Green Marketing

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Contents

Abstract        

Introduction        

Background        

The green marketing        

The green washing        

Why are firms using green marketing?        

How green marketing affect consumer behavior        

Demographic characteristics        

Psychographic characteristics        

Social Norms        

Conclusion        

References        

Abstract

The objectives of the paper are to study the green marketing and explain how green marketing impacts consumer’s behaviors based on secondary research.

The green marketing is a strategy company used to satisfying the requirement of consumer and society in a sustainable way.

Some company take the green washing instead of green marketing strategy to avoid the extra cost.

The green marketing can help company to obtain competitive advantages, increase social responsibility and reduce government pressure.

Consumers green behaviors also related to demographic variables, psychographic variables and social norms.

Through observing the results of previous primary research, this paper would analyze the correlation of those variables. 

Further studies are needed to widen and probe the potential power of green marketing program and strategy.

Introduction

As society and consumers becomes more concerned with environment problem, most corporations have taken some action in an attempt to satisfy these new needs. Some companies have been applied the green marketing strategy as the environment management systems to attract consumer. The behavior that consumer bought a product or service from those companies is green purchasing.

Marketing managers encounter with the increasing awareness o

If they do not attempt to meets consumers’ new needs, consumer behaviors may affect directly. Through this paper, manager would have an idea of how to using green marketing strategy to reach different segments based on demographic and psychographic variables.

This paper will attempt to

1. Introduce the term, origin and concept of green marketing and green washing;
2. Briefly explain some of the reasons that more and more firms are adopting a green marketing strategy
3. Explain how green purchasing behaviors related to demographic variables, psychographic variables and social norms.

Background

The green marketing

Green marketing is a general management for identifying, anticipating and meeting the requirements of consumer and society in a profitable and sustainable way (Peattie, Environmental Marketing Management, 1995). There are three requirements: Production is compatible with the environment protection, the green marketing strategy is compatible with company’s goals and the strategy is meeting consumers’ needs (Peattie, Environmental Marketing Management, 1995).

The origin of green marketing is the growth of people’s environmental consciousness. Over the past few decades, the concern about the environment protection is growing worldwide. Consumers are becoming more sensible about whether their consumption is harmful to the environment. Since the 1970s, the relationship between consumer behavior and ecofriendly products has become positive (Linda F. Alwitt, 1996).

For the company who want to apply the green marketing strategy in today’s market, the main point is finding the balance point of the sustainability and profit. According to Peattie’s research in 2001, the evolution of green marketing has three phases over a period: “Ecological”, “environment” and “sustainable”. “Sustainable” means "meeting the needs of the present without compromising the ability of future generations to meet their own needs" (Peattie, Towards sustainability: The third age of green marketing, 2001).

The green washing

Greenwashing is a disinformation of the company try to repair public reputations and further shape public images (Beder, 1997). Many companies now take the green marketing strategy in their environment management, but some companies deal with this public issue without practical actions.

The greenwashing appears because some companies creatively manage their reputations with the public, financial community and regulator, so that they can hide deviance, reattribute blame and create a positive public image with a poor environment performance (Laufer, Social Accountability and Corporate Greenwashing, 2003).

When corporations engaged in greenwashing, it will lead to a series of problems in future. The government, consumers and non-government organizations would questioned company claims or even sue the corporation for environmental false advertising (Delmas & Burbano, 2011). For example, in 2012, a consumer took Honda to court because Honda over misleading the fuel efficiency of a hybrid vehicle (Seidl, 2012).

Why are firms using green marketing?

There are three reason for organizations increased use of green marketing: opportunity to obtain competitive advantages, social responsibility and government pressure.

Company recognized green marketing is a new opportunity to achieve its goals (Keller, 1987). Firms who are marketing green goods or service will have a competitive advantage over firms who are marketing normal goods or service. A great deal of examples shows firms adopt green marketing strategy to obtain competitive advantage and satisfy consumer needs. Macdonald has decided to use recyclable paper containers instead of packaging their hamburgers in polystyrene box.

Organizations believe they have a moral obligation to be more socially responsible (Keller, 1987). Rather than simply being a competitive tool, green marketing can also help the company become more socially responsible. The Body Shop heavily promote the fact that they are environmentally responsible. They tied green marketing strategy to its overall company culture.