Professional Documents
Culture Documents
Perspectives, Sustainability,
and Behavior
GREEN CONSUMERISM
Perspectives, Sustainability,
and Behavior
Edited by
Ruchika Singh Malyan
Punita Duhan
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Green consumerism : perspectives, sustainability, and behavior / edited by Ruchika Singh Malyan,
Punita Duhan.
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1. Green marketing. 2. Consumption (Economics)--Environmental aspects. 3. Environmental responsibility.
I. Malyan, Ruchika Singh, editor II. Duhan, Punita, 1973-, editor
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ABOUT THE EDITORS
seminars and conferences. She has published more than 12 research papers
with prestigious national and international publishers such as Sage, Palgrave,
Springer, IGI global, Bloomsbury, etc. She has published two edited books
titled “Managing Public Relations and Brand Image through Social Media”
and “Radical Reorganization of Existing Work Structures through Digitali-
zation” with IGI Global. One more book titled “M-commerce: Experiencing
the phygital Retail” is being published by Apple Academic Press, Taylor &
Francis Group. She is also on editorial board of peer reviewed prestigious
journals. Besides, she has been actively involved in curriculum develop-
ment and e-content development of various universities, National Institute
of open schooling, Central Board of Secondary Education and Technical
Education Departments of Delhi and Haryana state in management area.
She has attended more than 30 training programs and workshops and has
organized around 10 seminars/conferences/workshops.
CONTENTS
2. Green Pricing: The Journey Until Now and the Road Ahead ...... 21
Anjali Karol and C. Mashood
Anitha Acharya
Department of Human Resources, IBS, a constituent of IFHE, Deemed to be University,
Hyderabad, India
José Álvarez-García
Department of Financial Economics and Accounting of the University of Extremadura, Caceres, Spain
Richa Dahiya
Department of Management Studies, SRM University, Sonepat, Haryana, India
Deepa
KIET School of Management, Ghaziabad, Uttar Pradesh, India
Pinaki Dey
Department of Biotechnology, Karunya University, Coimbatore, Tamil Nadu, India
Geetika Gupta
Department of Biotechnology, Thapar Institute of Engineering and Technology, Bhadson Road,
Patiala, Punjab 147004, India
Manish Gupta
Department of Human Resources, IBS, a Constituent of IFHE, Deemed to be University,
Hyderabad, India
Om Jee Gupta
Institute of Management Studies, Banaras Hindu University, Varanasi, U. P, India
Prateek Gupta
KIET Group of Institutions, Ghaziabad, U. P, India
Siddharth Jain
Department of Civil Engineering, KIET Group of Institutions, Ghaziabad, U. P, India
Anjali Karol
Institute for Financial Management and Research, Chennai, India
Pradeep Kautish
College of Business Management, Economics and Commerce, Mody University of Science and
Technology, Lakshmangarh, Sikar, Rajasthan
Chanchal Kumar
University of Delhi, Delhi, India
xii List of Contributors
Madan Lal
Department of Commerce, Delhi School of Economics, University of Delhi, New Delhi, India
C. Mashood
SPI Global, Chennai, India
Nittala Rajyalakshmi
Department of Commerce and Management Studies, Andhra University, Vishakhapatnam,
Andhra Pradesh, India
Sumit Roy
Jadavpur, Kolkata, West Bengal, India
S. N. Sahdeo
Department of Management, Birla Institute of Technology, Ranchi, Jharkhand, India
Nitika Sharma
Department of Commerce, University of Delhi, New Delhi, India
Nomita Sharma
Department of Management Studies, Keshav Mahavidyalaya, University of Delhi, New Delhi, India
Anurag Singh
Institute of Management Studies, Banaras Hindu University, Varanasi, U. P, India
Kunal Sinha
Department of Management, Birla Institute of Technology, Jharkhand, India
Harsh Tullani
Department of Management Studies, SRM University, Sonepat, Haryana, India
George Varghese
Institute for Financial Management and Research, Chennai, India
Dharmavaram Vijaylakshmi
Gayatri Vidya Parishad, Gayatri Valley, Rushikonda, Visakhapatnam, Andhra Pradesh, India
Lakshmi Viswanathan
Institute for Financial Management and Research, Chennai, India
LIST OF REVIEWERS
Anitha Acharya
Department of Human Resources, IBS, a constituent of IFHE, Deemed to be University,
Hyderabad, India
Prachi Aggarwal
Meerabai Institute of Technology, Directorate of Training and Technical Education, New Delhi, India
José Álvarez-García
Department of Financial Economics and Accounting of the University of Extremadura, Caceres, Spain
C. Mashood
SPI Global, Chennai, India
Geetika Gupta
Department of Biotechnology, Thapar Institute of Engineering and Technology, Bhadson Road,
Patiala, Punjab 147004, India
Manish Gupta
Department of Human Resources, IBS, a Constituent of IFHE, Deemed to be University,
Hyderabad, India
Om Jee Gupta
Institute of Management Studies, Banaras Hindu University, Varanasi, U. P, India
Siddharth Jain
Department of Civil Engineering, KIET Group of Institutions, Ghaziabad, U. P, India
Anjali Karol
Institute for Financial Management and Research, Chennai, India
Pradeep Kautish
College of Business Management, Economics and Commerce, Mody University of Science and
Technology, Lakshmangarh, Sikar, Rajasthan
Chanchal Kumar
University of Delhi, Delhi, India
Sumit Roy
Jadavpur, Kolkata, West Bengal, India
S. N. Sahdeo
Department of Management, Birla Institute of Technology, Ranchi, Jharkhand, India
Nitika Sharma
Department of Commerce, University of Delhi, New Delhi, India
xiv List of Reviewers
Nomita Sharma
Department of Management Studies, Keshav Mahavidyalaya, University of Delhi, New Delhi, India
Anurag Singh
Institute of Management Studies, Banaras Hindu University, Varanasi, U. P, India
Kunal Sinha
Department of Management, Birla Institute of Technology, Jharkhand, India
Harsh Tullani
Department of Management Studies, SRM University, Sonepat, Haryana, India
George Varghese
Institute for Financial Management and Research, Chennai, India
Lakshmi Viswanathan
Institute for Financial Management and Research, Chennai, India
LIST OF ABBREVIATIONS
Today, the world is in need of new decisions and innovations, which has led to
a green marketing environment and the creation of a new market condition to
the potential buyers. Both marketers and consumers are nowadays focusing
on green products and services. Companies are adopting green marketing
practices and are producing green products that have fewer harmful effects
on the environment than conventional products. Consumers are becoming
more and more aware of the environmental problems and are actively trying
to reduce their impact on the environment by purchasing green products and
moving towards a greener lifestyle.
Additionally, strategic marketing actions of companies target their prod-
ucts and services to these kinds of consumer groups to gain market share
and minimize their production costs. Green consumerism creates a balance
between the expectations of consumer behavior and business profit motives.
This book is a strenuous effort by the editors to understand the area of
green consumer behavior in a versatile manner. This book enables readers
to comprehend the concept of green consumer behavior, which has led to
various green marketing initiatives being taken by companies. This book
puts together the work of researchers and consultants working in this field
from across the world.
Overall, this book meets the needs of researchers, academicians, profes-
sionals, and students working in the domain of sustainable development,
green consumer behavior, green products and methods, ecological develop-
ment, and so forth. This book will help develop the eco-literacy of people
working in this area. It will prove to be an excellent reference resource and
a handbook for detailed and up-to-date knowledge about green consumer
behavior. Editors Ruchika Singh Malyan and Punita Duhan deserve to be
congratulated for this sincere academic endeavor that covers the various
facets of green marketing in a comprehensive manner.
Prof. B. K. Punia
Vice Chancellor,
Maharishi Dayanand University, Rohtak – 124001 (Haryana), India
PREFACE
The idea of green consumerism is very important in this decade and is popular
among many sections of society in an effort to save the planet Earth. The
world over, economic development has come at the cost of the environment.
Green consumerism is a movement, expanding rapidly, to encourage people
to buy products that are considered environmentally friendly. The needs of the
consumers are evolving, and brand loyalty is being continuously redefined.
Nowadays, consumers are taking responsibility and doing the right
thing as consumer awareness and motivation continue to drive change in
the marketplace. Also, companies are integrating appropriate green strate-
gies into their operational activities, product development processes, and
marketing activities to achieve a competitive advantage in saturated markets.
This helps companies gain market share and minimize their production costs.
Therefore, green consumerism has been increasingly promoting the prac-
tice of purchasing products and services produced in a way that minimizes
social and/or environmental damage. It also creates a balance between the
expectations of consumer behavior and business profit motives.
Accordingly, this book aims to understand the importance of promoting
green products and then tries to explain consumers’ buying intentions and
decisions in respect to green or ecologically friendly products under the
consumer behavior theory. This publication will be beneficial for academi-
cians, researchers, practitioners, and students studying green marketing and
for usage by marketers and consumers.
The editors’ objective, while proposing this book, was to consolidate
the contemporary academic and business research. The editors have made a
meticulous effort to present up-to-date research related to green marketing
in a comprehensive manner and to provide some ideas for future research
avenues. Some of the broad areas this book caters to are green pricing, green
consumer behavior, various dimensions of consumer purchase intentions,
sustainable marketing, innovation techniques used to go green, eco-aware-
ness, and other ongoing developments in this rapidly expanding area.
The book has been organized in the following three sections:
Section I: Green Marketing Practices: Different Perspectives
Section II: Sustainability Aspects of Green Marketing
Section III: Ecological Dimensions of Green Consumer Behavior
xxiv Preface
desires which, in turn, are delivered in the changing needs of the consumers.
A model of consumer behavior has been proposed by the authors, which
consists of four factors. It can be adopted by manufacturers, companies,
and marketers of green products. They can make use of the model while
framing strategies for green products. The application of the model will help
in the appropriate assessment and evaluation process so as to understand the
dynamics of consumer behavior.
Chapter 5 talks about green practices that can be followed for a greener
living. The authors say that awareness about green practices is progress itself.
Therefore, educating oneself and others holds the key to a paradigm shift
from business to a one planet living. The authors also suggest the mantra
of reuse, reduce, and recycle, which, if followed religiously, would reduce
our carbon imprints on the planet. With certain limitations, there are various
opportunities discussed for the eco-entrepreneurs. They are those business
professionals who keep the concept of going green close to their heart and
central to their business, along with the end goal of profit. Eco-entrepreneurs
have enormous uncaptured and unexplored markets available to them, and
they can certainly do well if they can offer green products that are superior
to their nongreen alternatives.
Chapter 6 explains the determinants of consumer purchase intention for
solar products in Varanasi city (India). This study is aimed at solar products
that are green products and are used for conservation of resources. Even
after the gigantic promotion of solar products usage, the growth of the solar
product market is very slow. The authors have investigated the key factors
that influence the purchase intention of consumers for solar products. The
authors suggest that if similar research is conducted in other states as well,
marketers and policymakers will be able to serve consumers in a better way
and can generate better demand for solar products.
Chapter 7 explores a wide range of literature on environmental concern
by synthesizing consumer marketing domain and perspectives of corpora-
tions on the issue of environmentally conscious consumer behavior and
green marketing. The author has analyzed the issue by conducting in-depth
research using various statistical tools. The implications derived from the
present study have an impact on a number of marketing-related areas. The
results indicate that consumers in India have a positive attitude toward envi-
ronmental concern, they demand green products, and they attempt to figure
out the impact of their consumption on environmental well-being.
Chapter 8 offers an important insight as to how a consumer derives trust
from brand associations. The authors have explored the relationship between
green brand association and green trust to achieve green competitive
xxvi Preface
1.1 INTRODUCTION
The term green marketing was first discussed in the year 1975 in a seminar
on “Ecological Marketing” organized by American Marketing Association
(AMA) (Henion and Kinnear, 1976). Since then, terms such as environment-
friendly, recyclable, ozone friendly, refillable are often associated with green
marketing. However, green marketing is a much broader concept which is
applicable to services, consumer goods, and even industrial goods. It incor-
porates a broad range of activities including product modification, changes
to the production process, changes in packaging, as well as modifications in
the advertisement. Not surprisingly but defining green marketing is a chal-
lenging task.
From practitioners’ perspective, green marketing refers to the marketing
of products and services that are presumed to be environmentally preferable
to others whereas, from a researchers perspective, green marketing refers
to the “analysis of how marketing activities impact the environment and
how the environmental variable can be incorporated into the various deci-
sions of corporate marketing” (Chamorro et al., 2009, p 223). According
to Peattie (2001a), green marketing attempts to reduce the negative social
and environmental impacts of existing products and production systems.
It promotes less damaging products and services. The latest trend in green
marketing research assimilates green marketing into the broader framework
of corporate social responsibility (Chamorro et al., 2009). This change is the
result of a shift in thinking from green marketing as a type of consumerism
(the 1970s–1990s) to green marketing as a societal conscientiousness (Porter
and Kramer, 2006).
Furthermore, acting in an environment-unfriendly way is unprofit-
able (Cronin et al., 2011). For example, British Petroleum (BP) lost 55%
shareholder value after the deepwater horizon incident which happened on
April 20, 2010. Deepwater Horizon was a deepwater, offshore oil drilling
rig owned by Transocean (RIG) and operated by BP. While drilling at the
Macondo Prospect, there was an explosion on the rig caused by a blowout
that killed 11 crew members. On April 22, 2010, Deepwater Horizon sank
while the well was still active and caused the largest offshore oil spill in the
U.S. history. Market incentives, as this logic goes, support pro-environment
6 Green Consumerism: Perspectives, Sustainability, and Behavior
corporate decisions (Kassinis and Vafeas, 2006). Also, recent research has
found that promoting oneself as a “green company” increases consumers’
inclination toward the company and allows companies to charge a premium
price (Acharya and Gupta, 2016).
The concept of green marketing has evolved over a period of time. According
to Peattie (2001a), the green marketing evolution was a three-phase process
including ecological, environmental, and sustainable green marketing. Each
of these phases has been elaborated in the subsequent paragraphs:
• The first phase termed “ecological green marketing” lasted from the
1960s to 1970s (Delafrooz et al., 2014). In this era, all marketing
activities were concerned to find solutions to the environmental
problems or the external problems (Grundey and Zaharia, 2008). It
was a result of a workshop held by the American Marketing Associa-
tion (AMA) on “Ecological Marketing” in the year 1975. The main
contribution of this phase in establishing the concept by publishing
several books on the topics relating to ecological marketing (Nadaf
and Nadaf, 2014). It provided a concrete base for analyses and
empirical work.
• The second phase was “environmental green marketing” and in this
era, the focus shifted to “clean technology” that involved designing
of products which are innovative and manage pollution and waste
(Peattie, 2011). In this era, for raising customers’ green loyalty, the
companies were to pay special attention to enhance customers’ green
satisfaction, green perceived value, and green trust instead of typical
satisfaction, perceived value, and trust (Chen, 2013). Eventually, it
attracted a lot of investments in the potential resources contributing
to the aforesaid factors.
• The third phase was “sustainable green marketing.” It came into
prominence in the late 1990s and early 2000. This was the result
of “sustainable development,” which is defined as meeting the
needs of the present without compromising the capability of
future generations to meet their own needs (Kilbourne, 1998).
Research in this phase mainly relates to consumer behavior and
is still going on.
Green Marketing: The Next Marketing Revolution 7
In spite of some attention in the 1970s, it was only in the late 1980s that
the idea of green marketing emerged. According to Prothero (1990), green
marketing consists of the rapid increase in green consumerism at this time
as heralding a dramatic and expected shift in consumption toward greener
products (Vandermerwe and Oliff, 1990). Prior research bodies were cited
as identifying heightened environmental awareness, a growing consumer
interest in green products, and a pronounced willingness to pay for green
features (Worcester, 1993). Realistic evidence for this came in the form of
extremely successful global consumer boycott of aerosols which were chlo-
rofluorocarbon (CFC) driven, and the international success of publications
by Elkington and Hailes (1988) titled “The Green Consumer Guide.” This
resulted in a rupture of corporate activity in the area of green marketing
and an upsurge in green business research and writing among academics.
Corporate interest in green marketing was indicated by early market
research findings suggesting major changes and innovations in products
produced by them. The results of the survey conducted by Vandermerwe
and Oliff (1990) revealed that 85% of European multinationals claimed to
have altered their production systems and 92% claimed to have altered their
products in response to green concerns. Regardless of this optimistic picture,
by the mid-1990s new market research evidence began to emerge which was
less explicit about the growth of green consumerism. A follow-up report
by Mintel (1995) on the environment recorded only a very slight increase
in green consumers since 1990 and identified a noteworthy gap between
concern and actual purchasing. According to Allan (2005), the frequency
and prominence of green claims were also found to be in decline and green
products seemed to have achieved only limited success (Werther and Chan-
dler, 2005). Even though green product growth continued strongly in certain
markets such as financial services, food, and, tourism; there was no longer
talk about the impressive growth in launching the green product.
1.5.1 OPPORTUNITIES
The main reason for the emergence of green marketing is the availability of a
plethora of opportunities including sustainable competitive advantage, wider
consumer base, government subsidies, and corporate social responsibility.
These have been described in the points given below:
8 Green Consumerism: Perspectives, Sustainability, and Behavior
1.5.2 CHALLENGES
Green marketing is one of the few areas that are likely to create a lot of growth
opportunities for the firms because green marketing plays a key role in making
masses aware that in-turn saves the globe from pollution. Green marketing
should not be considered as just one more approach to marketing but has to
be pursued with much greater force as it has an environmental and social
dimension attached to it. With the alarming threat of global warming, it is very
important that green marketing becomes the standard rather than an exception.
Recycling of plastic, metals, and paper waste in a safe and environmentally
harmless manner should become much more systematized and universal.
Marketers also have the responsibility to make the consumers understand the
need for and benefits of green products as compared to nongreen products.
Consumers are willing to pay more for green products in order to maintain a
cleaner and greener environment. The government can also have tie-ups with
NGOs in order to create awareness among the consumers.
After the first sign of green marketing movement, during the second half
of the 1990s marketing scholars began to shift their research focus beyond the
10 Green Consumerism: Perspectives, Sustainability, and Behavior
original green marketing schedule and its focus on the quest of environment-
based competitive advantage. Ideas about what might constitute sustainable
marketing began to emerge. This shows that more substantive progress will
require a reshaping of a number of marketing elements and practice including
strategy formulation, product redefinition, market penetration, highlight on
product benefits, campaigns, and emphasis on cost. The details are shared in
the points described below:
According to Ottman et al. (2006), the only two things that green
marketing needs to focus on are satisfying its customers and improving the
quality of the environment. The authors also suggest the ways to improve
and achieve these two basic green marketing objectives. Consumer value
positioning of green products includes five dimensions such as efficiency
and cost-effectiveness, health and safety, performance, symbolism and
status, and convenience. The details of these key dimensions for a successful
green marketing have been explained below:
Stakeholders play one of the most influencing roles in any firm and market. They
persuade all aspects of green strategy including the purchase of a green product,
the packaging of the product, the product nature, advertisement, promotion
and also in programs related to green awareness. Environmental strategies are
associated with a stronger stakeholder orientation (Bansal and Roth, 2000). It is
a useful concept to grasp the degree to which a firm understands and addresses
environmental stakeholders’ demands (Maignan and Ferrell, 2005). Prior
research shows that pressure from stakeholder influence managerial choices
since such pressures are perceived as limits and opportunities. When pressures
are perceived as limits, firms bring about rapid socialization to obtain authen-
ticity from stakeholders, as well as outcomes which are measurable (King
and Lenox, 2001). If they are considered as opportunities, pressures create an
incentive structure that promotes instrumental corporate green responsiveness
as a means to obtaining positive attention from the public and increased support
from the stakeholder (Cordano, 1993; McDonagh and Prothero, 2014). There-
fore, there are reasons to think that stakeholders influence the formulation and
direction of corporate strategies (Polonsky et al., 1994).
Due to the surge in the number of green products available in the world
markets, services-driven organizations are also looking for green marketing
to increase their brand value. Starbucks and Johnson and Johnson have
already taken the lead in successfully executing their green marketing strate-
gies. Subsequent paragraphs describe these practices in detail:
1.8.1 STARBUCKS
Another company famous for its green initiatives is Johnson and Johnson,
an American multinational medical, pharmaceutical, and packaged goods
manufacturer. Al Iannuzzi, company’s senior director, shared some green
marketing tips with Anna Clark, president, EarthPeople. These tips include
researching the relevant, marketing of the green social initiatives, attaching
importance to communication, and go beyond eco-labels (Clark, 2011). All
of these have been described below:
Green Marketing: The Next Marketing Revolution 15
Other than Starbucks and Johnson and Johnson, there are various other
companies such as Ford Motor Company, Disney, and Nike that are also
following green practices as detailed in the subsequent paragraphs:
16 Green Consumerism: Perspectives, Sustainability, and Behavior
The Ford Motor Company which was founded by Henry Ford in the year
1903 is an American multinational automaker headquartered in Dearborn,
Michigan, a suburb of Detroit. When the company realized that heavy
polluters in the world initially were automotive manufacturers, the company
decided to revolve its image around with a ten-part environmental policy that
has been in force for years. The company for its vehicles uses fabrics which
are sustainable; their vehicles are 80% recyclable. Ford is also an innovator
in fuel efficiency, particularly in the six-speed transmission category, and
offers a clean diesel heavy-duty pickup truck. The paint fumes are recycled
as fuel. Its factories also employ geothermal cooling systems.
1.8.3.2 DISNEY
1.8.3.3 NIKE
Nike, Inc., which was founded in the year 1964 by Bill Bowerman and Phil
Knight is an American multinational corporation headquartered in Beaverton,
Oregon, is engaged in the design, development, manufacturing and world-
wide marketing and sales of apparel, accessories, footwear, equipment, and
services. The company highlights the significance of green initiatives in its
advertising; it also goes one step further by actually implementing those
great initiatives. It makes an entire line of sustainable sporting goods and
equipment. Nike also uses renewable energy sources for its manufacturing
facilities. In addition to its environmental efforts on U.S. soil, it has pushed
its contracted suppliers in different countries to extend and carry out written
environmental policies. This helps the environment across the globe.
Green Marketing: The Next Marketing Revolution 17
1.9 CONCLUSION
Given the importance of the environment for human beings, the concept of
green marketing and sustainable development is getting attention in India
with time, but it is still in an embryonic stage. Even though the govern-
ment has announced and implemented various policies and regulations for
environmental protection, many firms are still not adopting it because of the
cost involved. Green marketing is not just another term of marketing since
along with the profitability concern; it deals with environmental and social
dimensions, too, so it has to be pursued with more anxiety and significance.
All the stakeholders of the environment should work together to save the
environment, revisiting the ancient history concept “Vasudev Kutumbakam,”
that is, the whole world is one single family and all the entity like trees,
animals, and so forth, in the ecosystem have atma (soul) and are a part of
our kutumb (family), and therefore, they require to be preserved (Yadav and
Pathak, 2013).
Firms should be transparent in disclosing all the contents of their green
products. They should highlight the health benefits for the green consumers.
The firms should bring the products’ long-lasting and environment-friendly
features to consumers’ attention. The marketers should make non-green
consumers aware of the environmental hazards of using non-green products
and suggest green products as an alternative. Marketers need to instill a
sense of pride in green consumers. Governments across the globe should
promote corporate social responsibility through devising ways and means
to encourage private investment in the production and marketing of green
products.
Companies producing green products and services should set aside a
certain amount of their profits for research and development and they should
come out with innovative ideas which will help them in reducing the price
of green products. This will help companies to attract more customers. The
Indian government can charge less tax for green products and services; this
will help the producers of green products to charge lesser prices for their
product and services.
Further study can be carried out by the researchers in finding out the
factors which affect customers in engaging in green products and services.
Research can explore the effect of factors like culture and gender on green
consumption. Future research can be carried out to find out the impact of
advertisement on green consumption.
18 Green Consumerism: Perspectives, Sustainability, and Behavior
KEYWORDS
• green marketing
• renewable products
• sales strategy
• green consumers
• recyclable products
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Further Reading