Critical Review of Causes Leading to the Adoption of Green Marketing in International Marketing

Topics: Environmentalism, Marketing, Greenhouse gas Pages: 13 (3942 words) Published: April 10, 2011
This report seeks to further discuss on the buyer's behaviour and how it relates to companies deploying specific green marketing strategies. The presentation highlighted examples of different buying behaviours in different locations and cultures but it failed to relate it to any theoretical analysis. Market segmentation is to be considered an important factor in green marketing strategies. Also to be discussed are the drivers of firms concentrating on the green segment. This report intends to probe further the events that have taken place apart from what has been presented during the introduction. Public pressure as a driving force for the green movement is currently positive in most regions of the world, and serving to push environmental improvement steadily forward. Eric G. Olson (2009). Intensifying environmental regulations by governments and other bodies, growing pressures on organizations by stakeholder groups to preserve the environment, and raising concerns of the general public about the harmful effects of certain industry practices on the ecology are issues responsible to the phenomenal increase worldwide in the number of firms adopting environmentally friendly approaches in their sourcing, operating and marketing activities. Leonidas C. Leonidou et. al. (2010) Arminda do Paco and Mario Raposo (2009) found that it is obvious that in terms of segmentation, certain environmental and demographic variables are significant for differentiating the "greener" segment and other segments. This goes to show that consumers may be supportive towards policies designed to improve the environment but may not necessarily translate their concerns into actions. The author goes on by concluding that these concerns are more closely related to economic factors than environmental consciousness. With more interest shown and the more firms entering the green market, it comes to a point that marketers need to pay special attention and acknowledge the new trend and the emergence of a new segment of consumes, the green consumers. Public awareness and concern on about the environment have begun to be displayed in their buying behaviour. There has yet to be an agreement of the correlation of different factors such as age, sex and sensitivity due to different sampling and method of research. The authors note that attitude does not always translate to buying decisions but it seems that the more closely the consumers are involved with the environment the more likely they are to buy green products. The author summarizes the 4 different criteria which can be used for segmentation. a. Demographic e.g. age, gender, family

b. Psychographic e.g. lifestyle, personality, motivation, values c. Behavioural e.g. knowledge, attitude, usage, loyalty
d. Environmental e.g. concern, willingness to pay, recycling, commitment

However, on the other hand, consumers are also concerned with the quality and safety of the green products that they purchase. Essoussi and Linton (2010) in studying 7 different product categories found that perceived functional risk is an important determinant of the price that consumers are willing to pay for products that have recycled or reused content. With high functional risk products, consumers will switch from a recycled product to a new product within a small range of price.

Erica Mina Okada and Eric L. Mais (2010) in their article found that positive framing (focusing on the advantages of green product) works best for environmentally conscious consumers and negative framing (focusing on avoiding the disadvantages of non-green product) works best for less environmentally conscious consumers. Also for the latter, focusing on subtractive price framing (focusing on the discount consumers would pay for the non-green product alternative) results in a higher green premium compared to focusing on the additional price consumers would pay for the green choice. In the article, Leonidas C. Leonidou et. al. (2010), there...
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