Academic journal article Iranian Journal of Management Studies

A Study on the Relationship between Consumer Attitude, Perceived Value and Green Products

Academic journal article Iranian Journal of Management Studies

A Study on the Relationship between Consumer Attitude, Perceived Value and Green Products

Article excerpt

Introduction

The evolution of industry and business has given rise to a number of facilities and conveniences for mankind. This evolution has gone to such an extent that the world has become a global village with interconnectivity of businesses taking place across the globe. Although globalization has benefited humanity by paving the way for business to be done faster, more informed, and results oriented, multifaceted adversaries have also sprouted. One of the adversaries is the degradation of natural resources due to increased industrial activity. It is the primary concern of governments and corporations alike to curb such industrial and business practices which are becoming a cause of depletion of natural resources and at the same time to replace existing unwholesome business processes with environmentally friendly practices beneficial for the environment and human resource (Peattie, 1999).

As part of this concern, one of the earliest efforts was to introduce products which were supposed to be environmentally friendlier (recycled materials, non-toxic ingredients) and had utilitarian status for consumers (D'Souza et al., 2006). Considering the benefits of green products, marketers are persistently transforming conventional making of products into invulnerable ways like adoption of recycled material and the use of organic substances in the manufacturing process. Developing countries still lag behind in the phenomenon but follow an increased pace of such practices internationally. What makes acquiring such practices out of reach is inertia possibly due to lack of knowledge, income, and the perceived cost associated with such products. Here, initiatives can be taken by the governments and organizations to develop a state of readiness between employees and end users to become proenvironmental. Special works and programs have been developed by international bodies like United Nation Environmental Programs (UNEP, 2009); Codes and Standards for product labeling, and recycling Strategies at the government level, Company strategies in terms of Corporate Social Responsibility (CSR), and adoption of recycling behavior by the households during shopping and consumption.

According to the survey of OECD (2008b), it is forecasted that by 2030 a more environmental decline will happen due to increased air, road, and industrial pollution related to the congestion of commercial activities. In this regard, it is time to introduce and implement programs for environmental standards and alternate energy resources, both renewable and non-renewable resources. Since the concern of all such movements is to put production and consumption practices in the way of sustainability, the authorities should make the manufacturing concerns realized to make the process of manufacturing green; having recycled content with low toxicity and at the same time biodegradable, eventually improving sustainability and consumer behavior (Tukker, 2006). With regard to the consumers, product-labeling strategies, education of consumers towards green purchase, and marketing green products can be vital for modifying consumer behavior. All these strategies for green purchase would be helpful when formulating a strong perceived value for consumers.

Literature Review

Understanding attitudes can help organizations better assess how consumers view green products and the consumers' willingness to purchase green products. Attitude refers to individuals' state of readiness backed by their respective experiences and influences in the adoption of objects (Allport, 1935). Also, individual's attitude towards any object is based on the knowledge he or she has acquired through certain sources (family, social, cultural, global) which is coupled with the actions of engagement. The next question that comes to mind is the attitude formation which is measurable through surveys and modifiable through marketing programs. The marketing programs and promotional tactics should aim at addressing the cognitive and emotional components of consumers' attitude. …

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