through carrying out the questionnaire survey are crucial. The respondent’s discretion and unbiased participation in deemed essential. Also it is essential for the researcher to ensure the authenticity and the reliability of the information procured from primary sources (Scandura and Williams, 2000). Reference List Chen, Y. S. and Chang, C. H., 2012. Enhance green purchase intentions: The roles of green perceived value, green perceived risk, and green trust. Management Decision, 50(3), pp. 502-520. Chen, Y. S., 2010. The drivers of green brand equity: green brand image, green satisfaction, and green trust. Journal of Business ethics, 93(2), pp. 307-319. 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Green product purchase intention: Some insights from a developing country. Resources, Conservation and Recycling, 54(12), pp. 1419-1427. Scandura, T. A. and Williams, E. A., 2000. Research methodology in management: Current practices, trends, and implications for future research .Academy of Management journal, 43(6), pp. 1248-1264. Steinhauer, E., 2002. Thoughts on an Indigenous Research Methodology. Canadian Journal of Native Education, 26(2), pp. 69-81. Welman, C., Kruger, F. and Mitchell, B., 2005. Research methodology. Boston: Oxford University Press. Read More