An Empirical Study on Eco-Labeling to Promote Ethical ...

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Brindavan Journal of Management and Computer Science Brindavan Research Journal Volume 1, Issue 1, December 2020, 194 E- ISSN 2582-7251 Brindavan Journal of Management and Computer Science National Conference Proceedings- December 2020 Volume 1, Issue 1, December 2020 An Empirical Study on Eco-Labeling to Promote Ethical Consumerism in Bangalore Mr. Angel Chakraborty 1 , Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering. Mrs. Sneha Singh 2 , Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering. Dr. Mahammad Rafee 3 , Associate Professor, PG Dept. of Commerce & Management Studies, Brindavan College. Mrs. Bhanupriya N 4 , Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering. Brindavan Research Journal Volume 1, Issue 1, December 2020

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Brindavan Journal of Management and Computer Science

Brindavan Research Journal Volume 1, Issue 1, December 2020, 194

E- ISSN 2582-7251

Brindavan Journal of Management and Computer Science

National Conference Proceedings- December 2020

Volume 1, Issue 1, December 2020

An Empirical Study on Eco-Labeling to Promote Ethical Consumerism in Bangalore

Mr. Angel Chakraborty1, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Mrs. Sneha Singh2, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Dr. Mahammad Rafee3, Associate Professor, PG Dept. of Commerce & Management Studies, Brindavan College.

Mrs. Bhanupriya N4, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Brindavan Research Journal Volume 1, Issue 1, December 2020

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Brindavan Journal of Management and Computer Science

Brindavan Research Journal Volume 1, Issue 1, December 2020,

An Empirical Study on Eco-Labeling to Promote Ethical Consumerism in Bangalore

Mr. Angel Chakraborty1, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Mrs. Sneha Singh2, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Dr. Mahammad Rafee3, Associate Professor, PG Dept. of Commerce & Management Studies, Brindavan College.

Mrs. Bhanupriya N4, Assistant Professor, Dept. of Management Studies, Brindavan College of Engineering.

Abstract: Every time you spend money, you’re casting a vote for the kind of world you want - Anna Lappe. As

Consumers it’s our duty to protect the environment and support others who believe in practicing ethical consumerism

for a more sustainable lifestyle. Thus, Eco-Labeling becomes very vital to educate the consumers that the products

conform to recognized environmental standards. The objectives of the research are to promote ethical consumerism

and know the importance of Eco-Labeling in consumer purchase decisions. Also, it aims to find the consumer’s

environmental concerns. The study is descriptive, inferential and based on primary data. Data is collected via framed

questionnaire, focused group interviews and observations. Convenience sampling is going to be used to collect the

data from 384 samples. The study is intended to find whether consumers are willing to pay extra for ecological

balance and environment protection or not. Eco-labeling added a new dimension towards identifying green products

and manufactures fulfilling environment related standards which impacted consumer purchase behavior significantly.

This study will help recognize the benefits of eco-labeling and challenges associated with it. The study concludes that

35.7% people believe Eco- Labeling is necessary for ethical consumerism although study revealed Over 35% of

consumers claim that they pay attention to the social and environmental records of companies whose products they

buy, and the market share hovers around 3%. From the sample size of the 384 respondents 138 agree to understand

the information for eco-friendly products and they have knowledge of existence of Eco-Labeling. Also, out of the 384

respondents 71 are strongly agreeing to pay a premium price for eco- friendly products and they have knowledge of

existence of Eco-Labeling. Out of the 384 respondents 134 strongly agree to not support environmentally

irresponsible companies and make special effort to buy recycled products. The reliability statistics proves consistency

in results up to 96.6%.

Keywords: Eco-Labeling, Ethical Consumerism, Environment protection, Green products,

Green Marketing, Sustainable development.

* Names of authors are listed alphabetically.

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1. INTRODUCTION Eco-Labels are a significant market-based instrument to impact the conduct of shoppers and businesses for

naturally inviting items and in this manner add to ecological preservation. Around the globe, Eco- Labels are

turning into a significant expansion to the tool-kits of condition controllers. Both universal associations, for

example, the Global Eco-Labeling Network (a non-benefit propensities to improve this world a better place).

1.1 The Ethical Consumer

What is the meaning of ethical consumerism? The ethical consumer settles on shopping decisions educated

by the states of creation, regardless of whether work rehearses or ecological effects. A more costly electric

vehicle over a diesel guzzler would be the moral decision. So additionally eggs from unfenced hens over

manufacturing plant cultivated and confined poultry. Comprehensively, ethical consumers both effectively

search out items that fulfill guidelines and reject those that don't.

The quantity of ethical consumers in India remains too little to even consider being appropriately tallied.

However, considers show that Indian shoppers are open to thoughts of socially dependable utilization. In

fact, from khadi to 'Ahimsa silk', ethical utilization has been imperative to Indian customers at any rate since

the Swadeshi development. The developing business sector for natural and dependably sourced

nourishments may likewise offer a hint to the ascent of this fragment. Such buyers may needs wellbeing as

opposed to moral concerns, however.

1.2 Background of the Study

The primary targets for the Eco-Label Scheme are, to give a motivating force to makers and

shippers to help diminish unfavorable ecological effect of items. Likewise, reward authentic

activities by organizations and help purchasers to turn out to be ecologically capable in their

everyday lives. The goal is to make mindfulness about characteristic assets, natural items and

different creation frameworks to decrease the measure of waste delivered. One can likewise buy

items made of biodegradable materials to help customers to turn out to be ecologically well

disposed.

Shopper Study uncovered that while 88% customers accept they should improve a commitment to

a situation, 85% purchasers would change their preferred brands and way of life habits to improve

this world a better spot.

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Condition insurance bested the rundown of needs among 92% purchasers as indicated by late

overview. This isn't to imply that that no buyers are happy to pay a green premium. Despite the fact

that they accept green items are costlier than others, a greater part of Indians (78%), Chinese

(73%), and Brazilians (73%) are happy to get them, as indicated by a 2009 Green Brands study.

The inclination for green items is observable even in first-class, optimistic items like vehicles. While

33% of potential purchasers would choose a green vehicle than a fantasy vehicle in India, one out of

seven inclines toward a fantasy vehicle to be a green vehicle.

It is accepted that eco marking will positively affect the expected purchasers. Various nations have

presented eco-names for items. There are three principle classifications of Eco-Friendly items that

one can buy. The first are items produced using reused materials. These items are advantageous in

two different ways i.e, it assists with diminishing information sources (vitality and crude materials)

for creation and furthermore lessen the wastage for removal.

These items can separate, securely and moderately rapidly, by organic methods, into the crude

materials of nature and vanish into the earth. One of the most famous items being utilized is corn.

Another option is to purchase items to ration nature along these lines improve the nature of the

earth. By utilizing maintainable administration of assets we can contribute our bit towards a

cleaner and safe condition.

Labels on items give data to a customer to settle on decisions. Sustainability labels are an

advertising method for advising purchasers that an organization has occupied with a procedure to

ensure the earth. In promoting these eco-items, it needs to announce the message either through

images or claims on names with respect to the kind of natural advantages that the item brings to the

table. There are various manners by which showcasing can show the ecological advantages of items

through item claims, for example, the item being "eco-accommodating", "naturally sheltered",

"recyclable", "biodegradable" and "ozone-accommodating" . On the off chance that buyers

comprehend the significance of these natural qualities, at that point they might be eager to address

a greater expense for the item.

The most elevated results were accomplished through green showcasing division that joined

utilitarian qualities with enthusiastic advantages. This investigation, in any case, didn't distinguish

the properties of the items that can add to positive feelings toward the earth. The outcomes are

pertinent for promoting the item and not for structuring the item to evoke positive feelings from the

purchasers.

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The first chapter provides theoretical and background knowledge about eco-labeling and ethical

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consumerism followed by second chapter which describes the review of literature and helps to

understand the gap in literature review. The third chapter outlines the methodology of the study.

The fourth chapter focuses on data analysis and interpretation followed by fifth chapter on findings

and conclusion.

2. Review of Literature

Angel Chakraborty et.al (2020) studied and investigated consumer responses towards the green

marketing concepts, its applicability and essential marketing mix with special reference to

Bengaluru. The study was based on primary data collected through survey to understand the belief

system prevailing in Bengaluru with respect to purchase intentions. The study revealed consumers

inclination towards better green practices and awareness about sustainable development to

embrace digital commerce and industrial revolution in Bengaluru.

R.Balaji (2014) examined the improvement of worldwide condition through green promoting

utilizing its chances and difficulties. Have been examined the ideas like buyer obliviousness, Eco-

names and absence of normalization, talked about scarcely any contextual analyses on green

marketing. He presumes that the perspective on the customer is noteworthy to comprehend the

idea and not in fantasy purchasers are cognizant and delicate towards green items.

Mamta Goyal (2015) had watched the odds and troubles in green marketing in the Indian point of

view. The objective of his work was to look at the chances and difficulties, measures taken by the

legislature in such manner and the examination reasons that there will be radical changes in

exchange and trade over the world, in the event that it is executed carefully. Green advertising

presumes that end clients "Think Green, Think Eco-accommodating" for example they need a

cleaner circumstance and are anxious to "Pay" for it, possibly through more exorbitant product,

adjusted individual lifestyles, or even Government intervention.

Polonsky et.al (1994) examined the degree and importance of the association among business and

the earth, and an audit of the snares and abuses. This paper endeavored to introduce the

arrangements and thoughts of ecological promoting and to perceive how it is getting ecologically

practical. It has dissected a segment of the clarification that connections are getting an Eco- friendly

disposed thinking. The learning depended on both essential and auxiliary information alongside

contextual investigations to perceive the centrality, impact of green marketing and wellsprings of

issues. Critical disclosures of this examination was that it makes the instinct that buyers are not

significantly dedicated to improving their condition and might be intending to lay a lot of

commitment on business and organization. An ecological submitted connection may not

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just make things that have diminished their destroying sway on the earth; they may comparatively

have the decision to compel their providers to carry on in a much more ordinarily "cautious" plan.

Last purchasers and mechanical purchasers besides can oblige relationship to meld the earth into

their corporate culture and right now all affiliations limit the upsetting normal effect of their

exercises.

Ajeet Verma (2015) showed the World-wide evidence how people are getting stressed over the

earth and are changing their lead as requirements be. Along these lines, there is a creating business

segment for practical and socially able things and organizations. The objective of this paper was to

introduce the terms and thoughts of Eco-Labeling and to find reasons why affiliations are grasping a

green advancing hypothesis and its issues. The investigation depended on optional information and

contextual investigations. An experimental investigation is directed wherein the segments of Eco-

Labeling blend is concentrated according to Indian purchaser points of view, to recognize and

separate the parts of green washing utilizing pilot study, self- managed poll and perception

strategies for gathering the essential information and perform examination utilizing factual devices

like SPSS. The optional information is gathered through different diaries, articles, contextual

investigations, papers and web sources. Not many Indian commercials were watched and

deciphered by arbitrary members to contemplate green advertising blend. Likert scale strategy is

utilized in survey and through convenience examining the poll was filled. Percentage analysis, F-test

and ANNOVA Test were done to contemplate the green marketing blend and its relationship with

Indian purchasers. The significant discoveries proposed Eco-Labeling is about principal change in

the open field that joins customers, creators and the overall business structure inside which they

orchestrate. It will prompt monetary blast for all the applicable entertainers of market. In view of

the analysis, recommendations and conclusions were accommodated for future exploration.

Jaya Tiwari(2016) examined the Eco-Labeling initiatives in India and says changing purchaser

conduct on green items and their mindfulness will be noteworthy to diminish harm to the earth,

which has given the associations adequate motivations to exploit different business openings and

advance green products. Along these lines, the objective of the assessment is to adjust Green

promoting, its significance and difficulties. The examination received exploratory examination

approach utilizing optional information and writing audit. The examination presumes that the

origination of Eco-Labeling is in beginning phase and open are set up to follow through on premium

cost for Eco-friendly products on the assumption that they are less influencing the earth. Thus there

is a necessity for Eco promoting and a prerequisite for a move in the buyer's lead and mien towards

more prominent condition and big-hearted lifestyles.

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Shaheed Sukhdev (2014) perceived three explicit pieces of green buyers and researches the

troubles and openings associations have with Eco-Labeling and advancements. The paper audits the

current instances of Eco-Labeling in India and portrays the motivation driving why affiliations are

getting a handle on it and conceivable predetermination of green marketing. The paper relied upon

sensible examination of cases related to overall examples of Ecological progress across various

countries. Basic disclosures joins Eco-Labeling is essential to spare world from contamination, how

clients can be secured with displaying. It should not to be considered as a singular estimation rather

it has an ecological and cultural measurement to it. Reusing of paper, metals, plastics, and so forth

in a safe and naturally harmless manner should wind up being extensively more arranged and

complete. It needs to change into the overall norm to utilize vitality capable lights and other

electrical item. Advertisers comparatively have the duty to make the customers understand the

essential for and focal points of green things when stood apart from non green ones. Moreover, how

buyers are on edge to pay more to keep up a cleaner and greener condition.

Pavan Kumar P S (2017) inspected why Eco-Labeling bolsters a wide degree of exercises,

including product adjustment, changes to the creation strategy, packaging changes, and altering

publicizing. This paper centers to research the degree of perception of Indian buyers about green

items and practices, likewise measures the ecological assessments of the customers to perceive the

brands, customer join forces with green exhibiting practices. The examination investigates the

tendencies of Indian purchasers about Eco-Products to recognize the parts that impacts the

customer inclination to buy Eco-friendly products and to appreciate the issues and troubles of

green marketing practices. It was a study based exploration where convenience sampling was used

to amass the essential information close by auxiliary information from different diaries, articles and

so on. Vital Findings merge respondents checked on pondered the green items and practices. At any

rate the majority of the respondents didn't consider the activities taken for impelling green

propelling practices by focal/state government, NGOs and business houses in India recommending

essential for better publicizing correspondence from these substances and need to unequivocally

provide for the clients about their green activities. News Paper and Television were seen as the

most referred to wellsprings of data concerning green products to the buyers. The examination

derives that Green marketing ought not to be considered as only a solitary extra way to deal with

oversee advancing, rather ought to be searched for after with progressively basic significance as it

has social and customary estimations. At long last, buyers, present day purchasers and providers

need to brace the endeavors to confine the negative impacts of nature, inviting and promoting for

Eco-labeling expecting astonishingly greater centrality and

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significance in developing nations like India. This evaluation wraps up with a call to different parts

other than vehicle division in addition to search for Eco-friendly genuine activities to help extended

length improvement in the economy.

Devakumar G et.al (2016) investigated the Eco-friendly technique for achieving high ground in

business condition. Test assessment is driven on green publicizing strategies for common items.

The goal was to find the association between various advancing marketing mix strategies and their

impact on displaying legitimacy. Data were used to discover results, where it demonstrates that it

should be remembered for the web and web based systems for network progression to construct

care and arrangement of pull in the commercial center, which is vital for making mass care on the

use of green items. The key disclosures of the assessment reflects purchasers have a strong

inspiring aura towards Green Marketing, Consumers are logically aware of characteristic issues,

Consumers agreed that in future more buyers would support common items and Majority of

purchasers imparted that distinctive regular items on the racks of the store is barely inconvenient.

2.1 Gap in Review of Literature

The preliminary literature review uncovered that ecological data qualities that Influences intuitive

responsiveness had not yet been attempted in past investigates. Beside this, the enthusiastic

emotional connection in the pre-buy setting of green items had not yet been investigated.

2.2 Objectives of the Study

1. To promote ethical consumerism and know the importance of Eco-Labeling in

consumer purchase decisions.

2. To find the consumer’s environmental concerns.

3. To find whether consumers are willing to pay extra for ecological

balance and environment protection.

3. Research Methodology

An empirical study is conducted using primary data wherein the components of Eco-Labeling are

studied as per Indian consumer perspectives with reference to Bangalore. The learning is intended

to differentiate the aspects of Eco-Labeling practices, using Eco-Labels, purchase behavior of

consumers and promoting ethical consumerism through pilot study. As per the methodology 384

sample respondents data has been collected and performed analysis using the

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analytical software i.e. SPSS. Likert scale technique is used in questionnaire and through

convenience sampling with 5-7 scales. The questionnaire measured the impact of the Eco- Labeling

belief, price of products, consumer awareness, influencing elements of green products and ethical

consumerism practices etc. Data collection is done using Google forms and analysis carried out

using SPSS. The Percentage analysis, F test and ANNOVA test were done to study the relationship

between Eco-Labels and ethical consumerism in association with purchase behavior and purchase

intention of consumers in Bangalore. Based on the analysis suggestions and conclusions were

provided for future research.

3.1 Research Design This study is descriptive & quantitative in nature. The model shows Eco-Labeling as autonomous

factors which impact ethical consumerism. Other factors as like occupation, age, gender, educational

level are moderating or dependent variables.

Dependent Variables Independent Variables

Green Marketing Elements Consumer intention & Behavior towards Green

Products

a. Eco-Labeling Occupation

b. Price for Green Products Age

c. Consumer awareness Gender

d. Influencing elements of green products Educational level

e. Ethical Consumerism Price

3.2 Hypothesis

H0- There is no considerable connection between knowledge of Eco-labeling of products and

Consumer attitude towards making premium payment.

H0- There is no considerable connection between price of products and Eco-Labeling.

H0- There is no considerable connection between Eco-Labeling and ethical consumerism on

green products

On the basis of the literature review and identification of dependent and independent variables

the above hypotheses are made to do the data analysis.

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4. Data Analysis

Table 4.1: Summary of Demographic variables Demographic variables Percentage

Gender Male 54.0% Female 46.0%

Total 100%

Occupation Student 39.3% Private Employee 39.5% Govt.Employee 9.5% Business 10.5% Others 1.2%

Total 100%

Age Group 15-20 yrs 19.0% 21-25 yrs 33.3% 26-30 13.7% 31-35 15.0% 35 & above 19.0%

Total 100%

Educational level Secondary level 3.0% Under Graduate 20.5% Graduate 22.0% Post Graduate 7.0% Post Graduate & above 47.5%

Total 100%

The result depicts the energy and zeal of individuals about eco-labeled products and their

commitment towards ecological maintainability guided towards their readiness to pay more on the

natural and organic products. Marketing elements, for example, product, package and accessibility

etc., found to be more influential for the consumer choice towards green products. Count of how

they became aware of Eco-Labeled products is through television is 55.5%, news papers 15.0%,

social media 2.0%, magazines 8.0%, class lectures 14.0%.

Count of Eco-friendly factors which influenced to buy Eco-Label promotion stands at 6.5%,

packaging 5.8%, product 26.8%, price 13.3% and all the above is 47.6%. The survey says 21.5% of

people affected by the phenomenon of green washing, 48.9% say not cheated by name of green

products and 29.7% say they are not aware of green washing. 35.7% people believe Eco- Labeling is

necessary for ethical consumerism although study revealed Over 35% of consumers claim that they

pay attention to the social and environmental records of companies whose products they buy. The

market share for ethical products, however, hovers around 3%.

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4.1. INFERENTIAL STATISTICS: TESTING OF HYPOTHESES

4.1.1 Knowledge of Eco-Labeled products (Package and design)

and the attitude of consumers

The following table shows the analysis of knowledge of Eco-Labeled products and the attitude of

consumers wherein Means are computed with standard deviation.

Report

Table 4.2 Green Marketing Practices I have knowledge about Eco- labeling

Consumer Attitude I am

willing to pay a premium

price for an eco-friendly

product

Mean N Std. Deviation

strongly disagree 2.500 18 1.9174

disagree 3.860 43 2.1446

somewhat disagree 3.600 40 1.7365

neutral 5.000 67 1.1415

some what agree 5.270 74 1.1140

agree 5.648 71 1.2433

strongly agree 5.930 71 1.4074

Total 4.953 384 1.7246

The above table gives the comparison of means of both the knowledge of consumers and their

attitude, out of the 384 respondents 71 are strongly agree to pay a premium price for an eco-

friendly products and they have a knowledge of existence of Eco-Labeling.

Table 4.3: ANOVA Table

Sum of

Squares

df Mean

Square

F Sig.

Green Marketing

Practices I have

knowledge about Eco-

labeling * Consumer

Attitude I am willing to

pay a premium price

for an eco-friendly

product

(Combined) 342.454 6 57.076 27.008 .000

Between

Groups

Linearity 308.316 1 308.316 145.895 .000

Deviation from

Linearity

34.138 5 6.828 3.231 .007

Within Groups 796.702 377 2.113

Total

1139.156 383

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The outcomes of the study was as expected where as the knowledge about Eco-Labeling has

significant impact on the consumer attitude .The significant value(P-Value) for all statements is

0.00, which is less than 0.05 which indicates the significance of the statement.Table 4.4: Measures of

Association

R R Squared Eta Eta Squared

Green Marketing Practices I have

knowledge about Eco- labeling *

Consumer Attitude I am willing to pay

a premium price for an eco-

friendly product

.520 .271 .548 .301

As per the measures of association the R-square value says knowledge of Eco-Labeling explain the

consumer attitude up to 27%.

Report

Table 4.5: Green Marketing Practices I have knowledge about Eco-labeling

Consumer Attitude I

understand the information on eco-friendly

products

Mean N Std. Deviation

strongly disagree 1.944 18 1.3921

disagree 2.440 25 1.7578

somewhat disagree 2.833 18 1.2948

neutral 4.904 52 1.0527

some what agree 5.012 85 1.1180

agree 5.674 138 1.3354

strongly agree 6.063 48 1.1743

Total 4.953 384 1.7246

The table gives the comparison of means of both the knowledge of consumers and their attitude,

out of the 384 respondents 138 agree to understand the information for an eco-friendly products

and they have a knowledge of existence of Eco-Labeling.

Table 4.6: ANOVA Table

Sum of

Squares

df Mean

Square

F Sig.

Green Marketing

Practices I have

knowledge about Eco-

labeling * Consumer

Attitude I understand

the information on eco-

friendly products

(Combined) 532.906 6 88.818 55.232 .000

Between

Groups

Linearity 492.282 1 492.282 306.128 .000

Deviation from

Linearity

40.624 5 8.125 5.052 .000

Within Groups 606.250 377 1.608

Total 1139.156 383

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The outcomes of the study was as expected where as the knowledge about Eco-Labeling has

significant impact on the consumer attitude towards understanding about the information on eco-

friendly products .The significant value(P-Value) for all statements is 0.00, which is less than

0.05, which indicates the significance of the statement.

Table 4.7: Measures of Association

R R Squared Eta Eta Squared

Green Marketing Practices I have

knowledge about Eco- labeling *

Consumer Attitude I understand the

information

on eco-friendly products

.657 .432 .684 .468

As per the measures of association the R-square value says knowledge of Eco-Labeling explain

the consumer attitude up to 43%.

4.1.2 CONSUMER ATTITUDE TOWARDS PRICE AND PURCHASE OF ECO-LABEL PRODUCTS

Report

Table 4.8: Consumer Attitude I am willing to pay a premium price for

an eco-friendly product

The table gives the comparison of means of both consumers attitude towards price and purchase

Purchase Intention I buy

green products even if they

are more expensive than

non-green products

Mean N Std. Deviation

strongly disagree 1.955 22 1.3266

disagree 2.351 37 .9194

somewhat disagree 3.345 29 1.1109

neutral 4.206 63 1.3339

some what agree 4.847 72 1.2063

agree 5.409 88 1.0682

strongly agree 6.411 73 1.1647

Total 4.648 384 1.7771

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of Eco-Labeled products, out of the 384 respondents 88 agree to buy green products even if they

are more expensive than non green products and they willing to pay a premium price for an eco-

friendly product.

Table 4.9: ANOVA Table

Sum of

Squares

df Mean

Square

F Sig.

Consumer Attitude I

am willing to pay a

premium price for an

eco-friendly product *

Purchase Intention I

buy green products

even if they are more

expensive than non

green products

(Combined) 697.019 6 116.170 85.452 .000

Between

Groups

Linearity 690.734 1 690.734 508.091 .000

Deviation from

Linearity

6.286 5 1.257 .925 .465

Within Groups 512.520 377 1.359

Total

1209.539 383

The outcomes of the study were as expected where the consumer attitude about price has

significant impact on the consumer purchase intention of green products even if they are

expensive. The significant value (P-Value) for all statements is 0.00, which is less than 0.05 which

indicates the significance of the statement.

Table 4.10: Measures of Association

R R Squared Eta Eta Squared

Consumer Attitude I am willing to pay

a premium price for an eco-friendly

product * Purchase Intention I buy

green product even if they are more

expensive

than non green products

.756 .571 .759 .576

As per the measures of association the R-square value says the consumer attitude towards paying a

premium price for eco-friendly products and purchase intention of consumers explain the

inclination for green products by 57%.

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4.1.3 Purchase behavior of consumers towards Eco-Label

products and ethical consumerism.

Report

Table 4.11: Purchase Behavior I make a special effort to buy

recycled products

The table gives the comparison of means of both consumers purchase behavior towards recycled or Eco-

Friendly products and ethical consumerism, out of the 384 respondents 134 strongly agree to not support

environmentally irresponsible companies and make special effort to buy recycled products.

Table 4.12: ANOVA Table

Sum of

Squares

df Mean

Square

F Sig.

Purchase Behavior I

make a special effort

to buy recycled

product * Purchase

Behavior I will not buy

a product if the

company which sells it

is environmentally

irresponsible

(Combined) 405.176 6 67.529 34.284 .000

Between

Groups

Linearity 397.311 1 397.311 201.713 .000

Deviation from

Linearity

7.865 5 1.573 .799 .551

Within Groups 742.571 377 1.970

Total

1147.747 383

Purchase Behavior I will not

buy a product if the company

which sells it is

environmentally

irresponsible

Mean N Std. Deviation

strongly disagree 2.435 23 2.1283

disagree 2.750 20 1.8317

somewhat disagree 2.885 26 1.1429

neutral 3.857 35 1.0331

some what agree 4.609 46 1.0848

agree 5.040 100 1.3098

strongly agree 5.522 134 1.4701

Total 4.628 384 1.7311

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The outcomes of the study were as expected where the consumer purchase behavior about ethical

consumerism has significant impact on the consumer purchase behavior towards buying recycled products

even if they are expensive. The significant value (P-Value) for all statements is 0.00, which is less than

0.05 which indicates the significance of the statement.

Table 4.13: Measures of Association

R R Squared Eta Eta Squared

Purchase Behavior I make a special

effort to buy recycled product *

Purchase Behavior I will not buy a

product if the company which sells it

is environmentally

irresponsible

.588 .346 .594 .353

As per the measures of association the R-square value says the consumer purchase behavior

towards ignoring environmentally irresponsible companies and consumer special effort to buy

recycled products to promote ethical consumerism explain the inclination for green products by

34.6%.

4.2 RELIABILITY TESTING

To find out the consistency of statements grouped to check the hypothesis, cronbach’s alpha,

Spearnman-Brown coefficient and Guttman Split Half coefficient has been calculated, the reliability

test confirms the statements are having excellent reliability between different items.

Table 4.14: Reliability Statistics

Cronbach's Alpha Cronbach's Alpha Based on

Standardized Items

N of Items

.966 .959 45

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5. FINDINGS AND CONCLUSION

The findings of this study necessitate rejecting the null hypotheses and accepting the alternative

hypotheses. The results validate Eco-Labeling plays a vital role in environment as well as consumer

protection. It was found that there is considerable connection between knowledge of Eco-labeling of

products and Consumer attitude towards making premium payment. There is considerable

connection between price of products and Eco-Labeling which tends to go high. And, there is

considerable connection between Eco-Labeling of products and ethical consumerism as far as

consumer behavior is concerned while selecting and using environmentally responsible companies

which sell products ethically.

35.7% people believe Eco- Labeling is necessary for ethical consumerism although study revealed

Over 35% of consumers claim that they pay attention to the social and environmental records of

companies whose products they buy. From the sample size of the 384 respondents 138 agree to

understand the information for eco-friendly products and they have knowledge of existence of Eco-

Labeling. Also, out of the 384 respondents 71 are strongly agree to pay a premium price for eco-

friendly products and they have knowledge of existence of Eco- Labeling. Out of the 384

respondents 134 strongly agree to not support environmentally irresponsible companies and make

special effort to buy recycled products. The reliability statistics proves consistency in results up to

96.6%.

It considers and further approves comprehension of green advertising and the person's

consciousness of environmental merchandise (package and plan of eco-friendly disposed items) has

a huge relationship according to the investigation. On the other hand, end clients outlook towards

addressing an exceptional cost for eco-cordial merchandise and buying objectives to follow through

on more cost than non-green items was found significant. Information on eco- mark items and

unique endeavors to purchase merchandise that are produced using utilized material. Additionally,

ecological effect of person's activities and changing utilization design for natural reasons found to

huge. At last person's obligation towards the earth and endeavors of the person's to diminish the

use of plastic has a critical relationship.

An enquiry on chosen factors highlighting the importance of ecological conviction shows critical

effect on the buy goal of the end clients. The package and configuration includes another aspect in

the advertising of green items which finds a critical effect on shopper conduct and buy goal. People

are naturally capable and putting forth earnest attempts to diminish the use of plastic.

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