1) The document discusses a study on consumer attitudes towards eco-friendly products. It analyzes whether consumers are willing to pay higher prices for eco-friendly products and the impact of environmental concerns on purchasing decisions. 2) The study found that while many consumers are aware of eco-friendly products and environmental issues, some do not consider the environmental impact of everyday purchases and are not willing to pay higher prices. 3) However, when products are clearly labeled as eco-friendly, most consumers say this would influence their purchase decision and they trust the quality of eco-friendly options. The study concludes raising environmental awareness could make such concerns a stronger driver of consumer behavior.

1. Consumer Behaviour – An Eco friendly approach
Maneesha Patel, Namita Raina, Raj Patel
Maratha Mandir’s Babasaheb Gawde Institute Of Management,
Mumbai University, India
maneesha_mark18@yahoo.com, rajpatel010203@gmail.com, namitaraina9@gmail.com
Abstract: (Key words: eco-friendly products, consumer
Objective: The main objectives of the study behaviour, willingness to pay)
are to investigate the consumer attractiveness
towards eco- friendly products in FMCG I. INTRODUCTION
sector and their impact of purchasing Consumer’s consumption has been
decision. Also to analyse if they are willing to changed due to rapid economic growth
pay higher prices for the eco-friendly which has resulted in environmental
products and to make the necessary degradation through over consumption &
recommendations based on the finding about
utilisation of natural resources. If the
their buying behaviour towards these
products. The Paper suggests that the current trend of economic growth &
consumers who are highly concerned about irresponsible consumption patterns
the environmental issues and its deterioration continues the environment deterioration
are likely to pay higher price for such would be worsen. The consequences of
products. environmental degradation are global
Methodology: Data for this study was warming, depletion of stratospheric ozone
collected from all the segments of society, 70 layer, pollution of sea and rivers, noise and
respondents using a structured questionnaire. light pollution, acid rain and desertification
The questionnaire contains questions to (Ramlogan, 1997).
measure awareness of eco-friendly products, Hence, shift towards more
consumers’ environmental concerns, trust in
sustainable consumption patterns is
the quality of green products, & their
willingness to pay higher for the same. required and it is also important to increase
Result: The results of the data analysis the environment awareness &
indicate that few consumers are ready to pay consciousness among the people.
higher prices for these products as they are Consumers can reduce their impact on
more environment conscious where as some environment by their purchasing decisions.
consumers who are aware of environmental The rising number of consumers who
degradation are of opinion that if the same prefer and are willing to buy eco-friendly
product is available at lesser cost then why to products are creating opportunity for
pay the higher cost for it. The survey findings businesses that are using “eco-friendly” or
disclose the consumers’ awareness about “environmentally friendly” as a component
green products and the impact of
of their value proposition.
environmental concerns on consumer’s
purchases. Businesses that offer products
Conclusion: Environmental concerns could which are manufactured & designed with
emerge as one of the powerful drivers that an environmental marketing mix have a
influence purchase, but it has actually not long term competitive advantage.
resulted in the ability to command a Environmental issues are of importance to
sustainable premium: consumers are willing consumers who are environmentally
to buy eco-friendly products, but not pay the conscious when making a purchase.
higher price. If the consumer’s demands Hence, a better understanding of consumer
increases the costs of production of eco- preferences in this case will allow
friendly products will reduce. Awareness businesses to acquire more market-
among consumers that their buying choices
applicable approach to sustain in the
can make a difference to the environment
should be promoted to accelerate the competitive market.
consumption of eco-friendly products.

2. But first let us know what is Green There are lots of harmful effects
Product- This is the product that will not associated with the usage of plastics,
pollute the earth or deplore natural chemicals, non-biodegradable items,
resources, and can be recycled or which is why, it is high time that we start
conserved. It is a product that has more using eco-friendly products as soon as
environmentally sound content or possible. Also, we should change our
packaging in reducing the environmental lifestyle restricting the usage of coolers
impact (Elkington and Makower, 1988; only during their utmost need, replacing
Wasik, 1996). plastic covers with jute and paper bags,
In other words, green product checking the carbon emission of our
refers to product that incorporates the vehicles and servicing them regularly.
strategies in recycling or with recycled Even the feminine products like
content, reduced packaging or using less earrings, handbags, purses, chains, creams,
toxic materials to reduce the impact on the body wash, and scrubs are available as
natural environment. Krause (1993), in his handmade and handcrafted natural items
research found that consumers were which can easily replace the artificial
becoming more concerned about their plastics ones. There are also organic
everyday habits and the impact on the clothes available in the market made using
environment. The outcome of this is that natural cotton, environment friendly dyes.
some of the consumers translated their These eco-friendly dresses and accessories
environmental concern into actively are more appealing as they set new trends
purchasing green products commitment in the market and make one feel proud of
(Martin and Simintiras, 1995). wearing it by helping in preventing
Eco friendly products are readily damage to our surroundings.
available nowadays. These include small One can only hope that change is
articles from handmade papers bags, jute the only thing that is constant, once we
bags, and recycled papers to Eco friendly decide protecting our nature thereby
fuels and so on. However in spite of a ensuring our own safe future, and then the
plethora of eco-friendly products being rest of it follows. Let’s start using eco-
made available, majority of the people are friendly products for a start now and turn
still oblivious about the very existence of the vision of a lovely environment in the
such products, which is rather unfortunate. future, a reality.
The most important reason why
one should start using eco-friendly II. LITERATURE REVIEW:
products is because of the devastating Green purchase behaviour refers to
effect of harmful gases, non-biodegradable the consumption of products that are
plastics, dangerous gases which not only benevolent or beneficial to the
pollutes the environment but also causes environment, recyclable or conservable
respiratory problems in human beings. and sensitive or responsive to ecological
Apart from humans, it could also lead to concerns (Mostafa, 2007). As public
complete extinction of various rare species environmental concern has increased over
of animals and birds. It also increases the several decades, consumers who demand
earth’s temperature, which in turn causes products for immediate benefits toward
the greenhouse effect. The excess of themselves and for the long term benefits
greenhouse gases especially carbon toward the environment have emerged and
dioxide in the atmosphere prevents the increased (Follows & Jobber, 2000)
earth’s heat from escaping the atmosphere Following Berkowitz and
and radiates it back to the earth’s surface, Lutterman’s (1968) study, Henion (1972)
thereby increasing the global temperature. also thought that consumers with medium
or high incomes would be more likely to

3. act in an ecologically compatible manner issues, there is an increase in the demand
due to their higher levels of education and for ecological products. This increased
therefore to their increased sensitivity to awareness of and sensitivity towards
social problems. environmental issues places certain
Changes in the condition of natural demands on business functions to become
resources and their long term negative greener.
impact has led to some realization about
human responsibility towards nature. This III. OBJECTIVES
realization has led to development of eco- The Main objective of the study is,
friendly consumption patterns among 1. To investigate the consumer
consumers. Grunert (1993) reported that attractiveness towards eco- friendly
about 40% of environmental degradation products in FMCG sector and their impact
has been brought about by the of purchasing decision.
consumption activities of private
households. The need for eco-friendly 2. To analyse if the consumers are willing
products is gradually increasing on to pay higher prices for the eco-friendly
account of persistent raise in the concern products.
for environment related issues.
Fortunately, eco-friendly consumption and IV. RESEARCH METHODOLOGY
spending patterns has led the marketers to 70 questionnaires were distributed
understand the eco-friendly attitude of the to various educated segments of society.
consumers and come up with the 63 total questionnaires were received back
marketing mix which preserves with a respond rate of 90 per cent. After
environmental resources and at the same going through it we found only 50
time deliver value added products and questionnaires usable of which 50 per cent
services (Chitra, 2007). are males & 50 per cent are females with
Belz & Peattie (2008) stated that mean age ranging from 20 to 38 years. The
green marketing and environmental questionnaire was structured as follows.
marketing in the late 1980’s focused on The questionnaire contained 14 questions.
green consumers who would be willing to All questions were close ended except the
pay premium prices for more last one i.e. Q.14. where we had asked for
environmentally friendly products. Many their comments. These questions measured
consumers choose products that do not consumers’ awareness, knowledge about
damage the environment over less the environmental issues and eco-friendly
environmentally friendly products, even if products, trust in the performance of eco-
they cost more. With green marketing, friendly products and their willingness to
advertisers focus on environmental pay more for those products. The
benefits to sell products such as questionnaire also included general
biodegradable diapers, energy-efficient demographic questions such as age,
light bulbs, and environmentally safe gender, sex, qualification & occupation
detergents. Green marketing encourages etc.
consumers to use eco-friendly products
and manufacturers to develop more V. DATA ANALYSIS &
environmentally beneficial products. INTERPRETATION
Clem (2008) adds that going green Table:1 Survey Questionnaires provided to
reflects a social consciousness around respondents:
saving and advancing the Earth’s natural Questions Number %
resources, preserving and protecting them Have you heard of any
for the sake of civilization. As customers FMCG eco-friendly
become more aware of environmental products?

4. Yes 47 94% Going through these questions we
No 3 6% came to know that people are aware that
Name any eco-friendly their purchase decision will contribute to
products. the sustainable future but still they don’t
Answered 28 56% consider environment while making their
Unanswered 22 44% day to day purchases. 60% respondents
said that they don’t consider their
Through these above questions we got to purchases friendly from the environmental
know that 94% people have heard about point of view. But 76% respondents
the eco-friendly product but when we admitted that if the product is labelled as
asked them to name few products only eco-friendly so that information can
56% respondents were aware about the change their purchase decision.
eco-friendly products.
Table: 3 Survey Questionnaires provided
Table: 2 Survey Questionnaires provided to respondents:
to respondents: Questions Number %
Questions Number % Have you bought or
Are you aware that considered buying eco-
purchasing eco-friendly friendly products
products will available in the market?
contribute to the Yes 36 72%
sustainable future? No 14 28%
Yes 42 84%
Do you feel there is
No enough information
8 16%
about Eco-Friendly
Do you consider your
effect on the
features while buying
environment as a the Products?
Definitely Yes 1 2%
consumer before
purchasing general day Average 33 66%
to day products? Definitely Not 12 24%
Yes 27 54% Not sure 4 8%
No 23 46% Do you trust the quality
Do you consider your of eco-friendly
purchase friendly from products?
the environmental Definitely Yes 10 20%
point of view? Average 29 58%
Yes 30 60% Definitely Not 5 10%
No 20 40% Not sure 6 12%
Do you consider if the It can be stated that many i.e. 72%
product and its package of buyers have bought eco-friendly
are designed to be products but there is lack of information
recycled before making about eco-friendly products in the market.
a purchase? Because only 68% people have agreed that
Yes 27 54% there is enough information about those
No
23 46% product. 78% population believe that the
If the product is labeled quality of eco-friendly product is supposed
eco-friendly, would this to be high.
information change
your purchase? Table: 4 Survey Questionnaires provided
Yes 38 76% to respondents:
No 12 24%

5. Questions Number % eco-friendly products and 78% were found
Do you agree that the to trust the quality of eco-friendly
price of eco-friendly products.
products is supposed to It is also found that the segment of
be higher? consumers who are willing to pay more for
Yes 29 58% eco-friendly products may not be very
No 21 42% large. Even the educated segment which
Are you willing to pay was chosen by us for this study has shown
more for eco-friendly underwhelms response for paying higher
products? prices for these products. Thus, the
Yes 31 62% environment concerns could come up as a
No 19 38% powerful drive for influencing the
If Yes How much are consumers and changing their purchasing
you willing to pay behaviour.
more for eco-friendly
products? VII. LIMITATIONS & FUTURE
<5% 11 22% RESEARCH
5-10% 10 20% The sample size was very small
10-20% 7 14% and it was particularly collected from
20-30% 0 0% South Mumbai, India, so there was
42% of respondents believe that the geographical constraints too. The
prices of eco-friendly products should not questionnaires were distributed to highly
be higher whereas 62% people are willing educated respondents so they tend to be
to pay more for those products which more eco-friendly as compare to others.
shows that the consumers are more And also the present paper was conducted
environment friendly and willing to using self-reporting questionnaire hence
contribute in its sustainable growth. the respondents may be biased especially
in regard to the willingness to pay higher
price for eco-friendly products.
VI. KEY FINDINGS
The study shows that majority of VIII. SUGGESTIONS
sample respondents have heard of eco- The people are aware & concern
friendly products and have knowledge about the green products, so it creates an
about environmental issues. opportunity for developing green market
Approximately 94% respondents stated focusing on more educated consumers.
that they had heard of eco- friendly Also consumers want eco-friendly
products & 84% were aware of the fact products from those companies which
that purchasing eco-friendly products will have positioned themselves as Green
contribute to sustainable future. marketer or Eco-friendly Manufacturer.
More than 46% of respondents The right combination of eco- friendly
stated that they did not consider the effect products and service, sales, marketing, and
on environment while purchasing general management expertise is needed to target
day to day products where as 60% and attract the consumers who may be
considered that the purchases made by willing to buy eco- friendly products.
them were correct from environment point Green marketers should identify such
of view. A relatively higher proportion of segment of consumers and accordingly
respondents (76%) stated that labelling a design and market products at suitable
product as eco-friendly would change their price levels. Since eco-friendly features
choice of purchase. Further, 72% of the motivate consumers, hence companies
sample respondents considered buying should focus on advertising eco-friendly

6. brand labels, in-store displays and http://www.nytimes.com/2011/04/22/busin
hoardings. Advertisements campaigns may ess/energy-
be used to further promote the use of eco- environment/22green.html?pagewanted=al
friendly products. Such campaigns can be l&_r=0
directed at increasing concerns about http://www.thedailygreen.com/green-
environmental issues among consumers homes/eco-friendly/green-products-
and publicize the use of eco-friendly 460514
products.
The awareness about the products
should be done through advertising so that
individual buying behaviour can be
changed which can have an impact on the
welfare of the environment. It is also
important that companies aiming at
developing new eco-friendly products
should ensure that products perform
competitively.
IX. CONCLUSION
Environmental concern could
emerge as one of the powerful drivers that
influence eco-friendly purchases; it has
actually not resulted in the ability to
command a sustainable premium
consumers are willing to buy eco-friendly
products, but not to pay the higher price.
It may be important to examine in
future studies the effect of disposable
income on willingness to pay premium.
Increased consumer demand will help
reduce costs in production of eco-friendly
products. Awareness among consumers
that their buying choices can make a
difference to the environment should be
promoted. There is a scope for eco-
friendly marketers to capture this market
as it has long term scope & growth.
X. REFERENCES
Books:
1. Consumer Behaviour- M. Khan
2. Consumer Behaviour- Atul K. Sharma
3. Research Methodology- C.R. Kothari
4. The New Rule of Green Marketing-
Jacquelyn A. Ottman
Online:
http://greenliving.nationalgeographic.com/
going-green-home-products-2370.html