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PRESENTED BY: SYED MOHAMMED KARIM 310SM1008 1

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Page 1: PRESENTED BY: SYED MOHAMMED KARIM 310SM1008 1. 2

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PRESENTED BY:SYED MOHAMMED KARIM

310SM1008

Page 2: PRESENTED BY: SYED MOHAMMED KARIM 310SM1008 1. 2

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Are you green??

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INTRODUCTION

Concern about environment-public issue. Positive change within consumer's behavior. Green revolution-prevent further damage. Green marketing tools-eco-label, eco-brand,

environmental advertisement. Switch consumer’s actual purchasing

behavior to buy environmental friendly products.

Consumer’s behavior- vary in different culture and demographic context.

This research- whether green marketing tools affect consumer’s purchase behavior.

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Findings from literature Three stages of green marketing. Green marketing focuses on the efficiency

of cognitive persuasion strategies. Green marketing as actions intended to

replace current needs and wants with minimal harmful impact on our environment.

Eco-labels- provide information, add value. Relationship between eco-label & consumer

behavior???

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Eco-brand is a name, symbol or design of products that are harmless to the environment.

Consumers will aspire to buy eco-friendly alternatives for products.

Green brands perform same and better. Motivating factor: emotional brand benefits. Environmental advertisements: techniques for

introducing products. Objective: influence consumers’ purchase

behavior & direct their attention to the positive consequences.

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Environmental advertising contains three elements:

statement of corporate concern for the environment.

the way the corporation has changed its procedures.

specific environmental actions in which the corporation is involved.

Environmental advertisements help to form consumer’s values and translate these values into the purchase of green products.

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HYPOTHESIS:

H1: A significant and positive relationship exists between green marketing tools and customer’s actual purchase behavior.

H1a: Eco-label and customer’s actual purchase behavior.

H1b: Eco-brand and customer’s actual purchase behavior.

H1c: Environmental advertisement and customer’s actual purchase behavior.

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METHOD Respondents were individual consumers in

Penang. Above 18 years old, structured questionnaire,

250 respondents. Questionnaire: five sections. Demographic characteristics of respondents. Perception towards environmental advertising. Perception of eco-label. Impact of eco-brand on consumer’s actual

purchase behavior. Dependent variable of the study: actual

purchase behavior.

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Findings One more dimension to green marketing

tools was added (trust in eco-label and eco-brand).

Eco-brand and trust to eco-label and eco-brand: positively and significantly associated with actual purchase behavior.

Effect of eco-label and environmental advertisement on actual purchase behavior: not significant.

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Discussion and implications Eco-branded products: commercially

successful due to its positive public image. Growth in brand loyalty. Eco-label: no significant impact. Environmental advertisement enhances

knowledge on green products, no influence on purchase behavior.

Reason: low credibility. Respondent’s trust in eco-label and eco-

brand: positive effect. Lack of critical efforts by marketers and

producers to develop the trust in eco-label and eco-brand.

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LIMITATIONS

Limited to consumers of Penang (Malaysia).

Conducted on general eco-brands. No comparison between eco-branded &

non eco-branded products.

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Findings & suggestions In India, environment no longer just a CSR

activity. Critical for brand image. Many successful campaigns of green

advertising.Ex: Idea, Havells, IRCTC etc. Some successful green brands. Ex: Himalaya. Eco-labels: IT industry. Large youth population: more chances of

making impact. Stringent rules to differentiate between

green & non-green brands.

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References

Francisco J. Montoro Rios(2006) “Improving attitudes toward brands with environmental associations: an experimental approach” Journal of Consumer Marketing, Volume 23 · Number 1 · 26–33

Raska, David (2011) “Exploring the effect of a brand’s pro-environment behavior on consumer’s attitude towards similar behaviors” Proceedings of ASBBS, Volume 18 Number 1

Florence Benoit-Moreau(2011) “Building brand equity with environmental communication: an empirical investigation in France” EuroMed Journal of Business Vol. 6 No. 1, 100-116

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Queries