Exploring Consumer Perception and Preferences for Green Products: A Focus on Dimapur, Nagaland

Mr. Ajay Chakraborty
Assistant Professor
Department of Commerce
ICFAI University Nagaland
Dr. K. Ashok kumar
Independent Scholar

Abstract

Green building materials or products are composed of renewable resources. These products are accountable environmentally because their impacts are considered significant over their product life. In today’s highly competitive business market environment, the consumers are showing greater concerns towards sustainability. Thereby companies are paying more attention to make their products greener and more sustainable. Consumers' concern with green issues is a worldwide subject continuously changes their lifestyle into becoming more environmentally responsible. To promote green products as the wave of the future, the focus should be on product stewardship and product marketing. Because evolving and changing customers’ views drive business product development, it is the customers’ expressing their newly found interest in green products because they are focusing on health advantage and today’s consumers are more environmental conscious that should prompt businesses leaders to refocus their efforts and dedicate their resources to explore how they can harness this new and potentially competitive advantage to increase companies’ bottom lines while satisfying the customer base. This paper has been made to assess the Perception and preference among consumers of green products. Analysis of data brought out, awareness level of consumers are identified, purchase pattern, factors influencing and perception and preference on green products. Statistical tool like T-Test, Correlation, Friedman were administered on the collected data to arrive at the major findings.

Keywords: Green product, renewable resource, consumer, environment, perception, business

1. Introduction

Green building materials or products are composed of renewable resources. These products are accountable environmentally because their impacts are considered significant over their product life. In today’s highly competitive business market environment, the consumers are showing greater concerns towards sustainability. Thereby companies are paying more attention to make their products greener and more sustainable. Consumers' concern with green issues is a worldwide subject continuously changes their lifestyle into becoming more environmentally responsible. One green awareness event jointly observed by the global community is the energy- saving campaign of switching off lights for one designated hour to reduce environmental impact, known as Earth Hour. A consumer whose purchasing behaviour is persuaded by environmental concerns is known as a green consumer (L.Shrum,J. McCarty and T.Lowrey, 1995). Meanwhile, green marketing is related to all activities designed to generate and facilitate any exchange intended to satisfy human needs or wants with minimal detrimental impact on the natural environment, i.e., environmental safe (M.J.Polonsky, 1994). Green marketing refers solely to the promotion or advertising of products with environmental characteristics. Terms like Phosphate Free, Recyclable, Ozone Friendly and Environmentally Friendly are some of the things consumers most often associate with green marketing. While these terms are green marketing claims, in general green marketing is a much broader concept, one that can be applied to consumer goods, industrial goods and even services. Thus, green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet, defining green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological Marketing. The term “Green Marketing” first came into existence sometime in late nineteen eighties to early nineties. The American Marketing Association (AMA) organized the first workshop on “Ecological Marketing” in 1975. The proceedings of this workshop resulted in one of the first books on green marketing entitled “Ecological Marketing” (Henion and Kinnear 1976a).

2. Review of Literature

This paper presents a review of related literature on the subject under study as presented by various researchers. The goal of a literature review is to look at previous work in order to gain meaningful insight into the research topic. The literature review lays the groundwork for the current research, allowing the researcher to present a valid argument while also providing information on what has previously been done in the subject area.

Lavanya K. and Dr. P. MadhanKumar (2019) found that consumers are increasingly concerned about environmental protection, showing a positive attitude towards green products. Awareness and acceptance of green products, from food to daily use items, have risen significantly, and consumers believe that companies marketing these products are genuinely eco-conscious. Despite price sensitivity among Indian consumers, the study emphasizes the need for mass adoption of green products to ensure environmental sustainability. Marketers must focus on innovative, cost-effective manufacturing, effective distribution, and impactful marketing to maintain consumer interest and brand recall. Dr. Gunjan Anand and Dr. Sopnamayee Acharya (2020) identified key factors affecting consumers' perceptions and willingness to pay for green products, including environmental concern, price, safety, well-being, and accessibility. Their study highlights the significant impact of these factors and product categories on consumer spending behaviour, offering insights for governments, policymakers, and marketers to capitalize on market potential. Despite general awareness of green concepts, there are variations in understanding. The study suggests educational campaigns focused on safety, health, and personal benefits, and emphasizes the role of government in promoting consumer awareness and mandating environmental accreditation for industries. Padmaja Vani (2021) concluded that most Bangalore customers are aware of green marketing concepts, with awareness linked to gender and education level, but not to age or income. Customers' decisions to buy green products are influenced by various attributes, and there is a strong willingness to accept green products. However, entrepreneurs and the government need to further promote green marketing. Despite growing environmental concerns and a shift towards sustainable development, a major barrier remains: doubts about product performance. The study emphasizes that consumers prefer eco-friendly products to feel better about their environmental impact. Dheenadhayalan A. et al. (2023) examined consumer perceptions and attitudes towards green marketing practices and products using a structured questionnaire. The study found high awareness and strong green values among consumers, providing valuable insights for marketers. It highlighted the need for marketing campaigns to emphasize green products due to consumers' high green values. Regression analysis revealed that fundamental green values, awareness of green products and practices, and perceptions of the seriousness of marketing organizations in green advertising significantly influenced consumer preference for green products over traditional ones.

3. Statement of the Problem

Consumers today care more about how the products they use affect the environment. They don't just consider price, quality, and availability; they also think about where and how products are made. Even if some products aren't completely eco-friendly, they still help reduce environmental impact. Green products, like energy-efficient devices and recycled materials, improve overall quality and performance. Organic foods, for instance, are better for the soil, reduce toxins, and taste better while being healthier. Eco-friendly products, despite being more expensive at times, are preferred by environmentally conscious people. This study aims to understand how consumers in Dimapur, Nagaland, feel about green products, looking at factors like awareness, perception, and satisfaction.

The research problem can be investigated from the following point of view:

Is the consumer willing to pay more premiums for environmentally sound products?

Which is the most influencing factor among purchase of green product?

Where is the trend for green consumers heading?

4. Objectives of the study

To better understand green consumerism in Dimapur, the author divided the study into three categories: green product awareness concerns, factors influencing consumer purchases of green products, and consumer perceptions and preferences for green products.

5. Hypotheses

• There is no significant difference between male and female with regards to awareness of the consumers about the green products.
• There is no significant difference between mean ranks towards the factors influencing the purchase of green products.
• There is no relationship between consumer perception and preference.

6. Research Methodology

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Research methodology includes sample design, source of data, tool for collecting data and analyzing data.

6.1 Sources of Data

This study utilized both primary and secondary data. Primary data were collected afresh through structured questionnaires administered to a large sample size. Secondary data were sourced from published books, reports, journals, periodicals, bulletins, brochures, and websites.

6.2 Sample Size and Technique

A sample of 63 respondents was selected from Dimapur, Nagaland, using simple random sampling. This method was chosen for its convenience in accessing the sample units.

6.3 Tools for Analysis

Following data collection, analysis and interpretation were conducted in alignment with the study's objectives. The data were analysed using SPSS software, employing techniques such as tabulation, percentages, mean, standard deviation, correlation, one-sample T-test, and F-test.

7. Data Analysis and Interpretation
7.1 Demographic Profile

The data were collected from 63 consumers of Dimapur District and Table 1 shows the classification of these respondents based on Gender, Age, Educational qualification, Occupation and Annual income.

Table 1: Demographic Profile of the Respondents

Table 1 show that the general profile of the 63 respondents. From the data it is observed that 32 (50.8%) male respondents form a slightly bigger category than the rest 31 (49.2%) female respondents. Regarding the age wise categorization of respondents the table indicates that 29 (46.0%) respondents are between 21 and 40. Below20 and above 60 years of age include 7 (11.1%) of respondents. Between 41 and 60 years of age include 20 (31.7%) of respondents. Among the respondents most of them are degree holders 28 (44.4%), below degree qualification include 17 respondents and above degree qualification include 16 respondents. Out of 63 respondents 26 (41.3%) are employees, 7 (11.1%) are engaged in business, 6 (9.5%) are planters, 11(17.5%) are house wife and remaining 13 (20.6%) are students. It is clear that most of the respondents 32(50.8%) are belonging to an annual income of Rs. 300001-500000.About 20.6% are having income of Rs.100001-300000 and about 15.9% are below Rs. 100000.Also 12.7% respondent are having an annual income of Rs.500000 and above.

7.2 Awareness on Green products

To gauge public awareness of green products, the author conducted a survey using 12 questions. They employed a Five-point Likert scale where responses were coded as follows: 5 for fully aware, 4 for partly aware, 3 for no opinion, 2 for not aware, and 1 for not at all aware. The findings based on these responses revealed the following insights:

To assess public awareness of green products, a survey was conducted with 12 questions using a Five-point Likert scale: 5 for fully aware, 4 for partly aware, 3 for no opinion, 2 for not aware, and 1 for not at all aware. The findings based on these responses are as follows:

Symbols indicating eco-friendly products.

Health benefits associated with green products.

Innovations in green products.

Environmental concerns related to green products.

Price considerations for green products.

Standards used in green product manufacturing.

Sales promotion strategies for green products.

Unique features of green products.

Marketing aspects of green products.

Ingredients used in purchased green products.

Government and non-government initiatives for green products.

Legal issues regarding green marketing and products.

Reliability coefficients for each item were calculated and are presented in Table 1.

Table 2: Descriptive statistics – Awareness on Green products

Table 2 shows the descriptive statistics of the twelve variables which indicate the extent of awareness about green product among consumers. The variables with high mean score are Symbols to use eco-friendly products (Mean Score = 3.12) followed by Health advantages of using green products (Mean Score = 3.05), the least mean score is for the Legal matters about green marketing and product (Mean Score = 1.90). The awareness level of respondents related to marketing mean score are similar mean score are similar only a slight difference arise in mean score.

7.2.1 Hypothesis testing

Table 2 shows mean scores of the awareness of male and female category about green product and the result of t-test. T-test was conducted to see whether any significant difference exists between male and female consumers regarding awareness of green product. The following hypotheses were formulated for this purpose.

H0: There is no significant difference between male and female with regards to awareness of the consumers about the green products.

H1: There is significant difference between male and female with regards to awareness of the consumers about the green products.

Table 3: Independent Sample T-Test - Gender and awareness

Table 3 reveals the result of independent sample t-test, It shows gender wise awareness level of green marketing and products. The p-value of the independent sample t-test depicts that there is no gender wise difference in the awareness level of green marketing and product as the p-value of Levene’s Test for equity of variance (.057) is greater than .05. Therefore null hypothesis is accepted. That is male and female respondents are almost equally aware of green marketing, product and practices.

7.3 Purchasing pattern of green product

Identify the pattern of purchase of consumer’s use multiple choice questions, which help to understand the purchasing pattern of consumer of Dimapur District.

Table 4: Purchasing pattern of green product

The table 4 shows the purchasing pattern of green products. The respondents mainly prefer green products of electronic items and health care and cosmetic items. It also shows that they are very conscious about their health; because they are including green food products in their purchasing pattern. They are also including cleaning products and consumer durables in their purchase. There is also the consumption of cloths, kitchen utilities. It is clearly evident that majority (21.9%) of respondents prefer green product of electronic items.

7.4 Factors influencing the purchase of green products

To identify factors which are influence the purchase of green product ranking method is used. Respondents rank the most important to least important. Rank is given to most important factor is 1 and least important factor is 8.

Table 5: Descriptive statistics - Factors influencing purchasing behaviour

The table 5 indicates the descriptive statistics of factors influencing the purchase behaviour of green products by the consumers of Dimapur District. The most important factor have least mean score so here quality have least mean score (2.78) and it is the most important influencing factor to purchase green product. Health advantage (mean score = 3.27) is another important factor to purchase green product. The least important factor is which have high mean score i.e., offer (Mean score = 6.48)

7.4.1 Hypothesis testing

To identify factors which are influence the purchase of green product ranking method is used. Respondents rank the most important to least important. Friedman test is used to interpret the result. Friedman test is identifying the significant difference between mean ranks toward the factors influencing the purchase of green products.

H0 = There is no significant difference between mean rank towards the factors influencing the purchase of green products.

H0 = There is significant difference between mean rank towards the factors influencing the purchase of green products.

Table 6: Descriptive statistics - Factors influencing purchasing behaviour

From the above table 6 understand that most important factor influence the purchase of green product is quality. Quality have the least mean rank (2.78) so quality is consider as most important factor. Next important factor that influence purchase of green product is health advantage (Mean rank =3.29). The least important factor is the variable which has highest mean rank. Here the least influencing factor of purchasing green product is offers available (Mean rank =6.51). Advertisement also consider as least influencing factor by the respondents.

7.5 Relationship between perception and preference
7.5.1 Consumers perception towards green products

The section deals with the analysis of data for assessing customers’ perception towards green products. Descriptive statistics like mean and standard deviations are used for evaluating the collected data. Five point Likert scaling technique has been used for collecting the data. The response are coded as 5 for strongly agree, 4 for agree, 3 for no opinion, 2 for disagree and 1 for strongly disagree.

Table 7: Descriptive statistics- Perception towards Green products

The table 7 shows the eleven variables related to consumers perception of green products. The highest mean score (4.45) is to the variable maintaining healthy life by the use of green products. Other variable which have high mean score are green products reduce environmental pollution (mean score=4.35), green products are safe to use (mean score= 4.29), green products are costly than non-green products (mean score=4.16) and special sales promotion activates are needed for marketing of green products (mean score=4.10). The least mean score (mean score=3.37) to the variable willingness to buy green products even those have premium price.

7.5.2 Preference on green products

The section deals with the analysis of data for assessing customers’ perception towards green products. Descriptive statistics like mean and standard deviations are used for evaluating the collected data. Five point Likert scaling technique has been used for collecting the data. The response are coded as 5 for strongly agree, 4 for agree, 3 for no opinion, 2 for disagree and 1 for strongly disagree.

Table 8: Descriptive statistics-Preference on green products

The table 8 indicates descriptive statistics of various reasons for choosing green products by consumers of Dimapur District. The most important reason is respondent pay attention to the opinion of family members and friends it help them to choose green products (mean score = 4.19). Next important reason for preference is green products are good for the health. The respondents another reason for preference are less damage to the environment (mean score = 4.02) and satisfaction of product already bought (mean score = 4.00). The least mean score (3.40) is for the variable green products are purchased on planned decision.

7.5.2.1 Hypothesis Testing

Correlation analysis is a statistical tool used to describe the degree to which one variable is linearly related to another. Therefore, to find the relationship between factors influencing Perception and preference towards green product are shown in Table 8

H0 = There is no relationship between consumer perception and preference.

H1 = There is relationship between consumer perception and preference.

Table 9: Correlation of perception and preference

From the Table 9 find that perception and preference are positively correlated (.832). Here the p-value is less than .01 so H0 is rejected and accept H1.It means there is relationship between consumer perception and preference towards green products.

8. Major Findings

Based on the analysis of the data conducted following are the major findings of the study. The data was collected from 63 respondents. From the data it is observed that 32 (50.8%) male respondents form a slightly bigger category than the rest 31 (49.2%) female respondents. Regarding the age wise categorization of respondents the table indicates that 29 (46.0%) respondents are between 21 and 40 that means most of the respondents is included in this category. Below20 and above 60 years of age include 7 (11.1%) of respondents. Between 41 and 60 years of age include 20 (31.7%) of respondents. Among the respondents most of them are degree holders 28 (44.4%), below degree qualification include 17 respondents and above degree qualification include 16 respondents. Out of 63 respondents 26 (41.3%) are employees, 7 (11.1%) are engaged in business, 6 (9.5%) are planters, 11(17.5%) are house wife and remaining 13 (20.6%) are students. It is clear that most of the respondents 32(50.8%) are belonging to an annual income of Rs. 300001- 500000.About 20.6% are having income of Rs.100001-300000 and about 15.9% are below Rs. 100000.Also 12.7% respondent are having an annual income of Rs.500000 and above.

The descriptive statistics of the twelve variables which indicate the awareness among consumers regarding green products. The variables with high mean scores are Symbols to show eco-friendly products (mean score=3.10), health advantage of using green product (mean score=3.06), environmental concern of green product (mean score=2.76). It means that consumers are aware about symbols shown in green products, its health advantage and environmental concern of green products. Majority of respondents are not aware about legal matters about green marketing (mean score=1.90), green initiatives taken by government and non- governmental entities (mean score=1.98), innovations in the field of green products (mean score=2.10) and the standardization measures used in green products (mean score=2.06). Because these variables have least mean score compared to other variables.

The result of independent sample t –test, conducted on the mean scores found that there was no significant difference between the male and female groups with regard to awareness on green products. There for the awareness about green product is not influenced by Gender.

From the multiple responses from the consumers it was found that most of the respondents prefer electronics items, health care and cosmetic product and food product than consumer durable and clothing products.

The descriptive statistics of factors influencing the purchase behaviour of green products by the consumers of Dimapur district reveal that, The most important factor have least mean score so here quality have least mean score (2.78) and it is the most important influencing factor to purchase green product. Health advantage (mean score = 3.27) is another important factor to purchase green product. The least important factor is which have high mean score i.e., offer (Mean score = 6.48).

It is found that most important factor that affects purchase decision is quality of the product and next most important factor is health advantage of the product.

The consumers are very much conscious about their health. Because health advantages of the product affect their purchase behaviour and also consumers include health care products in their purchasing pattern. Advertisement of the green product doesn’t affect the respondents purchasing behaviour.

The response to eleven variables related to consumers perception of green products, the highest mean score (4.45) is to the variable maintaining healthy life by the use of green products. Other variable which have high mean score are green products reduce environmental pollution (mean score=4.35), green products are safe to use (mean score= 4.29), green products are costly than non-green products (mean score=4.16) and special sales promotion activates are needed for marketing of green products (mean score=4.10). The least mean score (mean score=3.37) to the variable willingness to buy green products even those have premium price.

The consumers are agreeing that green product is help to maintain a healthy life and help to reduce environmental pollution.

Respondents have the opinion that special sales promotion activities are needed for marketing of green products. Respondents are not very much interested to pay premium price to buy green products.

The descriptive statistics of various reasons for choosing green products by consumers are; pay attention to the opinion of family members and friends it help them to choose green products (mean score = 4.19). Next important reason for preference is green products are good for the health (mean score=4.15). The respondents another reason for preference are less damage to the environment (mean score = 4.02) and satisfaction of product already bought (mean score = 4.00). The least mean score (3.40) is for the variable green products are purchased on planned decision

Majority of respondents pay attention to the opinion of family and friends and they are satisfied with the green product they purchased earlier.

It is noted that consumers prefer green products because they are good for health and also they have the opinion of buying brand which less damage to the environment.

The result of correlation indicates that there is consumer perception and preference towards green product is correlated. That means there is relationship between consumer perception and preference towards green products.

9. Recommendations

Based on the above findings following are the recommendations put forward. Green products and its usage should promote to increase healthy life and environmental advantage.

Markets should make new and innovative promotion activities and appreciate positive attitude towards green products among the consumers of Dimapur district to increase the usage of green products. And also increase their willingness to purchase the green products if it has higher price compared to non-green products.

Customers should made aware about environmental advantage, legal matters regarding green products, standardization measures used in green products. Business management need to communicate the environmental and social impact associated with the product use, waste avoidance and disposal etc.

Promoters or markets use appropriate Medias to create adequate awareness of green products to consumers through TV, Radio, social media, print media and outdoor publicity.

Markets should try to highlight the quality and health advantage of the green products because these are the most important influencing factors which affect consumers purchase decision.

Government should popularise their initiatives regarding green products to increase the awareness of consumers through different Medias. And also government should make tax reduction to promote and encourage the consumption of green products.

Thus, to promote green products as the wave of the future, the focus should be on product stewardship and product marketing. Because evolving and changing customers’ views drive business product development, it is the customers’ expressing their newly found interest in green products because they are focusing on health advantage and today’s consumers are more environmental conscious that should prompt businesses leaders to refocus their efforts and dedicate their resources to explore how they can harness this new and potentially competitive advantage to increase companies’ bottom lines while satisfying the customer base.

10. Conclusion

In conclusion, this study has illuminated critical insights into consumer perceptions and preferences for green products in Dimapur, Nagaland. The findings underscore a diverse demographic profile among respondents, primarily educated individuals aged 21-40 from middle-income backgrounds. While awareness of green products is moderate, consumers show greater familiarity with eco-friendly symbols and health benefits compared to legal aspects and government initiatives in green marketing. Quality and health benefits emerge as primary drivers of consumer purchase decisions, outweighing price considerations, although there remains reluctance towards paying premiums for green products. Despite these challenges, consumers exhibit positive perceptions towards green products, recognizing their role in environmental preservation and health enhancement. These findings suggest that enhancing consumer awareness, ensuring product quality, and adopting competitive pricing strategies are pivotal for promoting green products effectively in Dimapur. For marketers and policymakers alike, these insights offer a roadmap to cultivate a more environmentally conscious marketplace while paving the way for future research to delve deeper into other factors influencing consumer behaviour and the efficacy of diverse marketing approaches in sustainable product promotion.

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