Consumer Attitude 4 Green Practices

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Exploring consumer attitude and behaviour towards green practices in the lodging industry in India Kamal Manaktola and Vinnie Jauhari School of Hospitality & Tourism Management, Institute for International Management & Technology, Haryana, India Abstract Purpose – The study seeks to explore the factors which influence the consumer attitude and behaviour towards green practices in the lodging industry in India and also to explore the consumers’ intentions to pay for these practices. Design/methodology/approach – A quantitative and qualitative research methodology using a questionnaire along with secondary research has been proposed. A structured questionnaire has been used using convenience-sampling techniques from National Capital Region in India. Correlation and factor analysis has been used to explore consumers’ attitudes and behaviour towards green practices in the lodging industry. Findings – The consumers using hotel services are conscious about environmentally friendly practices in India. They patronise the hotels that have adapted green practices though not compromising on service quality. The consumers would prefer to use lodging that follows these practices but are not willing to pay extra for these services. Indian hotels have the competitive advantage over similar products if they follow green practices. Practical implications – The hotels would have to invest in environmentally friendly practices and look at long-term gains. The government needs to acknowledge and institutionalise the practice by instituting rewards and offering benefits in taxes. Originality/value – The paper attempts to bring out facts regarding customer buying behaviour towards green practices in the Indian hotel industry. The resource scenario in India is grim with regard to the water and sanitation. The tourism industry has a big responsibility in ensuring that business models adopted are sustainable in the long run and hence the need to imbibe green practices as a preferred business model. Keywords Green marketing, Consumer behaviour, Hotel and catering industry, Corporate social responsibility, India Paper type Research paper The current issue and full text archive of this journal is available at www.emeraldinsight.com/0959-6119.htm It has come to our attention that the paper “Exploring consumer attitude and behaviour towards green practices in the lodging industry in India” by Manaktola, K. and Jauhari, V. published in the International Journal of Contemporary Hospitality Management, Vol. 19 No. 5 did not reference two previous papers entitled “An analysis of the trade-offs and price sensitivity of European consumers to environmentally-friendly food and beverage packaging using conjoint methodology” written by Sue Godfrey and “A survey of environmental management by hotels and related tourism businesses” written by E. Saskia Faulk which the authors drew upon significantly in their research. The authors sincerely apologise for this oversight. IJCHM 19,5 364 International Journal of Contemporary Hospitality Management Vol. 19 No. 5, 2007 pp. 364-377 q Emerald Group Publishing Limited 0959-6119 DOI 10.1108/09596110710757534

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Transcript of Consumer Attitude 4 Green Practices

  • Exploring consumer attitude andbehaviour towards green

    practices in the lodging industryin India

    Kamal Manaktola and Vinnie JauhariSchool of Hospitality & Tourism Management, Institute for International

    Management & Technology, Haryana, India

    Abstract

    Purpose The study seeks to explore the factors which influence the consumer attitude andbehaviour towards green practices in the lodging industry in India and also to explore the consumersintentions to pay for these practices.

    Design/methodology/approach A quantitative and qualitative research methodology using aquestionnaire along with secondary research has been proposed. A structured questionnaire has beenused using convenience-sampling techniques from National Capital Region in India. Correlation andfactor analysis has been used to explore consumers attitudes and behaviour towards green practicesin the lodging industry.

    Findings The consumers using hotel services are conscious about environmentally friendlypractices in India. They patronise the hotels that have adapted green practices though notcompromising on service quality. The consumers would prefer to use lodging that follows thesepractices but are not willing to pay extra for these services. Indian hotels have the competitiveadvantage over similar products if they follow green practices.

    Practical implications The hotels would have to invest in environmentally friendly practices andlook at long-term gains. The government needs to acknowledge and institutionalise the practice byinstituting rewards and offering benefits in taxes.

    Originality/value The paper attempts to bring out facts regarding customer buying behaviourtowards green practices in the Indian hotel industry. The resource scenario in India is grim withregard to the water and sanitation. The tourism industry has a big responsibility in ensuring thatbusiness models adopted are sustainable in the long run and hence the need to imbibe green practicesas a preferred business model.

    Keywords Green marketing, Consumer behaviour, Hotel and catering industry,Corporate social responsibility, India

    Paper type Research paper

    The current issue and full text archive of this journal is available at

    www.emeraldinsight.com/0959-6119.htm

    It has come to our attention that the paper Exploring consumer attitude and behaviour towardsgreen practices in the lodging industry in India by Manaktola, K. and Jauhari, V. published inthe International Journal of Contemporary Hospitality Management, Vol. 19 No. 5 did notreference two previous papers entitled An analysis of the trade-offs and price sensitivity ofEuropean consumers to environmentally-friendly food and beverage packaging using conjointmethodology written by Sue Godfrey and A survey of environmental management by hotelsand related tourism businesses written by E. Saskia Faulk which the authors drew uponsignificantly in their research. The authors sincerely apologise for this oversight.

    IJCHM19,5

    364

    International Journal ofContemporary HospitalityManagementVol. 19 No. 5, 2007pp. 364-377q Emerald Group Publishing Limited0959-6119DOI 10.1108/09596110710757534

  • IntroductionIn the increasingly competitive environment, hotels must make an attempt to attractbusiness from markets that are pro-green practices. The green hotel business is agrowing niche because not only do these establishments differentiate themselves fromthe similar non-green hotels, but they also fulfill a need in the market for lessenvironmentally damaging hotels. Eco-friendly hotel and green hotel are the terms thatrefer to a lodging establishment that has made a commitment to various ecologicallysound practices such as saving water, saving energy, and reducing solid waste (www.hometravelagency.com).

    As people are becoming more aware of the damage caused on the environment byregular business activities, it has become increasingly obvious that the hotel industrydoes more than its share in harming and wasting environmental resources. As a result,more and more guests are looking for hotels following practices to protectenvironment. Becoming a green hotel can be the foundation for a great marketingstrategy, and the first step in marketing is providing consumers with what they wantor need. A growing consumer base exists for green hotels, and marketing the greenpractices of a hotel can help to position it distinctly in the market place.

    Previous research has indicated that customers would choose an eco-friendly hotelover a standard hotel if they were deciding between two otherwise similarestablishments. If the hotel is a desirable place to stay, it will attract the usual range ofcustomers plus those who will specifically seek out the hotel for its environmentallysensitive practices. A very limited research documented on Indian hospitality industryhas prompted the authors to identify customers behavior towards eco-friendlyhospitality lodging practices.

    ObjectivesThe paper assesses the factors contributing to consumers attitude and behaviortowards green hotels. The study also tries to assess whether the consumers are willingto pay for hotels that engage in green practices. The study assumes importance, as theenvironmental initiatives result in cost savings for the hotel but lack of awareness onthe same may reflect in hotels expectation to charge for such initiatives from theconsumer. The study brings in insights on consumer dynamics on green practices inlodging industry in India.

    Literature reviewConsumers make product choices based on which combination of product attributesbest meets their needs based on dimensions of value, cost, and prior satisfaction(Kotler, 1997). Product attributes considered may be either core attributes that deliverbasic benefits sought by customers, or auxiliary or peripheral attributes that providesupplementary benefits and are important for providing added-value anddifferentiation (Zikmund and dAmico, 1993; Fuller, 1999).

    From a customers perspective, the hospitality product consists of core attributes,which include its functional performance and nonessential attributes that deliversecondary benefits, which includes its environmental performance. Environmentalperformance may relate to the product itself or an aspect of it, like water disposal or useof alternate source of energy and may provide an opportunity for productdifferentiation.

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  • Some authors suggest that since the satisfaction of wants tends to ignore thelong-term best interests of society and the environment, within the context ofsustainability the needs and wants of consumers need to be reconsidered(McDaniel and Rylander, 1993). The societal marketing concept holds that theorganizations task is to determine the needs, wants, and interests of target marketsand to deliver the desired satisfactions more effectively and efficiently thancompetitors in a way that preserves or enhances the consumers and the societyswell-being (Kotler, 1997, p. 27).

    It is difficult to find a hospitality product that is 100 percentenvironmentally-friendly. Specifically, it looks at meeting consumer expectations forenvironmental products and the importance of satisfying consumer needs so that theproduct is purchased and the environmental benefit realized.

    Products are defined as environmentally-friendly if in some way they aim atreducing a products negative environmental impact. This is usually specified asproviding measurable improvements throughout the entire product lifecycle (Hindleet al., 1993; Pujari and Wright, 1996, 1999). This may be due to a technology or processchange with development of cleaner and more efficient technologies. It may also bethat the product or aspects of it are recyclable, biodegradable, or designed for reuse,remanufacture or repair, or disposability. It may also be reflected in the choice of rawmaterials, the production of waste, how the product is used, the means of disposal, theamount of pollution it generates, and in its health and safety measures (Shrivastava,1995a). The environmental benefit, whether source reduction, pollution prevention,energy conservation, product-life extension and so on, may vary in significance and beeither more, or less.

    Many environmentalists trace the Green lifestyles to the moment when the spaceprogramme gave us the first view of the Earth from space. Some conclude that it was atthis point all were fully aware of the fragility of the planet. With the passage of time theknowledge of the individuals enhanced, which made them more aware that life on thisplanet was special and worthy of it being conserved. In the last two decades theconcern for environment has raised spreading awareness among all. This is the resultof terms like Ozone depletion, Greenhouse effect and Acid rain, coming to surfaceand the increase in the level of awareness all over (Walker, 2000).

    The environment is the major recipient of negative impacts created by theconstruction and operation of hotel and facilities. The success of tourism, as well as thehotel industry, largely depends on the availability of a clean environment. Hotelssituated in a particular environment consume various recyclable and non-recyclablenatural resources pertinent to that environment. On consumption of resources due totheir usage, different types of solid, liquid and gaseous emissions and discharges arereleased from the hotel premises. Hotels operate in different environment from metrocities, beach resorts, etc. While operating in such a variety of environments, variousresources are consumed. Consumption of environmental resources in an unbalancedmanner creates overburden on the supporting environment.

    Traditionally, the concept of green marketing seemed to be the one associatedwith hype and exaggerated claims about a products environmental impact instead ofthe positive information related to the products. Peattie (1995) and Welford (2000)define it as the management process responsible for identifying, anticipating andsatisfying the requirements of customers and society, in a profitable and sustainable

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  • way. Ecotourism in the Indian context has significant implications for nature andculture conservation and rural livelihood. Increasing environmental responsibilitystimulates implementation of environmental management in hotel industry.Nevertheless, it appears that environmental performance of Indian hotel industry iswell below international practice.

    Environmental issues have become central to competitive success in tourismdestinations and firms worldwide and thus must be of relevance for Indian hotels. Toachieve general and environmental competitiveness on a global tourism market, Indianhotels must increase their environmental performance to satisfy environmentalrequirements of its target markets. According to Foster et al. (2000), the hospitality andtourism industry is under pressure to become more environmentally friendly from thefollowing forces:

    . consumer demand;

    . increasing environmental regulation;

    . managerial concern with ethics;

    . customer satisfaction;

    . maintenance issues related to the physical plant; and

    . the need for aesthetics.

    Roarty (1997, p. 248) discussed two others that should be added as factors exertingpressure for change: the increase in influence of the green investor including banksthat want to limit exposure to environmental risk, and the disproportionate influenceon consumer behavior of environmental pressure groups.

    In the hospitality and tourism industry literature on the subject of environmentalmanagement, environmental pressures for change are often cited, but most emphasis isplaced on reducing costs and saving resources to abate future cost issues. This isevident in hotel press releases, corporate communications, and functional publicationsby the International Hotels Environment Initiative in 1993 and 1995), Kirk (1997),Middleton and Hawkins (1998), Green Globe (1994), Forte (1994), Ton et al. (1996),among others. The emphasis on cost issues by the hospitality and tourism industry, anissue not so visible in academic studies, may be due to the obsession with high fixedcosts and low return on investment typical of this industry.

    The tourism industry was originally spared the scrutiny focused on thesmokestack industries. However, all eyes are today on tourism and itsenvironmental impacts. According to the WTTC (1999, 2000) the tourism industry isthe worlds biggest industry, directly creating 200 million jobs worldwide andaccounting for 11 percent of the worlds GDP. With a growth rate of approximately 6percent per year, it is also one of the fastest growing industries (Mathieson and Wall,1996). Tourism is increasingly considered an engine for economic development(Gartner, 1996). Also, tourism is growing fastest in the developing world and accountedfor 30 percent of international arrivals in 1998. This is of importance because it is inthose regions where governments may not have the means or the priorities toregulate and enforce legislation for environmental protection as tourism develops.

    It is well documented that for environmentally-friendly products to be considered inconsumers choice or purchasing repertoire they need to perform satisfactorily toconventional products and attain consumer acceptance on key attributes such as

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  • functional performance, quality, convenience and price (Ottman, 1995; Schlegelmilchet al., 1996; Wong et al., 1996; Roy, 1999).

    Some authors have suggested that the failure to reassure consumers on theproducts functional performance was partly attributable to the early failure of manyenvironmentally-friendly products (e.g. Davis, 1993; Ottman, 1999). Although it hasbeen found that some consumers may, for example, accept a lower functionalperformance in order to buy a product that delivers environmental benefits, theenvironmental benefit in itself is neither the primary benefit sought nor the primarymotivation for purchase (Speer, 1997; Ottman, 2001). As Wong et al. (1996) observed:Green is seldom the over-riding determinant of product or brand choice but justanother benefit or attribute that adds value, usually a feel good factor to the overallproduct (Wong et al., 1996, p. 269). Some marketers appear to have overlooked thisand assumed that an environmental positioning alone was sufficient to guaranteeproduct success (Ottman, 1995).

    Product performance appears to play a key role in influencing consumer adoptionand retention of environmental products. So, when there is consumer skepticism of therelative performance of environmental products or a performance gap exists (i.e.consumer expectations of the products performance have not matched up to the in-useexperience), this may strongly influence the products acceptance (Wong et al., 1996).Product differentiation has proven to be a successful competitive strategy (Porter,1998) that may also be applied within the environmental context (Hart, 1997;Reinhardt, 1998). For example, the products success may depend on the choice ofproduct positioning, product attributes, and/or packaging needed to createdifferentiation. But, it may also depend on the products environmental benefits(Leigh et al., 1988; Shrivastava, 1995b).

    Situations in which two products are perceived as equal on all aspects except thatone is superior in its environmental performance, environmental benefits maydetermine consumer preference and choice (Kardash, 1974; Ottman, 1992, 1998). Thismay be particularly important as a differentiation strategy for markets where it isincreasingly difficult for brands to differentiate themselves (Christensen, 1995), or inmature markets where there is intense competition (Menon et al., 1999b). The productsenvironmental performance may then provide a distinct point of difference andinfluence consumer choice.

    Consumers may be willing to purchase environmentally-friendly products but arefaced with constraints or conflicts that create a resistance to adoptingpro-environmental behaviour. For example, consumers may want to beenvironmentally responsible but still want to maintain their existing life-style(Schwartz, 1990; McDaniel and Rylander, 1993). They may not be prepared to sacrificeconvenience (Simon, 1992; Stern, 1999), accept lower performance levels, or pay a pricepremium (Peattie, 1999b). Based on Ajzens (1988) theory of planned behaviourconsumers environmental purchasing intentions and behaviour may be influenced bya number of factors, such as the individuals knowledge and motivation, the ability toperform the behaviour and the opportunity to behave in an environmentally-friendlyway (Pieters, 1989; Olander and Thgersen, 1995).

    Some authors suggest that companies charge a premium for environmentallyfriendly products in order to recover addition costs incurred in the production,marketing and disposal. This may include the initial set-up costs of new or alternative

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  • more environmentally-friendly production processes and distribution; the cost ofproduct recapture, remanufacture and reuse; or to recover the indirect costs of not (atleast initially) achieving economies of scale (Wong et al., 1996; Fuller, 1999; Peattie,1999a, b).

    For consumers who are more receptive to environmental products and purchasethem through choice, there may be a segment that are willing to pay more for theenvironmental benefit. But, whilst some authors suggest that consumers arewilling-to-pay more for an environmentally-friendly products (Kassarjian, 1971;Freeman, 1989; Klein, 1990; McCloskey, 1990; Kapelianis et al., 1996; Laroche et al.,2001), others suggest otherwise (Wood, 1990; Simon, 1992; Sims, 1993). Marketplaceexamples also suggest that in reality consumers are not always prepared to pay thepremium prices suggested by research (Fuller, 1999). Although our knowledge aboutconsumers acceptance of paying a higher price for environmentally-friendly productsappears to be inconsistent and inconclusive, it has often been found that consumerswill pay on average around 5 percent more (Schwartz, 1990; Kapelianis et al., 1996;Speer, 1997).

    There also appears to be a group of consumers who willing- to-pay significantlymore than 5 percent for environmental benefits (Reinhardt, 1998). And, it may be asmuch as 20 percent or more (Roper Organization, 1990; Roper Starch Worldwide, 1997).This may occur when the environmental benefits are perceived to create privatebenefits from which the consumer either exclusively, or directly and personallybenefits from, rather than public goods that benefit society as a whole (Ottman, 1992;Gallagher and Kennedy, 1997; Marcus, 2001).

    Proposed hypothesesBased on the review of literature, the following hypotheses are proposed:

    H1. A positive attitude towards green practices in the lodging industry leads to apositive behaviour towards choosing to stay in a hotel that adopts suchpractices.

    H2. There is no relationship between a positive consumer attitude towards greenpractices and willingness to pay for the same.

    H3. There is a no relationship between positive consumer behaviour towardsgreen practices and willingness to pay for the same.

    MethodologyThe study has been carried out in National Capital Region of Delhi, Gurgaon and Noidaon a sample size of 66 respondents. The study uses a structured questionnaire, whichhas been developed to study the attitude and behaviour of consumers on greenpractices. The questionnaire was pre-tested with a sample of 15 respondents and minormodifications were made in the questions wherein the statements were ambiguous.The convenience sampling was used to overcome the constraints of time and budgets.

    The study has used a structured questionnaire that measures the following aspects:Consumers attitude towards green practices, consequent consumer behaviour to stayat green hotels based on attitude towards the green hotels. The consumers willingnessto pay for the hotels which follow environmental practices has also been assessed inthe questionnaire. The last section measures the demographic profile of the consumers.

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  • The data was collected using Likert scale so that multivariate analysis could beconducted.

    Profile of the sampleThe demographic profile of the sample is as follows:

    There is a good spread of respondents across various categories of age in thesample. Of the respondents, 75 percent are above 26 years of age, which reflectsappropriateness of the sample as they have the paying capacity. The educationalprofile indicates that 96 percent of the respondents have a post graduate qualification.About 51 percent of the respondents are working either in the private or public sectoror as professionals. Of the respondents, 28 percent are self-employed. Out of thissample, 36 percent of the respondents spend three to five nights in a hotel per monthfor business purpose. Another 22 percent of the sample spends six to five nights permonth in the hotel. The statistics indicates that 13 percent respondents stay in luxuryhotels, 39 percent stay in high end hotels, 25 percent stay in economy hotels, 15 percentstay in resort hotels. Of these respondents, 80 percent stay as nuclear families, 24percent have three members in their family while 40 percent has a family size of four. Atotal of 40 percent of the sample has salary of less than Rs.3 lakhs while 60 percent hasmore than Rs. 3 lakhs as monthly income.

    FindingsThe study has the following findings:

    Consumer attitude towards expectations on use of green practices in the lodging industryA number of factors were used to assess the expectations of the consumers on the useof green practices in the lodging industry. It was found that the 12 variables used tounderstand the consumer attitude got reduced to a single factor (eigen value was 4.2),which explained 85 percent variance.

    The factor loadings are depicted in Table I.Table I indicates that consumers expect tangible demonstration towards green

    practices in India. The variables which contribute significantly are highlighted in theTable I. The following variables are significant contributors to the consumer attitudetowards green practices: Visible communications about green practices to guests,shareholders, vendors and the public; participation in an environmental partnership orcertification program such as ISO 9000; establish recycling program for materials in allsections of the hotel; offer a linen re-use option to multiple night guests; provideenvironmentally friendly products (i.e. low toxicity, organic or locally from/made) andencourage business with environment friendly service providers (i.e. renewable energy,integrated pest management, alternative fuel vehicle).

    The implication for the above factors is that consumers look for tangibledemonstration of a firms commitment towards the green practices. The right kind ofawareness demonstrated by the actions taken by the lodging firm are important. It alsoimplies that provision of environmental friendly services and visible steps to conservethe resource and forging alliances with eco-friendly suppliers infuse higher degree ofconfidence in consumers.

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  • Consumer behaviour towards green practices in the lodging industry in IndiaAs far as behaviour intention is concerned, when factor analysis was done for the 12variables which could influence a consumer to stay in the hotel, the following twofactors emerged with eigen values of 3.2 and 1.0 respectively. The first factor explains75 percent of the variance and both the factors explain 100 percent of the variance(Table II).

    The implication of the above findings is that a firms visible subscription to ISO9000 or environmental partnership and training imparted to employees could influencea consumers to stay in the environmental friendly hotel. The second factor compriseda waste disposal and active system installed to check leakages in the property. So the

    Behaviour variable Factor loadings for factor 1 Factor loadings for factor 2

    1 0.71 0.42 0.58 0.263 0.75 0.044 0.46 0.125 0.10 0.286 0.52 0.417 0.56 0.008 0.37 0.379 0.47 0.0210 0.41 0.4011 0.51 0.3912 0.36 0.12

    Table II.Factor loadings for

    consumer behaviourtowards green practicesin the lodging industry

    Variable Factor loadings

    Train employees for better environmentalperformance

    0.46

    Have visible communications about green practices 0.68Participate in environmental partnership orcertification

    0.69

    Use sensors or timers to save electricity inintermittent use areas

    0.53

    Establish active recycling program for materials inall sections of the hotel

    0.60

    Establish system for prompt disposal of packagingmaterials and crates to reduce wastage

    0.40

    Utilise environmentally responsible cleanersthroughout the property

    0.54

    Having energy-saving light bulbs in all rooms 0.55Offer a linen reuse option to multiple night guests 0.66Have an active system to detect and repair waterleakage in toilets, faucets and shower heads

    0.56

    Provide environmentally friendly products (i.e. lowtoxicity, organic or locally grown/made)

    0.63

    Encourage business with environmentally friendlyservice providers

    0.71

    Table I.Factor loadings forconsumer attitude

    towards green practicesin the lodging industry

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  • consumer looks for actual evidence of serious commitment to an environmental causebefore deciding to stay in the hotel.

    The factor analysis about awareness on environmental factor indicates a thatpositive disposition towards environment positively influence all the components ofenvironmental consciousness such as energy efficiency and conservation, solid wasteminimization, purchase local products, water conservation and environmentalpurchasing.

    The broad consumer behaviour regarding the choice of environment friendlylodging hotel is that that only 22 percent of respondents deliberately seek suchinformation and use it in taking hotel decisions. Of the respondents, 55 percent payattention to environmental initiatives, 23 percent do not bother about such information.This implies that majority of the respondents are favourably disposed towards thegreen practices adopted by the lodging industry. This finding also implies that if twofirms offer similar service levels, a firm that is environmentally friendly would scoreover the other firm. So at an aspirational level, the consumers are conscious aboutconcern for the environment and resources.

    Relation between consumer attitude and behaviour towards green practices in lodgingindustryThe results indicate that there is a significant relationship between the consumerattitude and behaviour towards green practices in the hotel industry. So the firsthypothesis stands supported. The second two hypothesis are also found to bestatistically supported as the correlation results indicate that a positive attitude orbehaviour towards green practices does not result in a consumer paying for the same.This has policy implications which have been documented at the end of the paper.

    Who should pay for imbibing green practices?When it comes to paying for green practices adopted by the lodging industry, it hasbeen found that 33 percent of the respondents feel that environmental costs should beshared by the consumer and the hotels while 52 percent of the respondents feel thathotels should absorb the cost. Just 15 percent of consumers are willing to pay forenvironmental initiatives. The implication is that majority of the consumers feel thatthe hotels themselves should invest in environmental practices. Though these stepswould mean incurring short term expenditure but in the long run the firms will reapdividends on account of a preference by consumers for an environmental friendly hotel.

    How much are consumers willing to pay?Out of the consumer sample that was willing to pay for green practices, 11 percent arewilling to pay to a tune of 25 percent of the costs, 40 percent feel hotels should pay 50percent to 100 percent of the costs and 40 percent feel that they could pay 4-6 percentmore while staying at green hotels.

    The implication is that despite positive behaviour, the majority of consumers arenot willing to pay for such practices adopted by the hotel. The hotels would have toinvest in such practices keeping in mind the long-term advantages that may accrue tothem. The 40 percent of the respondents who are willing to pay for such practices werewilling to contribute to an extent of just 4-6 percent but they have added expectationfrom the marketer, which is addressed below.

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  • Should staying in a green hotel be rewarded?Of the respondents, 71 percent feel that they should be awarded more frequent guestreward points. The consumers expect rewards for patronising such hotels that adoptgreen practices.

    To conclude, the consumers are becoming aware of the benefits of engaging inenvironmental friendly practices in the lodging industry. The positive attitude towardsthe green practices has a strong relationship with positive behaviour on greenpractices. However, both the positive attitude and behaviour does not translate into thewillingness to pay for the same.

    Policy implicationsThe environmental concerns are increasingly becoming important. The situation offresh water and sanitation in India is alarming. Excess consumption puts a strain onthe resources for the tourism industry specially hotels. The firms should build upscenarios for future growth and consequent resource needs. Depleting water table inmost parts of India would be a grave concern in near future. So the hotels would need toplan for resource limitations and would have to account for the same. As the studypoints out that the majority of the consumers are not willing to pay for suchenvironmental friendly practices despite a positive disposition towards the same. Only40 percent are willing to pay to a tune of 4-6 percent. A lodging firm needs to look atlong-term benefits emanating out of a conservative use of resources. The governmentcould pass some of the benefits for initial two to three years for expenditures incurredon energy saving devices and measures. A higher tariff for commercial use of waterand recycling water should be mandated by law to implement such measures seriously.The hotels could play a big role in creating awareness and educating consumers themerit for conservation of resources. A public campaign that strikes an emotional chordwith consumers as it has done for Incredible India Campaign to promote tourism inIndia, would create a big impact. This has to be taken up as a national strategy forensuring better resource availability for generations to come.

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  • About the authorsKamal Manaktola is MA Public Administration, MHCIMA (UK), Diploma in Hotel ManagementPGDTD, Certified Master Trainer. He has been trainer in the hospitality industry for over 30years. He holds degrees/diploma in hotel management, public administration and training anddevelopment. He was the Deputy General Manager (HRD) at the Manpower Development Centreat ITDC for over five years. Kamal Manaktola has worked as a training specialist with EuropeanCommission funded South Asia project. He has extensive experience of working in managerialpositions at various hotel properties in India and has conducted training programmes for over1,200 hospitality and tourism executives. He has, to his credit, a number of certificates forcompleting professional programmes conducted by Cornell University, USA, American Hotel &Motel Association, TMI Denmark, APO-Japan and ISTM-Government of India. Currently, heholds the position of Head of School, School of Hospitality and Tourism Management at IIMTGurgaon. Kamal Manaktola is the corresponding author and can be contacted at:[email protected]

    Vinnie Jauhari is MSc (Hons) in Electronics from Panjab University, Chandigarh and MBA(Gold Medalist) (Marketing). She received her PhD on Corporate Entrepreneurship from IITDand her Post-Doc from the United Nations University, Tokyo in the area of Technology andSociety. She has worked at IILM before she joined Institute for International Management andTechnology as Associate Professor and Associate Dean. Dr Jauhari is currently Professor andThe Head of the School of Management & Entrepreneurship at IIMT. She is also the foundingeditor of the Journal of Services Research, has over 45 publications in National and InternationalJournals and has also authored books on business strategy and services management. Her areaof expertise is Corporate Entrepreneurship, Strategic Management, and Technology andMarketing.

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