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 JOHN PAUL UNGOS VINCENT PEDENES February 2011

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.

_____________ DATE

DR. RODELIO L. BATHAN 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 APPROVAL SHEET ACKNOWLEDGEMENTS DEDICATION TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page i ii iii iv vi vii viii

Chapter I. 1.1 1.2 1.3 1.4 1.5 1.6 1.7 II. 2.1 2.2 2.3 2.4 2.5 III. 3.1 3.2 3.3 3.4 3.5 IV. THE PROBLEM AND ITS BACKGROUND Introduction Background of the Problem Theoretical/Conceptual Framework Statement of the Problem (Research Hypotheses) Significance of the Study Scope and Delimitation Definition of Terms REVIEW OF RELATED LITERATURE AND STUDIES Local literature Foreign literature Local Studies Foreign Studies Relevance to the present study METHODOLOGY Research Design Population, Sample and Sampling Techniques Research Instruments Data Gathering Procedure Statistical Treatment of Data PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

V.

SUMMARY OF FINDINGS, CONCLUSIONS & RECOMMENDATIONS Page | iv

5.1 Summary 5.2 Summary of Findings 5.3 Conclusions 5.4 Recommendations BIBLIOGRAPHY APPENDICES CURRICULUM VITAE OF THE RESEARCHERS

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LIST OF TABLES Table 1 Demographic Profile of Respondents . . . . Page

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LIST OF FIGURE Figure 1 Page

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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 ecoefficiency (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 Page | 1

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 (DSouza 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 socioenvironmental 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 (DSouza 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). Page | 3

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 models 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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CONSUMER DEMOGRAPHICS
(Gender, Age, Education, Income)

ENVIRONMENTAL BELIEFS

ATTITUDES TOWARD GREEN MARKETING

CONSUMER INTENTIONS AND BEHAVIORS

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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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? Page | 7

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 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. are grouped according to their

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 natures 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 products 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 bodys 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 benefitcost 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 Maslows 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 Germanys Blue Angel, Japans Eco-Mark, Scandinavias 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 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 peoples views and call for better environmental education and governmental leadership (Dunlap, 2006). enables

.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, Page | 18

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 ecolabeled 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. Page | 22

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 nonexperimental 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 Page | 24

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 Likertlike 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; Undecided; 2 = Disagree; and.1= Strongly Disagree. 4 = Agree; 3 =

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

3.4 Data Gathering Procedure Page | 25

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 = __ n where P is the simple percentage 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. x 100

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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 = 7fw N Where wm is the mean 7fw 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. problems of the study. To facilitate the discussion, we shall address each research question directly. The discussions provide responses to the specific research

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 Page | 29

Male Female Total AGE 16-18 19-21 22 & above Total YEAR LEVEL Freshmen Sophomore Junior Senior Total FAMILY INCOME
Less than 20,000

21 29 50 Frequency 14 22 14 50 Frequency 5 12 12 21 50 Frequency 4 25 10 11 50

42% 58% 100% Percentage 28% 44% 28% 100% Percentage 10% 24% 24% 42% 100% Percentage 8% 50% 20% 22% 100%

20,001- 30,000 30,001- 40,000 40,001 or more Total

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 Offices 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 Page | 31

Thoughts and Behaviors of the Respondents on Environmental Activism 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. Average
Legend : 3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

Average 3.06 2.90 2.98 3.00 2.88 2.96

Verbal Interpretation Agree Agree Agree Agree Agree Agree

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 nature and environment, including Student Environmental Action Coalition (SEAC), YouthNoise, Student Conservation Association, Canadian Youth Climate Coalition,

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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 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 being polluters. I make special effort to buy products for ecological reasons. I read labels to see if contents are environmentally safe. I do my best to keep up-to-date on environmental issues. Average
3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

Average

Verbal Interpretation Strongly Agree

1.

3.32

2. 3. 4. 5.

3.32 3.24 3.32 3.24 3.29

Strongly Agree Agree Strongly Agree Agree Strongly Agree

Legend :

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 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 Page | 33

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 1. I believe recycling will reduce pollution. 2. When I think of the ways industries are destroying the environment, I get frustrated. 3. Recycling is important to save natural resources. 4. I am very concerned about how climate change will affect future generations. 5. It frightens me to think that much of the food I eat may be dangerous because of environmental contamination. Average
Legend : 3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

Average 3.70 3.44 3.52 3.58

Verbal Interpretation Strongly Agree Strongly Agree Strongly Agree Strongly Agree Strongly Agree

3.40 3.40

Strongly Agree

The highest degree of agreement was expressed by respondents in the category emotional responses to environmental issues. Respondents indicated that they strongly 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

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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 I would be more willing to recycle if there were a monetary reward. Keeping separate piles of garbage for recycling is too much trouble me. Even if everyone tried to conserve energy at home, it wouldnt make a big impact on energy use. I understand the environmental phrases and symbols on product packages. I feel that I am very knowledgeable about environmental issues. Average
3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

Average 3.06 2.68

Verbal Interpretation Agree Agree Agree

1. 2. 3.

2.26 3.22 3.08 2.86 Agree Agree Agree

4. 5.

Legend :

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 Page | 35

Even if everyone tried to conserve energy at home, it wouldnt 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). 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 Page | 36

Attitudes of the Respondents to Green marketing 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. Average
Legend : 3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

Average 3.72 3.66

Verbal Interpretation Strongly Agree Strongly Agree Strongly Agree

3.64 3.54 3.46 3.60 Strongly Agree Strongly Agree Strongly Agree

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?

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Table 4 Consumer Intentions and Behaviors of the Respondents In Relation to Green Marketing Cognitive and Affective Responses to Green Advertising
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.

Average 3.72 3.66 3.64 3.54 3.46 3.60

Verbal Interpretation Strongly Agree Strongly Agree Strongly Agree Strongly Agree Strongly Agree Strongly Agree

Average
Legend : 3.26-4.00 2.51-3.25 1.76-2.50 1.00-1.75 Strongly Agree Agree Disagree Strongly Disagree

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

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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 Male Female Average 3.23 3.26 F-stat 0.1 F-critical 4.04 Decision Accept Ho. Conclusion No significant difference.

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 16-18 19-21 22 and above Average
3.07 3.16 3.25

F-stat 0.78

F-critical 3.20

Decision Accept Ho.

Conclusion No significant difference. Page | 39

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 Freshmen Sophomore Junior Senior Average
3.18 3.05 3.11 3.25

F-stat

F-critical

Decision

Conclusion No significant difference.

0.77

2.81

Accept Ho.

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 Less than 20,000 20,001- 30,000 30,001- 40,000 Average
2.93 3.28 3.03

F-stat 1.98

F-critical 2.80

Decision Accept Ho.

Conclusion No significant difference. Page | 40

40,001 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 behavior. that demographic variables show little association with environmental

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 Beliefs Attitudes Average 3.16 3.60 t-stat -6.99 t-critical 2.01 Decision Reject Ho. Conclusion With significant difference.

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). Page | 41

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 Consumer Intentions and Behaviors Attitudes Average 3.43 3.60 t-stat t-critical Decision Conclusion With significant difference.

2.72

2.01

Reject Ho.

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 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. willingness to pay higher prices for

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7. The respondents who had stronger environmental beliefs attitudes toward green advertising than those who apathetic.

had more positive

were environmentally

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 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. at reaching those who are already practicing green

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: 19651990. In: Dunlap RE, Mertig AG, editors. American environmentalism: The U.S. environmental movement 19701990. Philadelphia, PA: Taylor & Francis; 2006. pp. 89116. Fuller D. 2009. Sustainable Marketing: ManagerialEcological 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: 3947. Carlson L, Stephen JG, Kangun N. 2006. A content analysis of environmental advertising claims: a matrix approach. Journal of Advertising 22: 2740. 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: 434442. De Young R. 2009. Exploring differences between recyclers and non-recyclers: the role of information. Journal of Environmental Systems 18: 431351. DSouza, 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: 102117. 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: 1622. 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: 14351474. Osterhus TL. 2007. Pro-social consumer influence strategies: when and how do they work? Journal of Marketing 61: 1629. Page | 48

Peattie K, Ratnayaka M. 1992. Responding to green movement. Industrial Marketing Management 21: 103110. 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: 4647. Porter ME, Van der Linde C. 2005. Toward a new conception of the environmentcompetitiveness relationship. Journal of Economic Perspectives 9: 97118. Ritchie JRB, McDougall GHG. 2005. Designing and marketing energy conservation policies and programs. Journal of Public Policy and Marketing 4: 1432. Schlossberg, Howard (2005), "Marketers Warned to Heed Message of 'Ecologism'," Marketing News, (March 30), 6. Walley N, Whitehead B. 2004. Its not easy being green. Harvard Business Review May-June: 4651. 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 Mara and Carmen Almansa-Sez. The private provision of public environment: Consumer preferences for organic production systems. Universidad Pblica de Navarra, Departamento de Gestin 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. Page | 49

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 Philippines TRINITY UNIVERSITY OF ASIA College of Business Administration Quezon City, Philippines January 10, 2011

DR. RODELIO L. BATHAN Dean, College of Business Administration Trinity 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. VILLAFLOR DOM 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: Age: Male 16 18 years old 19 21 years old 22 years old and above Year in College: Freshman Sophomore Junior Senior Female

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 3 = = Strongly Agree Agree 2 1 = = Disagree 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 wouldnt 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 3 = = Strongly Agree Agree 2 = 1 Disagree = Strongly Disagree
SA A D SD

ATTITUDES TO GREEN MARKETING

COGNITIVE AND AFFECTIVE RESPONSES TO GREEN ADVERTISING

1. Green marketing is valuable to society. 2. Green marketing leads people to be more socially
responsible. Green marketing shows the consumer that the firm is addressing consumers' environmental concerns. 4. Green marketing strengthens company image.
3.

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 3 = = Strongly Agree Agree 2 = 1 Disagree = Strongly Disagree SA A D SD

CONSUMERS SPECIFIC BEHAVIORS 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 Selection of Topic Thesis Title Submission and Approval Writing and Submission of Chapter I Writing and Submission of Chapter II Writing and Submission of Chapter III Preparation and Submission of Research Instruments Approval of Research Proposal and Instruments Conduct of Research/Interviews Collation of Data Calculations Interpretation of Data Writing and Submission of Chapter IV Writing and Submission of Chapter V Approval of Written Document for Defense Panel Defense Editing Submission of Final Written Thesis Document

JUNEJULY

AUGUSTOCTOBER

NOV- DEC

JAN-FEB

MARCH

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CURRICULUM VITAE OF THE RESEARCHERS

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