FACTORS INFLUENCING CONSUMER BEHAVIOUR

AND
7P’s OF GREEN MARKETING
*Mrs. Sangeeta Jain, Associate Professor Soham Institute of Management, Dewas
**Dr. Alok Mittal, Professor –Faculty of Management Acropolis Technical Campus, Indore
ABSTRACT:

Growing environmental-consciousness among societies is slowly beginning

in India. With society increasingly conscious to the environment, it affected
consumers’ decision in choosing a product. For green marketers, this
phenomenon is seen as opportunities to attract consumers by implementing
green values in the marketing process. Each elements of 7Ps green marketing
are evaluated based on its importance to buy green product. This study aims
to determine which attributes of 7P’s green marketing that perceived as
important and affect most consumers’. This research is conducted by
distributing questionnaires that was addressed to consumer age above 18
years and the data was analyzed using factor analysis. Results indicate that
attribute in “People” dimension of 7Ps green marketing is considered as the
most important and most affecting in consumers’ willingness to buy. The
findings can be used as suggestion for managers and producers to generate
the 7p’s green marketing strategy for their green products.

KEY WORDS: Green product, Consumer, 7P’s,Marketing mix.

INTRODUCTION: There is growing interest among the consumers all over the world
regarding protection of environment. Worldwide evidence indicates people are concerned
about the environment and are changing their behavior. As a result of this, green marketing
has emerged which speaks for growing market for sustainable and socially responsible
products and service. Green growth has risen to the top of the agenda for many businesses
from 2007-09. Eco-friendly products launching has increase by more than 500%. A recent
IBM survey found that 2/3 of executives see sustainability as revenue driver and half of them
expect green initiatives to confirm competitive advantage.

This dramatic shift in corporate mind set and practices over the past decade reflects a
growing awareness and environmental responsibility. It can be a platform for both growth
and differentiation.
GREEN MARKETING: Defining green marketing is not a simple task where several
meanings intersect and contradict each other, an example of this will be the existence of
varying social, environmental and retail definitions attached to this term. Other similar terms
used are Environmental Marketing and Ecological Marketing.

According to the American Marketing Association green marketing is the “marketing of

products that are presumed to be environmentally safe”. Green products issues are complex
in nature. They include the environmental impact of the entire life cycle of the product. Any
product that is made, used or disposed of in a manner that significantly reduces the harm that
it would otherwise affect the environment, can be considered as green product. Companies
make specific changes in the product development, manufacturing, promotion and
distribution so that the products do not harm the environment.

Cooper.T (2000), has said that green products are complex in nature. In a strict sense, there
is no such thing as a truly sustainable, as all products we buy, own, use and discard in our
everyday lives will have negative environmental impacts at some stage in their lifecycles.
However, products can be classified according to the scale of these impacts, and a quality
threshold can be drawn if a product has a low environmental impact, it is regarded as an
environmentally sustainable product (green product).

Kotler (2006) has defined marketing as “a societal process by which individuals and groups
obtain what they need and want through creating, offering, and freely exchanging products
and services value with others”. As the concerns enhanced, environment, sustainability, and
green marketing became more popular terms.

Definition of green marketing, for consideration in proposed research, is that “Green

Marketing is an art of creating an awareness among consumers about carefully planned and
developed eco compliance, products and services using competitive pricing, promotion and
distribution strategies that leads to increased uptake of product and services, increase in ROI
and finally consumer satisfaction” If the market for green products is to become mainstream,
it is important to look at what factors influence the consumer’s selection process.
OBJECTIVES OF THE STUDY: The objectives of this paper are as follows –
 To investigate the consumer behavior towards the green product and see how they
take environmental and other factors in consideration when making choices on
buying.
  To develop the marketing mix for green products.

LITERATURE REVIEW:

This marketing framework invented by Booms and Bitner (1981) which is an extension of the
4Ps theory by McCarthy (1960) . An exploratory survey of using 7Ps marketing mix as
generic framework was conducted by Mohammed and Pervaiz (1995). Research was
conducted on respondents UK’s Marketing Education Group (MEG) Conference in Salford
(1992) and the European Marketing Academy (EMAC) Conference held in Aarhaus,
Denmark (1992).Pranam Dhar and Soumyajit Das (n.d) described the 7Ps of green marketing
are product, price, promotion, place, people, process, physical evidence.

GREEN PRODUCT MARKETING MIX:

1 . Product : According to Keller Man (1978), the ecological objectives in planning products are
to reduce resource consumption and pollution and to increase conservation of scarce resources.
These can be made from recycled materials or from used goods. Green products not only save
water, energy and money, but also reduce harmful effects on the environment. Green chemistry
forms the growing focus of product development. The marketer's role in product management
includes providing the product designers with market-driven trends and customer requests for
green product attributes such as energy saving, organic, green chemicals, local sourcing etc. So
from the above discussion the first hypothesis can be:
H01. Quality of product will induce consumers to purchase green products.
2. Price: Price is a critical and important factor of green marketing mix. Most consumers will
only be prepared to pay additional value if there is a perception of extra product value. This
value may be improved performance, function, design, visual appeal, or taste. Green
marketing should take all these facts into consideration while charging a premium price. So
from the above discussion hypothesis can be:
H02. Reasonable price will induce consumers to purchase green products.
3 Promotion : Green promotion involves configuring the tools of promotion, such as
advertising, marketing materials, signage, white papers, web sites, videos and presentations
by keeping people, planet and profits in mind. Green marketers can attract customers on the
basis of performance, money savings, health and convenience, or just plain environmental
friendliness, so as to target a wide range of green consumers. There are three types of green
advertising:
 1. Ads that address a relationship between a product/service and the biophysical
environment.
2. Those that promote a green lifestyle by highlighting a product or service
3. Ads that present a corporate image of environmental responsibility.
So from the above discussion hypothesis can be:
H03. Better market communication (promotion) will induce consumers to purchase
green products.
4. Place: The choice of making the green products available at selected locations will have
significant impact on the customers. Very few customers will go out of their way to buy
green products. Green place is about managing logistics to cut down on transportation
emissions, thereby in effect aiming at reducing the carbon footprint. So from the above
discussion hypothesis can be:
H04. Availability of product will induce consumers to purchase green products.
5. People: People are those who are involved in establishment of green services/products.
The provider should have green mindset to be implemented in their activities. Schwartz’
(1977) suggests that pro-environmental behavior becomes more probable when an individual
is aware of harmful consequences to others and when that person takes responsibility for
changing the offending environmental condition Vice versa. Most social change issues,
including "green" initiatives, are too complex for one person or group to handle. An
association with other groups and initiatives strengthens the chance of efficiency. So from the
above discussion hypothesis can be:
H05. Consumers will likely to purchase green product that perceived better for self, family
and society.
6. Process: According to the ministry a product is examined in terms of following main
environmental impact:
Firstly, they have substantially less potential for pollution than other comparable product in
production, usage & disposal. Secondly, they are recycled, recyclable, made from recycle
products or biodegradable, where comparable products are not. Finally, they make significant
contribution to saving nonrenewable resources including nonrenewable energy sources and
natural resources compared to comparable products. So from the above discussion hypothesis
can be:
H06. Consumers will likely to purchase more from manufacturers that are seen to be pro-
environmental.
7. Planet: There is a growing concern among the consumers all around the world regarding
protection of environment. Worldwide evidence indicates that people are concerned about the
environment and are changing their behaviour. As a result of this, green marketing has
emerged, which speaks for growing market for sustainable and socially responsible products
and services. Growing awareness among the consumers all over the world regarding
protection of the environment in which they live, people do want to bequeath a clean earth to
their offspring. Various studies by environmentalists indicate that people are concerned about
the environment and are changing their behavior pattern so as to be less hostile towards it. So
from the above discussion hypothesis can be:
H07. Consumers will likely to purchase green product that protect environment and are safe
for future generation.
RESEARCH METHODOLOGY:
The methodology of this research consists of nine main stages; problem identification,
research planning, literature collection, research design, sampling design, variable
identification, questionnaire design, questionnaire distribution, data collection and analysis.

In order to achieve the objectives in the study, researchers used both secondary and primary
data. The specific literature had been collected to analyze the current situation and consumer
behaviour. In order to test the hypothetical relationships, Internet based survey had been
administered. Convenience/judgment sampling method had been used to collect the data,
sample formed solely by consumers who are 18 years or above in age. Target respondents are
the consumers, who are familiar with the purchase of these products and also responsible for
the purchase decisions. A total of 218 responses were obtained over a two-week period. For
the present study data had been collected with the help of Likert 5 point scale consisting of
statements based on objectives of study.

DATA ANALYSIS:
The research data was first subjected to the basic analysis such as frequency distribution.
This provided insight of the data and guided further data analysis. The entire variable were
categorised and measured on 5 point rating Likert scale. For testing the instrument reliability,
a reliability index (Cronbach’s alpha) was used. The overall combined 38 items were grouped
in 7 variables and compiled reliability calculated and obtained was 0.826 on the basis of 218
valid cases out of 230 cases. This figure suggests strong evidence of reliability in the
constructs of measuring instruments for the concern variable for the study. Therefore, the
questionnaire has high reliability.
Reliability Statistics
Cronbach's Alpha N of Items
.826 38

FACTOR ANALYSIS RESULTS:

Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy (MSA) value of 0.606 reveals

that the sample is adequate for conducting factor analysis. Here it is pertinent to mention that
KMO value greater than 0.6 is proof good for conducting research in social sciences
(Bartlett's, 1950). Bartlett's Test of Sphericity has been applied to judge the appropriateness
of the data set for factor analysis. The results have Chi-square=7.564, Degree of
freedom=703, and level of significance=0.000. All the Results are acceptable and factor
analysis results are as hereunder:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .606
Bartlett's Test of Sphericity Approx. Chi-Square 7.564E3
Df 703
Sig. .000
TOTAL VARIANCE EXPLAINED: The initial number of factors is the same as the
number of variables used in the factor analysis.  However, not all 38 factors retained. The
factor analysis executed with principal component analysis using Varimax rotation extracted
seven factors. These factors explain 64.4 % of variance.
FACTOR: The columns under this heading are the rotated factors that have been extracted.
The seven factors were nomenclated.  The first factor was called people and so on. On the
basis of loading and this loaded highly. The extracted factors are discussed as hereunder:
Factor 1: People

1 The awareness of green products motivates me to take decision in favor of buying them. .768
2 Buying the green products instead of conventional products would feel like making a good personal
.766
contribution to something better.
3 My confidence level increases with association of the brands of green product. .718
4 The awareness of green products make me confident in favour of buying them. .710
5 My confidence level influences my intensions in favour of buying green products. .687
6 My attitude towards green product effect my buying intensions. .635
7 Buying the green product would help me to feel acceptable in family. .628
8 Buying the green products instead of conventional products would make me feel like a better person. .623
9 Buying the green products instead of conventional products would feel like the morally right thing. .621
10 Buying the green product would improve the way that I’m perceived. .542
11 Buying the green product would give it’s owner social approval. .483
12 Buying the green product would make a good impression on other people. .400
People is the most important factor explaining 15.04% of the total variance is 5.717. loadings
range from 0.768 to 0.400. The findings suggest that the Consumer buy green product
because that enhance their acceptance in family as well as in society. Their intention, attitude,
value and knowledge influence their purchase decision. it supports the hypothesis:
H05. Consumers will likely to purchase green product that perceived better for self, family
and society.
Factor 2: Planet

1 The knowledge of green products influences the choice criteria in favour of buying them. .881
2 I have read newsletters, magazines or other publications written by environmental group. .700
3 When I have a choice between two equal products I purchase the one less harmful to other people
.682
and the environment.
4 I have switched products for ecological reasons. .671
5 I have voted for a candidate in an election at least in part because he/she was in favor of strong
.616
environmental protection.
6 I make a special effort to buy paper and plastic products that are made from recycled material. .588
7 I have avoided buying a product because it had potentially harmful environmental effects. .502
8 I make a special effort to buy paper and plastic products that are made from recycled material. .469
Planet is the second important factor explaining 13.623% of the total variance which is
5.179. Loadings range from 0.881 to 0.469. The findings suggest that people who have
concern for environmental well-being they purchase green products and that is why, in this
research it has planet as it nomenclature. It supports the following hypothesis:
H07. Consumers are likely to purchase green products that protect environment and are safe
for future generations.
Factor 3: Product

1 The quality of green product is attractive. .805

2 The green product has an acceptable standard of quality [] .663
3 The green product are durable. .524
4 The green product has consistent quality. .489
5 The green products are different from conventional products. .464
Product is the next important factor for explaining 8.984 % of the total variance which is
3.414, loadings range from 0.805 to 0.464. Consumers’ demand the quality, durability, and
consistency in green products and at the same time they expect that it should be environment
friendly at the time of processing, packaging, labeling etc. It supports the hypothesis:
H01. Quality of product will induce consumers to purchase green products.
Factor4: Price

1 I would buy the green product when there are discount rates. .793
2 The green product would be economical. .721
3 The green product offers value for money. .576
4 The green product is reasonably priced. .570
Price is the next important factor explaining 8.758 % of the total variance is 3.328 loadings
range from 0.793 to 0.570.Consumers’are price conscious they want value for money by
reasonable pricing firm can focus on profits by maximizing sales. It supports the hypothesis:
H02. Reasonable price will induce consumers to purchase green products.
Factor 5 : Promotion

1 I would buy the green products endorsed by celebrities. .794

2 I have volunteered to be the part of organization which promotes green products. .765
3 The marketers of green products are providing satisfactory services. .700
4 I would buy the green products on recommendation of sales representative .538
Promotion is the next important factor explaining 6.632% of the total variance is 2.520
loadings range from 0.794 to 0.538. Reference groups, discounts, sales promotional scheme,
awareness, information of product are seen to be a influencing factors for purchase of green
products. Consumers’ are ready to promote green products.It supports the hypothesis:
H03. Better market communication will induce consumers to purchase green products.
Factor 6: Process

1 I like to search for the new and different .712

2 I would acquire a great deal of information about the green products. .582
3 Before buying the product I would obtain substantial information about the different makes
.493
and models of green products.
Process is the next important factor explaining 6.307% of the total variance is 2.397.
loadings range from 0.712 to 0.493. Consumers’ verify the environmental impact of the entire
life cycle of the product. Any product that is made, used or disposed of in a manner that
significantly reduces the harm that cause to the environment. It supports the hypothesis:
H06. Consumers will likely to purchase more from manufacturers that are seen to be pro-
environmental.
Factor 7: Place

1 The green product is easily available. .622

2 The green product is freely (without govt. control) available. .529
Place is the last important factor explaining 5.046% of the total variance is 1.918 loadings
range from 0.622 to 0.529.Consumers’are not that much interested to go in search of green
product .If green products are easily available without any control than they prefer to buy it.
It supports the hypothesis:
H04. Availability of product will induce consumers to purchase green products.
DISSCUSION:
When companies come up with new innovations like eco friendly products, they can access
new markets, enhance their market shares, and increase profits. Every company has its own
favourite marketing mix. Some have 4 P's and some have 7 P's of marketing mix. We have
7p’s of green marketing too, but they are bit different from conventional marketing.

Seven P’s of green marketing

There are challenges before marketers are to use 4 P's in an innovative manner for green
marketing. In the result of present research conventional four P’s are garnished by three
additional Ps, namely People, Planet and process.
1. People: Social norms are an important motivator of ecologically responsible behavior. All
consumers are exposed to social pressure, culture, family, personal influence and situation
effects. 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, companies and products that effectively create the image of concern
for the environment are likely to be supported by these consumers as providing one route
towards achieving their ideal self-concept.
2. Planet: As resources are limited and human wants are unlimited, it is important for the
marketers to utilize the resources efficiently while keeping the organizational goals in mind.
Therefore, it is believed that adoption of Green marketing strategies will be advantageous to
firms in long run and will help to keep our planet clean for future generations. Organizations
should save water, energy, money, and reduce environmental impact by using the
environmentally friendly packaging, labeling.
With the threat of global warming looming large, it is extremely important that green
marketing has become the norm rather than an exception or just a fad.
3. Product: The product must contribute to reduction of the adverse primary criteria that
have the highest environmental impact associated with the use of the product and which will
be specifically set for each of the product categories.
Studies on the consumption of environmentally sustainable products have demonstrated that
perceived product performance is a significant barrier to their selection. Products have to be
developed depending on the needs of the customers who prefer green products. Products are
recycled, recyclable, made from recycle products or biodegradable.
4. Pricing: Green pricing added value by the people, planet and profit in a way takes care of
the health of employees and communities and ensures efficient productivity. Value can be
added to it by changing its appearance, functionality and through customization etc.
Since people tend to put price as a critical consideration, it is important for marketer to
provide additional values that improve many aspects of the products. It may be developed
performance, function, design, visual appeal, or taste. The consumers will only want to pay
the premium price when the extra value of products is attracting.
5. Promotion: Choice of where and when to make a product available have significant
impact to attract the consumers. Very few customers will go out of their way to buy the green
products. Moreover, the location must also be consistent with the image which a company
wants to project.Sustainable marketing and communication tools and practices are should be
used by smart green marketers to reinforce the environmental credibility. There are several
examples that had been done by several companies.
Consumer awareness can be created by spreading the message among consumers about the
benefits of environmental-friendly products. Positioning of profiles related to green
marketing on social network creates awareness within and across online peer groups.
6. Process: The process refers to the methodology the services will be provided. It should be
given a serious attention, so the process can be executed in the right way with the main
objectives. The greenness of entire system is to be kept in mind to establish a comprehensive
green marketing implementation.
The physical evidences must ensure that the greenness for every part of system is
implemented, so it should be implemented from holistic point of view.
7. Place: A distribution logistics is of crucial importance; main focus is on ecological
packaging,marketing local and seasonal products. Green place is about managing logistics to
cut down on transportation emissions, thereby in effect aiming at reducing the carbon
footprints. For example, instead of marketing an imported mango juice in India it can be
licensed for local production. This avoids shipping of the product from far away, thus
reducing shipping cost and more importantly, the consequent carbon emission by the ships
and other modes of transport.
CONCLUSION:
Green marketing is still in its infancy and a lot of research is to be done on green marketing
to fully explore its potential. Green marketing should not neglect the economic aspect of
marketing. Marketers need to understand the implications of green marketing. If
organizations think customers are not concerned about environmental issues or will not pay a
premium for products that are more eco-responsible, think again. organizations must find an
opportunity to enhance their product's performance and strengthen customer's loyalty and
command a higher price. 
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