Framing Green Consumer Behaviour Research: Opportunities and Challenges

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Framing green consumer behaviour research: Opportunities and challenges
Article in Social Responsibility Journal · March 2016

DOI: 10.1108/SRJ-08-2014-0112
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Framing green consumer behaviour
research: opportunities and challenges
Sapna A. Narula and Anupriya Desore
Sapna A. Narula is Abstract

Associate Professor at Purpose – This paper aims to investigate existing research in green marketing with special reference
the Department of to consumer behaviour and identify challenges both in practice and research, offering valuable insights
Business Sustainability, for both the communities. While reviewing the existing literature in the paper, the authors define the
TERI University, New scope of green marketing as a standalone discipline and discuss all aspects of green consumer
Delhi, India. behaviour and present opportunities for researchers.
Anupriya Desore is a Design/methodology/approach – A thorough literature search in leading academic journals related to
Doctoral scholar based at the scope of this paper was conducted through leading databases. An analysis of literature review
the Department of Policy comprising 140 relevant articles has been carried out and presented in the paper.
Studies, TERI University, Findings – Green consumer behaviour research is one area which is very well researched but studies
are found to be generic in nature. the authors stress that research needs to be advanced in relation to
New Delhi, India.
addressing gaps between consumer perceptions and designing green products, identification of green
segments, positioning green products and also inclusion of stakeholders in green marketing process.
More insights into consumers willingness to pay for green attributes Vis -a Vis conventional attributes
need to be worked out.
Originality/value – In spite of plenty of reviews available in green marketing, there is no review which
solely covers the consumer behaviour aspects of green marketing. Consumer being the most important
stakeholder in green marketing domain deserves special attention from the researchers’ perspective.
The review is unique in providing all aspects of green consumer behaviour research.
Keywords Green marketing, Green consumer behaviour, Green consumer needs, Green products,
Green segmentation, Willingness to pay for green products
Paper type Literature review
1. Introduction
Marketing has been revolutionized during the past few decades through the introduction of
modern information and communication technologies, changing consumer behaviour and
lifestyles, global supply chains and increased regulatory attention. Competitive pressures
such as quick response and better customer service have led companies to adopt
strategies aimed at providing more attractive offers which sometimes may not be socially
and environmentally sustainable and create a misbalance in society and environment,
hindering the sustainability agenda. Marketers have also since long been blamed for
unreasonable expenses through their marketing strategies leading to increase in product
costs, skewed response towards provision of goods only for the richer section of the
society, excessive packaging leading to waste generation and increased logistics costs as
a response to fast and efficient supply chains, all of which mean more environmental
damage. However, it has also been seen that there are endless opportunities for the
marketers in the green domain, with the help of which they can address stakeholders’
concerns, thereby creating a unique position for themselves in continuously changing
Received 14 August 2014
Revised 14 August 2014
markets. In a society, where marketing has become a way of life, marketers do not only
Accepted 2 January 2015 have the responsibility to act sustainable but can also play an important role as an agent
DOI 10.1108/SRJ-08-2014-0112 VOL. 12 NO. 1 2016, pp. 1-22, © Emerald Group Publishing Limited, ISSN 1747-1117 SOCIAL RESPONSIBILITY JOURNAL PAGE 1
to bring change towards a sustainable society (Prothero and Fitchett, 2000; Charter et al.,
2006; Jones et al., 2008; Saxena and Khandelwal, 2010).
The environmental concerns have had a great influence on the marketing strategies of
leading firms across multiple industries over the globe, which include oil and gas,
automobile, fast-moving consumer goods, cosmetics and personal care, food and health,
aviation, utilities, etc., and the past decade has also seen a number of green products and
services, some of which have gained huge acceptance by consumers. The green
strategies are not only limited to delivering green products but are spread across all steps
of supply chain, right from procurement of environmentally safer raw materials till the safe
disposal of used products and packaging (Bowen, 2000; Jones et al., 2008; Narula and
Upadhyay, 2011;Seuring and Muller, 2008; Chan et al., 2012).Green marketing also acts as
a communication tool for the companies to project themselves as green in consumers’ mind
and also helps in building the relationship between the consumer and the company. It is
also very much evident through studies that environmental strategies are now an important
component of business strategy and hence more and more companies are integrating
these issues into their business concerns (Davis, 1991; Kangis, 1992; Grant, 2008;
Polonsky, 1994; Ottman, 1998; Peattie, 2001; Pujari et al., 2003).
The purpose of this paper is to review the literature in the green marketing and green
consumption domain, analyse the gaps and provide directions to the future of the green
consumer behaviour domain. This paper has been organized into six sections. We start our
paper by highlighting the importance of green marketing in light of sustainability and
evolution of green marketing research in Sections 1 and 2. The objectives behind writing
this paper have been provided in Section 3, followed by defining the scope and potential
of green marketing in Section 4, and this section also looks into various ways in which green
products and services have been defined. The purpose of igniting this debate is to
highlight the opportunities presented by firms to achieve their marketing objectives. Also,
how the green objectives are to be integrated into the traditional marketing. While we
explore answers to these questions, more questions ponder our mind, one of which is who
do we consider as a green consumer? How is he different from a conventional customer?
The discussion regarding the green consumer behaviour, including identifying their needs,
segmentation and willingness to pay, has been presented as subsections under Section 4.
The managerial implications in the green marketing field have been presented in Section 5.
Finally, Section 6 concludes the paper by providing future research opportunities in the
field.
2. The evolution of green marketing research

Marketing practitioners started giving a lot of attention to sustainability agenda especially
in the 90s, and this was also the time when researchers also got interested in exploring
green marketing issues. Today, a wide body of multi-authored, multi-country and
inter-disciplinary research related to green marketing is available, with studies ranging from
consumer behaviour, need satisfaction, product development, recycling, green packaging
(Lewis, 2005; Zhang and Zhao, 2012; Lai et al., 2013), logistics and promotion (Laroche
et al., 2001; Boztepe, 2012) to remanufactured products (Davis, 1991; Kangis, 1992; Fuller,
1999; Menon and Menon, 1997; Ottman, 1998; Peattie and Crane, 2005; Grant, 2008). And
this literature spreads across many countries, industries, firms and products and extends
into a variety of methodologies and tools (Leonidou and Leonidou, 2011).
A number of reviews in the area of green marketing are also available (Chamorro et al.,
2009; Connelly et al., 2011; Cronin et al., 2011; Chabowski et al., 2011; Hult, 2011), and
each one is unique in its own respect. For example, the work by Chamorro et al. (2009)
analyses the already existing body of literature in the field and suggests that green
consumer and green communication accounted for largest number of studies in the area,
whereas the recycling behaviour is the least published area. The authors suggest that
almost 75 per cent of the articles are empirical in nature, with factor analysis as one of the
PAGE 2 SOCIAL RESPONSIBILITY JOURNAL VOL. 12 NO. 1 2016

frequently used tool. A study by Connelly et al. (2011) through the application of nine
prominent organizational theories, such as social network theory, resource-based view,
resource dependence theory, population ecology and institutional theory, etc., presented
a base for future sustainability research in marketing that can be applied to understand and
predict an organization’s sustainability efforts.
Cronin et al. (2011) examined literature in the areas of marketing, management and
operations and have presented opportunities for research in the form of investigative
questions in the areas of green performance, innovation, green alliances, green processes
and consumers. Another study in the same field by Chabowski et al. (2011) examines the
sustainability research in marketing and identifies citizenship behaviour, stakeholder
theory, corporate performance and the triple bottom line as integral areas.
Other theoretical papers have made an effort to present new theories and frameworks in the
area of green marketing. For example, Sheth et al. (2011) proposed a framework to enable
marketers to address customer-centric challenges to sustainability. The authors introduced
the concept of mindful consumption based on the consumer mindset of caring for self,
community and nature and also illustrated the business opportunities associated with the
concept. Leonidou et al. (2013) developed a theoretical model to explain how green
marketing programmes can deliver product-market and financial performance benefits in
influencing firm performance and also studied the role of slack resources and top
management risk aversion in deployment of green marketing programmes which were
previously neglected. Crittenden et al. (2011) present a framework based on three
constructs, namely, DNA, stakeholder involvement and performance management.
The authors make use of resource advantage theory to explain how sustainability can be
aligned into a marketing strategy to gain competitive advantage.
The existing reviews in green marketing domain have addressed one or more of five key
issues revolving around drivers of sustainability, management of sustainability practices
and strategies, performance aspects of sustainability and marketing and consumer
aspects. These reviews have provided a very useful insight into green marketing research
by examining the literature in the areas of strategy, operations, management and marketing
and have tried to establish its links with strategies, operations and management.
In spite of the availability of a wide body of literature, knowledge about green marketing
practices remains limited for both managers and policymakers. (Chabowski et al., 2011;
Cronin et al., 2011). Perhaps the reason for the same is that green marketing or related
literature is spread in operations, business, management, marketing and supply chain and
not much has been done to see it as a standalone discipline, except the reviews provided
by Leonidou and Leonidou (2011), Cronin et al. (2011) and Sheth et al. (2010). Much of the
green marketing literature revolves around the consumer, as he is the most important
stakeholder, though efforts have been made to involve other stakeholders in the green
marketing supply chain (Crittenden et al., 2011; Cronin et al., 2011). We have also observed
that there is no review in the field which is dedicated to consumer behaviour aspects of
green marketing, apart from plenty of empirical research being available in this particular
domain. Though we do not refute the importance of other stakeholders in green marketing,
the purpose of the paper has been restricted to consumer behaviour only. Understanding
the consumer is important, as this is the area which helps firms create better value
proposition and hence a competitive advantage at the marketplace.
3. Objectives and methodology

This paper is an attempt to consolidate the previous work on green marketing while
reviewing the existing literature; the paper aims to address the following questions
pertaining to the subject:
Q1. What is the scope and potential of green marketing as a discipline and how it is
important from a marketer’s perspective? What are the major opportunities
VOL. 12 NO. 1 2016 SOCIAL RESPONSIBILITY JOURNAL PAGE 3

associated with green marketing? In other words, how can marketing activities
contribute towards reducing environmental footprint and yet make profits?
Q2. What are the major issues to be addressed in green consumer behaviour research
related to green needs and segmentation, green purchase behaviour and
willingness to pay for these products? How can green products be designed to
enhance consumers’ utility?
Q3. What are the major research challenges in green marketing and consumer
behaviour research? What are the other unexplored areas in green marketing
research?
With the help of existing body of literature available in the domain of green marketing, we
try to find answers to these questions and present our framework on opportunities and
challenges in this domain. We further extend our inquiry into framing research questions
which are yet unexplored in the domain of green marketing.
A thorough literature search in leading academic journals related to the above scope of this
paper was conducted through leading databases such as Science Direct, Emerald and
Google Scholar. We selected a group of scientific journals in the above-mentioned
databases which were likely to include work in the field of green marketing under product
and consumer domain. The main keywords used for our bibliographic search were green
marketing, green consumer, green product, green strategy, green buying behaviour,
sustainable marketing, environmental marketing, environmental strategy, green marketing
strategy, green segmentation, customer satisfaction, ecolabels, green pricing, etc. A total
of 172 papers were collected through this search and these were then passed through a
rigorous analysis by the relevant experts in the area. After a careful analysis by the authors
and experts, it was concluded that around 140 articles were of relevant use for our study.
These 140 articles belonged to a total of 69 journals belonging to marketing (24),
management (30) and other disciplines (15). Out of the total 24 marketing journals, four
journals belonged specifically to consumer behaviour and three to product management.
The category others included journals such as Environment and Behavior, Procedia
Engineering, Cross-Cultural Research and Ecological Economics, to mention a few.
4. Defining the scope and potential of green marketing

We examined an array of definitions available in the literature and found that these
definitions ranged from the period of 1976 to 2013. Most of these definitions were in the
context of developed countries such as Australia, Canada, Europe and the USA, except
one from India.
In our pursuit towards analysing these definitions, we came across various keywords/
phrases used to define green marketing by different authors which have been found to be
belonging to six dimensions of sustainability, .i.e. environment, economy, society, market/
product/business, customer and stakeholder. The paper by Dahlsrud (2008) on analysis of
CSR definitions formed the basis of our analysis. Table I talks about the criteria of
classification of phrases, whereas Table II describes the characteristics and important
aspects of definitions.
While all these definitions address the issues related to consumer needs, satisfaction and
environmental issues, they fail to include the words stakeholders’ needs and expectations.
It can be seen that authors in the 90s were initially inclined towards inculcation of overall
marketing concept with emphasis on ecological aspects such as energy conservation,
waste minimization, natural environment, resources reuse, recycle, etc., and moved
towards focussing on customer needs including 4Ps of marketing, namely, product, price
promotion and distribution (Kangis, 1992; Pride and Ferrell, 1993; Harrison, 1993;
Polonsky, 1994; Peattie, 1995; Reinhardt, 1998; Fuller, 1999). After the year 2000, various
strategic changes in firms and industries gained momentum in the domain of green

Table I Green marketing definition: phrases used for different dimensions
Example phrases in definitions coded by relevant
Sr. no. Dimension dimension
1 Environment “Less toxic”

“Made of recyclable materials”
“Preservation and conservation of natural environment”
2 Economy “Products that impose smaller environmental cost”
“Increase in business operations”
3 Society “Reduces negative environmental and social impact”
“Satisfying customer needs and society in a profitable
and sustainable way”
4 Business/Market/Product “Incorporates product changes”
“Modification in production process”
“Products that provide greater environmental benefit”
“Marketing of product based on environmental
performance”
“Integration of environmental considerations into all
aspects of marketing”
“Selling products on an ethical platform”
5 Stakeholder “Strategic management process that identifies,
anticipates, satisfies and fulfils stakeholder needs”
6 Consumer “Influence purchase decisions of consumers”
“Environmentally sound goods and services to satisfy
consumers”
marketing covering the areas on new product development, product modifications and
changes in the production process.
It was also found that only Charter (1992) laid importance towards anticipation and
satisfaction of stakeholders’ needs, which has been found neglected in other definitions. In
our view, green marketing is not to be implemented only by businesses, but it is a collective
activity where all the intermediaries have opportunities to contribute towards sustainability.
It is mainly about the activities which start after the manufacturing, i.e. related to
consumption, but here, it is noteworthy that one cannot ignore the unsustainable activities
happening during production or even at the design and development stage or at the
procurement of raw materials and hence would have implications on green marketing;
however, all the activities involving both the production and consumption end would be
widely studied under the green supply chain domain. For example, a product which has
absorbed a lot of energy during production can never be regarded as a green one,
irrespective of environment-friendly distribution and promotion. Similarly, green product
development starts much before the marketing stage and both the raw materials as well as
processes have implications on its marketing, and consumers’ choice of green products
also influences the way these products are manufactured. Methodologies such as life cycle
analysis aid in finding the total environmental footprint of the product across its life cycle
(Calderon et al., 2010). So, it is clear that the two ends can never be isolated; however, for
purpose of this paper; we limit our discussion to the green consumer and the consumer
behaviour aspects such as consumer needs, segmentation and willingness to pay. Though
the issues related to green packaging, green logistics, green communication and other
services are significantly important in the context of green marketing, we set our scope to
the core of green marketing including consumer behaviour dimensions (Figure 1).
A firm has many choices for going green, as it can adopt one or more activities mentioned
in the pyramid. Some companies as mentioned will only be doing a small modification in the
existing product, whereas the others may adopt very rigorous environment-friendly
processes related to energy, waste and air pollution management and hence are able to
save costs. Others may go beyond launching products and adopting various voluntary as
well as non-voluntary standards and ecolabels. The company may adopt one or many

Table II A summary of keywords appearing in various marketing definitions (1976-2013)
Sr. no. Author Definition Aspect/Keywords Dimension
1 American Marketing According to American Marketing Product modification, packaging Business dimension
Association (AMA) Association, green marketing is changes, modified advertising Market dimension
(2013) the marketing of products that are Product dimension
presumed to be environmentally
safe
It incorporates a broad range of
activities, including product
modification, changes to the
production process, packaging
changes as well as modified
advertising. It is the development
and marketing of products
designed to minimize negative
effects on the physical
environment or to improve its
quality
2 Henion (1972) Defines green marketing as the Energy depletion, resource Environmental dimension
study of the positive and negative depletion
aspects of marketing activities on
pollution, energy depletion and
non-energy resource depletion
3 Charter (1992) Green marketing is a holistic and Holistic marketing Market dimension
responsible strategic Strategic process, stakeholders Stakeholder dimension
management process that needs, natural environment,
identifies, anticipates, satisfies human environment
and fulfils stakeholder needs, for
a reasonable reward, that does
not adversely affect human or
natural environmental well-being
4 Kangis (1992) Green marketing must be more Green marketing/product Market dimension
than either a green way of Product dimension
marketing, or the marketing of so-
called green products. Green has
to refer both to the method and to
the product
5 Pride and Ferrell Green marketing, also Green marketing, sustainable Business dimension
(1993) alternatively known as marketing, 4 Ps of marketing Market dimension
environmental marketing and Product dimension
sustainable marketing, refers to
an organization’s efforts at
designing, promoting, pricing and
distributing products that will not
harm the environment
6 Harrison (1993) Green marketing is a marketing Product positioning, product Customer dimension
strategy to influence the purchase benefits, purchase decisions,
decisions of consumers by consumers
positioning green product benefits
in minds of consumers
7 Herbig and Butler Green marketing refers to Products and marketing/less Product dimension
(1993) products and packages that have toxic, reusable and recyclable Environment dimension
one or more of the following materials
characteristics: they are less
toxic, are more durable, contain
reusable materials and/or are
made of recyclable materials
8 Coddington (1993) Green marketing is the business Conservation of natural Consumer dimension
practice that considers environment/consumer concerns Environmental dimension
consumers’ concerns with regards
to preservation and conservation
of the natural environment
(continued)

Table II
9 Elkington (1994) Defines green consumer as one Green consumer/environment, Environmental dimension
who avoids products that are energy, waste, cruelty to animals Consumer dimension
likely to endanger the health of
the consumer or others; cause
significant damage to the
environment during manufacture,
use or disposal; consume a
disproportionate amount of
energy; cause unnecessary
waste; use materials derived from
threatened species or
environments; involve
unnecessary use of, or cruelty to,
animals; adversely affect other
countries
10 Polonsky (1994) All activities designed to generate Needs, wants, satisfaction of Environmental dimension
and facilitate any exchanges needs, minimum detrimental Consumer dimension
intended to satisfy human needs impact on environment natural
or wants, such that the environment
satisfaction of these needs and
wants occurs, with minimal
detrimental impact on the natural
environment
11 Peattie (1995) Green marketing is the holistic Profitability and sustainability Market dimension
management process responsible Consumer dimension
for identifying, anticipating and Societal dimension
satisfying the requirements of
customers and society, in a
profitable and sustainable way
12 Peattie (1995) Defines a product as “green” Product use and Environmental dimension
when its environmental and disposal/environmental/societal Product dimension
societal performance, in performance, competitive
production, use and disposal, is products
significantly improved and
improving in comparison to
conventional or competitive
products offering
13 Reinhardt (1998) Author stated that environmental Product differentiation, Business dimension
product differentiation takes place environmental benefit, Product dimension
when: “a business creates environmental cost
products that provide greater
environmental benefits, or that
impose smaller environmental
costs, than similar products”
14 Fuller (1999) Green marketing is the process of Holistic marketing concept/4Ps, Consumer dimension
planning, implementing and customer needs, organizational Market dimension
controlling the development, goals, process compatible with Environment dimension
pricing, promotion and distribution ecosystem
of products in a manner that
satisfies the following three
categories:
customer needs are met;
organizational goals are attained;
and process is compatible with
ecosystems
(continued)

Table II
15 Charter and Green marketing is the marketing Promotion of products based on Environmental dimension
Polonsky (1999) or promotion of a product based environmental performance Product dimension
on its environmental performance
or an improvement thereof
16 Peattie (2001) Green marketing is used to depict Environmental and social impact, Environmental dimension
marketing activities with the aim to product logistics and promotion Society dimension
reduce the negative Product dimension
environmental and social impact
that products might cause and
how to promote those products to
reach its consumers in an
effective way
17 Polonsky and Green marketing has been Consumer needs, impact on Consumer dimension
Rosenberger (2001) described as: a complex, holistic, natural environment Environmental dimension
integrated approach to meet
consumer needs while minimizing
the negative impact on the natural
environment
18 Prakash (2002) Green marketing should be Consumer/Strategy, information Market dimension
viewed as a strategy concerning disclosure, industry, firm, Product dimension
information disclosure to product Stakeholder dimension
consumers taking place at three
levels: the industry level, the firm
level and the product level
19 Peattie and Charter Green marketing is the holistic Green management/consumer Consumer dimension
(2003) management process responsible needs, sustainable society Societal dimension
for identifying, anticipating and
satisfying customer needs and
society in a profitable and
sustainable perspective
20 Jain and Kaur Green marketing comprises all Positive impact on environment Environmental dimension
(2004) those marketing activities which Societal dimension
the firms undertake to create a
positive impact or lessen the
negative impact of their products
on the environment
21 Soonthonsmai Green marketing is defined as Environmentally conscious firms, Product dimension
(2007) activities performed by consumer satisfaction, Environment dimension
environmentally conscious firms to environmentally sound goods Business dimension
deliver the environmentally sound and services
goods/services to provide
satisfaction to consumers
22 Dahlstrom (2011) Green marketing is the study of all 4Ps of marketing/ecological Market dimension
efforts to consume, produce, concerns Business dimension
distribute, promote, package and Environment dimension
reclaim products in a manner that
is sensitive or responsive to
ecological concerns
23 Ottman (2011) Green marketing from an New product development, Product dimension
organizational standpoint as an logistics, marketing Market dimension
integration of environmental communication, integration of Environmental dimension
considerations into all aspects of environmental dimension
marketing – whether it is new
product development, logistics or
marketing communications
(continued)

Table II
24 Leonidou et al. Defines green marketing Strategic goals, financial goals, Business dimension
(2013) programmes as those that are minimize impact on natural Environmental dimension
designed to accomplish the firm’s environment
strategic and financial goals in
ways that minimize their negative
(or enhance their positive) impact
on the natural environment
25 The United Nations The United Nations Environment Covers environmental and social Society dimension
Environment Program defines green marketing aspect/environmental properties, Environmental dimension
Program (UNEP) as “A marketing which social qualities Market dimension
(2005) encompasses all communication Consumer dimension
operations undertaken to promote
a product on the basis of its
environmental properties or of its
social qualities. It is about selling
products on an ethical platform.”
The distinctive features of green
marketing are its commercial
dimension coupled with the
reference to the values of
consumers who want to act in an
environmentally conscious and
socially responsible manner with
the purchases they make”
stages in the pyramid and more the number of stages it occupies, the greater are the green
character of its products and services. A few companies may have an entirely green
business model, which means that they sell only environment-friendly products in an
environment-friendly manner. Actually, for a firm, the opportunities range from design and
development stage till the consumption and recycling stage. Green marketing is not merely
about going for environment-friendly production and processes; rather, it also extends to a
stage where companies promote the responsible consumption and disposal of their
products.
One of the primitive areas of green marketing research looks into what motivates a firm to
go green (Berry and Rondinelli, 1998; Hoffman and Ventresca, 2002; Pujari et al., 2003;
Varadarajan and Menon, 1988; Camino, 2007). Both external and internal drivers have
been explored in research to showcase the firms’ motivations to go green. External drivers
in the form of regulatory pressure (Darnall and Edward, 2006), market demand (Christmann
and Taylor, 2001; Zhu and Sarkis, 2006; Young et al., 2010) or exports and competitive
pressure (Darnall et al., 2008; Sarkis et al., 2010) have been well-documented in literature.
Internal drivers such as management support and commitment, training to employees and
financial and human resources also motivate firms to go green (Min and Galle, 2001;
Sharma et al., 1999; Walker et al., 2008; Lee, 2008; Sarkis et al., 2010). Other internal
factors such as slack resources and top management risk aversion have also been studied
well lately (Menguc et al., 2010). From the marketing perspective, however, the most
important stakeholder is consumer and it really makes sense that most of green marketing
literature has been found to be revolving around him only (Greenley and Foxall, 1997;
Fitchett, 2004; Young et al., 2010; Michaud and Llerena, 2011).
4.1 The green consumer and needs

Consumer is the focal point of green marketing as the acceptance of green products
depend more on their choice. He is the one who desires to reduce his/her environmental
footprint by means of sustainable consumption (Laroche et al., 2001)and the marketers’
efforts are concentrated towards fulfilling his needs (Polonsky, 1994; Prakash, 2002).

Figure 1 The pyramid of green marketing
Green producrt development

• New products are developed
• New features are introduced
• Green design and Research and development are promoted and expenditure is done
• Only regulatoryu compliance is ensured
Green manufacturing
• Energy, Waste and water eﬃciency are ensured
• Environment friendly raw marterials and packaging are used
• New environmental friendly processes are prac seed
• Workers and employees are sensi sed, trained and rewarded for environment friendly
performance
Green logis cs and Distribu on

• Energy eﬃcient transporta on ( environment-friendly fuels, drivers training)
• Apprtopriate mode of transporta ons
• Reduced packging and load sharing
• Op mised truck loads
• E-marke ng ( appropriate steps are chosen )
• Number of internediaries are reduced
Green Adver sement and Promo on

• More emphasis on online promo on
• Rewarding customers' environment-friendly behaviour
• Reduced overall adver sement expenditure
Reverse Logis cs
• Manufacturee takes the responsibilitybof used products
• Comsumer Educa on and Awareness
• Promo ng safe and judicious use of products
• Technological advancement for disposal
Studies reveal that consumers are now more aware of environment and are concerned
about whether the products they use cause any environmental harm or not (Johri and
Sahasakmontri, 1998; Straughan and Roberts, 1999). This awareness is high in the
developed countries, but is also witnessing an uptrend even amongst the emerging
economies like China, India, Brazil, etc. The fact that the consumers’ needs are changing
towards more sustainable products and services adds on to the importance of green
marketing and a response towards these needs leads to green product and process
innovation (Ottman, 2006).
Marketing practitioners are attempting to identify and understand green consumer needs
and their efforts are directed towards developing market offers that match these needs
(Polonsky, 1994; Rex and Baumann, 2007). While we tend to explore consumer-related
issues, several questions start emerging, i.e. what are the needs of green consumers? How
do the green needs interfere with the basic need sets? Four universal green consumer

needs, namely, the need for information, the need for control, the need to make a difference
and the need to maintain current lifestyles have been identified by researchers (Peattie,
2001; Ottman, 1993) so as to develop market offerings that meet these needs. We attempt
to integrate these needs into the Maslow’s hierarchy of needs theory, which suggests that
people use green products out of their safety-related needs, i.e. they want a healthy and
safe environment and are concerned about the well-being of their families and relatives and
at a larger level about the well-being of people and other life forms on the planet. At the next
level, people can also buy green products to fulfil their needs related to love and
belongingness. This love and belongingness could be for people or for environment and
also for Mother Earth.
Consumers also buy green products to raise their self-esteem, as they would like
themselves to be belonging to particular reference groups, e.g. environmentalists, and this
is how they would like to distinguish themselves from their peers. Green products and
services are also bought to fulfil their self-actualization needs, i.e. sustainable consumption
is practiced as a part of consumers’ moral obligation to protect their society. Identification
of green segments is a challenging area for both researchers and practitioners. Once
identified, how would the needs of these green segments be addressed? There are
particular green sub-segments existing in a segment which would respond well to the
marketers’ needs (Figure 2).
4.2 Identification of green segments

Consumer behaviour studies in green marketing are mainly concentrated on consumer
profiling, identification of green consumer segments, factors impacting green purchase,
decision-making process and willingness to pay decisions (Peattie, 2001). To take
advantage of emerging green segments based on varied needs, it is important to
understand who green consumers are and the factors influencing their purchase decisions
and behaviour. Many surveys aimed at identifying demographic and psychographic
characteristics of a green consumer (Hirschman, 1980; Roberts, 1996; Straughan and
Roberts, 1999; Laroche et al., 2001; Akehurst et al., 2012). A study claims that green
consumers are most likely to be well-educated, young adult men or women who have more
money to spend and expect green products to function as effectively as non-green
products (Laroche et al., 2001). For a product to be qualified as a purchase for these
customers, it should be able to fulfil the basic need and at the same time should deliver on
an environmental front. Researchers have found that though green consumers are keen to
purchase environment-friendly products, they will hardly compromise on quality, cost and
Figure 2 The ladder of green needs

convenience (Ginsberg and Bloom, 2004; Okada and Mais, 2010). They are more likely to
respond to core product attributes providing benefits to them (Straughan and Roberts,
1999; Essoussi and Linton, 2010; Gupta and Ogden, 2009; Luzio and Lemke, 2013).
Experiences of environment-related problems have also been proven to be decisive to their
buying behaviour (Chen and Chang, 2012). Whereas, researchers such as Michaud and
Llerena (2011) argue that in the absence of environmental information, consumers are not
willing to pay more for green products.
4.3 Green buying behaviour

Consumer’s psychology and buying behaviour plays a crucial role in determining the
success of green products. Many factors play an important role in decision-making
process by customers, but one of the major factors is customers’ awareness about green
products. Studies on the behavioural pattern of consumers reveal that green consumer is
a confused consumer (Carlson et al., 1993; Davis, 1993; Crane, 2000). This confusion
arises out of low awareness and knowledge about green products and also the lack of
efforts on the manufacturer’s part to provide right kind of information. In developing
countries, the low purchase of these products is also attributed to the lack of certification
standards and ecolabels (D’Souza et al., 2006). Hence, labelling and advertisements play
an important role in removing the knowledge barrier (Hartmann et al., 2005; Rahbar and
Wahid, 2011).
Consumers who have more knowledge about environmental issues when making a
purchase are likely to spend more on green products (Hirschman, 1980; Laroche et al.,
2001; Michaud and Llerena, 2011). A study on Indian consumers revealed that the
consumers were aware of the environment-related problems and felt that proper
communication of green ideas will help people become more concerned about
environment and hence make purchase decisions backed by this knowledge (Jain and
Kaur, 2004). Consumption value also plays a role to influence consumer choice behaviour
regarding green products, as consumers having high environmental concerns show
greater support for green products. Main factors influencing a customer choice regarding
green products include psychological benefits, desire for knowledge and novelty-seeking,
whereas price and quality of green products are not the key players (Hirschman, 1998; Lin
and Huang, 2012; Luzio and Lemke, 2013). The characteristics of green products, for
example recycling potential, low pollution and economy of resources may also influence
consumers to buy environment-friendly products (Sheth et al., 1991; Bei and Simpson,
1995; Essoussi and Linton, 2010). Promotion of subsidies by government and green groups
encourages people to go green, as these help to overcome cost barriers.
Previous studies by Roberts (1995, 1996) and Straughan and Roberts (1999) show that
environment-friendly behaviour may also be affected by peer opinion or personal factors,
e.g. consumers who belong to special interest groups tend to purchase green products out
of compulsion. In this case, if a consumer’s green ideology is in conformance with the
group ideology, it exerts more influence on the green purchase. Another study by Triandis
(1993) and McCarty and Shrum (1994) focussed on consumer traits such as individualism
(represents how much a person focuses on his/her independent self) and collectivism
(implies cooperation, helpfulness and consideration of the goals of the group relative to the
individual) with green consumer behaviour and suggests that collectivist people tend to be
friendlier to the environment, while individualists tend to be more unfriendly. A study in
Singapore suggests that green consumers when compared to non-green consumers have
more favourable attitude towards the environment; green consumers are more socially
integrated, open-minded and cosmopolitan (Shamdasani et al., 1993).The purchase of
green products also varies on the basis of personal factors (Kalafatis et al., 1999). Although
consumers purchasing recycled products also consider price and quality, an increasing
number of people are willing to pay extra for green products, provided they give the same
satisfaction as compared to conventional products (Bei and Simpson, 1995). The

consumers hardly compromise on traditional product attributes such as convenience,
availability, price, quality and performance (Berger and Corbin, 1992; Ginsberg and Bloom,
2004). Here, it is noteworthy that consumers would be very happy to get the used products
recycled and disposed off, but only if it is convenient or the process is assisted by the
company or Government. We can sum this up by saying that the green consumer looks for
green attributes in products which they think can reduce environmental benefits, but there
should not be any deficiency on part of the actual quality and performance of the product.
Besides this, a consumer always prefers his convenience in purchase, use and disposal of
products as compared to green characteristics.
4.4 Willingness to pay for green

Besides availability and convenience to use, price is the biggest barrier in purchase of
green products. Green products are perceived to be costlier and consumers are unwilling
to pay higher price only for green performance. Many studies have focussed their work on
how much consumers are willing to pay for these products (Suchard and Polonsky, 1991;
Elkington, 1994; Porter and Linde, 1995; Oyewole, 2001; Gupta and Ogden, 2009). In many
cases, cost acts as a purchase barrier, as a consumer is not willing to spend more money
in purchasing green products (Berger and Corbin, 1992; Sririam and Forman, 1993;
Prakash, 2002; Ginsberg and Bloom, 2004). These studies, however, can never be
generalized in green marketing context, as it varies from industry to industry and also from
product to product. What are the circumstances under which a consumer is ready to pay
more and whether the factors such as brand, trust, group influence, innovative product and
convenience to use have any role to play in attracting better price is not known.
Government subsidies also play an important role in helping consumers make decisions
regarding purchase, as they remove price-related barriers (Lin and Huang, 2012).
Various factors influencing consumers’ willingness to pay have been summarized in
Table III.
5. Conclusions and managerial implications

Different opportunities for firms with respect to green marketing have been presented in the
paper. However, green marketing still has a long road to travel in both research and practice.
The paper highlighted the scope and definitions of green marketing besides discussing
consumer behaviour, product innovation and the challenges associated therein. It has been
inferred that there are many motivations for firms to adopt green marketing, including customer
expectations (Oyewole, 2001; Polonsky, 1994; Peattie and Crane, 2005), governmental
pressures (Polonsky, 1994; Prakash, 2002), competitive pressure (Saxena and Khandelwal,
2012) and social responsibility (Davis, 1992).
Though opportunities in the area are plenty, still there are many challenges before researchers
and managers. The first and foremost challenge is how do we define green? What is a green
product? As the term green has a different meaning under different contexts. It varies across
different customer segments, industries and even within different organizations in the same
industry. Regulators as well as other stakeholders may view it differently and the definitions may
vary from time to time. The other challenge lies in developing standards for these products.
Standards, both regulatory and voluntary, may aid the consumers in making their decision
related to purchase and use of green products. During past few years, there have been
continuous efforts in launching new environmental standards; still, what we need is a more
industry-specific and consumer-oriented approach. As manufacturers need to build trust of
consumers in these products, efforts need to be concentrated in standardizing processes in
different industries, building voluntary and public standards and collaborative efforts among
competitors in terms of joint research development and advocacy. One of the other challenges
in green marketing is that though a few segments are determined to buy green products and
are willing to pay more prices for this, a large segment which is conscious about the
environment still hesitates to take decisions regarding the green products. There are many

Table III Factors influencing consumers’ willingness to pay
Independent variable Dependent variable
(IV) (DV) Authors Description
Level of education Tendency to buy green Henion (1972), Murphy Awareness about environmental issues/
products et al. (1978), Hirschman green products impacts the purchase
(1980), Roberts (1995, of green products
1996), Straughan and
Roberts (1999), Laroche
et al. (2001), Rowlands
et al. (2003), doPaço and
Raposo (2010), Akehurst
(2012)
Income Consumer buying Roberts (1995, 1996), Income of consumer has direct impact
behaviour Straughan and Roberts on purchase
(1999), Laroche et al.
(2001), Rowlands et al.
(2003), doPaço and
Raposo (2010), Akehurst
(2012)
Knowledge about green Consumer buying Schlegelmilch et al. Knowledge about green products within
products and uses behaviour (1996), Bang et al. (2000), specific industry or product-wise
Peattie (2001),
Diamantopoulos et al.
(2003), Young et al.
(2010), Lin and Huang
(2012)
Quality Tendency to purchase/ Berger and Corbin (1992), Tendency to purchase green products
customer satisfaction Peattie (2001), Ginsberg is affected by performance of green
and Bloom (2004), Jain products
and Kaur (2004), Luo and
Bhattacharya (2006),
Gupta and Ogden (2009),
Lin et al. (2013), Lu et al.
(2013)
Cost Tendency to buy Berger and Corbin (1992), Economic status and cost of products
Bei and Simpson (1995), determines tendency to buy
Ginsberg and Bloom
(2004)
Reference groups Purchase of green Roberts (1995, 1996), Consumption pattern of reference
products Straughan and Roberts groups has an impact on purchase of
(1999), Lee (2008), green products
Akehurst et al. (2012)
Availability/convenience Willingness to pay Van Liere and Dunlap Availability of products within the reach
of purchase (1981), Samdahl and of consumer affects willingness to pay
Robertson (1989), Berger
and Corbin (1992)
Customer satisfaction Willingness to pay Reichheld and Sasser Willingness to pay varies with customer
(1990), Fornell (1992), satisfaction
Finkelman (1993), Bei and
Simpson (1995),
Anderson (1996),
Homburg et al. (2005),
Michaud and Llerena
(2011)
Marketers claims in Consumer behaviour King (1985), Kangun et al. Result of claims (i.e. claims made are
terms of trust, loyalty (1991), Mendleson and true or green washing)/trust, loyalty
Polonsky (1995), Mohr
et al. (1998), Jain and
Kaur (2004), Peattie and
Crane (2005), Gupta and
Ogden (2009), Grimmer
and Bingham (2013)
(continued)

Table III
Independent variable Dependent variable
(IV) (DV) Authors Description
Price (as barrier) Purchase Weiner and Sukhdial High price acts as a barrier towards
(1990), Prakash (2000), purchase of green products
Chen (2001), Peattie
(2001), Ginsberg and
Bloom (2004), Leonidou
et al. (2010), Essoussi
and Linton (2010), Doorn
and Verhoef (2011), Lin
et al. (2013), Lu et al.
(2013)
Advertisements/Ecolabels Purchase of green Hartmann et al. (2005), Type of advertisement and claims
products Rex and Baumann (2007), made
Rahbar and Wahid
(2011), Hartmann and
Apaolaza-Ibàñez (2012),
Testa et al. (2013)
barriers which hinder the purchase, such as cost, trust and certification. One of the major
constraints in making these products popular is the right positioning and communication
strategy, as the green attributes in a product need to be communicated to the consumer in an
appropriate manner. Firms must make a calculated decision as to what feature is to be
highlighted vis-à-vis- competitors. Sometimes, green attributes can only be used to target the
customers, whereas in other cases, both core as well as green benefits need to be
communicated to the customer.
6. Directions for future research

The literature studied also points towards the fact that more research needs to be done in
bridging the gap between consumers’ perceptions and firms’ efforts, as on one hand, we
have a consumer who lacks clarity in terms of his green needs and on the other, the firms
are trying to experiment with green innovations. Green consumer behaviour is one area
which is well-researched but studies are generic in nature. Industry-specific and
product-specific research will lead into consumer decision-making process. More insights
into how much consumers are willing to pay need to be worked out. More so in the case of
developing countries, where the pro-environment movement is gaining momentum, the
demand of green products is not in consonance with this increasing awareness.
Based on our review of existing literature, we identify following areas in which future green
marketing research is to be targeted or strengthened. Much research has been done on what
motivates a firm to go green, whereas more enquiries are needed to find out why consumers
buy green products? What motivates them to prefer green products over conventional
products? What are the factors responsible for purchase of green products and their
willingness to pay more for these products? What are the various barriers to purchase? Here,
there is a need to delve into psychological barriers for green consumption. Segmentation and
consumer-profiling studies targeted at identifying and understanding the right customer will
also fill in the existing gap in the literature. What do customers perceive of green products and
how these perceptions are related to consumers’ decision-making process is also important.
The role of information and awareness has been well-documented, but how this is used by
manufacturers to fill the gap needs attention by researchers. At the same time, various product
stewardship activities, such as the right use and disposal of used products, are extremely
important. The role of incentives to facilitate the consumers in their environment-friendly
practices needs to be explored.
The paper discusses various opportunities for green marketers, but the next step is to see
which opportunities can help the firm to stand apart in the green domain? Which are the core

and peripheral benefits delivered by green products? How best can we deliver a product with
green characteristics without compromising the core benefits? What are the consumers”
perceptions related to green characteristics? How can these preferred green characteristics be
used to enhance the customer value and hence increase profits? Can these green
characteristics be defined or standardized in case of specific products? This may sound a
difficult task but is certainly going to facilitate the purchase of green products. Similarly, plenty
of literature is available in the green product development area, whereas a few issues need
more attention, such as how green product development can be aligned with both
organizational and environmental goals? What is the impact of stakeholders including customer
in influencing the green product development strategy? Product portfolio analysis research at
the business or product line level may help in identifying products which are both
environmentally as well as market-wise attractive? The role of green alliances in development,
design, use and disposal of green products also needs to be explored. The fact as to whether
already green alliances have been able to fetch profits for firms also needs to be investigated.
On the marketing communication side, it will be worthwhile to explore these questions: What are
various means firms can use to communicate green benefits? How do consumers perceive
these? How these can be linked with green branding efforts? How do we use communication
efforts to justify costs? How do advertising and communication efforts contribute to green
efforts of firm?
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Corresponding author
Sapna A. Narula can be contacted at: narulasapna@gmail.com
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Sapna A. Narula is Abstract

2. The evolution of green marketing research

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3. Objectives and methodology

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4. Defining the scope and potential of green marketing

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1 Environment “Less toxic”

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4.1 The green consumer and needs

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Green producrt development

Green logis cs and Distribu on

Green Adver sement and Promo on

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4.2 Identification of green segments

Figure 2 The ladder of green needs

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4.3 Green buying behaviour

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4.4 Willingness to pay for green

5. Conclusions and managerial implications

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6. Directions for future research

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Bowen, F. (2000), “Environmental visibility: a trigger of green organizational response”, Business

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Charter, M. (Ed). (1992), Greener Marketing, Greenleaf Publishing, Sheffield.

Coddington, W. (1993), Environmental Marketing, McGraw-Hill, New York, NY.

Dahlsrud, A. (2008), “How corporate social responsibility is defined: an analysis of 37 definitions”,

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Michaud, C. and Llerena, D. (2011), “Green consumer behaviour: an experimental analysis of

VOL. 12 NO. 1 2016 SOCIAL RESPONSIBILITY JOURNAL PAGE 19

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Soonthonsmai, V. (2007), “Environmental or green marketing as global competitive edge: concept,

Varadarajan, R. and Menon, A. (1988), “Cause related marketing: a co-alignment of marketing

VOL. 12 NO. 1 2016 SOCIAL RESPONSIBILITY JOURNAL PAGE 21

Peattie, K. (1992), Green Marketing, Pitman Publishing, Great Britain.

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