Ivestigation of Green Consumer Profile: A Case of Lithuanian Market of Eco-Friendly Food Products
Ivestigation of Green Consumer Profile: A Case of Lithuanian Market of Eco-Friendly Food Products
Ivestigation of Green Consumer Profile: A Case of Lithuanian Market of Eco-Friendly Food Products
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IVESTIGATION OF GREEN CONSUMER PROFILE: A CASE OF LITHUANIAN MARKET OF ECO-FRIENDLY FOOD PRODUCTS
Jrat Banyt1, Lina Brazionien2, Agn Gadeikien3
2
Kaunas University of Technology, Lithuania, [email protected] Kaunas University of Technology, Lithuania, [email protected] 3 Kaunas University of Technology, Lithuania, [email protected]
Abstract
Nowadays, sustainable development, i.e. a compromise between environmental, economical, and social objectives of society, is inevitably essential in order to reach the well-being of present and future generations. In this context the change in consumption tendency has been observed recently. It is characterized by the increase in consumers environmental awareness, increased interest in eco-friendly, safe and clean products that do not pollute the environment. In terms of marketing, such changes determine the need to know the new, so called green, consumer and to adapt marketing solutions with the focus on ascertaining the expectations and satisfying the needs of such a consumer. Thus, this article presents the interpretation of the conception of a green consumer based on the investigations of both foreign and Lithuanian scientific works. When describing a green consumer, its profile is generalized in the article. It encompasses both demographic and psychographic-behavioural characteristics of a consumer. The article introduces the findings of empirical research into the demographic and psychographic-behavioural profiles of female consumers of eco-friendly food products in Lithuania. Keywords: green marketing, green consumer profile, Lithuanian market of eco-friendly food products.
Introduction
Changing consumer attitudes towards environmental consideration, eco-friendliness, and social responsibility are identified, observing tendencies of changes in the contemporary environment (Memery, Megicks & Williams, 2005; DSouza, Taghian & Lamb, 2006). Nowadays, sustainable development, i.e. a compromise between environmental, economical, and social objectives of society, is inevitably essential in order to reach the well-being of present and future generations (iegis, Ramanauskien & Startien, 2009). This situation is driving firms to undertake an environmental transformation process with the purpose of reducing the negative externalities that come from their economic activities (Fraj-Andrs, Martinez-Salinas & Matute-Vallejo, 2009). Within this context, the change of marketing topics that dominate in scientific literature can be observed (Banyt & Gadeikien, 2008), when an increasing amount of attention is given to the problems of green marketing (Grundey & Zaharia, 2008) and environmental marketing (Fraj-Andrs, Martinez-Salinas & Matute-Vallejo, 2009). These new emerging business philosophies empower organizations to address sustainability issues and are seen as valuable strategies to improve a companys competitiveness (FrajAndrs, Martinez-Salinas & Matute-Vallejo, 2009). More and more frequently theoretical and empirical studies of green marketing are based on the aim of business enterprises to effectively satisfy the growing needs and expectations of green consumers and to successfully implement the sales goals of eco-friendly products. The performed studies of scientific literature (Smoliankina, 2000; Grundey, 2003; Ottman & Reilly, 1998; Ramanauskien, 2008; Ottman, Stafford & Hartman, 2008; Grundey & Zaharia, 2008) enable to state that the phenomenon of green marketing has not been sufficiently revealed yet, and empirical researches in the area of green marketing in Lithuania have been started only recently (Liesionis, 2006; Gargasas, Ramanauskien & Rukuiien, 2007; Ramanauskien, 2008; Grundey, 2009). The present investigation level of green marketing shows that as competitiveness increases especially as the factor of social and ecological responsibility of business becomes more important (Juius & Snieka, 2008), green marketing may become an effective tool for acquiring company competitive advantage and for strengthening the image. Therefore analysis of green marketing priorities and identification of the characteristics of green consumer in order to make suitable marketing decisions is especially relevant and timely. With regard to the mentioned aspects the problem, tackled in this article, is formulated as the following questions: what are the main characteristics and behaviour profile of a green consumer and how are they expressed as consumers make a decision to buy? Research object: profile of a green consumer.
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The objective of the article: to identify the main characteristics of a green consumer and to base them empirically on the example of Lithuanian female consumers of eco-friendly food product. Research methods: systematic and comparative analysis of scientific literature; quantitative research.
consumer who buys eco-friendly products not because it is becoming fashionable, but because he cares about environmental issues. In other words, these are the consumers who search for evidence in the labels that the product is eco-friendly or environmentally-friendly. Moreover, they are motivated to buy green products even if they are of lower quality and higher price in comparison to alternative products. These consumers make every effort to search for products that favour the environment (DSouza, Taghian & Lamb, 2006). This article uses the conception of a green consumer formulated according to P. ypa (2006): green consumer is a consumer who constantly buys eco-friendly products and is actively concerned with environmental issues and solutions to them.
some authors (Straughan & Roberts, 1999; Getzner & Grabner-Kruter, 2004; ypa, 2006; do Pao, Raposo & Filho, 2009) analyse the behavioural and psychographic profiles of a green consumer separately, in principle the mentioned profiles are very similar since the peculiarities of consumer behaviour are closely related to their psychographic attributes (personal qualities, lifestyle, social class, etc.), which has an impact on their motives for buying an eco-friendly product and the like. On the other hand, scientific studies show that different aspects of green consumers psychographic characteristics and especially behaviour are emphasized in the analysis of psychographic-behavioural profile of a green consumer. It is purposeful to discuss the aspects separately. Consumer classification according to their disposition to contribute to environmental conservation When introducing the findings of studies undertaken by Roper Starch Worldwide in 1990-1996, J. A. Ottman & W. R. Reilly (1998) identify five segments of consumers: Loyal green consumers firmly believe that it is necessary to have environmental awareness and try to contribute significantly to environmental conservation. They attempt to buy eco-friendly products and to pay more for them (up to 40 percent) in comparison to identical yet non-eco-friendly products. Being politically and socially active, these consumers try to persuade other people to contribute more to environmental conservation and to buy more or only eco-friendly products (Ottman, Reilly, 1998). Some authors (DSouza, Taghian & Lamb, 2006) call the attitude of green consumers to buy only eco-friendly products altruism. In scientific literature, altruism is considered to be one of the most typical psychographic attributes of loyal green consumers (Straughan & Roberts, 1999). Less devoted green consumers are strongly concerned with environmental issues, yet they are too busy to change their lifestyle. Thus, such consumers only favour the activity of loyal green consumers but do not tend to be actively involved. They are ready to pay for eco-friendly products 10 to 22 percent more than for non-eco-friendly products (Ottman & Reilly, 1998). Studies performed in Lithuania reveal that local less devoted green consumers are ready to pay up to 10 percent more for eco-friendly product (Laurinnait, 2007). According to the scientists R. D. Straughan & J. A. Roberts (1999), altruism is not so characteristic of less devoted green consumers as of loyal green consumers. Consumers developing towards green approve the activity of green consumers only sometimes and subject to the situation. They act in a similar way when purchasing eco-friendly products. Consumers developing towards green are ready to pay for eco-friendly products 4 percent more than for identical non-eco-friendly products (Ottman & Reilly, 1998). Conservative consumers unwilling to change think that this should be the initiative and responsibility of the state and large companies. The majority of such consumers do not have sufficient information about environmental issues, yet the consumer group would buy eco-friendly products provided their price is the same as of non-eco-friendly products (Ottman & Reilly, 1998). Consumers completely unwilling to change do not consider environmental issues to be serious at all. Therefore, they do not take the initiative of environment protection since it does not matter to them on principle (Ottman & Reilly, 1998). Altruism is not typical neither of conservative consumers nor of those completely unwilling to change (Straughan & Roberts, 1999). Green consumer classification according to their needs In their analysis of green consumer psychology, J. A. Ottman & W. R. Reilly (1998) maintain that when buying eco-friendly products, green consumers pursue to satisfy various needs. The needs and purchase strategies of green consumers are presented in Figure 1.
Need For information For control To change/reduce guilt of environment pollution To express lifestyle Strategy Search for information when reading product labels and studying marking Support for green producers trademarks and disregard for other producers Buying the products that may be environmentallyfriendly (i.e. eco-friendly products) Buying green versions of a product
Figure 1. Needs and purchase strategies of a green consumer (Ottman & Reilly, 1998; Wind, 2004)
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According to the information presented in Figure 1, it is possible to discuss green consumers needs for information, control, changes and lifestyle expression more thoroughly. Need for information. M. Getzner & S. Grabner-Kruter (2004) ground the need for information on green consumers necessity to know. Knowing is a criterion that has an impact on green consumer behaviour in all the stages of decision making process on buying an eco-friendly product. There is an assumption that the better green consumers will be informed and the more they will know about the qualities of an ecofriendly product, the more they will be motivated to buy the product. Green consumers need for information is closely related to knowing how and where to find eco-friendly products. When searching for eco-friendly products in supermarkets, green consumers must know where they are located, what the difference between ecological and analogous non-eco-friendly products is (Wind, 2004). In this context eco-friendly labelling of products becomes very important (DSouza, Taghian & Lamb, 2006; iegis, 2008). Knowledge on environmental issues tends to create awareness in brands and possible positive attitudes towards green brands, while environmental labels may assist in identifying green product attributes (DSouza, Taghian & Lamb, 2006). Need for control. J. A. Ottman & W. R. Reilly (1998) notice that green consumers study the products that belong to the same group closely and pay special attention to the terms of their description. In order to emphasize the aspect of environment protection, green companies use the terms that define eco-friendly nature in various stages of product manufacturing, presentation and maintenance, i.e. production (produced with no harm to the environment), supply (raw material are of vegetable origin), distribution (package may be reused), marketing (application of ethic marketing principles), usage (product is of longterm use) and maintenance after purchase (product may be recycled). Consumers usually buy products of the green producers they can trust. Companies producing non-eco-friendly goods may simply be ignored by consumers. Need to change. Green consumers want to feel able to change the world at least fractionally. Eco-friendly product purchase and usage expresses green consumers wish to contribute to environmental conservation in such a way (Ottman & Reilly, 1998). Need to express lifestyle. Qualities and price of an eco-friendly product, as of any other product, has a considerable impact on consumers when deciding on buying them. J. A. Ottman & W. R. Reilly (1998) state that green marketing specialists have to make decisions about competitive price of eco-friendly products or about intensive communication of their valuable attributes in the market. No matter how favourable consumers are to eco-friendly attributes of a product, they want to buy the products that do not conflict with their established lifestyle (Manaktola & Jauhari, 2007). According to the authors, consumers wish to acquire an eco-friendly product in order to achieve a minimal conflict between their consumption and a growing need for safety. Thus, green consumers tend to buy so called green versions of products, i.e. when a product existing in the market or one of its components is replaced with environmentally-friendly one. As Wind (2004) notes it is very important that the price of green version of a product was the same or close to the established price of a conventional product in the market. Presentation of green version of a product in the market capacitates the consumer to feel green consumer without changing his lifestyle. Green consumer classification according to their motives J. A. Ottman & W. R. Reilly (1998) maintain that even loyal green consumers are not completely homogeneous. It is possible to discern three groups of green consumers according to the motives, which are explained in detail in Table 1. Table 1. Green consumers segmentation according to their motives (Ottman & Reilly, 1998)
Consumers concerned with planet environment protection Belong to organizations that deal with protection of important natural resources. Consumers behaviour: Economize water and electricity Recycles waste Buys recycled paper Avoids excessive consumption Reads magazines about planet environment protection Health fanatics Belong to organizations that care about healthy nutrition and lifestyle of a human being. Consumers behaviour: Buys organic food and scalded water Uses sunscreen Reads magazines about healthy nutrition and lifestyle Animal lovers Belong to organizations that fight for animal rights. Consumers behaviour: Boycotts meat and fish consumption Does not approve wearing of natural fur coats Reads magazines about animal rights an their protection
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When discussing the tendencies of green consumer behaviour according to their motives, J. Laurinnait (2007) emphasizes that concern about environment is perceived rather narrowly in Lithuania (usually, it is confined to buying of eco-friendly food products in a store); whereas in the world, the interests of such consumers are much wider and include climate changes, ocean pollution, the end of nuclear era, renewable energy resources, forest protection, fight for disarmament and toxic chemicals and other issues. Consumer classification according to the level of environmental awareness P. ypa (2006) suggests classifying consumers into types according to their environmental awareness level. It does not mean only the amount of possessed knowledge but also their rational and emotional usage that induces the consumer to take certain actions. The level of environmental awareness has an impact on a consumers behaviour and demand for eco-friendly products. (ypa, 2006). This dependency is explained in Table 2. Table 2. Consumer segmentation according to the level of environmental awareness (ypa, 2006)
Group of consumers Black consumers (foster the cult of material wellbeing) Level of ecological awareness Behavioural pattern The most important needs are those that must be satisfied for the sake of society wellbeing. They are sure that behaviour of individual consumers does not influence ecological balance; they have a notion that current system of environment protection is reliable and not to be altered. Unstable, onetime, toxic products are saleable. They tend to buy things that are advertised and attractive. Linear usage of resources (purchase-usage-disposal) prevails. Non-economical usage of electricity, water, gas and other resources is typical. They think environmental impact on human health should be emphasized only in the most environmentally sensitive spheres. Behaviour of individual consumers does not have much influence on ecological balance. Grey consumer has a notion that the majority of harm to the environment caused by technology (except for radiation and environmental disasters) may be eliminated using the same technology. They are sure that the present system of environment protection is not sufficient and its improvement is the concern of public institutions. They tend to buy the same products as black consumers. They buy eco-friendly products rarely, usually because of information impact. Linear model of resource consumption prevails. Economic usage of electricity, water, gas and other resources is influenced by economic motives of the consumer. They buy clean products (reasons health and snobbery). They buy products advertised as eco-friendly, but rarely verify the information. They think the environmental impact on human health is huge and consumers lifestyle is a good preventive measure to reduce the impact of civilization. Closed model of resource consumption (considered purchase conscious consumption secondary usage) is applied only in case it does not require much effort. Economic usage of electricity, water, gas and other resources is influenced by economic or snobbish motives of the consumer. They want to live and live so that their lifestyle would favour environment. Green consumers think that environment is one of the major factors that have an impact on persons health and the best lifestyle is an eco-friendly one. Green consumers have a notion that behaviour of individual people has a crucial influence on ecological balance. They buy eco-friendly products of highest quality, suitable for secondary usage and in ecological packing. They satisfy their internal needs and not the ones imposed from outside. Closed model of resource usage prevails. They require making personal decisions of organizational nature that would allow simplifying product recycling. Economical usage of resources in order to protect nature.
Low
Medium
Greyish green consumers (want to create an image of green consumer, are concerned with personal health)
High
Very high
Consequently, although consumers may be divided into various types according to different criteria (demographic and psychographic-behavioural variables) in terms of their needs and behaviour with respect to eco-friendly products, it may be assumed that green consumers are those who constantly buy eco-friendly products and are actively concerned with solutions of environmental issues. The study of the factors that determine the willingness of individuals to pay a higher price for environment friendly products, presented in the E. Conraud-Koellner & L. A. Rivas-Tovar (2009) article shows that they can be grouped in three 379
categories: demographic characteristics, level of knowledge, and values and attitudes that consumers have (or adopt) towards environmental topics.
Research design
Empirical researches conducted by Lithuanian scientists show that the supply of eco-friendly products has increased by about 10 percent during the last 10 years in Lithuania. (Ramanauskien & Gargasas, 2007). Approximately, general demand for eco-friendly products in Lithuania will exceed the supply for at least 5 to 10 years (Ramanauskien & Gargasas, 2007; Rutkovien & Garliauskien, 2007; Rutkovien & Ribaauskien, 2003). Therefore, Lithuania may be attributed to the countries with developing market for eco-friendly products. Studies undertaken by many Lithuanian scientists (Kivickien, 2003; Eidukeviien & Buien, 2005; eponyt, 2006; Rutkovien & Garliauskien, 2007; Ramanauskien & Gargasas, 2007; Gargasas, Ramanauskien & Rukuiien, 2007) and the analysis of their findings reveal that eco-friendly food products are the eco-friendly products most often purchased in Lithuania and women are generally the ones who purchase them. The most important motives for choosing eco-friendly food products are safety, quality, better taste and environmental sustainability. Considering the results of theoretical studies performed in the article and seeing that food products constitute the majority of purchased eco-friendly products and they are more often obtained by women than men (Chitra, 2007; Mostafa, 2007), the aim of the empirical study is formulated as follows: to define demographic and psychographic-behavioural profiles of a green consumer on the grounds of the example of Lithuanian eco-friendly food product female consumers. The following hypotheses have been tested in the study: H1: Consumers that are more educated have a better understanding of environmental issues and are more sensitive to them. H2: Younger consumers tend to buy eco-friendly food products more often. H3: Consumers receiving higher than average income are more sensitive to environmental issues. In pursuance of the study aim, quantitative research method is chosen to perform empirical study in the article, i.e. survey using a questionnaire. The questionnaires with close-end questions were presented to respondents selected using the method of non-probability convenience sampling. The survey was pursued in the stores of one of the largest network of Lithuanian retail trade. All women, who were buying eco-friendly food products and who agreed to participate in the study, were surveyed. 111 respondents were interrogated, yet only 105 questionnaires were chosen to be relevant when analysing data.
Research results
With reference to study findings, the profile of a green consumer was generalized, incorporating both demographic and psychographic-behavioural attributes, presented in Table 3. When elaborating study findings according to each criterion of psychographic-behavioural profile, it was noticed that 40 percent of respondents are to be attributed to less devoted green consumers according to their disposition to contribute to environmental conservation. In the questionnaire, they indicated they were concerned with environmental issues, yet were too busy to change their lifestyle substantially. It should be noted that even 64 percent of respondents may be attributed to green consumers. Environmental awareness of consumers is indicated by the fact that only 14 percent of the respondents think environmental issues are not serious or do not believe they could contribute to environmental conservation. During the quantitative study, respondents were asked to describe themselves in terms of green consumers needs. On average, the majority of respondents agreed with the statement (a ten-point Likert scale was used) they always read the labels of eco-friendly food products and study their marking in search for information. On the grounds of theoretic study generalizations, such consumers have an expressed need to change. When describing their lifestyle in terms of environmental awareness level, the majority (36 percent) of respondents indicated they wanted to create an image of a consumer preserving the environment. Consumers with such self-definition are to be attributed to greyish green consumer group. Moreover, it should be mentioned that attitudes of even 60 percent of respondents correspond to the attitudes of green consumers according to this criterion. Even 50 percent of respondents attributed themselves to the type of health fanatics in terms of motives. 380
Table 3. Demographic and psychographic-behavioural profiles of eco-friendly food product female consumers
Demographic profile Basic Secondary Vocational Advanced vocational/ non-higher professional Higher Until 1,200 Lt 1,200-2,000 Lt 2,000-3,000 Lt More than 3,000 Lt From 18 to 29 years From 30 to 44 years From 45 to 59 years 60 years and older Woman % 14 20 18 22 26 32 46 14 8 22 38 30 10 Chosen Psychographic-behavioural profile Loyal green consumers Less devoted green consumers Consumers developing towards green Conservative consumers unwilling to change Consumers completely unwilling to change Need for information Need for control Need to change Need to express lifestyle Black consumer Grey normal consumer Greyish green consumer Green consumer Consumers concerned with planet environment protection Health fanatics Animal lovers %/ points 24 40 22 10 4 6,54 6,36 7,66 6,18 14 26 36 24 26 50 24
Education
Needs
Age group
Gender
Motyves
When comparing demographic profile of eco-friendly food product female consumer defined in theoretical studies and reflected in the context of study results, it is noted that it is usually a woman having higher education. Moreover, the study results confirm the statement that consumers that are more educated have a better understanding of environmental issues and are more sensitive to them, since 42 percent (the majority) of consumers attributed to loyal green consumers according to their disposition to contribute to environmental conservation and even 35 percent of consumers attributed to less devoted green consumers have higher education. Thus, H1 hypothesis cannot be rejected. The results of empirical study confirm that female consumers of the age 30 to 44 are most frequent buyers of eco-friendly food products, i.e. their age average is lower than that of a typical consumer. Consequently, H2 hypothesis cannot be rejected. The majority of introduced scientific study results reveal that consumers who receive higher than average income are more sensitive to environmental issues. However, the findings of the study introduced in the article show that namely the consumers who receive average income (1,200 to 2,000 Lt a month) constitute the majority of the respondents. On the other hand, cross analysis of the results indicates that most of the female consumers (38 percent), who are attributed to loyal green consumers according to their disposition to contribute to environmental conservation, receive higher than average income (2, 000 to 3,000 Lt); whereas the majority (35 percent) of those attributed to less devoted green consumers receive average income (1,200 to 2,000 Lt). Thus, H3 hypothesis is partly rejected. When the respondents were asked about the amount of money (in percent) they are ready to spend for eco-friendly food product in comparison to an identical conventional product, it emerged that 15 percent of respondents are ready to pay an amount higher by 50 percent, and another 20 percent would pay the amount higher by 25 to 50 percent; 24 percent of respondents would pay from 5 to 10 percent more for an ecofriendly product and only 3 percent would not pay more for it. Besides, cross analysis of results show that the consumers who are more likely to contribute to environmental conservation and are more sensitive to environmental issues tend to pay more for eco-friendly products.
Conclusions
Results of theoretical and empirical research of green consumer profile, have stipulated the following conclusions: As the tendency to lead healthy lifestyle is emerging and consumers start to treat environment preservation as taking care of themselves, it is relevant for business companies to comply environmental, 381
economic and social objectives with those of the company. In terms of marketing, such changes determine the need to know the new so called green consumer and to adapt marketing solutions with the focus on ascertaining the expectations of such a consumer and satisfying their needs. In this article, a green consumer is defined as a consumer who constantly buys eco-friendly products and who is actively concerned with environmental issues as well as solutions to them. To characterize a green consumer, his profile is generalized in the article. It includes the following: Demographic profile of a green consumer, where the consumers age, education, purchasing power and sex are indicated. Theoretical studies show, that usually a green consumer is characterized as an educated woman who belongs to the age group from 30 to 44 and receives higher than average monthly income. Psychographic-behavioural consumers profile that is based on consumers division into types according to their disposition to contribute to environmental conservation, needs, motives and the level of environmental awareness. To summarize the results of the empirical research into major demographic and psychographic-behavioural characteristics of eco-friendly food product female consumers in Lithuania, it was determined that: Eco-friendly food product female consumer is recognized to have the similar demographic characteristics as indicated in theoretical studies according to all aspects, except monthly income (she receives an average monthly income). In terms of disposition to contribute to environmental conservation, the respondents belong to less devoted green consumers. The majority of respondents has an expressed need to change and is attributed to health fanatics according to their prevailing motives. When grouping the consumers in terms of their environmental awareness, it was determined that their attitude matches the characteristics of greyish-green consumers best. Cross analysis of results revealed that more educated consumers perceive environmental issues better and are more sensitive to them. Moreover, the female consumers who are inclined to contribute to environmental conservation and who are sensitive to ecological problems tend to pay more for eco-friendly products. It is purposeful to relate further theoretical and empirical research to the identification of green marketing priorities. Such research would enable to ascertain the expectations of a green consumer and to know their needs better, to anticipate their responses to various marketing solutions, to determine factors that condition green consumers trust in eco-friendly products, to evaluate the impact of support means on green consumers decision-making.
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