1. ABSTRACT
Recently, concerns about the environmental impact of products have been expressed by both manufacturers and consumers. They have directed their attention towards environment friendly products that are referred to as “green”. Although a variety of research on green marketing has been conducted across the globe; little academic research on consumer perception and preferences has been carried out in India with respect to opportunities in the field of organic food products sold online as well as restaurants serving organic food in their menu. The research paper tries to identify the green values of the consumers, their level of awareness about health issues of consuming non-organic foods and artificially produced chemical induced food products as well as their perception on restaurants serving food made by using organic food products. Awareness about green marketing practices and products among the consumers was found to be quite low. Research provides a good insight for marketers of the green products and suggests the need of designing better marketing communication campaigns or promotional campaigns promoting green products due to lower awareness of green products. The paper throws light upon consumer perception and preferences towards green marketing products and services using a structured questionnaire. A study was conducted involving 56 respondents. Result of analysis were obtained on two parameters, viz, home delivery of organic food products and restaurants serving organic food. Results of the regression analysis for home delivery of organic food products revealed that frequency of purchase of organic food products online is dependent on two factors that are delivery time and packaging of these products whereas price and delivery person’s behavior turned out to be the factors not influencing the purchase frequency. Results of the Chi-Square analysis of the restaurant data also revealed that the characteristic age group is affected by the outcome variable of going to an organic food restaurant, organic food giving better health quotient & going to an organic food serving restaurant because of its novelty factor.
2. INTRODUCTION
The field of green management has lately begun to broaden its research and there has been a growing recognition for the role of small and medium sized enterprises, importance of sustainability in strategic business development and the emergent significance of consumer demands on firms. Green Marketing is the marketing of environmental friendly products and services; it is a holistic marketing concept wherein the production, marketing, consumption and disposal of products and services happen in such a manner that is less detrimental to the environment with growing awareness about the implications of global warming, non- biodegradable solid waste and harmful impacts of pollution. The products are manufactured in a sustainable fashion from renewable materials without using toxic or ozone- depleting substances in a way that they are recyclable.
Green entrepreneurship is the activity of consciously addressing an environmental/social problem/need through the realization of entrepreneurial ideas with a high level of risk, which has a net positive effect on the natural environment and at the same time is financially sustainable. Balancing economic health (profit), social equity (people) and environmental resilience (planet) through entrepreneurial behavior is what identifies a sustainable entrepreneur (Kai Hockerts, 2009). The adoption of green marketing significantly reduces waste and improves efficiency. It helps in increasing revenues and thereby the potential to expand the business. This results in improved public perception and brand loyalty leading to higher customer retention and even larger customer base. Firms have realized that consumers prefer products that do not harm the natural environment and also the human health. Firms that adopt green marketing thus develop a competitive advantage over others, simultaneously meeting their business objectives.
Based on different definitions of green marketing, some common characteristics of products generally accepted as green are:
● Energy efficient (both in use and in production)
● Water efficient (both in use and in production)
● Low emitting (low on hazardous emissions)
● Safe and/or healthy products
● Recyclable and/or with recycled content
● Biodegradable
● Renewable
● Reused products
● Third party certified to public or transport standard (e.g. organic, certified- wood)
The most budding branch of the Green Marketing segment is that of Organic foods. There has been an increase in demand for organic products over the years mainly due to their health benefits and higher quality. However, some people remain unconvinced and reasons for that are generally the high price of organic products or simply the lack of awareness. We have conducted the study to first find out the general perception with respect to organic products in the minds of the people in India. Our aim is to find out what factors are helping increase the market share of organic products the most. The study showed that the inclination is most towards organic food products out of all the other organic products available. The two areas affecting the market share are 1) Home Delivery of organic products and 2) Restaurants that serve food made with organic products. The first one helped us conclude that organic food products are the most sought-after organic products in the market and also the various factors such as price, delivery time and packaging that affects the frequency of online order placement. The second study helped us find if the people in our country would rather buy raw food items and make their food or have a restaurant serve it to them.
2.1 Consumer perception towards organic food products India
According Dr. S Sarumathi a person who practices environment behavior will encourage healthier communities, therefore understanding the concerns with regard to environment amongst the consumers can encompass a significant influence on public wellbeing. (Sarumathi, 2015). Consumers are more concerned about the health, nutrition and the food quality and healthiness has become as the most important measure and quality parameter among the food purchasers (Magnusson, 2001; Wandel M. &., 1997). They hold positive attitudes toward organic food products because they conceive that organically grown foods are healthier and safer than conventional alternatives (Beharrel, 1991; Jolly, 1991).
The studies conducted recently disclose that the organic foods comprise of high levels of beta carotene, cancer fighting antioxidants, health-promoting polyphones, vitamins C, D and E, necessary fatty acids and minerals that avoids heart disease. According to Organic Consumers Association it has more iron (73%), calcium (63%), molybdenum (178%), potassium (125%), chromium (78%), magnesium (118%), zinc (60%) and phosphorus (91%) than conventional products and grown products. Spangler stated that the benefits of organic food are still unclear (Smith-Spangler C, 2012). Baranski recommends that opting organic food can see a remarkable increase in the consumption of nutritionally desirable antioxidants boosts immune system and reduces risks of heart diseases (Barański, 2014).It prevents premature ageing, cancer, ensures safe and healthy world for future generation and also promotes animal welfare. Despite the fact that the concept of―organic food‖ is well recognized by most of the consumers (Roddy, 1996) (Alvensleben, 1986), the percentage of consumers who buy organic food on a regular basis is very less (Roddy, 1996) (Grunert, 1991) (Wandel M. &., 1997) (Fotopoulos C, 2002).
In accordance with the BCG report (2009) around fifty percent of consumers choose not to buy environmental friendly green products for various reasons such as unaware of green products (34%), only few option (16%) that too it is expensive (11%). Few felt (2%) the quality of the products are poor comparing with the conventionally produced and some of them don‘t trust (4%) the label information and the certification. Generally green products are costlier than the conventional products because higher cost is acquired by the process, material and to obtain certified eco labels (Ling, 2013). Hence, we can conclude that the important considerations among the consumers when they buy organic food are taste, health and environmental benefits, whereas the price and availability of such products are the major obstacles (Lockie, 2002) (McEachern, 2002).
Organic food in India was always valued and regarded but over the last few decades the stature has changed to a wide extent. Food products available in the market today are laden with chemical fertilizers and pesticides. These chemicals have been in practice mostly to get an early and huge produce. The use of these chemicals has in turn enhanced the rate of productivity to a higher extent but it has also led to increase in environmental and health related issues in India and worldwide
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