Thesis-cindyeffects of Green Marketing Nu

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ATTITUDES TOWARDS GREEN MARKETING AND THEIR EFFECTS ON CONSUMER INTENTIONS AND BEHAVIORS A Thesis Presented to The Faculty of the College of Business Administration Trinity University of Asia Quezon City, Philippines In Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Business Administration Major in: Marketing Management CINDY T. VILLAFLOR DOM ALAFRIZ

Transcript of Thesis-cindyeffects of Green Marketing Nu

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ATTITUDES TOWARDS GREEN MARKETING AND THEIR EFFECTS ON CONSUMER INTENTIONS AND BEHAVIORS

A Thesis Presented toThe Faculty of the College of Business Administration

Trinity University of AsiaQuezon City, Philippines

In Partial Fulfillment of theRequirements for the Degree of

Bachelor of Science in Business AdministrationMajor in: Marketing Management

CINDY T. VILLAFLOR

DOM ALAFRIZ

JOHN PAUL UNGOS

VINCENT PEDENES

February 2011

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APPROVAL SHEET

In partial fulfillment of the requirements for the degree of Bachelor of Science in

Business Administration. This research paper entitled, “ATTITUDES TOWARDS

GREEN MARKETING AND THEIR EFFECTS ON CONSUMER INTENTIONS

AND BEHAVIORS” has been prepared and submitted CINDY T. VILLAFLOR,

DOM ALAFRIZ, JOHN PAUL UNGOS and VINCENT PEDENES, who are hereby

recommended for oral examination.

Research Instructor

Approved in partial fulfillment of the requirements for the Degree of Bachelor of

Science in Business Administration by the Oral Examination Committee.

DR. RODELIO L. BATHAN Dean, College of Business Administration

___________________ __________________ Panelist Panelist

Accepted partial fulfillment of the requirements for the subject Research Paper

Writing.

_____________ DR. RODELIO L. BATHAN  DATE Dean, College of Business Administration

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ACKNOWLEDGEMENTS

There is not a more pleasing exercise of the mind than gratitude.  Thus, the

researchers take the greatest pleasure in conveying deep thanks to the following

individuals who helped make the completion of this work possible:

To Dr. Rodelio L. Bathan, Dean of the College of Business Administration, thank

you for enriching the study of business and marketing with enlightened leadership.

To _________________, research adviser, thank you very much for providing a

wealth of guidance and inspiration.

To members of the distinguished panel, thank you for benefiting the researcher

swith insight and experience.

To our dear parents who taught the researchers the value of a good education,

and siblings who have been a source of constant encouragement.

To the fellow students, for generously sharing their time and energy in answering

the questionnaires.

To the Almighty God, thank you very much for everything Thy goodness sends.

- Cindy, Dom , John Paul and Vincent

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DEDICATION

We would like to dedicate this work to our Almighty God

for the blessings, wisdom, strength and guidance;

To our families, classmates and friends:

there is no doubt in our minds

that without your continued support and counsel,

we could not have completed this process.

- Cindy, Dom , John Paul and Vincent

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TABLE OF CONTENTS

Preliminaries Page

APPROVAL SHEET . . . . . i ACKNOWLEDGEMENTS . . . . . iiDEDICATION . . . . . iiiTABLE OF CONTENTS . . . . . ivLIST OF TABLES . . . . . viLIST OF FIGURES . . . . . viiABSTRACT . . . . . viii

Chapter

I. THE PROBLEM AND ITS BACKGROUND 1.1   Introduction 1.2   Background of the Problem 1.3   Theoretical/Conceptual Framework 1.4   Statement of the Problem (Research Hypotheses)1.5   Significance of the Study1.6   Scope and Delimitation1.7   Definition of Terms II.         REVIEW OF RELATED LITERATURE AND  STUDIES 2.1   Local literature2.2   Foreign literature2.3   Local Studies2.4   Foreign Studies2.5   Relevance to the present study III.        METHODOLOGY 3.1   Research Design3.2   Population, Sample and Sampling Techniques3.3   Research Instruments3.4   Data Gathering Procedure3.5   Statistical Treatment of Data  IV.     PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA      V. SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATIONS

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                  5.1 Summary5.2 Summary of Findings5.3 Conclusions 5.4 Recommendations

 BIBLIOGRAPHYAPPENDICESCURRICULUM VITAE OF THE RESEARCHERS

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LIST OF TABLES

Table Page

1 Demographic Profile of Respondents . . . .

2

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LIST OF FIGURE

Figure Page

1

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ABSTRACT

VILLAFLOR, CINDY T., ALAFRIZ, DOM, UNGOS JOHN PAUL and PEDENES, VINCENT. Trinity University of Asia at Quezon City, Philippines, 2011. Attitudes Towards Green Marketing and Their Effects on Consumer Intentions and Behaviors.

This study evaluated how green marketing influences consumer behavior; and the researchers took note of consumers who were more proactive with their environmental beliefs.

The results of this study will be used to provide a modern, reliable scale academic researchers and business practitioners can use to assess their "green" advertising strategies in conjunction with the environmental makeup of their customers.

Data for this study were collected from 50 selected college students of the Trinity University of Asia in Quezon City. The self-devised instrument used in this study was guided by the Theory of Planned Behavior (Ajzen, 1985) for developing improved measures of marketing.

Overall, the respondents of this study possessed strong beliefs about the environment and had a high level of environmental awareness. Strongest convictions about the environment were exhibited in the respondents’ personal everyday thoughts on the environment and in terms of environmental awareness and responsibility.

However, while environmental awareness was high, the respondents were reluctant to take responsibility for environmental concerns.

]The respondents of this study had very strong positive attitudes toward green

marketing, indicating that green marketing can, therefore, be seen as a potential source of competitive advantage, not just in niche market strategy but as an integral component of overall organizational or mainstream market approach.

From the summary of findings, the researchers have concluded that respondents who have stronger environmental beliefs and are more proactive with their environmental behaviors also have better attitudes toward green advertising. The results imply that green advertising may be best at reaching those who are already practicing green behaviors.

This study also found that consumers are willing to switch to, and pay more for, products and services advertised as green. A scale for future study of these issues was developed and is recommended to both academics and practitioners in studying consumer responses to green marketing efforts and the resulting consumer behaviors.

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Chapter I

THE PROBLEM AND ITS BACKGROUND

 

1.1. Introduction

In this study, the notion that green marketing influences consumer behavior was

explored; and the researchers took note of consumers who were more proactive with

their environmental beliefs.

Many terms describe the relationship between marketing, the public policy

process and the natural environment: ecological marketing (Henion & Kinnear, 1976),

environmental marketing (Coddington, 1993), green marketing (Peattie, 1995),

sustainable marketing (Fuller, 1999) and greener marketing (Charter & Polonsky, 2007).

Although the concept of marketing is more expansive, this paper uses the term

green marketing to refer to the strategies to promote products by employing

environmental claims either about their attributes or about the systems, policies and

processes of the firms that manufacture or sell them (Menon & Menon, 2006). Along

with manipulating the traditional marketing mix (product, price, place and promotion), it

requires an understanding of public policy processes. Green marketing also ties closely

with issues of industrial ecology and environmental sustainability such as extended

producers’ liability, life-cycle analysis, material use and resource flows, and eco-

efficiency (Peattie, 1995). Thus, the subject of green marketing is vast, having important

implications for business strategy and public policy.

Consumer concerns about the environment have been on the increase in recent

years (Chitra, 2007). With the increasing number of “green” customers, businesses

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attempt to understand and respond to external pressures to improve their environmental

performance (Chen, 2008). The green movement has so much momentum that the term

“going green” had 15.6 million hits on Google in January 2008 (Erdman, 2008) and 31

million hits just over two months later. Marketing practitioners and academics attempt to

identify and understand green consumers and their needs, and to develop market

offerings that meet these needs (D’Souza e.t al, 2007).

While green marketing efforts continue to grow, marketers do not have adequate

tools for evaluating the success of green advertising, nor do they have sufficient tools for

determining consumers’ environmental attitudes, intentions, and behaviors. Additionally,

there is little consensus about the identity and nature of green consumers (Peattie, 2005).

Previous research into consumers’ attitudes toward green advertising and the

environment has concluded with different results over time. Much of the work in this area

developed in the 1970s. Therefore, it is likely that surveys developed a long time ago

may no longer be valid for measuring consumers' attitudes, intentions, and behaviors,

given the societal and legal changes that have occurred since the 1970s (Matulich,

Haytko & Austin, 1999).

The researchers’ interest in this field of study has thus been encouraged by the

observation that previous work may need to be revalidated in order to understand changes

in consumer perceptions of green advertising and environmentally responsible consumer

behaviors.

In this study, the researchers seek to undertake a modified approach to prior

research undertaken to measure consumer attitudes toward green marketing and

environmental attitudes. Therefore, the purpose of this research is to provide a modern,

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reliable scale that academic researchers and business practitioners can use to assess their

"green" advertising strategies in conjunction with the environmental makeup of their

customers.

1.2 .  Background of the Problem

At the beginning of the twenty-first century, the social and environmental

consequences of the unquestioning pursuit of economic growth have become increasingly

clear. Increasing levels of greenhouse gasses in the atmosphere, a hole in the ozone layer,

widespread destruction of the rain forests, and a growing list of endangered species and

ecosystems are just a few of the indicators that all is not well. For the new century, the

key challenge for mankind is to find more sustainable and equitable ways to produce,

consume and live.

For marketing, the challenge is two-fold. In the short term, ecological and social

issues have become significant external influences on companies and the markets within

which they operate. Companies are having to react to changing customer needs, new

regulations and a new social spirit which reflects increasing concern about the socio-

environmental impacts of business. In the longer term, the pursuit of sustainability will

demand fundamental changes to the management paradigm which underpins marketing

and the other business functions (D’Souza et. al., 2007).

Since the 1960s, environmental issues have gained importance in business

as well as public policy discourses. Recent polls report that 87% of U.S. adults are

concerned about the condition of the natural environment (Phillips, 2005), 80% believe

that protecting the environment will require major changes in current life-styles (Ottman,

2006) and 75% consider themselves to be environmentalists (Osterhus, 2007).

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Not surprisingly then, some scholars believe that consumers are willing to pay

premiums for green products because consumers often prioritize green attributes over

traditional product attributes such as price and quality (Phillips, 2005).

However, the caveat is that such claims and attitudes may not always translate

into actual behaviors. One reason could be the social pressures to be ‘green’ (Ritchie &

McDougall, 2005). Consequently, notwithstanding the claims about the concern for the

natural environment, mass consumer markets for green products in most categories have

yet to develop.

Some scholars claim that green policies/products are profitable: green policies can

reduce costs; green firms can shape future regulations and reap first-mover advantages

(Porter & van der Linde, 2005). However, this does not seem to be the norm within and

across most industries. Many believe that green policies are expensive, especially after

the initial gains – the ‘low hanging fruit’ – in reducing end-of-the-pipe pollution have

been harvested (Walley and Whitehead, 2004). As a result, firms often need to charge

premium prices for green products. Of course, if green products were cheaper than other

products, their premium pricing would be less of an issue for consumers.

The purpose of this thesis is to develop a consumer response framework to green

marketing, taking into consideration a range of moderating factors. This will afford

businesses as well as public policy makers a coherent understanding of consumer

preferences of various green marketing approaches, and present a possible approach to

the introduction of product offerings that are perceived by consumers as more

environmentally preferable. The aim is not to describe the “greenest” product, but rather

to elicit an understanding of green preferences

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This study has been aided by previous research into consumer attitudes toward

green marketing which have been very comprehensive and have addressed some of the

same concepts studied in the present research.

1.3.   Conceptual Framework

Explaining and predicting human behavior in all its complexity is a difficult task

(Ajzen, 1991). The Theory of Planned Behavior (Ajzen, 1985) is one of the most

frequently used models designed to predict and explain human behavior in specific

contexts. It also useful in predicting consumers’ behavior (Chen et al., 2006). The

Theory of Planned Behavior adds the construct of perceived behavioral control to the

framework. This was necessary to overcome other model’s limitations in dealing with

behaviors over which people have incomplete volitional control” (Ajzen, 1991, p. 181).

For the purpose of this paper, the Theory of Planned Behavior provides a more

appropriate framework as income, and hence, disposable income for paying for green

goods is a perceived behavioral control and believed to be an important influence on

consumers’ behaviors. This is confirmed by Chan and Lau (2002) who provided

empirical support through the examination of green purchasing behavior of American and

Chinese consumers.

Thus, a conceptual model for the present study is proposed. This proposed model

includes demographic characteristics, such as gender, age, education, and income, as

explanatory variables as well as attitudes, perceived behavioral control, and intention.

The relationships between these constructs are illustrated in Figure 1.

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Figure 1. Research Paradigm: Effects of Attitudes Towards Green Marketing on Consumer Intentions and Behaviors

In conceptualizing the study, the researcher has attempted to build relationships

between key variables of attitudes toward green marketing (independent variables) and

customer intentions and behaviors (dependent variable). Those relationships can be

varied according to the demographic variables and environmental beliefs. Therefore,

demographic factors and environmental beliefs are considered as intervening variables in

the conceptual framework.

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ATTITUDES TOWARD

GREEN MARKETING

CONSUMER DEMOGRAPHICS

(Gender, Age, Education, Income)

ENVIRONMENTAL BELIEFS

CONSUMER INTENTIONS

AND BEHAVIORS

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1.4.   Statement of the Problem

This study, which focused on consumer attitudes toward green marketing and

their effects on consumer intentions and behaviors, sought to answer the following

questions:

1. What is the demographic profile of the respondents in terms of:

a) gender

b) age

d) education

e) income

2. What environmental beliefs do respondents possess?

3. What are the attitudes of respondents toward green marketing?

4. What consumer intentions and behaviors do respondents perceive in themselves in

relation to green marketing?

5. Is there a significant difference in the self-perceived environmental beliefs of

respondents, when they are grouped according to their demographic profile?

6. Is there a significant difference in the self-perceived attitudes of respondents

toward green marketing, when they are grouped according to their environmental

beliefs?

7. Is there a significant difference in the self-perceived consumer intentions and

behaviors of respondents, when they are grouped according to their attitudes

toward green marketing?

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Hypotheses

This study will thus be guided by the following hypotheses:

1. There is no significant difference in the self-perceived environmental beliefs of

respondents, when they are grouped according to their demographic profile.

2. There is no significant difference in the self-perceived attitudes of respondents

toward green marketing, when they are grouped according to their

environmental beliefs.

3. There is no significant difference in the self-perceived consumer intentions and

behaviors of respondents, when they are grouped according to their attitudes

toward green marketing.

1.5.   Significance of the Study

The researcher expects this study to contribute to the following sectors:

To consumers, this study will increase awareness of the benefits that may be

derived from green marketing and the principles of sustainable economic

practices.

To marketing pactitioners, this study will provide marketers with tools for

evaluating the success of green marketing, as well as methods for determining

consumers’ environmental attitudes, intentions, and behaviors.

To business and government leaders, the findings of the study will grant to

businesses as well as public policy makers a coherent understanding of consumer

preferences of various green marketing approaches.

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1.6.   Scope and Delimitation

This study examined the effects of attitudes toward green marketing on

consumer behavior and intentions. It was conducted among 50 selected college students

of the Trinity University of Asia in Quezon City. All students currently enrolled in the

university as regular students were considered as potential participants of the study.

The current study utilized students as the sample, with a relatively homogeneous

age group and income level. Therefore, the results may or may not be comparable to

previous research studies, given the makeup of a student population.

Additionally, a limitation of the study is the small sample size. As a result, the

conclusions reached in this study may not necessarily apply beyond its scope.

1.7.   Definition of Terms

The following terms have been defined operationally and conceptually to

facilitate understanding of this study:

Attitude- in this study, refers to a state of mind or a feeling; disposition

towards green marketing

Consumer Intention- means the likelihood that a consumer will prefer or

buy a particular product resulting from the interaction of his or her need for it,

attitude towards it and perceptions of it and of the company which produces it.

Consumer Behavior- in marketing, is understanding how and why

consumers behave. An appropriate marketing stimulus is formulated based on

customer personality and needs to prompt sales. Consumers adjust behavior to the

marketplace based on internal needs and interpersonal factors.

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Green Marketing- refers to the business practice that considers consumers

concerns with regards to preservation and conservation of the natural environment

(Coddington, 1993). It also deals with fair trade of socio-economical benefits as

well as environmental responsibilities through the green business.

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Chapter II

REVIEW OF RELATED LITERATURE AND  STUDIES

Business literature was reviewed for information relevant to green marketing,

consumer intentions and preferences as well as environmental awareness. A discussion

of literature reviews, informational articles or publications, research papers, studies and

dissertations are presented in this chapter. 

2.1   Local Literature

Green marketing, also called eco- or environmental marketing, addresses the

needs of consumers with raised consciousness on how their consumptive behavior can

affect the environment and use of natural resources. Thus eco-marketers and

entrepreneurs develop products and services responsive to the needs of eco-consumers

while making certain that these have minimal or no contribution to environmental

degradation (Suplico, 2005).

Green marketing is unlike conventional marketing and is no mere lip service to

environmental issues nor is it just a short-term campaign on environmental preservation.

Products are designed green. Green marketers offer green consumers the option to choose

products designed to be green from the time these were concepts to acquisition of raw

materials and production, usage and packaging, even after-use and disposal. For example,

green products most likely use and re-use renewable, sustainable, recyclable resources

and materials; consume energy efficiently; do not or minimally emit toxic wastes in air,

land and water when compared with existing options, etc. (Tan, 2005)

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Environment-friendly Toyota Prius is the first mass-produced hybrid designed

gasoline and/or electric power automobile, introduced in Japan in 1997 and worldwide in

2001. The United States Environmental Protection Agency has lauded the 2008 Prius as

the most fuel-efficient car sold in the US. Priced at nearly $25,000, the Prius shuts down

the gasoline engine and runs on battery pack at low speeds, when not running, during

reverse movements, and at descending speed thus, decreasing fuel consumption (De Asis,

2008).

Naturescast is an innovative line of earth-friendly home and architectural products

made from nature’s scraps. Handcrafted using agro-forest wastes such as fallen twigs,

dried leaves and barks. Naturescast is biodegradable and renewable and owns patents

across Europe, US and Asia.

A pioneering concept of Filipino eco-entrepreneurs and environmental advocates

Pete and Catherine Delantar, Naturescast green home furnishings including tables and

furniture, lightings, shelves and wall art, decorative accessories, etc. are carried in Europe

and the United States by exclusive retailers like Smith & Hawken, American Signature,

Villeroy & Boch AG in Germany, Neiman Marcus and Crate & Barrel in the US,

Antonio D’ Erasmo of Italy, Nieukoop, to name a few (De Asis, 2008).

Another display of Filipino ingenuity in green products comes from the

underprivileged women of Quezon City who are under the auspices of the BH (Bagong

Henerasyon) Foundation, a nonprofit organization with deep commitment for women

empowerment and environmental sustainability, managed by Councilor Bernadette

Herrera-Dy and recently awarded the National Kabalikat Recognition by the Technical

Education and Skills Development Authority.

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The women under the BH Foundation make fashion bags recycled from unsold

newspapers and magazines. The bags have made their way to parts of Asia and Europe

and have become a source of sustainable livelihood and development for these women

(De Asis, 2008).

Gone are the days when eco-marketing campaigns resorted to fear, threatening

and pessimistic tactics. Eco-marketing today is grounded on informed choices. For

instance, third party certifications from reputable green bodies help provide consumers an

assurance of the product’s green integrity.

There are worldwide eco-seals and country-issued seals. Whichever eco-seal is

used, eco-marketers must ensure that the certifying body or organization is recognized

and respected by environmentalists. With the seal comes the obligation to educate

consumers in which criteria or measure was the seal extended (Suplico, 2005).

One of the first Filipino-designed products to obtain an eco-seal from Australia is

the organic and natural food supplement ABW Leaves of Life made from Alfalfa, barley

and wheatgrass. Organic eco-seals are given to food produced by farmers without using

traditional pesticides, fertilizers, radiation and observe conservation of soil and water.

Organically grown in Australia and certified by the NASAA (National Association for

Sustainable Agriculture Australia), ABW Leaves of Life is an antioxidant and internal

anti-aging food supplement that neutralizes damaging free radicals to the body’s internal

organs resulting from the lifestyle and food one takes; while increasing energy during the

day and providing deep sound sleep at night(De Asis, 2008).

The eco-labeling Program of the Philippines (ELP) conforms to Type 1 ISO

14024, which is voluntary and relies on a third party accreditation that awards a "Seal of

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Approval" to those which will be accredited. Both the ELP and the "Seal of Approval"

bear the proud name "Green Choice Philippines." It has its legal footing on RA 9003, the

Ecological Solid Waste Management Act. Some products have been awarded the Green

Choice Seal of Approval for meeting government regulations that respond to the threat of

climate change, and in emerging consumer preferences. 

The Green Choice Seal of Approval is the only third-party and multiple-criteria

based seal of approval on environmental claims that is being espoused by the

government. Some 11 locally available products have found to be environmentally

preferable, based on ISO 14024 (Tan, 2005).

2.2   Foreign Literature

There is a growing body of evidence that indicates that environmental issues

remain at the forefront of public concerns, at least as a social and public policy issue.

The ability of the marketeer to successfully respond to this concern in a marketing thrust

can therefore be seen as a potential source of competitive advantage, not just in niche

market strategy but as an integral component of overall organizational or mainstream

market approach (Ottman, 2008).

Green marketing raises two issues regarding consumers’ benefit–cost calculus:

first, whether consumers regard greenness of products/firms as ‘hygiene’ or ‘motivating’

factors, and second, to what extent green products create social benefits but impose

private costs. Extending Maslow’s 1943 theory, Herzberg (2006) developed a theory of

work motivation that focused on two work-related factors: those that motivated

employees (motivators) and those that prevented dissatisfaction among them (hygiene).

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As discussed in Prakash (2008), a key challenge for marketers is to understand

whether consumers view firm/product greening as motivating factors (their presence

induces consumers to purchase a given product; preference for a product is an increasing

function of the greening level) or hygiene factors (their absence may bother consumers

but, after a low threshold of greening, the preference for a product is not an increasing

function of the greening level).

If consumers favor firms with green policies (for example, the one with ISO

14001 certification is preferred) or green products (for example, the one with a higher

percentage of recycled inputs is favored), green policies/products are motivating factors.

Managers, therefore, have economic justification to ensure that their firms/products are

greener than their competitors’. However, if consumers do not care much about who is

greener, but they do penalize firms that violate environmental laws or emit high levels of

toxins, greenness is a hygiene variable – 33% of adults claimed to have avoided buying

products, at least occasionally, from companies with poor environmental records

(Ottman, 2008).

If so, then the managerial task then is to obey environmental laws, to stay out of

trouble with the regulators and to avoid bad press by undertaking minimal beyond

compliance initiatives. Greening firms/products often creates societal benefits

(especially, over products’ life cycles) but imposes private costs on firms. If firms do

not/cannot pass on such costs to consumers, they hurt their shareholders. However, most

consumers are perhaps not ready to bear increased direct costs (as opposed to indirect

costs imposed by environmental regulations or more stringent product standards) either

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for societal well being or due to their skepticism about firms’ environmental claims

(Coddington, 2005).

Marketing literature also examines the relative salience of consumers’ attributes

and structural parameters (market environment, social norms and institutions) in inducing

environment-friendly behavior. There is also a debate on the relative efficacy of

economic and noneconomic factors in inducing behavioral changes. In their review of the

literature on recycling, Derksen and Gartrell (2005) argue that demographic variables

show little association with recycling behavior and the social context is the key

determinant: people having access to recycling programs exhibit higher levels of

recycling than those not having such access. Individuals’ attitudes towards recycling

cannot overcome structural barriers; attitudes impact behaviors only if individuals have

easy access to recycling programs (De Young, 2009).

Consumers also require information to make informed choices. A lack of

information could inhibit or discourage them from incorporating green attributes in their

purchase decisions. Information also needs to be comprehensible. If consumers do not

adequately understand firms’ claims, they may over-react or underreact to the greenness

of products/firms. Although consumers may not have access to such information or

understand its implications (Menell, 2005), the media and the various external

stakeholders often widely disseminate information and interpret its implications, thereby

putting pressure on firms to reduce pollution and to adopt green policies. Thus, firms

should evaluate whether to support/oppose stakeholders that are simplifying and

conveying information about the greenness of their policies/products.

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If the targeted consumers view greenness as ‘motivating’ variables, firms should

develop alliances with stakeholders for wider dissemination of information. Having

decided to provide comprehensible information, firms face yet another challenge:

consumers must perceive information as being credible. As a reference, many view

industry as the least reliable source of information on environmental issues (Ottman,

2008).

An alarming 47% of consumers dismiss environmental claims as gimmicks

(Fierman, 2006). Some scholars already detect a consumer backlash to environmental

marketing due to false, unsubstantiated or exaggerated claims (Carlson et al., 2006).

Further, as the number of environmental claims proliferates, the levels of consumer

skepticism seem to increase (Ellen et al., 2005). This is alarming news for firms who can

gain competitive advantages by being greener than competitors.

To add to firms’ woes, some environmental groups closely examine firms’ claims.

Greenpeace, for example, issues reports identifying companies that make false or

exaggerated environmental claims. The federal and state governments also regulate what

claims are permissible and have sanctioned many firms (Brown and Wahlers, 2008). In

this context, eco-labels can serve as useful vehicles for green marketing. At least 25

countries have government-sponsored, third-party ecolabeling programs. Prominent ones

include Germany’s Blue Angel, Japan’s Eco-Mark, Scandinavia’s Nordic Label and the

United States’ Green Seal and Scientific Certificatio Systems. However, the usefulness of

eco-labels versus other information disclosure strategies is questioned. Menell (20055)

argues that if governmental regulations can force firms to internalize most environmental

externalities, then the price mechanism is a more institutionally sound mechanism for

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information provision than eco-labeling on three grounds: comprehensibility (consumers

can understand price information more easily), universality (enables consumers to

compare across a broad range of alternatives) and prioritization (better enables

consumers to prioritize environmental attributes over other attributes.

Across a range of indicators, environmental concerns of adolescents show

increases during the early 1990s and declines across the remainder of the three decades.

Declining trends in reports of personal responsibility for the environment, conservation

behaviors, and the belief that resources are scarce are particularly noteworthy. Across all

years, findings reveal that youth tended to assign responsibility for the environment to the

government and consumers rather than accepting personal responsibility. Recent declines

in environmental concerns for this nationally representative sample of youth signal the

need for a renewed focus on young people’s views and call for better environmental

education and governmental leadership (Dunlap, 2006).

.2.3   Local Studies

Gone are the days when environmental issues such as climate change, pollution

and corporate social responsibility were espoused by fringe activists. Today´s emerging

corporate leaders are more inclined to demand that products and services purporting their

green credentials must demonstrate their benefits and pay for their way.  

This is the conclusion from a survey of emerging business leaders, including

interviews conducted with a number of senior executives, entitled “.Green Procurement -

Its Economics Not Altruism” (GLG Group, 2010). All respondents participate in

executive education at University of Asia and the Pacific (UA&P), Philippines. Given

that participants usually achieve senior leadership roles within a decade from graduation,

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the survey provides a “first look” at what future leaders are seeking in purchasing “green”

products and services.

Viewed from individual decision makers´ perspectives, predispositions to “green”

practices at home, influence purchasing decisions at work (and vice versa). Keen on

getting value for money, respondents show a penchant to take charge and make their

purchases pay. Hence, ill defined benefits of “green” purchasing such as complying

with social responsibility collides with economic orientation of corporate procurement

decisions. Businesses that seek to exploit altruism to advance their “green” agenda may

need to rethink their approach. Business leaders seeking to do good for society are

demanding a tangible value from “green” products and services that benefits their

stakeholders (GLG Group, 2010).

In a study entitled, “Consumer Willingness to Pay for Multiple Attributes of

Organic Rice : A Case Study in the Philippines,“ Ara (2007) determined consumers’

preferences of multiple attributes of organic rice in Manila and Naga City. Attributes

included were price, reduced health risk level, environmental quality, eating quality, type

of organic certification and a fair trade factor. In both cities, health risk was the primary

concern. Consumers in Manila revealed organic certification to be the second most

important factor while improvement of the farm environment was the second highest

factor in Naga City. Ara (2007) concluded that consumers who lived further from the

production site have a higher demand for certification. On the other hand, consumers

who lived close to the farms cared more about the impact on the environment of farming

organically.

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In “A Study on the Relationship of Psychographic Variables and Ecologically

Concious Consumer Behavior Among the College of Business and Economics Graduate

School Students” Tan (2006) determined the relationship of three psychographic

variables (Environmental Concern, Perceived Consumer Effectiveness and Altruism) and

Ecologically Conscious Consumer Behavior (ECCB). One-hundred fifty graduate school

students completed the survey questionnaire. The respondents were divided into two

populations, depending on the practice of trash segregation at home (segregating and not

segregating). Statistical tools used in the study were Pearson correlation and t-test (test of

difference). A focus group discussion (FGD) was conducted among seven graduate

school students from CBE and the proponent interviewed the graduate school

coordinators to further probe and understand the motivating factors behind ECCB.

Findings of this study showed that there were no significant correlations among the three

psychographic variables (EC, PCE and Altruism) and ECCB among the segregators. On

the other hand, there were two psychographic variables (EC and PCE) that significantly

correlated with ECCB among the non-segregators. Comparing the two populations, the

segregators and non-segregators four variables under study (EC, PCE, Altruism and

ECCB), only two were found to be significantly different from each other, PCE and

ECCB. The study contributes to the knowledge of green consumption in the Philippines

and provides insights about ECCB and how it should be communicated to be more

effective.

2.4   Foreign Studies

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Previous research into consumer attitudes toward green advertising was very

comprehensive and addressed some of the same concepts in this study. From previous

research, this research used themes that were unique to green advertising. For example,

several authors noted motivations for a firm to produce green advertising (Davis, 2002;

Zinkhan and Carlson, 2005; and Ottman, 2008).

Others researched consumer responses to green advertising and products in terms

of loyalty (Frankel, 2005), willingness to pay higher prices (Schlossberg, 2005), and

perceptions of product safety or harm to the environment (Wheeler, 2006). Finally, this

study included items examining the positive and negative impact of green advertising on

society, as noted by Banerjee et al. (2005).

In addition to themes used in previous research, this study also included three new

items. Based on the research conducted by Manrai, et. al. (2007), the research included

“Green advertising strengthens company image.” Based on the research conducted by

Chan (2007), this study included “I plan to switch to products and services that were

advertised as being green.” Finally, this work included “I prefer products with eco-

labeled packages” based on current trends in packaging and labeling to include

environmentally friendly messages and/or recycling information.

In addition, this study also referred to the analyses of individual preferences

regarding environmental and health improvement technologies in organic food

production systems in Spain, conducted by Ochoa and Chaez (2008). Empirical results

from a survey reveal that consumers are willing to pay for both health gains and

environmental friendly technologies in organic milk production, although the valuation of

the health aspects is higher. Prior information about organic production systems and

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shopping convenience are key variables in interpersonal comparisons of willingness to

pay. The perceived overall value of organic production systems was higher among

individuals with stronger environmental preferences than among those who prioritize

health concerns.

Finally, the study carried out in Chile in order to evaluate consumer preference

and willingness to pay for a certified quality label on traditional food products, was also

reviwed (Padilla, et. al., 2008). A total of 234 individuals were interviewed in two

Chilean cities, Santiago and Talca. A homemade blackberry (Rubus ulmifolius)

marmalade and three product attributes with their respective levels were chosen (price,

quality label and jar appearance). Nine hypothetical product concepts were generated

applying an orthogonal design. Respondents were asked to rank the product concepts

according to their preferences. The results obtained through the conjoint model suggest

that an “officially certified quality label” is the most important attribute influencing

consumer choice behavior. Likewise, a positive willingness to pay for such an attribute is

observed. As a differentiation and quality management tool, an official certified quality

label seems to be a good alternative to improve the situation and market opportunities for

small farmers. It is important to notice that this study corresponds to the first empirical

approach carried out in Chile, which relates the conjoint analysis method with consumer

preferences for this kind of food product.

2.5   Relevance to the Present Study

The literature reviewed served to provide a better understanding of the conceptual

foundations of attitude toward green advertising and corresponding environmental

behaviors.

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Our understanding of green marketing is still in its infancy, perhaps due to the

multidisciplinary nature of the enterprise. Marketing scholars focus on a host of business

strategy and public policy issues, including eco-labels and market segmentation, and the

role of structural factors and economic incentives in influencing consumer behavior.

As the literature has shown, for environmental economists, green marketing

signifies a broader trend in the evolution of environmental policies that focus on

information disclosure.

Institutional theory, stakeholder theory and the corporate social performance

perspective, on the other hand view green marketing as a subset of corporate policies

designed to gain external legitimacy. These have developed in response to the

expectations of a broad spectrum of stakeholders, both internal and external.

Political economists focus on collective action dilemmas inherent in green

marketing at the consumer and producer levels.

This review of literature has identified key ideas in relation to promoting green

products that may be most relevant to both scholars and practitioners of green marketing.

Chapter III

METHODOLOGY

 

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The research methodology is described in this section, including the research

design, population and sample, instrument used to collect the data, procedures for

conducting the research and analysis of data.

3.1. Research Design

In this study, the descriptive method of research was used to assess consumer

attitudes toward green marketing and their effects on consumer intentions and behaviors.

Polit and Beck (2004), define descriptive method as the second broad class of non-

experimental studies, the purpose of which is to describe and document aspects of a

situation as it naturally occurs and sometimes to serve as a starting point for hypothesis

generation or theory development. Descriptive research involves collecting numerical

data to test hypotheses or answer questions concerning current status. The use of

descriptive research was deemed appropriate for this study because of the nature of the

research instrument, a questionnaire.

3.2   Population, Sample and Sampling Techniques

The respondents of this study were fifty (50) college sudents of the Trinity

University of Asia in Quezon City. These respondents were selected and qualified from

the total population of college students in the University. All students currently enrolled

in the university as regular students at the time this study was undertaken were

considered as potential participants of the study.

Purposive sampling was used, as it is a method often employed when researchers

have knowledge of the universe and the sample.

3.3   Research Instruments

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A three-part questionnaire was designed for the study. Informal interviews with

respondents were undertaken and used as an approach, when there was need to clarify the

responses indicated in the questionnaire.

Section A collected demographic information of the college student such as

gender, age, education and income. It was felt necessary to address these information to

undertake a test of difference, establishing whether or not there existed differences in the

perceptions of the respondents, when grouped according to their demographic

characteristics.

Sections B examined the beliefs about the environment of respondents. A Likert-

like scale was presented to respondents to collect these beliefs.

The respondents were asked to respond to each statement and a continuous scale

was used as a tool of analysis, where: 5 = Strongly Agree; 4 = Agree; 3 = Undecided;

2 = Disagree; and.1= Strongly Disagree.

Section C explored the attitudes of respondents towards green advertising, using

several indicators. Where appropriate, items were scored on a Likert-like scale presented

to respondents, with the following values: 5 = Strongly Agree; 4 = Agree; 3 =

Undecided; 2 = Disagree; and.1= Strongly Disagree.

Section D collected information about specific consumer intentions and

behaviors, in relation to attitudes toward green advertising. Where appropriate, items

were also scored on a Likert-like scale presented to respondents, with the following

values: 5 = Strongly Agree; 4 = Agree; 3 = Undecided; 2 = Disagree; and.1= Strongly

Disagree.

3.4   Data Gathering Procedure

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The researchers first pilot-tested the instrument on ten (10) college students who

were not asked to participate in this study. Pilot-testing was undertaken to assure

readability and comprehension of the research instrument.

Upon approval of the questionnaire by the thesis adviser, potential respondents

were located and qualified. If they met the eligibility requirements of this study,

questionnaires were administered to them personally, along with a verbal request for

their participation in the study while assuring that their responses would be treated in

strict confidence.

3.5   Statistical Treatment of Data

Data from the interviews were analyzed, using several statistical methods.

To answer question number one, that asked for demographic characteristics of

respondents as to gender, age, education and income, calculation of simple percentages

was used, thus:

Statistical Tool: Simple Percentage

P = __ƒ x 100 n

where P is the simple percentage

ƒ is the number of responses

n is the total number of respondents

To answer question number two about what environmental beliefs respondents

possess, frequency count and weighted mean were employed as tools of statistical

analysis.

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To answer question number three about the attitudes of respondents towards green

marketing, the respondents were presented with a checklist. Frequency count and

weighted mean were employed as tools of statistical analysis.

To answer qustion number four about what consumer intentions and behaviors

respondents perceive in themselves in relation to green marketing, the respondents were

likewise presented with a checklist. To complete the analysis for questions numbered two

and three and four, the following formulas were used:

Statistical tools: frequency count and weighted mean

Weighted Mean

Wm = fw N

Where wm is the mean

fw is the sum of the product of the frequency and the weight

n is the total number of respondents

To answer question number five, the t-test for independent samples was used in

this study to determine if there is a significant difference in the environmental beliefs of

respondents, when they are grouped according to their demographic profile The formula

on the next page was employed by the researchers:

Statistical tool: t-Test for Independent Samples

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Where: x1 is the mean of the first sample;

x2 is the mean of the second sample;

the variance is the standard deviation squared (hence s2);

the subscript numbers (1 and 2 to the bottom right of the x and s in the

formula) refer to sample 1 and sample 2.

To answer question number five and six, the same t-test for independent samples

was also used to determine if there is a significant difference in the self-perceived

attitudes of respondents toward green marketing, when they are grouped according to

their environmental beliefs; and if there is a significant difference in the self-perceived

consumer intentions and behaviors of respondents, when they are grouped according to

their attitudes toward green marketing.

      Chapter IV

 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

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 In this study, we examined consumer attitudes toward green marketing and their

effects on consumer intentions and behaviors.

This chapter includes the presentation, analysis and interpretation of the data

gathered in this study. The discussions provide responses to the specific research

problems of the study.

To facilitate the discussion, we shall address each research question directly.

What is the demographic profile of the respondents in terms of:

a) gender

b) age

d) education

e) income

Table 1 on the next page shows the distribution of respondents according to their

demographic characteristics in terms of gender, age, education and family income.

Table 1

Demographic Profile of Respondents

GENDER Frequency Percentage

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Male 21 42%Female 29 58%

Total 50 100%AGE Frequency Percentage

16-18 14 28%19-21 22 44%22 & above 14 28%

Total 50 100%YEAR LEVEL Frequency Percentage

Freshmen 5 10%Sophomore 12 24%Junior 12 24%Senior 21 42%

Total 50 100%FAMILY INCOME

Frequency Percentage

Less than 20,000 4 8%20,001- 30,000 25 50%30,001- 40,000 10 20%40,001 or more 11 22%

Total 50 100%

There were more female than male respondents in this study. Among the 50

participants, 29 or 58% were females and only 21 or 42% were males. These figures

appear to support the National Statistics Office’s report (NSO, 2004) that female students

continue to outnumber male students, with women now making up 56 percent of the

college population.

The sample was relatively young. Of the 50 student respondents, 22 or 44% were

19-21 years of age; 14 or 28% were 16-18 years of age, and still another 14 or 28%

were 22 years old or older. This age distribution is supported by a World Bank study

(2002) on college education, which observes that in the Philippines, most students enter

college when they are sixteen years old.

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When grouped according to their year level in college, the largest number of

respondents or 21 (42%) said they were seniors; 12 each (or 24%) said they were juniors

and sophomores; and only five (5) or 10% said that they were freshmen students.

In terms of family income, 25 respondents or 50% said their families earned

P20,001- 30,000 per month; 11 or 22% claimed their family incomes were P40,001 or

more; and 10 or 20% indicated a family monthly income of P30,001- 40,000. Only four

(4) respondents or 8% said their family income was less than P20,000. To the respondents,

these indicated that majority of the respondents came from families belonged to middle class

families who have income to spend on food, housing and repairs, transportation and

communication, fuel, light and water, education, and recreation.

 What environmental beliefs do respondents possess?

The environmental beliefs scale contained 20 items adapted either from items

used in past environmental beliefs scales of similar studies and/or constructed by the

researchers, based on reviews of green marketing literature.

To facilitate discussion, the scale was divided into four (4) main areas:

Environmental Activism, Thoughts and Behaviors on the Environment, Emotional

Response to Environmental Issues and Environmental Awareness. The respondents were

asked to respond to each statement and a continuous scale was used, where: 4 =

Strongly Agree, 3 = Agree, 2 = Disagree and 1 = Strongly Disagree.

Table 2.1

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Thoughts and Behaviors of the Respondents on Environmental Activism

Environmental Activism AverageVerbal

Interpretation1. I'd be willing to ride a bicycle or use

public transportation to go to school to reduce air pollution.

3.06 Agree

2. I often subscribe to ecological publications. 2.90 Agree

3. I'd be willing to write my congressman concerning ecological problems.

2.98 Agree

4. I often urge my friends to use products that are advertised as being green.

3.00 Agree

5. I probably would go to a house to distribute literature on the environment.

2.88 Agree

Average 2.96 AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

Table 2.1 on the degree of environmental activism of the respondents shows that

respondents agreed with all the items on the scale, with highest agreement expressed for

the statement, “I'd be willing to ride a bicycle or use public transportation

to go to school to reduce air pollution,” and “I often urge my friends to

use products that are advertised as being green.”

These findings are supported by literature that indicates that 75% of Americans

under 30 identify consider themselves to be environmentalists (Osterhus, 2007). Despite

the near absence of previous research in the country on adolescents’ opinions about

environmental issues, the researchers observations also support these findings. For

instance, the researchers themselves identified more than 200 self governing youth

organizations on the Internet alone which are involved in the study and conservation of

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nature and environment, including Student Environmental Action Coalition (SEAC),

YouthNoise, Student Conservation Association, Canadian Youth Climate Coalition,

Australian Student Environment Network, Environmental Youth Alliance (EYA), Kids vs Global

Warming and many others.

Table 2.2

Personal Everyday Thoughts and Behaviors of the Respondents on the Environment

Personal Everyday Thoughts and Behaviors

AverageVerbal

Interpretation1. I would be willing to stop buying

products from companies guilty of harming the environment, even though it might be inconvenient.

3.32 Strongly Agree

2. I refuse to buy products from companies accused of being polluters.

3.32 Strongly Agree

3. I make special effort to buy products for ecological reasons. 3.24 Agree

4. I read labels to see if contents are environmentally safe. 3.32 Strongly Agree

5. I do my best to keep up-to-date on environmental issues. 3.24 Agree

Average 3.29 Strongly AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

Table 2.2. on the respondents’ personal everyday thoughts on the environment

shows that strong agreement was expressed to three (3) of five (5) items on the scale,

namely: “I would be willing to stop buying products from companies

guilty of harming the environment, even though it might be

inconvenient,” “I refuse to buy products from companies accused of

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being polluters,” and “I read labels to see if contents are

environmentally safe.”

These findings find support in literature. Ottman (2008), for instance,

found that 33% of consumers claimed to have avoided buying products, at least

occasionally, from companies with poor environmental records. According to Phillips

(2005), some scholars also believe that consumers are willing to pay premiums for green

products because consumers often prioritize green attributes over traditional product

attributes such as price and quality.

Table 2.3

Emotional Response of the Respondents to Environmental Issues

Emotional Response AverageVerbal

Interpretation1. I believe recycling will reduce

pollution. 3.70Strongly Agree

2. When I think of the ways industries are destroying the environment, I get frustrated. 3.44

Strongly Agree

3. Recycling is important to save natural resources. 3.52

Strongly Agree

4. I am very concerned about how climate change will affect future generations. 3.58

Strongly Agree

5. It frightens me to think that much of the food I eat may be dangerous because of environmental contamination. 3.40

Strongly Agree

Average 3.40 Strongly AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

The highest degree of agreement was expressed by respondents in the category

emotional responses to environmental issues. Respondents indicated that they strongly

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agreed with all statements in this category. Strongest agreement was expressed to the

statements: “I believe recycling will reduce pollution,” “I am very

concerned about how climate change will affect future generations,”

and “Recycling is important to save natural resources.”

Based on the researchers’ observations, recycling is the new buzzword in the

Philippines. Designing fashion accessories with waste items is fast catching up in the

country- a field which, besides providing employment to local artisans, is also solving the

garbage issue. The popularity of recycling is mirrored in this study and supports the

findings of De Young (2009) that people having access to recycling programs exhibit

higher levels of recycling than those not having such access.

Table 2.4

Environmental Awareness and Responsibility of the Respondents

Environmental Awareness and Responsibility

AverageVerbal

Interpretation1. I would be more willing to recycle if

there were a monetary reward. 3.06Agree

2. Keeping separate piles of garbage for recycling is too much trouble me. 2.68

Agree

3. Even if everyone tried to conserve energy at home, it wouldn’t make a big impact on energy use. 2.26

Agree

4. I understand the environmental phrases and symbols on product packages. 3.22

Agree

5. I feel that I am very knowledgeable about environmental issues. 3.08

Agree

Average 2.86 AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

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In terms of environmental awareness and responsibility, the respondents of this study

indicated agreement to all statements, with highest agreement expressed for the statements: “ I

understand the environmental phrases and symbols on product

packages, and “I feel that I am very knowledgeable about

environmental issues.” This is supported by recent polls that report that 87% of

U.S. adults are concerned about the condition of the natural environment (Phillips, 2005).

However, ambivalence was also expressed when respondents

agreed with the statements, “Keeping separate piles of garbage for

recycling is too much trouble me,” and “Even if everyone tried to

conserve energy at home, it wouldn’t make a big impact on energy

use.”

To the researchers, this indicated that while environmental

awareness was high, the respondents were reluctant to take

responsibility for environmental concerns. This is supported by

literature which has observed that across all years, findings reveal that youth

tended to assign responsibility for the environment to the government and consumers

rather than accepting personal responsibility (Dunlap, 2006).

Overall, therefore, the researchers observe that the respondents of this study

possessed strong beliefs about the environment and had a high level of environmental

awareness. This trend is supported by literature that indicating that consumer concerns

about the environment have been on the increase in recent years (Chitra, 2007).

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The researchers’ analyses of trends in youth attitudes toward environmental

responsibility, however, revealed that they tended to see government and people in

general as more responsible for environmental problems than they themselves felt.

Clearly, the average Filipino student does not view him or herself as the first line

of defense in protecting the environment but rather seem to view conservation as a

collective responsibility. One implication of these findings might be that if government

leaders step up to acknowledge the seriousness of environmental problems and offer

genuine solutions of sustainability, perhaps young people will listen and follow their

example by taking on greater responsibility.

What are the attitudes of respondents toward green marketing?

Table 3

Attitudes of the Respondents to Green marketing

Cognitive and Affective Responses to Green Advertising

AverageVerbal

Interpretation1. Green marketing is valuable to society. 3.72 Strongly Agree2. Green marketing leads people to be more

socially responsible. 3.66Strongly Agree

3. Green marketing shows the consumer that the firm is addressing consumers' environmental concerns. 3.64

Strongly Agree

4. Green marketing strengthens company image. 3.54

Strongly Agree

5. Products and services that are advertised as green are safer to use. 3.46

Strongly Agree

Average 3.60 Strongly AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

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In Table 3, it is shown that the respondents of this study had very strong positive

attitudes toward green marketing, with strong agreement indicated to all statements. The

highest degree of agreement was expressed for the statements, “Green marketing is

valuable to society,” and “Green marketing leads people to be more socially responsible.”

This finding is mirrored by Ottman (2008), who observed that there is a growing

body of evidence that indicates that environmental issues remain at the forefront of public

concerns, and that green marketing can, therefore, be seen as a potential source of

competitive advantage, not just in niche market strategy but as an integral component of

overall organizational or mainstream market approach.

What consumer intentions and behaviors do respondents perceive in

themselves in relation to green marketing?

Table 4 Consumer Intentions and Behaviors of the Respondents

In Relation to Green Marketing

Cognitive and Affective Responses to Green Advertising

AverageVerbal

Interpretation1. I tend to be more loyal to products from

companies that practice green marketing. 3.72 Strongly Agree

2. I plan to switch to products and services that were advertised as being green. 3.66 Strongly Agree

3. I would pay more for products or services that were advertised as being green. 3.64 Strongly Agree

4. I prefer products with eco-labeled packages. 3.54 Strongly Agree5. I plan to read product labels more carefully to see

if they are green. 3.46 Strongly Agree

Average 3.60 Strongly AgreeLegend : 3.26-4.00 Strongly Agree

2.51-3.25 Agree1.76-2.50 Disagree1.00-1.75 Strongly Disagree

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This study utilized a combination of several previously used measures, in addition

to new items thought to determine and consumer behaviors. All items used a four-point

Likert scale, with 4 = strongly agree and 1 = strongly disagree.

The consumer intentions and behaviors scale (see Table 4) contained five (5)

items. Respondents expressed strong agreement to all items on the scale, the highest

ranked of which were: “I tend to be more loyal to products from companies that practice

green marketing,” “I plan to switch to products and services that were advertised as being

green,” and “I would pay more for products or services that were advertised as being green.”

These findings are supported by literature. Respondents in a study conducted by Chan

(2007), indicated their plan to switch to products and services that were advertised as

being green as well as the fact that they preferred products with eco-labeled packages.

Others have also affirmed consumer responses to green advertising and products in terms

of loyalty (Frankel, 2005), willingness to pay higher prices (Schlossberg, 2005), and

perceptions of product safety or harm to the environment (Wheeler, 2006).

Is there a significant difference in the self-perceived environmental beliefs

of respondents when they are grouped according to their demographic

profile?

Table 5.1

Test of Significant Difference in the Self-Perceived Environmental Beliefs of the Respondents When Grouped According to Gender

Gender Average F-stat F-critical Decision ConclusionMale 3.23

0.1 4.04 Accept Ho.No

significant difference.

Female 3.26

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As seen in Table 5.1, there was no significant difference in the self-perceived

environmental beliefs of respondents, when they were grouped according to their

gender. This meant that there were no significant variances in the answers of males and

females.

Table 5.2

Test of Significant Difference in the Self-Perceived Environmental Beliefs of the Respondents When Grouped According to Age

Age Average F-stat F-critical Decision Conclusion16-18 3.07

0.78 3.20 Accept Ho.No

significant difference.

19-21 3.16

22 and above 3.25

Table 5.2 shows that there were also no significant differences in the perceived

environmental beliefs of the respondents, when they were grouped according to their age.

Table 5.3

Test of Significant Difference in the Self-Perceived Environmental Beliefs of the Respondents When Grouped According to Year Level

Year Level Average F-stat F-critical Decision ConclusionFreshmen 3.18

0.77 2.81 Accept Ho.No

significant difference.

Sophomore 3.05Junior 3.11Senior 3.25

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In Table 5.3, we glean that there were no significant differences in the perceived

environmental beliefs of the respondents, when they were grouped according to their year

level in college.

Table 5.4

Test of Significant Difference in the Self-Perceived Environmental Beliefs of the Respondents When Grouped According to Family Income

Family Income Average F-stat F-critical Decision ConclusionLess than 20,000 2.93

1.98 2.80 Accept Ho.No

significant difference.

20,001- 30,000 3.2830,001- 40,000 3.0340,001 or more 3.10

Finally, in Table 5.4 we observe that there were no significant differences in the

perceived environmental beliefs of the respondents, when they were grouped according to

their family income.

Based on the above findings from Tables 5.1-5.4, the first null hypothesis was

accepted: There is no significant difference in the respondents’ self-perceived

environmental beliefs, where they are grouped according to their demographic profile.

This study is supported by the findings of Derksen and Gartrell (2005) who

discovered that demographic variables show little association with environmental

behavior.

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Is there a significant difference between the self-perceived environmental

beliefs and the attitudes towards green marketing of the respondents?

Table 6

Test of Significant Difference Between the Self-Perceived Environmental Beliefs and the Attitudes Towards Green Marketing of the Respondents

Indicators Average t-stat t-critical Decision ConclusionBeliefs 3.16

-6.99 2.01 Reject Ho.With

significant difference.

Attitudes 3.60

T-tests for independent samples were performed to examine the relation between

self-perceived environmental beliefs and the attitudes towards green marketing of the

respondents. The respondents who had stronger environmental beliefs had more positive

attitudes toward green advertising than those who were environmentally apathetic. This

supports research done by Matulich, Haytko, and Austin (2005).

Is there a significant difference between consumer intentions and

behaviors, and the attitudes toward green marketing of the respondents?

Table 7 Test of Significant Difference Between the Consumer Intentions and Behaviors, and

the Attitudes Towards Green Marketing of the Respondents

Indicators Average t-stat t-critical Decision ConclusionConsumer Intentions and Behaviors

3.432.72 2.01 Reject Ho.

With significant difference.

Attitudes 3.60

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T-tests were performed to see if those who indicated they would act on their green

preferences differed from the apathetic group with regard to their attitudes toward green

advertising. Not surprisingly, as shown in Table 7, there were significant differences

between the two groups on almost all green advertising questions, with those who were

environmentally responsible having more positive attitudes toward green advertising than

those who were environmentally apathetic. The null hypothesis was thus rejected.

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      Chapter V

 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

                         

This chapter discusses the summary, conclusions, and recommendations of the

study, based on data collected by the researcher from a sample of 50 student-respondents

at the Trinity University of Asia in Quezon City, Philippines.

5.1 Summary

This study evaluated how green marketing influences consumer behavior; and the

researchers took note of consumers who were more proactive with their environmental

beliefs.

The results of this study will be used to provide a modern, reliable scale academic

researchers and business practitioners can use to assess their "green" advertising

strategies in conjunction with the environmental makeup of their customers. The

researcher utilized the Theory of Planned Behavior (Ajzen, 1985) for developing

improved measures of marketing.

This study was conducted among 50 selected college students of the Trinity

University of Asia in Quezon City. All students currently enrolled in the university as

regular students were considered as potential participants of the study.

Each participant was requested to accomplish a questionnaire which evaluated

his/her environmental beliefs, attitudes towards green marketing and consumer

intentions/behaviors.

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5.2 Summary of Findings

Based on the problems presented, the researchers came up with the following

findings:

1. Overall, the respondents of this study possessed strong beliefs about the

environment and had a high level of environmental awareness.

2. Strongest convictions about the environment were exhibited in the respondents’

personal everyday thoughts on the environment and in terms of environmental

awareness and responsibility.

3. However, while environmental awareness was high, the

respondents were reluctant to take responsibility for

environmental concerns.

4. The respondents of this study had very strong positive attitudes toward green

marketing, indicating that green marketing can, therefore, be seen as a potential

source of competitive advantage, not just in niche market strategy but as an

integral component of overall organizational or mainstream market approach.

5. Respondents of this indicated their plan to switch and stay loyal to products and

services that were advertised as being green, expressed preferences for products

with eco-labeled packages and willingness to pay higher prices for

products/services marketed as green.

6. No significant differences in the respondents’ self-perceived environmental

beliefs were found, where they were grouped according to their demographic

profile.

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7. The respondents who had stronger environmental beliefs had more positive

attitudes toward green advertising than those who were environmentally

apathetic.

8. Those respondents who were environmentally responsible possessed more

positive attitudes toward green advertising than those who were environmentally

apathetic.

                        

5.3 Conclusions

From the summary of findings, the researchers have concluded that respondents

who have stronger environmental beliefs and are more proactive with their environmental

behaviors also have better attitudes toward green advertising. The results imply that

green advertising may be best at reaching those who are already practicing green

behaviors.

This study also found that consumers are willing to switch to, and pay more for,

products and services advertised as green. A scale for future study of these issues was

developed and should be useful to both academics and practitioners in studying

consumer responses to green marketing efforts and the resulting consumer behaviors.

5.4 Recommendations

 Based on the findings and conclusions of this study, the following

recommendations were submitted by the researchers:

1. To consumers, this study is recommended for a better understanding of how

green advertisements affect consumer behavior.

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2. To marketing practitioners, the tool used in this study is recommended for

evaluating the consumers’ environmental attitudes, intentions, and behaviors.

3. To business and government leaders, this study is recommended to provide a

better understanding of the conceptual foundations and policies of green

advertising and corresponding environmental behaviors.

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BIBLIOGRAPHY

BOOKS

Charter M, Polonsky MJ (eds). 2007. Greener Marketing: a Global Perspective on Greening Marketing Practice, 2nd edition, Greenleaf: Sheffield.

Coddington W. 2005. Environmental Marketing: Positive Strategies for Reaching the Green Consumer. McGraw- Hill: New York.

Dunlap RE. Trends in public opinion toward environmental issues: 1965–1990. In: Dunlap RE, Mertig AG, editors. American environmentalism: The U.S. environmental movement 1970–1990. Philadelphia, PA: Taylor & Francis; 2006. pp. 89–116.

Fuller D. 2009. Sustainable Marketing: Managerial–Ecological Issues. Sage: Thousand Oaks, CA.

Herzberg F. 2006. Work and the Nature of Man. World: Cleveland, OH.

Matulich, Erika, Diana L. Haytko and Jon R. Austin (2005), "Attitudes Toward Green Advertising and Consumers' Environmentally Responsible Behaviors," Enhancing Knowledge Development in Marketing, 6, Stern, Zinkhan et al. (eds.), Chicago, IL: AMA, 541-542.

Ottman J. 2008. Greener Marketing. NTC: Lincolnwood, IL.

Prakash A. 2008. Greening the Firm: the Politics of Corporate Environmentalism. Cambridge University Press: Cambridge.

PERIODICALS

Banerjee, Subhatra, Charles S. Gulas, and Easwar Iyer (2005), “Shades of Green: A Multidimensional Analysis of Environmental Advertising,” Journal of Advertising, 23 (Summer), 21-31.

Brown JD, Wahlers RG. 2008. The environmentally concerned consumer: an exploratory study. Journal of Marketing Theory and Practice 6: 39–47.

Carlson L, Stephen JG, Kangun N. 2006. A content analysis of environmental advertising claims: a matrix approach. Journal of Advertising 22: 27–40.

Chan, Ricky Y.K. (2007), “Determinants of Chinese Consumers’ Green Purchase Behavior,” Psychology & Marketing, April, 18 (4), 389-402.

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Chen, Yu-Shan (2008), “The Positive Effect of Green Intellectual Capitol on Competitive Advantages of Firms,”Journal of Business Ethics, Vol. 77 (3), 271-286.

Chitra, K (2007), “In Search of the Green Consumers: A Perceptual Study,” Journal of Services Research, Vol. 7, (1), 173-191.

Davis, Joel J. (2002), "Ethics and Environmental Marketing," Journal of Business Ethics, (11), 81-87.

De Asis, Karen. Eco-entrepreneurs main drivers of green marketing. Philippine Daily Inquirer, January 1, 2008.

Derksen L, Gartrell J. 2005. The social context of recycling. American Sociological Review 58: 434–442.

De Young R. 2009. Exploring differences between recyclers and non-recyclers: the role of information. Journal of Environmental Systems 18: 431–351.

D’Souza, Clare, Mehdi Taghian, Peter Lamb and Roman Peretiatko (2007), “Green Decisions: Demographics and Consumer Understanding of Environmental Labels,” International Journal of Consumer Studies, Vol. 31 (4), 371-376.

Ellen P, Weiner JL, Cobb-Walgren C. 2006. The role of perceived consumer effectiveness in motivating environmentally-conscious behavior. Journal of Public Policy and Marketing 10: 102–117.

Erdman, Brian (2008), “Is Green Really Your Color?” Brandweek, Vol. 49 (5), 02/04, 18.

Fierman L. 2006. Procter and Gamble zeros in on green. American Demographics July: 16.

Hansen E. 2007. Forest certification. Forest Products Journal 47: 16–22.

Henion KE, Kinnear TC (eds). 1976. Ecological Marketing. American Marketing Association: Chicago, IL.

Manrai, Lalita A., Ajay K. Manrai, Dana N. Lascu, and John K. Ryans, Jr. (2007) “How Green-Claim Strength and Country Disposition Affect Product Evaluation and Company Image,” Psychology & Marketing, August, 14 (5), 511.

Menell PS. 2005. Structuring a market-oriented federalmeco-information policy. Maryland Law Review 54: 1435–1474.

Osterhus TL. 2007. Pro-social consumer influence strategies: when and how do they work? Journal of Marketing 61: 16–29.

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Peattie K, Ratnayaka M. 1992. Responding to green movement. Industrial Marketing Management 21: 103–110.

Peattie, Ken (2005), “Golden Goose or Wild Goose? The Hunt for the Green Consumer,” Business Strategy and Environment, Jul/Aug, 10 (4), 187.

Phillips LE. 2005. Green attitudes. American Demographics 21: 46–47.

Porter ME, Van der Linde C. 2005. Toward a new conception of the environment–competitiveness relationship. Journal of Economic Perspectives 9: 97–118.

Ritchie JRB, McDougall GHG. 2005. Designing and marketing energy conservation policies and programs. Journal of Public Policy and Marketing 4: 14–32.

Schlossberg, Howard (2005), "Marketers Warned to Heed Message of 'Ecologism'," Marketing News, (March 30), 6.

Walley N, Whitehead B. 2004. It’s not easy being green. Harvard Business Review May-June: 46–51.

Wheeler, William A. III (2006), "The Revival in Reverse Manufacturing," Journal of Business Strategy, (July/August), 8-13.

Zinkhan, George M. and Les Carlson (2005), “Green Advertising and the Reluctant Consumer,” Journal of Advertising, (Summer) 16.

UNPUBLISHED THESES

Aldanondo-Ochoa, Ana María and Carmen Almansa-Sáez. The private provision of public environment: Consumer preferences for organic production systems. Universidad Pública de Navarra, Departamento de Gestión de Empresas, Pamplona 31006, Spain, 2008. 

Ara, Shihomi, Consumer Willingness to Pay for Multiple Attributes of Organic Rice: A Case Study in the Philippines. Department of Agricultural, Environmental and Development Economics, The Ohio State University, 2007.

Padilla, Carlos, Pablo Villalobos, Achim Spiller and Guy Henry. Consumer

Preference and Willingness to Pay for an Officially Certified Quality Label: Implications for Traditional Food Producers. Universidad de Talca, Facultad de Ciencias Agrarias, Casilla 747, Talca, Chile,2007

Suplico, Luz. Impact of green marketing on students' purchase decision. De La Salle University-Manila, 2005.

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Tan, Michelle Copok. A study on the relationship of psychographic variables and ecologically concious consumer behavior among the College of Business and Economics graduate school students. De La Salle University-Manila, 2006.

ELECTRONIC PUBLICATIONS

Green Procurement - Its economics not altruism. Analysis by: GLG Expert Retrieved on October 12 from: http://www.glgroup.com/News/Green-Procurement.

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Appendix “A”Letter of Request to Dean of the College of Business Administration

for Permission to Conduct Study

Republic of the PhilippinesTRINITY UNIVERSITY OF ASIACollege of Business Administration

Quezon City, PhilippinesJanuary 10, 2011

DR. RODELIO L. BATHAN Dean, College of Business AdministrationTrinity University of Asia

Dear Dr. Bathan,

Warm Greetings!

We are fourth year CBA students currently enrolled in Research Paper Writing, and we are proposing to conduct a study entitled, “ATTITUDES TOWARDS GREEN MARKETING AND THEIR EFFECTS ON CONSUMER INTENTIONS AND BEHAVIORS.”

In line with this, we would like to seek your permission to allow us to conduct this study and to have the questionnaire answered by selected students.

Your favorable response in approval will be very much appreciated and would be essential in the fulfillment and success of the study.

Yours very sincerely,

CINDY T. VILLAFLORDOM ALAFRIZ

JOHN PAUL UNGOS VINCENT PEDENES

Noted by:

Research Adviser

Approved by:

DR. RODELIO L. BATHAN Dean, College of Business Administration

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Appendix “B”

Data Gathering Instrument

ATTITUDES TOWARDS GREEN MARKETING AND THEIR EFFECTS ON CONSUMER INTENTIONS AND BEHAVIORS

Thank you very much for participating voluntarily in this study. Please be assured that your responses will be kept strictly confidential.

I. Demographic Information

Gender: Male Female

Age: 16– 18 years old

19 – 21 years old

22 years old and above

Year in College: Freshman Sophomore Junior Senior

Aggregate Monthly Family Income (Total Income of Parents/Guardians or the Person/s Paying for your Education):

Less than P20,000

P20,001- P30,000

P30,001- P40,000

P40,0001 or more

II. Environmental Beliefs

Please respond to the following checklist of environmental beliefs by checking the appropriate column, where:

4 = Strongly Agree 2 = Disagree3 = Agree 1 = Strongly Disagree

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THOUGHTS AND BEHAVIORS ABOUT THE ENVIRONMENT SA

(4)

A

(3)

D

(2)

SD

(1)

ENVIRONMENTAL ACTIVISM

1. I'd be willing to ride a bicycle or use public transportation to go to school to reduce air pollution.

2. I often subscribe to ecological publications.

3. I'd be willing to write my congressman concerning ecological problems.

4. I often urge my friends to use products that are advertised as being green.

5. I probably would go to a house to distribute literature on the environment.

PERSONAL EVERYDAY THOUGHTS AND BEHAVIORS

6. I would be willing to stop buying products from companies guilty of harming the environment, even though it might be inconvenient.

7. I refuse to buy products from companies accused of being polluters.

8. I make special effort to buy products for ecological reasons.

9. I read labels to see if contents are environmentally safe.

10.I do my best to keep up-to-date on environmental issues.

EMOTIONAL RESPONSE

11.I believe recycling will reduce pollution.

12. When I think of the ways industries are destroying the environment, I get frustrated.

13.Recycling is important to save natural resources.

14.I am very concerned about how climate change will affect future generations.

15.It frightens me to think that much of the food I eat may be dangerous because of environmental contamination.

ENVIRONMENTAL AWARENESS AND RESPONSIBILITY

16. I would be more willing to recycle if there were a monetary reward.17. Keeping separate piles of garbage for recycling is too much trouble me.18. Even if everyone tried to conserve energy at home, it wouldn’t make a big impact on energy use.19. I understand the environmental phrases and symbols on product packages.

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20. I feel that I am very knowledgeable about environmental issues.

III. Attitudes Towards Green Marketing

Please indicate whether or not you agree with the affirmative statements on green marketing, where:

4 = Strongly Agree 2 = Disagree3 = Agree 1 = Strongly Disagree

ATTITUDES TO GREEN MARKETING SA A D SD

COGNITIVE AND AFFECTIVE RESPONSES TO GREEN ADVERTISING

1. Green marketing is valuable to society.

2. Green marketing leads people to be more socially responsible.

3. Green marketing shows the consumer that the firm is addressing consumers' environmental concerns.

4. Green marketing strengthens company image.

5. Products and services that are advertised as green are safer to use.

III. Consumer Intentions and Behaviors

Please indicate whether or not you agree with the affirmative statements on your own consumer intentions and behaviors, where:

4 = Strongly Agree 2 = Disagree3 = Agree 1 = Strongly Disagree

CONSUMERS’ SPECIFIC BEHAVIORS SA A D SD

1. I tend to be more loyal to products from companies that practice green marketing.

2. I plan to switch to products and services that were advertised as being green.

3. I would pay more for products or services that were advertised as being green.

4. I prefer products with eco-labeled packages.

5. I plan to read product labels more carefully to see if they are green.

Thank you very much!

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Appendix “C”

PROPOSED RESEARCH TIME TABLE

ACTIVITY JUNE-JULY

AUGUST-OCTOBER

NOV- DEC JAN-FEB MARCH

Selection of Topic

Thesis Title Submission and ApprovalWriting and Submission of Chapter IWriting and Submission of Chapter IIWriting and Submission of Chapter IIIPreparation and Submission of Research InstrumentsApproval of Research Proposal and InstrumentsConduct of Research/InterviewsCollation of Data

Calculations

Interpretation of DataWriting and Submission of Chapter IVWriting and Submission of Chapter VApproval of Written Document for DefensePanel Defense

Editing

Submission of Final Written Thesis Document

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CURRICULUM VITAE OF THE RESEARCHERS

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