A STUDY ON CONSUMER PREFERENCE TOWARDS ECO-

FRIENDLY/GREEN PRODUCTS WITH SPECIAL

REFERENCE TO NEMMARA GRAMA PANCHAYATH

PROJECT REPORT

A project report submitted to the University of Calicut in partial fulfilment of the requirement
for the award of the degree of Bachelor of Commerce.

Submitted by

NITHIN C

Register no: CHAVBCM061

Batch: 2021-2024

Under the guidance and supervision of

Dr. GIRISH S K

Assistant Professor of Commerce,

Government College Chittur

POST GRADUATE DEPARTMENT OF COMMERCE

GOVERNMENT COLLEGE CHITTUR

FEBRUARY 2024
 DECLARATION

I, NITHIN C (CHAVBCM061), hereby declare that the project report titled “A

STUDY ON CONSUMER PREFERENCE TOWARDS ECO-
FRIENDLY/GREEN PRODUCTS WITH SPECIAL REFERENCE TO
NEMMARA GRAMA PANCHAYATH.”, is a bona fide work carried out by me
during my period of study at Government College Chittur and is submitted to the University
of Calicut in partial fulfilment of the award of Degree of Bachelor of Commerce. I also
declare that the project report has not submitted previously fully or partly for the award of
any degree, diploma, associate ship, other similar or recognition.

Place: CHITTUR Name: NITHIN C

Date: Signature:
 POST GRADUATE DEPARTMENT OF COMMERCE

GOVERNMENT COLLEGE CHITTUR

PALAKKAD, KERALA – 678104

CERTIFICATE

It is certified that NITHIN C (CHAVBCM061), a student of sixth semester B.COM, of

this department has worked on the project titled “A STUDY ON CONSUMER

PREFERENCE TOWARDS ECO-FRIENDLY/GREEN PRODUCTS

WITH SPECIAL REFERENCE TO NEMMARA GRAMA
PANCHAYATH” under my supervision and guidance. This has not been previously
submitted for the award of any degree, diploma or other similar title. This project is worth
submitting for the Degree of Bachelor of Commerce.

Place: Signature:

Date: Name and designation of supervising teacher

Place: Signature of the Head of the Department

Date:
 ACKNOWLEDGEMENT

This project would be far from the completion, if I fail to acknowledge my profound gratitude
towards the people who helped me in preparing this project successfully.

I express my heartfelt gratitude to my guide Dr. GIRISH SK., Assistant professor,

Department of commerce, Government College Chittur for his intellectual and valuable
guidance with constant encouragement for the progress of the study.

I express my deepest and sincere thanks to ASWATHY PJ, Head of the Department of
Commerce, Government College Chittur for their sincere and timely help during the study.

It gives me great pleasure to convey my gratitude to all the faculties of Department of

Commerce for their encouragement and inspiration throughout the course of this project. Last
but not the least, I am deeply dedicated to friends and my parents for the inspiration and help,
without which the project could not be completed.

NITHIN C
 TABLE OF CONTENTS
SI.NO. Contents Page no.

1 Chapter 1 - Introduction

2 Chapter 2 - Review of literature

3 Chapter 3 - Consumer preference and Eco-friendly

products – An overview

4 Chapter 4 - An analysis of Consumer preference

towards eco-friendly products
5 Chapter 5 - Findings, Suggestions and Conclusion

Bibliography

Appendix
 LIST OF TABLES
Table no. Table name Page no.
4.1 Gender wise classification of respondents
4.2 Age wise classification of respondents
4.3 Educational qualification of respondents
4.4 Level of income of respondents
4.5 Green products purchased by respondents
4.6 Source of awareness about green products
4.7 Showing information about recent purchase
4.8 Showing factors influencing the purchase decision
4.9 Showing whether respondents are willing to pay higher
price
4.10 Showing satisfaction level of respondents
4.11 Showing respondents opinion about the quality of products
4.12 Showing whether green products contribute to the
sustainable future
4.13 Showing mode of purchase of respondents
4.14 Showing whether respondents get the guarantee for the
product purchased
4.15 Showing reliability of the product
4.16 Showing whether respondents face any difficulty in
availability of the product
4.17 Showing whether respondents are aware about the eco-
label
4.18 One way ANOVA
4.19 One way ANOVA
4.20 One way ANOVA
4.21 One way ANOVA
4.22 One way ANOVA
4.23 Mean rank analysis showing the motive for using eco-
friendly products
 LIST OF FIGURES
Figure no. Figure name Page no.
4.1 Bar diagram showing gender wise classification of
respondents
4.2 Bar diagram showing age wise classification of
respondents
4.3 Bar diagram showing educational qualification of
respondents
4.4 Bar diagram showing level of income of respondents
4.5 Bar diagram showing green products purchased by
respondents
4.6 Bar diagram showing source of awareness about green
products
4.7 Pie diagram showing information about recent purchase
4.8 Pie diagram showing factors influencing the purchase
decision
4.9 Pie diagram showing whether respondents are willing to
pay higher price
4.10 Pie diagram showing satisfaction level of respondents
4.11 Pie diagram showing respondents opinion about the quality
of products
4.12 Pie diagram showing whether green products contribute to
the sustainable future
4.13 Histogram showing mode of purchase of respondents
4.14 Pie diagram showing whether respondents get the
guarantee for the product purchased
4.15 Histogram showing reliability of the product
4.16 Histogram showing whether respondents face any
difficulty in availability of the product
4.17 Histogram showing whether respondents are aware about
the eco-label
 CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION TO THE STUDY

Eco-friendly products or Green products are those items considered eco-friendly. This
means that the manufacturer of the particular product took the proper steps in ensuring
that the environment was not harmed during its manufacturing process. The raw
materials used in the product were derived from sustainable sources. And the production
should have a low impact on the environment regarding waste, carbon emissions and
energy use.
Competition is one of the major challenges that a business man want to face in a modern
world. Every industry is composed of many individual firms and each individual firm is
providing similar goods and services. Naturally the situation makes a big chance for
competition among these firms. So in order to becoming the market leaders every
business wants to adopt different strategies.
Nowadays one of the major strategies adopted by the companies to capture market is the
marketing of green products or eco-friendly products. A green product provides a lot of
advantages to us. Today people giving more attention to protection of environment, as
they are aware about the appearance of hole in the ozone layer, destruction of forest etc.
because of these factors green products get more attention in today’s world.
The term ‘green’ has nothing to do with colour, but the choice of name is appropriate
because green is a colour that is often associated with nature. Green products are
considered kinder to the environment than non-green products, in one way or another.
The term is widely used and it does not take much for a product to be called green, so it
can cover a wide range of consumer goods.
A product is considered earth-friendly if it is biodegradable, meaning that it will pose no
threat to the earth and the environment, when it is released to the air, water or earth while
in use or when disposed of. These types of products usually decompose much quicker in
a landfill, than similar items that are not biodegradable. Biodegradable household
cleaners, soaps, dish and dish washer detergents and laundry soaps are just a few
examples of this type of green product.
Plastic makes a lot of problems to world; especially plastic bags are bad for our
environment. In order to save our environment from the threat of plastic bags; an
alternative is developed that is paper bags. Paper bags are degradable and it does not
make any harm to the environment.
 The following are some of the characteristics that define a product as green or eco-friendly:

 It’s recyclable, reusable, and biodegradable in nature.

 Its packaging is in an eco-friendly manner.
 It requires the least number of available resources.
 Focus on generating revenue thereby making a responsible contribution to the
environment.
 It is an ecologically friendly product.
 Collected raw materials from the local producers ensure the sustainability
expansion of the region.
 It minimizes the carbon footprint.
 It minimizes plastic footprint.

On a national and international level, today’s environmental conditions have become a threat
to human health. Plastic use, air pollution, and other factors contribute to the worsening of
our economic situation. Green products help to contribute a sustainable environment by
minimizing the wastage and efficient use of resources. Nowadays, the demand for the green
products is high in the market.

Contemporary commercial promotional efforts and other factors make demand for green
products in the modern day. As a result of this trend, customers are more concerned about
environmental protection and they are willing to pay more for green items additional cost for
the same. The advantage of a green product is that it aids in the reduction of environmental
matters and it is beneficial to the company, consumer society. People today are more worried
about the environment, and they are looking for producers and governments to create fewer
damaging products for society.

However, every society bears a moral responsibility to safeguard the generation’s long-term
survival, which can only be achieved by executing long-term growth plans for the country.
Green products have a major role in the sustainable development of the nation. In order to
track our society’s progress, we need to discover sustainable development goals and benefits
through consumers. This study is focused on the consumer preference towards green
products.
1.2 STATEMENT OF THE PROBLEM
The study is to determine consumer preference towards eco-friendly/green products in
Nemmara Grama panchayath. It analyses the factors that influence the consumer
preferences towards green products. The study focused on how consumers make choices
about green products and wanted to figure out what variables affect their behaviour and
purchase behaviour. The factors of environmentally friendly purchase behaviour, such as
intention to buy, purchase decisions, actual purchase behaviour, and willingness to pay,
were the focus of these behavioural studies. Further, the aim of the study is to find out
how and where their income goes toward buying green or eco-friendly products. The
economy’s income inconsistencies have created a scenario of financial instability among
consumers, which may restrict individuals from making green purchase decisions.
The present research is the focus to examine the level of awareness about the green
products, factors influencing towards the usage of green products, consumers attitude and
behaviour towards the green products and satisfaction level of consumers about the uses
of green products. Further, the study focuses on post-purchase behaviour about the green
products in the study area. .

1.3 SIGNIFICANCE OF THE STUDY

The study is undertaken in Nemmara grama panchayath. The present research is the
focus to examine the level of awareness about the green products, factors influencing
towards the usage of green products, consumers attitude and behaviour towards green
products and satisfaction level of consumers about the uses of green products. The results
of the study on a local problem presume great significance for further studies related to
Environment-friendly ‘Green marketing’.

1.4 SCOPE OF THE STUDY

The sample unit of the study is from various parts of Nemmara. The study was based on
all recognised or trending product items in the market which were available among
various purchasing groups. It studies the relationship between demographic
characteristics and consumers preference. A Google form questionnaire is prepared in
order to collect the data from various respondents.
1.5 OBJECTIVES OF THE STUDY

 To know the consumers preference towards eco-friendly/green products.

 To analyse those factors induces consumers to purchase green products.
 To know the level of satisfaction of the respondents towards the green products.
 To determine the willingness of consumers for paying high price for the green
products.

1.6 RESEARCH METHODOLOGY

Research methodology refers to the methods followed by researcher for conducting particular
project report. It not only discusses on methods but also the logic behind conducting the
study. It includes specific procedure and techniques used to identify select and analyse
information on a topic.

DATA COLLECTION:

Data is collected through primary and secondary sources.

 Primary data: This includes information gathered from first hand sources. This
information is gathered directly from respondents using questionnaires and surveys.
 Secondary data: These were obtained from newspapers, journals, magazines,
browsers and other sources.
 Sampling technique: Convenient sampling method.
 Population: The study is conducted among the consumers in Nemmara Grama
panchayath.
 Sample size: The sample size of the study is 50 consumers.
 Research type: Academic research based on primary and secondary data.
 Area of study: The area of study is restricted to Nemmara panchayath.
 Statistical tools used: Percentage analysis, ANOVA test. Independent sample T-test,
Pie diagram, Bar diagram, tables.
 Period of the study: 2 months
1.7 HYPOTHESIS

H0: There is no significant difference between respondents belonging to various income

groups with respects to their preference towards eco-friendly products if the product has the
brand name that the consumer has previously used.

H0: There is no significant difference between respondents belonging to various income

groups with respects to their opinion on they would recommend the products to friends based
on quality.

H0: There is no significant difference between respondents belonging to various income

groups with respect to their opinion about government’s initiative to promote eco-friendly
products.

H0: There is no significant difference between respondents having various educational

qualifications with respects to their awareness about various brands of eco-friendly products.

H0: There is no significant difference between respondents belongs to various age groups
with respects to whether they would switch to eco-friendly products if they were more
available at local store.

1.8 LIMITATIONS OF THE STUDY

 The study is restricted to Nemmara grama panchayath.

 The 50 respondents may not reveal the true trend in the market regarding the
consumer preference towards green products.
 The accuracy of data collected from the respondents influences the research work’s
quality. As a result, so do the conclusions.
 The failure of statistical tools was not reversed.
1.9 CHAPTER SCHEME

1. Introduction
This chapter incorporates introduction, scope, significance, statement of the problem,
objective, methodology, and limitations of the study.
2. Review of Literature
This chapter covers the review of the earlier and relevant studies in the field.
3. Consumer preference and eco-friendly products – An overview
This chapter covers the theoretical frame work on the consumer preference towards
eco-friendly products.
4. Analysis of consumer preference towards eco-friendly products
This chapter covers the analysis of data collected on the consumer preference towards
eco-friendly products.
5. Findings, suggestions and conclusion
This chapter exposes the findings and suggestions of the study.
 CHAPTER 2

REVIEW OF LITERATURE
2.1 REVIEW OF LITERATURE

• According to Elkington (1994), a “green consumer” is someone who steers clear of goods
that could endanger their own or others health, significantly harm the environment during
production, use, or disposal, consume an excessive amount of energy, produce unnecessary
waste, use materials sourced from endangered species or environments, involve the needless
use of animals, or have a negative impact on other nations.

• Roberts, J A & Bacon, D R (1997), investigated and measured the relationship between
the New Environmental Paradigm (NEP) and Eco Conscious Consumer Behaviour (ECCB).
NEP is a set of beliefs and values focused on environmental protection and living peacefully
with nature. ECCB is described as a person’s behaviour in which he or she purchases things
and services that he or she feels have a positive environment impact. As per the findings,
man’s need to adapt to the natural environment seems to be a motivating factor behind
decisions to avoid things that have a negative environmental impact.

• Chan R Y K (2001), the purpose of this research is to impact numerous cultural and
psychological aspects on Chinese consumer’s green purchasing behaviour. The findings
suggest that the individual attitudes about green purchasing are influenced by their mannature
orientation, collectivism, ecological effect, and, to a minor extent, ecological knowledge.
Their attitudes toward green purchases, in turn, play a role in influencing their purchase
behaviour. The findings suggest that cultural and psychological factors have a great impact
on the behaviour under investigation.

• Azhagaiah (2006) observed the impact of green marketing and environmental protection. In
his study, found that the environmental issues have a significant impact on the modern
society. The environmental problems are the result of mass consumption and production
across globe. Due to limited resources, an extra caution is needed from both the consumers
and the producers. Therefore, awareness is needed for the protection of environment.

• The study by Meenakshi Honda (2006) has indicated that Activist group and the media
have played a major role in enhancing the environmental awareness and consciousness of
consumers in recent years. Most studies on the subject show that although the awareness and
environmental behaviour of consumers across countries, educational levels, age and income
group may differ, environmental concerns are increasing worldwide.
• Grundey D (2009), the researchers examined environmental marketing and Eco-labelling
to ensure that consumers have access to environmental friendly products and services and
that their preferences could be shifted toward environmentally friendly behaviour. The survey
was done in Lithuania to determine whether customers are loyal to environmentally friendly
8 products and whether marketing campaigns and ecological labelling practices influence
their buying decisions. The study found that the main incentive for Lithuanians to purchase
Eco-friendly products is a deep concern for their health, followed by quality and advertising.
Higher individual income, cheaper pricing for eco-friendly products foods,
informing/educating the society, and more advertising are the most influencing elements in
their loyalty to eco-friendly products in the country. The main de-motivators of buying eco-
friendly products in Lithuania are high prices, low availability and doubts if the product is
green or its green washing.

• Karipidiset al (2010) studied consumer’s purchasing behaviour and their willingness to pay
for eco-certified food products. Results of the study reported that the level of awareness about
the production conditions, eco-Mark experience, attributes associations, household income
and occupation were the major factors determining consumer’s intention to purchase eco-
certified product. Further the study also advocated that the most preferred retailer could add
value to the purchasing decision of consumers regarding eco-certified products.

• Joshi and Mishra (2011) conducted a study in India (Maharashtra) to study consumer’s
level of awareness about environment friendly car (EFC). The study examined the impact of
geography and age on the degree of awareness using a sample of 500 customers. Result
showed that age was insignificant, whereas geographical area was significant in determining
the difference in awareness level of consumers regarding EFC.

• Aditya Maheswari and Guan Malthotre (2011) wrote an article entitled “Green
Marketing: A study on Indian youth”. This study focus on the awareness, perception and
parameters considered by the consumers while purchase the green products. Statistical tools
like percentages and one way ANOVA were used, to analyse the purchase behaviour through
parameters considered by the consumers while purchasing the products such as price,
availability, convenience, brand name and variety of the products. They found that brand
name is the significant factor considered by the respondents while purchasing the green
products rather than all the product variables adopted in the study. Finally they concluded
that majority of the consumers are confused with the information provide in the products
related with the green attributes, so consumers are needed to be educated with the green
claims in the products.

• Ishawini and Sarojkumar Datta (2011) in their paper analysed with the objective of pro
environmental concern and its influence to green purchase behaviour of the consumers. In
order to achieve the objectives consumer’s preference, pro environmental concern, and
knowledge about the environmental issues are the variables used. Correlation analyses
reveals that pro environmental concern and green buying behaviour are significantly related.
This study concludes that educated consumers are high concern towards the environment, so
companies may focus on the segment of educated consumers for green products.

• Ronald Drozdenko (2011) in their study entitled with “pricing of green products, premium
paid, consumer characteristics and incentives”. The study focus on customer’s perception
towards the price premium of green products based on the demographic, situational, and
product categories. From the study they found that male customers are willing to pay extra
for green products, and also there was no significant difference in purchase behaviour of the
consumer’s while purchasing the green products based on their income and education. They
suggested that tax incentives were highly influence the consumers for willing to pay the green
products.

• Afzaal Ali and Israr Ahmad (2012) focused on the factors that influence the green
purchase intension of the consumers. To fulfil the objective of the study organisation green
image, environment knowledge, environment concern; perceived product price and quality
are the variables used. They found that organisation green image, environmental knowledge,
environmental concern, perceived product price and quality are the influential factors to the
green purchase behaviour of the consumers. So green companies are offer price and quality
of the product with the identical one to motivate the consumers towards the green products.

• Aysel Boztepe (2012) in his research paper he found that environmental awareness, price,
product features, promotion are the variables of green product influencing the purchase
behaviour of male consumers but promotion is the only variable influence the purchase
behaviour of female consumers and also mentioned that environmental awareness, green
product features, price and promotion are significantly related with green purchase behaviour.
Finally he suggested that there is a significant difference between the male and female
consumers while purchasing the green products, so companies are focus on the different
strategies on gender basis.
• R. shrikanth, D.Surya Narayana Raju (2012) aims at finding out what actually green
marketing is all about and how can a business firm be more competitive by using green
marketing strategies to gain a competitive edge over others. It explore the main issues in
adoption of green marketing practices.

• Suman Kumari (2018) conducted a study on factor affecting the purchasing behaviour of
the public about the green product (LED) in state Haryana. Environmental issues are a widely
discussed topic, as almost each country’s government and society has started to become even
more aware of them. As an outcome, the company has implemented a green marketing
strategy as one of its financial gains and environmental protection strategies. Whenever a
green marketing plan is in place, the company will benefit. This research will examine the
factors that affect people’s purchase decisions with regard to green products like LEDs. This
is a perfect opportunity to implement a technology and expand the features of green products.
It really is essential to examine the factors that influence public purchase behaviour. As a
result this paper will discuss the variables that impact public buying behaviour in relation to
green marketing.

.
 CHAPTER 3

CONSUMER PREFERENCE AND ECO-FRIENDLY

PRODUCTS – AN OVERVIEW
3.1 CONSUMER PREFERENCE

Consumer preferences play a pivotal role in shaping the dynamics of the market. These
preferences are influenced by a myriad of factors, ranging from personal tastes and lifestyles
to economic conditions and cultural trends. Understanding and adapting to consumer
preferences is crucial for businesses striving to remain competitive in an ever evolving
market place. One primary driver of consumer preference is product quality. Consumers are
naturally drawn to products that meet or exceed their expectations in terms of durability,
functionality, and overall performance. Positive experiences with a particular brand or
product contribute to the formation of brand loyalty, reinforcing consumer preferences over
time. In addition to quality, pricing is a significant determinant of consumer choices. While
some consumers prioritize premium products and are willing to pay a higher price for
perceived superior quality, others are more price sensitive and seek value for money, striking
the right balance between quality and affordability is a delicate task for businesses aiming to
capture a diverse consumer base.

Furthermore, the influence of technology on consumer preferences cannot be overstated. In

today’s interconnected world, consumers are increasingly drawn to products that integrate
seamlessly with their digital lifestyles. Whether it’s smart home devices, wearable
technology, or online shopping experiences, businesses that embrace and leverage technology
are more likely to resonate with modern consumers. Social and environmental considerations
also play a growing role in shaping consumer preferences. Ethical sourcing, sustainability,
and corporate responsibility are becoming significant factors influencing purchasing
decisions.

The role of branding and marketing strategies cannot be ignored when discussing consumer
preferences. Effective branding creates a distinct identity that resonated with the target
audience, influencing perceptions and preferences. Marketing efforts that tap in to the
emotional aspects of consumer decision making can create a lasting connection, fostering
brand loyalty. The rise of ecommerce has further transformed consumer preferences. The
convenience of online shopping, coupled with personalised recommendations and reviews,
has altered traditional retail dynamics. Businesses that provide a seamless online experience,
from user friendly interfaces to efficient logistics, are more likely to attract and retain a
digital-savvy consumer base.
In conclusion, consumer preferences are a complex interplay of various factors, including
quality, pricing, technology, ethical considerations, and effective branding. Adapting to these
preferences is essential for businesses seeking sustained success in a competitive market
place. By staying attuned to evolving consumer trends and preferences, businesses can not
only meet current expectations but also position themselves strategically for the future.

3.2 ECO-FRIENDLY PRODUCTS/GREEN PRODUCTS

Eco-friendly products, also known as green products, refer to goods and services that have
been designed with a focus on minimizing their negative impact on the environment. These
products aim to contribute to sustainable living by promoting resource efficiency, reducing
pollution, and conserving energy. In essence, eco-friendly products prioritize the well-being
of the planet and its ecosystems throughout their lifecycle – from production to disposal. One
crucial aspect of eco-friendly products is the use of sustainable materials. This involves
selecting raw materials that can be sourced and replenished without depleting natural
resources excessively. For instance, bamboo, recycled paper, organic cotton, and reclaimed
wood are commonly employed to create products that reduce the strain on ecosystems.
Additionally, the production processes for these materials often involve fewer chemicals and
energy, further lessening their environmental footprint. Energy efficiency is another hallmark
of eco-friendly products. Manufactures aim to reduce energy consumption during production,
transportation and use. This can be achieved through innovations in manufacturing
techniques, the implementation of renewable energy sources, and the incorporation of energy
efficient techniques.

Packaging plays a pivotal role in determining the eco friendliness of a product. Sustainable
packaging aims to minimize waste by using recycled materials and reducing excess
packaging. Companies are increasingly adopting biodegradable or compostable packaging
alternatives to further mitigate the environmental impact of their products. This shift not only
addresses the issue of plastic pollution but also aligns with the principles of a circular
economy, where materials are reused, recycled, or composted to minimize waste. The
lifecycle of eco-friendly products is a critical consideration in their design. From cradle to
grave, these products are intended to leave the smallest ecological footprint possible. This
includes designing products that are durable, easily repairable, and recyclable. Manufacturers
often encourage consumers to recycle their products or provide take-back programmes to
ensure responsible disposal. Consumer awareness and education play a vital role in
promoting the adoption of eco-friendly products. As consumers become more informed about
the environmental impact of their purchasing decisions, they are increasingly inclined to
choose products that align with their values. Companies are responding to this shift by
transparently communicating the eco-friendly aspects of their products, thereby building trust
and loyalty with environmentally conscious consumers. Eco-friendly products embody a
commitment to environmental stewardship by prioritising sustainable materials, energy
efficiency, responsible packaging, and a lifecycle approach.

BENEFITS OF GREEN PRODUCTS

Benefits available for firms and industries;

1) Helps to access new markets.

2) Can help to achieve competitive advantage over other companies.
3) Protects the company in the long run.
4) Aids in long term growth.
5) Improves the quality of the environment.
6) Environmentally responsible company will hold a unique status in the society.

Benefits for the consumers;

1) Health benefits.
2) The network of green users expands.
3) Less threat to the ecosystem by the consumers.
4) The earth will be protected from hazardous goods.
3.3 ECO- LABELLING

It is an environmental claim that appears on the packaging of a product. It is awarded to a

manufacturer by an appropriate authority. ISO 14020 is a guide to the award of eco- labelling
works like an instructor for the firms who indulge in the production of goods and services
that cause damage both to the health of humans and the environment. The government of
India launched an eco-mark scheme in 1991 to increase consumer’s awareness with respect to
environment friendly products. The products are requiring eco-marketing are textiles, toilet
soaps, detergent cakes, paints, packages, pesticides, cosmetics, and pharmaceutical products.

Eco-mark scheme

The government of India launched an eco-mark scheme in 1991 to increase consumer’s

awareness towards environmental friendly products. Another aim of the eco-mark scheme is
to stimulate the consumers to go for pro environmental products. The eco-mark is needed for
products like cosmetics, leather goods paints, lubricant oil, plastic products, batteries, etc...

Green product certification

When looking for green products, there are a couple of ways you can ensure you are not
being duped in to buying a fake, though it can be tricky. A stroll through any supermarket
will yield products labelled “earth friendly”, “eco-friendly”, “biodegradable” and many other
buzzwords which will make you feel warm and fuzzy about the purchase, even though this
could be false. A good rule of thumb is to look for the certification labelling, if that is not on
the product then keep on walking. This leads us into what certification labels are available
and what do they mean, which is why we have put together the list below. This is not an all
en-compassing list, it will however provide you with the most common certifications and
meaning.

 ENERGY STAR: A labelling program for energy efficient home, building

products, electronics and appliances. ENERGY STAR is a joint program of the U.S.
Environmental Protection Agency and the U.S. Department of Energy helping
protect the environment through energy efficient products and practices.
 Green Seal: Green Seal certification ensures that a product meets rigorous,
science- based leadership standards. It is a lifecycle assessment based labelling
 program for building products, green operations and maintenance procedures. A
Green Seal can be found on anything from a coffee filter to a hotel.
 Forest Stewardship Council: A certification program for wood products that
come from forests that are managed in an environmentally responsible, socially
beneficial and Economical viable way. They are a non-profit organisation, not
affiliated with the government, working to promote responsible management of the
world’s forests since 1993.
 Leadership in Energy and Environmental Design (LEED): The LEED
certification was created by the U.S. green building council in 2000. it is an
internationally recognized standard for green building and design. The rating system
works off 5 categories and is associated to both business and residential buildings,
LEED focuses on whole building sustainability which can be used by diverse
professionals and government agencies. You could look for the LEED seals when
looking to purchase green homes or office buildings, as an example.
 USDA Organic Product: When looking to green at the dinner table many will
look for certified organic foods. The United States department of agriculture has
implemented the National Organic Program, which will indicate whether an
agricultural product was produced in such a way that integrates biological, cultural
and natural resources. In general this means synthetic fertiliser, irradiation or genetic
engineering practices will not be used.

3.4 MEASURES TAKEN BY GOVERNMENT TO PROMOTE ECO-

FRIENDLY/GREEN PRODUCTS

 GREEN TAX: Green taxes also called environmental taxes, pollution taxes and
eco taxes are excise taxes on environmental pollutants. “Green taxes” are meant to
improve the environment or reduce the negative impact on the environment or create
an environmentally sustainable environment. “Green taxes” are a kind of economic
instruments to address environmental problems. It is generally believe that “green
taxes” will reduce environmental harm in the least costly manner, by encouraging
changes in behaviour by firms, organisations, communities and households and
individuals etc. Taxes on pollution provide clear incentives to polluters to reduce
emission.
 One “green tax” that has recently gained favour is a carbon tax. Australia introduced
carbon tax (July 2012), which is an excise levy on the carbon based content of fossil
fuels as a means of reducing green-house gas emissions that contribute to global
warming and climate change. The carbon tax may encourage development and use of
clean energy sources in Australia. India and Japan had also introduced carbon tax. In
Europe, a number of countries have imposed energy taxes or energy taxes based
partly on carbon content. There is apparently no “green tax” in the USA; however
“green tax” supporter often cite the gasoline tax as a “green tax”. Many European
countries have used pollution taxes imposing taxes on emissions of common air
pollutants such as sulfur dioxide and nitrogen oxides. To combat the negative
environmental effects, several states in India (Maharashtra, Andhra Pradesh,
Himachal Pradesh, and Karnataka- August 2010) have implemented/going to
implement a new “green tax” to fight pollution from old vehicles and creating better
public transportation.
Everyone may not agree with “green taxes” however, “green taxes” can be seen as
an incentive to lessen environmental burden and preserve the environment. The
revenues generated by “green taxes” can also be used for other environmental
preservation projects or to cut other taxes. Nevertheless, everyone would sure like to
see an environmentally sustainable future and a healthy natural and living
environment in their country.
 INDIA’S SOLAR MISSION: India’s solar mission provides strong support to
solar deployment and includes a goal of developing 20,000 megawatts of solar power
capacity by 2022. A key objective of the program is to boost the capacity of India to
domestically manufacture solar panels. To achieve this objective, the government of
India has required Indian developers of solar photovoltaic projects using crystalline
silicon technology to buy solar modules manufactured in India in order to take
advantages of the programs benefits, including subsidies and long term competitive
rates for solar power. These requirements to purchase locally manufactured solar
panels are referred to as domestic content rules. The government of India initially
exempted thin film solar cells having lower efficiency solar panels used in large scale
industrial solar projects from the domestic content rules because of low domestic
capacity to manufacture such cells. This loophole created an opening for foreign
countries, including the United States and China, to export thin film cells to India.
 U.S. exports of thin film solar cells to India have been particularly successful thanks
to low interest loans from the U.S. overseas private investment corporation and the
export import bank. The result is that foreign thin-film panels now dominate India’s
market. Whereas global thin film installations are a very small portion of total solar
deployment, in India they are the vast majority. To correct this imbalance and protect
India’s solar manufacturers, India is now considering expanding the use of domestic
content rules in thin film technologies in the second phase of its program, which may
curtail imports of American made solar panels to India.
Concerned about the impact that the potential expansion of India’s domestic content
rules in thin-film technologies would have on its exports, the United States filed a
claim at the WTO. In this claims, the United States asserts that India’s domestic
content rules appear to have violated trade rules in the general Agreement on Trade
and Tariffs, the Agreement on Trade Related Investment Measures, and the
Agreement on Subsidies and Countervailing Measures by allegedly providing more
favourable treatment to domestic solar producers and products than to foreign ones.
Officially launched in November 2009, Jawaharlal Nehru National Solar Mission
(JNNSM) is one of the eight national missions laid out in India’s National Action
Plan on Climate Change (NAPCC). It aims to incentivize the installation of 22,000
MW of on and off grid solar power using both photovoltaic concentrated solar power
technologies by 2022, as well as a large number of other solar applications such as
solar lighting, heating, and water pumps. As the power trading arm of the National
Thermal Power Corporation (NTPC), NTPC Vidyut Vyapar Nigam Ltd (NVVN) has
been designated as the nodal agency to ensure the execution of phase 1 of the
mission. The solar mission will be implemented in three stages, with specific targets
defined for the respective segments.

3.5 THE CURRENT INDIAN ECONOMY POTENTIAL FOR GREEN

PRODUCTS

When we consider the present day advertisement campaigns for products and services, there
is a prominent space for green products and services. This is a clear indicator showing the
change in the market towards green purchasing culture amongst the consumers.

As a result, the manufactures and the marketers of products are coming up with green
substitutes and much more environmentally sound product ideas and products in the market.
In a report by the Economic Times published in 2014 based on the nation-wide survey
conducted in India by Dupont, an American company, with the objective of better
understanding the awareness and attitudes of Indian consumers towards green and bio based
products, have confidence that green products are better for the environment, and feel that bio
based ingredients enhance the desirability of a product.

The survey was the third such study by the company, with the first conducted in North
America (the US and Canada) and the second in china. The research took place in 12 major
Indian cities, with 1270 respondents giving face to face interviews. The observation of the
survey was that more than 63 per cent of consumers are familiar with green products, and of
those, 85 per cent have confidence that they are better for the environment. Compared with
the surveys conducted in other parts of the country, India’s confidence in green products
being better for the environment is higher than other countries surveyed by Dupont in
previous years, as per the said survey. Previous studies found china to be 70 per cent
confident. However, Canada (78 per cent) and the United States (76 per cent) out number
India (63 per cent) and China (43 per cent) in terms of overall familiarity with the green
products. This trend can be easily understood from the change in consumer preference
towards LED lighting, recycled wood, energy saving air conditioners, solar products, eco-
friendly paints, etc. in the economy.

This change has just begun a few years back. When we consider the market situation five to
ten years back, consumer did have much knowledge or awareness about these products. The
trend started a few years back as a result of the rapid promotion given to LED bulbs and eco-
friendly paints, etc. through effective marketing campaigns amongst the prospective
consumers in the market.

The market for environmentally sound products and services has grown significantly with
regard to establishing new products in an eco-friendly way and making existing products and
services environmentally sound. Then too, there exist a huge untapped business potential in
the environmental sector. This could be due to the lack of support and orientation for
entrepreneurs looking to enter into environmental sector ventures, so there are various
support schemes for the benefit of eco entrepreneurs. This include the various schemes
offered by the various governments in the centre and state in sector like IT enabled services,
electronics, agriculture, manufacturing, industry-agnostic, etc. Some of the examples of the
schemes include the following:
➔ Support for international patent protection in Electronics and Information Technology
(SIP-EIT).
➔ MGS stands for Multiplier Grants Scheme.
➔ Software Technology Park (STP) Scheme.
➔ Newbern Innovation and Entrepreneurship Development Centre (Newbern IEDC)
➔ SIDBI’s Sustainable Finance Scheme, for example.

There are various other initiatives by various other organisations for the development of
industrial establishments in the environmental sector. One such initiative is New Ventures
India, a joint initiative of the CII (Confederation of Indian Industries) and the World
Resources Institute that provides financial support to entrepreneurs. The sectors in which they
provide support include clean technology, green building materials, renewable energy,
organic agriculture, energy efficiency, and eco-tourism.

As per their financial assistance scheme, they came to conclusion regarding the average
investment required by a green start-up initially, which be in the range of rest one ten core.
The above trend shows the potential market for green products in the Indian market.
Henceforth, it is clear to draw a conclusion from the above paragraphs. Starting and carrying
on a business in an environmentally sound manner is possible because there are various
support schemes from various sources that will ensure a stable business.

3.6 MARKET PRESENCE OF GREEN PRODUCTS AND SERVICES IN

THE INDIAN ECONOMY IN DIFFERENT PRODUCT AND SERVICE
SECTIONS

As per the international lifestyles survey 2019 conducted by Euro monitor, clearly states that
words like “eco-friendly”, “recyclable”, “charity” and “natural” are the new buzzwords
influencing purchases of consumer products in India from soaps and cosmetics to tea and soft
drinks and more. According to the findings of a Euro monitor study conducted among Indian
consumers to learn about the parameters influencing green purchase decisions, environment
consciousness and eco friendliness of brands were ranked as the highest parameters
influencing shoppers (67 per cent), followed by natural and organic ingredients (66 and 65
per cent), respectively.
This is a clear indicator of the shift of consumer groups towards green products and services
in the consumer product segment. But green or eco-friendly products and services; their
scope is very broad in various product and service classes. Likewise, one such prominent
product or service class is the infrastructure development industry. What makes it a
prominent industry in the economy is due to its economic contribution to society.
Simultaneously, infrastructure developments are a barometer of a country’s economic
progress and development. So, it is clear what makes the infrastructural industry important,
but at the same time, there can be various problems associated with this industry, as there is
always a social cost associated with this industry, so it is important to keep the social cost in
constant check. The main reason behind adding up social cost in the real estate business is the
fact that real estate development is one of the biggest consumers of natural resources and
generates significant amounts of waste and pollutants. According to a report by India’s
leading property consultant firm, ANAROCK property consultants, Business Line publishes
an article in 2018 stating that the real estate sector alone consumes approximately 40 per cent
of natural raw materials, 25 per cent of water, and 35 per cent of energy resources.
Furthermore, it emits 40 per cent of waste and 35 per cent of greenhouse gases, indicating the
existence of a social cost for real estate or infrastructure projects.

The most effective way in which the social cost can be addressed in the most environmentally
sound way is through adopting a green building culture amongst society. Green building is a
unique concept in the development of infrastructural undertakings where both structure and
processes are environmentally responsible and resource efficient throughout a building’s
lifecycle.

Ana rock property consultants also reported that green buildings can improve the
environment in numerous ways. The consultant said that they can reduce energy consumption
by 20-30 per cent, and significantly reduce waste generation through extensive recycling.
However, green buildings may cost up to 15 per cent more than conventional buildings. Still,
the long term benefits, such as low operating cost, along with potential health benefits for the
occupiers, make it a viable option. Their report said that the growth of green buildings in
India would be driven by increasing awareness, environmental benefits, government support,
subsidies, and compulsions. Improving affordability is also a factor in growth. The report also
pointed out that countries with a larger population and limited resources should adopt green
building practices faster to have sustainable development.
The main finding of the study conducted by ANAROCK property consultants was that the
green building marketing in India is estimated to double by 2022 to 10 billion sq. ft., valued
at around USD 35-50 billion, driven by increasing awareness level, environmental benefits,
and government support. The studies mentioned above are clear indicators of the increase in
the market presence of green products, but when we try to understand the overall presence of
green products in the market, there are various difficulties in drawing an overall conclusion.
As there exist both heterogeneous and homogeneous product classes in a market structure, so,
there is always a practical difficulty in drawing a general conclusion about the market for
green products, because of which we have to separately identify the presence of green
products in various product groups or segments. However, the overall goal of our study is to
learn about general consumer awareness of green products and consumer preference, the
effects of premium pricing on green products, and consumer satisfaction levels. Overall, the
consumers are having the positive attitude towards the consumption of the green products.
Further, the consumers are absolutely satisfied with the green products quality, price, and
features. The study also found that the consumers are willing to consuming the green
products a long time and they are happily recommending using the green products friends,
relatives, and neighbours. The consumer’s preference is good enough to use the green
products in the study area.
 CHAPTER 4

ANALYSIS OF CONSUMER PREFERENCE TOWARDS ECO-

FRIENDLY PRODUCTS
4.1 Gender of respondents

Table 4.1 Gender wise classification of respondents

SI.NO ITEM FREQUENCY PERCENTAGE
1 MALE 29 58
2 FEMALE 21 42
Total 50 100
Source: Primary data / SPSS output

Fig 4.1 Bar diagram showing Gender wise classification of respondents

Interpretation

From the above figure and table 4.1, it can be understood that majority of the respondents are
male (58 per cent).
4.2 Age of respondents

Table 4.2 Age wise classification of respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 18-25 Years 34 68
2 26-40 Years 5 10
3 41-55 Years 10 20
4 56 Years and above 1 2
Total 50 100
Source: Primary data / SPSS output

Fig 4.2 Bar diagram showing Age wise classification of respondents

Interpretation

From the above figure and table 4.2, it can be understood that majority of the respondents are
belonging to the age category 18 to 25 (68 per cent),
4.3 Educational qualification of respondents

Table 4.3 Educational qualification of respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 SSLC 8 16
2 PLUS TWO 15 30
3 UG 25 50
4 PG 2 4
Total 50 100
Source: Primary data / SPSS output

Fig 4.3 Bar diagram showing Educational qualification of respondents

Interpretation

From the above figure and table 4.3, it is evident that 50 per cent of the respondents were
graduates, 30 per cent of the respondents completed higher secondary, 16 per cent of the
respondents completed SSLC and 4 per cent of the respondents are post graduates.
4.4 Classification on the basis of income of respondents

Table 4.4 Level of income of respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 Below 5000 23 46
2 Below 20000 16 32
3 Above 20000 11 22
Total 50 100
Source: Primary data / SPSS output

Fig 4.4 Bar diagram showing Level of income of respondents

Interpretation

Majority of respondents belong to the income group of below 5000 (46 per cent) and least of
the respondents belong to the income group of above 20000 (22 per cent).
4.5 Green products purchased by respondents

Table 4.5 Green products purchased by respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 Solar light 11 22
2 Solar heater 2 4
3 Paper bags 13 26
4 Handicraft items 15 30
5 Clay products 9 18
Total 50 100
Source: Primary data / SPSS output

Fig 4.5 Bar diagram showing Green products purchased by respondents

Interpretation

From the above figure and table 4.5, it is clear that most of the respondents are in the habit of
purchasing handicraft items (30 per cent). 26 per cent of respondents purchased paper bags,
22 per cent of respondents purchased solar light, 18 per cent purchased clay products and
only 4 per cent of respondents purchased solar heater.
4.6 Source of awareness

Table 4.6 Source of awareness about green products

SI.NO ITEM FREQUENCY PERCENTAGE

1 Newspaper 4 8
2 Magazines 1 2
3 TV 7 14
4 Friends and relatives 31 62
5 Website 7 14
Total 50 100
Source: Primary data / SPSS output

Fig 4.6 Bar diagram showing Source of awareness about green products

Interpretation

62 per cent of respondents come to know about green products through friends and relatives
and 28 per cent of respondents got information about green products through TV (14 per
cent) and websites (14 per cent). Newspaper provides awareness about green products to 8
per cent of respondents. Magazines provide awareness to a small percentage of respondents
(2 per cent).
4.7 Information about recent purchase

Table 4.7 Showing information about recent purchase

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 20 40
2 No 30 60
Total 50 100
Source: Primary data / SPSS output

Fig 4.7 Pie diagram showing information about recent purchase

Interpretation

Most of the respondents (60 per cent) not make recent purchase, only 40 per cent of
respondents purchased recently.
4.8 Factors influencing the purchase decision

Table 4.8 Showing factors influencing the purchase decision

SI.NO ITEM FREQUENCY PERCENTAGE

1 Quality 11 22
2 Environmental protection 20 40
3 Safety 3 6
4 All 16 32
Total 50 100
Source: Primary data / SPSS output

Fig 4.8 Pie diagram Showing factors influencing the purchase decision

Interpretation

The major factor induces respondents to purchase green product is environmental protection
(40 per cent). 32 per cent of respondents are in the habit of purchase of these products by
expecting all these benefits. 22 per cent of respondents purchase these products, because of
its quality and 6 per cent of respondents purchase these products because its safety.
4.9 Willing to pay higher price

Table 4.9 Showing whether respondents are willing to pay higher price

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 20 40
2 No 30 60
Total 50 100
Source: Primary data / SPSS output

Fig 4.9 Pie diagram showing whether respondents are willing to pay higher price

Interpretation

60 per cent of respondents are not willing to pay higher price for green products and 40 per
cent are willing to pay higher price.
4.10 Satisfaction level

Table 4.10 Showing satisfaction level of respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 Satisfied with all products purchased 22 44
2 Satisfied with certain products 26 52
purchased
3 Not satisfied 2 4
Total 50 100
Source: Primary data / SPSS output

Fig 4.10 Pie diagram showing satisfaction level of respondents

Interpretation

52 per cent of respondents are satisfied with certain products purchased by them. 44 per cent
of respondents satisfied with all products purchased by them and 4 per cent of respondents
are not satisfied with the products they purchased.
4.11 Opinion about the quality of the products

Table 4.11 Showing Respondents opinion about the quality of the products

SI.NO ITEM FREQUENCY PERCENTAGE

1 Excellent 10 20
2 Good 34 68
3 Average 4 8
4 Poor 2 4
Total 50 100
Source: Primary data / SPSS output

Fig 4.11Pie diagram showing Respondents opinion about the quality of the products

Interpretation

68 per cent of respondents have good opinion about the quality of the products they have
purchased. 20 per cent of respondents have excellent opinion about the quality. 8 per cent of
respondents believe that green products have an average quality and 4 per cent of respondents
have poor opinion about the quality.
4.12 Awareness of contribution to sustainable future

Table 4.12 Showing whether green products contribute to the sustainable future

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 47 94
2 No 3 6
Total 50 100
Source: Primary data / SPSS output

Fig 4.12 Pie diagram showing whether green products contribute to the sustainable future

Interpretation

94 per cent of respondents are aware that purchase of green products will contribute to the
sustainable future and 6 per cent respondents are not aware about this.
4.13 Showing mode of purchase

Table 4.13 showing mode of purchase of respondents

SI.NO ITEM FREQUENCY PERCENTAGE

1 Directly purchased from the 6 12
manufacturer
2 Purchased from agents 6 12
3 Purchased from shops 22 44
4 Online shopping 16 32
Total 50 100
Source: Primary data / SPSS output

Fig 4.13 Histogram Showing mode of purchase of respondents

Interpretation

44 per cent of respondents are in the habit of purchasing products from shops. 32 per cent of
respondents purchased products from online. 12 per cent respondents depends agents to get
the product and 12 per cent respondents purchased directly from the manufacturers.
4.14 Guarantee for the product

Table 4.14 Showing whether respondents get guarantee for the products purchased

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 22 44
2 No 28 56
Total 50 100
Source: Primary data / SPSS output

Fig 4.14 Pie diagram showing whether respondents get guarantee for the products purchased

Interpretation

Most of the respondents do not getting any guarantee from the product they purchased (56
per cent) and 44 per cent of respondents got guarantee for the product.
4.15 Reliability of the product

Table 4.15 Showing reliability of the product

SI.NO ITEM FREQUENCY PERCENTAGE

1 Excellent 7 14
2 Good 33 66
3 Average 8 16
4 Poor 2 4
Total 50 100
Source: Primary data / SPSS output

Fig 4.15 Histogram Showing reliability of the product

Interpretation

66 per cent of respondents have a good opinion about the reliability of the products they
purchased. 16 per cent of respondents believe that reliability is average. 14 per cent of
respondents have an excellent opinion about the reliability and only a few (4 per cent)
respondents are in the opinion that its reliability is poor.
4.16 Difficulty in availability

Table 4.16 Showing whether respondents face any difficulty in availability of products

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 34 68
2 No 16 32
Total 50 100
Source: Primary data / SPSS output

Fig 4.16 Histogram Showing whether respondents face any difficulty in availability of

products

Interpretation

68 per cent of respondents are facing difficulty in availability of the products and 32 per cent
of people not facing any difficulty in availability.
4.17 Awareness of eco-label

Table 4.17 Showing whether respondents are aware about the eco-label

SI.NO ITEM FREQUENCY PERCENTAGE

1 Yes 11 22
2 No 39 78
Total 50 100
Source: Primary data / SPSS output

Fig 4.17 Histogram showing whether respondents are aware about the eco-label

Interpretation

78 per cent of respondents are not aware about the eco-label and 22 per cent of respondents
are aware about this.
4.18 ONE WAY ANOVA

H0: There is no significant difference between respondents belonging to various income

groups with respects to their preference towards eco-friendly products if the product has the
brand name that the consumer has previously used.

Table 4.18

Factor Income N Mean F Sig.

If the product has the brand Below 5000 23 3.61 8.992 .000
name that the consumer has
previously used.
Below 16 2.38
20000
Above 11 2.36
20000
Total 50 2.94
Source: Primary data / SPSS output

Interpretation

Since significant value is .000 is less than 0.05 null Hypothesis is rejected. So there is
significant difference between respondents belonging to various income groups with respects
to their preference towards eco-friendly products if the product has the brand name that the
consumer has previously used.

Having highest mean of 3.61, respondents belonging to below 5000 Income group are having
more preference towards eco-friendly products if the product has the brand name that the
consumer has previously used.
H0: There is no significant difference between respondents belonging to various income
groups with respects to their opinion on they would recommend the products to friends based
on quality.

Table 4.19

Factor Income N Mean F Sig.

Recommend the Below 5000 23 3.78 3.692 .032
products to friends
based on quality.
Below 20000 16 2.63
Above 20000 11 3.00
Total 50 3.24
Source: Primary data / SPSS output

Interpretation

Since significant value is .032 is less than 0.05 null Hypothesis is rejected. So there is
significant difference between respondents belonging to various income groups with respect
to their opinion on they would recommend the products to friends based on quality.

Having highest mean 3.78, respondents belong to below 5000 income group would
recommend the products to friends based on quality.
H0: There is no significant difference between respondents belonging to various income
groups with respect to their opinion about government’s initiative to promote eco-friendly
products.

Table 4.20

Factor Income N Mean F Sig.

Government should Below 5000 23 3.96 4.521 .016
take initiative to
promote eco-friendly
products
Below 20000 16 2.88
Above 20000 11 2.73
Total 50 3.34
Source: Primary data / SPSS output

Interpretation

Since significant value is .016 is less than 0.05 null Hypothesis is rejected. So there is
significant difference between respondents belongs to various income groups with respect to
their opinion about government’s initiative to promote eco-friendly products.

Having highest mean of 3.96, respondents belonging to below 5000 income group are having
the opinion that the government should take initiative to promote eco-friendly products.
H0: There is no significant difference between respondents having various educational
qualifications with respects to their awareness about various brands of eco-friendly products.

Table 4.21

Factor Educational N Mean F Sig.

qualification
Awareness SSLC 8 2.63 .750 .528
about
various
brands
PLUS TWO 15 2.87
UG 25 2.80
PG 2 4,00
Total 50 2.84
Source: Primary data / SPSS output

Interpretation

Since significant value .528 is more than 0.05 null Hypothesis is accepted. So there is no
significant difference between respondents having various educational qualifications with
respects to their awareness about various brands of eco-friendly products.
H0: There is no significant difference between respondents belongs to various age groups
with respects to whether they would switch to eco-friendly products if they were more
available at local store.

Table 4.22

Factor Age N Mean F Sig.

Switch to eco-friendly 18-25 34 3.29 ,688 .564
products if they were more
available at local store
26-40 5 3.20
41-55 10 3.00
56 years 1 5.00
and
above
Total 50 3.26
Source: Primary data / SPSS output

Interpretation

Since significance value .564 is more than 0.05 null Hypothesis is accepted. So there is no
significant difference between respondents belongs to various age groups with respects to
whether they would switch to eco-friendly products if they were more available at local store.
Motive for using eco-friendly products

Mean rank analysis

Mean rank analysis showing the motive for using eco-friendly products.

Table 4.23

SI.NO Motive Mean Mean rank

1 Concern for health 2.40 3
2 Concern for status 1.04 4
4 Concern for the environment 2.58 2
4 To use better quality products 2.95 1
Source: Primary data / SPSS output

Interpretation

Having the highest mean of 2.95 to use better quality products is considered as the most
important motive according to the respondents. Second important motive is concern for the
environment having the mean of 2.58. Concern for status is the least important motive of
respondents which have only 1.04 mean.
 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

Findings from percentage analysis:

 Females make up the vast majority of respondents, as compared to male.

 The majority of the respondents belonged to 18-25 age group.
 Majority of the respondents are graduates.
 Majority of respondents belonged to the income group of below 5000.
 Most of the respondents are in the habit of purchasing handicraft items.
 Most of the respondents came to know about green products through friends and
relatives.
 Newspaper provides least amount of awareness about green products.
 Most of the respondents are not purchased green products recently.
 The major factor induces respondents to purchase green product is environmental
protection.
 Majority of respondents are not willing to pay higher price for green products.
 Majority of respondents are satisfied with certain products purchased by them and
only few respondents are not satisfied with the products they purchased.
 Most of the respondents have good opinion about the products they are purchased.
 Most of the respondents are aware that purchasing eco-friendly products will
contribute to the sustainable future.
 Majority of respondents are in the habit of purchasing products from shops.
 Most of the respondents did not get any guarantee for the product they purchased.
 Most of the respondents have a good opinion about the reliability of the products they
purchased.
 Most of the respondents were faced difficulty in availability of the products.
 Most of the respondents are not aware about the eco-label.
Findings from one way ANOVA:

 There is significant difference between respondents belonging to various income

groups with respects to their preference towards eco-friendly products if the product
has the brand name that the consumer has previously used.
Respondents belong to income group of below 5000 is having more preference
towards eco-friendly products if the product has the brand name that the consumer has
previously used.
 There is significant difference between respondents belonging to various income
groups with respects to they would recommend the products to friends and relatives
based on quality.
Respondents belong to the income group of below 5000 would more likely to
recommend the green products to friends based on quality.
 There is no significant difference between respondents having various educational
qualifications with respects to their awareness about various brands of green products.
 There is no significant difference between respondents belongs to various age groups
with respects to whether they would switch to green products if they were more
available at local store.

Findings from mean rank analysis:

 To use better quality products is considered as the most important motive according to
the respondents.
 Concern for status is the least important motive of the respondents.
5.2 SUGGETIONS

 There should be more campaigns including larger section of the society towards green
lifestyle practices.
 Consumers have felt deceived by fake green products. So, it is the responsibility of
the concerned authorities to monitor the green market.
 Proper monitoring of green product/services market by authorities will also help in
avoiding a situation of exorbitant pricing for green products.
 Consumers should be given more incentives by the concerned towards promotion of
green products.
 There is need for providing more information about the products through TV and
websites.
 Provide information about eco-label to those who are not aware of it.
 Distribute paper bags in educational institutions, municipalities, etc.
 Conduct awareness classes among the people about the problems of plastic bags.
 Provide information to people about the contribution of green products to sustainable
future.
 Setup specialised outlets to make easy availability of green products.
5.3 CONCLUSION

The topic of the study is “A study on consumer preference towards eco-friendly/Green

products”. This study has high relevance in the modern economy due to the impact on
environmental degrading products. Green products or eco-friendly products have a prominent
role in conservation of environment. So there is a need for promoting the green products.

From this study, it is clear that most of the people are in the habit of purchasing green
products like solar light, solar heater, paper bags, handicraft items and clay products. But
most of the customers are not willing to pay higher price for these products. So, government
should take initiative to promote green products and make green products available at local
stores at cheaper price. Here, the null hypothesis is rejected. So we can assume that there is
significant relationship between the purchasing decision and level of income.

Consumers prefer green products as a result of its quality and environmental protection but
still, they are concerned about the price of green products. The shift in purchase behaviour
towards the green products surmises that the society is ready to lead a green lifestyle. Even
so, lack of monitoring and high cost deters the shift to this segment from traditional product
line. All that we need is change in the mind set of people. To see for them and accept what is
important.
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Green Market Opprtunities” , 1998.
3. Chan, R.Y.K. “Determinants of Chinese consumers green purchase behaviour,
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4. Faizan Zafar Sheikh, Ashfaq Ahmed Mirza, Anam Aftab, Bilal Asghar – “Consumer
green behaviour toward green products and green purchase decision”. International
journal of Multidisciplinary Science and Engineering”, 2014.
5. Grundey, D. “Eco-marketing and Eco-labelling: do it ensure customer loyalty in
Lithuania” – Transformations in business and economics, 2009.
6. Prashant Kumar, Bhimrao M Ghodeswar, “Factors affecting consumer’s green
product purchase decisions.” Marketing intelligence and planning, 2015.

BOOKS:

1. Research methodology – C.R.Kothari, C H publications New Delhi

2. Marketing management – A Vinod

WEBSITES:

 https://journalppw.com
 www.researchgate.net
 https://ijcrt.org
 https://www.jetir.org
 https://eprajournals.com
 https://search.proquest.com
 www.worldwidejournals.com
 https://www.academia.edu
 https://journals.sagepub.com
APPENDIX
 A STUDY ON CONSUMER PREFERENCE TOWARDS
ECO-FRIENDLY/GREEN PRODUCTS WITH SPECIAL
REFERENCE NEMMARA GRAMA PANCHAYATH

QUESTIONNAIRE

1. Gender
 Male
 Female

2. Age
 18-25 Years
 26-40 Years
 41-55 Years
 56 Years and above

3. Educational qualification
 SSLC
 PLUS TWO
 UG
 PG

4. Level of income
 Below 5000
 Below 20000
 Above 20000
5. Which is the product you purchased?
 Solar light
 Solar heater
 Paper bags
 Handicraft items
 clay products

6. How do you come to know about these products?

 News paper
 Magazines
 TV
 Friends and relatives
 Website

7. Do you purchase any of the products recently?

 Yes
 No

8. What induces you to purchase these products?

 Quality
 Environmental protection
 Safety
 All

9. Are you willing to pay a higher price for these products?

 Yes
 No

10. Are you satisfied with the products that you are purchased?
 Satisfied with all products purchased
 Satisfied with certain product purchased
 Not satisfied

11. What is your opinion about the quality of the products?

 Excellent
 Good
 Average
 Poor

12. Are you aware that purchasing Eco-friendly product will contribute to the
sustainable future?
 Yes
 No

13. How do you make the purchase?

 Directly purchased from the manufacturer
 Purchased from agents
 Purchased from shops
 Online shopping

14. Do you get any guarantee from the product you are purchased?
 Yes
 No

15. What is your opinion about the reliability of the products?

 Excellent
 Good
 Average
 Poor

16. Do you face any difficulty in availability of the products?

 Yes
 No

17. Do you aware about the eco label?

 Yes
 No

18. Rate the following statements based on your opinion.

Strongly Disagree Neutral Agree Strongly

disagree agree
18.1 I would recommend eco-
friendly products based on
quality to my friends.
18.2 I would switch to eco-
friendly products if they were
more available at my local store.
18.3 I am more likely to buy a
certain product because it has a
brand name I have used in the
past.
18.4 I am aware of various
brands of eco-friendly products.
18.5 According to me
Government should take
initiative to promote eco-
friendly products.

19. What is your motive for using eco-friendly products?

SI.NO. MOTIVE RANK
1 Concern for health
2 Concern for status
3 Concern for environment
4 To use better quality products