Abstract
The study examine the effect of green marketing on consumer patronage for consumer goods. The specific objectives were to, ascertain the relationship between eco-branded products and consumers patronage for consumer goods to examine the effect of green label on consumer preference for consumer goods to identify factors that affect consumers purchase for eco-branded products to examine the effect of environment concern on consumer patronage for eco-branded product. Primary data obtain from distribution of questionnaires was analyze using descriptive statistic such as frequency, mean and percentage. The study adopted multiple regression model, The empirical result shows that green knowledge or information, green consumption, green trust and interest in environmental issuesN have a significant effects on consumer’s patronage for consumer’s goods. It was recommended that proper and adequate enlightenment as consumers knowledge and reliable information affects consumer patronage; these to a large extent will reduces to purchase of products that are environmentally harmful and reduces to production and disposal of harmful products.
TABLE
OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1
Background of the Study
1
1.2
Statement of the Problem
3
1.3
Objectives of the Study
4
1.4
Research Questions
5
1.5
Research Hypotheses
5
1.6
Significance of the
Study 5
1.7 Scope of the
study
6
1.8
Operational definition of terms
6
CHAPTER TWO
REVIEW
OF RELATED LITERATURE
2.1 Conceptual framework
8
2.1.1 The Concept of green marketing
8
2.1.2 Green consumerism
10
2.1.3 Green purchase behaviour 13
2.1. 4 Pricing and Green Promotion
14
2.1.
5 Principles of Green Marketing
16
2.1.
6 Reasons for Adopting Green Marketing 17
2.1.7 Green Marketing Strategies
19
2.1.8 Challenges in green
marketing
20
2.1. 9
Benefit of green marketing and green
product development 23
2.2 Theoretical framework
2.2.1
Theory of Planned Behaviour (TPB) 25
2.2. 2 Construal level theory
26
2.2.3 Temporal construal
theory
26
2.3 Empirical Review 30
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Research Design
35
3.2.
Study Area
35
3.3
Population of the Study
36
3.4 Determination
of sample size
37
3.5 Method of Data
Collection
37
3.6
Validity of Instrument
37
3.7
Reliability of Instrument
38
3.8
Method of Data Analysis 38
3.9.
Model Specification
38
CHAPTER FOUR
RESULT AND DISCUSSION
4.1 Data
presentation, interpretation and analysis
40
4.2.1 Test of Hypothesis One
46
4.2.2 Test of hypothesis two 47
4.2.3 Test of Hypothesis two
49
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary
51
5.2 Conclusion
52
5.3
Recommendation
53
LIST OF
TABLES
4.1: Based on questionnaire distributed 40
4.2: Distribution of the respondents according to
socio economic characteristics 41
4.1.3 Rating the relationship between eco branded
product and consumer’s
patronage for consumer goods. 43
4.1.4: Factors
affecting consumers purchase for consumer goods 44
4.1.5: Rating the effect of green label on consumer patronage for
consumers goods 44
4.1.6:Different
strategies adopted by management to increase
consumer’s
patronage: 45
4.1.7: Test
of Hypothesis One 46
4.2.8
Test of hypothesis two 47
4.2.9 Test of
Hypothesis two 49
CHAPTER ONE
INTRODUCTION
1.1
Background
to the study
Green
Marketing has being in existence since late 1980s and early 1990s, it began in far
Europe in the early 1980s when certain organizational products were found to be
harmful to the environment and its inhabitant (Ana, 2009). Thus, the idea of
green product emanated. Companies were mandated to produce goods that would
cause less harm to the consumer and the environment, this brought to the
introduction of new products called “Green products” i.e products that would
cause less damage to the environment. During this time, series of workshop were
held on green marketing. The green marketing workshop in 1975was held and
called "Ecological Marketing" by the American Marketing Association
(AMA).
The
concept of green marketing has pushed both government and manufacturers to
adopt this strategy. As government amended its policy to save the earth and its
environment while manufacturer, are adopting this concept for sustainable competitive
advantage. According to Paettie and
Crane, (2005), the importance of green marketing cannot be overemphasized as government,
institutions and industries are conscious about their environment and want to
continue in its longevity, thus firms in developing countries particularly
Nigeria encourages the use of green products as it help to keep, maintain and
prevent the earth from biodegradation and biodiversity. Today, consumers are
becoming more conscious about the environment and this has led to the growth of
Green marketing as consumers are willing to pay a lot for green products
(Philip Kotler, 2011). Green marketing affects all areas of our economy, it does
not just lead to environmental protection but it also create new market and job
opportunities. Consumers nowadays
are more concerned about their buying attitude and purchases Paettie and Crane,
(2005). They are more concerned about the planet earth they are living and want
to contribute towards its longevity and well-being (Dale 2011). This positive
attitude towards environment is evidenced by their buying habits; such as their
concern regarding product-recycling. Green marketing is the application of the
marketing concept and tools to facilitate exchanges that satisfy organizational
and individual needs and desires in an environmentally friendly way (Adebanjo, 2016). Green marketing does not only help to build high-quality products,
but also shape the positive brand image and as such manufacturers in this
present dispensation are gradually shifting production to green products as
government policies are unfavorable to firms producing products that are not
environmental friendly and possess a negative effect on both human and its
environment (Grant, 2008).
Green
marketing activities cut across, manufacturing, differentiating, pricing and
promoting products and services which satisfy consumers and its environmental needs
(Paettie, 1992). The increasing consumer
consciousness on sustainable practices has also fuelled the change of
organizations to adopt green marketing strategies. The importance of going
green has become part of doing business in the new millennium. Moreover, Green
marketing is created an inextricable connection between the environment and
marketing to social responsibility of an organization by giving trustworthy
information which helps in building customers trust with the customers, improve
the green perceived value and enhance customer’s patronage on green product.
More
so, the evolution of going green was introduce to help maintain environmental
cleanliness, use of products that are not relevant again through product
recycling and providing remedies for environmental problems through the use of clean
technology that involved designing of innovative new products which could help
control pollution and waste issues (Peattie, 2001).
Finally,
the concept and practice of green marketing can never be over emphasize as
firms, companies and even small scale businesses are conscious about their
environment as it is a vital and inseparable factor from human activities
(Akehurst, Yazdanifard and Laroche, 2012).
In
spite of the growth in importance of green marketing on brand equity and
consumer patronage based on favourable consumer behavior, firms gives little
attention to green and this has negative influence on brand equity and consumer
patronage of such firms. Given this the study aims at filling this gap in brand
equity based on poor patronage as associated to low level of firms practice of
the principle of green marketing.
1.2 Statement of problem
As
the world continues to witness increasing environmental threats and other disasters
such as climate change, pollution, and depletion of the ozone layer etc. mainly
as a result of man’s activities, one key challenge to companies and consumers
today is how to preserve and protect the earth natural environment and finite
resources (Gosh, 2010). It may
be that production and consumption of goods have led to the emergence of a
large number of environmental problems. However, a large fraction of consumers
have not being able to tell the difference between green products and other products
in the society, as it effects on the environment continues to increase on daily
basis (Michaud
and Llerena, 2011). Thus, this has hindered most firms from practicing green
marketing and its effect is detrimental to the environment and customers at
large. Furthermore, inadequate funding (cost) by most reputable firms also
added to the problems of green marketing as products meant for use, recycle and
reuse are discarded owing to the high cost of recycling high cost or in
adequate knowledge about the concept of green marketing; as such firms discard
used products without care for recycling and this causes great harm and threat
to the environment.
In
other words, some firms have limited scientific and technology know-how to
practice green marketing, and this possess a great danger to the environment
and its inhabitants. The poor
performance of green products as compare to conventional products reduce
consumer willingness to buy green and as such consumers are not willing to buy
green product for a higher price.
Despite
great amount of awareness and knowledge about green marketing, the market share
of green products is still significantly small; only about 4% of consumers buy green products, from the large number of
consumers who agree to adopt green behaviour. This may spring from the fact
that green consumerism do not actually reflect in consumer lifestyle as its
environmental impact are still negligible. This statement is supported by (Hughner,
McDonagh, Prothero, Shultz and Stanton, 2007) who state that even though
consumers have a favourable attitude towards green purchases; it does not
guarantee the purchase of green products. Thus, there is a gap between
consumers’ Attitude and their Behaviour, which is referred to as the
attitude-behaviour gap. Due to the attitude-behaviour gap, firms face a
challenging task to develop segmentation and targeting strategies for green
product.
Although,
there quite a number of studies have been carried out on the impact of green
marketing on consumer purchase behavior, very few have taken a critical look at
the problem of attitude-behavior gap that is the major bane of green marketing
in Nigeria. Thus, there is a wide gap in the existing literature. As a result,
it is critical to examine the effect of green marketing on consumer patronage for consumer goods in order to fill this gap in the literature.
1.3 Objectives of the
study
The broad objective of the study is to examine the effect
of green marketing on consumer patronage for consumer goods (A study of MOUAU
students). The specific objectives were to:
i.
ascertain the relationship
between eco-branded products and consumers patronage for consumer goods.
ii.
examine the effect of
green label on consumer preference for consumer goods.
iii.
Identify factors that
affect consumers purchase for eco-branded products.
iv.
examine the effect of
environment concern on consumer patronage for eco-branded product
1.3
Research
question
1. What is the relationship between eco-branded
product and consumer’s patronage for consumer goods?
2. What
are the effect of green label on consumer for consumer goods?
3. What
are the factors that affect consumers to product eco-branded products
4. To
what extent does environment concern on consumer patronage for eco-branded
product.
1.4
Hypotheses
of the study
The
following hypotheses are stated in null form
Ho1: There
is no significant relationship between eco-branded product and consumer’s
patronage for consumer goods.
Ho2: Green
knowledge or information, Green consumption, Green trust, Interest in
environmental issues, environmental concern have no significant effect on
consumers patronage for eco-branded products.
1.6 Significance of the
study
The
study focused on effect of green marketing on consumer patronage for consumer
goods (A study of MOUAU students). The study will be of great benefit to the
following group of people:
To
the Consumers of green product; the study will make consumers understand the
essence of green marketing and its impact on the environment as consumers of these
green products will redirect their purchase behavior towards the purchase of
eco-friendly products which might not affects the depletion of the ozone layer
and will encourage the needs for healthy living of both the rich and poor in
the country.
To
the developing nations of the world; the study would be of tremendous benefits
to the developing nations by applying the three R’s of environmentalism; Reduce the amount of waste you
produce, Reuse old items; donate
to the unfortunate, repair if broken and Recycle as much as possible; buy recycled products to support
recycling
To
policy makers; the findings and recommendations of the study will assist policy
makers in formulating policies that will employ firms and industries in Abia
State as well as those in Nigeria to practice green marketing and encourage
environmental friendly products.
To
government; the findings and recommendations will assist them in implementing
policies that will place a ban of industries producing products that are not
environmental friendly.
Researcher
and students interested in a similar field of study will find this work useful
conceptual guide and reference material. The field survey for administration of
the research instrument will be restricted to Umuahia and Aba because they are
the commercial hubs of economic activities in Abia state.
1.7
Scope
of the study
The
study focused on the effect of green marketing on consumer’s patronage for
consumer’s goods (A study of MOUAU student). Its emphasis had been on attitude
behavior gap and social behavior impact of green marketing on the purchase
behavior of the consumers in the state.
1.8 Operational
definition of terms
Green marketing
Green
marketing as the production of security products that meet the environmental
standards, with recyclable and reusable packaging, with better pollution
control methods and operate energy efficiently.
Green product:
Green
Products are product which are recyclable, reusable and biodegradable in
nature. It is produce with natural ingredients and containing recycled
contents, non-toxic chemical. Green products are originally grown and
manufactured under the approved chemical
Consumer’s patronage:
Customer’s
patronage is the perceptual evaluative and psychological process that
contributes to an individual purchasing what he wants at that moment.
Recyclable material:
Recycle
material simply means the treatment of things that have already been used so
that they can be used again.
Environmental friendly
product:
This
simply means products that are not environmentally acceptable, in other words
products that liters the environment e.g Plastic-sealed magazines, Bottled/Plastic drinks, Use of Plastic bags and
excessively packaged pills/drugs etc.
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