Consumer Reactions towards Green Products, Trends in Green Products Marketing Strategies - Research Paper Example

Green Products: A Marketing Research (Student’s Name) (Institution) (Course) (Instructor) (Date) Table of Contents 1.Executive Summary 2 2.Introduction 3 3.Literature Review 5 4.Research Methodology 9 5.Analysis 10 6.Discussion 11 7.Marketing Implications for the Company 12 8.Limitations of the Research Methods 13 9.Conclusion 13 References 14 1. Executive Summary The plan to introduce green products in the marketplace has raised a number of issues. One of the major concerns is the general consumers’ perspective regarding the deterioration of the environment and what the market considers to be the most viable solutions to either slow or do away with the degradation. Such issues play an important role in establishing the consumers’ likely reaction towards the green products (Zaltman, 1973). In order to determine the public’s position regarding the purchase of green products, a sample of buyers were chosen to participate in the research. By reviewing and analysing findings from the research, policies that would be familiar with the consumers can be drawn and implemented to promote the green products. From the respondents’ views, it was apparent that promoting eco-friendly practices has benefits that spread across the divide and have the potential of improving everyone’s life, and this in turns results in a purchasing trend inclined towards green products (Shrum, 1995). From the findings and recommendations of this market research, successful marketing strategies can be implanted to shift the consumers’ opinion towards the purchase of green products and eventually create a sustainable Company venture (Foxall, 1992). 2. Introduction With the rapid industrialisation, demand for easily available but non-biodegradable resources and the general negative exploitation of the environment, concerns have been raised regarding the best policies to curb the increasing threat of global environmental degradation. Key among the recommendations prescribed by various organisations is the introduction and promotion of green products. Essentially, these are items that either haveattributes that are beneficial to the environment or are composed of natural as opposed to synthetic substances. Regardless of the enormous support directed towards the adoption of green products, uptake has been rather slow and this research study seeks to identify the various reasons behind this phenomenon. Even though the products are in production, the consumers’ response and attitude towards them remains to be the greatest challenge(Kalafatis, 1994). It is imperative to determine the target market’s perception of green products in order to gauge their level of interest and possible support of the products. Questions may arise as to how exactly the products are better for the environment compared to similar conventional counterparts and the rationale behind the classification of the products(Tucker, 1981). As a result of the current plans by the company to introduce green products into the market, the need to have a comprehensive report on the likely outcomes of the venture is inevitable. This research study is therefore dedicated to analysing consumer trends, demands and attitudes towards the green products and the best way to achieve success in this undertaking. 2.1. Definition of the Research Problem Emerging concerns are that the consumers’ reaction towards green products could be negative and this would hinder the sustainability of such ventures by the company. Another concern is the general perspective regarding the deterioration of the environment and what the market considers to be the most viable solutions to either slow or do away with the degradation. Such issues determine whether the buyers will be in a position to embrace the green products or shun them(Zaltman, 1973). The attitudes that buyers have towards green products is a very important factor when analysing market prospects as it is a determining element in the success of failure in the long run of the company(Zaltman, 1973). Most of the consumers have their opinions shaped by the background knowledge that they may have acquired concerning green products and in most cases some if may be misleading or ill-advised. It is therefore necessary to find out what the likely barriers towards the purchase of green based products are and if there are any means to mitigate the effects that they have on the company’s sustainability. 2.2. Aims and Objectives of the Marketing Research To determine what the consumers’ opinion on green products is. To evaluate the impacts that the consumers’ opinion on green products has on the purchase of the products. To establish the consumers’ sentiments regarding degradation of the environment To find out what the consumers’ understanding of green products is. To establish if there is a general reluctance by consumers to embrace green products and the reasons behind it. To come up with comprehensive ways of improving the marketing of green products and recommendations on how to promote the products in the marketplace. 2.3. Market Research Propositions This research suggests the various recommendations that can be considered in order to enhance the consumers’ purchase of green products from the Company. The respondents represent the target market and so their views and opinions will shape the outcome of this market research. By reviewing and analysing findings from the research, policies that would be familiar with the consumers can be drawn and implemented to promote the green products. The target buyers are likely to be more willing to make purchases if they can identify with Company’s commitment towards conservation of the environment as opposed to plain marketing ploys to boost profitability(Peter, 1963). 2.4. Significance of the Market Research The has been recent on-going concern for the environment which has in turn heightened the desire to develop products that are environment friendly and have the capacity to appeal to the consumers(Yale, 1998). Despite this realisation, the marketing strategies devised and implemented have not convinced the end users to take to purchasing green labelled products. Most consumers would not immediately see the benefits of purchasing these products even though the long term gains are obvious. The marketers’ approach towards promoting these products is partly to blame for the slow uptake by consumers as they usually fail to break down the complexities that accompany the prospects of these items in relation to conservation of the environment. Information on green products has been readily available for a long time and the enormous benefits that are to be expected from them are clearly known, however consumers are still unenthusiastic about delving into the purchase of such products. By analysing their responses regarding their attitude towards environmental degradation it becomes relatively easy to establish the various ways of making the green products more viable to the end users(Wright, 1994). This market research seeks to provide pointers that would be instrumental in the successful marketing of green products. 3. Literature Review 3.1. Definition and Origin of Green Products In the early days, at the onset of the realization of the damaging effects of pollution and the potentially irreversible levels of its spread, the idea of preventing a further increase in pollution was developed. Some of measures enforced included banning of draining waste water from industries into natural water bodies and singing international agreements that would warrant a drop in the gas emissions from various factories across the world. The U.S Environmental Protection Agency was established primarily to ratify legislation that would be instrumental in the regulation of pollution(Kinnear, 1973). Specialists in the field of controlling pollution were on the rise at the time as it was becoming a major global concern. It wasn’t uncommon to find companies hiring specifically for the purpose of developing innovative ways of dealing with pollution and avoid breaching the laws put in place by governments(Makowar, 2008). Seeking means of compliance meant that the factories had to work extra hard to find means of controlling their emissions which led to the realisation that it would have less financial implications if they did not produce the illegal emissions at all. Besides lowering pollution, the newly proposed practices would have far reaching effects in the increasing of efficiency, reducing waste production and enormous conservation of energy(Tucker, 1981). There was a transition and a total overhaul in the processes and functioning of companies as they began to restructure in order to accommodate the developing aspects of pollution reduction. Even though the manufacturing process at the time was seen to be the biggest contributor to environmental pollution, its subsequent streamlining led more companies to the discovery that their products could also have an impact on the environment even after they had been through the entire manufacturing process. It was necessary to assess the product life cycle and determine whether it could be put to use after the end of its life or it would end up becoming part of the environmental degradation process(Bohlen, 1993). Companies developed schemes to have consumers recycle or re-use products as a means to curb the negative effects of the dead products to the environment. The importance of properly accounting for the amount of products generated from a given sample of raw material became apparent when firms realized that this would have rewarding returns in the long run as they became more responsible regarding the fate of the product after sales(Makowar, 2008). Companies developed means to access raw materials that were eco-friendly and incorporate them in their manufacturing processes when the need to generate products that were not-toxic to the environment heightened(McDaniel, 1993). These developments peaked at the introduction of a process that was inclined towards green manufacturing; generating products with minimal amount of waste production and energy expenditure whilst at the same time maintaining products that were both consumer friendly and eco-friendly. The benefits of supporting green based manufacturing processes influenced many more companies that were yet to embrace the new technology(Weiss, 1980). Aside from maintaining a positive outlook about the company, green products also had the promise of huge returns in the long run. Ultimately the emergence of green products was further fuelled by increasing focus on these new technologies of production with minimal amount of waste coupled with enhanced recycling of products which was both sustainable and profitable to the concerned companies(Makowar, 2008). 3.2. Prior Research on Green Products and Consumers’ Reactions towards Them It has been shown that the general consumers’ understanding of green products is anything that is clean and is not harmful to the environment. This definition encompasses varied items ranging from renewable energy to foods that are organic(Kalafatis, 1994). With the advent of green products marketing and promotions, consumers have demonstrated increased levels of scepticism over the appropriateness of the strategies. They question the degree of honesty behind the marketing ploys as most companies appear to be only after gaining more loyal customers as opposed to actually developing the culture of eco-friendliness and minimal waste production(Tucker, 1981). Consumers have expressed dissatisfaction in the approaches that companies take to demonstrate the relevance of their products and why the term “green” is an appropriate description(Hoek, 1996). Most researchers believe that the reason behind the less that impressive attitude end users have towards green products and their low levels of purchasing the commodities can be attributed to the lack of clear understanding of what green products are about(Roozen, 1997). This is one particular aspect of the marketing strategies that fuels the doubts by the consumers and shapes their opinions against the use of green products. When a sample of buyers was asked to outline some of the major reasons they are slow to adopt the use of green products, most of them pointed out the lack of trust in the marketers’ motive to promote the products. They were torn between the eco-friendly aspect and the profit driven strategies utilised by the companies. A positive influence on the consumers’ opinion and adoption of green products was the health benefits accompanying the products. Most of the buyers had a tendency to be having support of products that would ultimately play a part in the improvement of their lives and those of others close to them from a health wise perspective(McDaniel, 1993). 3.3. Trends in Green Products’ Marketing Strategies Since the onset of the green products, companies have continuously worked on creating and improving on already present policies to market the green products. These strategies have been an extension of the need to incorporate energy conservation and waste reduction into their array of products(Kinnear, 1973). A survey of the recorded sales of green products including foods confirms that there has been a rise in the uptake of green products since 2007. This increase is inferred from the positive media coverage, marketing trends and consumer trends in the use of the products. Analysis of future prospects show positive expectations as there is the promise of rapid expansion and opportunities for businesses to reap benefits in the long run from venturing into the green products’ development and marketing. It has been estimated that the green marketplace will have reached close to $400 billion by 2011(Shrum, 1995). The identified consumer areas expected to drive the increase include organic food and renewable energy. The two have been classified as the ones most viable for innovation and appeal to consumers. Most companies have taken to mobilising resources towards the environmental audit systems and means of reviewing the impact of their products on the environment and develop means o reducing production of wastes in the manufacturing processes. Aside from this, there have been developments that promise energy efficiency and environment friendly production systems. Major companies world over procure offices and operational bases in the developing countries and this serves to influence the set of practices that nurture green products and protect the environment(McDougall, 1993). The number of products under the green label has been steadily rising of the years to include items ranging from cars, buildings and biodegradable commodities. Claims such as environmental friendliness, all natural among others arose to support the marketing strategies by the companies. In part, this has led to the distortion of what green actually means and has left consumers torn between c hosing what is most appropriate for them as buyers and end users. Consumers are generally not concerned with the sustainability of products and as a result they may not be supportive of certain measures proposed by various companies. Regardless, studies have demonstrated that the notion of sustainability plays a critical role in consumers’ decisions to purchase green products(Foxall, 1992). The sustainability aspect goes beyond mere purchases but also incorporates the consumers’ participation in making decision regarding the policies and strategies devised to promote the green products. It is a widely accepted notion that the purchasing considerations made by consumers have more impacts on the overall sustainability of particular products(Makowar, 2008). Several classes of consumers have been identified in order to enable companies target the appropriate consumers with the varied types of green products. One of the major classes comprises of buyers who are keen on purchasing products with beneficial impacts on their lifestyles and health. Marketers understand that such target groups do not necessarily have interest in products with perceived eco-friendliness; rather they are the group that are conscious about their health. Products ranging from organic foods to pet foods are considered to be their top priorities(Shrum, 1995). On the other hand there exists a group on consumers, the environmentalists and conservation centric variety that gauges products based on their direct impact on the environments and the prospects of being recycled or re-used. They tend to be involved in the purchase of items ranging from green cars, green building and use of services that have the green label. Despite the economic hardships, consumers are more inclined towards purchasing green products; this in turn offers a consistent and promising marketplace outlook for the products and companies behind their production(Weiss, 1980). 4. Research Methodology 4.1. Focus Groups The qualitative research aspect of this marketing research relied heavily on the use of focus groups. Participants were selected from a cross-section of the consumers and requested to take part in the group discussions with the green products as the main theme. The discussions were held in a comfortable room and I used a tape recorder to capture the participants’ sentiments as we proceeded. To familiarise the group members with the purpose of the research a quick and concise introduction was presented and some of the questions likely to be posed were mentioned. I was mainly concerned with their responses towards questions related to their opinions, attitudes and perceptions towards the green products. I was interested in two distinct groups of people who were the expected consumers of several categories of products with the green label from my company. The first group comprised mainly of individuals who were not familiar with the green concept. They seven candidates were carefully recruited in order to identify any affiliations that would influence their responses or result in a biased presentation. After settling in a comfortable, moderated setting, the respondents were asked about their opinion on conservation of the environment, what they understood about green products after a session of being briefed on the green principles. The respondents offered satisfactory responses that I deemed to be honest and relevant to the questions asked. The second group of participants to be considered consisted mainly of people had a background knowledge of the green products and their implications on companies, consumers and the environment ain general. The likelihood of receiving biased responses was eliminated with the careful recruitment of the participants. I sought to find out what their thought were on the degradation of the environment, their understanding of what green products are and whether they would have any reasons to purchase green products from a particular company as opposed to the conventional products that have been around for a longer period of time. 4.2. In-Depth Interviews The second research method involved conducting comprehensive individual interviews in order to get a clearer understanding of the consumers’ feelings towards the various subjects covered by this research study. Individuals were randomly selected irrespective of their affiliations and requested to participate in the interviews. This approach was used for the purposes of collecting detailed information concerning the views, personal opinion, attitudes and perspectives of specific people without outside influence. This was a means of separating individual responses from group based responses. The interviews generally revolved around the idea of environmental conservation and the respondents’ thoughts on the purchase of green products. Respondents were afforded a comfortable setting to participate in the interviews and given ample time to respond to questions asked in the best manner they could. A good number of them affirmed the need to prevent environmental degradation but still found no incentive to purchase green products even though they had proven to be eco-friendly. The feedback I got from the participants was satisfactory and I deemed the interviews to have been a success. 5. Analysis The respondents from both focus groups and the in-depth interviews provided invaluable information that would be instrumental in formulating policies and strategies to market the green products. Most of the respondents who expressed concerns about the environment and demonstrated knowledge of the green products suggested they would be more willing to purchase the products as opposed to those who showed little or no interest in the preservation of the environment(Kinnear, 1973). A considerable number of respondents expressed concerns that the promotion of green products was a marketing ploy to boost the profitability of companies’ in the guise of being eco-friendly. There seemed to be a general notion that companies with the desire to have long term sustainability would be more willing to invest in green products and have marketing strategies to entice consumers(Zinkhan G. , 1994). When asked about whether or not they would be willing to purchase the green products, most respondents said that it would be dependent on the company’s policies towards conservation of the environment as that would demonstrate their commitment and hopefully assure them of the value of the commodities. 6. Discussion For the purposes of getting a detailed outlook of the consumers’ position regarding green products, the two research methodologies described above were used to gather the information. The focus groups seemed to provide a more robust environment for the exchange of information albeit with the risk of losing out on respondents who were not open with their opinions. Responses on all the key issues raised were considered and documented(Zaltman, 1973). Most of the participants of the first focus group were in support of the conservation of the environment, however the smaller number who either had to opinion or blatantly pointed out that they were not overly concerned about the environment acknowledged that it was indeed important to promote conservation of the environment. Promoting eco-friendly practices has benefits that spread across the divide and have the potential of improving everyone’s life(Shrum, 1995). It was noted that consumers who held strong opinions concerning the environment had a direct influence on the companies promoting green products. Respondents participating in the interviews pointed out that their purchase of the green products would be strongly linked to the company’s attitude towards environmental degradation. Consumers had a tendency to classify products that are similar regardless of the nature of their production and whether or not they were eco-friendly(Foxall, 1992). The results on the interviews revealed that even though savvy consumers are aware of the implications of green products to the environment and the benefits accompanying them, this particular awareness is hardly ever obvious in their behaviour. This explains why there is a general reluctance to purchase the green products. Consumers’ understanding of the green principles is an area of interest as there has been evidence to suggest that level is hardly commendable. A false notion of a high degree of familiarity with these principles is created by biased market surveys which report magnified levels that do not correspond to the actual levels. The low levels of understanding can be directly linked to the complexities involved in illustrating the importance of adopting green products(Wierenga, 2002). The results of the research seemed to suggest that the educated and the middle class consumers had a better understanding of the green products and were more conscious of environmental degradation. 7. Marketing Implications for the Company The Company will have to invest a lot in public awareness strategies in order to have a successful marketing of the product. The general lack of understanding by the potential consumers regarding the green products and the long term benefits they have on the environment is a major reason as to why the purchase of the products is low. The Company would have to integrate aspects of direct environmental conservation measures and imparting knowledge about green products to the consumers for better chances of achieving success in the long run. Marketing strategies would have to be streamlined to accommodate various aspects of eco-friendliness as consumers are bound to be split between various categories of green products(Yale, 1998). Such distinct groups would have to be catered for separately by the marketers. More funds would have to be set aside not just to provide public awareness, but also to demonstrate the long term benefits of the green products and the Company’s dedication towards conservation of the environment. 8. Limitations of the Research Methods During fieldwork, research access proved to be extremely hard to obtain; according to Fowler (1993) research shows that the intricacies in gaining information from individuals. For example, during this research, 15 individuals turned down the request to participate in the interviews. Of those who honoured the request, a few responded negatively or were unwilling to share information in certain areas. Even though measures to curb biased responses were instituted, there was always the possibility of obtaining information that was influenced by an external player. Most of the participants presented conflicting ideas regarding the same subject thus giving us the extra task of filtering their responses and determining what was implied or meant. 9. Conclusion After extensive research, it was apparent that consumers are aware of the measures proposed to curb the degradation of the environment, green products being among them(McDougall, 1993). However, their reaction towards practices that are beneficial to the environment in the long term tends to generally detrimental to the conservation of the environment. Lack of motivation and incentives to embrace the green products is a factor that is associated with the phenomenon. From the findings and recommendations of this market research, successful marketing strategies can be implanted to shift the consumers’ opinion towards the purchase of green products and eventually create a sustainable Company venture(Wierenga, 2002). References Bohlen, G. S. (1993). 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