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Business Research Methods MGT-303 Research Proposal Name
Business Research Methods MGT-303 Research Proposal Name
MGT-303
Research Proposal
Name :
Submitted to:
Submission Date:
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
RESEARCH TOPIC:
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
TABLE OF CONTENT
ACKNOWLEDGEMENT...................................................................................................4
ABSTRACT.........................................................................................................................5
CHAPTER 1: INTRODUCTION........................................................................................6
1.1 Overview
1.2 Background
1.3 Pakistani Context
1.4 Research Question and Significance of study
CHAPTER 2: LITERATURE
REVIEW.............................................................................11
CHAPTER 3:
METHODOLOGY......................................................................................14
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
BIBLIOGRAPHY..............................................................................................................22
APPENDICES..................................................................................................................23
Appendix A: Questionnaire
Appendix B: Tables
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
Acknowledgement
All praise due to Allah, the Most Merciful, the Most Forgiving, the Most Generous, the
Controller of hearts and gazes, and the all-knowing of that which is open that which is
hidden. We praise HIM with a praise that is eternal, throughout the night and the day.
All respect to his Holy Prophet HAZRAT MUHAMMAD (Peace Be upon Him) who
brought the light of knowledge when the humanity was wandering in the desert of
ignorance.
We are highly obliged to Allah who gave us the strength and showered his blessings over
us because of which we are able to complete this report in time.
First and foremost, we would like to express our greatest gratitude to our supervisor Sir
Umer Mukhtar who guide and helped us a lot throughout this project. He is always there
for us in such a challenging task. His support and suggestions give us many benefits and
motivation to present such effort full working.
We feel highly obliged and earnestly pay humble thanks to our most affectionate Parents
for their moral and financial support and encouragement.
At the end, we are also thankful to all those people and their great co-operations,
suggestions and guidance enabled us to complete our project successfully. We wish all of
them a bright future.
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
ABSTRACT
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
LIST OF ABBREVIATIONS:
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Business Research MethodImpact Of GREEN MARKETING on Consumer Purchase
CHAPTER 1
INTRODUCTION
Green marketing refers to the process of selling products and/or services based on their
environmental benefits. Such a product or service may be environmentally friendly in itself
or produced in an environmentally friendly way, such as: Being manufactured in a
sustainable fashion.
Overview:
Society has sprain to be sensible as regard to the disastrous biological nursery gasses which
are bringing on a harmful atmospheric deviation due to industrial operations (Chen, 2011).
The main causes of environmental disorders are global warming, pollution of air,
exhausting of ozone layer and solid wastes.
In order to reduce pollution, now most of the organizations are shifting from traditional
marketing to green marketing. Ottman (1992) suggests if a firm wants to start green
marketing then they have to apply green marketing models into their marketing techniques.
Most of the products which consists eco-friendly factor are purchased more than others,
also they have to provide facts and figure in order to make green brand and enhance green
knowledge (Peattie, 1992). Additional information is required to inform the customers to
pursue customers. Many organizations are now focusing on waste reduction in their
operational processes and environmental management systems. This marketing has
promoted many companies to embrace eco-friendly policies in the strategies, items, costs,
price and different affairs. Initially the expenses are high for adopting green means but in
the later stage there are many benefits for them.
Values, norms, culture, psyche and society are the different mediums through which buying
action of customer are depended upon. Every customer has his/her’s intentions to purchase,
but the customers who are loyal with the environment; they don’t compromise with
anything so they tend to buy products which are friendly for the environment.
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Background:
“Green Awakening” started in 1960’s and made it the initial phase in which people started
to know about the environmental disorders. 1970’s was the era of “Taking Steps” which
was that people stopped purchasing harmful products and companies started to take steps
to reduce the dangerous items or waste because of customers and political stress. Academic
pamphlets and booklets gave mediums for companies to remain in the market, so that the
companies could change their policies and techniques. In late 1980’s green marketing or
eco-friendly consumption came in to existence in the lives of human beings (Makower,
1993). Because of the green awareness, companies started to demand additional cost to
reduce waste and this led to a new drift in marketing (Crane and Peattie, 2005).
There are many environmental problems in Pakistan and people are less concerned about
these disasters due to ignorance and less knowledge. Government is also not focusing upon
the global warming problems.
In past, organization’s core strategy was to make long lasting relations and making
consumers satisfied but now as most of the customers are getting awareness about green
items, the strategy is shifting towards to obtain sustainable competitive advantage (Hassan
et al. 2012).
Even though much research is done on green purchase and consumption but still the main
causes of purchase of these items are not known.
In many progressing countries like Pakistan, Bangladesh, India and many other countries,
green purchasing is at its initial phase. In country like Pakistan the notion of green
advertising isn’t used at wide perspective. But still some companies are modifying their
strategies as environmental issues are main cause. Due to exhaustion of natural resources
and cutting down of trees, global warming is happening which is causing danger to the
atmosphere of the country. As the population of Pakistan is increasing day by day, the
resources are decreasing and the environment is effecting in harmful manner.
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In order to motivate customers to buy green items, companies need to provide rich
information about the benefits of these items. According to a research firm Athens
(Pakistan), 92% of customers have shown positive response towards green products
(Ahmad, Ali, 2010). In Pakistan, corporations face low competition in the market that uses
green products, which also gives them edge for long lived cost of manufacturing.
Consumers now are much aware of eco-friendly products but still there are constrains in
the utilization of these products and also for the organizations in their manufacturing
processes (Ali, 2011).
Some examples of the firms which are transferring to green products are KFC Pakistan,
Hyperstar and Metro “Cash n carry”. They have shifted from plastic shopping bags to
eco-friendly bags. This will reduce plastic utilization which is harmful for environment.
Other example is of Nestle water bottles. They have reduced 17% of plastic. These
activities show that they care for the country and the atmosphere. Also this impacts in a
positive way.
This research is limited to Pakistani market, as in depth research isn’t done here before.
Green marketing is in its embryonic phase, so the research is worthy for Pakistan. This
research will evaluate have green perception, green awareness and green trust effect the
buying process of customers.
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CHAPTER 2
LITERATURE REVIEW
Tseng (2013) interpreted this variable as “the ability for a buyer to recognize and
to recall that a brand is environmental friendly”. Abd Rahim, Ahmad Zukni, Ahmad,
& Lyndon (2012) stated that to increase brand awareness and eco friendly benefits of
green products, government also contributes by advertising. During purchase consumers
mostly overlap the concept of green knowledge and attributes of the brand and item
(Zhao et al., 2014; Matthes et al., 2013). In earlier researches green trust, green brand
image and green awareness are seen as the key roles in utilizing green products (Chen,
2010). Due to large consumption of electronic products our environment is damaged so
companies now days are using green awareness to satisfy consumers green expectations
(Ng 2013). According to Ottman (2008) findings there is a logical bond among green
brand image, green trust and green brand preference If a company focuses on informing
its positive attributes of green products to customers then the realized risk is minimized
(Chen, 2012).
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Social Responsibility:
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Mohr et al. (2001) explained this by stating “The pattern of purchasing and
consuming products that maximizes long-term benefits for, and minimizes hazardous
effects on consumers and societies.” Peattie and Charter (2003) insists that advertisers
should first plan that what kind of eco-friendly product customers are searching for in
their brand and items, whether the company is socially accountable or they want
alternative benefits. Ellard; MacDonnell; Pepper; White (2012) stressed upon good
living, welfare and justice for future generation can be attained by encouraging socially
responsible utilization to the consumers. According to Schwartz (1992, 1994) social
values varies from person to person as all have different traditions depending upon their
social values. (Kilbourne et al., 1997) comprehensively stated that consumption of green
products improves society and worker’s growth, community, fair allocation of capital,
improves welfare, better living and in charge of society. Marquis and Qian (2013)
justify that social responsibility teachings are mostly given by the government of the
particular state.
The forces which urge customers to the purchase of green products are operating
price benefits, green features, price benefits of a specific item (Thogersen et al.,
Boztepe, 2012) product He et al. (2016) summarized that customers who believes in
green products performs recycling and uses non plastic bags. Kleiner (1991), and
Winski (1991) concluded from their research that is difference between customer’s
attitude towards positive environmental problems and intentions to buy. Manaktola and
Jauhari (2007); Vandermerwe and Oliff (1990) states that there are a lot of people who
have concerns for eco-friendly products and they are also willing to purchase even with
extra money. The Theory of Reasoned Action (TRA) has described customer’s decision
making in detailed ways (Han & Kim, 2010). According to TRA, behavior has two main
factors, one attitude towards norms and second is performing the action (Han & Hsu,
2010). According to the findings of Vazifehdoust (2013), consumer’s purchase
willingness towards green products depends upon green perceived values and positive
attitude with green service or product.
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CHAPTER 3
METHODOLOGY
Research type:
This project is done through quantitative research. In this research regression
models, questionnaires and IBM SPSS statistics are used for analysis.
Data Type and Research Period:
The research done on this project is primary as the information gathering was done
through primary data which includes calculation, investigation and questionnaire. The
research initiated on April 2018 and will end on August 2018.
In relation to this research, the target market comprise of all the gender (male,
female). The age bracket ranges from 18 and above which are from middle and upper
social classes, have different monthly salary starting from below Rs. 50,000- Rs. 100000
and above. Their status also varied as they were from students to professionals with their
education qualification. Out of 220 questionnaires, 205 were useful.
Research Hypothesis:
H1: Green brand awareness has positive significant relationship with customers’ intention
to use green products.
H0: Green brand awareness doesn’t have significant relationship with customers’ intention
to use green products.
H1: Green brand trust has positive significant relationship with customers’ intention to use
green products.
H0: Green brand trust doesn’t have significant relationship with customers’ intention to use
green products.
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H1: Green brand image has positive significant relationship with customers’ intention to
use green products.
H0: Green brand image doesn’t have significant relationship with customers’ intention to
use green products.
H1: Green perceived value has positive significant relationship with customers’ intention
to use green products.
H0: Green perceived value doesn’t have significant relationship with customers’ intention
to use green products.
H1: Social Responsibility has positive significant relationship with customers’ intention to
use green products.
H0: Social Responsibility doesn’t have significant relationship with customers’ intention
to use green products.
Data Analysis:
To know the reliability and justification of the findings and to test statistically our
hypothesis, we use IBM SPSS Statistics. SPSS is used for observing authoring and
positioning, text analytics, data mining and association. This also helps in graph and table
generation of the data.
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Theoretical Framework:
Social Responsibility
Green Perceived
vvValueValue
Green Brand
Awareness
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CHAPTER 4
If this study will be used then it will benefit the society as this segment highlights the
data conclusion from questionnaire and stresses upon managerial decision.
Descriptive Statistic:
The total sample proportion was 220; from this only 203 questionnaires were
utilizable. From this sample males were 99 with a percentage of 48.8%; female 104 with a
percentage of 51.2%
The age portion depicted unlike distribution. 18-24 age brackets had high frequency of 109
with percentage of 53.7% while 45 and above age bracket was the least frequency which
consisted of 11 respondents and a percentage of 5.4%.
In education part, the highest portion was of graduated which consisted of 90 frequency
with percentage of 44.3% and the lowest was of Matric/ O-levels which had 25 frequency
with 12.3%.
Status being the fifth in demographics. Students had the largest chunk, consisting of 116
frequencies with 57.2% and the rest were almost equal. Self-Employed 31 frequencies with
15.3%, professionals were 22 responses and 10.8%, housewife being fourth had 18
responses and 8.9% and unemployed had 16 responses and 7.9%.
The income classification was like: below Rs50000 had 81 people with 39.9%, Rs.50000-
75000 had 45(22.2%). Rs 75000-100000 there were 37 responses with 22.2% percentage
and Rs 100000 and above had 40 people with 19.7%. (Referrer to Table 2 in appendix)
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Reliability Analysis
Cronbach’s Alpha:
Cronbach Alpha calculates scale reliability. It investigates the internal consistency
that how many the variables in a dataset are closely linked to each other.
The Cronbach’s Alpha number greater than .70 is determined to be suitable measure of
reliability (Vogt 2007). As the value of Cronbach Alpha comes out to be 0.916 with 25
numbers of items, it is said that the questionnaire used for data collection is effective.
(Refer to Table 4 in Appendix).
Individual Cronbach
The greatest number in individual Cronbach is of Social Responsibility which is
0.817 and the lowest value is of Green Awareness which is 0.610. (Refer to Table 5 in
Appendix).
MODEL SUMMARY:
Model summary represents 0.664 value of the R square. This results that 66.4% of the
variations in the consumer purchase action could be elaborated through the given Green
elements. (Refer to Table 7 in Appendix).
ANOVA Table:
ANOVA analysis was done to check the significant relation of dependent and independent
variables. (Refer to Table 8 in appendix)
ANOVA shows a significance value of 0.000 which means that consumer purchase
intention is significantly affected by the five constituents of green marketing. value of F
should be greater than 4 and in this case value of F is 77.8 that shows this model is
significant.
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Coefficient Table:
Coefficients Table is very helpful in telling which independent variable is the most difficult
in elaborating the variations in the dependent variable consumer buying intention.(Refer to
9 table in Appendix) It could be seen from the table that green image (B= 0.427; p-value:
0.000) is the powerful predictor followed by green perceived value (B= 0.263; p-value:
0.000) and social responsibility (B= 0.167; p-value: 0.000) and green brand trust (B=0.071;
p-value: 0.269).
There are four elements of Green marketing which have positive influence on the consumer
purchase intention as they have positive sign. But Green Awareness has negative sign.
All else constant, 1 unit increase in Green Brand Trust will result in 0.071 unit
increase in consumer purchase intention.
All else constant, 1 unit increase in Green Brand Image will result in 0.427 unit
increase in consumer purchase intention.
All else constant, 1 unit increase in Green Perceived Value will result in 0.263
unit increase in consumer purchase intention.
All else constant, 1 unit increase in Social Responsibility will result in 0.167 unit
increase in consumer purchase intention.
All else constant, 1 unit decrease in Green Brand Awareness will result in 0.077
unit decrease in consumer purchase intention.
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Hypothesis
P-value tells the significance. For this research, 95% of confidence interval was taken.
Therefore, hypothesis having less than 0.05 p-value would be accepted and vice versa. The
values are predicted below in the hypothesis testing section.
H1: Green brand awareness has negatively insignificant relationship with customer’s
intention to use green products.
We reject because table above shows higher p-value then benchmark of 0.05.The resulted
value is 0.237.
H2: Green brand trust has positively insignificant relationship with customer’s intention to
purchase green products.
We reject this also because the value in table above shows higher p-value then benchmark
of 0.05. The resulted value is 0.269.
H3: Green brand image has positive significant relationship with customer’s intention to
purchase green products.
This hypothesis is accepted as the table above shows significant p-value of 0.000 implying
that Green Brand trust has a perfectly significant impact on consumer buying intention.
H4: Green perceived value has positively significant relationship with customer’s intention
to purchase green products.
We accept this because the table above shows significant p-value of 0.000 implying that
Green Perceived Value has a perfectly significant impact on consumer buying intention.
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H5: Social Responsibility has positively significant relationship with customer’s intention
to purchase green product
We accept this because the table above shows significant p-value of 0.000 implying that
social responsibility has a significant impact on consumer buying intention.
Discussion
According to the research of this study all interpreted constructs have positive
linkage with customers’ behavior to use green products, except Green Brand Awareness
and Green Brand Trust.
The research of this study carries the findings of Chen and Chang, (2012), Mourad and
Ahmed, (2012), Cheah and Phau, (2011), Findings indicate that education about items,
especially green items, makes a positive position about the items and lowers the perceived
risk of green items.
The findings show that the relationship among green brand image and customers’ behavior
to use green items is significant positive relationship. The findings support the findings of
Schlosser et al., (2006), Lee et al., (2011), Schlosser et al., (2006) and Harris and Goode
(2010) that consumers purchase behavior significantly impacted by customers’ image and
it is a determinant of consumer intentions. This research indicates that customer mind
image is a basic determinant of customer behavior and if purchasers have had an image,
they would possess a greater level of purchase intentions. Hence, companies should
strategies for organization to create image about their items, to cheer customers to purchase
them.
However, the findings reveal that the linkage between green brand awareness, green brand
trust and customers’ behavior to use green items isn’t significant. The findings of this
research varies from prior findings (Hartmann 2005) which told significant positive
relationship between green brand trust and green brand awareness and customer’s behavior
to use green products. This might be because of the lack of awareness and knowledge
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between the consumer of that specific area, weather if they are aware to green knowledge
or not
The research explains that there is significant positive relationship between green perceived
value and consumer behavior to use green items. The research supports the findings of
(Cheah and Phau 2011).
Managerial Implications
This research depicts the significance of green marketing in creating customer purchase
intention. Following are the main uses of green marketing.
1. Marketers should create awareness for ecological issues in their commercials, this
will help in catering market share and also to increase sale with profits. This will
also help in improving brand’s perception in consumer minds.
2. Manufacturing Companies may use eco-friendly materials in making their products
and sell at affordable prices.
3. Governments should take steps to promote green awareness by making laws and
campaigns. This will reduce pollution from the environment.
Conclusion
With progress, industrialization, advancement of knowledge, diversification in
individual wants has enlarged. As outcome of this, our globe has faced with the destruction
and contamination of its reserves. As an effect of use of reserves, environmental destruction
and contamination has an effect on an individual life harmfully. Human have been in the
investigation for safeguarding their futures and maintaining their living in suitable
conditions. Customers, by not lasting insensitive to global problems such as surroundings
pollution and global warming, they have initiated to think whether the items they buy is
eco-friendly or not besides the price and value features of the items.
With ecological problems obtaining importance for consumer, companies have initiated to
alter their manufacturing of goods, so marketing techniques accordingly. They have
initiated to make eco-friendly items and have attempted to reach `Green Marketing` notion
to the customers.
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The purpose of this study was to know the advantages one can have from eco-friendly
products. As now due to global warming and pollution many people are moving towards
the ecological items. These items are beneficial for the environment and as well as for the
living beings. This research suggests companies to enhance their knowledge of
consumers about the ecofriendly products, improve green perceived value for the
customers to enhance their intention towards green items.
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BIBLIOGRAPHY
Adelaar, T., Bouwman, H., & Steinfield, C. (2004). Enhancing customer value
through click-and-mortar e-commerce: implications for geographical market
reach and customer type. Telematics and Informatics, 21(2), 167-182.
An, D., & Kim, S. (2008). Effects of national culture on the development of
consumer trust in online shopping.
(Kalafatis et al., 1999) (Ghoshal, 2011) (Jay, 1994)(Droba, 1931; Kaur Chopra,
2015; Moravcikova et al., 2017)(Prakash, 2002)
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Table 2. Demographics
Age
18-24 109 53.7
25-34 61 30
35-44 22 10.8
45 and above 11 5.4
Education
Matric/O Levels 25 12.3
Intermediate /A Levels 45 23.2
Graduate 90 44.3
Post Graduate 43 20.2
Status
Student 116 57.2
Self-Employed 31 15.3
Housewife 18 8.9
Unemployed 16 7.9
Professional 22 10.8
Income
Below Rs. 50,000 81 39.9
Rs. 50,000- Rs. 75,000 45 22.2
Rs. 75,000- Rs.
100,000 37 18.2
Rs. 100,000 and above 40 19.7
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Cronbach's No of
Alpha Items
0.916 25
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Model Summary
ANOVAa
Table 8 Coefficient
Coefficientsa
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