Roper Organizations Green Consumer Classification Model Marketing Essay
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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.
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