Volume 1, Issue 1 (September, 2011), Poster No. 9
Green Consumer Behavior and Environmental Sustainability Usama Awan1, Shakeel Sarwar1, Muhammad Amir Raza2 Department of Management Sciences, COMSATS Institute of Information Technology, Vehari Pakistan. 2 School of Sustainable Development of Society and Technology, Malardalen University Vasteras, Sweden. 1
Presented at: Venue: Date(s): Article History:
4th international Conference on Environmentally Sustainable Development Abbotabad, Pakistan 24-26,July 2011 Received; August 20, 2011, Received Corrected Proof; August 22, 2011, Accepted; August 25, 2011
Abstract The choice of choosing energy supplier is mainly depends on the consumer behaviour towards environment. Data collected through survey from different cities of Sweden. The purpose of this paper is to examine and evaluate the Swedish consumer knowledge, behavior about environment problems and green energy. This conclusion drawn from analysis shows that to develop Swedish consumer behaviour towards Green Energy companies must carefully design marketing programs and emphasized on community development through using the green marketing efforts. Keywords: Consumer Behavior; Swedish Consumer Behavior; Green Energy; Marketing Strategies
Introduction The world has finite natural resources [1] and inhabitants of this earth face confronting challenge to protect and preserve the earth finite natural resources for their future generations [2]. The preferred mechanism for preserving the global and local environment are such as polluter pays principle, environmental taxes penalties and ecolabelling on products[3]. In 1992 Sweden energy market was restructured, Swedish government taken a number of strategic measures and abolished a number of policy entry barriers in the energy sector. Since energy market was open for competition, so consumer was given choices to choose energy company for their choice [4].
Fig.1 Respondent Reply on choice of energy
Material & Methods.Quantitative research method, data collected
Current Enery Supplier is providing Renwable Energy 60.00% % No of peoples
from 450 respondents from different cities of Sweden, containing 29 questions designed on Dichotomous, Checklist, Likert rating was used to record the consumers response by using six scales .(1) Strongly disagree ,(2) Partially disagree ,(3) Do not know,(4)uncertain,(5)partly agree,(6) strongly disagree.
50.00% 40.00%
30.00% 20.00% 10.00% 0.00% Column1
Yes
No
Uncertain
26.50%
47.75%
25.75%
Fig.2 Respondent Reply: Is there current supplier is providing Renewable energy?
Literature Review Studies show that a 30% gap between behavior and value action in purchasing of green energy [5]. Demographic factors are having more influenced on consumers in buying of green energy [3]. Environmental issues has emerged recently and has attract the people’s attention towards, shifting the consumers behavior towards green energy is important to save the environment of the planet and protecting the health of inhabitants. Hanson [6] and Gerpott [7] have studied the consumer behavior towards green utility products and important factors which determinants the consumer behavior in adoption of green energy. Some research [8] shows that distinct market segments like demographic variables such as age, income and education are positively related to the consumer attitude in environmental Further suggest that the Consumer knowledge and beliefs, about the environment issues is a powerful tool for segmenting the market. Vaccaro [9] discusses that industrialized countries, businessmen and consumers all have become concerned alike about the environmental issues and this has become an opportunity for the Organizations in pursuing an environmental or green marketing.
Choice of energy Greenest Product
Innovations Low Price Social Responsible 0
20
40
60
80
100
120
140
160
Social Responsible
Low Price
Innovations
Greenest Product
Female
61
92
14
17
Male
40
139
13
24
Fig.3 Respondent Reply Why they choose Renewable energy
Growth of the media and developments in information technologies like internet (search engine, marketing, email, e-newsletters, webinars, online communications) and mobile marketing (mobile commerce, mobile CRM, SMS) have emerged as new sources providing the opportunities to the companies to promote their products and services in an environmentally sustainable way. In Sweden, IKEA sourcing 90% energy from renewable resources, in Karlstad IKEA has built “one of the largest Sweden Geothermal installations” to get energy and will also build in many other cities like Malmo Uppsala etc, by 2012 all IKEA stores around the world, will obtained energy and heat from renewable sources. This will help to reduce carbon emission by 2200 tons annually. [10] As Hanson [11] explains that since last few years, firms are switching their conventional energy to (renewable) green energy. For example, Johnson & Johnson, Lowes Home Improvement, Staples, have installed on-site solar Electric systems to provide Green power at some of their facilities. DuPont, General Motors, Interface, are using landfill gas instead of natural gas Other corporations, FedEx Kinko’s, Interface, Pitney Bowes, and Starbucks now obtain at least 10 % of their annual electric load in the United States from renewable resources. Microsoft has launched Windows 7 operating system made energy efficient system a core element that decreases the power consumption of organization energy through it better power management technologies which will reduce the carbon emission and also reduce the packaging material to promote environmentally products.
Conclusions Price is the most important factor either company is green or conventional, female consumers are more conscious about environment and willing to pay extra for green energy. After price, the most influential factor on consumer behavior is social responsibility of the company. Consumer can educate about green products through communication and persuaded benefits are also influenced on consumer in their decision process. Analysis shows that that when consumer makes decision he does not consider only the green product, but he also keeps other factors in mind and influence from society and interprets information as he receives from different sources. Companies can minimize price factor by promoting green product through involving and solving social problems. This research also shows that that the green or non-green companies can improve company image and its reputation through attracting environmental conscious consumers and promote their green efforts through the effective use of media.
References 1 2 3 4 5 6 7 8 9 10 11
Hayes, D. (1990). The Amicus Journal, 12, 24-29. Laroche, M., Bergeron, J., et al. (2001). Journal of Consumer Marketing, 18(6), 503-520. Roberts, J. (1996). Journal of Business Research, 36(3), 217-232. Svensk-enrgi. (2011) Retrieved Apri, 2011, from http://www.svenskenergi.se/sv/Om-el/Fakta-omelmarknaden/ Young, W., Hwang, K., et al. Sustainable Development, 18(1), 20-31. Hanson, S. (2010). Retrieved from World Resource Institute website: http://www.wri.org/stories/2010/09/germanys-green-economy-strategy. Gerpott, T. J., & Mahmudova, I. (2010). Consumer Studies, 34(4), 464-473. Polonsky, M. J., & Mintu-Wimsatt, A. T. (1995). Environmental marketing: Strategies, practices, theory and research. New York: The Haworth Press, Inc. Vaccaro, L. V. (2009). Journal of systems and Information Technology, 11(4), 315-330. REUK.co.uk. (2011) Retrieved July, 2011, from http://www.reuk.co.uk/Ikea-Store-GeothermalHeating.htm Hanson, C. (2011) Retrieved July, 2011, from http://thegreenpowergroup.org/pdf/Installment7.pdf
Abbreviations CRM Customer Relationship Management SMS Short Messaging Services IKEA Ingvar Kamprad Elmtaryd Agunary
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