ABSTRACT
The study investigated on the effect of green marketing practice on socially responsible behaviour among millennials in Michael Okpara University of agriculture, Umudike. The major objectives of the study are; to identify drivers of sustainability purchasing among millennials, to identify millenials awareness level of green marketing practices by firms and which consider important when buying a product, to identify the influence of green marketing practice of buying behaviour of millennials and to examine influence of social media on socially responsible behaviour of millennials. To achieve the objectives of the study, survey research design method was adopted. The researcher adopted primary data in getting the required information. The population of the study is made up of all the students of Michael Okpara University of agriculture Umudike. While the sample is made up of 120 after adopting multi-stage sampling techniques. In testing the hypotheses, simple regression analysis was used. The findings revealed that Consumers are strongly urged to sustainability practice. The findings further revealed that major medium through which the respondents receive information regarding to green marketing product and sustainability are television, magazines/newspapers, social media, internet ads/search engines and friends/relatives. Perceived drivers of sustainability purchase are international standard, quality (satisfaction), education/ awareness, expected benefit and social responsibility. The researcher recommends that consumers should be able to easily differentiate green products from the non-green based on their knowledge and exposure to social media. Further, the price on the green products should be affordable to encourage purchase. The study also recommends that marketers should emphasis on providing clear information about green products to promote consumer familiarization with products and enhance their knowledge of green products.
TABLE
OF CONTENTS
Title Page............................................................................................................ i
Declaration................................................................................................ ii
Certification............................................................................................. iii
Dedication................................................................................................ iv
Acknowledgements................................................................................... v
Table of Contents.................................................................................................... vi
List of Tables....................................................................................................... ix
Abstract..................................................................................................... x
CHAPTER
ONE: INTRODUCTION
1.1 Background of
the study ................................................................................................................... 1
1.2 Statement of Problem..................................................................................................... 6
1.3 Objectives of the study ................................................................................................................... 8
1.4 Research Questions ................................................................................................................... 8
1.5 Research Hypothesis ............................................................................................................................................... 9
1.6 Significant and Justification of the Study
................................................................................................................... 9
1.7 Scope of the Study ................................................................................................................. 10
1.8 Operational Definition of Terms ................................................................................................................. 10
CHAPTER
TWO: REVIEW OF RELATED LITERATURE
2.1 Conceptual
Framework............................................................................................... 12
2.1.1
General overview of green marketing................................................................................................. 12
2.1.2
Characteristics of green marketing ................................................................................................................. 13
2.1.3
Benefits of green marketing ................................................................................................................. 14
2.1.4
Adoption of green marketing in firms ................................................................................................................. 16
2.1.5
Challenges of green marketing................................................................................................. 18
2.1.6
Green marketing practice ................................................................................................................. 22
2.1.6 The principles of green
marketing ................................................................................................................. 23
2.1.7 Green
marketing and consumerism ................................................................................................................. 24
2.1.8
Benefit of green marketing and green product development ................................................................................................................. 26
2.1.9 Factors influencing attitudes and purchase
behaviour of green products................................................................................................... 27
2.1.10 Generation Y (The Millenials)............................................................................................... 30
2.1.11 Generation X (The Millenials)............................................................................................... 32
2.1.12 Characteristics of generation X.............................................................................................................. 33
2.1.13 Comparison
between generation X and Y and most preferred.................................................................................................. 33
2.1.14 Factors influencing the attitude-behaviour gap........................................................................................................... 34
2.2 Theoretical framework............................................................................................... 41
2.2.1 The
institutional theory....................................................................................................... 41
2.2.2. The stakeholder theory....................................................................................................... 41
2.2.3
Functional Value ................................................................................................................. 42
2.2.4
Social Value ................................................................................................................. 43
2.2.5 Attitude
behavior gap theory....................................................................................................... 43
2.3 Empirical review...................................................................................................... 45
2.4 Gap in the literature .......................................................................... 49
CHAPTER THREE: RESEARCH METHODOLOGY
3.1
Research design ................................................................................................................. 51
3.2
Area of study........................................................................................................ 51
3.3
Population of the study........................................................................................................ 52
3.3.1
Determination of sample size ................................................................................................................. 52
3.4 Method of data
collection................................................................................................. 52
3.7 Method of Data
Analysis................................................................................................... 53
3.8 Model
Specification............................................................................................ 53
3.9 Validity of
Instrument ................................................................................................................. 54
3.10 Reliability
of Instrument................................................................................................ 55
CHAPTER FOUR
4.1
Data presentation, analysis and discussion on findings.................................................................................................... 56
4.2
Distribution of respondents based on awareness level of green marketing
practices by firms ................................................................................................................. 58
4.3
Distribution of respondents based on consumer self-identification to green
concern ................................................................................................................. 58
4.4
Drivers of Sustainability Purchase................................................................................................... 60
4.5
Information regarding green product and sustainability ................................................................................................................. 61
4.6
Green consumption behavior based on exposure to social media....................................................................................................... 62
4.7
Factors that encourage green marketing practice of millennials for responsible behavior ................................................................................................................. 64
CHAPTER FIVE: SUMMARY OF
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of
Findings................................................................................................... 66
5.2 Conclusion............................................................................................... 66
5.3
Recommendations................................................................................... 67
References............................................................................................... 68
Appendix
................................................................................................................. 76
LIST OF TABLES
Table
4.1: The demographic profile of millennials in the study ................................................................................................................. 56
Table
4.2: Distribution of Respondents Based On Awareness Level Of Green Marketing
Practices By Firms........................................................................................................ 58
Table
4.3: Distribution of Respondents Based on Consumer Self-Identification to Green
Concern................................................................................................... 59
Table
4.4: Drivers of Sustainability Purchase................................................................................................... 60
Table
4.5: Information Regarding Green Product and Sustainability........................................................................................... 61
Table
4.6: Green consumption behavior based on exposure to social media....................................................................................................... 63
Table
4.7: Factors that encourage green marketing practice of millennials for
responsible behavior................................................................................................... 64
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
As the world continues to witness
increasing environmental threats and other disasters such as climate change,
pollution, 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 it's finite resources. The release of poisonous gas into the
atmosphere by companies during production and the dumping of refuse at
undesignated points causes air pollution and environmental issues. Globally,
The World Health Organization (WHO) (2012) estimates 4.3 million fatalities are
attributed to air pollution. The breathing of polluted air have severe health
effects such as asthma and increased cardiovascular risks. More so, oil/energy
sector activities for the provision of raw materials needed in the production
of goods and services have also resulted in pollution of land, atmosphere,
vegetation and rivers. (Eloamaka Carol Okonkwo, 2017). This suggests or implies
that production and consumption of goods have led to the emergence of a large
number of environmental problems faced by Nigerians in general.
In practice we can each think of
situations in which people do not engage in green activities with serious
implication on social, economic and the environment (Dahlstrand,2010). For
instance there has been occasions where many of us failed to purchase
environmentally sound products despite the wide awareness, availability and
incentives.This explains the view in quantitative studies, that
pro-environmental attitudes rarely translate into actual green consumption
behavior (Yeonshin Kim and Sejung Marina Choi, 2005) . This attitude by persons
who profess to practice green purchasing but are reluctant to adhere to its
dictates which coined the attitude-behavoir gap and represents a significant
challenge threatening continued growth of the green industry (Kanen and
Heinonen, 2009).
In order to deepen behavior, companies
have resorted to green marketing and production of eco-friendly or green
products that have less harmful effect on the environment, than the
conventional products (Sen, 2014). According to 2016 Mediafacts reports, about
45.2 billion naira was spent by companies on promotional advertisements in
creating awareness for green marketing practices. As a result consumers are becoming
more and more aware of environmental problems and are actively trying to reduce
their impact on the environment by buying green products. The term green has
become a major element driving the social responsibility behavior of a number
of consumers throughout the world, to find out how they can live more
environmentally friendly life (Sen, 2014).
The growth of social media or networking
have advanced the awareness, understanding and practice of green consumption
and importance of sustainable practice around the world (Andrew Perrin, 2015).
Social media has supported green marketing strategies to widespread companies’
attitudes and behaviors towards social and environmental concerns. It has
helped companies to share their current practices in the various platforms, and
to verify their real behaviors. A shift towards more transparent management
operations that have lead into higher information disclosure that benefits
companies giving legitimacy, and its stakeholders by raising their trust upon
companies. Companies’ goals have included promoting sustainability among its
stakeholders, and influence people’s behaviors to reduce their environmental
impacts (OECD, 2009). The prevalence of
environmental issues in the media and social environment has encouraged a large
majority of consumers to develop environment attitudes and intention to
purchase green products and perform green behavior (Peattie, 2010).
Promoting green purchase behavior means
encouraging and persuading people to buy environmental friendly products. By
adopting green marketing practices, firms can emphasize their social
responsibility and promote their business as friends of the environment.
Effective green marketing practices by companies can lead to social induced
behavior for consumers to go green thus boosting green purchase (Tan and Yeap,
2012). With such awareness and practice, companies can benefit from it in terms
of having more customers which leads to increase in production and by extension
improve the company's financial performance in the long run.
The increasing concern for the environment
and the opportunities it open for business is due to consumers' emotional
involvement regarding different environmental matters (Lee, 2008). Yeung
(2014), mentioned that environmental concern represents a consumer’s doubts,
fears, likes/dislikes and sympathy regarding the environment and it's quality.
Environmental concern is what interests us about environment because of the
importance affection and anxious feelings it carries for the self. Environmental
concern hold three interrelated issues: concern for the biosphere, concern for
the people, and concern for the self (Schultz, 2000).
In
Nigeria, there are instances of health issues arising from such environmental
activities. Health related environmental problems in Nigeria vary with the
social and economic development achieved by different states. According to
World Development Report (1992), anually, more than 2 million deaths and
illnesses such as typhoid,malaria, cholera, river blindness and guinea worm are
attributed to water pollution and poor household hygiene. According to Dagher
and Itani (2012), peoples knowledge, concern, attitudes, and buying behavior
for environmental issues which is partially as a result of social induced
feelings that their life is in danger due to environmental issues such as air
pollution, global warming, health issues etc. Given these concerns, companies
can use plausible measures to induce socially responsible behaviors among
people. Many a times, people spend so much time thinking or asking what
government should do without looking at attitude and response to eco- practices
by actors in the environment.
Being green is beneficial for companies.
It brings significant opportunities to boost their sales and profits to gain
advantage over companies with no or fewer environmental interests and increase
their market share among green consumers (Ottoman, et al, 2012). To achieve
this, companies use the Triple Bottom Line to assess the profits they are
making through their corporate sustainability solutions (Chamberlain, 2016).
The Triple Bottom Line method is used by companies to see beyond the
traditional bottom line of business to the profits that they make socially,
environmentally and economically while practicing green marketing. Measuring
their business using the Triple Bottom Line is one of the best markers of how
sustainable their business is, and how profitable their green marketing
practice really is (Chamber Lain, 2016).
Green issues are not restricted to any group
of people but in this study, the interest is on Millennials or the Generation
Y. This generation refers to young persons of about 18 years old. These young
consumers are considered to be the driving power behind the increased attention
on green products (Heavey, 2007). Though their green attitude are positive,
these attitudes are not in any case predictors of behavior (McDougle, et al,
2012). Hume (2010) notes that there exists a clear pattern of contradiction
between how Millennials feels and acts in green purchasing, which makes this
group interesting to research as they could and should be capable of making
difference in the society since they are the leaders of tomorrow.
Central in the present study is the relation
between attitudes and behaviour. The most frequently cited theory on the
attitude-behaviour relation is the Theory of Planned Behaviour (TPB) (Ajzen,
1991). The Theory of Planned Behaviour proposes that behaviour is affected by
behavioural intentions, which in turn are affected by attitudes towards the
behaviour. The attitude can be defined as 'the result of a consumer's
assessment of particular behaviours' (Ajzen, 1991).A lot of researchers studied
the attitude-behaviour relation when it concerns green products, and all
conclude there is a wide gap between what consumers think and what they do
regarding to making green purchases (Eck, 2009; Anon, 2009; Finisterra et al.,
2009; Basu & Hicks, 2008; Darnall, Pointing & Brust, 2010; Fergueson,
2011). Young (2004) names this gap the attitude-behaviour gap. The
attitude-behaviour gap is generally formed when a consumer is concerned about
sustainable issues and thinks it is important for companies to be socially
responsible and produce green products, but do not interpret their positive
attitudes when making a purchase.
Nevertheless, the relationship between
attitudes and behaviour cannot be rejected completely. Kolkailah et al. (2012)
investigated possible factors influencing green purchasing behaviour and showed
that consumer’s positive green attitudes are actually reflected in an increased
purchase intention. Similar studies also show a significant relation between
attitudes and sustainable behaviour (Mohr et al., 2001) and attitudes towards
green products significantly impacting consumer’s green purchase intention
(Mohr et al., 2001; Sen & Bhattacharya, 2001; Rahim, Waheeda &
Tajuddin, 2011). However, attitudes
toward green are no strong predictors in green purchasing behaviour (Davis,
2012; Dawkins and Worcester, 2005; Csutora, 2012). Green attitudes may suggest
green purchasing behaviour when taken in isolation, but when looking at the
broader purchasing decision, positive green attitudes might not reflect in
actual green purchasing behaviour (Vermeir & Verbeke, 2006).
In Nigeria, more than 55% of the country's
population demographic constitue of millennials and over 80% students in
Michael Okpara University of Agriculture Umudike, Abia State are millennials.
According to Umoh (2016), if green marketers hope to wo true environmentalists
with green products or services they should develop strategies that target the
Millennials. The active millennial is a huge consumer of the pop culture of his
generation. He follows celebrities such as movie stars, musicians, fashion
designers, models, sport personalities etc and takes them as role models. Most
of these super stars also fall into the category of millennials which has
positive implications and can serve as a good strategy, firms can use to induce
socially responsible behavior among millennials.
Therefore, this study seek to explore in
details and based on our environment determine the effect of green marketing on
socially responsible behavior of millennials in Michael Okpara University of
Agriculture Umudike.
1.2 Statement of Problem
Green marketing has not been researched
extensively especially in less developed countries such as Nigeria (Kolkailah
et al; 2012). Particularly in Michael
Okpara University of Agriculture Umudike where this research has not been carried out in the past to the best knowledge
of this researcher. The situation is quite unfortunate because the millennial
constitute a high percentage of about 80% of Michael Okpara University of
Agriculture students.
Public concern for environmental issues
has gradually but steadily increased over the past three decades since the
inception of Earth Day (Kim and Chio, 2015). There has been growing appeal to
preserve nature and biodiversity (Guerriero G, 2013) . This has lead this
researcher to voice his support for environmental protection by focusing this
study on millennials. This is because
millennials are the future of any nation or society. In Nigeria for instance they made up 55% of the
country's population demographic ( Nigeria Demographic and Health Survey, 2008
) About 80% of the students population in most universities in Nigeria falls
within this age bracket.
One of the major problems of this study is
the poor attitude of students (millennials) to ecological issues, due to the
lawlessness nature of Nigeria and the economic crisis often faced in Nigeria,
ecological issues are the last thing in the mind of any millennial in Nigeria.
Most especially in Michael Okpara University of Agriculture where this research
is been carried out. Millennials have there mind focused on getting money, the
fashion and music trending etc giving them no time to think about the harm they
are causing to the environment or the ecological system where they find
themselves in.
Greening Africa Report 2009, according to
the Nigeria Energy Commission, there are a lack of technologies, a dearth of
professionals and an absence of appropriate policies and regulations to
stimulate green practices. The lack of passion of green efforts by
organisations is also an issue. Most organizations or firms in Nigeria know the
environmental problems faced in Nigeria which they can help solve or reduce
it's negative effect through green practices, but due to the lack of
sensitivity of green efforts, laws and regulations will channel the resources
required to carry out these green practices into the organization's production
process to make more profit or better still into the individual pockets of the
organization leaders.
Also the level of awareness is low, this due
to the fact that both the government and organizations responsible for creating
the needed awareness are channeling the resources that should be used in
creating these awareness in other things. Just like rebranding Nigeria, the
government needs to embark on environmental initiatives to develop a green
consciousness amongst Nigerians.
The attitude-behavior gap theory is also a
problem in this study. The attitude-behavior gap refers to the disconnect
between what we say about our attitudes and what we actually do. Most
Millennials will say they know or acknowledge the practice of green while they
don't put the green practices they know about about or acknowledge into
practice.
Millennials seen as the leaders in the
nearest future makes them the right group of people to focus on when impacting
the effects of green marketing practices on socially responsible behaviour of
individuals in any given society. It is because the challenges of green
marketing is so great hence it is important to study it in relation to
adherence to its practice among Millennials
1.3 Objectives of the study
The major objective of this study is to
ascertain the effect of green marketing practice on social responsible behavior
among millennials. The specific objectives are to:
i.
Identify drivers of
sustainability purchasing among millennials
ii.
Classify millennials in
Michael Okpara University of Agriculture according to their self-identification
to green concern
iii.
Identify millennials awareness
level of green marketing practices by firms.
iv.
Identity the influence of
green marketing practice of buying
behavior of millennials
v.
Examine influence of
social media on socially responsible behavior of millennials.
vi.
Identify the medium of
information about sustainability to consumers and where they hear about it.
1.4 Research Questions
The following research questions were
explored to gain more insight on the subject matter and they include the
following:
1.
What is the influence of
green marketing practice on buying behavior of Millennials?
2. What
is the level of awareness of Millennial green marketing practices?
3. What
is the extent to which green trust, availability of green products and green
marketing campaign have on the green purchase behavior of Millennial?
4. To
what extent does attitude-behavoir gap affect green purchase of Millennial?
1.5 Research Hypothesis
H01: There
is no significant influence of green marketing practice on the buying behavior
of Millennials.
H02:
There is an insignificant level of
awareness of green marketing practices among Millennials.
H03: There
is no significant difference between social media exposure and purchase
behavior of Millennials.
1.6 Significant and Justification of the
Study
This study will be justified by the fact
that the researcher took an in-depth study of green marketing practice on
socially responsible behavior in Michael Okpara University of Agriculture
Umudike. As firms in developed and developing nation adopt Green marketing
practice by employing the use of three R's meaning Reduce, Reuse and Recycling
of the product in other to keep and maintain environmental cleanliness. These
has prompted the researcher to investigate the effect of green marketing on the
socially responsible behavior among Millennials.
The findings and recommendations of this
study will guide students interested in similar field of study to be socially
responsible in their purchasing and equally assist those conducting similar
research in future.
1.7 Scope of the Study
The study will focus on the effect of
green marketing practice on socially responsible behavior among Millennials in
Michael Okpara University of Agriculture, Umudike.
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 products which are
recyclable, reusable and biodegradable in nature. It is produced with natural
ingredients and containing recycled contents, non-toxic chemicals. 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.
« Non
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
« Socially
responsible behavior:
Socially responsible behavior means that
people and organizations must behave ethically and with sensitivity towards
social, cultural, economic and environmental issues. Striving for social
responsibility helps individuals, organizations and government have a positive
impact on development, business and society with a positive contribution to
bottom line results.
« Purchase
Behavior:
This simply means the
attitude individuals exhibit in the process of acquiring goods, these behavior
may be either positive or negative and it usually triggered by the prices of
such products.
« Millennials:
Millennials are
considered to be individuals who reached adulthood around the turn of the 21st
century. They are important consumer groups as they provide an indication of
future purchase tendencies towards brands and, hence their perception of social
media marketing communications are significant to companies (Barenblatt et al
2011).
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