Consumer Behaviour – An Eco friendly approachManeesha Patel, Namita Raina, Raj Patel

Maratha Mandir’s Babasaheb Gawde Institute Of Management,Mumbai University, India

maneesha_mark18@yahoo.com, rajpatel010203@gmail.com, namitaraina9@gmail.com

Abstract:Objective: The main objectives of the study are to investigate the consumer attractiveness towards eco- friendly products in FMCG sector and their impact of purchasing decision. Also to analyse if they are willing to pay higher prices for the eco-friendly products and to make the necessary recommendations based on the finding about their buying behaviour towards these products. The Paper suggests that the consumers who are highly concerned about the environmental issues and its deterioration are likely to pay higher price for such products. Methodology: Data for this study was collected from all the segments of society, 70 respondents using a structured questionnaire. The questionnaire contains questions to measure awareness of eco-friendly products, consumers’ environmental concerns, trust in the quality of green products, & their willingness to pay higher for the same. Result: The results of the data analysis indicate that few consumers are ready to pay higher prices for these products as they are more environment conscious where as some consumers who are aware of environmental degradation are of opinion that if the same product is available at lesser cost then why to pay the higher cost for it. The survey findings disclose the consumers’ awareness about green products and the impact of environmental concerns on consumer’s purchases.Conclusion: Environmental concerns could emerge as one of the powerful drivers that

influence purchase, but it has actually not resulted in the ability to command a sustainable premium: consumers are willing to buy eco-friendly products, but not pay the higher price. If the consumer’s demands increases the costs of production of eco-friendly products will reduce. Awareness among consumers that their buying choices can make a difference to the environment should be promoted to accelerate the consumption of eco-friendly products.(Key words: eco-friendly products, consumer behaviour, willingness to pay)

I. INTRODUCTIONConsumer’s consumption has been

changed due to rapid economic growth which has resulted in environmental degradation through over consumption & utilisation of natural resources. If the current trend of economic growth & irresponsible consumption patterns continues the environment deterioration would be worsen. The consequences of environmental degradation are global warming, depletion of stratospheric ozone layer, pollution of sea and rivers, noise and light pollution, acid rain and desertification (Ramlogan, 1997).

Hence, shift towards more sustainable consumption patterns is required and it is also important to increase the environment awareness & consciousness among the people. Consumers can reduce their impact on environment by their purchasing decisions. The rising number of consumers who prefer and are willing to buy eco-friendly products are creating opportunity for

businesses that are using “eco-friendly” or “environmentally friendly” as a component of their value proposition.

Businesses that offer products which are manufactured & designed with an environmental marketing mix have a long term competitive advantage. Environmental issues are of importance to consumers who are environmentally conscious when making a purchase. Hence, a better understanding of consumer preferences in this case will allow businesses to acquire more market-applicable approach to sustain in the competitive market.

But first let us know what is Green Product- This is the product that will not pollute the earth or deplore natural resources, and can be recycled or conserved. It is a product that has more environmentally sound content or packaging in reducing the environmental impact (Elkington and Makower, 1988; Wasik, 1996).

In other words, green product refers to product that incorporates the strategies in recycling or with recycled content, reduced packaging or using less toxic materials to reduce the impact on the natural environment. Krause (1993), in his research found that consumers were becoming more concerned about their everyday habits and the impact on the environment. The outcome of this is that some of the consumers translated their environmental concern into actively purchasing green products commitment (Martin and Simintiras, 1995).

Eco friendly products are readily available nowadays. These include small articles from handmade papers bags, jute bags, and recycled papers to Eco friendly fuels and so on. However in spite of a plethora of eco-friendly products being made available, majority of the people are still oblivious about the very existence of such products, which is rather unfortunate.

The most important reason why one should start using eco-friendly products is because of the devastating

effect of harmful gases, non-biodegradable plastics, dangerous gases which not only pollutes the environment but also causes respiratory problems in human beings. Apart from humans, it could also lead to complete extinction of various rare species of animals and birds. It also increases the earth’s temperature, which in turn causes the greenhouse effect. The excess of greenhouse gases especially carbon dioxide in the atmosphere prevents the earth’s heat from escaping the atmosphere and radiates it back to the earth’s surface, thereby increasing the global temperature.

There are lots of harmful effects associated with the usage of plastics, chemicals, non-biodegradable items, which is why, it is high time that we start using eco-friendly products as soon as possible. Also, we should change our lifestyle restricting the usage of coolers only during their utmost need, replacing plastic covers with jute and paper bags, checking the carbon emission of our vehicles and servicing them regularly.

Even the feminine products like earrings, handbags, purses, chains, creams, body wash, and scrubs are available as handmade and handcrafted natural items which can easily replace the artificial plastics ones. There are also organic clothes available in the market made using natural cotton, environment friendly dyes. These eco-friendly dresses and accessories are more appealing as they set new trends in the market and make one feel proud of wearing it by helping in preventing damage to our surroundings.

One can only hope that change is the only thing that is constant, once we decide protecting our nature thereby ensuring our own safe future, and then the rest of it follows. Let’s start using eco-friendly products for a start now and turn the vision of a lovely environment in the future, a reality. 

II. LITERATURE REVIEW:Green purchase behaviour refers to

the consumption of products that are

benevolent or beneficial to the environment, recyclable or conservable and sensitive or responsive to ecological concerns (Mostafa, 2007). As public environmental concern has increased over several decades, consumers who demand products for immediate benefits toward themselves and for the long term benefits toward the environment have emerged and increased (Follows & Jobber, 2000)

Following Berkowitz and Lutterman’s (1968) study, Henion (1972) also thought that consumers with medium or high incomes would be more likely to act in an ecologically compatible manner due to their higher levels of education and therefore to their increased sensitivity to social problems.

Changes in the condition of natural resources and their long term negative impact has led to some realization about human responsibility towards nature. This realization has led to development of eco-friendly consumption patterns among consumers. Grunert (1993) reported that about 40% of environmental degradation has been brought about by the consumption activities of private households. The need for eco-friendly products is gradually increasing on account of persistent raise in the concern for environment related issues. Fortunately, eco-friendly consumption and spending patterns has led the marketers to understand the eco-friendly attitude of the consumers and come up with the marketing mix which preserves environmental resources and at the same time deliver value added products and services (Chitra, 2007).

Belz & Peattie (2008) stated that green marketing and environmental

marketing in the late 1980’s focused on green consumers who would be willing to pay premium prices for more environmentally friendly products. Many consumers choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. Green marketing encourages consumers to use eco-friendly products and manufacturers to develop more environmentally beneficial products.

Clem (2008) adds that going green reflects a social consciousness around saving and advancing the Earth’s natural resources, preserving and protecting them for the sake of civilization. As customers become more aware of environmental issues, there is an increase in the demand for ecological products. This increased awareness of and sensitivity towards environmental issues places certain demands on business functions to become greener.

III. OBJECTIVESThe Main objective of the study is,1. To investigate the consumer attractiveness towards eco- friendly products in FMCG sector and their impact of purchasing decision.

2. To analyse if the consumers are willing to pay higher prices for the eco-friendly products.

IV. RESEARCH METHODOLOGY70 questionnaires were distributed

to various educated segments of society. 63 total questionnaires were received back with a respond rate of 90 per cent. After going through it we found only 50 questionnaires usable of which 50 per cent are males & 50 per cent are females with mean age ranging from 20 to 38 years. The questionnaire was structured as follows.

The questionnaire contained 14 questions. All questions were close ended except the last one i.e. Q.14. where we had asked for their comments. These questions measured consumers’ awareness, knowledge about the environmental issues and eco-friendly products, trust in the performance of eco-friendly products and their willingness to pay more for those products. The questionnaire also included general demographic questions such as age, gender, sex, qualification & occupation etc.

V. DATA ANALYSIS & INTERPRETATION

Table:1 Survey Questionnaires provided to respondents:

Questions Number %Have you heard of any FMCG eco-friendly products? Yes No

473

94%6%

Name any eco-friendly products. Answered Unanswered

2822

56%44%

Through these above questions we got to know that 94% people have heard about the eco-friendly product but when we asked them to name few products only 56% respondents were aware about the eco-friendly products.

Table: 2 Survey Questionnaires provided to respondents:

Questions Number %Are you aware that purchasing eco-friendly products will contribute to the sustainable future? Yes No

428

84%16%

Do you consider your effect on the environment as a consumer before

purchasing general day to day products? Yes No

2723

54%46%

Do you consider your purchase friendly from the environmental point of view? Yes No

3020

60%40%

Do you consider if the product and its package are designed to be recycled before making a purchase? Yes No

2723

54%46%

If the product is labeled eco-friendly, would this information change your purchase? Yes No

3812

76%24%

Going through these questions we came to know that people are aware that their purchase decision will contribute to the sustainable future but still they don’t consider environment while making their day to day purchases. 60% respondents said that they don’t consider their purchases friendly from the environmental point of view. But 76% respondents admitted that if the product is labelled as eco-friendly so that information can change their purchase decision.

Table: 3 Survey Questionnaires provided to respondents:

Questions Number %Have you bought or considered buying eco-friendly products available in the market? Yes No

3614

72%28%

Do you feel there is enough information about Eco-Friendly features while buying the Products? Definitely Yes 1 2%

Average Definitely Not Not sure

33124

66%24%8%

Do you trust the quality of eco-friendly products? Definitely Yes Average Definitely Not Not sure

102956

20%58%10%12%

It can be stated that many i.e. 72% of buyers have bought eco-friendly products but there is lack of information about eco-friendly products in the market. Because only 68% people have agreed that there is enough information about those product. 78% population believe that the quality of eco-friendly product is supposed to be high.

Table: 4 Survey Questionnaires provided to respondents:

Questions Number %Do you agree that the price of eco-friendly products is supposed to be higher? Yes No

2921

58%42%

Are you willing to pay more for eco-friendly products? Yes No

3119

62%38%

If Yes How much are you willing to pay more for eco-friendly products? <5% 5-10% 10-20% 20-30%

111070

22%20%14%0%

42% of respondents believe that the prices of eco-friendly products should not be higher whereas 62% people are willing to pay more for those products which shows that the consumers are more environment friendly and willing to contribute in its sustainable growth.

VI. KEY FINDINGSThe study shows that majority of

sample respondents have heard of eco-friendly products and have knowledge about environmental issues. Approximately 94% respondents stated that they had heard of eco- friendly products & 84% were aware of the fact that purchasing eco-friendly products will contribute to sustainable future.

More than 46% of respondents stated that they did not consider the effect on environment while purchasing general day to day products where as 60% considered that the purchases made by them were correct from environment point of view. A relatively higher proportion of respondents (76%) stated that labelling a product as eco-friendly would change their choice of purchase. Further, 72% of the sample respondents considered buying eco-friendly products and 78% were found to trust the quality of eco-friendly products.

It is also found that the segment of consumers who are willing to pay more for eco-friendly products may not be very large. Even the educated segment which was chosen by us for this study has shown underwhelms response for paying higher prices for these products. Thus, the environment concerns could come up as a powerful drive for influencing the consumers and changing their purchasing behaviour.

VII. LIMITATIONS & FUTURE RESEARCH

The sample size was very small and it was particularly collected from South Mumbai, India, so there was geographical constraints too. The questionnaires were distributed to highly

educated respondents so they tend to be more eco-friendly as compare to others. And also the present paper was conducted using self-reporting questionnaire hence the respondents may be biased especially in regard to the willingness to pay higher price for eco-friendly products.

VIII. SUGGESTIONSThe people are aware & concern

about the green products, so it creates an opportunity for developing green market focusing on more educated consumers. Also consumers want eco-friendly products from those companies which have positioned themselves as Green marketer or Eco-friendly Manufacturer. The right combination of eco- friendly products and service, sales, marketing, and management expertise is needed to target and attract the consumers who may be willing to buy eco- friendly products. Green marketers should identify such segment of consumers and accordingly design and market products at suitable price levels. Since eco-friendly features motivate consumers, hence companies should focus on advertising eco-friendly brand labels, in-store displays and hoardings. Advertisements campaigns may be used to further promote the use of eco-friendly products. Such campaigns can be directed at increasing concerns about environmental issues among consumers and publicize the use of eco-friendly products.

The awareness about the products should be done through advertising so that individual buying behaviour can be changed which can have an impact on the welfare of the environment. It is also important that companies aiming at developing new eco-friendly products should ensure

that products perform competitively.

IX. CONCLUSIONEnvironmental concern

could emerge as one of the powerful drivers that influence eco-friendly purchases; it has actually not resulted in the ability to command a sustainable premium consumers are willing to buy eco-friendly products, but not to pay the higher price.

It may be important to examine in future studies the effect of disposable income on willingness to pay premium. Increased consumer demand will help reduce costs in production of eco-friendly products. Awareness among consumers that their buying choices can make a difference to the environment should be promoted. There is a scope for eco-friendly marketers to capture this market as it has long term scope & growth.

X. REFERENCESBooks:1. Consumer Behaviour- M. Khan2. Consumer Behaviour- Atul K. Sharma3. Research Methodology- C.R. Kothari4. The New Rule of Green Marketing- Jacquelyn A. Ottman

Online:http://greenliving.nationalgeographic.com/going-green-home-products-2370.htmlhttp://www.nytimes.com/2011/04/22/business/energy-environment/22green.html?pagewanted=all&_r=0http://www.thedailygreen.com/green-homes/eco-friendly/green-products-460514