CHAPTER 1

Green Marketing: Customer regarding Green Products. A Study of Delhi

region

1.1 Introduction to Green Marketing

Do you think business is all

about profits? Do you think
business marketing is all about
tips, tricks and techniques used
to sell ideas, products or
services to the customers?
Think again. With the
acceptance of the idea to
conduct business with the
motive “to increase profits through service”, a new marketing concept known as
green marketing has emerged. The term green marketing came first into foray in
the late 1980s and early 1990s due to increasing environmental concerns. The
companies were compelled to consider the externalities of their products and their
eventual negative impact on the planet. The result of such deliberations was the
alternative available to the companies to “go green”. Green marketing, also
known as Environmental marketing or Ecological marketing, includes all the
marketing activities of the firm, starting from conceiving the product idea to the
actual sale of the product, which are designed with the objective to either create
a positive impact or reduce the negative impact of its products on the
environment. This is done in order to cash in on growing customers’ concern
about environmental degradation. Simply stated, green marketing sells the idea
of relatively superior environmental characteristics of a company’s product and
service offerings.

1.2 WHAT IS GREEN MARKETING

Unfortunately, a majority of people believe that green marketing refers solely to

the promotion or advertising of products with environmental characteristics.
Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and
Environmentally Friendly are some of the things consumers most often associate
with green marketing. While these terms are green marketing claims, in general
green marketing is a much broader concept, one that can be applied to consumer
goods, industrial goods and even services. For example, around the world there
are resorts that are beginning to promote themselves as "ecotourist" facilities, i.e.,
facilities that "specialize" in experiencing nature or operating in a fashion that
minimizes their environmental impact.

Thus green marketing incorporates a broad range of activities, including product

modification, changes to the production process, packaging changes, as well as
modifying advertising. Yet defining green marketing is not a simple task. Indeed
the terminology used in this area has varied, it includes: Green Marketing,
Environmental Marketing and Ecological Marketing. While green marketing
came into prominence in the late 1980s and early 1990s, it was first discussed
much earlier. The American Marketing Association (AMA) held the first
workshop on "Ecological Marketing" in 1975. The proceedings of this workshop
resulted in one of the first books on green marketing entitled "Ecological
Marketing" . Since that time a number of other books on the topic have been
published.

This early definition has three key components,

1. it is a subset of the overall marketing activity;

2. it examines both the positive and negative activities; and
3. a narrow range of environmental issues are examined.

While this definition is a useful starting point, to be comprehensive green

marketing needs to be more broadly defined. Before providing an alternative
definition it should be noted that no one definition or terminology has been
universally accepted. This lack of consistency is a large part of the problem, for
how can an issue be evaluated if all researchers have a different perception of
what they are researching. The following definition is much broader than those
of other researchers and it encompasses all major components of other
definitions. My definition is:

"Green or Environmental Marketing consists of all activities designed to generate

and facilitate any exchanges intended to satisfy human needs or wants, such that
the satisfaction of these needs and wants occurs, with minimal detrimental impact
on the natural environment."

This definition incorporates much of the traditional components of the marketing

definition, that is "All activities designed to generate and facilitate any exchanges
intended to satisfy human needs or wants" . Therefore it ensures that the interests
of the organization and all its consumers are protected, as voluntary exchange
will not take place unless both the buyer and seller mutually benefit. The above
definition also includes the protection of the natural environment, by attempting
to minimize the detrimental impact this exchange has on the environment. This
second point is important, for human consumption by its very nature is destructive
to the natural environment. (To be accurate products making green claims should
state they are "less environmentally harmful" rather than "Environmentally
Friendly.") Thus green marketing should look at minimizing environmental harm,
not necessarily eliminating it.

1.3 WHY IS GREEN MARKETING IMPORTANT

The question of why green marketing has increased in importance is quite simple
and relies on the basic definition of Economics:

"Economics is the study of how people use their limited resources to try to satisfy
unlimited wants.

Thus mankind has limited resources on the earth, with which she/he must attempt
to provide for the worlds' unlimited wants. While the question of whether these
wants are reasonable or achievable is important, this issue will not be addressed
in this paper. In market societies where there is "freedom of choice", it has
generally been accepted that individuals and organizations have the right to
attempt to have their wants satisfied. As firms face limited natural resources, they
must develop new or alternative ways of satisfying these unlimited wants.
Ultimately green marketing looks at how marketing activities utilize these limited
resources, while satisfying consumers wants, both of individuals and industry, as
well as achieving the selling organization's objectives.

1.4 What is the need of green marketing?

The concept of green marketing has emerged as a viable solution to address
environmental issues and market the products of the company at the same time.
Let us take a look at the factors that impel organizations worldwide to go green.

1. Social Responsibility

Companies have decided to incorporate green marketing in their ambitious

corporate social responsibility initiative. It integrates nicely with the
strategies of business. The world is waking up to sustainable development
and environmental protection. Companies have realized the need to behave
in a more environment-friendly fashion.

2. Competitive Advantage

Going green provides a certain degree of competitive advantage to the

business in the sense that its products are ranked favorably amongst the
consumers and it can aim to sell them at a price higher than the industrial
norm as the consumers are willing to pay more for green products.
 3. Consumer Awareness

The increasing consumer concern towards green marketing makes it a very

lucrative business opportunity for the business. More than 25% of Indian
urban consumers prefer green products. The company may design new
products solely to capitalize on consumer conscience.

1.5 Greening of the marketing mix

The marketing mix contains 4 Ps namely-product, price, place and promotion.
Green marketing impacts them in a big way.

The Four Ps Model

 Product – The first of the Four Ps of marketing is product. A product can be
either a tangible good or an intangible service that fulfills a need or want of
consumers. Whether you sell custom pallets and wood products or provide
luxury accommodations, it’s imperative that you have a clear grasp of exactly
what your product is and what makes it unique before you can successfully
market it.
 Price – Once a concrete understanding of the product offering is established
we can start making some pricing decisions. Price determinations will impact
 profit margins, supply, demand and marketing strategy. Similar (in concept)
products and brands may need to be positioned differently based on varying
price points, while price elasticity considerations may influence our next two
Ps.
 Promotion – We’ve got a product and a price now it’s time to promote it.
Promotion looks at the many ways marketing agencies disseminate relevant
product information to consumers and differentiate a particular product or
service. Promotion includes elements like: advertising, public relations, social
media marketing, email marketing, search engine marketing, video marketing
and more. Each touch point must be supported by a well positioned brand to
truly maximize return on investment.
 Place – Often you will hear marketers saying that marketing is about putting
the right product, at the right price, at the right place, at the right time. It’s
critical then, to evaluate what the ideal locations are to convert potential clients
into actual clients. Today, even in situations where the actual transaction
doesn’t happen on the web, the initial place potential clients are engaged and
converted is online.

1.6 The green product

There are several characteristics that a product must possess in order to be

labelled as a “green product”. Some of them are as follows:

 The product must not harm any animal or person in any manner.
 The product must not harm environment in any manner during its life
cycle.
 The product must not consume a disproportionate amount of
resources.
 The product must not cause unnecessary waste.
1.7 The green price

The businesses often price the green products a bit higher than their non-green
equivalents. This increased price is justified by citing a cost intensive production
process. The consumers, more often than not, are ready to pay the increased price
and show their support for the initiatives taken for a greener environment. For
example, organic fruits and vegetables are generally priced higher than normal
grocery items.

1.8 The Green consumer

Green has gone mainstream. All of us are some shades of green. If the number of
green products in the market right now is any indication, consumers seem quite
supportive of the “green cause”. The green consumers are those that are aware of
environmental concerns and support organic products to the extent of shifting
their product preference to green products even if it entails a higher cost.
Installing a solar panel is all hip, but it can set you back by some thousands. There
are many insanely simple steps that can be taken by us to promote “green love”.

1. Buy only “energy star label” products as they help in saving the
environment (and they reduce the electricity bills too.)
2. Always lock the gas cap before leaving your home.
3. Always switch off the lights at home and work.
4. Don’t use plastic bags to carry things. Instead, take out your jute bag
when you go to shop.
5. Keep a water bottle with you always and refrain from purchasing
bottled water.

Green marketing has a long way to go. Green marketing has its roots in the ideas
of environmental protection and sustainable development. It is closely related to
ethics of the business. The challenge here for the businesses is to find better
alternatives to traditional marketing which are affordable and hence, become
widely acceptable. The key to a better planet is more of “green love”.

1.9 COMPANIES USING GREEN MARKETING IN INDIA

With India making rapid progress in the field of industrialization, concerns have
also been made by various sections of environmentalists regarding the
repercussions on the environment. The companies themselves are now more
aware about the ways in which their factories often affect the ecosystem and have
taken a greener path to success. Here are the top ten green companies in India
whichFiinovation believes, are showing the path of sustainability to others.

1. L.G
LG India has been a pioneer is making electronic gadgets that are eco-
friendly. Recently, it has launched a LED E60 and E90 series monitor for
the Indian market. Its USP is that it consumes 40% less energy than
conventional LED monitors. Also, they hardly used halogen or mercury,
trying to keep down the use of hazardous materials in their products.

2. HCL
HCL is another brand that is trying to introduce eco- friendly products in
the market and it has recently launched the HCL ME 40 notebooks. These
notebooks do not use any polyvinyl chloride (PVC) material or other
harmful chemicals and the Bureau of Energy Efficiency already given it a
five star rating.
3. HAIER
Eco branding is a part of Haier’s new green initiative and they have
launched the Eco Life Series. They have semi automatic and automatic
refrigerators and washing machines, split and window air conditioners and
a lot more.

4. SAMSUNG
Samsung India has always had a roaring range of LED TV screens and now
they have come up with eco- friendly LED backlight. They use 40% less
electricity have also no harmful chemicals like mercury and lead.
5. TATA CONSULTANCY SERVICES
TCS has a globally recognized Sustainability practice and has already
topped the Newsweek’s top World’s Greenest Company title. It also has a
global green score of 80.4% and this has mainly happened due their
initiative of creating technology for agricultural and community benefits.

6. OIL AND NATURAL COMPANIES

India’s largest oil producer is all set to change the way with the invention
of green crematoriums, that would serve as a perfect replacement for the
funeral pyres that emit so much smoke and uses up excess oxygen.
7. INDUSLAND BANK
One of the first banks in India to discourage the use of paper for the
counterfoils in ATMs, and sending electronic messages, it has contributed
a lot towards saving paper and reducing deforestation.

8. ITC
ITC has adopted a Low Carbon Growth Path and a Cleaner Environment
Approach and has already introduced ozone treated elemental chlorine free
bleaching technology that has improved the lives of millions worldwide.
9. WIPRO
Wipro, has not only helped in the creation of technology that helps in
saving energy and preventing wastes, but its corporate headquarters in
Pune is the most eco friendly building in this sector all over India.

10. MRF TYRES

MRF has launched the ZSLK series and this is all about creating eco-
friendly tubeless tyres made from unique silica- based rubber and also
offers extra fuel efficiency to those who drive their vehicles.
 CHAPTER 2
CUSTOMER SATISFACTION

2.1 Customer satisfaction is a marketing term that measures how products or

services supplied by a company meet or surpass a customer's expectation.
Customer satisfaction is important because it provides marketers and business
owners with a metric that they can use to manage and improve their businesses.

2.2 PURPOSE

"Customer satisfaction provides a leading indicator of consumer purchase

intentions and loyalty. Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold

1. Within organizations, the collection, analysis and dissemination of these

data send a message about the importance of tending to customers and
ensuring that they have a positive experience with the company's goods
and services.
2. Although sales or market share can indicate how well a firm is
performing currently, satisfaction is perhaps the best indicator of how
likely it is that the firm’s customers will make further purchases in the
future. Much research has focused on the relationship between customer
satisfaction and retention. Studies indicate that the ramifications of
satisfaction are most strongly realized at the extremes.
On a five-point scale, individuals who rate their satisfaction level as '5' are likely
to become return customers and might even evangelize for the firm. (A second
important metric related to satisfaction is willingness to recommend. This metric
is defined as "The percentage of surveyed customers who indicate that they would
recommend a brand to friends." When a customer is satisfied with a product, he
or she might recommend it to friends, relatives and colleagues. This can be a
powerful marketing advantage.) "Individuals who rate their satisfaction level as
'1,' by contrast, are unlikely to return. Further, they can hurt the firm by making
negative comments about it to prospective customers.

2.3 IMPORTANCE
 It’s a leading indicator of consumer repurchase intentions and loyalty
 It’s a point of differentiation
 It reduces customer churn
 It increases customer lifetime value
 It reduces negative word of mouth
  It’s cheaper to retain customers than acquire new ones

Customer Satisfaction and Green Marketing

Customer satisfaction has been defined in two basic ways: as either an outcome
or as a process. As an outcome, satisfying the end state resulting from the
consumption experience. As a process, it is the perceptual evaluative and
psychological process that contributes to satisfaction. The definition is varied
with regards to their level of simplicity which includes;

 Product satisfaction
 Satisfaction with the purchase decision experience.
 Satisfaction with the performance attribute

 Satisfaction with the store or institution

 Satisfaction with pre-purchase experience.

Marketing literature suggests that there is a relationship between customer

satisfaction and loyalty. Satisfaction leads to attitudinal loyalty. It could be seen
as the intension to purchase. Satisfaction is an outcome that occurs without
comparing expectations Customer satisfaction could also be defined as an
evaluative response to perceived outcome of a particular consumption
experience. It is an overall judgment on satisfaction, based on the assumption that
satisfaction is the outcome of service quality.

Many Authors believe that customers have a high level of involvement regarding
environmental issues as a consequence of growing environmental consciousness.
Studies have shown the significant influence of environmental knowledge and
consciousness on consumer environmental attitude. Consequently, companies
that communicate their ‘green product’ in their packaging, advertisement or
manufacturing process, gain satisfied customers. Because of the green trend,
companies that fail to ‘go green’ are not failing to fail in their industry. Customers
want to associate themselves with companies and products that are eco-friendly.

1. Environmental Safety

Environment is simply our surrounding. The increased awareness on

environmental issues is as a result of increased publicity on the media on issues
such as, the warring off of the ozone layer and increased pollution of the
environment by industries. Customers have become concern about their everyday
habit and the impact it has on their environment.

Managing environmental safety issue is highly challenging, time consuming and

expensive. There are many laws on environmental safety that have made
companies liable to any wrongdoings. These laws cover areas such as, harmful
pollution, managing of hazardous materials and soon. As a result, several hazard
con- trol, pollution control and prevention programs are held in different parts of
the world on emergency procedures, contingency planning and employee
training.

Similarly, many regulatory bodies and acts are set to ensure environmental safety
and protection, some of which include, OSHA (Occupational Safety and health
Act), CERCLA ( Comprehensive environmental Respond Compensation liability
Act), TSCA (Toxic Substance Control Act), HMTA ( the Hazardous Material
Transportation Act), FIFRA ( Federal Insecticide, Fungicide and Rodenticide
Act), FFDCA (Federal food, Drug and Cosmetic Act, Clean Air Act, Clean Water
Act, GHS (Globally Harmonized System of Classification and labeling of
Chemicals).

Environmental Safety is not an easy task to implement. Implementing the GHS

standardization policies of a single frame work of the classification and labeling
of chemicals so hazards are consistently defined across different national
jurisdiction is beneficial but highly challenging, especially in countries like U.S,
Japan and Korea that have multiple regulatory authorities. EH&S (Environmental
Health and Safety) regulatory compliance and CSR (Cooperate Social
Responsibility) initiative throughout the supply chain can help promote and
sustain ongoing improvement within an organization. These improvements will
help the company achieve regulatory compliance and position itself as a socially
responsible company.

1. Discussion

There is now a real sense that environmental protection is highly necessary.

Everyone believes a green life is a better and healthier life for present and future
generation. Most consumers’ spending pattern shows that they have a desire for
brands that ‘go green’. Consumers not only want to buy their products but are
willing to pay more for it. Based on research, 70 percent of some 2000 people in
US, UK, Germany, the Netherlands, Australia and Japan are willing to pay a
premium for energy alternatives such as, wind and solar power. Consumers are
motivated to buy from companies that are eco-friendly in the production. When
a company display’s the green logo on their product, it shows that their product
or services stands out from the crowd and this gives them a competitive edge.
Consequently, most customer buying decisions are influenced by green product
label like the US energy star logo, Green label in Thailand, Korea Eco label and
much more.

1. Conclusion
2. Green Packaging is the use of manufacturing methods and materials
for packaging of goods that has low impact on the environment and
energy consumption.
3. Green brands are those brands that consumers associate with
environmental conservation and sustainable business practices.
 Green marketing is a tool for protecting the environment for the future
generation. it has a positive impact on environmental safety. Because of the
growing concern of environmental protection, there is an emergence of a new
market which is the green market. For companies to survive in this market, they
need to go green in all aspect of their business. Consumers want to identify
themselves with companies that are green compliant and are willing to pay a
premium for a greener life style. As such, green marketing is not just an
environmental protection tool but also, a marketing strategy.