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The effect of Green Marketing on Consumer and Corporate Behaviour

O'Reilly, Tom (2015) The effect of Green Marketing on Consumer and Corporate Behaviour. Masters thesis, Dublin, National College of Ireland.

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In recent years, the concern for environmental issues has become an area of concern for organisations, governments and consumer alike. In Ireland, the green economy has grown exponentially providing major employment opportunities. Government initiatives have been introduced to provide financial support and grants to organisations that offer goods and services in a sustainable manner through activities such as sustainable food, production, tourism, green financial services, green products and services, waste and water management, renewable energy and energy efficiency. They do this in order to achieve sustainable economic growth according to Growth and employment in the green economy in Ireland. (2013). This trend gave huge rise to the topic of green marketing especially due to environmental issues such as dramatic changes in the world’s climate, which has led to global warming, flooding, earthquakes are more natural disasters effecting the entire globe.

Green marketing is a broad concept and organisations alike have changed their habits to become more sustainable and are turning to the production and consumption of more eco-friendly products and services. Green marketing aims at changing consumer’s attitudes towards products or services which are deemed more environmentally friendly. The difficulty lies in changing consumer behaviour. Consumers have changed their attitudes towards eco-friendly choices mostly due to government regulations as well as the growing trend and demand for “green” products brought on by competitor’s forces. Even through recessionary times green marketing has generated employment and economic growth.

The aim of this study is to examine the effect of green marketing on consumer and corporate behaviour. According to a report by developing the green economy in Ireland. (2009), there is massive potential for the green economy to provide significant grow in employment and cash flow into Ireland. The report stated that renewable energy sector will create at least 50,000 direct jobs by 2020 whereas the construction sector will generate approximately €600 million in revenue whilst meeting the energy efficiency regulations set out in 2007. As well as this many brands have recognised these trends as way to build positive brand equity by displaying how their company is making an effort to act environmentally friendly.

The title of this report is “The effect of Green Marketing on consumer and corporate behaviour”. According to Kaue, S (2014) “Green Marketing is the marketing of products which are considered not to be harmful for environment. Various terms like eco-friendly, recyclable, ozone friendly are often associated with green marketing. Green Marketing offers various incentives to business firms & provides growth possibilities.” (Kaur, S. (2014)

The Hypothesis of the study is to determine how the green movement has influenced consumers and corporate entities purchase choices and practices by have an influencing stance their decision choices and business CSR strategies.

A deductive approach was conducted by the author. In accordance with Bryman & Bell (2011), deductive approach occurs when researcher uses known and established information in order to use a guide to create a hypothesis which is therefore tested to be confirmed or rejected in the review. This allowed the author to identify green marketing has an influence consumer and corporate behaviour by using qualitative data.

The literature review was carried out to define green marketing and to examine primary and secondary literature around green marketing and the influence and impact it has in today’s world. The literature highlights key factors and theories in which define the relationship between green marketing and the power of influence. The focus group conducted for the purpose of this study provided primary data determining the perception, influences, impacting factors and responsibility today’s people have to a green economy and market when making purchase and corporate strategic decisions.

The results found that research concluded that:
1) Consumers do not readily trust green brands due to green washing.
2) There is a need consumers and corporations to be educated on green initiatives.
3) Organisations feel that they can be doing a lot more to support green practices
4) Governing bodies need to be more proactive in the legislating and developing sustainability.

Recommendations of the researcher dictate that there is demand for the government to more proactive in their approach in regards to encouraging and incentivising operations in a more sustainable manner. Secondly, it was apparent there was a direct linkage between consumer knowledge and consumers behaviour, therefore recommendations include the need for increased education and communication of green practices. Similarly the final recommendation is based from the research finding’s which highlighted that there was fears and concerns that surround the topic of green marketing and that offered that the solutions was increased government legislation and increased education and awareness of the topic.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HF Commerce > Marketing > Consumer Behaviour
H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations.
H Social Sciences > HF Commerce > Marketing
Divisions: School of Business > Master of Science in Marketing
Depositing User: Caoimhe Ní Mhaicín
Date Deposited: 19 Oct 2015 08:30
Last Modified: 19 Oct 2015 08:31

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