1. Consumer Behaviour – An Eco friendly approach
Maneesha Patel, NamitaRaina, Raj Patel
Maratha Mandir’sBabasahebGawde Institute Of Management,
Mumbai University,India
maneesha_mark18@yahoo.com,rajpatel010203@gmail.com, namitaraina9@gmail.com
Abstract: (Key words: eco-friendly products, consumer
Objective:The main objectives of the study behaviour, willingness to pay)
are to investigate the consumer attractiveness
towards eco- friendly products in FMCG I. INTRODUCTION
sector and their impact of purchasing Consumer’s consumption has been
decision. Also to analyse if they are willing to changed due to rapid economic growth
pay higher prices for the eco-friendly which has resulted in environmental
productsand to make the necessary degradation through over consumption &
recommendations based on the finding about
utilisation of natural resources. If the
their buying behaviour towards these
products. The Paper suggests that the current trend of economic growth &
consumers who are highly concerned about irresponsible consumption patterns
the environmental issues and its deterioration continues the environment deterioration
are likely to pay higher price for such would be worsen.The consequences of
products. environmental degradation areglobal
Methodology:Data for this study was warming, depletion of stratospheric ozone
collected from all the segments of society, 70 layer, pollution of sea and rivers, noise and
respondents using a structured questionnaire. light pollution, acidrain and desertification
The questionnaire contains questions to (Ramlogan, 1997).
measure awareness of eco-friendly products, Hence, shift towards more
consumers’ environmental concerns, trust in
sustainable consumption patterns is
the quality of green products, & their
willingness to pay higher for the same. required and it is also important to increase
Result:The results of the data analysis the environment awareness &
indicate that few consumers are ready to pay consciousness among the people.
higher prices for these products as they are Consumers can reduce their impact on
more environment conscious where as some environment by their purchasing decisions.
consumers who are aware of environmental The rising number of consumers who
degradation are of opinion that if the same prefer and are willing to buy eco-friendly
product is available at lesser cost then why to products are creating opportunity for
pay the higher costfor it.The survey findings businesses that are using “eco-friendly” or
disclose the consumers’ awareness about “environmentally friendly” as a component
green products and the impact of
of their value proposition.
environmental concerns on consumer’s
purchases. Businesses that offer products
Conclusion: Environmental concerns could which are manufactured & designed with
emerge as one of the powerful drivers that an environmental marketing mix have a
influence purchase, but it has actually not long term competitive advantage.
resulted in the ability to command a Environmental issues are of importance to
sustainable premium: consumers are willing consumers who are environmentally
to buy eco-friendly products, but not pay the conscious when making a purchase.
higher price. If the consumer’s demands Hence, a better understanding of consumer
increases the costs of production of eco- preferences in this casewill allow
friendly products will reduce. Awareness businesses to acquire more market-
among consumers that their buying choices
applicable approach to sustain in the
can make a difference to the environment
should be promoted to accelerate the competitive market.
consumption of eco-friendly products.

2. But first let us know what is Green There are lots of harmful effects
Product- This is the product that will not associated with the usage of plastics,
pollute the earth or deplorenatural chemicals, non-biodegradable items,
resources, and can be recycled or which is why, it is high time that we start
conserved. It is a product that has more using eco-friendly products as soon as
environmentally soundcontent or possible. Also, we should change our
packaging in reducing the environmental lifestyle restricting the usage of coolers
impact (Elkington and Makower, 1988; only during their utmost need, replacing
Wasik,1996). plastic covers with jute and paper bags,
In other words, green product checking the carbon emission of our
refers to product that incorporates the vehicles and servicing them regularly.
strategies in recycling or withrecycled Even the feminine products like
content, reduced packaging or using less earrings, handbags, purses, chains, creams,
toxic materials to reduce the impact on the body wash, and scrubs are available as
naturalenvironment. Krause (1993), in his handmade and handcrafted natural items
research found that consumers were which can easily replace the artificial
becoming more concerned abouttheir plastics ones. There are also organic
everyday habits and the impact on the clothes available in the market made using
environment. The outcome of this is that natural cotton, environment friendly dyes.
some of theconsumers translated their These eco-friendly dresses and accessories
environmental concern into actively are more appealing as they set new trends
purchasing green products commitment in the market and make one feel proud of
(Martin and Simintiras, 1995). wearing it by helping in preventing
Eco friendly products are readily damage to our surroundings.
available nowadays. These include small One can only hope that change is
articles from handmade papers bags, jute the only thing that is constant, once we
bags, and recycled papers to Eco friendly decide protecting our nature thereby
fuels and so on. However in spite of a ensuring our own safe future, and then the
plethora of eco-friendly products being rest of it follows. Let’s start using eco-
made available, majority of the people are friendly products for a start now and turn
still oblivious about the very existence of the vision of a lovely environment in the
such products, which is rather unfortunate. future, a reality.
The most important reason why
one should start using eco-friendly II. LITERATURE REVIEW:
products is because of the devastating Green purchase behaviour refers to
effect of harmful gases, non-biodegradable the consumption of products that are
plastics, dangerous gases which not only benevolent or beneficial to the
pollutes the environment but also causes environment, recyclable or conservable
respiratory problems in human beings. and sensitive or responsive to ecological
Apart from humans, it could also lead to concerns (Mostafa, 2007). As public
complete extinction of various rare species environmental concern has increased over
of animals and birds. It also increases the several decades, consumers who demand
earth’s temperature, which in turn causes products for immediate benefits toward
the greenhouse effect. The excess of themselves and for the long term benefits
greenhouse gases especially carbon toward the environment have emerged and
dioxide in the atmosphere prevents the increased (Follows & Jobber, 2000)
earth’s heat from escaping the atmosphere Following Berkowitz and
and radiates it back to the earth’s surface, Lutterman’s (1968) study, Henion (1972)
thereby increasing the global temperature. also thought that consumers with medium
or high incomes would be more likely to

3. act in an ecologically compatible manner issues, there is an increase in the demand
due to their higher levels of education and for ecological products. This increased
therefore to their increased sensitivity to awareness of and sensitivity towards
social problems. environmental issues places certain
Changes in the condition of natural demands on business functions to become
resources and their long term negative greener.
impact has led to some realization about
human responsibility towards nature. This III. OBJECTIVES
realization has led to development of eco- The Main objective of the study is,
friendly consumption patterns among 1. To investigate the consumer
consumers. Grunert (1993) reported that attractiveness towards eco- friendly
about 40% of environmental degradation products in FMCG sector and their impact
has been brought about by the of purchasing decision.
consumption activities of private
households. The need for eco-friendly 2. To analyse if the consumers are willing
products is gradually increasing on to pay higher prices for the eco-friendly
account of persistent raise in the concern products.
for environment related issues.
Fortunately, eco-friendly consumption and IV. RESEARCH METHODOLOGY
spending patterns has led the marketers to 70 questionnaires were distributed
understand the eco-friendly attitude of the to various educated segments of society.
consumers and come up with the 63 total questionnaires were received back
marketing mix which preserves with a respond rate of 90 per cent. After
environmental resources and at the same going through it we found only 50
time deliver value added products and questionnaires usable of which 50 per cent
services (Chitra, 2007). are males & 50 per cent are females with
Belz&Peattie (2008) stated that mean age ranging from 20 to 38 years. The
green marketing and environmental questionnaire was structured as follows.
marketing in the late 1980’s focused on The questionnaire contained 14 questions.
green consumers who would be willing to All questions were close ended except the
pay premium prices for more last one i.e. Q.14. where we had asked for
environmentally friendly products. Many their comments. These questions measured
consumers choose products that do not consumers’ awareness, knowledge about
damage the environment over less the environmental issues and eco-friendly
environmentally friendly products, even if products, trust in the performance of eco-
they cost more. With green marketing, friendly products and their willingness to
advertisers focus on environmental pay more for those products. The
benefits to sell products such as questionnaire also included general
biodegradable diapers, energy-efficient demographic questions such as age,
light bulbs, and environmentally safe gender, sex, qualification & occupation
detergents. Green marketing encourages etc.
consumers to use eco-friendly products
and manufacturers to develop more V. DATA ANALYSIS&
environmentally beneficial products. INTERPRETATION
Clem (2008) adds that going green Table:1 Survey Questionnaires provided to
reflects a social consciousness around respondents:
saving and advancing the Earth’s natural Questions Number %
resources, preserving and protecting them Have you heard of any
for the sake of civilization. As customers FMCG eco-friendly
become more aware of environmental products?

4. Yes 47 94% Going through these questions we
No 3 6% came to know that people are aware that
Name any eco-friendly their purchase decision will contribute to
products. the sustainable future but still they don’t
Answered 28 56% consider environment while making their
Unanswered 22 44% day to day purchases. 60% respondents
said that they don’t consider their
Through these above questions we got to purchases friendly from the environmental
know that 94% people have heard about point of view. But 76% respondents
the eco-friendly product but when we admitted that if the product is labelled as
asked them to name few products only eco-friendly so that information can
56% respondents were aware about the change their purchase decision.
eco-friendly products.
Table: 3 Survey Questionnaires provided
Table: 2 Survey Questionnaires provided to respondents:
to respondents: Questions Number %
Questions Number % Have you bought or
Are you aware that considered buying eco-
purchasing eco-friendly friendly products
products will available in the market?
contribute to the Yes 36 72%
sustainable future? No 14 28%
Yes 42 84%
Do you feel there is
No enough information
8 16%
about Eco-Friendly
Do you consider your
effect on the
features while buying
environment as a the Products?
Definitely Yes 1 2%
consumer before
purchasing general day Average 33 66%
to day products? Definitely Not 12 24%
Yes 27 54% Not sure 4 8%
No 23 46% Do you trust the quality
Do you consider your of eco-friendly
purchase friendly from products?
the environmental Definitely Yes 10 20%
point of view? Average 29 58%
Yes 30 60% Definitely Not 5 10%
No 20 40% Not sure 6 12%
Do you consider if the It can be stated that many i.e. 72%
product and its package of buyers have bought eco-friendly
are designed to be products but there is lack of information
recycled before making about eco-friendly products in the market.
a purchase? Because only 68% people have agreed that
Yes 27 54% there is enough information about those
No
23 46% product. 78% population believe that the
If the product is labeled quality of eco-friendly product is supposed
eco-friendly, would this to be high.
information change
your purchase? Table: 4 Survey Questionnaires provided
Yes 38 76% to respondents:
No 12 24%

5. Questions Number % friendly products and78% were found to
Do you agree that the trust the quality ofeco-friendly products.
price of eco-friendly It is also found that the segment of
products is supposed to consumers who are willing to pay more for
be higher? eco-friendly products may not be very
Yes 29 58% large. Even the educated segment which
No 21 42% was chosen by us for this study has shown
Are you willing to pay underwhelms response for paying higher
more for eco-friendly prices for these products. Thus, the
products? environment concerns could come up as a
Yes 31 62% powerful drive for influencing the
No 19 38% consumers and changing their purchasing
If Yes How much are behaviour.
you willing to pay
more for eco-friendly VII. LIMITATIONS& FUTURE
products? RESEARCH
<5% 11 22% The sample size was very small
5-10% 10 20% and it was particularly collected from
10-20% 7 14% South Mumbai, India, so there was
20-30% 0 0% geographical constraints too. The
42% of respondents believe that the questionnaires were distributed to highly
prices of eco-friendly products should not educated respondents so they tend to be
be higher whereas 62% people are willing more eco-friendly as compare to others.
to pay more for those products which And also the present paper was conducted
shows that the consumers are more using self-reporting questionnaire hence
environment friendly and willing to the respondents may be biased especially
contribute in its sustainable growth. in regard to the willingness to pay higher
price for eco-friendly products.
VI. KEY FINDINGS VIII. SUGGESTIONS
The study shows that majority of The people are aware & concern
sample respondents have heard of eco- about the green products, so it creates an
friendly products and have knowledge opportunity for developing green market
about environmental issues. focusing on more educated consumers.
Approximately 94% respondents stated Also consumers want eco-friendly
that they had heard of eco- friendly products from those companies which
products & 84% were aware of the fact have positioned themselves as Green
that purchasing eco-friendly products will marketer or Eco-friendly Manufacturer.
contribute to sustainable future. The right combination of eco- friendly
More than 46% of respondents products and service, sales, marketing,
stated that they did not consider the effect andmanagement expertise is needed to
on environment while purchasing general target and attract the consumers who may
day to day products where as 60% be willing to buy eco- friendlyproducts.
considered that the purchases made by Green marketers should identify such
them were correct from environment point segment of consumers and accordingly
of view.A relatively higher proportion of design and marketproducts at suitable
respondents (76%)stated that labelling a price levels. Since eco-friendly features
product as eco-friendly would change their motivate consumers, hence companies
choice of purchase. Further, 72% of the shouldfocus on advertising eco-friendly
samplerespondents considered buying eco- brand labels, in-store displays and

6. hoardings. Advertisements campaigns environment/22green.html?pagewanted=al
maybe used to further promote the use of l&_r=0
eco-friendly products. Such campaigns can http://www.thedailygreen.com/green-
be directed at increasingconcerns about homes/eco-friendly/green-products-
environmental issues among consumers 460514
and publicize the use of eco-friendly
products.
The awareness about the products
should be done through advertising so that
individual buying behaviour can be
changed which can have an impact on the
welfare of the environment. It is also
important that companies aiming at
developing new eco-friendly products
should ensure that products perform
competitively.
IX. CONCLUSION
Environmental concern could
emerge as one of the powerful drivers that
influence eco-friendly purchases; it has
actually not resulted in the ability to
command a sustainable premium
consumers are willing to buy eco-friendly
products, but not to pay the higher price.
It may be important to examine in
future studies the effect of disposable
income on willingness to pay premium.
Increased consumer demand will help
reduce costs in production of eco-friendly
products. Awareness among consumers
that their buying choices can make a
difference to the environment should be
promoted. There is a scope for eco-
friendly marketers to capture this market
as it has long term scope& growth.
X. REFERENCES
Books:
1. Consumer Behaviour- M. Khan
2. Consumer Behaviour- Atul K. Sharma
3. Research Methodology- C.R. Kothari
4. The New Rule of Green Marketing-
Jacquelyn A. Ottman
Online:
http://greenliving.nationalgeographic.com/
going-green-home-products-2370.html
http://www.nytimes.com/2011/04/22/busin
ess/energy-