I

FACTORS AFFECTING GREEN MARKETING IN

INDIA: A STUDY OF METRO CONSUMERS

Dissertation Submitted to the Padmashree Dr. D. Y .Patil

University, Department of Business Management

in partial fulfillment of the requirements for the award of the Degree of

MASTER OF PHILOSOPHY

in BUSINESS MANAGEMENT

Submitted by

ARTEE AGGRAWAL (Enrollment No. DYPMPHIL076990001)

Research Guide Dr. R. GOPAL

DIRECTOR, DEAN AND HEAD OF THE DEPARTMENT

PADMASHREE DR. D.Y. PATIL UNIVERSITY, DEPARTMENT OF BUSINESS MANAGEMENT,

Sector 4, Plot No. 10, CBD Belapur, Navi Mumbai 400 614

August 2010

II

FACTORS AFFECTING

GREEN MARKETING IN

INDIA:

A STUDY OF METRO

CONSUMERS

III

DECLARATION

I hereby declare that the Dissertation entitled Factors Affecting Green

Marketing In India: A Study Of Metro Consumers submitted for the Award

of Master of Philosophy in Business Management at the Padmashree Dr.

D.Y. Patil University Department of Business Management is my original work

and the thesis has not formed the basis for the award of any degree,

associate ship, fellowship or any other similar titles.

Place: Date: Signature of the Guide Signature of the Head of the dept. Signature of the student

IV

CERTIFICATE

This is to certify that the dissertation entitled Factors Affecting Green

Marketing In India: A Study Of Metro Consumers submitted by Ms. Artee

Aggrawal is a bonafide research work for the award of the Doctor of

Philosophy in Business Management at the Padmashree Dr. D. Y. Patil

University Department of Business Management in partial fulfillment of the

requirements for the award of the Degree of Master of Philosophy in

Business Management and that the dissertation has not formed the basis for

the award previously of any degree, diploma, associate ship, fellowship or

any other similar title of any University or Institution.

Also certified that the thesis represents an independent work on the part of

the candidate.

Place: Date: Signature of the Head of the department Signature of the Guide

V

ACKNOWLEDGEMENT

In the first place, I am indebted to the Padmashree Dr. D.Y. Patil University

Department of Business Management, which has accepted me for

Doctorate program and provided me with an excellent opportunity to carry out

the present research project.

The research work embodied in this dissertation has been carried out under

the expert guidance and supervision of Dr. R. Gopal, Dean and Director,

Department of Business Management, Padamshree Dr. D. Y. Patil

University. It was only due to his valuable guidance and cheerful enthusiasm

that I was able to complete my research work in a respectable manner. My

profound gratitude and most sincere acknowledgement are extended to him

for his constant encouragement and intellectual insights and also the

constructive criticism that was of immense help from the outset to the finale.

Last but not the least I want to acknowledge the contribution of all those

people who helped me in the one way or the other in compilation of my

dissertation work especially the administrative staff and the library staff at

Department of Business Management, Padamshree Dr. D. Y. Patil University.

Place: Date: Signature of the student

VI

CONTENTS

CHAPTER NO. TITLE PAGE NO.

List of Tables VIII

List of Figures IX

EXECUTIVE SUMMARY X

1 Introduction to Green Marketing

1

2 Kyoto-protocol and Clean Development Mechanism

17

3 Green Marketing: Literature Review

56

4 Green Marketing: Case Studies

78

5 Objective of the Study and Research Methodology

105

6 Profile of the Respondents 114

7 Factors Affecting Green Marketing

122

8 Summary and Conclusion 146

Bibliography 156

Annexure 164

Questionnaire 168

Repot on Green Marketing 177

VII

LIST OF TABLES

Table No. Title Page No.

6.1 Age of the Respondents 116

6.2 Qualification of the Respondents 118

6.3 Working Status of the Respondents 119

6.4 Gender of the Respondents 121

7.1 Factor Affecting Green Marketing 125

7.2 Importance of Factors affecting Green Marketing

129

7.3 Factor Affecting Green Marketing by Age

132

7.4 Factor Affecting Green Marketing by Qualification

135

7.5 Factor Affecting Green Marketing by Gender

137

7.6 Understanding of Consumer for Green product

142

7.7 Understanding of customers for

green symbol

144

7.8 Awareness of Green products present

in the market

145

VIII

LIST OF FIGURES

Figure No. Title Page No.

2.1 CDM Project cycle 51

3.1 Awareness Stages in Economic Development of Industries

73

3.2 Stake holders for Go-Green Strategy 74

5.1 Framework for Factors affecting Green Purchasing Behaviour

112

6.1 Age of the Respondents 117

6.2 Qualification of the Respondents 118

6.3 Working Status of the Respondents

120

6.4 Gender of the Respondents 121

7.1 Factor Affecting Green Marketing by Age

133

7.2 Factor Affecting Green Marketing by Qualification

136

7.3 Factor Affecting Green Marketing

by Gender

137

7.4 Awareness about Eco-certification

among consumers

139

IX

EXECUTIVE SUMMARY

The last decade has witnessed a dramatic increase in environmental

consciousness worldwide. One recent survey found that 82 per cent of British

citizens rated the environment as an immediate and urgent problem, while

another study established that 69 per cent of the general public believes that

pollution and other environmental damage are impacting on their everyday

life. The increase in environmental consciousness has had a profound effect

on consumer behaviour, with the green product market expanding at a

remarkable rate. Companies all over the world are striving to reduce the

impact of products and services on the climate and other environmental

parameters. Marketers are taking the cue and are going green.

Green marketing refers to the process of selling products and/or services

based on their environmental benefits. Such a product or service may be

environmentally friendly in it or produced and/ or packaged in an

environmentally friendly way. The obvious assumption of green marketing is

that potential consumers will view a product or service's "greenness" as a

benefit and base their buying decision accordingly.

In order to position green product offerings, companies must first segment the

market according to levels of pro-environmental purchase behaviour and then

target the greener consumer segments. However, a review of the literature

X

indicates that socio-demographic and personality indicators have had only

limited success in profiling consumers according to their proenvironmental

purchasing behaviour. The demand for green products has been shown to be

uneven across different market segments. Thus, for organizations to position

green products, or communicate their environmental efforts, to members of

the population who are likely to be concerned about environmental issues,

green consumer segments need to be identified.

This research work aims to illustrate how the green challenge is exerting an

influence on current marketing practice and how its implications will require a

more profound shift in the marketing paradigm, if marketers are to continue

delivering customer satisfaction at a profit throughout this new millennium.

The study is empirical in nature and has been designed to find out the

consumer perception of the green products and the factors that affect their

purchasing behaviour for the green products.

OBJECTIVE OF THE RESEARCH

The objective of the present study is

To determine the factors affecting Green purchasing behaviour among Indian

consumers

To determine most important and least important factors affecting green

purchasing behaviour.

XI

To give recommendations and suggestions to increase the uptake of green

products in India.

PROPOSED HYPOTHESIS

The hypothesis framed to test the proposed objectives are-

H10 : Age has no significant relationship with green purchasing behaviour.

H11 : Age has significant relationship with green purchasing behaviour.

H20 : Gender has no significant relationship with green purchasing behaviour.

H21 : Gender has significant relationship with green purchasing behaviour.

H30: Qualification has no significant relationship with green purchasing

behaviour.

H31: Qualification has significant relationship with green purchasing

behaviour.

RESEARCH METHODOLOGY

Development of Questionnaire

The questionnaire was designed by consulting many studies to understand

the various constructs for the designing of the questionnaire and by

conducting a brain storming session on factors affecting Green

purchase behavior in India with 120 students and fac