GREEN MARKETING AWARENESS AND CONSUMERS’ PURCHASE DECISION OF FOREVER LIVING PRODUCTS
(A CASE STUDY OF ZARIA)
By
Author
Presented To
Department of Administration
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Over the past few decades, concern about the environment has become a significant public
issue. A sharp rise in environmentalism, which is a movement that began as a process of
protecting the consumers against unethical marketing practices, has emerged in the United
State and Western Europe in the 1970s and as a result of the increased level of environmental
awareness, this leads to a positive change within consumers’ behaviour towards
environmentally related products. This change contributed to the start of the green revolution
to prevent further environmental damages (Purohit, 2012).
Although, environmental issues influence all human activities, as society becomes more
concerned with the natural environment, businesses have begun to modify their behaviour in
an attempt to address this society’s new concerns. Some businesses have been quick to accept
concepts like environmental management systems and waste minimization, and have integrated
environmental issues into all organizational activities. Afterward, due to increased social and
political pressure, organizations have moved beyond these concepts to recycling, alternative
packaging, redesigning of products, and alternative products. Since 1990s, environmental
concern has become one of the most important issues. Both in United States and Europe,
businesses have discovered that in future, consumers are more likely to be environmentally
conscious when making their purchase decisions (Teng & Weai, 2014).
One business area where environmental issues have received a great deal of discussion in the
popular and professional press is green marketing, in return to consumers concern and attitudes
for the environment, companies make their marketing strategies to appeal consumers
environmental concern. This marketing strategy, named as green marketing, have caused
companies to adopt green policies in their marketing activities (Suplico, 2009). Forever living
product company is incorporating societal environmental concern into their marketing strategy
by offering environmental friendly products.
Forever Living Product Company (FLP) is considered as one of the companies that aim at
improving environmentalism and also increase individual satisfaction. The green marketing
concept advocates that businesses/business organizations must develop products and marketing
strategies, that are not only address the needs of the consumers, but also safeguard the longterm interests of those consumers as well as those of society at large. Most business
organizations are often accused of making products and packaging as well as using
manufacturing processes that damage the environment. The green movement holds that it is a
part of the responsibility of business organizations to ensure that they conduct their activities
in such a way that they do minimum harm to the environment and the consumers (Chan, 2012).
While consumers attempt to shift to green life style may appear to be more expensive in the
short term, it will definitely prove to be indispensable and advantageous, cost-wise too, in the
long run and also green based products are higher in quality in terms of energy saving,
performance, convenience, safety etc. Green products offer consumers with the benefits of
healthier, more fulfilled lives and power to make the world a better place, in terms of the
environment. Production of green products will result to better environment as a result of
reduced air and water pollution, waste energy depletion, depletion of natural resources (Azizan
& Suki,2013).
In the purchase of green products, consumers should have the awareness of the products that
are marketed using the green marketing concept, because lack of information about the green
product impedes consumers green purchase decision (Xie, 2012). Marketers should influence
each of these decisions, by providing information that can assist in the product review.
Marketers also have the responsibility to make the consumers aware about the need and
benefits of green products as compared to non-green ones and to make it available for them to
purchase (Aman,Harun & Hussein, 2012).
As availability denotes the level of ease or difficulty to obtain or consume a specific product,
consumers demonstrate negative green purchase behaviour due to non-availability of these
green products (Vermeir & Verbeke, 2004). The negative purchase behaviour is also due to
insufficient availability and marketing of the environmental friendly products (Mainieri.,
1997).
Rex and Baumann (2006) stated that the aim of green marketing is to include environmental
issues in the marketing efforts. Although, no consumer product has a zero impact on the
environment, in business, the terms “green product” and “environmental product” are used
commonly to describe those that strive to protect or enhance the natural environment by
reducing or eliminating use of toxic agents. Forever living products are design in a way that it
reduces the negative impact that such product may have on the environment as well as the
individual consuming it. Othman (2006) state that Green marketing must satisfy two objectives:
improved environmental quality and customer satisfaction The growth of green marketing and green consumer is “perhaps the biggest opportunity for
enterprise and invention the industrial world has ever seen" (Cairncross 1992). A green
consumer can be identified to be one who avoids any product which may damage any living
organism, cause deterioration of the environment during process of manufacturing or during
process of usage, consume a large amount of non renewable energy (Elkington, 1994). There
have been a number of different factors which are instrumental in making green consumers to
purchase green products. Extensive research over the years identifies that heightened
awareness of green issues; increased level of information availability on environmental
sustenance; green advertising by corporations; increased concern for the environment; increase
in popularity of green products by social and environmental charities are some of the factors
influencing green purchasing decision. Today green developments are identified as
opportunities by business firms to improve their marketing niche rather than just actions which
need to be carried out (Sharma, 2012).
1.2 Statement of the Problem
As society becomes more concerned with the natural environment, this has led to the adaptation
and development of consciousness of consumers’ attitude towards eco-friendly products in
order to preserve the planet (Luck, Edwina, & Ginanti, 2009). However, it has become global
struggling to achieve the purpose of the environmental protection. Thus, companies are using
various means to persuade the consumer segments that are environmentally conscious to
change their attitudes from the conventional products to green or environmental friendly
products.
Most studies on consumers’ behaviour concerning the environment concentrated on one or two
individual factors such as attitude and consciousness (Abdul Wahid &Abustan, 2009). They do
not make a link with the factors that companies use (company brand image, green price, green
products etc.) to make consumers buy green products and their attitudes towards these products.
Furthermore, previous findings concerning consumers’ attitude towards eco-friendly products
are conflicting, for example some studies found that consumers think of non green product as
being of high quality than the environmental friendly products (Verneker& Wadhwa, 2011,
Dunlap & Scarce, 2010, Mostafa, 2010). While some showed the opposite (Gan, Han Yen Wee,
Kao, 2008). Hence, this study intends to look at the inconsistencies in the findings of the
previous studies.
In some studies findings show that consumers are willing to pay more for green products
(D’Sauza, 2004, Tan &Law 2010, Suchard& Micheal 1991, D’Sauza, Taghian & Lamb 2006,
Suki 2013). Other studies confirm that the extra price has to be low (Piram & Secondi 2011,
Purohit 2011, Vernekar et’al 2011).
Considering all the above findings, it could be concluded that there is inconsistency in the
results of the prior researches on green marketing and consumers purchase decision. Finally,
most of the previous studies were conducted in developed countries. It is to be acknowledged
that if considered from a developing country context there is lack in number, also in Nigeria to
the best of the researcher knowledge not much work is done. And this concept is becoming a
central component of marketing strategy but still at its infancy stage, also consumers lack the
understanding about social and environmental benefits of green products, however, the question therefore is: To what extent does green marketing awareness affect consumers
purchase decision?
1.3 Research Questions
In line with the problem, the following questions are raised.
I. To what extent do consumers' environmental concerns influence purchase
decision of Forever Living Product customers, Zaria?
II. Does green price influence consumers' purchase decision of FLP customers,
Zaria?
III. Does awareness of green products affect purchase decision of FLP customers,
Zaria?
IV. Does green brand image affect purchase decision of FLP customers, Zaria?
1.4 Objectives of the Study
The overall objective of this research is to determine the influence of green marketing
awareness on consumer purchase decision of FLP customers. Other specific objectives are;
I. To determine the influence of consumers' environmental concerns on purchase
decision of FLP customers Zaria.
II. To determine the influence of green price on purchase decision of FLP
customers Zaria.
III. To examine the influence of awareness of green product on purchase decision
of FLP Zaria.
IV. To examine the influence of awareness of brand image on purchase decision of
FLP customers Zaria.
1.5 Hypotheses
In line with the objectives, the following hypotheses will be been formulated for testing.
H01: Consumers' environmental concern does not significantly purchase influence
decision of FLP customers Zaria.
H02: Green price does not significantly influence purchase decision of FLP customers
Zaria.
H03: Consumers' awareness of green product does not significantly influence purchase
decision of FLP customers Zaria.
H04: Consumers' awareness of brand image does not significantly influence purchase
decision of FLP customers Zaria.
1.6 Significance of the 1.6 Significance of the Study
Green marketing strategy is becoming one of the central components of marketing strategy,
there are several literatures on this concept but it is still at its infancy stage in Nigeria and also
consumers are lacking the awareness of the benefits of this strategy. The current study will
provide a valuable insight to both practitioners and theoreticians who want to understand
environmentally conscious consumers. Since the success of green products depend on the
consumers adopting or changing their attitude and behaviour towards such products, it is
imperative that green marketers identify all the factors that encourage cooperation. Thus the
current study will also be of benefit to the green marketers as it aids in developing a marketing
strategy that persuades consumers to seek the value of collective gain over self-interest. It will
also provide the consumers with the necessary information on green marketing strategy.
Furthermore, this research finding may also benefit businesses which want to offer
environment friendly products to educate consumers.
1.7 Scope of the Study
This study aims at examining the influence of green marketing on consumers’ purchase
decision, it is restricted to customers/ users of FLP that are based in Zaria. Green marketing is
the dependent variable for the study while consumers environmental concern, awareness of
price, product and brand image are the independent variables this is in line with Lee (2008),
Chen and Chai (2010) and Suki (2013). These variables are considered because they are linked
with other variables that are used in the previous studies, which are having conflicting
results/findings FLP is considered to be one of the leading companies that offers natural and pure products,
that are free from all toxic substances, it is therefore, pertinent to assess influence the of green
marketing on their consumers purchase intention.
1.8 Definition of Terms
Eco friendly –is a sign that differentiate green product from non green.
Environmental friendly –describe that the firms processes and products consume less energy
are recyclable, lessen waste and pollution, and preserve natural resources.
FLP- Forever Living Product
Green –product or company that has more sustainable impact on the environment..
Green purchase –willingness of individuals to pay more for environmental friendly products.
Green marketing- as any marketing activity of product and services that are meant not only
to satisfy the needs and wants of human but also to minimize the negative impacts from the
usage of them to the natural environment.
Green consumer- individual.
Green consumer- is one who buy and use products that satisfy their needs and has less impact
on environment.
Consumers purchase decision- likelihood that a consumer intends to purchase a product.
Green product- A product free of harmful substance.
Green price - A favourable price.
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