Focus of consumer preferences on various factors of

Green marketing

Arudhra N (Post Graduent Student, School Of Business, ITMUniversity,Gwalior)

Ruchi Garg (Professor, School Of Business, ITMUniversity,Gwalior)

Vandana Bharti (Dean, School of Business, ITM University, Gwalior)

Sahithi K (Under Graduate student, Department of biotechnology, KLUniversity, Vijayawada)

Abstarct

Now a days customization of businesses towards customer centrality and supporting a social cause,

it is automatically boxed under Corporate Social Responsibility (CSR) and especially Green

marketing. Social cause marketing as a concept provoked years ago but due to a confining mindset

in India, brands were unable to leverage it fully. The green marketing comprises of many initiates

not just simple building of corporate image. Evolution of green marketing in modern era leads to

the enforcement of actual environmental trends to a broad spectrum of business activities. This

paper focus on three main variant factors affecting the green marketing in the present scenario.

Analytic Hierarchy Process (AHP) is adopted in this study to analyze the factors affecting the

Green marketing. MATLAB R2014 is being used to improve the accuracy of the results. Thus

results show the top three key factors affecting the consumers on purchasing the green products

has been shown.

Keywords: Green marketing, MATLAB, Analytical Hierarchy process (AHP)

Introduction:

Natural environment is that the primary stage of concern for marketing a product; thus, the protection of

environment became a major a part of fashionable selling strategy that's named “green”. The aim of

inexperienced selling is to create long run homeward relationship with client that's supported trust. this

can be followed by 3 main principles as quality, integrity, honesty. In this way, field of activity of green

showcasing devices is generally broad, beginning with the security of environment, creation and offer of

items and administrations with biological conditions and prerequisites, through the final consumption of

environmentally friendly products, which influences the personal satisfaction and strength of the entire

society.

However different sorts of organizations switch to embrace green methods of insight, for example,

conventional assembling organizations turn out to be more productive after change to green assembling

framework. The agribusiness commercial ventures likewise react in creating sustenances without hurting

to nature and shopper's wellbeing. The lodging and tourism commercial enterprises additionally included

in changing their business towards green inn and eco-tourism. Also, the idea of obtaining green items get

to be prevalent as the quantities of buyers that willing to buy that are naturally cordial are fundamentally

expanding. The span of the green markets is additionally expanding and is getting greater later on [7]. In

accordance with this, the green business likewise demonstrated a constructive and developing patterns as

found that individuals in India have high sympathy toward greener environment subsequently are moving

their inclinations from dim items to green items. While numerous organizations are attempting to frame

green business methodologies, it is not unequivocally talked about on the effects of green promoting

technique on the organizations' execution.

Literature review:

Green promoting has been the management model and also the core of selling strategy within the company

over the years. company events, production technology, product components and style have to be compelled

to take the ecology and environmental protection into consideration [9]. Furthermore, green marketing is

not only the tendency, but also the primary evaluated key point with strategic decision for the administrators

in future investment, research and development and production and manufacturing in the 21st century [8].

By, green showcasing is the well disposed approach to environment and the advertising occasion with

technique and strategies in the field of promoting. Also, the idea of green utilization as the center of

customers' mindfulness is rising little by little. Natural assurance is viewed as one of unequivocal elements

of procurement key choice by the number of inhabitants in 75 % in created nations.

The corporate initially incorporated the ecological consideration into the showcasing methodology, framed

supposed "commanded corporate obligation" [3]. Additionally, [3] proposed the "Enviropreneurial

Marketing" as the formal person, place or thing firstly, which underlined the business enterprise is

orientated in the biology consideration and imperative of significance on the objective of advertising

system. Accordingly green utilization should abstain from devouring intemperate assets amid the procedure

in utilizing, creating, squandering or seriously impacting the items to the earth.

Governments and non-government associations everywhere throughout the world at first built up a

progression of confirmed criteria of green item and green stamps to empower the customers to pick plainly

the items which are useful for the natural security. Rex and Baumann [1] took the green imprints as the

germane examination field and reached out from the purchasers to the showcasing technique. Furthermore,

Rex and Baumann [1] set the criteria of 5 major structures as demand measurement, segmentation and target

market, orientation and competitive advantage to the standard promoting strategy to research the product

with inexperienced marks, still as try and give the answer of low rate on market share for the product with

inexperienced marks.

Problem Description:

AHP is Multi criteria decision making tool developed by Thomas Saaty and published in seminal book

1980 [5], Thus it describes the variant method for solving the unstructured problems and therefore it can be

used in wide range of problems from simple to complex in nature , personal to capital decisions [6].

However it was proved to be simple and robust in nature.

Three major factors affecting the green marketing is selected from the literature as shown in the fig 1.

Fig 1. Factors affecting Green marketing

Green Design (X)

Gre

en m

arket

ing F

acto

rs

Green

Manufacturing (y)

Customer’s

Preference (Z)

Low Fuel Consumption (X1)

Alternative Energy (X2)

Low emission (X3)

Low noise (X4)

Long life time (X5)

Eco green civil awareness of consumer (Z1)

Sustainable industrial image (Z2)

Cost on purchase, use and maintenance (Z3)

Social perception (Z4)

Deducting the production on consumer

resources (Y1)

Recycling disposal of auto body and

components (Y2)

Renewable or environmental materials (Y3)

The process without pollution (Y4)

The practice of principle of equitable (Y5)

Problem formulation:

The problem is formulated using pair wise comparison method, the steps to process AHP is explained below

and Fig. 2 depicts the flow chart of AHP.

Fig 2. Flow chart of Analytical Hierarchy Process (AHP)

Start

Develop hierarchy

Build a matrix using pair

wire comparison method

Calculate Random Index

Normalization of matrix

Calculate Consistency

Ratio

Calculate Consistency

Ratio (CR)

Calculate Eigen values

and Eigen vector

NO CR <10

YES Result accepted

Calculate priority

vector

Find the priority (or)

highly affected factor

STOP

Step 1: Structure the problem in a hierarchy. Thus in AHP tree-like hierarchy is used for evaluating different

alternatives as shown in Fig .

Step 2: The data is collected based on the pair wise comparison method and represent the results obtained

with a meaningful result.

Step 3: Thus a matrix is formed, the upper triangle matrix is filled using the following rules i.e. if the

judgement is on the left side of 1, we put the actual judgement value; if the judgement is on the right side

of 1, we put the reciprocal value.

Step 4: To fill the lower triangle matrix we use the reciprocal of upper triangle matrix.

Step 5: The next step is to normalize the matrix. This is done by totaling the numbers in each column.

Step 6: Calculate the consistency index (CI)

maxCI 1

n

n

Step 7: Calculate the consistency ratio (CR)

CR = CI

RI

Random Index(RI) is calculated by using the below table

n 1 2 3 4 5 6 7 8 9 10

RI 0 0 0.58 0.9 1.12 1.24 1.32 1.41 1.45 1.49

Step 8: calculate priority vector or normalized Eigen values.

Results and discussion:

The results are formulated using the software MATLAB R2014, matrix developed for the factors effecting

the green marketing is used as the input. Thus the results obtained are shown in the below Figures. (Fig.

3,4,5)

Fig 3. Illustration of factors effecting Green design

Fig 4. Illustration of factors effecting the Green manufacturing

Fig 5. Illustration of factors effecting Consumer preferences

Fig 6. Priority of factors effecting green design

The above graph shows the normalized vector or priority of various factors effecting green design and it is

being found that low emission (X3) followed by alternative energy (X2) is having most priority keeping in

the view of consumer preferences.

Fig 7. Priority of factors effecting green manufacturing

The above graph shows the normalized vector or priority of various factors effecting green manufacturing

and it is being found that the process without pollution (Y4) followed by renewable and environmental

materials (Y3) is having most priority keeping in the view of consumer preferences.

Fig 8. Priority of factors effecting the consumer preferences

The above graph shows the normalized vector or priority of various factors effecting consumer preferences

and it is being found that eco green civil awareness of consumer (Z1) followed by social perception (Z4)

is having most priority keeping in the view of consumer preferences.

Conclusion:

The manufactures must focus on 3R’s – reduce, reuse, recycle are the most beneficial publicized factors for

the economy, environment, industries and consumers. In this paper three top emphasized factors of green

marketing are analyzed and the further research can be concluded with others factors effecting the green

domain, with the help efficient primary and secondary data. However, manufacturers should be focused on

different aspects of consumer i.e. psychology, behavior and increasing needs and wants. Thus marketing

mix is largest band of monopolistic in nature competition is adversely increasing. Eco-marketing has

become one of the promotion technique and also to create sustainability among the products and to stimulate

consumers. The companies who fail to establish a Eco product are taken into consideration of greenwashing.

Therefore, the manufacturers should grasp the consumer psychology and come up with unique marketing

strategy, and train intensively the marketing personnel of front line with various marketing methods to

discover the different category of consumers and their prospects with increasing demand and awareness to

install the product into a particular market.

References:

[1] Rex, E., & Baumann, H. (2007). Beyond ecolabels what green marketing can learn from conventional

marketing. Journal of Cleaner Production, 15, 567-576.

[2] Shi, J., & Kane, J. (1996). Green issues. Business Horizons, 39(1), 65-70.

[3] Varadarajan, P. R. (1992). Marketing's contribution to strategy: The view from a different looking glass.

Journal of the Academy of Marketing Science, 20(4), 323-343.\

[4] Park, P. J., & Tshara, K. (2008). Quantifying producer and consumer-based eco-efficiencies for the

identification of key ecodesign issues. Journal of Cleaner Production, 16, 95-104.

[5] T. L. Saaty, "The Analytic Hierarchy Process," McGraw-Hill, New York, 1980.

[6] Haghighi, M. and KHalili, M. (2011). Investigation of Green Marketing Position of in Consumer’s

Buying behavior. 24(9): pp 83-102.

[7] Hosseinzadeh, S., Safari, A. and Rashidpoor, A. (2014). Effect of green marketing mix elements on

customer’s loyalty to brand Naghsh e Jahan Sugar co. New Marketing Research Journal, 4(2): pp. 111-124.

[8] Chen ,T.B and Chai, L.T. (2010). Attitude towards the Environment and Green Products: Consumers’

Perspective. Management Science and Engineering, Vol 4, pp. 27-39.

[9] Cox, M. J. (2008). Sustainable Communication: A Study of Green Advertising and Audience Reception.