IMPACT OF GREEN MARKETING ON CONSUMER BUYING

DECISION OF GREEN PRODUCTS IN KATHMANDU DISTRICT, NEPAL

BY
KIRTI PANTHI
Exam Roll No: 591/18
T.U. Registration No: 7-2-39-1450-2013

A Graduate Research Report Submitted in the partial fulfillment of the

requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

At the
School of Management
Faculty of Management
Tribhuvan University

Kirtipur, Nepal
July, 2021
Title Page

i
Recommendation

ii
Certification

iii
 DECLARATION OF AUTHENTICITY

I, Kirti Panthi, declare that this GRP is my own original work and that it has fully and
specially acknowledged whenever adapted from other sources. I also understand that
if at any time it is shown that I have significantly misrepresented material presented to
SOMTU, any credits awarded to me on the basis of that material may be revoked.

Signature:

Name: Kirti Panthi

Date: July, 2021

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 ACKNOWLEDGEMENTS

I would never have been able to accomplish this GRP without the guidance of my
GRP supervisor and support from all the participants of the research survey. I would
like to express my deepest gratitude for my GRP supervisor Prof. Dr. Mahananda
Chalise for his patience, motivation and knowledge for this dissertation. Without his
persistence guidance and help, this GRP would not have been possible. He
consistently allowed this paper to be my own work, but steered me in the right
direction whenever he thought I needed it. His advice on both research as well as on
my career have been invaluable.

I am extremely grateful to all the facilitators of School of Management, Tribhuvan

University for providing direct and indirect support for the completion of the study.

Finally, I must express my sincere gratitude to the participants of the questionnaire

survey and interview for their time and effort and my parents for providing me with
consistent support and continuous encouragement throughout my years of study and
through the process of writing this GRP. This accomplishment would not have been
possible without them.

Kirti Panthi

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 TABLE OF CONTENTS
TITLE PAGE .................................................................................................................. i
RECOMMENDATION ................................................................................................. ii
CERTIFICATION ........................................................................................................iii
DECLARATION OF AUTHENTICITY ..................................................................... iv
ACKNOWLEDGEMENTS ........................................................................................... v
TABLE OF CONTENTS .............................................................................................. vi
LIST OF TABLES ........................................................................................................ ix
LIST OF FIGURES ....................................................................................................... x
ABBREVIATIONS USED ........................................................................................... xi
EXECUTIVE SUMMARY ......................................................................................... xii
CHAPTER I ................................................................................................................... 1
INTRODUCTION ......................................................................................................... 1
1.1 Background of the Study ...................................................................................... 1
1.2 Statement of the Problem ..................................................................................... 2
1.3 Objectives of the Study ........................................................................................ 4
1.4 Hypothesis ............................................................................................................ 4
1.5 Significance of the Study...................................................................................... 5
1.6 Limitations of the Study ....................................................................................... 6
1.7 Structure of the Study ........................................................................................... 6
CHAPTER II .................................................................................................................. 8
RELATED LITERATURE AND THEORETICAL FRAMEWORK .......................... 8
2.1 Introduction .......................................................................................................... 8
2.2 Green Marketing ................................................................................................... 8
2.2.1 Green Consumer .......................................................................................... 9
2.2.2 Green Products .......................................................................................... 10
2.2.3 Green Brands/Products in Nepal ............................................................... 11
2.3 Review of Earlier Studies ................................................................................... 12
2.3.1 Green/Eco Labelling .................................................................................. 12
2.3.2 Green Branding and Packaging ................................................................. 14
2.3.3 Green Premium Pricing ............................................................................. 16
2.3.4 Green Advertising ..................................................................................... 17

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 2.3.5 Environmental Concern and Beliefs .......................................................... 19
2.4 Buying Decision ................................................................................................. 20
2.4.1 Green Marketing and Consumer Buying Decision of Green Products ..... 20
2.5 Research Gap ...................................................................................................... 22
2.6 Theoretical Framework ...................................................................................... 22
2.6.1 Age, Gender, Income, Education and Consumer Buying Decision of Green
Products .............................................................................................................. 24
CHAPTER III .............................................................................................................. 25
RESEARCH METHODS ............................................................................................ 25
3.1 Research Design ................................................................................................. 25
3.2 Population and Sample ....................................................................................... 25
3.3 Sources and Methods of Data Collection ........................................................... 26
3.4 Instrumentation ................................................................................................... 27
3.5 Data Analysis Methods....................................................................................... 27
3.5.1 Descriptive Statistics ................................................................................. 28
3.5.2 Correlation Analysis .................................................................................. 28
3.5.3 Regression Analysis .................................................................................. 28
3.6 Reliability ........................................................................................................... 29
CHAPTER IV .............................................................................................................. 31
ANALYSIS AND RESULTS ...................................................................................... 31
4.1 Demographic Profile of Respondents ................................................................. 31
4.2 Descriptive Statistics .......................................................................................... 33
4.2.1 Environmental Concerns and Beliefs ........................................................ 33
4.2.2 Eco-labels .................................................................................................. 34
4.2.3 Green Branding and Packaging ................................................................. 35
4.2.4 Green Advertising ..................................................................................... 36
4.2.5 Green Premium Pricing ............................................................................. 37
4.2.6 Consumer Buying Decision of Green Products......................................... 38
4.3 Correlation Matrix .............................................................................................. 39
4.4 Multiple Regression Analysis............................................................................. 40
4.4.1 Multicollinearity Test ................................................................................ 42
4.5 Green Marketing Tools and Green Buying Decision across Moderating (Socio-
demographic) Variables...................................................................................... 43
4.5.1 Green Marketing Tools and Green Buying Decision across Gender ........ 43
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 4.5.2 Green Marketing Tools and Green Buying Decision across Age Group .. 44
4.5.3 Green Marketing Tools and Green Buying Decision across Education
Level.......................................................................................................... 46
4.5.4 Green Marketing Tools and Green Buying Decision across Monthly
Household Income .................................................................................... 48
4.6 Other Findings of the Study ............................................................................... 50
4.7 Summary of Hypothesis Testing ........................................................................ 52
4.8 Summary of Buying Decision of Green Products across Moderating (Socio-
demographic) Variables...................................................................................... 53
4.9 Impact of Green Marketing on Consumers according to Interviewed Marketers54
4.9.1 Impact of Environmental Concern and Beliefs ......................................... 55
4.9.2 mpact of Eco-labels ................................................................................... 55
4.9.3 Impact of Green Branding and Packaging ................................................ 56
4.9.4 Impact of Green Advertising..................................................................... 56
4.9.5 Impact of Premium Green Pricing ............................................................ 57
4.10 Major Findings of the Study ............................................................................... 58
CHAPTER V ............................................................................................................... 60
DISCUSSION, CONCLUSION AND IMPLICATION.............................................. 60
5.1 Discussion........................................................................................................... 60
5.2 Conclusion .......................................................................................................... 62
5.3 Implications ........................................................................................................ 63
REFERENCES ............................................................................................................ 66
APPENDIX 1 ............................................................................................................... 75
APPENDIX 2 ............................................................................................................... 81

viii
 LIST OF TABLES

Table 1 Reliability Analysis of the Study .............................................................. 30

Table 2 Socio-demographic Profile of Respondents .............................................. 32
Table 3 Descriptive Statistics of Environmental Concerns and Beliefs ................ 33
Table 4 Descriptive Statistics of Eco-labels........................................................... 34
Table 5 Descriptive Statistics of Green Branding and Packaging ......................... 35
Table 6 Descriptive Statistics of Green Advertising .............................................. 36
Table 7 Descriptive Statistics of Green Premium Pricing ..................................... 37
Table 8 Descriptive Statistics for Buying Decision of Green Products ................. 38
Table 9 Correlation Matrix..................................................................................... 39
Table 10 Model Summary........................................................................................ 40
Table 11 ANOVA .................................................................................................... 40
Table 12 Regression Coefficients ............................................................................ 41
Table 13 Collinearity Statistics ................................................................................ 42
Table 14 Results of Independent t-test across Gender ............................................. 43
Table 15 Results of ANOVA across Age Group ..................................................... 44
Table 16 Results of ANOVA across Education Level ............................................. 46
Table 17 Results of ANOVA across Monthly Household Income .......................... 48
Table 18 General Questions ..................................................................................... 50
Table 19 Green Marketing Element that Influences Green Purchase Decision ....... 51
Table 20 Categories in which Respondents Prefer to Buy Green Products ............. 46
Table 21 Result of Hypothesis Tests ........................................................................ 52
Table 22 Results of Buying Decision across Socio-demographic Variables ........... 53

ix
 LIST OF FIGURE

Figure 1 Theoretical Framework ................................................................................. 23

x
 ABBREVIATIONS USED

BDGP Buying Decision of Green Products

ECB Environmental Concerns and Beliefs

EL Eco-labeling

GAD Green Advertising

GBP Green Branding and Packaging

GPP Green Premium Pricing

SOMTU School of Management, Tribhuvan University

SPSS Statistical Package for Social Sciences

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 EXECUTIVE SUMMARY

Consumers are concerned about how their purchasing habits can help to minimize
negative impact on environment. Business firms and manufacturing companies have
been socially and environmentally responsible owing to those sentiments. This has led
to the concept of green marketing in business world as well. Green marketing
describes a company's efforts to develop and advertise the environmental
sustainability of their business practices and creating and promoting products based
on their environmental sustainability. The review of previous literatures revealed
impact of various green marketing tools on consumer buying decision of green
products. Keeping this in view, this research study examined the impact of five green
marketing tools which are green branding and packaging, green advertising, green
premium pricing, eco-labels, and environmental concerns and beliefs on consumer
buying decision of green products. At the same time, it examined if the buying
decision of green products varied across the socio-demographic or moderating
variables.

This research study used descriptive research design. Through non-probability

purposive sampling, the responses were collected from 200 individuals with the help
of questionnaire survey. The collected data were organized, analyzed, and tabulated
using SPSS version 27 and Microsoft Excel. Both descriptive analysis and inferential
analysis were conducted to meet the objectives.

The research study revealed that environmental concerns and beliefs have significant
positive impact on green buying decision among the consumers of Kathmandu
district. Similarly, green branding and packaging, eco-labels, and green premium
pricing also have significant positive impact on buying decision of green products. It
was also found that green advertising has no significant impact on consumer buying
decision of green products.

The study also found that male and female participants had similar buying decision of
green products. Consumers who have only passed intermediate level make lowest
green purchases while consumers having master’s degrees make highest green
purchases. Buying decision of green products varied across participants having
different age groups and monthly incomes.

xii
The two interviewed marketers stated that environmental concerns and beliefs, green
branding and packaging, green advertising, and green premium pricing positively
impacted consumers’ buying decision of their products, whereas, marketers stated that
consumers were indifferent towards eco-labels or certifications of their products.

This study has both theoretical and practical implications. It provides insights to
scholars regarding impact of various green marketing factors and helps identify gap
for future research. Likewise, it also has practical implications towards marketing
personnel or business owners of green products to adopt certain tools of green
marketing and appropriate strategies so as to encourage green buying decisions or
green purchases from consumers.

xiii
 CHAPTER I
INTRODUCTION

1.1 Background of the Study

Green marketing describes a company's efforts to develop and advertise the

environmental sustainability of their business practices and creating and promoting
products based on their environmental sustainability. Kotler and Armstrong (2010)
have defined green marketing as that phenomenon which fulfills the present needs of
consumers while also preserving the ability of future generations to fulfill their needs.
Companies are advertising the reduced emissions associated with their products’
manufacturing process, or the use of post-consumer recycled materials for product
packaging or the efficiency of their appliances and automobiles (Papadopoulos et al.,
2010). All these branding and packaging, advertising and labelling strategies with
regards to their green products come under green marketing. Moreover, some
companies simply market themselves as being environmentally-conscious companies
by donating a portion of their sales proceeds to environmental initiatives, such as
planting trees, solid waste management, and cleaning campaigns (Pride and Ferrell,
2008).

In most of the cases, consumers purchase goods and services which have higher utility
for them. Ultimately, the buying decision rests on consumers even if that decision
process is influenced by marketing factors. The growing awareness of environmental
issues and the consumers’ own concerns and beliefs about their daily activities have
led to trend of green consumption for environmental sustainability. Charter and
Polonsky (2017) have stated that consumers are demanding green alternatives and are
willing to pay a premium price because of their increasing awareness and concerns
towards environmental protection. Buying green products is one of the most vital
consumption behaviors which fosters environmental conservation. Lin and Huang
(2012) have stated that green attitude and awareness in terms of food choice, green
management, green branding, green technology and green consumer choices have
been worldwide trending topics for some time now. There is a significant interest in
organically produced products throughout the world in response to concern of

1
unnatural agricultural practices, food security, human health concern, animal welfare
consideration and environmental sustainability (Wee et al., 2014).

Going green can yield lucrative returns for the businesses as it has been found that
demand for organic products is increasing in Kathmandu, Chitwan, Pokhara, Butwal,
cities of Nepal. Nepalese consumers are willing to pay premium price for green
products (Aryal et al., 2009). But the upsurge in consumption of green food products
is limited as the growth of organic product development is still in formative stage in
Nepal (Bhatta et al., 2008).

In this study, green consumers are those who take into consideration the
environmental consequences of their consumption patterns, and intend to modify their
buying behavior for reducing the environmental impact. Buying decisions of green
consumers are found to be the central theme in the research field of green consumer
behavior. The buying decisions of green consumers are influenced by intrinsic factors
like their environmental concerns and beliefs and extrinsic factors like green
marketing tools: branding and packaging, advertising, premium pricing, and eco-
labels (Juwaheer et al., 2012).

1.2 Statement of the Problem

There has been an increasing concern about environmental issues in the world. Today
aware consumers are concerned about how their purchasing habits can help to
minimize negative impact on environment. Business firms and manufacturing
companies have been socially and environmentally responsible owing to those
sentiments. The production of green products is challenging to all business as
requirement of quality, cost, performance and environmental issues needs to be met.

Although the concept of green marketing has been quite successful in the developed
countries, its impact has yet to be seen in Nepal. There has been emergence of eco
fairs and initiatives supported by profit and non-profit organizations operating in
service and manufacturing industries. NGOs like Sustainable Nepal, Sustainable
Agriculture Development Program Nepal, and Environmental Camps for
Conservation Awareness, Eco-Nepal, Himalayan Climate Initiative, and Green
Homes etc. are supporting as well as taking initiatives for green products and
marketing (Nepali Times Buzz, 2013). Laxmi Bank mounted solar street lights at
2
Bagmati Bridge in Thapathali as part of its Ujyalo Abhiyaan campaign. Alternative
Energy Promotion Centre (AEPC) has been working in the areas of biogas, micro
hydro, solar energy, improved cooking stove, improved water mill and bio fuel
production in collaboration with donors and the government (Nepali Times Buzz,
2013). Clean Energy Nepal conducts education campaigns on the usage of sustainable
energy. The Hamri Bahini: The Green Angel project has created green jobs for 200
plus rural and young Nepali women helping them in making, and distributing cloth
and paper shopping bags to replace use of polythene bags in Kathmandu (Nepali
Times Buzz, 2013). The environment division at Kathmandu Metropolitan City office
has been raising awareness on reducing waste from the source while managing the
waste generated by fifteen lakhs plus population of the valley. Nerolac has introduced
eco-friendly paints with low VOC (volatile organic compound), which protects the
houses as well as the environment when one uses their range of interior and exterior
emulsions. These green initiatives and marketing tools have had their share of benefits
for companies; however, the impact of these initiatives are not fully examined.

Green marketing and green products in Nepal have been popularized due to the efforts
of the entrepreneurs, sustainable business owners, government, organizations and
intention of consumers towards establishing a sustainable environment by
encouraging organic products and environmentally friendly behavior. There are
evidences that green branding and packaging, eco-labelling, green advertising, green
pricing, environmental beliefs have positive impact on consumers leading to increased
green purchases in some cases, and unaffected green purchases in others (Juwaheer et
al., 2012). The results for such researches have varied for different countries,
demographics and so on.

It is, therefore, appropriate to undertake the analysis of the impact of green marketing
tools on the consumer buying decision in a developing nation where green consumers
are emerging. Previous studies have been heavily concentrated on the organic product
market; however, this study provides insights of the Nepalese urban consumer green
consumption and acknowledgements towards green marketing tools or strategies.

Therefore, this research paper aims to find the answers to the following research
questions:

3
 i. How green branding and packaging, green advertising, green labelling and
green pricing strategies impact the consumer buying decision of green
products?
ii. How consumers’ environmental concerns and beliefs influence their buying
decision of green products in Kathmandu District?
iii. Does buying decision of green products vary across socio-demographic factors
such as age, gender, education and income?

1.3 Objectives of the Study

The general objective for this study is to determine the impact of green marketing
towards consumer buying decision of green products in Kathmandu district, Nepal.
The specific objectives of the study are as follows:
i. To analyze the influence of green branding and packaging, green advertising,
green premium pricing, and eco-labels strategies on consumer buying decision
of green products.
ii. To examine the effect of consumers’ environmental concern and beliefs
towards their buying decision of green products.
iii. To examine if the buying decision of green products vary across socio-
demographic factors such as age, gender, education and income in Kathmandu
district.

1.4 Hypothesis

This study aims to investigate the relation between green marketing tools and green
buying decision of consumers. These hypotheses have been proposed after reviewing
the conceptual framework developed by Juwaheer et al. (2012) on their research
article “Analysing the impact of green marketing strategies on consumer purchasing
patterns in Mauritius”. To address the objectives of this study, the following
hypotheses were developed to examine the relationship between green marketing
tools and consumer buying decision of green products.

H1: Environmental concern and belief has a significant impact on consumer buying
decision of green products.
H2: Green/Eco-labels has a significant impact on consumer buying decision of green
products.
4
H3: Green branding and packaging has a significant impact on consumer buying
decision of green products.
H4: Green advertising has a significant impact on consumer buying decision of green
products.
H5: Green premium pricing has a significant impact on consumer buying decision of
green products

1.5 Significance of the Study

Consumer buying decision is an important consideration when constructing marketing

plan, product development, customer service, and policy development. This study
focuses on how individuals make decisions to spend their valuable resources (time,
money, effort) on consumption-related items which include what they buy, how often
they buy, how they evaluate those items after the purchase and the impact of such
evaluations on future purchases, and how they dispose those items.

This research has been conducted to analyze the impact of green marketing tools on
consumer conscience to realize its effects on current and future buying decisions. It
aims to explore relationship between consumer’s actual buying behavior and green
marketing tools. Similarly, this research highlights various aspects of consumer
buying decisions which show preference of the consumers for environmentally
friendly products and aspects of green marketing that influence such purchase
decisions. The green marketing tools such as green labelling, green branding and
packaging, green premium pricing, and green advertising aid to generate awareness,
create interest and modify buying decision towards sustainable purchase habits. The
study examines such tools to find their effectiveness in context of Kathmandu district.

This study will primarily benefit three key stakeholders: businesses, managers, and
investors as success of every business depends upon knowing your consumers. This
study provides relevant information about awareness and knowledge level of
customers regarding green products and what green marketing tools influence them
the most. Similarly, this study provides aid to the policymakers in examining the
current customer beliefs and attitude towards green purchase with regards to
developing policies and programs for sustainable social development through green
investments.

5
1.6 Limitations of the Study

The limitations of the study are as follows:

i. The responses might not be very representative of the population due to
sample limitations, area limitations and result cannot be generalized since the
size of collected questionnaire is small.
ii. There are various marketing tools and factors which influence green buying
decision of consumers but only five variables are taken for the study as all
factors cannot be included in a single study.
iii. This study does not cover the post purchase behavior of the consumers.
iv. Responses may contain insufficient information since data is collected from a
structured questionnaire.

1.7 Structure of the Study

This research study has been organized into following five chapters:

Chapter I - Introduction

This chapter deals with background of the study, statement of the problem, objectives
of the study, research hypothesis, rationale of the study, limitations of the study, and
organization of the study.

Chapter II - Literature Review

This chapter includes review of literature which incorporates the review of previous
related studies, theoretical framework and research gap.

Chapter III - Research Methodology

This chapter focuses on research methodology and it contains research design,

population and sample size, sources of data, data collection processing & procedures,
reliability of questionnaire, analysis tools and techniques.

Chapter IV – Results and Discussion

6
This chapter deals with the main body of the research work and consists of data
presentation and analysis. The collected data are analyzed through descriptive and
inferential analysis using SPSS version 27 and results are drawn and discussed.

Chapter V- Summary, Conclusion and Implications

This chapter discusses about findings of the study and creates link with previous
studies. On the basis of the research objectives, the findings are compared and
concluded. Moreover, the implications of this research paper are also provided to the
stakeholders. The final supplementary part consisting of references and appendices
are also attached at the end of the study.

7
 CHAPTER II
RELATED LITERATURE AND THEORETICAL FRAMEWORK

2.1 Introduction

Green marketing has gained a significant momentum as a popular research area and
many theories have been proposed in the context of green marketing and consumer
behavior, purchasing pattern and ultimately their buying decision. This chapter delves
into the key literature that has been studied surrounding the research topic. The key
aspects of green marketing, green consumer buying decision, environmental concerns
and beliefs and consumer responsiveness on green labelling, green advertising, green
branding and packaging, and green premium pricing are explained primarily based on
the impact of green marketing on consumer buying decision in Nepal.

2.2 Green Marketing

Green marketing has evolved in its definitions and shifted its focus from when it was
first coined in 1976 to the start of the 2010s decade. In the early stages, corporate
responsibility for pollution prevention and resource conversation was the focus of
green marketing definition, which shifted to satisfying marketing needs and to
meeting organizational goals in later decades. Henion and Kinnear (1976) provided
one of the initial definitions of green marketing as the study of the positive and
negative aspects of marketing activities on pollution, energy depletion and non-energy
resource depletion. The evolution of spectrum of green marketing has improved
relationship between sustainability and marketing strategies (Jones et al., 2008).
Green marketing refers to the planning, development and promotion of products or
services which satisfy the needs of consumers for quality, output, accessible prices
and service, without having negative effects on the environment, with regard to the
use of raw material and the consumption of energy etc. (Papadopoulos et al., 2010).
Redefining products in the market, eliminating waste in production, usage and post
usage, adequate pricing and profitability are the functions of green marketing (Pride
and Ferrell, 2008). Thus, it can be seen as an amalgamation of environment
management process, marketing activities and product or offerings for value creation
to society, environment and sustainable future.

8
Kotler and Armstrong (2010) identified the advantages of green marketing i.e. it
provides some eco-advantages, develops competitive advantages of positive
environmental impact, raises awareness on environmental and social issues,
guarantees sustainable long-term growth with profits, ensures efficient use of energy
and recyclability of goods, and promotes corporate social responsibility. Green
marketing also supports developing countries like Nepal to achieve sustainable
development goals (SDGs).

According to Hung et al. (2015) green marketing consists of efforts made by company
to not only offer environmentally friendly products but also includes changes in the
production, packaging, advertising, designing, promoting, pricing, and distributing
products that do not harm the environment and mankind. In the same vein, Mahmoud
(2018) states that green marketing encompasses all environmentally responsible
marketing activities which reduce negative impact on the environment.

2.2.1 Green Consumer

Addressing demands of green consumers is another perspective of green marketing.

The concept of green marketing is better understood by understanding a green
consumer. Strong (1996) defines green consumers as those who avoid products that
are likely to endanger the health of the consumer or others, cause significant damage
to the environment during manufacture, use or disposal, consume high amount of
energy, cause unnecessary waste, and use materials derived from threatened species.
Green consumers have been the focal point of the environmental marketing strategies
(Papadopoulos et al., 2010) and a large section of the literature in green marketing has
focused on the determinants of their environmental behavior, green purchase behavior
and post-purchase behavior.

Several green consumer studies have shown that environmentally conscious

consumers respond to environmentally responsible behavior of the companies which
can be exhibited in their purchase behavior (Papadopoulos et al., 2010; Do Paco and
Raposo, 2009). A number of researches have shown that green consumers are likely
to prefer products which have eco-friendly product design and processes (Pickett-
Baker and Ozaki, 2008; D’Souza et al., 2006). Similarly, product attributes such as
health-related information, nutrition, taste, quality, ingredients, and appearance,

9
reputation of the manufacturer and retailer, availability of environmental information
and knowledge, consumers’ past experience, and marketing communication targeted
towards the consumers through interpersonal communication, influence of opinion
leaders and word-of mouth, etc. are some market-related variables or tools which are
used to market the green products and practices so that consumers’ attitude, decision
making and behavior can be influenced (Pickett-Baker and Ozaki, 2008).

A green marketing study by Minton, Lee, Orth, Kim, and Kahle (2012) tested the use
of Facebook and Twitter to examine motives for green behaviors. The research
included 1,018 respondents from the United States, Germany, and South Korea from
an online survey. They found significant differences in social media motives for green
consumption and behavior among countries and type of social medium. Heavy
Twitter users were significantly more likely to participate in all sustainable behaviors
when compared with heavy Facebook users. In addition, responsibility motives
consistently led to organic food purchase and respondents from South Korea
participated in more sustainable behaviors than those from Germany or the United
States. Paul and Rana (2012) found consumers purchasing organic food to be highly
educated and Zhu et al. (2013) discovered them to be from well-to-do households.

2.2.2 Green Products

Palevich (2011) acknowledged green products as those which are made through
people friendly and eco-friendly models, technologies and practices. According to
Scott and Ellis (2014), the terms green products and environmental products refer to
products which are used naturally, and which are made from non-toxic, recycled
materials, or with less packaging/eco-packaging. Green products are made in a way
which have no side effects on nature. Thus, a product is considered ‘green’ when its
environmental and societal performance, in production, use, and disposal, is
significantly improved in comparison to general or competitive substitutes. Prakash
(2002) states that reuse, recycle, reduce, repair, recondition, and re-manufacture are
developing processes of green products.

The term green products cover the large variety of goods which provide eco-friendly
solutions and designs. Going green does not only mean having organic food but also
living in sustainable and eco-friendly way. The green technology brought us energy

10
efficient appliances, electric and solar power vehicles (which are superior alternatives
of fossil fuel vehicles), green homes and buildings, and eco-friendly living which
reduce negative externalities towards the environment.

Green products are regularly considered safer and healthier than other conventional
products (Luchs et al., 2010) and they reduce the utilization of natural resources and
the negative impact on the product’s life-cycle (Albino, Balice, and Dangelico, 2009).

2.2.3 Green Brands/Products in Nepal

There are several products which are green in Nepal in different sectors. Locally made
items from sustainable companies are displayed and sold in the store “The Local
Project”. Dinadi, an accessory and fashion enterprise, makes their products from
100% natural, biodegradable materials and they have zero waste. They hire
financially weak women and provide them opportunity of working from homes or in
flexible schedules. Paila is an eco-friendly shoe brand that has been creating shoes
from Dhaka materials. They use locally sourced materials like nettle to make their
shoes (Sustainable and Eco-Friendly Nepali Products, 2019).

Local Women’s Handicrafts offer eco-friendly section where they make yoga mats
and upcycled rugs from old sarees. Tyre Treasures upscales old tires into beautiful
furniture and decorative items. Likewise, Cotton Mill Nepal uses 100% cotton to
create all of their products, and they hire local women to design, stamp, and sew their
items together (Sustainable and Eco-Friendly Nepali Products, 2019). They believe in
having an environmentally friendly as well as people focused production process.

Vegan Dairy Nepal provides dairy-free substitutes for milk, butter, cheese, yogurt etc.
through plant based products such as almond milk, soy milk, almond butter, etc.
which immensely help to conserve the environment and land resources. Similarly,
Karma Coffee is a coffee brand that makes fresh coffee from coffee products grown in
the Himalayas. It also makes sustainable and upcycled items made from coffee.
Sanchai is an organic peanut butter company where the peanuts are grown sustainably
in Khotang, Nepal.

Doko Recyclers is a company in Nepal that picks up the recycled goods. They
organize local events to educate people about recycling and they upcycle the items

11
they pick up. Moreover, Bottles to Beads takes glass bottles that are littering the
environment and turns them into beautiful glass beads and jewelry. They work with
an NGO to offer bead making classes to women in rural areas in Nepal so that they
can learn to upcycle items themselves and make saleable products. Marina
Vaptzarova is a company that makes stationary products by using local plants that
regenerate quickly and creating minimal waste from production process. Likewise,
Jamarko recycles old paper and creates beautiful paper products from the recycled
paper (Sustainable and Eco-Friendly Nepali Products, 2019).

The Shampoo Bar Kathmandu makes a wide range of chemicals free shampoo bars in
Nepal which massively reduces pollution by preventing the use of shampoo,
conditioner, and soap bottles which means no waste in landfills.

2.3 Review of Earlier Studies

Green marketing encompasses several tools and factors which influence the green
buying decisions of consumers. From the revision of various research papers, five
imperative tools of green marketing were selected as the main factors which influence
green purchase decisions in consumers. These factors are described as follows.

2.3.1 Green/Eco Labelling

Green or eco labels are symbols or marks given to a product on compliance to eco-
friendly criteria laid down by government, association or standard certification bodies.
Morris et al. (1995) have stated that specific product claims on product labels like
“eco-friendly”, “recyclable”, “biodegradable”, and “ozone friendly” used by
marketers made it possible for companies to communicate the environmental benefits
of products to the buyers. Eco-label should define and summarize the environmental
performance of product so that it supports consumers in their decision making when
they compare different products regarding their environmental impacts. Consumers
spend less time learning the environmental impact of products and thus eco-labels can
help in easy identification of eco-friendly products. Different categories of labelling
include USDA Organic Certification (USA), Country of Origin Labeling (USA),
Without Gene Technology Label (Germany), FAIRTRADE Certification Mark,
OEKO-TEX Standards (textile) etc. (Bonroy and Constantatos, 2014).

12
Gallastegui (2002) clarified that for purchase results, eco-labelling is an important
factor that will influence the purchasing pattern of consumers from his extensive
literature review. He explained that eco-labels could encourage more green purchases
and also motivate producers or service providers to raise their environmental
standards. He described Type I labels as products of third party certification programs
which are supported by government to certify both products and production processes
and provided examples like Blue Angel and the EU eco-label. Likewise, Type II
labels consist of one-sided informative environmental claims made by manufacturers
or distributors and mention specific attributes such as ‘CFC free’ products.

D’Souza (2004) studied intervening effect of eco-labels on consumer behavior and

argued that environmental information endorsed on labels and ecological attributes,
and product efficacy characteristics may result in increase in sales of green products.

Later, D’Souza with other researchers investigated how consumers in Australia who
differ in terms of environmentalism respond to labels by collecting questionnaires
from 155 respondents (D’Souza et al., 2006). They found out that with respect to
price sensitive green consumers, the results displayed a relationship existing between
“always read labels” and purchase intention even if the product is somewhat more
expensive. Similarly, Horne (2009) elucidated that to develop more sustainable and
consumable products in the market, eco-labeling is a significant tool used by policy
makers.

Bonroy et al. (2014) came to the conclusion that eco-labels enable consumer to
recognize those products and services which have the least environmental impact
throughout their life from their extensive review of previous researches. They further
discussed that eco-labels serve as a credible attribute for stating a product’s impact on
the environment during its life-cycle i.e. from extraction of raw materials to the
ultimate disposal. They also identified complication of the message, large number of
closely related labels, and label-related misperceptions of the true risks or benefits of
the product as the three sources of consumers’ misperception of the eco-labels.

Testa et al. (2015) conducted a quantitative study on Italian consumers and discovered
a significant role of eco‐labels in increasing the consumer's perceived behavioral
control in contrast to loyalty in brand and in store which did not put forth significant

13
influence. The study determined that green marketing tools including labels
influenced purchasing behavior through brand logo of Bodyshop products. Bodyshop
is an eco-brand and eco-friendly cosmetic product. They concluded that eco-label is
an effective marketing tool to expand the consumer's market. Therefore, it can reach
consumers who want to preserve the environment.

In prior research paper, Brécard (2017) observed that eco-labelling has a significant
effect on the buying decision of consumers towards products as it conveys
information relating to the environmental concerns of consumers and characteristics
of the product. It addresses both business users and varied consumers by providing
them with product information related to the environment. Eco-labelling plays a major
role in the development of environmental policy and in promoting purchase of eco-
friendly products.

However, the impression of eco-labelling has created some confusion for consumers
and can create an ambiguous situation for them to predict the environmental quality of
products (Harbaugh et al., 2011). Recently Kardos et al. (2019) and earlier Bhaskaran
et al. (2006) discovered that consumers have a lack of trust towards the plethora of
eco-labeling on products.

2.3.2 Green Branding and Packaging

Green branding and packaging have not been significant focus of research up until the
last decade. Green branding is still yet to be broadly explored by green marketers in
today’s economy. Green brands are those that people can associate with
environmental conversation and ecological/sustainable business practices. Growing
environmental knowledge of consumers have encouraged them to be more favorable
towards brands that position themselves as being environmental friendly.

According to Pickett-Baker and Ozaki (2008), in marketing, effective branding has

the power in shaping individuals’ thoughts, feelings and opinions towards green
products and help in shifting consumer attitudes towards greener consumption and if
green brand attributes are not well communicated, then environmentally sustainable
products will not be commercially successful.

14
The attitude of consumers towards green products can be changed by the brands. It
has been argued that for the success of green branding strategies, green positioning is
an important element.

Similarly, green packaging is an approach towards product packaging that considers

full environmental impact of the production and disposal of the packaging material. A
sustainable package will generate less waste than conventional packaging and will be
manufactured from materials that use as much recyclable materials as possible using
least amount of energy. Packaging can be considered ecological depending on the
degree of environment pollution.

Deliya and Parmar (2012) observed how appropriate and vivid picture or packaging
color delivered a feel-good feeling among consumers, and an easy dispose package
shape piqued customer’s attention leading to purchase decision in Gujarat, India.

Huang et al. (2014) examined the relationship among green brand positioning, green
brand knowledge, attitude toward green brand, and green purchase intention in
Taiwan through questionnaire survey. The results indicated that green brand
positioning and green brand knowledge influenced green brand attitudes, which in
turn, influenced green purchase intention.

Mishra, Jain, and Motiani, (2017) examined the relationship of three variables,
“concern for environment”, “knowledge about green packaging”, and “beliefs about
positive consequences of using green packaging” with consumer attitude towards
paying price premium through survey in major cities of eastern and western India.
The results of the study indicated that consumers are ready to pay premium for green
packaging.

The awareness of the consumers regarding green packaging and branding has led to
more environmentally friendly attitudes (Swenson et al., 2018). Yang and Zhao,
(2019) applied correlation analysis and multiple regression to evaluate data collected
by a questionnaire survey to determine factors influencing green consumer behavior
in China. They indicated that green packaging and branding is a significant factor in
guiding consumer behavior and purchasing decisions of Chinese consumers.

15
2.3.3 Green Premium Pricing

Tripathi and Pandey (2018) state that green pricing considers both the economic and
environmental costs of production and marketing while providing value for
consumers. Green products tend to be more expensive because the ingredients may be
costlier than their conventional counterparts. For instance, organic food grown with
natural fertilizers may be relatively more expensive than those foods not utilizing
natural fertilizers. Costs related to green supply chain can also be higher. Due to this a
price gap between conventional products and green products is created, which is
referred as the “green pricing gap”.

The higher price can be a barrier to wide market acceptance for many green products,
as some consumers may want to purchase sustainable products but either do not want
or are financially unable to pay a higher price.

Findings of several market studies suggest that many customers in the marketplace are
willing to pay higher prices for green products (Swezey and Bird, 2001). Aryal,
Chaudhary, Pandit, and Sharma (2009) conducted a study on consumers' willingness
to pay a price premium for organic products in Kathmandu Valley by surveying 180
consumers. The study discovered that respondents were willing to pay price premium
but the level of acceptability was different. 58% of the consumers were willing to pay
6-20% price premium and 13% were willing to pay up to 50% premium. The average
premium was projected to be about 30%. About 39% of the respondents felt the extra
cost for organic products was reasonable while 27% of the respondents considered it
too high.

Premium pricing strategies receive a significant response from customers. Rahbar and
Wahid (2011) in Malaysia and Bukhari (2011) in India have contributed in similar
type of research findings unfolding that consumers are prone to purchasing products
that they are emotionally attached to them and are willing to pay premium prices.

Meanwhile, Handriana (2016) utilized qualitative research for collecting the data of
young people, homemakers, and professionals in Indonesia towards green buying
perception by using in-depth interview technique. She revealed that higher price of
green products became hindrance for green purchase decision of Indonesian

16
consumers. Consumer purchasing behavior is, therefore, affected by green products
and their pricing (Mishra et al., 2017).

Ferraz et al. (2017) conducted a cross-cultural study between Brazilian and Canadian
university students to analyze their intentions and behavior regarding the purchase of
green products. They found that Canadian students were willing to pay more for
green products to favor the environment than Brazilian students.

Moreover, Shao and Unal (2019) selected Electric Vehicle Industry for analysis with
an online survey of 582 consumers and used the structural equation modeling (SEM)
technique. The results unveiled that environmental impact is critical for driving
consumers’ willingness to pay price premium and thus consumers are ready to pay
more for electric vehicles which causes low environmental impact. On the other side,
consumers do not intend to pay price premium for social impact of a product despite
being aware about it.

2.3.4 Green Advertising

Green advertising refers to a form of communication that highlights the environment

friendly aspect of the product or organization. It involves promotional activities
centered on environmental aspects. Environmental advertisements help to form
consumer values and translate these values into the purchase of green products
(Baldwin, 1993). Advertising messages which promote sustainable goods and services
and appeal to the needs and desires of environmentally concerned consumers are often
labelled as green advertising. The objective of green advertisements is to influence
consumer’s purchase behavior by encouraging them to buy products that do not harm
the environment and to direct their attention to the positive consequences of their
purchase behavior (Rahbar and Wahid, 2011).

The influence of environmental advertisements on consumer buying decision has been

proven by various prior studies. Pickett-Baker & Ozaki (2008) led a consumer
product survey among 52 mothers who shopped at supermarkets using a questionnaire
based on the Dunlap and van Liere HEP‐NEP environmental survey and the Roper
Starch Worldwide environmental behaviour survey. The results of their study
reinforced the effect of green advertising on purchase decisions, meaning that such

17
adverts can influence brand evaluation, thereby consumers are encouraged to choose
environmentally friendly products.

See and Mansori (2012) revealed that effective advertising through magazines,
newspapers and TV channels had enhanced organic food awareness and purchase
intentions of young female organic food consumers in the Klang Valley, Malaysia.

Delafrooz, Taleghani, and Nouri (2014) conducted a quantitative study of green

marketing tools among 384 respondents using cluster sampling in Tehran city. The
data was analyzed using the Spearman correlation test and multiple regression
analysis. They discovered that green or environmental advertising had the most
significant positive effect on Iranian consumers’ purchasing behavior and eco-brand
had the least effect.

Literature on content of green advertisements delves into advertising message and

message credibility. Many researchers have captured trend analysis on greening of
advertising and changing nature of advertising messages (Leonidou et al., 2014;
Easterling et al., 1996). Likewise, in many studies, authors have discussed skepticism
of environmental claims in advertisements (Leonidou et al., 2014; Banerjee et al.,
1995). Thus, major contributions are related to capturing changing nature of green
advertisements, degree of advertising greenness and authenticity of environmental
claims.

Podvorica and Ukaj (2020) conducted a research based survey in Kosova. Their
analysis focused on statistical correlation testing of green marketing awareness of
consumers, their environment behavior, trust in advertising and labels displaying
health benefits of beverages and attitudes towards willingness to pay more for organic
non-alcoholic beverages compared with non-organic beverages. They discovered that
consumers’ environment friendly behavior was positively influenced by family and
media. But, consumers’ had mistrust in the marketing activities of producers as a
consequence of misleading advertising and thus their green purchases were not
significantly influenced by advertising.

18
2.3.5 Environmental Concern and Beliefs

Dunlap and Michelson (2002) defined environmental concern and beliefs as an

individual’s mindfulness of ecological issues and endeavor to bring it into action.
Environmental concerns and problems are linked with all business enterprises and
citizens around the globe (Papadopoulos et al., 2010).

Bang et al. (2000) discovered that consumers who are more concerned about
environmental issues will convert to buy green products even if their prices are higher
than non-green products. Bamberg (2003) found that environmental concern has
positive and significant effect on consumer buying decision of green products.

Kim and Choi (2005) revealed that individuals with high concern towards
environmental issues are more willing to buy green products and vice versa.
Therefore, environmental concern and beliefs would be a fundamental factor for
marketers as they can easily target environmentally inclined consumers.

With the passage of time, communication about consumer beliefs regarding green
items is increasing (Ottman, 2017). Therefore, it is imperative to communicate
information regarding green products in a way that is accessible and understandable
for varied consumers. Consumers have started to change their behavior gradually in
favor of ecology conservation. Thus, a new market for green products has emerged
and active consumers have made it more significant. Kardos et al. (2019) considered
the active role of consumers in their green purchase decisions an imperative factor to
promote the protection of the environment among Romanian young consumers.

However, Coddington (1990) found that buyers who worry on environmental issues
do not generally adapt into buying greener substitutes. Empirical findings have
elucidated that the intention to recycle products, care about environmental pollution
and pay for more ecological products have been reflected in very few customers
(Sloan, 2004).

Young et al. (2010) observed that there is an “attitude-behavior” gap in translating

consumers’ ecological concerns into green behavior. They further stated that
consumers’ interest in being ecologically safe might not always be the reason behind
their green purchase decisions as other factors like ease of availability, convenience,

19
etc. might account for these purchases. Hence, marketers of green products have often
found the gap between pro-environmental attitudes and green purchasing behavior
(Ferraz et al., 2017).

Podvorica and Ukaj (2020) also discovered that those consumers who are more
conscious towards the environment do not necessarily behave in an ecologically
friendly way.

2.4 Buying Decision

Hung et al. (2015) state that buying decision is an evaluation process carried out by
consumer using their knowledge of two or more alternative product choices and
choosing one of them. According to Kotler and Armstrong (2016), purchase decision
is a stage in the buyer's decision making process where consumers actually buy. They
further describe the five stages in the buying decision process: need recognition,
information search, evaluation of alternatives, purchase decision and post purchase
behavior.

Dwipamurti, Mawardi, and Nuralam (2018) suggest that purchase decision is a

provision to identify all possible choices in solving problems and assess choices
systematically and objectively with the aim of determining the relative benefits or
losses. This definition is reinforced by Mahmoud (2018), who expressed that purchase
decision is a process where consumers know the problem, find information about a
particular product or brand and evaluate each of these alternatives deeply to solve the
problem, which then leads to a purchasing decision.

2.4.1 Green Marketing and Consumer Buying Decision of Green Products

Gan, Wee, and Zucie (2008) observed that there is a positive relationship between
environmental consciousness and consumers’ green products buying decision but
brand consciousness negatively influences green purchases. They also stated that
higher price and unfamiliar brand decrease the likelihood to purchase green products.

Ko et al. (2013) and Jones et al. (2008) explained that consumers’ attitudes and beliefs
in decision making are also affected by brand and availability of green products, and
comprehensive reassessment of product design and development, pricing policies,

20
distribution and marketing communications, and product and packaging disposal. In
many instances, price hindered green buying decision (Handriana, 2016).

In the context of studies based on developing countries like Malaysia, Singapore,

Mauritius, and Egypt, researchers found that green consumption was becoming
popular and different elements that influenced green purchases included awareness
and knowledge about green products, trust in eco-labels and brands, consumers’
concern towards environment’s degradation etc. Consumers were also found to be
more socially integrated and have favorable attitudes towards green products
(Juwaheer et al., 2012; Rahbar and Wahid, 2011; Mostafa, 2009). A low level of
ecological awareness directly impacted the green purchase decision of Ghanaian
consumers in a study in Ghana.

Hung et al. (2015) led a research study to identify the responses of the youths on
influence of green marketing towards purchase intention of green products.
Altogether 240 Indonesian and Taiwanese students were selected by purposive
sampling. The result indicated that green marketing positively and significantly
influenced purchase intention toward green products. They explained that promotional
tools should not only advertise the existence of green product but also provide
positive affirmation to consumers about green products.

The relationship between green marketing and purchase decision is also supported by
Azimi and Shabani (2016) who observed that green marketing mix (green product,
green price, green promotion and green distribution) affect purchase decision of
consumers in appliance stores. Adoption of a green marketing strategy had a huge
impact on increasing the sales quantity of green cars (Emeizan et al., 2016).

Similarly, in context of Body Shop products that used green marketing strategy, a
study by Soegoto, Worang, and Saerang (2017) found green marketing strategy to
have significant influence on purchase decision. In addition, green marketing also
increased the re-purchase decision.

21
2.5 Research Gap

There is a dearth of research papers on green marketing in Nepal. On top of that,

majority of them deal with perception and marketing of organic green food products
only (Aryal et al., 2008; Bhatta et al., 2008).

Likewise, Ajay Ghimire (2019) in his Master’s Thesis paper “A qualitative study on
consumer perception towards green products in Nepal” sought out information
regarding perception of green products among Nepalese consumers by interviewing 8
individuals in Kathmandu valley. He found that consumers have positive attitude
towards green products and they understand various benefits of green products. But
green innovation and green marketing has very weak functioning in Nepalese market.
As a result, consumers are not so well informed and not habitual with green
consumption. In addition, he found that consumers are buying few green products like
organic food, plant-based cosmetics, reusable cups or bottles, plant-based medicines
etc. But again as the sample size was only 8 and it was a qualitative study about
knowledge of green products, the study did not focus on influence of green marketing
elements.

Thus, there was an imperative need of carrying out an explanatory and quantitative
research study with a larger sample size to gauge the influence of marketers’ green
marketing tools and consumers’ own environmental beliefs on the consumer buying
decision of green products. This research study aims to determine the significant
marketing elements that marketers, manufacturers, and policymakers should prioritize
to upsurge the demand and use of green products in Nepal for sustainable living and
behaviors.

2.6 Theoretical Framework

The theoretical framework was developed on the premise of research article

“Analysing the impact of green marketing strategies on consumer purchasing patterns
in Mauritius” developed by Juwaheer, Pudaruth, and Noyaux (2012).

22
 Figure 1: Theoretical Framework

This study analyzes the effect on buying decision of consumers considering the use of
green marketing tools. The model shows green marketing tools as independent
variables, which influence the dependent variable i.e. buying decision of green
products. Other factors such as gender, age, education, and income act as moderating
variables. It was decided to keep the independent variables similar as in the research
paper by Juwaheer et al. (2012) after the theoretical review of other research papers in
similar vein. The items under each of these five independent variables, however, were
taken from various research authors and adapted and modified for Nepalese
consumers. In addition, the dependent variable of the study i.e. green purchase
intention was changed into buying decision of green products to address the
objectives of this research study and the items were adapted from various research
authors. Thus, this research study examines the impact of green advertising, green
branding and packaging, green premium pricing and eco-labelling on green purchases
and inspects the influence of consumers’ environmental concern and beliefs on their
green buying decisions. Researchers have found all these five green marketing factors
to have significant impact on buying decision of green products as highlighted in the
literature review.

23
2.6.1 Age, Gender, Income, Education and Consumer Buying Decision of Green
Products

Previous researchers such as Diamantopoulos et al. (2003) and Chekima et al. (2016)
found women to purchase more green products than men and also observed that
women have higher levels of environmental concern than men. But Gilg et al. (2005)
found no gender effect in the UK along with Chen and Chai (2010) in Malaysia and
Zhu et al. (2013) in China. Likewise, Mostafa (2007) found an opposite effect with
Egyptian men being more concerned about the environment and more inclined to
purchase green products than women.

Chan (2000) also revealed that highly educated people are more likely to choose
green goods. He reported the results of a study on Chinese consumers and concluded
that people with low ecological awareness are much less likely to purchase green
products than consumers who more informed about the environmental problems.
Diamantopoulos et al. (2003) and Gan et al. (2008) observed similar results for the
UK and New Zealand respectively.

Income is another relevant determinant of green purchases. As eco-friendly products

are often more expensive than their industrial substitutes, people with low income are
less driven to buy them, and consumers buy less than they like to due to their budget
constraints (Zhu et al. 2013; Zhao et al. 2014).

24
 CHAPTER III
RESEARCH METHODS

This chapter focuses in detail about the procedures that have been followed in
research work for collecting data and processing and analyzing those data using
appropriate tools. There are various steps that were undertaken to find out the
solutions to the research questions and to accomplish the objectives which are
described as follows.

3.1 Research Design

Research design is used to examine the research strategy in order to obtain suitable
results. In this research, the relationship between green marketing tools and consumer
buying decision was analyzed and described. Descriptive research design provides
answers to the questions of who, what, when, where, and how associated with
research problems. It is used to obtain information concerning the current status of the
phenomena and to describe “what exists” with respect to variables in a situation
(Anastas, 1999). Hence, this research adopts descriptive research design.

It is also used to describe the characteristics of respondents on the basis of their

demographic, educational, and economic characteristics. This study employs survey
research design to collect the related data on the topic through structured
questionnaire based on previous literatures. Quantitative analysis was considered
rather suitable for this research as the relationship between green marketing tools and
consumer buying decision for green products could be better explained by means of
using different hypothesis.

3.2 Population and Sample

The population of this research project consisted of the residents of Kathmandu

district who are above 20 years of age and who are aware about green or eco-friendly
products. As a result, target population is unknown as the number of people who are
aware about eco-friendly products in Kathmandu district is unknown.

Many of the previous research studies on green marketing have adopted adequate
sample size of up to 200. Thus, non-probability purposive sampling was used and a

25
sample size of 200 respondents was taken to represent the target population of
Kathmandu district. The questionnaires were actually distributed to 220 people during
the data collection process but 20 of those questionnaires were incomplete and only
completed 200 questionnaires were analyzed. It was decided as per the cost and time
factors of the research project.

The targeted sample respondents of the study consisted of customers above 20 years,
living in Kathmandu. Consumers above this age are assumed to be active shoppers
who make buying decision of the products as per the marketing tools, their ethical
concerns, their personality traits and market availability of the products etc. The data
was collected in March, 2021.

3.3 Sources and Methods of Data Collection

Primary and secondary data were collected for the research project. Secondary data
was collected through previous research articles, journals, local and international
news articles, and previous dissertations and research papers on green marketing.
Primary data was collected from the consumer survey with the help of a structured
questionnaire. Pilot testing was done to make the questionnaire more reliable and
valid.

The nature of the study is primarily a quantitative research. The method of data
collection was questionnaire survey. The data collection procedure was done by
providing the questionnaire attached in Appendix 1 to the consumers at various points
of purchase like Bhatbateni supermarkets, shopping malls, and in other areas like
several commercial and development banks, pharmacies, colleges and offices as well.
The customers were surveyed in many places of Kathmandu district like Tokha
Municipality, Kirtipur Municipality, and in many areas of Kathamandu Metroplitan
City (KMC) like Lazimpat, Baneshwar, Chakrapath, Sukedhara, Chabahil, Ratnapark,
Tripureshwar, Durbarmarg etc. Respondents were selected primarily on the basis of
their education level, occupation and age groups. This process of respondent selection
captured real customers (independent decision makers) who make purchases at an
individual and household level.

26
Additionally, two business owners and marketers of green products were interviewed
online to understand impact of green marketing towards encouraging their consumers’
green purchases.

3.4 Instrumentation

The consumer survey questionnaire has been divided into three parts. In the first part,
questions on respondents’ profile have been asked such as gender, age group,
education level, occupation, and monthly household income. Likewise, in the second
part yes/no questions, single response and multiple response questions have been
asked to determine the consumer attitudes and decision making on green marketing.

The third part comprises questions to measure the effect of independent variables on
dependent variables. This part of questionnaire contains all Likert Scale questions
with 5 scales where 1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 =
strongly agree. It measures impact of environmental concern and beliefs, green
pricing, green branding and packaging, green advertising, and eco-labels towards
consumer’s buying decision of green products, ultimately aiding in achieving the
research objectives. There are 33 questions in total for this scale which are further
divided among the aforementioned factors. Therefore, the highest score would be 165
while the lowest score would be 33.

Likewise, there were 6 open-ended questions related to green marketing for the 2
interviewees which are attached in Appendix 2.

3.5 Data Analysis Methods

For the analysis of data collected in questionnaire, different statistical techniques have
been used. Descriptive statistics has been applied to describe the data of the
questionnaire. Moreover, inferential statistical analysis has also been applied to test
the hypothesis of the study. Statistical software SPSS version 27 was used to run
different analysis like reliability tests, descriptive statistics, correlation, and multiple
regression. Similarly, Excel was used to organize the results of the various tests.

27
3.5.1 Descriptive Statistics

Descriptive statistics helps to attain the wider picture of data and also describe the
data in user friendly and more orderly manner. It describes the measures of central
tendency like mean, median, and mode along with dispersion measures such as range,
variance and standard deviation. The mean and standard deviation are the two most
common methods that are used in the analysis of data. To determine the mean and
standard deviation of all dependent and independent variables in this study,
descriptive statistics was used. To observe the average response, mean value was
measured and for checking the variability, standard deviation was used.

3.5.2 Correlation Analysis

Correlation analysis is used to evaluate the strength of relationship between variables.

It indicates how or to what extent variables are associated with each other. This study
used the Pearson’s Correlation to determine the association between variables used in
this research.

3.5.3 Regression Analysis

In regression analysis, the values of dependent variable can be predicted using values
of independent variables, resulting in a regression equation (Saunders et al., 2009). In
the linear regression model, the coefficient of determination, R2, summarizes the
proportion of variance in the dependent variable associated with the predictor
(independent) variables, with larger R2 values indicating that more of the variation is
explained by the model, to a maximum of 1. Multiple regression is an expansion of
the simple linear regression model, where two or more independent variables are used
to predict the variance in one dependent variable (Higgins, 2005).

For this study, multiple regression analysis is done with buying decision and the
different tools of green marketing. The controlled variables include the socio-
demographics, while the not controlled variables include the different tools of green
marketing with buying decision as the dependent variable. The specification of the
multiple regression equation for this study is as follows:

BDGP = + + + G + PP + +

28
Where,
BDGP = Buying decision of green products (dependent variable)
a = intercept of buying decision of green products
β coefficient = measures the effect of independent variables
EL = eco-labelling
GBP = green branding and packaging
GAD = green advertising
GPP = green premium pricing
ECB = environmental concerns and beliefs
e = error

3.6 Reliability

Mathematically, reliability is defined as the proportion of the variability in the

responses to the survey that is the result of differences in the respondents. The context
validity was established by conducting pilot test of questionnaire before using the
instrument for which 20 sets of questionnaire were distributed to respondents. It was
found that there was no problem to understand and provide the responses on items of
questionnaire. To check the reliability, effectiveness and internal consistency of the
items used in the questionnaire Cronbach's Alpha test has been conducted. The
accepted level of Cronbach's Alpha is 0.7 or above. Furthermore, correlation analysis
was also undertaken to determining the relationship between the variables. The results
of reliability analysis are reported in Table 1. All the scales have Cronbach's Alpha
coefficient greater than 0.70 indicating very good reliability. Based on the outcome of
pilot study, this research developed more confidence in questionnaire in gathering
data.

29
Table 1
Reliability Analysis of the Study
Variables No. of statements Cronbach's Alpha
Coefficients
Environmental concerns and beliefs 5 0.921
Eco-labels 5 0.945
Green branding and packaging 7 0.896
Green advertising 5 0.902
Green premium pricing 5 0.951
Buying decision of green products 6 0.937

30
 CHAPTER IV
ANALYSIS AND RESULTS

This chapter deals with analysis and interpretation of primary data collected through
questionnaire survey. The collected data are therefore presented and analyzed in
tabular form. This chapter aims to answer the research question and find out the
objectives of the study. So, it includes the descriptive statistics and test of formulated
hypothesis through the help of correlation and regression test.

4.1 Demographic Profile of Respondents

The demographic profile of respondents reveals the personal and socio-economic

characteristics of respondents like gender, age group, education level, occupation, and
monthly household income. Table 2 presents socio-demographic characteristics of
200 respondents taken as sample for the study. It is observed that percentage of
female respondents i.e. 51.5% was higher than male respondents i.e. 48.5%.
Similarly, regarding age group of respondents, the percentage of 20 to 30 age group
was highest along with 30 to 40 age group. 33.5% of respondents were under the age
group of 20 to 30 and another 33.5% belonged to age group of 31 to 40. Likewise,
20.5% belonged to age group of 41 to 51 whereas 12.5% of respondents were above
50 years. With regards to their education level, 29% had completed intermediate
level and 37.5% of respondents had completed bachelor’s degree as well as 33.5%
had completed master’s degree and above. Regarding monthly household income, 4%
of respondents belonged to Rs. 20,000 and below. 19% of respondents belonged in
range of Rs. 20,001 to Rs. 40,000 and 31% of respondents belonged in range of Rs.
40,001 to Rs. 60,000. The highest percent i.e. 46% percent of respondents belonged to
above Rs. 60,000. In the occupation side, 14.5% of respondents were students and
47.5% of respondents were employees i.e. private or government job holders. 22.5%
of respondents were entrepreneurs and 15.5% of respondents were homemakers. The
overall analysis of demographic table represents the heterogeneity of the sample taken
which helps to present the true picture of the study.

31
Table 2
Socio-demographic Profile of Respondents
Variables Frequency (N) Percentage (%)
Gender
Male 97 48.5
Female 103 51.5
Total 200 100
Age Group
20 to 30 67 33.5
31 to 40 67 33.5
41 to 50 41 20.5
51 and above 25 12.5
Total 200 100
Education Level
Intermediate level 58 29
Bachelor’s degree 75 37.5
Master’s degree or above 67 33.5
Income Level
20,000 and below 8 4
20,001 to 40,000 38 19
40,001 to 60,000 62 31
Above 60,000 92 46
Total 200 100
Occupation
Employee 95 47.5
Entrepreneurship 45 22.5
Student 29 14.5
Homemaker 31 15.5
Total 200 100

32
4.2 Descriptive Statistics

The descriptive statistics helps to describe the different variables taken for the study.
Under the descriptive statistics, mean and standard deviation (S.D.) are calculated to
describe the five independent variables along with dependent variable i.e. consumer
buying decision of green products.

4.2.1 Environmental Concerns and Beliefs

Table 3
Descriptive Statistics of Environmental Concerns and Beliefs
Items Mean S.D.
The environment is being severely damaged 3.97 .913
I as a consumer have a bigger role in protecting the environment 3.91 .881
Green products are better option for future sustainability 3.87 .984
I consider the environmental impact of my purchase when 3.35 1.059
making
many decisions
Supporting environmental protection makes me feel meaningful 3.71 1.054

Table 3 depicts the mean and standard deviation score of each five scale likert
questions regarding environmental concerns and beliefs on the level of disagreement
(1) to agreement (5). The mean score for the first statement “The environment is
being severely damaged” is 3.97 which means respondents think that the environment
is indeed being damaged. The mean score for “I as a consumer have a bigger role in
protecting the environment” is 3.91 which means that respondents fairly agree that
they have big responsibility to protect the environment. Similarly, they also consider
green products as the mean score for the third statement is 3.91. When it comes to
considering the environmental impact of their purchases, they moderately consider it
with a mean score of 3.35 and this is the lowest score for the variable environmental
beliefs. Thus, it is observed that they are not actively taking their purchases as
seriously as opposed to other environmental concerns. The mean score for
“Supporting environmental protection makes me feel meaningful” is 3.71 which
signals that majority of respondents fairly feel meaningful with their supportive
environmental acts.

33
This indicates that respondents of the study are fairly environmentally conscious as
the overall mean score for this variable is 3.7610.

4.2.2 Eco-labels

Table 4
Descriptive Statistics of Eco-labels
Items Mean S.D.
I find eco-labels easy to recognize and read 3.25 1.211
I find eco-labels very useful in choosing a product 3.42 1.183
It is easy for me to identify green products in Nepal 3.13 1.074
I look at ingredients label to see if contents are environmentally 3.42 1.136
safe
I prefer to purchase green products if they are certified by 3.61 1.142
environmental organization

Table 4 depicts the mean and standard deviation scores to each five scale likert
question regarding eco-labels on the level of disagreement to agreement. As this study
is based on urban population of Kathmandu district, it accurately demonstrates that
respondents have some knowledge of eco-labels even if the knowledge level on the
topic eco-labels is limited. They have some knowledge about ISO standards, Nepal
Standards (NS), ENERGY STAR as the first statement of eco-labels on the
questionnaire was elongated to describe what it refers to. They also moderately find
eco-labels useful when making purchases. The lowest mean score for this variable is
seen in the item “It is easy for me to identify green products in Nepal” i.e. 3.13 which
means the respondents are neutral in identifying green products in Nepal. Thus, they
have somewhat a hard time to recognize which ones are the green products. The mean
score for the fourth statement is 3.42 which means that majority of respondents are
above neutral in checking in the ingredients label. Similarly, fair share of respondents
have an inclination towards green products which are certified by environmental
organization.

The standard deviations for the items also indicate that respondents differ on their
opinions about the knowledge and effectiveness of eco-labels as some respondents

34
tend to find it easy and effective while others find it hard and consequently
ineffective.

Overall, the mean score for this variable is 3.3680 which indicates that respondents
have some sort of information and preference for eco-labels even if the knowledge on
the topic of eco-labels is mostly limited and somewhat hard to recognize.

4.2.3 Green Branding and Packaging

Table 5
Descriptive Statistics of Green Branding and Packaging
Items Mean S.D.
I find green branded products authentic 3.92 .785
Green branded products are better than non-green products 3.80 .810
I trust popular green branded products in Nepal 3.63 .738
If the brand promotes itself green, it comes in my preference 3.60 .966
list
Packaging helps me distinguish a green product 3.57 .938
It is important to reuse or recycle the packaging after use 3.73 .991
I find products with bio-degradable packaging more 3.89 1.011
appealing
than plastic packaging

As one can see in Table 5, all the items for the variable green branding and packaging
have somewhat high mean scores above 3.50. Hence, green branded products are
fairly perceived as authentic, better, reliable, and preferable than non-green products.
It is also seen that packaging is another important aspect where respondents focus on
when buying green products. The respondents find bio-degradable or recyclable
packaging more appealing than plastic packaging and slightly prefer to reuse the
packaging for various purposes. They also consider it helpful in differentiating a
green product.

Thus, the overall mean score of 3.7350 signals that respondents have fairly good
impression of green branding and packaging of products.

35
4.2.4 Green Advertising

Table 6
Descriptive Statistics of Green Advertising
Items Mean S.D.
Green advertising catches my attention 3.50 .956
I enjoy watching advertisement focusing on 3.34 .968
product’s environmental values
I trust the environmental claims in advertisements 3.19 .806
of popular Nepalese brands
I have more confidence in advertised green products 3.31 .830
than in unadvertised green ones
Attractive environmental advertisement will encourage me 3.69 .818
to buy green products

Table 6 illustrates the mean scores for all the five green advertising items.
Respondents moderately agree that green advertising catches their attention even if
they ever so slightly enjoy watching the environmental values of those
advertisements. The respondents are neutral about the statement “I trust the
environmental claims in advertisements of popular Nepalese brands” which imply
they do not trust the claims in ads of those brands for the most part. On the other
hand, they ever so slightly have more confidence in advertised green products than in
unadvertised green ones. Moreover, they moderately agree attractive environmental
advertisement encourages them to buy green products.

Overall, the respondents are moderately keen about green advertising and advertised
green products.

36
4.2.5 Green Premium Pricing

Table 7
Descriptive Statistics of Green Premium Pricing
Items Mean S.D.
When it comes to green products, pricing won’t be my major 3.10 1.201
concern
I believe a portion of the price for green products goes to a 2.95 1.016
worthy environmental cause
It is reasonable to pay a higher price for products that are 3.26 1.126
produced in an ecological way
I feel satisfied to have somewhat costly eco-friendly products 3.51 1.103
in my house
If green features in the product result to increase in price, I am 3.30 1.227
ready to pay for it

Table 7 depicts the mean and standard deviations scores of each green premium
pricing items on five point likert scale. The respondents are slightly neutral about the
statement “When it comes to green products, pricing won’t be my major concern”.
Similarly, they slightly disagree that a portion of the price for green products goes to a
worthy environmental cause indicating lack of trust about the portion of proceeds
being used for environmental cause. Moreover, the respondents ever so slightly think
that it is reasonable to pay higher for green products. Additionally, they feel
moderately satisfied about having green products in their houses. They also ever so
slightly are ready to pay the increased price caused by adding green features in the
product.

The standard deviations for green premium pricing items are also high which indicate
varied responses from different respondents according to their personal and socio-
economic characteristics.

37
4.2.6 Consumer Buying Decision of Green Products

Table 8
Descriptive Statistics for Consumer Buying Decision of Green Products
Items Mean S.D.
I often buy paper and plastic products that are made from recycled 3.07 1.070
Materials
I often buy organic foods and vegetables 3.67 1.280
I often buy energy-saving products like CFL bulbs etc. 4.09 1.046
I often buy products with bio-degradable packaging 3.37 1.154
I often buy green products even if they cost somewhat more than 3.45 1.329
non-green products
When I have a choice between two equal products, I buy the one 4.21 .940
less
harmful to the environment

Table 8 depicts mean and standard deviations scores for six items of consumer buying
decision of green products. The overall respondents’ score for the statement “I often
buy paper and plastic products that are made from recycled materials” is 3.07
indicating their neutral stance on often buying paper and plastic products made from
recycled materials. It is observed in the table that they moderately buy organic foods
and vegetables. Similarly, respondents are keen on buying energy saving products like
CFL bulbs. Moreover, they are not so enthusiastic regarding buying products with
bio-degradable packaging and buying costlier green products when compared to non-
green ones. The statement “When I have a choice between two equal products, I buy
the one less harmful to the environment” has a mean score of 4.21 which indicates
respondents are very enthusiastic on buying less harmful products which are produced
in an ecological way if those two products are fairly similar.

Overall, the respondents have fairly good tendency of buying green products in their
daily lives.

38
4.3 Correlation Matrix

Table 9
Correlation Matrix
Green Green Green
Buying Environmental Eco- Branding Green Premium
Decision Beliefs labels Packaging Advertising Pricing
**
Green Buying 1 .802 .850** .810** .633** .872**
Decision
Environmental 1 .803** .764** .620** .683**
Beliefs
Eco-labels 1 .792** .569** .766**
Green Branding 1 .672** .708**
Packaging
Green 1 .564**
Advertising
Green Premium 1
Pricing
**. Correlation is significant at the 0.01 level (2-tailed).

Table 9 demonstrates Pearson’s bivariate correlation matrix that shows statistically

significant association among independent and dependent variables. It exhibits the
level of association and direction of relationship among green premium pricing, green
advertising, environmental beliefs, green branding and packaging, and eco-labels with
dependent variable green buying decision (consumer buying decision of green
products). The correlation between green buying decision and environmental beliefs
is r = .802. It reveals that there is strong positive association between environmental
beliefs and green buying decision at the significance level of 0.01 because p-value is
less than alpha i.e. p < 0.01. The correlation between eco-labels and green buying
decision is r = .850 and p < 0.01 which show that there is statistically significant
strong positive association between them. Additionally, the correlation between green
branding and packaging and green buying decision is r = .810 which shows the strong
positive association and p < 0.01 which proves that the correlation between them is
significant. The correlation between green advertising and green buying decision is r
= .633 and p < 0.01 which show statistically significant moderate positive association
between them. Likewise, the correlation between green premium pricing and green

39
buying decision is r = .872 which shows the strong positive association and p < 0.01
which proves that the correlation between them is significant.

4.4 Multiple Regression Analysis

The multiple regression analysis test is done to examine the relationship between
independent variables i.e. green marketing tools and dependent variable i.e. consumer
buying decision of green products. In this section, an attempt has been made to test
the significant impact of green marketing tools on consumer buying decision of green
products through the help of R square, t-test, F-test, and ANOVA.

Table 10
Model Summary
Std. Error of the
Model R R Square Adjusted R Square Estimate
1 .933a .871 .868 .36284
a
Predictors: (Constant), Green Premium Pricing, Green Advertising, Environmental
Concerns and Beliefs, Green Branding and Packaging, Eco-labels

Table 10 exhibits the model summary of regression output. The value of coefficient of
determination i.e. adjusted R square of the regression model is 0.868 which means
that 86.8% variation in buying decision of green products is explained by five
explanatory variables i.e. green premium pricing, green advertising, environmental
concerns and beliefs, green branding and packaging, and eco-labels.

Table 11
ANOVAa
Sum of Squares df Mean Square F Sig.
Regression 172.608 5 34.522 262.215 .000b
Residual 25.541 194 .132
Total 198.149 199
a
Dependent Variable: Buying Decision of Green Products
b
Predictors: (Constant), Green Premium Pricing, Green Advertising, Environmental
Concerns and Beliefs, Green Branding and Packaging, Eco-labels

40
As shown in Table 11, the F-value is 262.215 and p-value is 0.000 which is less than
0.05 i.e. p-value < α which means the regression model is appropriate and the result is
reliable. Hence, the model is a good predictor of the relationship between the
dependent and independent variables. As a result, the independent variables are
significant in explaining the variance in buying decision of green products.

Table 12
Regression Coefficients a
Unstandardized Standardized
Coefficients Coefficients
B Std. Error Beta t Sig.
(Constant) -.242 .154 -1.572 .117
Environmental Concerns .202 .055 .173 3.659 .000
and Beliefs
Eco-labels .205 .051 .214 4.029 .000
Green Branding and .226 .070 .159 3.250 .001
Packaging
Green Advertising .055 .048 .041 1.137 .257
Green Premium Pricing .435 .040 .453 10.770 .000
a
Dependent Variable: Buying Decision of Green Products

Table 12 depicts regression coefficients. To analyze the regression equation,

unstandardized beta value and p-value are used. Beta value shows per unit change in
dependent variable due to per unit change in independent variable and p-value is
compared with the significant level of 0.05 for statistical test of significance.

In table 12, the effect of environmental concerns and beliefs on buying decision of
green products is examined. It shows that environmental concerns and beliefs have
positive effect on the buying decision (β = .202). Therefore, for each 1 unit increase in
environmental concerns, the green buying decision will increase by .202 units. Since,
p-value < 0.05, it can be concluded that environmental concerns and beliefs has
significant positive impact on the buying decision of green products.

41
From the results, it can be concluded that eco-labels has significant positive impact on
green buying decision (β = .205, p < 0.05). It also shows that for each 1 unit increase
in eco-labelling, the green buying decision will increase by .205 units.

The consumer perception of green branding and packaging (β = .226, p < 0.05) also
shows positive and significant effect on buying decision of green products i.e. every 1
unit increase in green branding and packaging causes .226 units increase in the green
buying decision. Green premium pricing (β = .435, p < 0.05) also has significant
positive impact on green buying decision.

On the other hand, green or environmental advertising (β = .055, p = .257) has shown
positive but statistically insignificant effect on green buying decision. Hence, it can be
concluded that green advertising has insignificant impact on buying decision of green
products.

4.4.1 Multicollinearity Test

Multicollinearity occurs when two or more independent variables are highly

correlated. The assumption for regression analysis is that there should not be
existence of multicollinearity among independent variables. Variable Inflation Factor
(VIF) can be used to detect multicollinearity, which determines strength of correlation
between independent variables. The rule of thumb is VIF exceeding 5 indicates high
multicollinearity among independent variables.

Table 13
Collinearity Statistics
Variables VIF
Environmental Concerns and Beliefs 3.373
Eco-labels 4.259
Green Branding and Packaging 3.619
Green Advertising 1.955
Green Premium Pricing 2.665

The variance inflation factor (VIF) values of this analysis ranged from 1.955 (green
advertising) to 4.259 (eco-labels), which are below the reference value of 5, indicating
that the result does not have a negative effect and there is no multicollinearity among

42
the items or predictor constructs. Therefore, each factor was statistically discrete from
the other.

4.5 Green Marketing Tools and Green Buying Decision across Moderating
(Socio-demographic) Variables

4.5.1 Green Marketing Tools and Green Buying Decision across Gender

Table 14
Results of Independent t-test across Gender
Gender N Mean t Sig. (2-tailed)
Environmental Concerns Male 97 3.71 - .486
and Beliefs .697
Female 103 3.80
Eco-labels Male 97 3.39 .313 .755
Female 103 3.34
Green Branding and Male 97 3.70 - .528
Packaging .633
Female 103 3.76
Green Advertising Male 97 3.30 - .066
1.85
Female 103 3.49
Green Premium Pricing Male 97 3.17 - .548
.602
Female 103 3.26
Buying Decision of Male 97 3.63 - .927
Green Products .092
Female 103 3.65

Table 14 includes a summary of all independent t-test for all of the variables. The
Levene’s Test for equal variance specifies that there is not enough evidence to reject
the assumption of equal variances, hence, equal variances can be assumed.

The result of the independent t-test states that there is insufficient evidence that
perception of male participants (Mean = 3.71, n = 97) and female participants (Mean

43
= 3.80, n = 103) is different (t = -.697, p = .486) regarding environmental concerns
and beliefs. It also shows that there is no statistical significant difference of perception
of eco-labels among female and male participants with mean ranks of 3.34 and 3.39
respectively (p = .755).

Similarly, the independent t-test demonstrates that there is no statistical significance

in difference of perception among female and male participants regarding green
branding and packaging (p = .528), green advertising (p = .066), and green premium
pricing (p = .927). The independent t-test also states that there is insufficient evidence
that buying decision of green products of male participants (Mean = 3.63, n = 97) and
female participants (Mean = 3.65, n = 103) is different (t = -.092, p = .927).

4.5.2 Green Marketing Tools and Green Buying Decision across Age Group

Table 15
Results of ANOVA across Age Group
Variables N Mean F Sig.
Environmental Concerns 20-30 67 3.69 1.556 .201
and Beliefs 31-40 67 3.65
41-50 41 3.88
Above 50 25 4.02
Total 200 3.76
Eco-labels 20-30 67 3.25 2.299 .079
31-40 67 3.22
41-50 41 3.56
Above 50 25 3.74
Total 200 3.36
Green Branding and 20-30 67 3.62 1.558 .201
Packaging 31-40 67 3.70
41-50 41 3.88
Above 50 25 3.87
Total 200 3.73
Green Advertising 20-30 67 3.27 1.814 .146
31-40 67 3.38
41-50 41 3.49

44
 Above 50 25 3.64
Total 200 3.40
Green Premium Pricing 20-30 67 2.99 3.773 .012
31-40 67 3.13
41-50 41 3.44
Above 50 25 3.70
Total 200 3.22
Buying Decision of Green 20-30 67 3.31 6.037 .001
Products 31-40 67 3.63
41-50 41 3.87
Above 50 25 4.18
Total 200 3.64

Based on the ANOVA results (F = 1.556, p = .201) from Table 15, it can be observed
that there are no significant differences on environmental concerns and beliefs
between age groups 20-30 (Mean = 3.69), 31-40 (Mean =3.65), 41-50 (Mean = 3.88),
and above 50 (Mean = 4.02).

The ANOVA test (F = 2.299, p = .079) from Table 8, shows that there is no statistical
significant difference between the participants of different age groups, 20-30 (Mean =
3.25), 31-40 (Mean = 3.22) and 41-50 (Mean = 3.56) and above 50 (Mean = 3.74)
regarding eco-labels.

Based on the ANOVA results from Table 15, it can be observed that there are no
significant differences on green branding and packaging (p = .201) among age groups
20-30, 31-40, 41-50, and above 50.

The ANOVA test (p = .146) from Table 15, shows that there is no statistical
significant difference regarding effectiveness of green advertising among age groups
20-30, 31-40, 41-50, and above 50.

From the ANOVA results, (p = .012) it can be observed that there is a statistical
significance in difference of perception of green premium pricing between the
participants of different age groups.

45
The ANOVA test (F = 6.037, p = .001) illustrates that there is a statistical significant
difference in buying decision of green products among age groups 20-30, 31-40, 41-
50, and above 50.

4.5.3 Green Marketing Tools and Green Buying Decision across Education Level

Table 16
Results of ANOVA across Education Level
Variables N Mean F Sig.
Environmental Concerns Intermediate 58 3.37 13.39 .000
and Beliefs Bachelor's Degree 75 3.74
Master's Degree 67 4.11
Total 200 3.76
Eco-labels Intermediate 58 2.61 32.46 .000
Bachelor's Degree 75 3.47
Master's Degree 67 3.90
Total 200 3.36
Green Branding and Intermediate 58 3.31 19.84 .000
Packaging Bachelor's Degree 75 3.80
Master's Degree 67 4.02
Total 200 3.73
Green Advertising Intermediate 58 3.23 2.31 .101
Bachelor's Degree 75 3.44
Master's Degree 67 3.51
Total 200 3.40
Green Premium Pricing Intermediate 58 2.63 23.67 .000
Bachelor's Degree 75 3.17
Master's Degree 67 3.78
Total 200 3.22
Buying Decision of Green Intermediate 58 3.04 23.67 .000
Products Bachelor's Degree 75 3.65
Master's Degree 67 4.15
Total 200 3.64

46
Based on the ANOVA results (F = 23.67, p = .000) from Table 16, it can be observed
that there is a significant difference in buying decision of green products between
education level of participants, Intermediate (Mean = 3.04), Bachelors (Mean = 3.65)
and Masters (Mean = 4.15).

The ANOVA test suggests that there is a statistical significance in difference

regarding environmental concerns and beliefs (p = .000) among the participants of
different education levels, Intermediate (Mean = 3.37), Bachelors (Mean = 3.74) and
Masters (Mean = 4.11).

Based on the ANOVA results (p = .000), it can be observed that there is a significant
difference in perception of eco-labels among the participants of different education
levels.

The ANOVA test suggests that there is a statistical significance in difference

regarding green branding and packaging (p = .000) among the participants of different
education levels.

Based on the ANOVA results (p = .000), it can be observed that there is a significant
difference regarding green premium pricing among the participants of different
education levels.

Based on the ANOVA results (p = .101), it can be observed that there are no
significant differences in perception of green advertising among the participants of
different education levels.

47
4.5.4 Green Marketing Tools and Green Buying Decision across Monthly
Household Income

Table 17
Results of ANOVA across Monthly Household Income
Variables N Mean F Sig.
Environmental Below 20,000 8 2.97 17.03 .000
Concerns and 20,001- 38 3.08
Beliefs 40,000
40,001- 62 3.86
60,000
Above 60,000 92 4.03
Total 200 3.76
Eco-labels Below 20,000 8 1.85 30.10 .000
20,001- 38 2.51
40,000
40,001- 62 3.36
60,000
Above 60,000 92 3.85
Total 200 3.36
Green Branding and Below 20,000 8 3.05 28.44 .000
Packaging 20,001- 38 3.08
40,000
40,001- 62 3.73
60,000
Above 60,000 92 4.06
Total 200 3.73
Green Advertising Below 20,000 8 2.95 11.90 .000
20,001- 38 2.86
40,000
40,001- 62 3.50
60,000
Above 60,000 92 3.60
Total 200 3.40

48
Green Premium Below 20,000 8 1.40 42.81 .000
Pricing 20,001- 38 2.34
40,000
40,001- 62 3.16
60,000
Above 60,000 92 3.78
Total 200 3.22
Buying Decision of Below 20,000 8 1.89 41.56 .000
Green Products 20,001- 38 2.78
40,000
40,001- 62 3.63
60,000
Above 60,000 92 4.15
Total 200 3.64

Based on the ANOVA results (F = 41.56, p = .000), it can be concluded that there is a
significant difference in buying decision of green products among respondents having
different monthly household incomes, below 20,000 (Mean = 1.89), 20,001-40,000
(Mean = 2.78), 40,001-60,000 (Mean = 3.63) and above 60,000 (Mean = 4.15).

The ANOVA test (F = 17.03, p = .000), suggests that there is a statistical significance
in difference regarding environmental concerns and beliefs among respondents having
different monthly household incomes, below 20,000 (Mean = 2.97), 20,001-40,000
(Mean =3.08), 40,001-60,000 (Mean = 3.86), and above 60,000 (Mean = 4.03).

Based on the ANOVA results (p = .000), it can be observed that there is a significant
difference in perception of eco-labels among the participants having different monthly
household incomes.

The ANOVA test (p = .000) suggests that there is a statistical significance in

difference regarding green branding and packaging among the participants having
different monthly household incomes.

From the ANOVA results (p = .000), it can be concluded that that there is a
significant difference in effectiveness of green advertising among the participants
having different monthly household incomes.
49
Based on the ANOVA results (F = 42.81, p = .000), it can be observed that there is a
statistical significant difference in perception of green premium pricing among the
respondents having different monthly household incomes, below 20,000 (Mean =
1.40), 20,001-40,000, (Mean = 2.34), 40,001-60,000 (Mean = 3.16), and above 60,000
(Mean = 3.78).

4.6 Other Findings of the Study

Table 18
General Questions
Questions Yes No
Would you consider yourself an environmental enthusiast? 40% 60%
Attracted to buy products from company that cares for 71.5% 28.5%
environment?
Do you prefer green products over non-green products? 85.5% 14.5%

Table 18 shows the percentages of respondents who answered yes or no for three
questions. The questions were asked to gauge the general sentiments of the
respondents regarding green products. 40% of respondents were somewhat
environmental enthusiasts while the rest 60% were not environmental enthusiasts.
Moreover, 71.5% of respondents were attracted to buy products from environmentally
responsible companies whereas the other 28.5% of respondents did not care about
buying from environmentally responsible companies. Additionally, 85.5% of
respondents preferred green or eco-friendly products whereas the other 14.5% did not
prefer green products over non-green products.

Table 19
Green Marketing Element that Influences Consumers’ Green Purchase Decision
Marketing Elements N %
Certification/labels on the product 57 28.5%
Packaging 28 14.0%
Product advertisement 28 14.0%
Brand image 49 24.5%
Product price 38 19.0%

50
Table 19 depicts the percentages of green marketing elements which influence
respondents’ purchase decision of green products. It can be observed that
certification/labels on the products was the biggest influencer of buying decision of
green products with 28.5% of respondents selecting it. Brand image came second and
product price came third with 24.5% and 19% of respondents selecting these
marketing elements respectively. Product advertisement came last with only 14% of
respondents selecting this marketing element along with packaging which also was
selected by other 14% of participants.

Table 20
Categories in which Respondents Prefer to Buy Green Products

Category N Percent of Cases

Food Product 170 85.4%
Electronics 51 25.6%
Cosmetics 73 36.7%
Automobile 63 31.7%
Others 64 32.2%

Table 20 depicts the multiple choice/response question “In which of the categories, do
you prefer to buy green/eco-friendly products?” with five options. From Table 20, it is
observed that highest number of respondents (N = 170) i.e. 85.4% prefer to buy green
food products. Similarly, 36.7%, 31.75%, and 25.6% of respondents prefer to buy
green or eco-friendly products in cosmetics, automobile and electronics categories
respectively. Likewise, 64 respondents i.e. 32.2% of respondents prefer to buy green
product in other varied categories.

51
4.7 Summary of Hypothesis Testing

The results of hypothesis of the study listed in chapter 1 are listed as follows.

Table 21
Result of Hypothesis Tests
S.N. Hypothesis Result Impact
H1 Environmental concern and belief has a significant Accepted Positive
impact on consumer buying decision of green products.
H2 Eco-labels has a significant impact on consumer buying Accepted Positive
decision of green products.
H3 Green branding and packaging has a significant impact Accepted Positive
on consumer buying decision of green products.
H4 Green advertising has a significant impact on consumer Rejected -
buying decision of green products.
H5 Green premium pricing has a significant impact on Accepted Positive
consumer buying decision of green products

Table 21 exhibits the result of hypothesis testing. The findings are summarized as
follows:

i. Hypothesis H1 was accepted. The impact of environmental concern and belief

on green buying decision is found statistically significant among the
consumers of Kathmandu district. Since beta coefficient is positive, it can be
concluded that environmental belief has a significant positive impact on green
buying decision.
ii. Hypothesis H2 was accepted. The impact of eco-labels on green buying
decision is found statistically significant among the consumers. Since beta
coefficient is positive, it can be concluded that eco-labels has a significant
positive impact on green buying decision.
iii. Hypothesis H3 was accepted. The impact of green branding and packaging on
green buying decision is found statistically significant among the consumers.
Since beta coefficient is positive, it can be concluded that green branding and
packaging has a significant positive impact on green buying decision.

52
 iv. Hypothesis H4 was rejected. The impact of green advertising on green buying
decision is found statistically insignificant among the consumers of
Kathmandu district. The beta coefficient is positive but p-value is greater than
0.05. Thus, it can be concluded that green advertising has no significant
impact on consumer buying decision of green products.
v. Hypothesis H5 was accepted. The impact of green premium pricing on green
buying decision is found statistically significant among the consumers. Since
beta coefficient is positive, it can be concluded that green premium pricing has
a significant positive impact on green buying decision.

4.8 Summary of Buying Decision of Green Products across Moderating (Socio-

demographic) Variables

Table 22
Results of Buying Decision of Green Products across Moderating (Socio-
demographic Variables)
Variables Remarks Results
Gender Male and Female have There are no significant differences between
similar green products male and female participants regarding buying
buying decisions. decision of green products.
Age 20-30 make lowest There is a statistically significant difference
Group green purchases while between age groups, 20-30, 31-40, 41-50, and
Above 50 make highest above 50 regarding green purchases.
green purchases
Education Intermediates – Lowest There is a statistically significant difference in
Level green purchases and green purchases among participants of
Masters Level – Highest Intermediate, Bachelors and Masters Level.
green purchases
Monthly Below 20,000 - Lowest There is a statistically significant difference in
Household green purchases and buying decision of green products among
Income Above 60,000 – Highest participants having below 20,000, 20,001-
green purchases 40,000, 40,001-60,000, and above 60,000
monthly incomes.

53
4.9 Impact of Green Marketing on Consumers according to Interviewed
Marketers

In order to examine the impact of green marketing on consumers according to the

sellers’ perspectives, 2 business owners and marketers of green products were
interviewed: Kajol Sethia of Vegan Diary Nepal and Ojaswi Baidya of Tyre
Treasures.

Firstly, the characteristics of the interviewed business owners (marketers) will be

shortly described in order to understand the backgrounds of the interviewed persons.
Both of the interviewees are female, and they belong to 20-30 and 30-40 age groups
respectively. Both of them have master’s degrees. Both marketers of green products
are working in Kathmandu. Interviewees are highly educated and successful in their
respective fields.

Since impact of green marketing on consumer buying decision of green products in

Kathmandu district is the main topic of this research, it is analyzed through related
questions. This research study focuses especially at how the interviewed marketers
observe impact of green marketing on green buying decision of consumers.

Marketers were asked who purchased their green products in Kathmandu and what
consumers thought about their green products. Their responses include:

“Generally, the health-conscious adults from 30 to 60 age groups (especially

people from 40 to 55 years of age) and sometimes environmental enthusiasts
are the consumers of our vegan products and they hold good opinions about
these items and state their beneficial effects upon their lives.”
(Kajol Sethia)

“Primarily, costumers buy our products for their homes and offices and they
are above 30 years of age, well-educated, and environmentally conscious
individuals. They are attracted to our up-cycled designs and provide positive
feedback after using our products.”
(Ojaswi Baidya)

54
It is observed that the responses from marketers coincide with findings of the research
survey where majority of green purchases came from people who were
environmentally conscious individuals above 40 years of age and had at least
bachelor’s degrees.

4.9.1 Impact of Environmental Concern and Beliefs

The second question was related to the impact of consumers’ environmental concern
and beliefs on their purchases and the responses of marketers are as follows.

“I have seen personal health related concerns drive their purchases along
with their environmental beliefs. And, environmental enthusiasts and workers
from NGOs also frequently purchase our products.”
(Kajol Sethia)

“Customers are driven by their environmental concerns and beliefs to buy our
products and they feel meaningful and responsible after buying them. In fact,
we provide letter of appreciation for the consumers who purchase 100 kg
weighted up cycled tyres.”
(Ojaswi Baidya)

These responses are similar to the survey findings where environmental concerns and
belief of consumers had positively driven their green purchases and it can be seen that
mainly health-conscious customers consume green vegan products.

4.9.2 Impact of Eco-labels

The third question was about the impact of eco-labels on their consumers’ buying
decision and their responses include:

“My company has received ISO, FSSAI and US FDA certifications and labels
in many products but consumers do not give much attention to those labels
and do not base their decisions on the labels.”
(Kajol Sethia)

55
 “Our enterprise has been trying for certifications for products but the absence
of those has not affected costumers’ purchases at all. Majority of costumers
also don’t seek the labels.”
(Ojaswi Baidya)

These findings are in contrast to the findings of consumer survey as eco-labels had
significant positive impact on purchase decisions but the interviewed marketers state
that generally costumers are indifferent to eco-labels.

4.9.3 Impact of Green Branding and Packaging

The fourth question was related to the influence of their green branding and
packaging activities on consumers’ buying decisions. Their answers are as follows.

“Our green branding strategies like marketing our products as plant-based

diary alternatives have attracted many consumers and we plan to adopt
recyclable packaging in future to attract more consumers.”
(Kajol Sethia)

“We collaborate with other green companies in events for branding purposes
which has resulted in significant increase in customers and sales and we are
working on logistics to implement biodegradable packaging in upcoming days
to target environmentally conscious costumers.”
(Ojaswi Baidya)

The marketers also state that their green branding and packaging strategies have
attracted many new costumers and resulted in much more green purchases by the
consumers. The result of the consumer survey also states that green branding and
packaging have significant positive impact on green purchases.

4.9.4 Impact of Green Advertising

The fifth question was about the impact of their green advertising activities towards
attracting consumers to buy their green products. Their responses include:

“We practice niche green advertising through social media and some outdoor
advertising and these activities have resulted in influx of customers. Health-

56
 concerned consumers get motivated to buy vegan products through our social
media ads.”
(Kajol Sethia)

“Our green advertising activities are currently limited to social media only
and customers are attracted to buy upcycled furniture through our online
posts about those décor items and we get new customers from such ads.”
(Ojaswi Baidya)

Contrary to the result of consumer survey, the interviewed marketers state that their
niche green advertising on online social media have majorly influenced consumers to
purchase their products. On the other hand, the results of survey state that green
advertising does not have significant impact on consumer buying decision of green
products.

4.9.5 Impact of Premium Green Pricing

Marketers were asked what the impact of premium green pricing was on their
costumers’ green purchases and their responses include:

“Those customers who really are intending to buy our vegan products are
satisfied with the premium pricing that we charge because of the costly
ingredients and thus it has not fazed away any potential consumers at all.”
(Kajol Sethia)

“Our sustainable business of green products cannot run without charging

reasonable premium pricing and most of our consumers are well-educated
who buy the products happily. So, this has been the correct course for our
company”
(Ojaswi Baidya)

These results from the marketers coincide with the results from the consumer survey
where green premium pricing positively impacted the buying decision of green
products.

57
4.10 Major Findings of the Study

i. Consumers who were above 40 years of age, had Masters’ degrees, and whose
household income was above 60,000 were the ones who make most green
purchases.
ii. 40% of respondents were somewhat environmental enthusiasts while the rest
60% were not environmental enthusiasts from sample size of 200.
iii. 71.5% of respondents were attracted to buy products from environmentally
responsible companies whereas the other 28.5% of respondents did not care
about buying from environmentally responsible companies.
iv. 85.5% of respondents preferred green or eco-friendly products whereas the
other 14.5% did not prefer green products over non-green products.
v. 85.4% of consumers prefer to buy green food products from sample size of
200 and food products are the most preferred green product category by
consumers.
vi. 36.7%, 31.75%, and 25.6% of respondents preferred to buy green or eco-
friendly products in cosmetics, automobile and electronics categories
respectively. Likewise, 32.2% of respondents preferred to buy green product
in other varied categories.
vii. From the consumer survey, it is found that environmental concern and beliefs
has significant positive impact on green buying decision among the consumers
of Kathmandu district.
viii. Eco-labels had significant positive impact on green buying decision of
consumers of Kathmandu district.
ix. Green branding and packaging has a significant positive impact on buying
decision of green products.
x. From the consumer survey, it is found that green advertising has no significant
impact on consumer buying decision of green products.
vi. Green premium pricing has a significant positive impact on green buying
decision.
vii. There are no significant differences between male and female participants
regarding buying decision of green products.
viii. 20-30 age group make lowest green purchases while above 50 make highest
green purchases.

58
ix. Consumers who have only passed intermediate level make lowest green
purchases while consumers having master’s degrees make highest green
purchases
x. There is a statistically significant difference in buying decision of green
products among participants having below 20,000, 20,001-40,000, 40,001-
60,000, and above 60,000 monthly incomes. Consumers having below 20,000
monthly household incomes make lowest green purchases and consumers
having above 60,000 monthly household incomes make highest green
purchases.
xi. The interviewed marketers stated that environmental concerns and beliefs,
green branding and packaging, green advertising, and green premium pricing
positively impacted consumers’ buying decision of their products, whereas,
marketers stated that consumers were indifferent towards eco-labels or
certifications of their products.

59
 CHAPTER V
DISCUSSION, CONCLUSION AND IMPLICATION

This chapter includes the major discussions of findings of the study in order to reach
conclusion. This chapter has been divided into three segments. The first segment deals
with discussion which involves comparison of the findings with different related
literatures. Similarly, the conclusion is drawn in second segment from result obtained
from data analysis where third segment deals with theoretical and practical
implications.

5.1 Discussion

The general objective of the study is to examine the effects of green marketing tools
along with consumers’ environmental concerns and beliefs on their buying decision of
green products. A number of formulated hypotheses were tested to examine the
effects as a result of which different findings have been observed. The results showed
that environmental concerns and beliefs, eco-labels, green branding and packaging,
and green premium pricing have significant impact on green buying decision.
Likewise, green advertising has insignificant impact on green buying decision.

Supporting the corresponding hypothesis, the result revealed that environmental

concerns and belief has significant positive impact on buying decision of green
products. This result indicates that individual’s progressive concerns and beliefs
towards the environment will increase his/her green buying decision. The finding is
parallel with the findings of Bamberg (2003), Kim and Choi (2005), and Juwaheer et
al. (2012). The previous literatures established empirical evidences that individuals’
affirmative attitudes towards supporting the protection of the environment and
mankind influences their purchasing habits and they primarily prefer green or eco-
friendly products. But, this result is in contrast to the results observed by Coddington
(1990) and Podvorica and Ukaj (2020) who concluded that those consumers who are
more conscious towards the environment do not necessarily base their purchases
around eco-friendly products.

Regarding eco-labels, the study found that eco-labels has significant positive impact
on buying decision of green products indicating that ISO or Nepal Standard (NS) etc.

60
certified green products will increase the purchase of green products by consumers in
Kathmandu district. This result is consistent with the result of Brécard (2017),
Juwaheer et al. (2012), and Gallastegui (2002) as they also found that providing
information about the environmental outcomes through eco-labels affects consumers’
product preference. Moreover, Thogerson (2000) observed that eco-labels have to be
understood, trusted and valued as a tool to be impactful in decision making which is
also parallel with the findings of the study as the items under eco-labels which are “I
find eco-labels easy to recognize and read”, “I find eco-labels very useful in choosing
a product”, “I prefer to purchase green products if they are certified by environmental
organization” received similar responses by the participants. Therefore, it was found
that the respondents who recognized the eco-labels also found those to be useful and
preferable while choosing products and vice-versa.

Likewise, true to the hypothesis, this research study found that green branding and
packaging has significant impact in consumers’ buying decision of green products.
This finding is in line with that of Juwaheer et al. (2012), Huang et al. (2014), and
Yang and Zhao (2019). This finding means that if companies brand themselves
“green” through positioning strategies and make their packaging sustainable and
recyclable, then there would be increase in the purchase and consumption of green
products from those companies. Green impression of the brands could truly drive the
consumers’ green buying decision.

Moreover, green premium pricing also has a significant positive influence on green
buying decision. This is consistent with the results of Juwaheer (2012) and Rahbar
and Wahid (2011). Since it was found in the study that consumers whose monthly
household incomes were above 60,000, had the most buying decisions and purchased
green products. Thus, it can be observed that those consumers who had positive
attitudes towards green premium pricing were eager to purchase organic and
sustainable products.

This research study also found that green advertising had no significant impact on
buying decision of green products. This is in contrast to the findings of Juwaheer et al.
(2012) and See and Mansori (2012). On the other hand, this result in consistent with
the findings of Leonidou et al. (2014) and Podvorica and Ukaj (2020), who concluded
that due to misleading advertising, consumers had doubts over the authenticity of

61
environmental claims and thus those advertisements did not influence purchase
decisions.

Furthermore, this study revealed that there are no significant differences between
male and female participants regarding buying decision of green products which is
similar to the findings of Gilg et al. (2005), Chen and Chai (2010), and Zhu et al.
(2013).

This research also observed that the older the respondents were, the more purchasers
of green products could be seen, and the younger they were, the more non-purchasers.
This finding is parallel to the finding of Do Paco and Raposo (2009).

This study also concluded that highly educated people i.e. people with bachelor’s
degree and especially master’s degree are more likely to choose green goods as
people with low ecological awareness are much less likely to purchase green products
than consumers who more informed about the environmental problems. Chan (2000)
and Diamantopoulos et al. (2003) observed similar results for China and the UK
respectively.

Additionally, the study also found that as the monthly incomes went higher, the green
purchases also kept on increasing which is similar to the findings of Zhu et al. (2013)
and Zhao et al. (2014).

5.2 Conclusion

After completing the research and knowing these research outcomes, it can be said
that residents of Kathmandu district are no exception – the mature adults and educated
consumers are interested in buying green products, and they support green or
environmental marketing. The current research aimed to explore the urban
consumers’ purchase decisions of green products and the present scenario of green
marketing in Nepal. Moreover, it also investigated the emerging factors which are
affecting urban consumers’ purchase decisions regarding eco-friendly products.

Consumers in Kathmandu district are encouraged by green branding and packaging,

eco-labels and rational green pricing activities to make green purchase decisions
while green advertising is not necessarily prioritized by the consumers when they are

62
making green purchases. Thus, manufacturers and marketers of green products should
adopt dynamic green branding and packaging strategies and make provisions for
certifications of their green products from concerned authorities to attract conscious
and educated consumers who intend to purchase green or eco-friendly products.

The study also found that consumers who care about sustainable environment or
environment enthusiasts evaluate brands by their green product concept and select
those products with positive impact on the environment. Thus, consumers need to be
made more aware of the benefits of green marketing on environmental sustainability
as they have the ability to decide to buy eco-friendly products through green
marketing program.

The buying decision of green products varied across age groups, education levels, and
monthly household incomes. Men and women had similar green buying decisions.
Thus, green brands or companies should target educated men and women through
appropriate campaigns and media for their sustainable products.

Food products and energy saving products were the most in-demand green products
which were bought by varied consumers from different demographics. Hence, there is
immense opportunity for the manufacturers and the new entrepreneurs to venture into
these green product categories.

Furthermore, the interviews with marketers also strengthened the need for effective
green branding and packaging, green pricing, and increasing consumers’
environmental concerns and beliefs activities to encourage green buying decisions
from the consumers. For startup green companies, niche green advertising on social
media can attract potential consumers.

5.3 Implications

The findings of this research has various implications for consumers, producers,
government concerned organizations, future researchers and the general public. There
is increasing trend of using organic or green food products, energy saving products
like various appliances and green clothing in Kathmandu district. Decorative items
made from recycled materials are also becoming mainstream in the district. These
days, the women of this district prefer organic cosmetics and skincare products. These

63
trends are slowly increasing which indicate positive steps for green marketed
companies/brands as well as the environment and the wellbeing of the consumers.

For Green Manufacturers and Marketers

It is essential for the manufacturing companies and brands to observe that many urban
consumers in the district prefer the products having good brand image as well as
certifications/eco-labels like ISO Standards, Nepal Standards, and ENERGY STAR
etc. Therefore, green branding and packaging should also be prioritized by the
corporates and brands. Likewise, as the consumers are starting to become aware and
conscious about the green certifications or labels and ingredients list, the corporates
should be transparent and not make green washed products but authentic green
marketed products instead. This can come up with some cost but it can also be
somewhat attached to green pricing of the product as it has been observed that
consumers who are buying green products are above 30 years of age and they are
financially sound.

For the general public, it is imperative to spread knowledge about green products
through green branding and packaging strategies and certain misconceptions about
those products should be cleared through certifications. The green brand image of the
product was major influencer that encouraged consumers to purchase green products.
Therefore, products should be manufactured and processed in ecological and
sustainable ways and green attributes of the products should be displayed in the
packaging, labels, and ingredients list. These techniques can make differences in the
buying decisions and consumption of green products.

For Regulatory Institutions

Additionally, the concerned government institutions should inspect the green

advertised products and claims in their advertisements as the majority of the
consumers in this research study did not believe that those claims at all. This would
result in consumers regaining the trust on the advertised green products and being
encouraged to try the sustainable green products.

64
For Future Researchers

This research study is also relevant to future researchers because there are just few
research works conducted in the field of green marketing in Nepal. This study serves
as the reference to future research where some green marketing tools which are
significant today may be changed and new models of green marketing may emerge.
Likewise, some socio-demographic moderating or variables may turn significant or
insignificant in the future study. The future researchers through the help of this study
can measure the change from now and then in the future in buying decision of green
products through green marketing tools. Furthermore, this research study is limited to
green products and the future researchers can explore green costumer services like
green hotel service and green banking services.

65
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 APPENDIX 1
Questionnaire on Impact of Green Marketing Tools on Consumer Buying
Decision of Green Products in Kathmandu District.
Dear respondent,
I am Kirti Panthi, an MBA student from School of Management, Tribhuvan
University. I am conducting a research on “Impact of Green Marketing Tools on
Consumer Buying Decision of Green Products in Kathmandu District” as subject to
graduate research project under Tribhuvan University. The information collected
below is purely for academic purposes and your responses and inputs will be kept
confidential at all times. It will only take up to 10 minutes to complete this
questionnaire.
Section I:
1. Gender: Male (97) Female (103)
Please tick one of each criteria group
2. Age 3. Education 4. Monthly Household 5. Occupation
group Income
20 - 30 1. Intermediate 1. Below 20,000 1. Employee
(67) Level (8) (95)
31 - 40 (58)
(67) 2. 20,001-40,000 2. Entrepreneurship
2. Bachelor’s (38) (45)
41 - 50 degree
(41) (75) 3. 40,001-60,000 3. Student
(62) (29)
Above 51
(25) 3. Master’s 4. Above 60,000 4. Housewife
degree (92) (31)
and above
(67)

Section II:
6. Would you consider yourself an environmental enthusiast?
a. Yes (80) b. No (120)

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7. Are you attracted to buy products from a company that cares for environment?
a. Yes (143) b. No (57)
8. Do you prefer eco-friendly/green products over non eco-friendly/non green
products?
a. Yes (171) b. No (29)

9. What is the main marketing element that strongly influences your purchase
decision of green/eco-friendly products? (tick only one)

a. Certification/labels on the product (57)

b. Packaging (28)

c. Product advertisement (28)

d. Brand image (49)

e. Product price (38)

10. In which of the following product categories, do you prefer to buy

green/environment friendly products? (tick all that apply, multiple choice)

a. Food product (170)

b. Electronic Appliances (51)

c. Cosmetics (73)

d. Automobile(Vehicles) (63)

e. Others (64)

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Section III:
For the following statements indicate your level of agreement.
(Strongly Disagree, Disagree, Neutral, Agree, Strongly Agree)
Environmental Concern and Strongly Disagree Neutral Agree Strongly
Beliefs Disagree Agree

The environment is being 1 17 29 93 60

severely damaged.
I as a consumer have a bigger 1 13 42 91 53
role in protecting the
environment.
Green/Eco friendly products are 2 19 42 77 60
better option for future
sustainability.
I consider the environmental 7 41 55 70 27
impact of my purchase when
making many decisions.
Supporting environmental 4 29 37 81 49
protection makes me feel
meaningful.
Eco-Labels
(Certifications/Symbols on the
Product)
I find labels/certifications (such 18 44 36 73 29
as ISO Standards, Nepal
Standards (NS) Mark, and
ENERGY STAR) easy to
recognize and read.
I find eco-labels/certifications 14 36 39 74 37
very useful in choosing a
product.
It is easy for me to identify eco- 14 45 57 68 16
friendly products in Nepal.

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I look at the ingredients label in 13 32 46 76 33
the product to see if contents are
environmentally safe.
I prefer to purchase green/eco- 9 31 37 75 48
friendly products if they are
certified by environmental
organization.
Green Branding and
Packaging
I find green branded products 0 11 37 109 43
authentic.
Green branded products are 0 10 60 91 39
better than non-green products.
I trust popular eco- 1 14 56 115 14
friendly/green branded products
in Nepal.
If the brand promotes itself 1 31 49 84 35
green, it will come in my
preference list.
Packaging helps me distinguish 4 24 53 92 27
a green product.
It is important to reuse or 3 22 48 80 47
recycle the packaging after use.
I find products with bio- 3 22 30 84 61
degradable/eco-friendly
packaging more appealing than
plastic packaging.
Green Advertising
Green/Environmental 3 33 50 90 24
advertising catches my attention.
I enjoy watching advertisement 5 38 60 79 18
focusing on product’s
environmental values.

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I trust the environmental claims 3 35 87 70 5
in advertisements of popular
Nepalese brands.
I have more confidence in 3 27 85 74 11
advertised green products than
in unadvertised green products.
Attractive environmental 1 15 57 100 27
advertisement will encourage
me to buy green products.
Green Premium Pricing
When it comes to green 21 50 40 67 22
products, pricing will not be my
major concern.
I believe a portion of the price 18 46 72 56 8
for green products goes to a
worthy environmental cause.
I think it is reasonable to pay a 14 42 45 76 23
higher price for products that are
produced in an ecological way.
I feel satisfied to have somewhat 11 26 49 77 37
costly eco-friendly products in
my house.
If green features in the product 21 35 39 74 31
result to increase in price, I am
ready to pay for it.
Buying Decision of Green/Eco-
friendly Products
I often buy paper and plastic 11 58 52 63 16
products that are made from
recycled materials.
I often buy organic foods and 11 39 24 57 69
vegetables.
I often buy energy-saving 4 16 29 61 90

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products like CFL bulbs etc.
I often buy products with bio- 11 39 51 62 37
degradable or recyclable
packaging.
I often buy green products even 16 44 34 47 59
if they cost somewhat more than
the non-green products.
When I have a choice between 1 10 35 53 101
two equal products, I buy the
one less harmful to the
environment.

Thank you for completing the questionnaire. Please check if you have missed or
wrongly answered any question.

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 APPENDIX 2

Interview Questions:
i. Who are the target consumers for your green products and what do they think
about the products?
ii. What is the impact of environmental concerns and beliefs on consumers’
buying decision of your green products?
iii. What is the impact of green branding and packaging on consumers’ buying
decision of your green products?
iv. What is the impact of eco-labels or certifications on consumers’ buying
decision of your green products?
v. What is the impact of green advertising on consumers’ buying decision of
your green products?
vi. What is the impact of green premium pricing on consumers’ buying decision
of your green products?

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