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The Impact of Green Marketing Tools on Consumer Purchase Behavior

This research investigates the relationship between green marketing tools (eco-labels, eco-brand, environmental advertisement) and consumer's actual purchase behavior. Findings suggest that eco-brand and trust in eco-label and eco-brand positively influence purchase behavior, while the impact of eco-label and environmental advertisement on purchase behavior is not significant. This study has implications for marketers and producers in building trust in eco-label and eco-brand.

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The Impact of Green Marketing Tools on Consumer Purchase Behavior

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  1. PRESENTED BY: SYED MOHAMMED KARIM 310SM1008

  2. Are you green??

  3. 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.

  4. 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???

  5. 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.

  6. 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.

  7. 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.

  8. 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.

  9. 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.

  10. 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.

  11. LIMITATIONS • Limited to consumers of Penang (Malaysia). • Conducted on general eco-brands. • No comparison between eco-branded & non eco-branded products.

  12. 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.

  13. 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

  14. Queries

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