consumers purchasing behaviour towards green product

54
1 | P a g e Consumer Purchasing Behavior Towards Green Product

Upload: morshedabdullah

Post on 26-Dec-2015

27 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Consumers Purchasing Behaviour towards Green Product

1 | P a g e

Consumer

Purchasing

Behavior

Towards

Green

Product

Page 2: Consumers Purchasing Behaviour towards Green Product

2 | P a g e

Course Title: Seminar and Viva Voce

Course Code: BAN-100

Shahjalal University of Science & Technology

Sylhet, Bangladesh

Submitted To:

Chairman,

1st year 2nd Semester examination committee

Department of Business Administration

Shahjalal University of Science & Technology.

Supervised By:

Dr. Md. Monirul Islam

Associate Professor

Department of Business Administration

Shahjalal University of Science & Technology, Sylhet.

Page 3: Consumers Purchasing Behaviour towards Green Product

3 | P a g e

Names of the Students Registration No:

Nishat Jahan Rumi 2012731003

Sameul Sayem 2012731018

Abdullah Al Morshed 2012731033

Mehedi Hasan 2012731050

Dipta Kaushik Somadder 2012731067

Shuyeb Ahmed 2010731007

Submitted By:

Signature

Page 4: Consumers Purchasing Behaviour towards Green Product

4 | P a g e

Department of Business Administration

Shahjalal University of Science and Technology

August 27, 2014

Dr Md Monirul Islam

Associate Professor

Department of Business Administration

Shahjalal University of Science and Technology

Sylhet.

Subject: Letter of Submittal

Dear Sir,

We were assigned to prepare a seminar paper on the topic entitled “Green Consumption

Behavior "as the study part of the 2-credit course BAN-100.

Accordingly for collection of data we have investigated into the relevant literature, journals

and have conducted a survey on some Peoples in Sylhet City. We have collected data,

analyzed them and given some recommendations.

May we note here that, there has been no dearth of sincerity on our part to bring the issue under

study into proper focus. However, we would like to request you to consider if any error is found

in the report.

Finally, we would like to request you to accept our report and oblige thereby.

Thank you in advance for your kind assistance and advice in this connection.

Sincerely Yours,

Names of the Students Registration No: Signature

Nishat Jahan Rumi 2012731003

Sameul Sayem 2012731018

Abdullah Al Morshed 2012731033

Mehedi Hasan 2012731050

Dipta Kaushik Somadder 2012731067

Shuyeb Ahmed 2010731007

Page 5: Consumers Purchasing Behaviour towards Green Product

5 | P a g e

Names of the Students Registration No:

Nishat Jahan Rumi 2012731003

Sameul Sayem 2012731018

Abdullah Al Morshed 2012731033

Mehedi Hasan 2012731050

Dipta Kaushik Somadder 2012731067

Shuyeb Ahmed 2010731007

August, 27, 2014

Letter of Certificate

I am extremely pleased to declare that the following students have been given with the topic

for “Green Consumption Behavior” preparing their seminar paper. They have reviewed

all the literature and sources for collection and have done their assigned task. I have

supervised them throughout the preparation of the paper.

Signature

It’s also certify that the paper is an original one and has not been submitted elsewhere

previously for publication in any form.

I wish them all the best in their effort.

……………………………….

Dr Md Monirul Islam

Associate Professor

Department of Business Administration

Shahjalal University of Science and Technology

Page 6: Consumers Purchasing Behaviour towards Green Product

6 | P a g e

Acknowledgement

The study entitled “Green Consumption Behavior” been undertaken by the students of

the Department of Business Administration of 15th batch. This is an attempt to assess the

present situation of consumer’s buying behavior towards green product. As a field worker we

are not experienced. But we got spontaneous help which encouraged us to carry out our

task effectively. Really we have no words to convey our gratitude to our honorable

teacher and seminar supervisor, Dr Md Monirul Islam Associate Professor of Business

Administration Department, Shahjalal University of Science and Technology. Who has

influenced, motivated, directed and advised us enthusiastically. We are also grateful to

those people who participated in the survey to make this report.

Above all we also want to thank to everybody who helped us to make this report directly or

indirectly.

Page 7: Consumers Purchasing Behaviour towards Green Product

7 | P a g e

Executive summary

Studies on green consumption behavior in Bangladesh are neither popular nor conducted

carefully, especially empirical studies. With the aim of contributing to this research field, this

paper adopts a new approach to find out consumers perception and behaviors towards green

consumption by constructing a survey tool.

Studies on green consumption behavior towards green products in Bangladesh conducted

carefully, especially and empirically studied. The conceptual and hypotheses development are

grounded on related literature. With the aim of contributing to this research field, this paper

adopt to find out consumers perception and behavior towards green consumption. People are

now more concerned with ways to protect the environment. For instance, consuming green

product is one of the key initiatives that can be carried out by consumers. A consumer buying

behavior is influenced by cultural, social, personal and psychological factors. Green has

become a mainstream issue driving millions of consumers to find out how they can live a

more eco-friendly existence. This paper focuses on the changing consumer behavior towards

the usage of green products. According to the results of the analysis, environmental

awareness, green product features, green promotion activities and green price affect green

purchasing behaviors of the consumers in positive way.

Page 8: Consumers Purchasing Behaviour towards Green Product

8 | P a g e

Table of Contents

Chapter One: Introduction…………………………………………………….9

Introduction............................................................................................................................. 10

Literature Review ................................................................................................................. 11

Objectives ............................................................................................................................... 13

Methodology………………………………………………...................................................13

Chapter Two: Understanding Consumer and Green Buying Behavior .................................................................................................... 15

Consumer ................................................................................................................................. 16

Consumer Buying Behavior ..................................................................................................... 16

Green Consumers……………………………………………………………………………..18

Types of Green Consumers………………….….…………………………………………….19

Green Product Manufacturer of the World…………………………………..……………….22

Chapter Three: Data Analysis and Interpretation …………………..29

Chapter Four: Findings and Conclusion…………………………………47

Findings……………………………………………………………………………………….48

Conclusion……………………………………………………………………………………49

Chapter Five: Appendix…….………………………………………………….50

Reference……………………………………………………………………………………..51

Questionnaire……………………………………………………………..…………………..53

Page 9: Consumers Purchasing Behaviour towards Green Product

9 | P a g e

Chapter One: Introduction

Topics: Introduction

Literature Review

Objectives of the Study

Methodology of the Study

Limitations of the Study

Page 10: Consumers Purchasing Behaviour towards Green Product

10 | P a g e

Introduction

While globalization process continues in its full speed across the world, this process has also

brought some problems with it. Leading one of these problems is environmental problems that

affect all living beings negatively. These aforementioned environmental problems have started

to come to the agenda more and more in the recent years and people have started to talk these

negativities. Consumers now have worries about the future of the world and as results of this

mostly prefer environment friendly products.

Consumption decisions have changed towards products that are greener, more suitable and

more environmentally friendly due to the rise in consumers’ awareness of current

environmental matters. In developed countries, the green consumption movement has existed

for a long time and now has become increasingly popular. With higher incomes and

consumption awareness, green consumption has been improved in developing economies.

Green consumption is an important part of sustainable consumption - a pillar of green growth,

which is a development strategy that many countries are pursuing. However, green

consumption practice in Bangladesh in many facets - from consumers to enterprises to

government - is in its early stages. Research activities in this field are still not adequately

addressed by experts. There is a lack of in-depth and empirical studies, especially on green

consumption behavior. Meanwhile, green consumption is a part of the supply-demand

relationship; therefore understanding the intrinsic nature of green consumer behavior will help

governments and businesses grasp and meet the needs of consumers in the direction of “green”,

as well as the development of consumption trends in Bangladesh. This fact poses the challenge

to develop a survey tool for governments and businesses to use to actively explore and identify

the current situation of green consumption and its influential factors.

Page 11: Consumers Purchasing Behaviour towards Green Product

11 | P a g e

Literature Review:

The survey tool is built on the basis of green consumption concepts as well as the results from

previous research on factors affecting green consumption behavior. The concepts relating to

green consumption are relatively new and defined with various approaches. Green

consumption emphasizes environmental factors, contributing to sustainable development.

Alfred son (2004) explained that green consumption is related to the index of energy use and

CO2 emissions.

According to Carrigan et al (2004), people who buy environmentally friendly products are

called green consumers. Green consumption is related not only to consuming goods without

damage to the natural environment, but also to buying environmentally friendly products and

to recycling. Sisira (2011), Mansvelt& Robbins (2011) also have a comprehensive definition

of green consumption from the perspective which considers it a process through social

behaviors including purchase of bio-foods, recycling, reuse and limits to excessive use and

using an environmentally friendly transport system. In the framework of this study, the authors

approach the concept of green consumption as a series of activities: (1) green product purchase,

(2) green usage (such as saving, reusing, recycling, green packaging usage, and green waste

treatment) and (3) encouraging the community to purchase green products and use things in a

green way. In understanding green consumption, the concept of green products also needs

clarifying. Green products (eco-products or environmentally friendly products) are considered

as products that do not pollute the earth or damage natural resources and can be recycled or

conserved (Shamdasani et al, 1993). A product that has packaging materials that reduce any

negative environmental impact is a green product (Wasik, 1996). These products are usually

recognized by authorities and organizations with green labels – which identify environmental

criteria that green products meet that conventional products cannot.

One vital aspect of the green consumption theory is the factors that influence the decision to

buy green products. Many studies have been conducted to evaluate factors affecting green

consumption and have made important experimental findings about the positive relationship

between the intention to buy green products and age, income and education(Roberts, 1996;

Barr et al, 2003; Tikka et al, 2000). Schwepker& Cornwell (1991), Davis (1993) andSynodinos

(1990) have the same viewpoint that consumers’ attitudes towards an eco-label must show their

concern for eco labels. However, Pickett-Baker & Ozaki (2008) argue that a person with an

interest in the environment does not necessarily have to buy environmentally friendly products.

The influential group has significant impact on the formation of the intention and the

Page 12: Consumers Purchasing Behaviour towards Green Product

12 | P a g e

purchasing habits of consumers with conventional products in general, and green products in

particular. Buying decisions are also influenced by family factors (Grønhøj, 2006); society

(Chan, 2001); government (Chyong et al, 2006; Haron et al., 2005, Fraj& Martinez, 2006);

media (StefaniaValentini, 2011; Kang & James, 2007). The process from intention to actual

behavior is driven by product attributes. Researchers have identified several factors including

price and product quality (D'Souza et al, 2007), the company's environmental reputation

(Cornwell, 1991), and the reliability of environmental advertising (Thøgersen, 2000).

According to Tang et al (2004), consumers choose a product because of the nature of

environmentally friendly products; Diamantopoulos et al (2003) and Ganetai (2008) suggested

that the characteristics of traditional products such as brand name, price and quality are still the

most important factors that consumers consider when making a purchase decision.

Page 13: Consumers Purchasing Behaviour towards Green Product

13 | P a g e

Objectives

The purpose of conducting the research is to identify the factors that influence the

consumer to make them to purchase green products.

Another purpose of the research is to encourage people to buy green product Methodology

The word ‘Method’ derives from the Greek word ‘Meta’ and ‘Hodos’ meaning ‘a way ’. A

method involves a process or technique in which various stages or steps of collecting data are

explained and the analytical techniques are defined. According to Urdong, ‘A Method or

Methodology is the underlying principles and rules of organization of a philosophical system

or inquiry procedure’. A dictionary of Social Sciences observes, ‘methodology is the

systematic and logical study of the principles guiding scientific investigation’ (Gould and Kolb,

1964). In simple ‘a method is the way of doing something’.

Structure of paper

The seminar paper is both qualitative and quantitative. Data are presented through table and

graph, so it is quantitative, because of theoretical analysis it is qualitative.

‘Population’ of the Seminar Paper

All the people of Sylhet City Corporation are taken as ‘population’.

Selection of Sampling Design

200 questionnaires were distributed to a conveniently generated sample of a highly educated

segment of general population. 167 total questionnaires were returned with a response rate of

83.7 per cent. After examination only 140 questionnaires were found usable of which 59 per

cent of the respondents were males and 41 per cent females with mean age ranging from

21years to 30 years. The questionnaire was structured as follows. The first part contained

questions with Yes and No as two possible responses. These questions measured general

consumers’ knowledge about environmental issues, awareness of green products, trust in

performance of green products and their willingness to pay more for such products.

The questionnaire contains questions to measure general consumers’ environmental concern,

awareness of green products, trust in performance of green products and green buying behavior.

Page 14: Consumers Purchasing Behaviour towards Green Product

14 | P a g e

Collection of Information

Some of the data were used in this research are primary data, collected from the sources

and some secondary data were collected from websites and others sources.

Primary data are collected by the questionnaire and the personal interviewing system

of survey method is used.

Secondary data are collected from many journals, books, web sites etc.

Limitations

This research was conducted by generating a non-random sample and hence the results may

not be generalized beyond the sample frame. These results, however, support a generally

prevailing notion that more educated people tend to be green buyers and hence warrant a larger

study conducted on a randomly selected sample. Also, the present research was conducted

using a self-reporting questionnaire and hence respondents’ bias may be a concern, especially

in regard to the willingness to pay premium.

It is required relevant data to make any paper successful and meaningful. Our primary data

have been recorded about few numbers of people. It was hard to talk with householders due to

time limitations that eventually limit the paper in the relation of the world. Collecting data was

very rough and tough, because most of the householders was not agree to talk frequently rather

they were hesitating while making the survey and it was found that the responses vary from

person to person, so decision making about the report was so tough. This research work

required a large number of days than we got to present the huge information. We can summaries

our limitation of the study as follows-

1. Respondents were sometimes reluctant to fill the questionnaire.

2. Lack of work experience.

3. Lack of enough research papers on the topic.

4. Limited financial support.

5. Limited time.

Page 15: Consumers Purchasing Behaviour towards Green Product

15 | P a g e

Chapter Two: Understanding

Consumer and Green Buying

Behavior

Topics:

Consumer

Consumer buying behavior

Green Consumers

Types of Green Consumers

Green product manufacturer of the world

The situation of countries in terms of green products and green

production.

About Sylhet

Page 16: Consumers Purchasing Behaviour towards Green Product

16 | P a g e

Consumer:

An individual who buys products or services for personal use and not for manufacture or resale.

A consumer is someone who can make the decision whether or not to purchase an item at the

store, and someone who can be influenced by marketing and advertisements. Any time

someone goes to a store and purchases a toy, shirt, beverage, or anything else, they are making

that decision as a consumer.

The consumer is the one who pays to consume the goods and services produced. As such,

consumers play a vital role in the economic system of a nation. In the absence of effective

consumer demand, producers would lack one of the key motivations to produce: to sell to

consumers. The consumer also forms part of the chain of distribution.

Typically, when business people and economists talk of consumers, they are talking about the

person as consumer, an aggregated commodity item with little individuality other than that

expressed in the decision to buy or not to buy. However, there is a trend in marketing to

individualize the concept. Instead of generating broad demographic profiles and psycho-

graphic profiles of market segments, marketers have started to engage in personalized

marketing, permission marketing, and mass customization.

Consumer buying behavior:

Possibly the most challenging concept in marketing deals with understanding why buyers do

what they do (or don’t do). But such knowledge is critical for marketers since having a strong

understanding of buyer behavior will help shed light on what is important to the customer and

also suggest the important influences on customer decision-making. Using this information,

marketers can create marketing programs that they believe will be of interest to customers.

Page 17: Consumers Purchasing Behaviour towards Green Product

17 | P a g e

As you might guess, factors affecting how customers make decisions are extremely complex.

Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make

things more interesting. Since every person in the world is different, it is impossible to have

simple rules that explain how buying decisions are made.

So, Consumer behavior is the study of individuals, groups, or organizations and the processes

they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy

needs and the impacts that these processes have on the consumer and society.

How consumers buy: This process is presented in a sequence of 5 steps as shown below:

However, whether a consumer will actually carryout each step depends on the type of purchase

decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to

the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort

is involved in making a purchase decision. In cases of routine, brand loyal purchases consumers

may skip several steps in the purchasing process since they know exactly what they want

allowing the consumer to move quickly through the steps. But for more complex decisions,

such as Major New Purchases, the purchasing process can extend for days, weeks, months or

Page 18: Consumers Purchasing Behaviour towards Green Product

18 | P a g e

longer. So in presenting these steps marketers should realize that, depending on the

circumstances surrounding the purchase, the importance of each step may vary.

Green consumers:

The green consumer is generally defined as one who adopts environmentally friendly behaviors

and/or who purchases green products over the standard alternatives. Green consumers are more

internally-controlled as they believe that an individual consumer can be effective in

environmental protection. Thus, they feel that the job of environmental protection should not

be left to the government, business, environmentalists and scientists only; they as consumers

can also play a part. They are also less dogmatic and more open-minded or tolerant toward new

products and AyselBoztepe ideas. Their open-mindedness helps them to accept green products

and behaviors, more readily (Shamdasani at al. 1993:491).

According to the consumption report of the EU (Consumers in Europe), it is found that ten

percent of the consumers recognize the ecological product labels or green energy labels on the

products sold in the supermarkets. Although the companies in our country progress with

significant speed in terms of the environment, it is not possible yet for us to say that they have

reached the same level regarding consumer sensitivity. In Western implementations,

environmental awareness and the “green policy” in business organizations are reflected in the

business as result of the environmental awareness of the consumers. The most recent and

classical example regarding this subject is airline transportation industry. In airline

transportation, large amount of carbon emission released by the planes into the environment is

a matter in question. British Airway offers the following “relieving” solution to people who

have to travel by plane but feel disturbed due to the carbon emission: to give financial support

to a fund providing researches intended to reduce carbon emission. The carbon emission,

released during the distance covered is calculated and a contribution of 12.08 Euro per ton can

be paid per person. Carbon dioxide emission per one passenger during an Istanbul-London

flight reaches 29 kilograms, and with this fund, which was established on a voluntary basis,

environmentally conscious passengers can donate 3.25 Euro and feel relaxed. On the other

hand, Turkish Airlines has stated “we achieved fuel savings and this saving reduced carbon

emission” in a statement they made in October, demonstrating that the firm has a more low

profile “temporary” approach (Naturalhaber, 2010).

Some defines green consumer as ‘those actively seek and support those products satisfy their

needs that are having less impact on environment’. All consumers are potentially green

Page 19: Consumers Purchasing Behaviour towards Green Product

19 | P a g e

consumers. When a consumer has choice to buy from two identical products, the consumer will

prefer to buy environmentally friendly product. One of the research suggest that there is no

‘significant relation between gender and green behavior’ .However in turn research of Mainieri,

T. et al. (1997), Green buying: The influence of environmental concern on consumer behavior,

found that women are generally more environmentally conscious and willing to buy green

products. Other researcher states that shows that income and environmental education have

positive relationship and direct impact on green behavior. Pac¸ O, A. and Raposo, M.,

investigate a parallel relation is associated with education and environmental consciousness.

One of the prominent research discovered a positive relationship between environmental

knowledge and level of an education. Whereas Kinnear, T. et al. found that there is no

correlation exit between educating the consumers and environmental issues. Samdahl, D., &

Robertson, R. demonstrate a negative relationship.

According to another researcher distinct market segments like, demographic variables such as

age, income and education are positively related to the consumer attitude in environmental

research show that ‘younger individuals are likely to become sensitive to environmental

issues’. Young consumers in any market constitute as a heavy-spending segments.

Moses, E. said most of the researchers’ studies shows that younger individuals show a greater

propensity to adopt a more Environmentally-friendly behavior and difficult to establish relation

between gender and green consumption. Kassaye, W. et al. pointed out that the existence of

environmentally conscious consumers in food products packaged with recycled materials has

created a demand in niche markets for green power.

A consumer, who is knowledgeable about environment, will tend to make ‘green purchase’.

Types of Green Consumers:

The study divided consumers into four groups based on their level of eco-consciousness. By

observing consumer buying behaviors, the study identified key buying motivations for each

group, as well as major purchasing drivers.

According to the study, each group is distinctive, both in its interest in green and its key

values.

True blue greens: This group is characterized by business consumers who are-

Highly committed to environmental products

Buying environmental products whether it leads high cost

Avoid products that are not made on environmental concern

Page 20: Consumers Purchasing Behaviour towards Green Product

20 | P a g e

Highly involved in pro-environmental activities

Make monetary contributions to environmental issues

Greenback Greens: This group is similar to the True blues. However, greenbacks are-

Willing to pay premium for environmentally sound products

Sometimes they switch to another products if the environmental products are not

available or cope with the lifestyle

Sprouts: This group doesn’t usually purchase green products but-

Capable of doing so, if they are marketed to them in an appropriate way

Tend to believe in environmental causes only in theory, not in practice

They rank well above companies overall on when it comes to environmental

requirements and standards. This makes the group a key swing group

Grousers: Grousers are-

Not committed to environmental products

Not believe that they are capable of effecting change

Tend to claim that they have many reasons for not doing more for the environment

Basic browns: These business consumers-

Do not think about the environmental issues

Expose that it is not necessary to do many things for the environment

Emphasize the profit only

May harm the environment

Green Washing:

The term “green washing” refers to using green marketing to eye wash the customers. The

primary objective of green washing is to provide consumers with the feeling that the

Page 21: Consumers Purchasing Behaviour towards Green Product

21 | P a g e

organization is taking the necessary steps to responsibly manage its ecological footprint but in

reality such things are absent. The main purpose is to increase profits. The term green washing

was first used by environmentalist Jay Westerveld when objecting to hotelier's practice of

placing notices in hotel rooms which asked their guests to reuse towels to “save the

environment”.

Seven Claims of Green Washing:

DON'T - make factual claims like “carbon neutral” or “wholly recyclable”

unless you can substantiate them.

By testing the product and keeping a record of tests, an advertiser should be able

to demonstrate that claims about the product are honest and truthful.

DON'T - use vague terms.

The use of terms such as sustainable, green, non-polluting, environmentally-

friendly, earth-friendly, earth-smart, eco-safe, essentially non-toxic & ozone-

friendly have been found to be misleading. Using qualified or comparative claims

such as “greener” and “friendlier” have been acceptable if clear and substantiated.

DON’T - use of the hidden tradeoff.

A claim suggesting that a product is ‘green’ based on a narrow set of attributes

without attention to other important environmental issues-such as greenhouse gas

emissions, or chlorine use in bleaching may be equally important.

DON’T - use of irrelevance information.

An environmental claim that may be truthful but is unimportant or unhelpful for

consumers seeking environmentally preferable products. ‘CFC-free’ is a common

example, since it is a frequent claim despite the fact that CFCs are banned by law.

DO - Avoid using worship.

A product that, through either words or images, gives the impression of third-

party endorsement where no such endorsement exists; fake labels, in other words.

Page 22: Consumers Purchasing Behaviour towards Green Product

22 | P a g e

DO - make the basis of any comparisons clear.

If, for example, an advertisement for a car claims that it is “better for the

environment” or “has lower emissions,” it should be clear which cars are being

compared.

DO - make it clear if there is a significant division of scientific opinion.

Also state that evidence is inconclusive about a particular environmental issue

that is relevant to your advertisement.

Green Product manufacturer of the world:

According to some websites, there are several companies who claims to be green. But after

conducting some research, we listed only 2,200 companies that can be vouched for truly

green or dark green.

Every year, Newsweek evaluates the top 500 global and top 500 U.S. companies, all of which

are publicly traded, to determine how green the companies are. According to the most recent

report, the 2012 Newsweek Green Rankings report, the following companies are the top 20

on the global list:

Rank

Company

Country

Industry Sector

Impact

Management

Disclosure

Green

Score

Santander

Brasil

Brazil

Financials

88.5

88.4

61.5

85.7

2

Wipro

India

Information

Technology &

Services

70.2

100

88.3

85.4

3

Bradesco

Brazil

Financials

87.9

75.9

99.9

83.7

Page 23: Consumers Purchasing Behaviour towards Green Product

23 | P a g e

4

IBM

United

States

Information

Technology &

Services

78.9

87

82.9

82.9

5

National

Australia

Bank

Australi

a

Financials

82

79.5

99.8

82.7

6

BT Group

United

Kingdo

m

Telecommunic

ations

77.3

84.2

99.8

82.7

7

Munich Re

German

y

Financials

87.6

78.2

79

82.5

8

SAP

German

y

Information

Technology &

Services

80.7

78.9

99.8

81.8

9

KPN

Netherl

ands

Telecommunic

ations

76.1

81.3

98.3

80.6

10

Marks &

Spencer

Group

United

Kingdo

m

Retailers

65.7

92

95.8

80.5

11

Tata

Consultancy

Services

India

Information

Technology &

Services

74.9

81.8

98.9

80.4

Page 24: Consumers Purchasing Behaviour towards Green Product

24 | P a g e

12

Generali

Group

Italy

Financials

84.8

78.4

67.1

80.1

13

Bell Canada

Enterprises

Canada

Telecommunic

ations

74.3

83.2

91.5

80

14

Nokia

Finland

Technology

Equipment

68.3

88.2

95.2

79.9

15

Telefonica

Spain

Telecommunic

ations

75.1

80

99.7

79.8

16

Santander

Spain

Financials

81.4

73.6

99.7

79.8

17

Fujitsu

Japan

Technology

Equipment

68.6

88

91.9

79.7

18

NKSJ

Holdings

Japan

Financials

86.2

73.6

70.5

79

19

Infosys

India

Information

Technology &

Services

64.6

88.5

99.9

78.9

20

Telefonica

Brasil

Brazil

Telecommunic

ations

74.8

83.4

76.1

78.8

Page 25: Consumers Purchasing Behaviour towards Green Product

25 | P a g e

The situation of countries in terms of green products and green

production:

Lots of countries are “going green” or in other terms adopting renewable energy solutions as a

measure of protecting themselves against the ill effects of global warming or climate change.

Some of the strategies countries employ to ensure less and less emitted carbon into the

atmosphere include; recycling, using renewable energy like wind or solar, promoting the use

of green products, driving hybrid vehicles, etc.

Every year countries are ranked using the Environmental Performance Index (EPI), a method

which basically measures the performance of over 163 world governments’ environmental

policies in combating climate change and fostering environmental conservation. A list was

recently availed detailing the strides that countries are making in an effort to go green.

Here are the 10 greenest countries in the world.

1. Iceland

Iceland is the top green destination in the world today. The country’s breathtaking nature aside,

the people of Iceland have made remarkable progress in implementing green energy policies.

For instance, geothermal is widely used to generate electricity; while heating needs have been

taken care of by use of hydrogen. The country’s main energy source is renewable energy

(geothermal and hydrogen) which accounts to over 82% of the total energy used. The country

is really working towards being 100% green energy efficient. Above all, the country policies

encourage things like recycling, use of eco fuel, use of green products, minimal driving among

a host of other eco-friendly measures.

2. Switzerland

Switzerland is the second greenest country on the planet, after Iceland. The country has, in the

past, occupied the number one spot as the greenest country on earth. The Switzerland

government and its people have achieved remarkable success in creating a greener society.

Apart from using renewable energy and eco-friendly products, the people are generally brought

to task on the importance of ensuring that they live in a clean environment. For instance,

disposing trash generally attracts a certain amount of fees. Additionally people do not use cars

very often, instead opting to use bicycles for transportation especially when strolling in city. In

fact in some towns cars are actually prohibited.

Page 26: Consumers Purchasing Behaviour towards Green Product

26 | P a g e

3. Costa Rica

Even though it is small country, the great things of the country make it better than others. It

lies in Latin America and has very sound policies on environmental damage. The energy from

renewable sources is used as a source of power for the country. The government states that by

2021, this country will be carbon neutral country. To conserve the forests, the country

undertook massive reforestation techniques and planted more than 5 million trees in just 3-5

years.

4. Sweden

Sweden is a top ranking destination when it comes to conserving the environment through the

use of eco-friendly products. Aside from using green products, the country scored heavily on

the index largely as a result of the fact that its people are deeply advanced in the implementation

to phase out the use of fossil fuels by the year 2020. The country has also received numerous

praise for the way they have been able to protect their forest cover. Additionally, the country

is well known for its use of dust for heating-produced by the vibrant lumbar industry. There

are plenty of other green strategies that the country employs to ensure that its population does

not suffer from the effects of global warming.

5. Norway

In the era of global warming and severe climate change, Norway has acted rapidly to improve

the circumstances. We all know that the Northern part of Norway is very close to Arctic.

Because of that the impact of global warming is huge in Norway. Thus, Norway has to act as

soon as possible in order to conserve their green environment. The country is already doing its

part by using eco fuels and renewable energy. Recycling is also a very regular thing among the

people of Norway.

Page 27: Consumers Purchasing Behaviour towards Green Product

27 | P a g e

6. Mauritius

Mauritius the only African country in the EPI performance index in environmental

conservation. The country administration has been at the forefront of promoting the use of eco-

friendly products as well as recycling. Mauritius generally powers all its operations using

energy generated from hydroelectricity.

7. France

France is a country which uses renewable sources of energy and is doing well when we think

of environmental conservation. It has impressed the world by using eco fuels, doing organic

farming, using renewable energy sources such as solar power. The solar energy used in France

is initiated by the government by reducing the taxes of those who decides to use solar panels

in their homes and offices for power. Many other products such as straw bales in constructions

and others are used as they are eco-friendly.

8. Austria

Austria has, over the years, implemented green energy policies to a great success. The countries

latest green policy involves collaborating with the Czech Republic to create eco-friendly

gardens along the borderline of the two countries. Some of the floras cultivated in this noble

initiative include; herbs, fruits, trees, flowers etc. No pesticides are used in the general

maintenance of the garden.

9. Cuba

Cuba is another country which focuses on implementing environmental solutions. The main

focus of the people there is to prevent any further emission of carbon in the atmosphere. The

company has banned and illegalized use of certain pesticides as they contribute largely in

polluting the environment. Most of the power in the country comes from hydroelectricity. The

government there made a green energy policy which ensures the connectivity of each house to

the nearby hydro station.

Page 28: Consumers Purchasing Behaviour towards Green Product

28 | P a g e

10. Columbia

Columbia is a country in South America which has taken many great steps for making the

country Green and found many green energy solutions. Initially it was the victim of

deforestation, but it later took many steps and ensured no further environmental damage. The

country is very focused in conserving the environment and its resources. Some steps taken by

them to stay environment friendly are: using Bamboo sticks replacing steel in construction,

allocating National Parks to save endangered species, promoting the eco-friendly products,

reducing deforestation, etc.

Page 29: Consumers Purchasing Behaviour towards Green Product

29 | P a g e

Chapter Three: Data analysis and

Interpretation

Page 30: Consumers Purchasing Behaviour towards Green Product

30 | P a g e

Data analysis and Interpretation:

1. Importance of Environment Friendly product

Options Frequency Percentage

Yes 133 95

No 7 5

Total 140 100 Source: Survey Data

When we asked people if they knew about environmental friendly product then 95% of

them say yes and 5% of them say no

Page 31: Consumers Purchasing Behaviour towards Green Product

31 | P a g e

2. Experience on purchasing green product

Options Frequency Percentage Yes 112 80

No 28 20

Total 140 100 Source: Survey Data

When we asked people about the experience on buying green products then 80% of them

say yes and 20 % Sayed that they don’t have any.

Page 32: Consumers Purchasing Behaviour towards Green Product

32 | P a g e

3. Usage of poly bags in shopping

Options Frequency Percentage

Yes 98 70

No 42 30

Total 140 100 Source: Survey Data

When we asked people about using of poly bags when they go shopping then 70% of

them said yes they use poly bags when they go shopping, and 30% of them said they

don’t use it when they go shopping.

Page 33: Consumers Purchasing Behaviour towards Green Product

33 | P a g e

4. The consideration of purchasing green product

Options Frequency Percentage

Yes 56 40

No 84 60

Total 140 100 Source: Survey Data

When we asked people before purchasing product are the considered the green product.

Then 40% of them say yes and 60% of them say no

Page 34: Consumers Purchasing Behaviour towards Green Product

34 | P a g e

5. Knowledge about benefits of green product

Options Frequency Percentage

Yes 133 95

No 7 5

Total 140 100 Source: Survey Data

When we asked people that are they know the benefits of the benefits of green product.

Then they said that yes they know the benefits of green product and the other 5% said that

they don’t know the benefits of green product.

Page 35: Consumers Purchasing Behaviour towards Green Product

35 | P a g e

6. Regularity of purchasing green product

Options Frequency Percentage

Yes 28 20

No 112 80

Total 140 100 Source: Survey Data

We asked people that did they buy green product regularly then 28 people out of 140 said

that they buy green product regularly, and 112 out of 140 said that they don’t buy green

product regularly.

Page 36: Consumers Purchasing Behaviour towards Green Product

36 | P a g e

7. Purchasing product approved by BSTI

Options Frequenc

y Percentage

Yes 115 82.14286

No 25 17.85714

Total 140 100 Source: Survey Data

We asked people Do they buy product which approved by BSTI, then 115 people out of

140 said that they do, and 25 people out of 140 said that they don’t do

Page 37: Consumers Purchasing Behaviour towards Green Product

37 | P a g e

8. Purchasing of green product more than common product

Options Frequency Percentage

Yes 18 12.85714

No 122 87.14286

Total 140 100 Source: Survey Data

We asked people do they buy green product more or common product than 18 people out

of 140 said that they do and 122 people out of 140 said that they don’t do.

Page 38: Consumers Purchasing Behaviour towards Green Product

38 | P a g e

9. Purchasing product based on the information given on its package

Options Frequency Percentage

Yes 107 76.42857

No 33 23.57143

Total 140 100 Source: Survey Data

After asking people about their buying behavior then we know that 107 people out of 140

said that they Purchase product based on the information given on its package and 33

people out of 140 said that they don’t Purchase product based on the information given on

its package.

Page 39: Consumers Purchasing Behaviour towards Green Product

39 | P a g e

10. Willingness to pay excess money for green product

Options Frequency Percentage

Yes 80 57.14

No 60 42.86

Total 140 100 Source: Survey Data

Then we asked people are they willing to pay excess money for that then we find that 80

people out of 140 said that yes they are willing to pay excess money and the other 60 are

not willing to pay excess money.

Page 40: Consumers Purchasing Behaviour towards Green Product

40 | P a g e

11. The kinds of green product bought

Options Frequency Percentage Clothes & wears 91 65

Organic Food 28 20 Electrical Appliance 11 7.86

Furniture 7 5

Others 3 2.14 total 140 100

Source: Survey Data

After querying about the green products they purchased, they said that most of it is (65%)

Cloths and wears. 20% people bought Organic food and 5% of them furniture. Only

2.14% of them bought other Products.

Page 41: Consumers Purchasing Behaviour towards Green Product

41 | P a g e

12. The attracting elements to buy green product

Options Frequency Percentage Acceptable Price 21 15

Designer/Company Image 35 25 Actual Green Product Impact 49 35

Appearance 10 7

Packaging/Promotion 7 5 Durable 4 3 Others 14 10 Total 140 100

Source: Survey Data

When we asked people what they find most attracting when they buy green products.

35% of them argued that it is Actual Green Product Impact, 25% of them said that it is the

company or designers impact acting on their purchasing behavior. 15% of them said if the

products are reasonably priced, they would buy that product. 7% and 5% of the

consumers buy products for Appearance and Packaging/Promotion accordingly. Only 3%

of people vouch for durability.10% of the samples buying behavior depend on other

attracting factors.

Page 42: Consumers Purchasing Behaviour towards Green Product

42 | P a g e

13. Reason of purchasing common product

Options Frequency Percentage Acceptable Price 63 45

Designer/Company Image 17 12.14 Get used to it 24 17.14 Appearance 7 5

Packaging/Promotion 14 10 Durable 11 7.86 Others 4 2.86 Total 140 100

Source: Survey Data

Though they knew green products are healthy way to live, they still buys common

products because, 45% of them thinks they are priced lower than the green products. 17%

of the consumers got used to the common products. 12% of the people thinks designer

impact is essential in buying the common products. 10% people thinks common products

has a great advantage over green products in terms of packaging and promotion as they

Page 43: Consumers Purchasing Behaviour towards Green Product

43 | P a g e

buy common products because of it. *% of people thinks, common product is more

durable than green products and 3% of people think of other factors that allure them to

buy common products.

14. Restriction of choosing green product

Options Frequency Percentage

Green Product Assurance 21 15 Not easy to find 53 38

Relatively Expensive 60 43 Others 6 4

Total 140 100 Source: Survey Data

The main resistance of buying a green product is its expensiveness. 43% of people marks

it as the main restriction of buying a green product. And in local context of Sylhet 38% of

people thinks that, green product is very hard to find in this area. Some people are afraid

of being green washed though the percentage is relatively low, only 15%. 4% of people

thinks there are some other factors that restricts the green products.

Page 44: Consumers Purchasing Behaviour towards Green Product

44 | P a g e

15. Product lasted more time

Options Frequency Percentage Yes 31 22 No 109 78

Total 140 100 Source: Survey Data

We asked people that are the green product lasted more times? Then we find that 22%

think that yes it lasted more times and 78% think that no it not lasted more times.

Page 45: Consumers Purchasing Behaviour towards Green Product

45 | P a g e

16. Satisfaction after using green product

Options Frequency Percentage Yes 94 67 No 46 33

Total 140 100 Source: Survey Data

We asked people about their satisfaction about green product then we find that 67% are

satisfied and 33% are not.

Page 46: Consumers Purchasing Behaviour towards Green Product

46 | P a g e

22.14

17. The product is recyclable

Options Frequency Percentage Yes 123 87.86 No 17 12.14

Total 140 100 Source: Survey Data

77.86

Yes

No

We asked people that do they think the green product is recyclable or not then 123 people

out of 140 said that yes they think and the other 17 people said that out of 140 they don’t

believe in its recyclability.

Page 47: Consumers Purchasing Behaviour towards Green Product

47 | P a g e

Chapter Four: Findings

& Conclusion

Topics: Findings

Conclusion

Page 48: Consumers Purchasing Behaviour towards Green Product

48 | P a g e

Findings

The consuming percentage of Green products in Sylhet is low

There are not enough knowledge about Green Products in local peoples

Manufacturer of Green Products in Sylhet is not significantly present.

People are not so much concern about environment when they purchase/consume

goods

Polythene bag is prohibited in Bangladesh but the users of polythene bag hold the top

position. Polythene bag seriously affect the environment

Green Products are not available in Sylhet.

Most of the Green Products do not last long.

Green Products are recyclable.

Consumers do not want to buy Green Product for its excess price.

Green Product is not easy to found.

Page 49: Consumers Purchasing Behaviour towards Green Product

49 | P a g e

Conclusion

Our research shows that, some factors have a great influence among all of the factors that

indicated that marketing managers should concern with the superior value of the eco-friendly

products. Consumers have strong emphasis on the end-value of the products in order to repeat

purchases. The results of the satisfaction of the consumers would lead to increase in sales,

market shares and brand loyalty. Many scholar agreed consumers are concerned on the

satisfaction of the products and activities of the companies not harm to the environment.

However, the product quality should not be overlooked since consumers relate price with

quality when making purchasing decision, and consumers research not only green products

claiming environmental values but also products with high quality, because consumers are not

ready to make a compromise on quality just for the benefits green attributes and for the moment

green products seem still have less quality than conventional ones as our findings.

Page 50: Consumers Purchasing Behaviour towards Green Product

50 | P a g e

Chapter Five:

Appendix

Items: References

Questionnaire

Page 51: Consumers Purchasing Behaviour towards Green Product

51 | P a g e

References:

[1] Alfredsson, E.C, ‘‘Green’’ consumption-no solution for climate change. Energy, 29,

2004, pp.513-524.

[2] Barr, S., Gilg, A., & Ford, N., Environmentalism in Britain Today, 2003. Retrieved

January 10, 2008 from the AllBusiness Web site:

http://www.allbusiness.com/professionalscientific/architecturalengineering-related/659398-

1.html. Accessed on Febuary 14th 2012.

[3] Burns, Alvin; Burns, Ronald, Basic Marketing Research (Second ed.). New Jersey:

Pearson Education. 2008, p. 245. ISBN 978-0-13-205958-9.

[4] Carrigan, M.; Szmigin, I.; and Wright, J., Shopping for a better world? An interpretive

study of the potential for ethical consumption within the older market. The Journal of

Consumer Marketing, 21(6), 2004, 401-417.

[5] Chan, R. Y. K., Determinants of Chinese Consumers’ Green Purchase Behavior.

Psychology & Marketing, 18(4), 2001, 389-413.

[6] Abdul-Muhmin, A.G. (2007). Exploring consumers’ willingness to be environmentally

friendly. International Journal of Consumer Studies, 31, 237-247.

[7] Arbutnoth, J., & Lingg, S. (1975). A comparison of French and American environmental

behaviours, knowledge, and attitudes. International Journal of Psychology, 10, 275-281.

[8] Chen, T.B., & Chai L.T. (2010). Attitude towards environment and green products:

Consumers perspective. Management Science and Engineering, 4 (2), 27-39.

[9] Gardner, William L., and Mark J. Martinko (1996). Using the Myers-Briggs Type

Indicator to Study Managers: A Literature Review and Research Agenda. Journal of

Management, 22(1), 45-83. http://www.knowthis.com/principles-of-marketing-

tutorials/consumer-buying-behaviour/ http://www.udel.edu/alex/chapt6.html

[10] http://greenliving.nationalgeographic.com/going-green-home-products-2370.html

[11]http://www.nytimes.com/2011/04/22/business/energy

environment/22green.html?pagewanted=all&_r=0 http://www.thedailygreen.com/green-

homes/eco friendly/green-products-

[12] Schwartz, S.H. (1994), ``Are there universal aspects in the structure and contents of

human values?’’, Journal of Social Issues, Vol. 50 No. 4, pp. 19-45.

[13] Sciencedaily, (2011), Energy Conservation on [April 5, 2010] from

http://www.sciencedaily.com/articles/e/energy_ conservation.htm

[14] Ecolabelling green consumerism, (2011), [August 06, 2011]

http://www.naturskyddsforeningen.se/inenglish/ Ecolabelling/(Aug 01, 2011)

[15] Macdonald, S,. et al. (2006), Sustainability: Consumer Perceptions and Marketing

Strategies. Business Strategy and the Environment, 15, 157-170.

Page 52: Consumers Purchasing Behaviour towards Green Product

52 | P a g e

[16] Clem W (2008), “5 Things you need to know about going Green”, Downloaded from

http:/ /www.greencar.com/articles/5- things-needgoing- green.php on 18/10/2013.

[17] http://www.ijmrbs.com/currentissue.php

[18] Brown M (2003), “Buying or Browsing? An Exploration of Shopping Orientations and

Online Purchase Intention”, European Journal of Marketing, Vol. 37, Nos. 11/12, pp. 1666-

1684

[19] Phau I and Ong D (2007), “An Investigation of the Effects of Environmental Claims in

Promotional Messages for Clothing Brands”, Marketing Intelligence and Planning, Vol. 25,

No. 7, pp. 772-788.

[20] Anderson, R.C. and Hansen, E.N. (2004). “The impact of environmental certification on

preferences for wood furniture: A conjoint analysis approach”, Forest Product Journal, 54 (3),

42-50.

[21] Ottman, J.A. (2000). “It’s not just the environment, stupid”. Retrieved August, 2004,

downloadable at http://www.greenmarketing.com/articles/IB_Sept00.html.

[22] Ottman, J.A. and Terry, V. (1998). “Strategic marketing of greener products”, Retrieved

December,2004, from http://www.greenmarketing.com/articles/JSP1Apr98.html.

[23] http://www.goodwithmoney.co.uk/servlet/Satellite/1200903577501,CFSweb/P

age/GoodWithMoney [25.06.08]

[24] http://sdrnadmin.rechord.com/wpcontent/

uploads/motivatingscfinal_000.pdf

[25] Haron, S.A., Paim, L. and Yahaya, N., Towards sustainable consumption: An

examination of environmental knowledge among Malaysians. International Journal of

Consumers Studies, 29(5), 2005, International Journal of Intercultural Relations, 8, 301±330.

http://www.allbusiness.com/professionalscientific/ architectural-engineering-related/659398-

1.html. Accessed on Febuary 12th 2012. [26] Roberts JA., Green consumers in the 1990s: Profile and implications for advertising.

Journal of Business Research, 36, 1996, 217-231.

[27] Wasik, J.F., Green marketing and management: A global perspective. Cambridge, Mass:

Blackwell Publishers Inc., 1996.

[28] http://www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-

behaviour/

[29] http://www.udel.edu/alex/chapt6.html

Page 53: Consumers Purchasing Behaviour towards Green Product

53 | P a g e

Department of Business Administration

1st year 2nd semester

Shahjalal University of Science and Technology, Sylhet-3114, Bangladesh.

Questionnaire

Topics: Consumer purchasing Behavior toward Green Products Please answer the following question to help and support our study (information

will only use to prepare the report and must be confidential)

Profile of the person:

Name of the respondent:

Age:

Contact no.:

1. Do you think environmental friendly is important?

A- YES

B- NO

2. Have you ever purchased green product?

A- YES

B- NO

3. Do you uses poly bag when go shopping?

A- YES

B- NO

4. When purchasing a product, will you first consider green product?

A- YES

B- NO

5. Do you know the benefits of green products?

A- YES

B- NO

6. Do you always purchase green product?

A- YES

B- NO 7. Are you buying products approved by BSTI?

A- YES

B- NO

8. Are you purchased green product more than common product?

A- YES

B- NO

Page 54: Consumers Purchasing Behaviour towards Green Product

54 | P a g e

9. Do you buy the products based on the information given on the products package?

A- YES

B- NO

10. Will you pay excess money for the green products?

A- YES

B- NO

11. What kind of green product have you brought? ( You can choose more than one)

A- Clothes & wears

B- Organic Food C- Electrical Appliance

D- Furniture

E- Others 12. What element(s) attracting to buy green product? (You can choose more than one)

A- Acceptable Price

B- Designer/Company Image C- Actual Green product Impact

D- Appearance

E- Packaging/Promotion

F- Durable

G- Others 13. Reason of purchasing common products? (You can choose more than one)

A- Acceptable Price

B- Designer/Company Image C- Get used to it

D- Appearance

E- Packaging/Promotion

F- Durable

G- Others 14. What is the most restriction of choosing green product?

A- Green product assurance

B- Not easy to find C- Relatively Expensive

D- Others

15. Is the green product lasted more time?

A- YES

B- NO

16. Are you satisfied after using green products?

A- YES

B- NO

17. Is that recyclable?

A- YES

B- NO