Green Marketing And Its Impact On Consumer Behavior - Case Study Example

Green Marketing and Its Impact on Consumer Behaviour Student name Course name Institution Date of submission Student Number Abstract The aim of this paper is to examine the concept of green marketing and its impact on consumer behaviour. The areas of focus include the explanations of green marketing and consumer behaviours. The importance and benefits of green marketing, green-marketing mix and lastly, green consumer behaviours. It is established that for green marketing to influence consumer behaviour, it should portray a brand’s capacity to reduce or mitigate adverse environmental effects. In the same way as conventional marketing, the concept of green marketing mix has to respond to 4Ps: price, product, promotion, and place. Green marketing has a direct link to consumer’s green purchasing behaviour. Organisations need to incorporate environmental protection messages in their marketing efforts as the primary rationale for their participation in the competitive business environment. Marketing that reveals to consumers that the green products are highly accessible at their conventional stores is also likely to influence the green purchasing behaviour. Lastly, green marketing messages that reveal the personal benefits of a green product to the consumers are likely to influence the purchasing decision of the consumers to buy a green product. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Green marketing 4 Consumer behaviours 5 Importance and benefits of green marketing 6 Greater competitive advantage 6 Reduced long-term costs 7 Accessing new markets 8 Brand loyalty 8 Positive image 9 Satisfactory business environment 9 Marketing Mix 10 Product 10 Price 10 Place 11 Promotion 11 Green consumer behaviours 12 Habit 12 Prices and consumer income 13 Physical availability 14 Personal interests and advantages 14 Conclusion 15 Reference List 16 Introduction Since the 1970s, environmental pollution has become a prevailing concern for businesses and consumers (Loyola, B 2005; Sarumathi 2014). Indeed, current studies on environmental pollution show that greenhouse effects, ecological imbalances, and air and water pollution prevail as the key environmental issues influencing the marketplace and the customer needs (Sharma 2011; 2014). Accordingly, business organisations that incorporate green strategies in their corporate objectives or product development are realising new opportunities for sustainable competitive advantage. This paper examines the concept of green marketing and its impact on consumer behaviour. The areas of focus include the explanations of green marketing and consumer behaviours. The importance and benefits of green marketing, green-marketing mix and lastly, green consumer behaviours. Green marketing Green marketing entails a set of marketing processes aimed at sale of products and services depending on their environmental benefits. The items earmarked for sale may be eco-friendly or manufactured using eco-friendly methods (Saini 2013). Bagheri (2014) defines it as a process of marketing of products that are alleged to be environmentally safe. Hence, the processes of green marketing integrate a wide range of activities, such as modification of the product, altering the production and packaging processes and lastly, making significant modification to advertising. Indeed, it is based on this assumption that Bagheri (2014) suggested three ways to define green marketing. In respect to the retailing definition, Bagheri (2014) suggests that green marketing would then be defined as a process of marketing products viewed to be safe environmentally. In which case, green marketing should show that a product is safe. In regards to the social marketing description, green marketing entails the process of developing and marketing products intended to reduce or mitigate their adverse environmental effects to the environment. In which case, for green marketing to influence consumer behaviour, it should portray a brand’s capacity to reduce or mitigate adverse environmental effects. In view of the environmental definition, green marketing would be defined as an organisation’s efforts intended for production, promotion, packaging, and recycling of product using methods that are compliant with the ecological concerns (Bagheri 2014). Consumer behaviours Perner (2010) defines the buying behaviour as the processes of decision-making and people’s individual actions engaged when buying and using a product or service. According to Promotosh and Vladimir (2011), consumer behaviour consists of processes through which people seek out for, choose, buy, use, and arrange for products and services in order to satisfy their needs and wants. Consumer behaviour may as well be interpreted as the study of people, groups of individuals, as well as businesses and the processes they employ in the selection, acquisition, use, and disposal of goods and services, ideas and experiences with the hope of satisfying their needs and cumulative effects of these processes on the consumer (Shih 2015). This definition points to several important aspects. First, the element of behaviour exists either for an individual, a group of individuals or an organisation. For instance, a group of individuals may influence what type of shoes or clothes a person buys while an organisation, such as the workplace and its ergonomic needs may determine the kind of furniture that should be used in an organisation. In such an instance, Sharma (2014) suggests that marketing messages that show how other people buy green products is likely to influence consumers to buy green products. Again, the element of use and disposal of goods comes about as products are bought for specific purposes after which they are disposed. Indeed, it is the elements of “use” and “disposal” that are at the core of green marketing. In which case, the use of a certain product is of great importance to a green marketer, as it influences the manner in which goods and services become positioned to influence consumer behaviour (Hoyer et al. 2012). As environmental problems tend to come about due to product use and disposal, the two elements are of significant interest. For instance, after the use of motor oil, it may be discarded into sewerage system to save on the fee associated with recycling it. In an instance, consumers will be more motivated to buy eco-friendly products that are advertised as having cost-efficient recycling processes (Johnson et al 2007). Based on these perspectives, it is clear that consumer behaviours are linked to green marketing. Importance and benefits of green marketing Greater competitive advantage Green marketing that influences consumer behaviours enables business organisations to gain competitive advantage. According to Crassous and Gassmann (2012), many business organisations that operate in the current business environment show commitment to green marketing, as they are motivated by the potential competitive advantages linked to going “green” once they manage to influence consumer behaviour. Crassous and Gassmann (2012) explain that the reason for this is since the expectations of the consumers regarding protection of the environment has augmented during the recent decade. From this, it could be reasoned that since more people want environmentally friendly products, the desire has a direct effect on business organisation’s marketing efforts (Promotosh & Vladimir 2011). For this reason, organisations need to incorporate environmental protection messages in their marketing efforts as the primary rationale for their participation in the competitive business environment. Hence, business organisations that incorporate green marketing have a greater potential to realise a competitive advantage over those that do not. This assumption was explored in a recent study by Crassous and Gassmann (2012), who examined how green marketing influence a greater consumer base and ultimately contributes to business organisations’ competitive advantage. In their analysis, the researchers argued that environmentally conscious consumers are looking for organisations that give priority to sustainable production and environmental protection due to the affinity towards protection of nature. Reduced long-term costs According to Eltebrandt (2010), green marketing provides customers with incentives to influence the bottom line and growth of a green company. Delafrooz et al. (2014) shows that although modifying the processes of production requires significant start-up costs, they save on costs in the long-term, particularly when a company manages to command a large customer base through green marketing. An example includes the huge costs associated with installation of solar energy. Here, marketing messages that influence consumer’s purchase decisions show that despite high start-up costs, solar energy provides an effective way of saving on energy costs in the long-run. Kaur (2014) agrees that green marketing brings about reduced cost of production. Accessing new markets Green marketing campaigns that show the availability of green products influence the purchasing behaviours (Delafrooz et al. 2014). Again, businesses that develop innovative products that have minimized environmental impacts create a potential to access new markets, considerably increasing the profits and enjoying competitive advantages compared to the companies that rely on production and sale of conventional products (Cherian & Jacob2012). However, this depends on the potential of the marketing efforts to influence the behaviours of a new customer base. For instance, marketing messages that portray the accessibility of a green product that was previously unavailable in the market provides an incentive for a fresh crop of buyers to go green. Brand loyalty Green marketing with the potential to influence customer’s purchasing behaviours leads to product loyalty. According to Sarumathi (2014), an additional advantage that comes about to a business from the green marketing efforts is brand loyalty. Related studies have also indicated that customers are likely to attach less significance to brand loyalty when the environmental friendly products have intrinsic benefits. According to Cherian and Jacob (2012), green marketing can enable a business develop a devout relationship between the customers and its eco-friendly products. Hence, greater brand loyalty can make a green product be less price-sensitive in such a way that the product is viewed as being premium, although customers still need to buy it (Maiywa 2013). Positive image Green marketing, according to Sarkar (2012), fosters a positive image regarding a business and its products. For this reason, by going green, a business increases its potential to attract more customers, as well as achieve recognition for being a sustainable company. Hence, even customers who have no history of using a business organisation’s products are likely to switch to the green product. Consistent with this point, Prakash (2002) mentions that companies that produce environmentally friendly products also benefit from the public and regulators acceptance, which also means that the company’s positive image would ensure that its promotional process achieve greater sales effortlessly. Prakash (2002) further explains that when a product is positioned in the consumers’ mind, the marketers need to ensure it is occupied in a strategic position to ensure that the consumers easily recall the green products. Satisfactory business environment Green marketing also contributes to a satisfactory customer base once it shows that the business environment is not chaotic. As the process of green marketing requires a holistic approach of bringing all marketing efforts into aligning with the business operations, attaining strategic congruence is possible (Promotosh & Vladimir 2011). In addition to this, an organization will have to build better relationship with its consumer base. This is, however, only possible through marketing efforts, including public relations. Sarkar (2012) also comments that a business is likely to gain mileage when it launches an innovative ecological product and marketing campaign into the marketplace since luring consumers from the existing products within the marketplace is possible. Marketing Mix Marketing mix consists of varied ways a company may use to bring its products to the market. Within the green marketing, the concept of marketing mix has to respond to the environmental concerns (Sarkar 2012). Also known as the 4Ps, marketing mix consists of different elements, such as price, product, promotion, and place. Product When it comes to product, a company has to offer environmentally friendly products that do not contaminate the environment, as well as protect the environment and even eliminates the prevalent environmental damages. As Sakar (2012) points out, a green business needs to show in its marketing efforts that it aims to reduce the extent of environmental pollution within its processes of production. For instance, it may show that the raw materials that make up a product need to be taken out using methods that protect the natural environment. This also means that businesses will need to indicate they are using environmentally friendly designs and methods of production that reduce pollution. For instance, marketing efforts portraying methods of reversed logistics, where customers return packages or wrappings to the manufacturer, can significantly attract consumers who want to conserve the environment and save themselves the costs of recycling used products (Singal et al. 2013) Price The prices for the green products are likely to be higher than the prices of the conventional products. Singal et al. (2013) argue that ‘going green’ comes with significant costs, as it entails various costs like installing new machinery, employee training and recycling wastes, into purchasable items. In his view, these costs are often reflected in the price of a product. In in which case, green products will likely go at premium prices. When it comes to marketing, therefore, the efforts involved in marketing will need to rationalize the expenses and persuade the consumers to pay the premium price. For this reason, the marketing efforts will need rational messages in the advertisements. Place The decision on when and where a product should be made available to the market has a momentous effect on the customers a business needs to attract. Haytko amd Matulich (2008) observed that few consumers are willing to go the extra mile of buying green products just for the sake of it. Hence, businesses that aspire to effectively launch new green products need to position these products extensively within the marketplace to ensure that they not only appeal to the green niche market segment. Singal et al. (2013) show that having a distribution logistics during the processes of green marketing is crucial, particularly when a manufacturer considers advertising to the public that it uses ecological packaging. Promotion According to Singal et al. (2013), green marketing needs to extend to the promotional materials used during advertisement. Hence, the messages that suggest a business has gone green will need to be expressed by consumers using direct marketing, sales promotion, advertisement, and public relations. Promotosh and Vladimir (2011) explain that public relations processes have transformed into the most prevalent platforms businesses use for projecting its “greenness.” In fact, the issue of going green has often been used in public relations exercises since it bridges a business and the society. On the other hand, green advertising may be applied in publicizing products, as well as to give good reasons for their prices and features. Green consumer behaviours According to Erve (2013), environmentally conscious behaviours are different from the conventional consumer behaviours when purchasing a product. The conventional purchase behaviour is guided by an evaluation of its significance and demerit that relate to an individual consumer’s purchasing behaviour. Current studies indicates that customers have become increasingly aware of the severity of the environmental damage, leading to more environmental consciousness and the drive to buy eco-friendly products. Several factors influence green consumers’ behaviour (Kaufmann et al. 2012). Habit Marketers with advertising messages that show that purchase of green products has become a habit for most consumers are likely to influence the consumer’s purchase behaviour. Habits consist of regularly repeated behavioural routines that also tend to come up subconsciously. When it comes to green purchasing behaviour and habits, Kaufmann et al. (2012) points out that habits can negatively yet robustly influence green purchasing behaviour. When consumers purchase green products out of habit, it becomes difficult for consumers to modify their habits into buying green products. Many consumers will also tend to select products they have often purchased using extra efforts in order to change behaviours, as well as be responsible socially. In a recent study by Ramayah et al. (2010), the researcher examined the green purchasing behaviours of cloth diapers and noted that the habit of regularly purchasing diapers is robust that buyers have even stopped washing cloth diapers. Rainer and Rainer (2011) also agrees and further comments that based on a habit, young consumers will copy their parents in making a choice on whether to buy green products or not. What this implies is that out of habit, the decision to buy green products becomes automatic (Sullivan & Heitmeyer, 2008). Hence, in green marketing, the marketers who coin their messages to show that buying green products has become a habit for most consumers are likely to positively affect the purchasing behaviours of the young consumers. Prices and consumer income Marketing messages that show that eco-friendly products command comparable prices to those of the conventional products are likely to influence the consumers towards buying the green products. The reason for this is that the availability of economic means to purchase a green product negatively influences the green purchasing behaviour (Sharma 2011). According to Kollmuss and Agyeman (2006), a basic condition needed for purchase of green products is that the quality, as well as the price of the green products has to be similar to the conventional products if a green consumer has to buy a product. Despite this, green products tend to command higher prices than the conventional products while consumers are unwilling to buy them at an extra cost as Kolkailah et al. (2012) established in his recent research. Findings by Erve (2013) were consistent with that of Kolkailah et al., (2012) and showed that price is a critical barrier to buying green product, as when prices of the conventional products and the eco-friendly products are the same, then consumers tend to buy the eco-friendly ones. Conversely, when the prices of the eco-friendly products are higher, then customers tend to purchase the conventional products (Csutora 2012; Anvar & Venter, 2014). Therefore, when green marketing messages are modified to show that eco-friendly products command comparable prices to those of the conventional products, more consumers are more likely to be influenced to buy the green products. Physical availability The marketing messages that reveal to consumers that the green products are highly accessible at their conventional stores are likely to influence the green purchasing behaviour. The reason for this is since the convenience of finding a green product influence consumers’ green purchasing behaviour. The accessibility of green products relative to the time consumers are keen to spend doing the shopping, has an impact on the quantity of green products they purchase (Erve 2013). Here, green product’s physical availability relates to the convenience of accessing and buying the green product. According to Erve (2013), consumers are more motivated to locate green products at their regular shops where they are used to buying conventional products. Grimmer and Woolley (2012) also mention that green consumer are unwilling to spend an extra effort going to a special shop to buy green products. Therefore, having marketing messages that reveal to consumers the availability of green products at their conventional stores is likely to lead to higher sale of green products. Personal interests and advantages Green marketing messages that reveal the personal benefits of a green product to the consumers is likely to influence the purchasing decision of the consumers to buy a green product. Personal interests and advantages consist of the focus an individual gives to satisfying individual needs and desires. According to Davis (2012), green consumers are likely to assess whether their expected green consumption behaviours are consistent with their personal interests. This finding also suggests that consumers usually lack the capacity to estimate the real effects of making a green purchase. In a related review, Nottage (2008) explains that green consumers tend to buy product when, in addition to the anticipated environmental benefit, the products also provide some benefits that directly satisfy individual needs. For instance, when buying a hybrid vehicle, a consumer expects to benefit from the tangible outcomes, such as low taxation and less cost of fuel, in addition to the feeling that he is protecting the environment. Conclusion In conclusion, green marketing has a direct link to consumer’s green purchasing behaviour. Since more people want environmentally friendly products, the desire has direct effect on a company’s marketing efforts. For this reason, organisations need to incorporate environmental protection messages in their marketing efforts as the primary rationale for their participation in the competitive business environment. Organisations that use green marketing to position their products in comparison to the competitor’s conventional products are likely to build a large customer base, and report better sales and revenues. Marketing messages that portray the accessibility of a green product that was previously unavailable in the market provides an incentive for a fresh crop of buyers to go green. Again, marketers with advertising messages that show that purchase of green products has become a habit for most consumers are likely to influence the consumer’s purchase behaviour. In addition, marketing messages that show that eco-friendly products command comparable prices to those of the conventional products are likely to influence the consumers towards buying the green products. Marketing that reveals to consumers that the green products are highly accessible at their conventional stores is also likely to influence the green purchasing behaviour. Lastly, green marketing messages that reveal the personal benefits of a green product to the consumers are likely to influence the purchasing decision of the consumers. Reference List Anvar, M & Venter, M 2014, "Attitudes and Purchase Behaviour of Green Products among Generation Y Consumers in South Africa," Mediterranean Journal of Social Sciences, vol 5 no 21, pp183-194 Cherian, J & Jacob, J 2012, "Green Marketing: A Study of Consumers’ Attitude towards Environment Friendly Products," Asian Social Science vol 8 no 12, pp.117-126 Crassous, T & Gassmann, J 2012, "Gaining Competitive Advantage Through Green Marketing: How green marketing is used as a competitive advantage?" Halmstad University Marketing report no. 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