Consumers in the 21st century are more informed and discerning than ever about the products they buy. This is positively obvious with regards to assessing the ecological effect and manageable acts of the brands they support. That is why many of the world's most significant and effective organizations are seeking green marketing drives. Green marketing has become an essential business strategy as consumers' awareness of environmental issues has grown. Purchasers are progressively worried about the natural effect of their utilization decisions, and they are bound to purchase items or administrations that line up with their ecological qualities. Businesses can draw in these environmentally conscious customers, set themselves apart from their rivals, and enhance their brand image by employing green marketing strategies.
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According to Polonsky (2011) green marketing is characterized as the work of a company’s strategy for its product, price, place, and promotion effectively in a eco-friendly manner. As per him, all promoting strategies ought to minimize unfavorable effects on the environment.
According to Chitra (2007) the green marketing mix is the blend of product, price, place, promotion, process, people, and physical evidence, and further discusses how the product should be green, to be used for healthy consumption for the target audience. The price is the monetary value or the worth paid by the customers. The physical distribution could be involved in the logistics and store keeping with an eco-friendly mindset in the distribution of products to end customers. He further discussed regarding eco-friendly approach to creating awareness and the process of eco-friendly products for final consumption.
Abzari, Shad, Sharbiyani, and Morad (2013) and Mahmoud, Ibrahim, Ali, and Bleady (2017) identified a substantial positive association between green marketing mix and consumer purchase intention. Mahmoud, Ibrahim, Ali, and Bleady (2017) found that environmental information acts as the mediator of this connection.
Leonidou, Katsikeas, and Morgan (2013)’s analysis directed towards the application of green marketing programs by the company had noteworthy performance payoffs. Consequences implied that green products and distribution certainly affected product-market performance, whereas green pricing and promotion boosted its yield on assets. Furthermore, industry-level environmental reputation leads the link between green marketing mechanisms and firms’ product-market and financial performance.
Green product helps conserve and recover the environment along with the preservation of energy or resources and lessening or omission of the use of poisonous materials, pollution, and wastes (Ottman, Stafford, & Hartman, 2006). In other words, the green product is the one that sustains less harm to the nature (Dahl & Persson, 2008).
Yaacob and Zakaria (2011) advised that in broad-spectrum, customers tend to buy green products as it works as a one step closer towards environmental improvement. In few cases, direct personal benefits, namely the health benefits of organic products consumed by them or be the energy-saving part in electronic devices are commonly observed.
Suki (2016) conferred that eco-friendly product purchase was wedged by knowledge for green marketing as well as the functional value quality. Functional value price, emotional value, and conditional value were not affected. According to Ranjan and Kushwaha (2017) buying decision is sturdily influenced by views in favor of green products.
According to a study by Rahbar and Wahid (2011), ideally, Malaysian consumers tend to purchase more of green products when it comes to cleaning products or pesticides over the normal conventional ones.
Chang (2011) in his study analyzed that considerable consumers find the price of eco-friendly labeled products more expensive than non-eco-friendly.
According to D'Souza, Lamb, and Taghian (2006) consumers inclined towards green products will continue towards their choice even though the quality served is comparatively inferior but will closely check the green labels for information. Price-sensitive customers check for all relevant information regarding green labels before making a buying decision.
Green prices ought to be economical and competitive in order to keep up with the sales (Soonthonsmai, 2007). It is presumed that in the beginning the cost and price of green products will be on the upper end but over a period of time, it will be less due to awareness, experiential learning, increase in knowledge, and advancement in technology (Fan & Zeng, 2011).