Question:
Assignment
The assignment has 3 elements:
1. You should firstly undertake wider reading around the issues raised in the module
presentations. Focus on what is written about consumer and business attitudes to green
marketing and purchasing behavior.
2. The next task is based around the business case (or not) of environmental and
sustainable business activities. You should interview 100 customers using the (SPSS)
methods and questionnaire produced and reviewed by you and your colleagues during
the module.
The aim of this is to understand whether your customers buying intentions are affected
by their awareness attitude towards green, ethical and environmental issues.
3. You should then write up your findings from the customer questionnaire. Your
discussion and conclusions should focus on the theme of ‘environmental business
activities: altruistic or realistic’, and discuss the role (or not) of green marketing in your
business strategy.
The assignment/report should contain a literature review, methodology, findings,
discussion, conclusion and recommendations (or management implications). Refer to
assignment structure for more information.
Solution:
Executive Summary
As part of ensuring existence of a balance between the changing
business environment and consumer needs and profitability of an entity, modern organizations
are investing in green marketing practices for social responsibility issues.
Green products and marketing is a requirement to leverage on competitive
advantage in the contemporary business operations. Taking this into account, the current study sought to investigate
the impact of green marketing on consumer purchasing patterns and decision
making in Dubai, UAE car industry. To achieve
this objective, the data used in the study was sourced through a
quantitative design and in particular a questionnaire tool of data collection.
The collected data were statistically analyzed
to generate relevant findings. This study found that there exists a direct relationship between green
products and their prices, consumers understanding of environmental issues and prices. Additionally, there was a direct
correlation between the green marketing strategies and consumer purchasing. In regard to recommendations, car dealers in
UAE must carry out green marketing, educate potential customers on the need for
shifting to eco-friendly products and creating awareness on dangers of
environmental degradation.
Table of Contents
1.1 Company Background and Placement. 4
2.3 Consumer Buying Behaviours and Decision Making for Green Products. 6
4.2 Cars and Environmental Issues. 12
1.0 Introduction
From a general perspective, altering a market segment for green products to be more conventional, it is requisite to study the factors persuading green behavior in consumer leading to a successful green purchases. According to Thøgersen et al. (2012), the decision-making by a consumer is influenced by a broad range of factors with the consumer’s awareness and knowledge about green products dictating the decision making. Currently, there exist studies that have evaluated whether green marketing is altruistic or realistic based on the communication used in influencing consumers purchasing behavior. Majority of the studies have hypothesized the existence of a correlation between consumer’s environmental beliefs and their confidence on the performance of green products (Rahbar & Abdul Wahid, 2011; Young et al., 2010; Han et al., 2009). Particularly, in the automobile industry, consumer values/beliefs and behaviours forms the driving force shaping their perceptions of environmentally friendly products guided by approaches of effective marketing. Nevertheless, it is not clear on the impact of green marketing on the consumers purchasing patterns and decision making. In this case, this report would focus on evaluating the consumer and business attitudes of green marketing and purchasing behavior in UAE consumer car industry. The objectives of the study would include to investigate the relationship between knowledge on environmental factors sourced from green marketing and customers buying preferences and to evaluate the link between the environmental behavior and consumer purchasing preferences. The last objective would be analysis of the correlation between environmental belief factors and environmental behaviours of the consumers in their purchasing patterns and decision making. To achieve the set objectives, a quantitative approach with survey as the research instrument would be used. The questionnaire include socio-demographic questions and questions touching on potential consumers beliefs on environment and environmental behavior surrounding their purchasing of cars.
1.1 Company Background and Placement
The company of focus in this report is the Al Nabooda Automobiles located in UAE involved in distribution of Audi, Porsche and Volkswagen cars brands. It has 12 lavish showrooms and dedicated service centres in Dubai, Sharjah and Fujairah. In the organisation, my placement is the head of marketing department for environmental friendly cars. I am involved in setting and executing marketing strategies to specific market segments based on their behaviours.
2.0 Literature Review
2.1 Green Marketing
Since its origination in the 1970s green marketing concept has consistently evolved. According to Polonsky (1994) which represent one of the earliest definitions, green marketing is a process involving marketing activities, both positive and negative, utilizing an understanding of energy and non-energy sources depletion and pollution. Recent definitions have progressed in terms of involvement of variables with Brindley and Oxborrow (2014) study defining it as marketing strategy aimed at achieving firms financial and strategic goals while ensuring a reduction of its negative implication on the environment. Additionally, (Rahbar & Abdul Wahid, 2011; Cherian & Jacob, 2012) studies identified green marketing as a practice of integrating environmental concerns into marketing aspects such as production, distribution logistics, promotion, and packaging in line with marketing communications. Furthermore, Ferraz et al. (2017) defined the green marketing environmentally considered approach involving disclosure of information to consumers at diverse levels such as industry, firm and product levels. In context of automobile industry, Oliver and Lee (2010) identified green marketing as a process of identifying, anticipating and satisfying the client’s needs and wants while being sustainable and profitable. In this case, it can be argued that green marketing is both altruistic and realistic. This is since it focuses on using the conventional marketing communication strategies for profitability (Realistic) while at the same time ensuring clients satisfaction and sustainable development (Altruistic). Oliver and Lee (2010) identified green marketing as a marketing strategy of imparting knowledge to consumers on the benefits of green products in a manner influencing their behaviours and purchasing decision would be used.
2.2 Green Consumer
For the purpose of understanding the concept of green marketing, it is essential to envisage a green consumer. Young et al. (2010) defined a green consumer as a person indulges in activities of avoiding the use of products endangering the environment. In most instances, the study of a green consumer focuses on consumer behavior which is further categorized into factors impacting green purchase, consumer segments in green marketing and decisions based on willingness to make payments (Jansson et al., 2010; Chen & Chang, 2013; Abeliotis et al., 2010). According to Nath et al. (2013), the consumer knowledge on the environmentally friendly products represent one of the contributing factor influencing their decisions for purchasing green products. In this case, with a focus on Dubai car industry green consumer, it would be possible to deduce how green marketing strategy imparts knowledge to them to influence them in their decision making. To understand the role of green marketing in informing decision making of the consumers, Maslow’s Hierarchy of Needs model can be used. According to McLeod (2007), the model is comprised of hierarchical levels classified into physiological safety…………………………………………………………………………………………………………………………………………. Please contact us to receive support, guidance and tutorial services on this assessment and questionnaire based on your company background and expectation levels
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