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Final Term Paper Am

This term paper explores the gap between awareness of green products and actual purchasing behavior, highlighting that despite increased awareness of environmental issues, consumers often do not translate this awareness into purchase intentions. Factors influencing this gap include corporate image, consumer attitudes, demographic characteristics, and price sensitivity. The study aims to identify these factors and their impact on consumer behavior towards green products, emphasizing the importance of green marketing in fostering sustainable consumer practices.
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0% found this document useful (0 votes)
12 views8 pages

Final Term Paper Am

This term paper explores the gap between awareness of green products and actual purchasing behavior, highlighting that despite increased awareness of environmental issues, consumers often do not translate this awareness into purchase intentions. Factors influencing this gap include corporate image, consumer attitudes, demographic characteristics, and price sensitivity. The study aims to identify these factors and their impact on consumer behavior towards green products, emphasizing the importance of green marketing in fostering sustainable consumer practices.
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TERM PAPER

IDENTIFY THE GAP BETWEEN GREEN PRODUCT AWARENESS AND


GREEN PRODUCT PURCHASE.
INTRODUCTION
The rise in environmental threats such as pollution, climate change and depletion
of ozone layer, global warming is a serious issue in the world and it is caused by
industrial process, technological development. It can say that the earth is a place
for the human and other creatures to live in on the under threat. The various new
virus bird flu, swing flu, covid-19 are the proof to show that the earth has been
highly polluted which effects the physical condition of the human life give rise to
drastic change in consumer behavior towards environmentally friendly products
(Green products).
We can see that the people know that ‘Green Products’ are natural products, these
products are safe for human life and even good for environment which means they
are aware about green products. But this awareness is not resulting into green
purchase intention, there are some factors because of which there is a gap between
Green Product awareness and Green Product purchase intention. The intention of
the study is to find out the factors which effect the consumers purchase intention.
At the start the focus was only on pollution but in growing years the sustainability
and clean technologies were included to maintain the relationship between
sustainability with consumer and the social and natural environment which can be
done by minimizing the impact of business activities on the environment like
production sales, consumption and disposal. In this phase the green marketing
takes into consideration environmental protection requirements in
production ,product design, packaging and advertising. Green marketing refers to
the modification on marketing whose function is and strategic opportunity as it
has double effects on business people and society as the users.
Environmental protection activities encourage consumer to support these activities
by purchasing green products. Green marketing is a tool for sustainable
development which provide strong brand image activities which can change the
product design , production process, packaging and advertisement. Creating green
products is the premise for the green marketing, green products are these products
that are safe and environmentally friendly products which do not pollute the earth
or negatively affect the natural resources these products can be recycled and the
ingredients and packaging cannot threaten the environment it contain less toxic
chemical substances to minimize their impact on environment these means that
green products are produced to prevent, limit, reduce and correct harmful
environmental impacts concerning water, air and soil. At the parallel these products
are potential to aggregate long term benefit, reduce consumer stress and mitigate
consumer responsibility for the environment while maintain its positive attributes.
Which means that product has some or no negative impact on environment or
public health.
Today adaption to become green is not only the basic needs but also the
opportunity for company and consumer (Vincent 2012).the word ‘green’ is similar
to ‘organic’ ‘sustainable’ and ‘healthy’. The threat of environmental issues the
concept of going green has gained momentum. Healthy lifestyle and clean
environment perspective has changed their mind set, the consumers now usually
prefer health, safe, chemical free products.
The increasing public awareness of environmental issues develops an interest in
green product studies. Pressure from stakeholders and community members urges
the community to change their lifestyle more environmentally friendly way.
Consumers often find choices related to the feeling of responsibility to the
environmental issue in their daily lives. Interest in food products with eco-friendly
characteristics has grown significantly in the last few decades. Awareness of being
green has hit global consumers has become a community movement that brings a
real impact. Therefore, it becomes a green consumerism movement of green
products demand. Consequently, it further encourages companies to develop green
marketing strategies to manifest social responsibility and a good corporate image.
Green marketing is considered a business committed to developing safe and
environmentally friendly products. Green product is commonly called as an
environmentally friendly product. Green products do not harm consumers. thus, it
is suitable for consumers who have a high level of health-conscious. On the other
hand, green products have better natural properties and greater health.
A good quality product can increase consumer preferences, as it helps to increase
customer satisfaction, retain existing customers and attract more potential buyers.
Therefore, revealing the factors that become customer satisfaction is essential.
Corporate image is important to the marketing strategy in the marketing domain to
increase market share, satisfaction, and customer loyalty. In general, corporate
image is the customer's perception regarding the quality of the company's products
offered. Improving corporate image will increase corporate value. Furthermore, a
favourable corporate image makes customers feel secure when buying products
and can form an effective differentiation that will determine the company’s success
in the long term.
Previous research has discussed the relationship between green awareness and
purchasing of green products, specifically customer attitudes toward green
products. Several studies have noted a correlation between green awareness and
green purchase intention. Although green marketing has become popular because it
can increase green purchase intention, exploring the role of contingency corporate
image in increasing purchases of green products has received less attention.
Corporate image can only be formed in a long time, and it is difficult to imitate and
strategic, so it will achieve a sustainable competitive advantage. The corporate
image builds customers' trust. When the perceived corporate image is accepted,
then what is in mind is that the company's product quality is good and able to
satisfy the customers.
Consequently, they will accept the company's products and buy them. Thus, it
becomes very interesting to figure out the role of the corporate image toward the
relationship between green awareness and green purchase intention. This study
tries to build a relationship between green awareness and green purchase intention
and provide a more comprehensive view of the role of the corporate image of this
relationship. This study provides a strategic reference that explains the critical role
of corporate image to build consumer trust, promote sales of green products and
explore the challenges in dealing with global warming issues.

LITERATURE REVIEW
The literature review is based on secondary data, which is collected from other
research papers with similar interest, and the research papers are collected from
google search from multiple websites the research papers are mention in the end.
Many factors were found to be influencing green awareness and green attitude. But
green awareness and green attitude does not always lead to actual green purchase.
According to these there are many factor which make consumer aware about the
green benefits but they are just aware they are not switching towards green
products means people in the society knows that green products are beneficial as
compare to normal products but they are not purchasing green products to find the
reason for the gap between green awareness and green purchase many research
papers are studied and some factors are find which is effecting the green purchase
intention of consumer and there are some factors also which can influence
consumers green purchase intention.
The study provides the understanding of factors which can influence the green
purchase intention of a consumer towards green product. Green marketing creates
green awareness which can also frame attitude towards green products. The
consumers attitude towards “Green” shows the behaviour of a consumer towards
green product, which means if they are concern about the environment which can
be imagine by word “green” can try at least once. The attitude and behaviour come
from knowledge about the environment and green products. The knowledge
provides detail information about advantage and disadvantage of the green
products and its importance.
Green brand loyalty also one of the factors which can influence the green purchase
intention green brand loyalty means when consumers are loyal to the brand which
cannot be effect by other factors, the trust towards brand and its products pull the
customer towards green product. Green consumer characteristics includes, age,
income, qualification and status these characteristics differentiate the customer
according to their need and their demand which show that do they have enough
income so that they can spend a specific amount on green products like cosmetic,
electronic vehicles etc some green products which can be expensive but it is worth
to purchase that as if we consider qualification it shows that the qualified
consumers have knowledge about the green products and they will prefer the green
products or normal products.
The consumers can also influence by the reference groups which include relatives,
neighbours and friends when the reference groups share their experience about the
green products with their friends or relatives which create positive image of any
brand or the green product which make them try the green product at least once
these can be one type of creating green awareness. Other than these if we talk
about behaviour of consumer about green product, we can consider the concept of
subjective norms, it refers to the consumer perception towards surrounding social
pressure that can affect the performance of specific behaviour, basically when
individual persuade the specific opinion or view from social perception have a
significant impact in green purchase intention.
Price is also one of the factors which would be the reason for the gap between
green product awareness and green purchase intention because if we can see the
price of green products is higher than normal products, because it is more of
natural resources which is limited and less of chemical. So, the middle-class people
or low-income people barely purchase such an expensive products like cosmetics
or electronic products which is in the favour of the environment.
• Green Product
The word “Green” itself define that it is something related to the environment
positively and when it comes with product like the word “Green Product” it shows
that the product is related to the environment. And the normal perspective of the
people is that the things which are made up of natural resources are healthy and
safe. GPs are normally produced through natural friendly processes
in a more durable and toxic-free manner green products normally bear
characteristics such as energy efficient, recyclable, low emitting, healthy products
etc. the green products are not only produced natural resources but also by nature
friendly process. The awareness about the green product can be created by green
marketing, labelling or packaging. (Ansu-Mensah 2021). The increase in
awareness about the environment and health has improve the consumption of the
green product. The use of green product is not limited to the adults but also to the
young ones (Andhy Setyaawan 2018). Green product reduces waste and pollution.
Consumers should be conscious of the existence of a green product
before purchases can be made. Thus, information on green
products has influence on the consumer’s purchasing decisions.
(peter ansu 2021)
• Green Marketing
Green marketing concept is existing since the end of 1980’s. green marketing
refers to the marketing of Eco-friendly products, combining several activities such
as product modification, changes in production processes, packing, advertising
strategies. Green marketing focused on solution to the environmental problems
such as pollution it provides innovative product and services to the consumer and
sustainable practices which focused on consumer perspective. Green marketing
helps in creating green awareness among consumers. Green marketing means when
you promote eco-friendly products in an eco-friendly way, eco-friendly product
means the products which do not harm the environment not the consumers health
and eco-friendly way means marketing should be done through the resources
which are not much more harmful for environment and this type of marketing is
one of the factors which can create awareness which is first step towards green
purchase intention. Green marketing plays an important role in encouraging
consumer to buy green products. Advertisement is the main awareness generating
media to buy green products manufactures require materials which are costly and
even R&D water treatment is costly (Dr. Sanjay Keshavrao katait 2014). Green
advertising relates to company’s campaign for product offered. It is known that
three types of green advertising are product campaign relating to biophysical
environment, product campaign relating to green lifestyle and company campaign
relating to environmental responsibility (D P Alamsyah 2018) “environment
sustainability as the third aim beyond consumer’s satisfaction and company
profitability”. In green marketing the products are not only consider on
performance and price but also look after at social responsibility of consumer. The
consumer behaviour defined as the action and decision process of people who
purchase goods and services for personal consumption (Sehgal and Singh 2010),
the dimensions of green marketing is to offer target customer quality products at
the right time and place, at the right price, four parts of the 4p marketing tools were
needed in innovative ways (Singh 2010:4)
• Green knowledge
Knowledge is a symbol for consumers as well as organisations. The positive
knowledge that supports the consumer environmental issues also helps the
organisations develop the knowledge conveying products. Environmental
knowledge influences the green purchase intention. The knowledge is not
depending on qualification even a unqualified consumer can have the knowledge
about green like if they have the proper awareness about the environment, what
makes environment destroy or what would be beneficial for the environment than
they also have green knowledge. The knowledge about green creates concern about
environment which can lead to green purchase, because when people realise that
how much harmful this will be in future make them switch towards green products.
Green knowledge means consumers having idea or information about the
environment and environment friendly products which means people are aware
that green products are advantageous in many ways, when people have detail
knowledge about anything than they feel confident about the particular things and
purchase the thing so the green knowledge have positive impact green purchase
intention.

• Attitude and Behaviour


Attitude of a consumer towards environment can affect the green purchase
intention. If the consumer wants to switch towards green product than what comes
in their mind when they listen to the word green, normally people think that it is
organic product this attitude can change the negative behaviour towards positive
and leads to green purchase. Attitude are formed overtime frequently challenging
to modify. Attitudes are collection of ideas about specific object that might lead to
a desire to carry out the behaviour. Attitude is significant predictor of an
individual’s tendency to purchase a green product and this shows the behaviour of
a consumer (2022).
• Green consumer characteristics
The demographic characteristics of a consumer like Age, Gender, Education level,
Status, monthly income differentiate the customer of green product it can be the
reason for the gap between green awareness and green purchase. In age the
different age group people have different perspective about green like for new born
should use natural products only, different age group people have different belief
on products. Like if we see classify on gender then the female use cosmetics and
she is home maker than she should be aware of green products more as compare to
man, man can consider green products in vehicles and sometimes health care
products. The qualification level shows that how much consumers are aware about
the green, because qualified people have more knowledge about green so its also
depends on qualification. When we consider income of a person it classifies
according willingness to pay and it also depends on profession sometimes
according to profession the consumer have to use cosmetic products daily so it
should be safe that’s why green products are considered. All these factors classify
the green product consumers.
• Green brand Image and loyalty
Green Brand means the company who design and produce the products and
services in favour of environment which is also good for consumers health and the
society. According to (Insch 2011) a green brand is a brand where environmental
values is a constitute the brand essence. There many companies who are switching
to green products, so the consumers have faith on the company or the brand and
these trust converts into loyalty towards brand which surely convert into green
purchase these trust and loyalty can be useful for the green products. According to
Sumarwan (2014)” brand loyalty is defined as a customer’s positive attitude
toward brand and a strong desire to buy the same brand in the present and future”.
Chen et al. “describe a green brand image as a collection of expectations of a brand
that are associated with environmental sustainability in the minds of consumer. The
consumer purchase products because of brand image because they believe that the
product will be beneficial for them which shows they have trust on brand, by not
switching towards other brand because of changes in product or price it shows that
consumers are loyal to that brand. Green brand benefit has the positive impact on
green brand loyalty and green products, when a brand provides values and
advantages to the consumer which will be the beneficial for them, and these offers
suits to the consumer needs, dreams, desires and obsessions are called as brand
benefits. (Qumil Laila Arham 2021). Green brand image is formed by the series of
customer perception of brand that has benefited for environment.
• Beliefs- Subjective norms
The concept of subjective norms refers to the consumer perception towards
surrounding social pressure that can affect the performance of specific behaviour,
basically when individual persuade the specific opinion or view from social
perception have a significant impact in green purchase intention. These can be
come from reference groups. subjective norms are when my family wants me to
use green products, when my friends suggest me to use the green product, when
specialist recommend according to the scenario. Basically, when reference group
share their experience or according to knowledge, they suggest to use the green
product is called subjective norms. Subjective norms have positive influence on
green purchase intention.
• Price
Price criterion usually serves as the main hindrance to green
products purchase and that green consumers’ are only ready to pay
a premium for a product if they realize that its attributes, designs
and functions are beneficial to them, their families and posterity. It
is seemed that the price of green products is higher than normal products, which
can’t be afford by every income group people, if people convinced to switch to
green product because of environmental concern or other factors but after
knowing the price they ditch the idea to switch. But people who are perceived
about eco-environment they will buy the green product. But when prices are
higher, they can’t afford to pay so this can create gap.

Conclusion
This literature review shows that there are many factors which can affect the green
purchase intention and many factors can influence the green purchase intention. Its
is state that green awareness has impact on green purchase intention. But these
factors are creating a gap between green awareness and green purchase intention.
Green marketing is a source of green awareness, which create awareness about
green product. The purpose of the green awareness is not getting successful. The
factors which affect this is attitude of a consumer towards the green product which
can be define by examine the attitude of consumer towards environment. Do they
are worried about the environment and this attitude shows the behavior of a
consumer towards green product.
The green purchase intention depends on green knowledge according to research
papers the consumers have lack of knowledge about green products and its proper
use. Green knowledge gives them detail about the products and its show that it is
good for health also. Green knowledge can influence the green purchase intention.
Other than this green consumer characteristics which include age, gender, income
and profession, like low income people avoid to spend the money on the green
products because they thing it is not essential and if we talk about profession then
there are many professions where the consumer have to use heavy products like
cosmetics on daily routine to look confident. So, it can influence the green
purchase intention. Green brand image, loyalty and trust can increase the green
product purchase the loyalty and trust towards brand make consumer believe on
the products which they are providing.
Now the factors which can affect the green purchase intention are subjective norms
if someone’s family do not want them to use it, if the friends have some bad
experience about it or some internal issues which make them not to use it can
affect negatively green purchase. Even higher prices can affect, the consumers who
are concern about eco-friendly environment than price will no affect them but
middle class people, or low income people cant afford the green products because
it is costly than normal products.
So, like this there are factors which can negatively affect the green purchase
intention of the consumer but by providing proper knowledge and affordable price
it can convert into positive effects.

Future Research
There are many factors which can create gap between green product awareness and
green purchase intention, but there is no study about the availability of green
products, the quality of products we can’t only believe that it is environment
friendly so it is 100% healthy, even it is not mentioned how can we identify it is
really healthy and environment friendly or not. The further research can be done on
availability, quality and how can we identify it is green product.

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