Capstone Project WWD
Capstone Project WWD
Capstone Project WWD
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CAPSTONE PROJECT
“A study of consumer perception towards
green products ”
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Under the Guidance of:
Mr. Ravindra Singh Rawat
Submitted by:
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ACKNOWLEDGEMENT
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Table of content
Titles Page
No.
Project title page………………………………………… 1
Acknowledgement………………………………………… 2
5 Research Methodology
1. Target Population….……………………………… …….16
2. Sampling Technique. ..…...16
5.3 Research design…………………………………….. …….16 - 17
6 Analysis and Interpretation……………………… …….17 - 23
7 Findings……………………………………………… …….23- 27
8 Conclusion……………………………………. ….28
9 Suggestion……………………………………. …..29
10 References……………………………………………… …….30
11 Appendix (Questionnaire)…………… …….33 - 35
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List of Tables
List of Figures
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1.Introduction
World environmental issues have become matter of concern for the companies and consumers as
well. As the production and consumption of products which contains harmful substances, it is
degrading the environment. And is a focal point for consumers and the companies as it also has
adverse impact on the health of the consumers. The challenges that companies and customers
are facing is to preserve and prevent Earth’s natural environment and its finite resources.
Production of goods all over the world has created a situation where environmental safety is at
stake. It has resulted into large number of environmental problem. As a result, companies are
more focused on green marketing and are trying to produce green products which are
environmental friendly and have less harmful impact on environment.
Moreover, when we talk about environment and health, the consumers are being more conscious
about this, Healthy habits are being prioritised.
Some of the attributes of green products which are helpful for identification of the products
thatwhether the product offered is a green product of not are mentioned below:
• Are energy efficient products.
• Often have low maintenance requirements and are durable.
• Do not have any Ozone depleting chemical and toxic compounds.
• Do not produce any toxic by-products.
• Often made of recycled materials and are recyclable.
• Biodegradable and easily reused partially or as a whole.
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The environmental issues related concerns has been increased recently due to the awareness
related to environmental pollution, increased media exposure and the impact of industry disaster
(Kalafatis, et. al.. 1999). It resulted into consideration for the environmental protection by
customers as an important factor for their buying decision. (Fraj and Martinez, 2006).
New segment of consumers has emerged due to the concern of environmental degradation called
“green consumers”. These kinds of consumers tend to avoid the products which are possibly
dangerous for the health, environment and do not fall in the category of green products. And to
respond to the environmental needs of these consumers, A new branch of learning related green
marketing has been evolved (Raposo, Finis terra do Paco, 2008).
1.2. Consumers
People get confused between Consumers and Customers, so a customer is a person who
purchases the product and a consumer is one who consumes it. For both the parties’ product
creates value but it is majorly realized by the consumer. For example, “A” buys a notebook for
his son “B” so “A” is a customer but his son “B” who is going to use it so he will be the
consumer in this case.
There are a lot of factors that have direct impact on the purchase decision of the product, like:
Brand: A brand is a "Name, term, design, symbol, or any other feature that identifies one
seller's good or service as distinct from those of other sellers. (AMA)
• Brand Equity: The value of a brand. From a consumer perspective, brand equity is
based on consumer attitudes about positive brand attributes and favorable
consequences of brand use. (AMA)
• Brand Awareness: Brand awareness is a marketing concept that enables marketers
to quantify levels and trends in consumer knowledge and awareness of a brand's
existence. At the aggregate (brand) level, it refers to the proportion of
consumerswho know of the brand. (AMA)
• Brand Image: The perception of a brand in the minds of persons. The brand
image is a mirror reflection (though perhaps inaccurate) of the brand personality or
product being. It is what people believe about a brand-their thoughts, feelings,
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expectations. (AMA)
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Perception: Based on prior attitudes, beliefs, needs, stimulus factors, and situational
determinants, individuals perceive objects, events, or people in the world about them.
Perception is the cognitive impression that is formed of "reality" which in turn influences the
individual's actions and behavior toward that object. (AMA)
Intention: Anticipated or planned future behavior or the decision to acquire specific goods
or services under given terms and conditions. (AMA)
Perceived value refers to the value or worth that a customer believes he/she will obtain
when they will purchase any product or service. The customers don’t have the in depth
knowledge about the cost of production or other cost of the product but based on their internal
feeling the worth that product will give them.
The success and failure of any product depends upon the value their customers perceive and the
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satisfaction they will get from buying that product and whether it will satisfy their needs. So it
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gets very important for marketers to develop such a product and their brand so that it leaves a
positive impact on the minds of their customers, and they don’t know how the customer will
perceive and react to the message the marketers is trying to communicate. Most of the
companies spend their resources to understand the customer’s behavior like how they think and
feel and alsothe factors that can have direct impact on their perception.
The factors that can stimulate customer’s perceived value are psychological factors, tangibility
of the product, social advantages, personal benefits and many more, so companies have to make
sure they consider all these factors while developing product, setting up its price and how
theyare promoting the product.
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2. Literature Review
Roach (1991), in his studies he found that, while making purchase decisions consumers were
found considering factors like environment protection, product quality and food safety.
Consumer’s belief and attitude was found as two factors which would have impact on the
purchase intention of consumers.
N. Mahesh (2013), indicated that most of the consumers perceive green product as a quality
product and value for money. Perceive value for green products was found to be high among
the consumer of higher education and of higher income level. Employees working in private
sector and middle aged people have better and positive perceived value towards purchasing
green products.
Aaker (2001), states that intention means expectation of a person of behaving for future
towards a product or an object. Intention is an outcome of individual’s regular habit of
buying and planning horizon. It consist individual’s willingness to pay for the product. And
purchase intention refers to the conscious effort an individual makes to purchase a product.
(Spears and Singh, 2004)
Bolton (1991),in his study found that, consumer’s perceived value towards a product or a
service is described as the general assessment done by the consumer about the net benefit or
total benefit of a product is always based on the judgement done by the consumer.
Steenkamp (2006), in present scenario if any organization have to make potential customers
buy their product and services then the perceived value of their brand plays a critical role.
Organizations create direct impact on the perceived value for a customer and their purchase
intention through the value they offer through their product or services.
Zhuang (2010), in his research he has found that perceived value does not work only as a
determinant for organizations to build long-term relationships with their consumers, but also
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Plays a critical role in determining the intention of a consumer to purchase the product or
avail a service of a brand.
Keller (2011) in his studies he has indicated that for green product users to buy any green
product the most important factor is their perceived value towards green product. Many of
the consumers really care about the purchases they make, accepted of the product which they
purchase in their social surrounds is important.
Vazifehdoust (2013) stated that the customer’s intention to buy green products is depended
upon their perceived value and their positive attitude towards environmental concerns and
green products. The study also considered the different factors like marketing, promotion
andconsumer’s behaviour can impact the consumer’s attitude towards green products.
Ottamen (1992), indicated that for any consumer while buying green product there are two
aspects Environmental and personal. They consider purchasing green products if they fells
that it can solve environmental problems. And when it comes to personal they consider
certain factors which needs to be satisfied in order to make them purchase green products
andthese factors are price, quality, performance, convenience, availability, and affordability if
allthese are fulfilled they will buy the product.
Ibanez and Hartmann (2006), in their research stated that “a green brand consists set of
attributes and benefits associated with reduced adverse impact on environment and the
creation of a positive image in minds of consumers by focusing on their environmental
concern”
Norazah and Norbayah (2015a), found that Green Customers refers to those individuals who
are highly environmental conscious means care about the environment and these individuals
also have proper knowledge related to it. Based on their knowledge and consciousness
towards environment they purchase green product.
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Consumers have channeled their growing concern for the environment through the demand
for eco-friendly products and this mindset of "going-green" has expanded throughout the
world due to intensified awareness of living in a healthier way (Norazah, 2013 Soyez, 2012;
Thogersen, 2015).
Lee and Oliver (2002), in their study of a car purchase intention they indicated that once
they are aware about any brands green attributes and their environmental friendliness it leads
themtowards stronger purchase intention of a green product.
Vazifehdoust (2013), in his study he affirms that the individuals who have intention to buy
green product is greatly influenced by the positive attitude they have about the product or the
brand and the perceived value towards the green product and the benefits of using green
products.
Rizwan (2013), in his research he found that the attitude of a consumer whether positive or
negative have direct impact on his or her green product purchase intention. Which shows
that consumers attitude and consumers purchase intention has direct relation and his or
herattitude plays a vital role in deciding whether he/she will buy the product or not.
Mostafa (2009) showed that consumers with positive attitudes towards green products are
more apt to develop a stronger mentality to purchase green products by considering its green
brand, and rely on green brand positioning.
Rokicka (2002), in his research he stated that consumers those are having high level of
knowledge about environment and are environmental conscious have a better
environmentalattitude and have a stronger intent to buy green products and services because
they are well aware about the benefits of using green products.
Green marketing studies done by different researchers have conveyed that consumers’
attitude towards environment friendly behavior influences their environmental
knowledgeand have direct impact on their green product purchase intention. (Flamm,
2009; Barber etal., 2009; Aman et al., 2012)
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Yadav and Pathak (2016), in their research they have found that the consumers attitude
towards green product or services, whether positive or negative significantly have direct
influence on their purchase intention of the green products or services. Which means if a
Consumer has positive attitude towards green product he will be having strong green
purchase intention and vice-versa.
Roberts (1996), in his studies he stated that the consumers who have strong purchase
intention to buy green products are more likely to perform green consumer behavior as they
are more conscious about the environment and believe that some specific environmental
activities can improve the environmental issues.
Chris (2008), his studies indicates that consumers are becoming more environment friendly,
are getting more concerned about their health, they desire to have a sustainable life and they
want to eat food which is green. So it is like consumers are evolving as time is changing and
as the environment is changing they are getting more environment conscious.
Abdul Rahim (2009), in his studies indicated that the consumers are getting fortified towards
the increasing issues related to environment and the green products are environment friendly
and it is good for consumer’s health so due to which they have positive attitude
towards green food and green products. And this positive attitude leads them to have strong
intention to purchase green products.
Beckford (2010), on the consumer’s green purchase behavior the most significant and
important factor is green purchase intention. According to this, a consumer’s purchase
intention was positively affecting customer decision to buy green products.
Peter (2011), in his study he stated that when we talk about the green products it gives us the
guarantee that they are environment friendly, has minimum impact on the environment as
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compared to the non-green products and this is due to the way these green products are
produced and the materials used to produce them.
Green brand image is the eco-friendly concerns in the minds of customers which is a
collection of notion, creativeness in conception, and dread towards a brand and all these
Directly have impact on their attitude which influences their intention to buy green product.
(Chen, 2010, p. 309)
Ko (2013), in his research he stated the significance of creating a positive image in the
minds of existing and potential customers for green products is due to green marketing, and
the final outcome comes as a consumer has strong intention to use green brand
products.
Aibek Doszhanov and Zainal Ariffin Ahmad (2015), indicates that green brand awareness,
green perceived value, green brand trust is having significant relationship with customer’s
intention for buying green products. And all those acts as a supporting factor to build an
intention in minds of customer to buy green products.
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Green products have gained importance as we have limited amount of resources available. And
these days most of the organizations are facing challenges related to fulfilling their requirement
of having access to the resources, so to tackle such challenges they have to develop new or
betteralternatives to satisfy their requirements and it should also be sustainable for them.
So to solve such problems the green products can be a sustainable solution to save natural
resources and to save our precious environment along with it they also need to satisfy the needs
and wants of the customers both individual and industry as well as they have to achieve the
objective of the selling organization related to unlimited wants.
With this study we are focusing on finding out the factors that affects the buying decision of the
possible customers. There are various parameters on the basis of which customer select or
deselect a green product some of them being their perceived value, attitude and their intention
towards green product.
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5. Research Methodology
1. Target Population:
When we are studying about consumer’s attitude, value they perceive and Intention of
purchasing green product, the population which is suitable for this study are the faculties and
students of lovely professional university, Phagwara, Punjab, as well as people outside the
university campus. India. As going through different literatures it was found that the youth is
more involved in purchasing green product and is more concerned about its impact on
environment.
2. Sampling Technique
To conduct this study and to collect data, samples are selected on the basis of Random sampling
technique. As we are not aware of the students who are actually using the green products or can
say that the consumers are not specified so we will be getting our questionnaire filled by random
students and faculties who might or might not be consuming green products.
Sample Size
For this study, we have selected 310 samples from data is collected using standard
questionnaire.Sample size is decided by taking reference of literature by N. Mahesh (2013).
3. Research design
• Type of Research:
Descriptive design is used for conducting this study. This study will analyse the
factorinfluencing the attitude and purchase intention of customer towards green products
• Data Collection
For the study the collection of primary data is done using questionnaire which will
include different variables which are identified while going through different literatures.
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• Survey
We have used questionnaire as a Table
tool for
2.1 collecting primary data. The questionnaire
includes 10 questions which further
Modelincludes
Summarysub questions. In this questionnaire we have
included 4 demographic questions including Age, Income, Education level and Gender.
Further it includes question regarding Attitude towards Environment, perceived value of
Green Products, Attitude towards green Products and Lastly Purchase intention of green
products.
a. Predictors: (Constant), Attitude, Perceived Value
Multiple Regressions
When we tried to find the impact of Perceived value of green product and consumer’s attitude
towards green product on Consumer’s Purchase Intention of Green Products using regression
analysis, as a result we got:
Table 1.1
Variables Entered/Removed
Std. Error of
the
Model R R Square Adjusted R
Square Estimate
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Here if we look in the above table, we can find that value of Adjusted R Square is 0.1. This
means that the dependent variable is 1% defined by the observed independent variables. Which
ANOVA
shows moderate impact of independent variable on dependent variable? So, we can say that
Perceived value and Attitude towards green product defines 1% of Consumer’s Purchase
intention of green product.
The table indicate that the regression model predict the dependent variable significantly well.
How do we know this look “Regression “row and go to the sig. column this indicates the
statistical significance of the regression that was run. Here P<0.005, which is greater than
0.5 that indicates over all the regression model significantly not predict the output variable(It is
not good fit for the data).
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Table 4.1
Coefficients
Coefficients
Standardized
Unstandardized Coefficients Coefficients
t Sig.
Model B Std. Error Beta
a. Dependent Variable: Attitude Measure
1 (Constant) 2.809 .177 15.891 .000
The Coefficients table provides us with the necessary information to predict purchase Intention from
Attitude Measure, as well as determine whether purchase Intention contributes statistically significantly
to the model (by looking at the "Sig." column). Furthermore, we can use the values in the "B" column
under the "Unstandardized Coefficients" column.
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Multiple Regression
When we tried to find the impact of Purchase Intention of green product and consumer’s attitude
and Environmental Knowledge towards green product on Consumer’s Purchase Intention of
Green Products using regression analysis, as a result we got:
Ta b l e 1.2
Variables Entered/Removed
Variables Entered/Removed
Variables
Model Variables Removed Method
Entered
1 Environmenta . Enter
l Knowledge
and attitude,
Attitude
Measure
Table 2.2
Model Summary
Model
Summary
Adjusted R Std. Error of
the
Model R R Square Square
Estimate
Here if we look in the above table, we can find that value of Adjusted R Square is 0.1. This
means that the dependent variable is 1% defined by the observed independent variables. Which
shows moderate impact of independent variable on dependent variable? So, we can say that
Perceived value and Attitude towards green product defines 1% of Consumer’s Purchase
intention of green product.
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Table
3.2
ANOVA
ANOV
A
Model Sum of df Mean Square F Sig.
Squares
The table indicate that the regression model predict the dependent variable significantly well.
How do we know this look “Regression “row and go to the sig. column this indicates the
statistical significance of the regression that was run.Here P<0.005, which is greater than 0.5
that indicates over all the regression model significantly not predict the output variable(It is not
good fit for the data).
Table 4.2
Coefficients
Coefficien
ts
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
The Coefficients table provides us with the necessary information to predict purchase Intention from
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Attitude Measure and Environmental Knowledge, as well as determine whether purchase Intention
contributes statistically significantly to the model (by looking at the "Sig." column). Furthermore, we can
use the values in the "B" column under the "Unstandardized Coefficients" column.
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Linear Regression:
When we tried to find the impact of Consumer Perceived Value and Attitude Measure towards
green product on Consumer’s Purchase Intention of Green Products using regression analysis, as
a result we got:
Table 1.3
Variables Entered/Removed
Variables Entered/Removed
Variables
Model Variables Removed Method
Entered
1 Consumer . Enter
Perceived Value,
Attitude
Measure
Table 2.3
Model Summary
Model
Summary
Adjusted R Std. Error of
the
Model R R Square Square
Estimate
Here if we look in the above table, we can find that value of Adjusted R Square is 0.008. This
means that the dependent variable is 0.8% defined by the observed independent variables.
Which shows moderate impact of independent variable on dependent variable? So, we can say
that Perceived value and Attitude towards green product defines 0.8% of Consumer’s Purchase
intention of green product.
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Table 3.3
ANOVA
ANOV
A
Model Sum of df Mean Square F Sig.
Squares
The table indicate that the regression model predict the dependent variable significantly well.
How do we know this look “Regression “row and go to the sig. column this indicates the
statistical significance of the regression that was run. Here P<0.005,which is greater than 0.5
that indicates over all the regression model significantly not predict the output variable(It is not
good fit for the data).
Table 4.3
Coefficients
Coefficien
ts
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
The Coefficients table provides us with the necessary information to predict purchase Intention from
Attitude Measure and Consumer Perceived value, as well as determine whether purchase Intention
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contributes statistically significantly to the model (by looking at the "Sig." column). Furthermore, we can
use the values in the "B" column under the "Unstandardized Coefficients" column.
Purchase Intention =2.687+.013+.133(Attitude Measure + Consumer Perceived Value)
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Age Group
27 above
25-27 7%
10%
19-21
36%
23-25
22%
21-23
25%
7. Findings
Figure 1- Gender
Figure 2- Age
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Educa on Level
College / Diploma Others Post Graduate Under Graduate PhD
7% 19%
30% 6%
38%
Figure 3- Occupation
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ti
Earning
Below 20000 20001-40000 40001-60000 60001-above
2%
16%
18%
64%
Figure 5- Earnings
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8. Conclusion
We have done the research on the topic “Consumer Perception towards Green Products”, in
Phagwara region in which the data shows the perception of the consumers towards green
products. . The consumers from different demographic factors such as age, gender may
influence their behavior to purchase the products.
In our research there are four parameters to study about the green product. The factors
Consumer Perceived value, Attitude Measure, Environmental Knowledge does not change the
purchase intention of the green products. The consumers have weak emphasis in order to buy
green products as they have less interest to buy the green products.
The attitude is another most important influential factor in consumer perception for the green
products. Consumers are normally not relying aware about the environment.
Another major aspect is knowledge about the green products it means the consumers have the
less knowledge about the green products and the consumption trusts so that they have less
intention to purchase the green products.
The Consumer Perceived Value is the one factor that stops the consumer to buy the green
products in which the price of the green products maybe the high as compares to the normal
products.
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9. Suggestions
As per us the green product is good for the consumers and the environment as well. They have
to adopt the green product in place of the product that harms the environment. There is need to
change the attitude of the consumers that will help to adopt the green products.
Another suggestion is that along with the environmental aspect manufacturer should consider
the raising the customer awareness on green products to attract new customers that also will help
the companies to increase the CSR towards the society.
Government and NGO should participate in encouraging the awareness about the use and
benefits of the green products.
As per the company perspective they should go for the low cost of the green product that will
help to obtain more and more customers.
Apart from these suggestion there must be proper knowledge given to the customers so that they
can become repeat and loyal customers of the companies.
Even through the Green Product market share is continue growing rapidly .lack of
understandingabout the green product means point to need for continue reach and efforts.
Customers are always looks for the extra benefits along with the purchase so the companies
need to market accordingly the behavior of customers in the different demographics and as per
the research that done by the company.
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