Impact of green marketing on consumer behavior: A comparative study of two companies operating in

Pakistan.

Proposed to: Basharat Naeem (Course Instructor :Marketing Research)

Proposed By:Ahmad (IBA-BBA 2008-12 7th semester 08-A)Yasir (IBA-BBA 2008-12 7th semester 11-A)Ammar (IBA-BBA 2008-12 7th semester 18-A)Fawad (IBA-BBA 2008-12 7th semester 42-A)

Outline• Introduction

▫ Background Information▫ Problem Statement▫ Objectives▫ Research Questions

• Literature review• Methodology

▫ Research Approach ▫ Sample Plan▫ Data Collection Plan

• Data Analysis Plan• Time and Budget• Ethical considerations• References

Background Information

• Ken Peattie (1999) defined environmental marketing in terms of customer satisfaction in a sustainable fashion which refers as ‘the holistic management process responsible for identifying, anticipating, and satisfying the requirements of the consumers and society, in a profitable and sustainable way’.

• However, the definition provided by the Charter (1992) adds a strategic dimension to the concept other than customer satisfaction and stressed the importance of a long term perspective and the role played by stakeholders.

• According to Charter (1992), green marketing is defined as ‘greener marketing is a holistic and responsible strategic management process that identified, anticipates, satisfies and fulfils stakeholder needs, for reasonable reward, that does not adversely affect human or natural environmental well being.

Problem Statement

•How the green marketing strategies are developed by the companies and their impact on consumer buying preferences?

Objectives

•To understand how companies segment their market based on the consumer tendencies towards green marketing.

•To analyze the benefits of having green marketing strategies.

 

Research questions

• In order to fulfill the objectives, the study had following research questions

1. How companies develop the green marketing strategies?

2. How green market strategy is chosen for the companies?

3. How marketing mix is influenced by the choice of green marketing

strategy?

4. What are the advantages that companies obtain by the adoptions of green

marketing strategy?

Literature Review

• The review of literature provided scientific theories and cites various literatures that was done elsewhere in related green marketing strategies adopted by the companies which will in turn help to provide foundation for analysis and discussion.

• According to Ginsberg & Bloom (2004), the first step is to gain rich understanding on consumer preferences towards green marketing i.e., whether the development of product that has green attributes is better selling point to target consumers.

Contd…

• Various studies have showed that to know the target green market segment better, there is need for appropriate individual consumer tendencies towards green marketing (Fuller, 1999, p330-331; Coddington, 1993, p.83).

•There is no one single strategy that will work for all companies, it all depends on the own individual objectives, target market, resources etc (Polonsky & Rosenberger, 2001).

•According to Fuller (1999, p.39), companies that do not implement innovative green marketing strategy will struggle to tough emerging global market and moreover viewed as uncompetitive and unresponsive.

• Study by Jacquelyn Ottman (1993) reveled that practicing green marketing helps the companies to increase their market share and also gain more profit.

Methodology

• Research approach

• We will adopt case study approach for the proposed research in order to gain deeper insights into events such as how green marketing strategies can be developed and reasons for companies to adopt green marketing. When focusing on one or few research units with purpose of achieving in depth information, the preferable approach is case study .

• When researcher has little control over events and when the focus in on a current phenomenon in a real life context and further to answering ‘how’ or ‘why’ questions, case study is the preferred approach (referred by Ghuari & Grinhaung 2005, p115).

Case selection

• Based on the observations as made in the earlier studies as mentioned in our literary review we will select two leading companies engaged in consumer products marketing in Pakistan. We will use convenient sampling method to select two companies engaged in consumer products in Pakistan and who have green marketing strategy already in place. These are i) LG Electronics and ii) Philips Pakistan.

• LG Electronics-- is the largest single source of air-conditioning equipments in Pakistan. They completely phased out their CFC using Centrifugal chillers. They are using HCFC instead which have to be much less ODP (Ozone Depletion Potential).

 • Phillips Pakistan-- has been using a corporate –wide eco-vision program since

1998.The program require each business group under its purview should design or redesign one flagship product every year. A few energy efficient products that has been designed as a result are KALA and DECT telephones, a 32 inch TV set, and a video cassette recorder among them.

Sample Size

• Due to limitation of time frame allocated for the present study and the cost involved, we will conduct interview from 10 managers / executive managers and 5 from each companies. The size of the sample for the qualitative study was determined when saturation was reached for theory and information, and anything new being added.

Data Collection

Primary Data• The interview method was chosen for the research reason being permit

face to face contact with respondents; to obtain new insights, yield richest data, explore the topic in depth, flexibility to the interviewer in administering interview to particular individual, help in clarification of

questions and cognitive aspects of the response.

•Secondary Data Collection• Secondary data will be collected from different website, annual reports,

books, journals and articles, websites, newspapers, magazines, case studies.

Data Analysis

• The data will be analyzed using content analysis. After the interview completion, data reduction will be undertaken in order to identify the patterns and themes in order to gain insight and understanding. Data will be coded, examined, compared and categorized based on the research questions.

• If further data are required or new question arose, then further data collection will be undertaken. Throughout the analyzing process, comparison will be done to find differences, similarities and meaning.

SchedulingJanuary 1st – 15th January 2012 ----------- Review of the literature

16th January – 15th February 2012 --------- Development of questionnaire.

16th February – 28th February 2012 --------- Write up of pilot study and creation of main questionnaire

1st March – 15th March 2012 ----------------- Data collection

16th March – 31th March 2012------------------ Data input and checking

1st April – 10th April 2012---------------------- Data analysis

11th April – 20th April 2012--------------------- Writing about managerial implications of research findings

21st April – 30th April 2012----------------------- Review and editing

1st May – 10th May 2012----------------------- Review and submission of completed proposal

Budgeting• Amount required to conduct this research in a convenient and

comfortable environment is Rs. 11000.• Books ---- Rs. 2500• Journals----Rs. 1000• Magazines---Rs. 500• Miscellaneous expense---Rs. 500• Food expense---Rs.1000• Travelling cost---Rs. 5000• Printing---Rs. 500

Ethical Consideration

Following ethical considerations will be followed:

•Confidentiality of information collected•Assurance of Respondent’s anonymity•Respondent will be kept at ease•Research will be published after taking consent from

respondents.

References  • Ackerstein, Daniel S. and Lemon, Katherine A. (1999), “Greening the Brand: Environmental

Marketing Strategies and the American Consumer,” in Charter, M. and Bryman, E. & Bell, A (2007), Business Research methods Oxford University Press Inc., New York.

• Creswell, JW (2003) Research Design: Qualitative, Quantitative and Mixed Method Approaches. California: Sage Publications

• Ottman, Jacquelyn (1998), Green Marketing: Opportunity for Innovation, 2nd Ed., Lincolnwood IL: NTC Business Books. 

• Peattie, Ken (1999), “Trappings versus substance in the greening of marketing planning,” Journal of Strategic Marketing.

 • Polonsky, M.J., eds., Greener Marketing: A Global Perspective on Greening Marketing

Practice, Sheffield, U.K.: Greenleaf Publishing.

• Klonski RJ (1991). Foudnational considertional in the corporate social resposnility debate Business Horizons, 34 (4), 9-18

 • Ginsburg JM & Bloom, O. (2004). Choosing the right marketing strategy. MIT sloan Management Review,

46(1), 79-84.

• Fuller, Donald A. (1999), Sustainable Marketing: Managerial-Ecological Issues, London, Sage Publications.

• Coddington, W.(1993). Environmental marketing: positive strategies for reaching the green consumer. New York, NY:MCGraw-Hill, Inc.

 • Grant, J. (2007) the green marketing manifesto. Cornwall:TJ International Ltd.

 • Kuhre WL. (1995). ISO 14020s Environmental Labelling Marketing Prentice-Hall: Englewood Cliffs, NJ.

 • Walley, N. & Whitehead, B. (1994). It’s not easy being green. Harvard Business Review, 72 (3), 46-51.