Roper Organizations Green Consumer Classification Model Marketing

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Environmental issues are the major concern for the business and public

life across the globe. The big corporate houses considered the issues

related to environment and taken green marketing as a part of their

business strategy for product marketing. Now green marketing had

become a part of the business strategy, the marketing concept that used

to create the awareness about the products is now also creating the

awareness about saving the environment. Different methods are been

used by the companies to spread awareness about the environment

between the consumers. Some methods are- Designing the

advertisements that focuses on the product as well as environment, the

best example is Idea Cellular, we all are aware about the advertisement

that spread the message to save the trees. Tata Indicom provides 1%

discount on monthly bill to those who opts for E-Bill. Further, Citibank

Credit Card provides extra reward points to those consumers who

register themselves for E- Statement.

After discussing about the green marketing one question strikes to the

mind- What is Green Marketing? The answer to this question is:

According to Polonsky (1994)- Green or environmental Marketing consist

of all the activities designed to generate and facilitate any exchange

intended to satisfy human needs and wants, such that the satisfaction of

these needs and wants occur with a detrimental impact on the natural

environment.

Green marketing has been defined as an organized movement of

concerned citizens and government to protect and enhance people's

living environment (Kotler and Armstrong, 2008).

Grewal and Levy define it as a strategic effort by firms to supply

customers with environment-friendly merchandise (2008).

Why Green Marketing?

Since early 1990s, a major concern on ecological impact of industrial

house on environment has been surfaced on marketplace. Not only the

relation between human, organization and natural environment being

redefined ,but the implication thereof are being interpreted; because of

these, new perceptions are being formed or re-evaluated on issues like

environmental friendly products, recycle ability, waste-reduction, the

cost associated with pollution and the price value relationship of

environmentalism. Pressure from various stakeholders, Govt.,

environmentalists, NGOs, consumers is placed on businesses, which in

turn keeps them under constant and relentless watch in their daily

operations. A direct result can be seen in developed and developing

countries where Govt. became strict in imposing regulations to protect

environment; at the same time, the consumers of these countries are

being more and more outspoken regarding their needs for

environmentally friendly products, even though questions remain on their

willingness to pay a higher premium for such products!

So in this era where consumers determine the fate of a company, green

marketing imparts a proactive strategy for these companies to cater the

market by imparting nature friendly products/ services which otherwise

reduce or minimize any detrimental impact on environment.

A green- marketing approach in the product area promotes the

integration of environmental issues into all aspects of the corporate

activities; from strategy formulation, planning, re-engineering in

production process and dealing with consumers. So to remain

competitive within the challenge thrown by the environment

protectionists, the companies will have to find answer through their

marketing strategies, productand service redesign, customer handling

etc. in this Endeavour the companies may go for new technologies for

handling waste, sewage and air pollution; it can go for product

standardization to ensure environmentally safe products; by providing

truly natural products.

In this regard the companies should be concerned with what happens to

a product during and after its useful life. Companies may manifest this

concern through experimentation with ways to reassess and redesign the

product life stages. Life cycle reassessment focuses on environmental

consideration in product development and design, including energy and

material inputs and out-puts in production, consumption and disposal of

products. We would than be able to manage the life stages of a product

in an environmental friendly and eco- efficient manner. Eco-efficient

refers to the proper thinking for the use or consumption of natural

resource so that nature is afforded an opportunity to renew itself.

Thus the mammoth like challenge of green marketing is to meet the

unlimited wants of consumers within the constraint of limited resources

by introducing modern management tools like TQM, 6-Sigma, 4Rs

(Reduce, Reuse, Recycle, Recovery) principles in production processes of

companies. Currently our concern is with the total yield of production

and product marketing processes including waste and pollution. (Ghosh,

2010)

LITERATURE REVIEW

Businesses and Green Marketing

Businesses can adopt green marketing by facing three issues: "what it

takes", "what it makes" and "what it wastes". Fuller defines "what it

takes" as the materials and energy resources that are removed from the

earth's ecosystems while "what it makes" represents the products of

commerce, goods and services while "what it wastes" represent the

cultural garbage/waste, pollution and the ongoing destruction of natural

systems (Fuller, 1999).

Kodak recycled its single use camera in its efforts to address "what it

makes" issue. It introduced a closed-loop recycling program which aimed

to reuse the single-use camera (Baron, 2000). The camera was designed

in such a way that the consumer would not dispose of them since he/she

could not remove the film from the camera. The recycling program

focused on film processors who were paid USD0.05 for every camera

returned. Kodak paid for the shipping costs.

To address the "what it wastes" issue, McDonalds tied up with

Environmental Defense Fund to study its waste reduction program

(Baron, 2000). The group took the following environment-friendly

measures: reuse of materials such as shipping boxes, recycling and

composting.

Green companies include the Body Shop, Ben and Jerry's Homemade Ice

Cream, Patagonia Equipment, Smith and Hawken Garden Suppliers and

Sebastian International Cosmetics and Hair Care (Wasik, 1996). The

entry of green products represents a welcome breakthrough in ecological

awareness in the world of business (Dadd and Carothers, 1991).

In India, the companies in retail sector such as- Spencers Retail, Big

Bazaar, are revamping their product delivery scenario for the consumers

by putting up the charges for on plastic bags whereas, the companies

such as Woodland, Numero Uno, Wills Lifestyle are providing the

products in green bags to their consumers, which can be reused.

Consumers and Green Marketing

It is marketing's social responsibility to redirect needs and wants

towards consumption, which are ecologically least harmful (Fuller, 1999).

Thus, green consumerism is a viable option. Green consumerism is not

only viable but it is a long-term trend reflecting a permanent shift in

societal values (Ottman, 1998). Ottman pointed out that the hallmarks of

the age of environmental consumerism are evident in consumers who are

becoming more concerned with the quality of consumption/life, long-term

use and sociopolitical values (Ottman, 1998).

Smith validates Ottman's observation that green consumerism is growing

in his research on the myth of green marketing (Smith, 2000). He points

out that green consumerism is a myth because it effectively transforms

the environmental problem from one of productive to one of

consumption. He adds that consumers are responsible for the ecological

problems, instead of producers, as they contribute to its solution by

buying green. Although their reasons for going green may vary, green

consumers are very important in preserving the environment (Wheatley,

1993). Their environmental commitment would also vary.

Roper Organization's Green Consumer Classification Model

Roper Organization identified 5 consumer segments in the US based on

their level of their environmental commitment (Ottman, 1998):

True-blue greens- True-blue greens are the most active pro-

environmental group; they are most likely to avoid buying products from

a company with a questionable environmental reputation. They are

passionate about buying green and ecologically-friendly productsThey

believe that they can make a difference in solving environmental ills. As

recyclers, composters and green volunteers, they give their time and

resources for environmental causes.

Greenback greens- Rather than by giving time or action, these people

support environmentalism by giving their money. They are most willing

to spend more for green products. The best educated in the group, they

are also the youngest. Although too busy to change their lifestyle, they

express their environmental concern through their wallets.

Sprouts- The sprouts want pro-environmental laws but they do not

believe that they can do much to preserve the environment. They are on

average, for green products. They are active in environmental causes but

they embrace green consumerism slowly.

Grousers- The grousers take few environmental actions. They believe

that business should be fixing environmental ills and that green products

cost more versus non-green products. With below-average education and

incomes, they feel that somebody else should fix environmental problems.

Basic Browns- The least involved in environment, the basic browns

comprise the largest group. They are the least educated among all

consumer segments. Disproportionately male, Southern, blue-collar and

economically downscale, they believe that there is nothing that

individuals can do about the environment.

Studies showed that consumers tend to be greener in direct proportion to

their income and education, and that female consumers are greener than

their male counterparts (Coddington, 1993). When shopping, women

were more likely to exhibit green behavior in their purchases. Further,

women were more likely to recycle products. Income, education, age,

gender and place of residence were positively related to the consumer's

level of environmental commitment (Marneiri, Barnett, Valdero, Unipan

and Oskamp, 1997).

Other studies show a negative correlation between green behavior and

demographic variables (Chan, 2000). Thus, psychographic segmentation

such as political orientation (liberalism), altruism (concern for the

welfare of others) and attitudes such as perceived consumer

effectiveness are proposed to be more effective segmentation variables

(Straughan and Roberts, 1999). Findings showed that consumers who are

more politically-oriented and altruistic are more likely to show a green

behavior (Straughan and Roberts, 1999).

The care for the environment is shifting from regulation to consumer's

responsibility (Kotler, Armstrong, Ang, Leong, Tan and Tse, 2005). This

new environmentalism is causing many consumers to rethink what

products they buy and from whom (2005).

Kotler and Armstrong state that a simple model of the consumer

decision-making process involves three major components: inputs,

process and output (Kotler and Armstrong, 2008). According to them, the

input component of the consumer decision-process has external and

internal influences. The external influences are the marketing mix

activities involving product, promotion, price and place while the internal

influences are the socio-cultural environment (family, informal sources,

other noncommercial sources, social class and subculture and culture,

knowledge, etc.). The process component involves the psychological field

such as motivation, perception, learning, personality and attitudes

(Kotler and Armstrong, 2008).

Figure 1 states the place of green marketing in consumer decision

making after consumers understands the importance of green marketing.

As shown in Figure 1 before making the product choice the consumer

would think of the green marketing and then they will be making the

decision. This is proposed model of consumer decision making when

green marketing will be the constraint in decision making process of

consumers in India.

Figure 1 Proposed Model of Consumer Decision Making Process with Green Marketing

Awareness about Green Marketing

Product Consideration

Product Awareness

Total Product Available ProduOptions

Decision

Product Choice

OBJECTIVES OF THE STUDY

The study is conducted on the following objectives:

To find out the awareness about green marketing among Indian

consumers.

To find out the most influencing source used to create the awareness

about green marketing among Indian consumers.

To understand the Profile of Indian consumers based on Roper

Organization's green consumer classifications by Ottman in1998.

HYPOTHESES

H01. Indian consumers are not aware about the green marketing.

H02. There is no in medium to create the awareness about the green

marketing.

H03. Indian Consumers does not have any profile based on the Roper

Organization's Model.

RESEARCH METHODOLOGY

Study Area

The study is done in Lucknow, the most popular markets of Lucknow are

selected for collecting the data.

Sampling Method and Sample Size

The market for sampling was selected on the basis of Random Sampling,

the market were the study was performed in Lucknow are- Hazratganj

and Kapoorthala. These markets are selected because they are the most

popular markets of Lucknow. The convenience sampling technique was

used to collect the data from the respondents. The total sample size

identified for the study is 100 respondents from both the markets.

Data Collection

The Study is based on Primary data and Secondary data both. The

primary data is collected through structured questionnaire from the 100

respondents from Lucknow. The secondary data is collected through the

magazines, journals, periodicals, people opinion and internet.

Analytical Tools and Techniques Employed

The analytical tools and techniques that are employed in the study are:

The 5 point Likert's Scale was used to collect the responses from the

respondents. Where 1= Strongly Agree and 5= Strongly Disagree

One sample T- test was used to test the hypothesis.

Nominal Scale was used for few questions in the research.

The SPSS for windows is used for calculating the collected data.

RESULTS AND FINDINGS

The total number of respondent surveyed for the study are 100, but 77

respondents out of 100 responded to the questionnaire. These

respondents were classified into different age groups as displayed in

Table 1. The minimum age of the respondents considered for the survey

was 15 years. Therefore, the class interval considered for analysis was of

10, i.e. 15-25, 25-35…… to 55 & above. As it can be fetch from Table 1

that the maximum number of respondents lie in the class interval of 25-

35 with the frequency of 26 (33.8%) followed by 17 (22.1%) respondents

from the class interval of 35-45.

Table 1: Age Group

Frequency

Percent

Valid Percent

Cumulative Percent

15-25

14

18.2

18.2

18.2

25-35

26

33.8

33.8

51.9

35-45

17

22.1

22.1

74.0

45-55

14

18.2

18.2

92.2

Above 55

6

7.8

7.8

100.0

Total

77

100.0

100.0

The study was also concluded to know whether the consumers are aware

about the green marketing or not. As per Table 2, it was found that 43

(55.8%) out of the 77 respondents are aware about the green marketing

whereas, 34 (44.2%) respondents are not aware about the green

marketing.

Table 2: Consumer Awareness about Green Marketing

Frequency

Percent

Valid Percent

Cumulative Percent

Aware

43

55.8

55.8

55.8

Not Aware

34

44.2

44.2

100.0

Total

77

100.0

100.0

Further it was analyzed that the hypothesis that was prepared was the

null hypothesis indicated with H0, below the null hypothesis is followed

by the alternate hypothesis indicated with H1

H0 Indian consumers are not aware about the green marketing.

H1 Indian consumers may have awareness about the green marketing

After analyzing the results of one sample t-test it was found that H0 is

rejected. As per the Table 4, the calculated value of t is 7.752 with the

test value of 1; the test value is taken 1 because there was mean

determined by the value of 1 through descriptive using SPSS. Further, on

the degree of freedom of 76 the nearest table value of t should be less

than 2.00 at .05 or 5%. Further, the significance value < 0.000 which

shows that there is a significant difference between 1 and the mean

number of consumer awareness about green marketing. Therefore taking

a look on Table 3 it can be said that null hypothesis is rejected and

alternate hypothesis H1 can be accepted.

Table 3: One-Sample Test

Test Value = 1

T

Df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

Upper

Consumer Awareness about Green Marketing

7.752

76

.000

.44

.33

.56

Till now the study was done on 77 respondents out of 100 but as the data

is filtered for rest of the study to 44 respondents who are aware about

the green marketing. Table 4 indicates about the sources or medium

through which the information is spread among the consumers about

green marketing. These sources or medium can be electronic, print or

seminars and the peers of the consumer.

Table 4: Source of Awareness about Green Marketing

Frequency

Percent

Valid Percent

Cumulative Percent

Television

16

20.8

36.4

36.4

Radio

12

15.6

27.3

63.6

Newspaper

9

11.7

20.5

84.1

Seminar and Peers

5

6.5

11.4

95.5

Internet

2

2.6

4.5

100.0

Total

44

57.1

100.0

As per the findings from Table 4 it is derived that the majority of

consumers or respondents came to understand the concept of green

marketing through television. The respondents who got aware about

green marketing through television are 16 (20.8%) out of 44 respondents

followed by radio with 12 (15.6%) respondents and newspaper with 9

(11.7%) respondents.

Table 5: One-Sample Test

Test Value = 1

t

df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

Upper

Source of Creating Awareness about Green Marketing

6.700

43

.000

1.20

.84

1.57

H0 There is no medium to create the awareness about the green marketing.

H1 There can be the mediums to create awareness about the green marketing

As the hypothesis indicates that there is no medium or source to create

awareness about the green marketing among the consumers, to test this

hypothesis one-sample t-test is used, where the calculated value of t is

6.700 on the degree of freedom of 43 at .05 or 5% as shown in Table 5. It

can be determined that the nearest table value of t is 2.021 on the degree

of freedom of 40 at .05 or 5%. Further, the significance value < 0.000

which shows that there is a significant difference between 1 and the

mean number of consumer awareness about green marketing. Therefore

it can be seen that H0 is rejected and H1 can be accepted. The test value

was taken 1 because the mean of the data collected is 1 which was found

out through descriptive using SPSS.

Table 6: Respondents' Green Consumer Profile Based on Roper Organization's Green Consumer Classifications

Frequency

Percent

Valid Percent

Cumulative Percent

True Blue Green

4

5.2

9.1

9.1

Greenback Green

19

24.7

43.2

52.3

Sprouts

16

20.8

36.4

88.6

Grousers

2

2.6

4.5

93.2

Basic Brown

3

3.9

6.8

100.0

Total

44

57.1

100.0

Table 6 provides information about the green consumer profile that is

based on Ropers organization's green consumer classification. According

to the Table 6 the consumers are divided into 5 classifications i.e. True

Blue Green, Greenback Green, Sprouts, Grousers and Basic Brown. The

total respondent who agrees that they accepts and adopts the new

product is 44. The maximum number of respondents are 19 (24.7%) who

comes under the category of greenback green followed with sprouts 16

(20.8%).

Table 7: One-Sample Test

Test Value = 2

t

df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

Upper

Respondents' Green Consumer Profile Based on Roper Organization's

Green Consumer Classifications

3.869

43

.000

.57

.27

.86

H0 Indian Consumers does not have any profile based on the Roper Organization's Model.

H1 Indian Consumers can have the profile based on the Roper Organization's Model

The H0 hypothesis states that the profile of Indian consumers is not

based on the Roper Organization's Green Consumer Classifications. That

means that the Indian consumers do not come under any of the five

categories of Roper Organization's Green Consumer Classifications. As

per the Table 7 the calculated value of t is 3.869 on the degree of

freedom of 43 at .05 or 5% which is more than the nearest table value of

t (1.980) on the degree of freedom of 40 at .05 or 5%. The test value is

taken 2 because the mean for the collected data was 2 as per the

descriptive calculation done through SPSS. Further, the significance

value < 0.000 which shows that there is a significant difference between

1 and the mean number of consumer awareness about green marketing.

Hence the null hypothesis H0 is rejected and H1 that is alternate

hypothesis can be accepted.

CONCLUSION

It is concluded 55.8% of Indian consumers are aware about the green

marketing. This can be due to certain different reasons such as initiative

taken by corporate and government. Whereas; 44.2% of the consumers

are not aware about the green marketing.

The Television plays an important role in creating awareness about green

marketing among the Indian consumers. 20.8% of respondents consider

television as most influencing medium of spreading awareness among the

Indian consumers. For attracting the Indian consumers, government and

companies can use television as a tool to create awareness among the

Indian consumers. Though television is costly medium but it has high

influence on consumers.

In terms of Roper Organization's green consumer classifications (Ottman,

1998) it is concluded that most of the Indian consumers are greenback

green (24.7%), that is these consumers are able to buy green products

but they do not have time and energy for environmental activities and

they do not want to change their lifestyle to promote environment.

Therefore it is concluded that there is huge scope of green marketing

among the Indian consumers but still there is need to change the mind of

Indian consumers about green marketing by using different mediums of

awareness.