The Cause Effect Of Green Electronic Products Marketing Essay

The Cause Effect Of Green Electronic Products Marketing Essay Today there is growing concern for environmental friendly product because of the environmental issues faced by the world. Industries, factories, fume emitting tall chimneys, vehicles, household appliances; heaps of garbage and extreme pollution have altered the environmental conditions and disturbed our biome. Chloroforo carbons from refrigerators, air conditioners, deodorants, etc are responsible for depletion of ozone layer; Green house gases like carbon dioxide, methane, etc are contributing to the global warming. Government, companies, industries are taking initiative to reduce this pollution for our healthy living and also for our future generations. Owing to this fact companies are producing environmental friendly products which in turn help in reducing pollution and help in saving environment. The most important reason why one should use Eco-friendly products is because of the devastating effect of harmful gases, non-biodegradable plastics, dangerous gases which not only pollutes the environment but also causes respiratory problems, skin diseases, etc in human beings. Due to this polluted water and air there is a danger of complete extinction of various rare species of animals and birds. There are lots and lots of harmful effects of plastics, chemicals, non biodegradable items, which is the main reason to start using Eco friendly products as soon as possible. And not only that we should also start changing our lifestyle like usage of air coolers only when there is at most need of it, using jute bags or paper bags instead of plastics covers, taking up drinking waters in safe utensils rather than plastic bottles, making the pollution check regularly in our vehicles . Eco-friendly products have slowly and slowly entered every market considering cosmetics, medicines, electronics, paints, automobiles, manufacturing machines, smart city concept and more. Companies not only produce eco-friendly products but they also have eco-friendly packaging, eco-marks on packages. Measures have been taken by government, companies to produce eco-friendly products which in turn slowly and slowly reduce the impact of pollution on our environment. Eco-friendly has several meanings. There was a time when you were eco friendly if you just stopped using paper. But the definition of eco friendly products changed over the times. In more recent times, if you used predominantly natural products, or their derivatives, you were using eco friendly products. However, today, the definition has broadened more. Today, you are eco friendly not just by using eco friendly products, but also by taking care that the environment is not harmed in any way by the way you are using these pro ducts. Although the meaning has changed but the essence is same as before, one has to be friendly to the environment. The domain of eco-friendly product is very wide so I have restricted my research to the household electronic products which are used by consumer on daily basis. This include television, washing machine, microwave, CFLs, AC, refrigerators, etc. People deal with these products daily and hence they can easily tell about these products. What are the factors they prefer before buying these products? The project conceptualizes the recent market trend of green electronic products and consumer buying characteristics. To understand the meaning of eco-friendly electronic and what people think eco-friendly electronics are. Eco-friendly electronics are expensive, and then also companies are manufacturing them, what are the various factors why companies manufacture eco-friendly electronics. What makes todays customer to go for eco-friendly electronics, is it only to save the planet or some other reason. All such questions will be answered in this paper. Explain in 4-5 sentence the approach adopted by you and results/findings A distinct approach and questionnaire would be helpful for the evaluation of electronic consumer products, even though some usability questionnaires claim to be relevant to products other than computer software. Current usability questionnaires also seem to measure various usability dimensions, but the dimensions are not necessarily identical across questionnaires. Thus, the exploration of the available questionnaires provides a sound background to the development of the questionnaire items for this study. LITERATURE REVIEW While green marketing came into prominence in the late 1980s and early 1990s, it was first discussed much earlier. The American Marketing Association (AMA) held the first workshop on Ecological Marketing in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled Ecological Marketing (Henion and Kinnear 1976a). Since that time a number of other books on the topic have been published (Coddington 1993, and Ottman 1993). Green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. (Polonsky, 1994) World-wide evidence indicates people are concerned about the environment and are changing their behavior accordingly. As a result there is a growing market for sustainable and socially responsible products and services. (Environmental protection agency -2000) Green consumerism is often discussed as a form of pro-social consumer behavi or (Wiener and Doesher, 1991). It may be viewed as a specific type of socially conscious (Anderson, 1988) or socially responsible (Antil, 1984) consumer behavior that involves an environmentalist (Schlossberg, 1991) perspective and may thus be called environmentally concerned consumption (Henion, 1976). A classic definition (Henion, 1976) describes environmentally concerned consumers. Business organizations tend to concern about environments issues due to several reasons such as environmental pressure, governmental pressure, competitive pressure, cost or profit issues (Environmental protection agency -2000) Unfortunately, a majority of people believe that green marketing refers solely to the promotion or advertising of products with environmental characteristics. (Polonsky,1994) and terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. . (Polonsky, 1994) While these terms are green marketing claims, in general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services (Roberts and Bacon, 1997). Hopes for green products also have been hurt by the perception that such products are of lower quality or dont really deliver on their environmental promises. And yet the news isnt all bad, as the growing number of people willing to pay a premium for green products from organic foods to energy-efficient appliances attests. (DSouza et al. 2004)Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. [Polonsky 1994b, 2] Green marketing has not lived up to the hopes and dreams of many managers and activists. Although public opinion polls consistently show that consumers would prefer to choose a green product over one that is less friendly to the environment when all other things are equal, those other things are rarely equal in the minds of consumers. (Hackett, 2000) They must always keep in mind that consumers are unlikely to compromise on traditional product attributes, such as convenience, availability, price, quality and performance. Its even more important to realize, however, that there is no single green-marketing strategy that is right for every company. (Prothero,, and McDonagh, 1992) Despite the increasing eco-awareness in contemporary market economies, it is generally recognized that there are still considerable barriers to the diffusion of more ecologically oriented consumption styles. In lay discourse as well as in much of consumer research, these barriers are usually attributed to the motivational and practical complexity of green consumption (Hackett, 2000). Increased use of Green Marketing is depending on five possible reasons. (Polonsky 1994b) Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives [Keller 1987, Shearer 1990] Organizations believe they have a moral obligation to be more socially responsible [Davis 1992, Keller 1987,] Governmental bodies are forcing firms to become more responsible [Davis 1992]; Competitors environmental activities pressure firms to change their environmental marketing activities [Davis 1992] Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior [Keller, K.L. (1993] Moreover, environmentally responsible behavior usually involves difficult motivational conflicts, arising from the fundamental incompatibility of environmental protection-related collective goals and individual consumers personal or self-interested benefits and the resulting free-rider problem (Wiener and Doesher, 1991) Public policymakers will continue to develop more efficient ways to regulate waste and pollution, and scientists will continue to gather information about the environmental risks from various substances or practices. As they do, pricing structures will evolve that communicate even more accurate information to manufacturers and entrepreneurs about the true cost of commercial activities and the potential rewards from innovative solutions to environmental problems. This definition incorporates much of the traditional components of the marketing definition that is All activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants (Sc hlegelmilch et al,1996). There are usually severe external constraints to green consumerism, arising from the cultural, infrastructural, political and economic circumstances in the markets and society (McIntosh, A. 1991). Both individual and industrial are becoming more concerned and aware about the natural environment. In a 1992 study of 16 countries, more than 50% of consumers in each country, other than Singapore, indicated they were concerned about the environment (Ottman 1993). A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment. A further 80% of this sample indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons (EPA-NSW 1994). Owing to the conceptual and moral complexity of ecologically responsible consumer behavior and to the perplexity of ecological information, different consumers have different conceptions of ecologically oriented consumer behavior and, thus, myriad ways of acting out their primary motivation for being green consumers (Antil, 1984). These innovations arent being pursued simply to reduce package waste. (Prothero, 1990) Food manufacturers also want to improve food preservation to enhance the taste and freshness of their products. The cost of the foods would be lower; consumers could enjoy the convenience of pre-sliced ingredients, and waste peelings (Prothero, 1990). It can be assumed that firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non-environmentally responsible alternatives. There are numerous examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer needs. (Schwepker, and Cornwell, 1991) While governmental regulation is designed to give consumers the opportunity to make better decisions or to motivate them to be more environmentally responsible, there is difficulty in establishing policies that will address all environmental issues. (Schwepker, and Cornwell, 1991). Hence, environment-friendly consumption may be characterized as highly a complex form of consumer behavior, both intellectually and morally as well as in practice. RESEARCH OBJECTIVE The purpose of this research is to investigate the cause effect of green electronic products consumption in India. What are the factors responsible for the manufacturing of eco-friendly electronics? What makes companies to for green marketing? What are the factors that make customers buy such eco-friendly electronics. How aware consumers are about the green electronics? Also understand the meaning of eco-friendly electronics. Do these green electronics really are green? The OBJECTIVES of the research are: To explore analyze the driving force behind green marketing in Electronic products This objective states the reason why companies are going for green marketing although it is very expensive. Today in the market we can see many products which have the eco-friendly constituent, electronics, cosmetics, automobiles, manufacturing machines, paints, etc all have some eco-friendly component. What are the factors which have forced the companies to go for such strategy? This is studied through the secondary research from magazines, newspaper, brochures, pamphlets, articles, case studies. To study the consumer buying behavior towards green electronic products The consumer buying behavior for electronic product is studied and objective is to find the impact of environmental friendliness, consumer awareness for green electronics and what are the parameters which consumer prefer before buying the electronics. Also study the impact of eco-friendly electronics on consumer buying behavior. This is studied through the survey of consumers. Major Hypothesis (s): H0: Current trends indicate the inclination of customers towards environmental friendly electronic products H1: Current trends does not indicate the inclination of customers towards environmental friendly electronic products RESEARCH METHODLOGY The project work includes the collection of data about the electronics companies, their various products including eco-friendly, environmental policies, eco-labels used by companies. Also customers are survey through a questionnaire, to know the consumer buying behavior towards green electronics and also check their awareness towards eco-friendly products. Methodology Used TYPE OF RESEARCH: Exploratory Research, Descriptive Research I have collected Secondary Data from Internet, magazines, newspapers, articles, brochures, and company websites. GREEN MARKETING Green marketing is a concept which uses the environmental benefits of a product or service to promote companys sales. Todays consumers choose products that do not damage the environment over less environmentally friendly products, even if they cost more. With green marketing, advertisers focus has shifted on environmental benefits to sell products such as biodegradable diapers, energy-efficient light bulbs, and environmentally safe detergents. People spend billions of dollars worth to buy goods and services every year-many of them harm the environment in how they are harvested, made, or used. Environmentalists are supporting green marketing to encourage people to use environmental alternatives, and also offer incentives to manufacturers that develop more environmentally beneficial products. Without environmental labeling standards, consumers can not tell which products or services are truly beneficial. Consumers end up paying extra for misrepresented products so called green product or service. Then new term greenwashing came into existence which describes such cases where organizations misrepresented themselves as environmentally responsible. Environmentally preferable products as products and services which have lesser or reduced effect on human health and the environment around them when compared to other products and services that serve the same purpose. The label environmentally preferable or environmental friendly considers various scenarios like how raw materials are acquired, produced, manufactured, packaged, distributed, reused, operated, maintained, and this also include how the product or service is disposed. Today, special labels are there which help the public identify legitimate environmentally preferable products and services. Several environmental groups or committees are there to evaluate and certify products and services. According to the American Marketing Association, green marketing term is defined as the marketing of products that are presumed to be environmentally friendly and safe. As a result, green marketing incorporates a broad range of activities, which includes product modification, production process changes, changes in packaging, as well as modifying advertising. Defining green marketing is not a simple task as several meanings intersect and contradict each other; Environmental Marketing and Ecological Marketing can also be used and are synonyms for green marketing. Green marketing is considered as a golden goose. As per Mr. J. Polonsky, green marketing can be defined as, All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment. Environmental issues the product intends to address Consumer is the king in todays market and its important that he should understand environmental issues prevailing. Today the focus is on global warming and resource consumption. Issues related to pollution and contamination of air, water, and soil, are serious issues in developing economies. Waste disposal is also a major issue. Global warming prevention Helps reduce emissions of greenhouse gases such as carbon dioxide. This initiative includes the direct reduction of greenhouse gas emissions as well as energy saving and the reduction of deforestation. Air/water/soil pollution prevention Helps reduce emissions of substances contained in the air, water, and soil, such as photochemical oxidants (e.g., nitrogen oxides) and suspended particulate matter (e.g., sulfur oxides), which are substances restricted by environmental standards including air pollution control laws. This includes products that contribute to preventing ozone depletion and product oxidization. The clean-up of air/water/soil pollutants is also included. Chemical substance reduction Helps reduce and clean up eco-toxic chemical substances harmful to humans and the environment. These chemicals include substances specified by laws that identify the environmental impact created by emissions of specific chemical substances and that promote better management of such substances. This includes the reduction and purification of hazardous substances by recycling and reuse as well as products containing low levels of or no hazardous substances. Waste reduction Helps reduce the final disposal volumes by changing products, manufacturing processes, and packaging. This includes waste weight/volume reduction within the circulation system. Resource saving Helps reduce the consumption of resources, such as mineral, forest, and water resources. This includes resource saving by reuse and recycling as well as resource saving in products and the manufacturing process. Biodiversity The product contributes to the conservation of biological diversity, through a sustainable use of the components in the eco-system and promotes the fair and equitable sharing of benefits arising out of the utilization of genetic resources. How does the product address environmental issues? This explains how the products support environmental impact reduction. The category is subdivided to provide comprehensive support for various environmental measures widely exercised at present. This clarifies whether resource saving is achieved through enhanced product performance, longer product life, or improved product recyclability. Recyclability/reusability/refill-ability Raw materials can be recovered, processed, and recycled for reuse. Alternatively, they can be recycled efficiently by using designs that are easily disassembled. Reusable and refillable designs may be used in packaging and products. Long life With long-life designs, enhanced durability, and continued performance with repairs and maintenance, product life can be prolonged, leading to the reduction of raw materials and waste. Degradability/compost-ability Products, packaging, and their components are biodegradable and produce substances that are relatively homogeneous and stable. They can also be degraded to a degree under certain conditions within a predetermined period of time. High quality/performance Product quality and performance improvements enable environmental impact reduction, subsequently leading to material and waste reduction. Energy saving Efficient process designs and product weight reduction enable energy saving. This initiative includes the use of energy recovered instead of disposal. Environmental clean-up products The use of hazardous chemical substances in product manufacturing is reduced through the development of alternative materials, etc.; or the use of the product helps clean up hazardous substances. Using recycled materials Recyclable materials (pre- and postconsumer) are recovered and recycled materials are used in the manufacturing process, either entirely or in high volumes. Eco Labels Many products and services come with environmental labels that state product features to inform and appeal to consumers. They certify that items are environmentally friendly according to standards independently set by countries, regions, organizations, and providers. The International Organization for Standardization (ISO) classifies environmental labels into Type I, Type II, and Type III and environmental labels are then given based on compliance certification, producers self-declaration of commitment to environmental preservation, and the verification and disclosure of quantitative environmental impact data. Additional environmental labels are awarded under standards and criteria of other bodies. In addition to environmental labels, other initiatives are intended to raise consumers environmental awareness, including the creation of databases where self-assessed products may be registered. Type I (ISO14020, ISO14024): Seal of approval-compliance approval. Description: Type I labels are managed in accordance with the standards and principles of the ISO. This system ensures that the use of the label is accepted by a third party based on an independent, multifaceted standard. The standard covers the entire product life (resource extraction, manufacturing, distribution, use, disposal, recycling). The submitted products are assessed for approval and if successful are awarded the Type I label. Examples: Type II (ISO14021): Single attribute-producers self-declaration of commitment to the environment Description: Product providers independently incorporate environment-related improvements in their products. There is no intervention by any third party. Examples: Type III (ISO14025): Report card-verification and disclosure of quantitative environmental impact data Description: Type III labels are managed in accordance with ISO14025 (environmental declarations). They use the life cycle assessment (LCA) method to show environmental information on products quantitatively from resource extraction to manufacturing/assembly, distribution, use, and discarding/recycling. Only the reliability of disclosed data is verified and product evaluation is left to consumers. Examples: Other environmental labels There are other environmental labels apart from those of the ISO. Various environmental labels have been created in many areas including the consumer electronics industry and automotive industry. Driving forces for organizations to go for green marketing Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives. Organizations believe they have a moral obligation to be more socially responsible. Governmental bodies are forcing firms to become more responsible. Competitors environmental activities pressure firms to change their environmental marketing activities. Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior. OPPORTUNITIES All types of consumers, both individual and industrial are becoming more concerned and aware about the natural environment. In a 1992 study of 16 countries, more than 50% of consumers in each country, other than Singapore, indicated they were concerned about the environment. A 1994 study in Australia found that 84.6% of the sample believed all individuals had a responsibility to care for the environment. A further 80% of this sample indicated that they had modified their behavior, including their purchasing behavior, due to environmental reasons. As demands change, many firms see these changes as an opportunity to be exploited. It can be assumed that firms marketing goods with environmental characteristics will have a competitive advantage over firms marketing non-environmentally responsible alternatives. There are numerous examples of firms who have strived to become more environmentally responsible, in an attempt to better satisfy their consumer need. McDonalds replaced its clam sh ell packaging with waxed paper because of increased consumer concern relating to polystyrene production and Ozone depletion. Xerox introduced a high quality recycled photocopier paper in an attempt to satisfy the demands of firms for less environmentally harmful products. This is not to imply that all firms who have undertaken environmental marketing activities actually improve their behavior. In some cases firms have misled consumers in an attempt to gain market share. In other cases firms have jumped on the green bandwagon without considering the accuracy of their behavior, their claims, or the effectiveness of their products. This lack of consideration of the true greenness of activities may result in firms making false or misleading green marketing claims. SOCIAL RESPONSIBILITY GREEN MARKETING Many firms are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. This results in environmental issues being integrated into the firms corporate culture. Firms in this situation can take two perspectives: They can use the fact that they are environmentally responsible as a marketing tool; or They can become responsible without promoting this fact. There are examples of firms adopting both strategies. Organizations like the Panasonic heavily promote the fact that they are environmentally responsible. While this behavior is a competitive advantage, the firm was established specifically to offer consumers environmentally responsible alternatives to conventional electronic products. This philosophy is directly tied to the overall corporate culture, rather than simply being a competitive tool. An example of a firm that does not promote its environmental initiatives is Voltas. They have invested large sums of money in various recycling activities, as well as having modified their packaging to minimize its environmental impact. While being concerned about the environment, Voltas has not used this concern as a marketing tool. GOVERNMENTALPRESSURE As with all marketing related activities, governments want to protect consumers and society; this protection has significant green marketing implications. Governmental regulations relating to environmental marketing are designed to protect consumers in several ways, Reduce production of harmful goods or by-products; Modify consumer and industrys use and/or consumption of harmful goods; or Ensure that all types of consumers have the ability to evaluate the environmental composition of goods. Governments establish regulations designed to control the amount of hazardous wastes produced by firms. Many by-products of production are controlled through the issuing of various environmental licenses, thus modifying organizational behavior. In some cases governments try to induce final consumers to become more responsible. For example, some governments have introduced voluntary curb-side recycling programs, making it easier for consumers to act responsibly. In other cases governments tax individuals who act in an irresponsible fashion. COMPETITIVE PRESSURE Another major force in the environmental marketing area has been firms desire to maintain their competitive position. In many cases firms observe competitors promoting their environmental behaviors and attempt to emulate this behavior. In some instances this competitive pressure has caused an entire industry to modify and thus reduce its detrimental environmental behavior. For example, it could be argued that Xeroxs Revive 100% Recycled paper was introduced a few years ago in an attempt to address the introduction of recycled photocopier paper by other manufacturers. In another example when one tuna manufacture stopped using driftnets the others followed suit. COST OR PROFIT ISSUES Firms may also use green marketing in an attempt to address cost or profit related issues. Disposing of environmentally harmful by-products are becoming increasingly costly and in some cases difficult. Therefore firms that can reduce harmful wastes may incur substantial cost savings. When attempting to minimize waste, firms are often forced to re-examine their production processes. In these cases they often develop more effective production processes that not only reduce waste, but reduce the need for some raw materials. This serves as a double cost savings, since both waste and raw material are reduced. In other cases firms attempt to find end-of-pipe solutions, instead of minimizing waste. In these situations firms try to find markets or uses for their waste materials, where one firms waste becomes another firms input of production.