Academic journal article ASBM Journal of Management

Impact of Energy Efficiency on Consumer Purchase Decision: A Study on Household Products in India

Academic journal article ASBM Journal of Management

Impact of Energy Efficiency on Consumer Purchase Decision: A Study on Household Products in India

Article excerpt


India is a countiy of varied colors - ethnic groups, income levels, geographies, religions, languages, urban/rural mix which leads to a lot of variation in the tastes and likings of the consumers. Hence understanding the need of the Indian consumer and planning as well as forecasting their change in purchase behavior is always a challenging exercise for organizations during launch of new products and sub categories. The external analysis by organizations also includes competition analysis and the changing market analysis. They have to continuously keep track of global companies extending their brand in the Indian market and also the Indian companies innovating to extend their product portfolio resulting in diminishing the advantages of KSFs of existing products.

The natural world has been destroyed by the humans over the past four decades. On the other hand, the objects created by human that has come for more substitution and play role. These are critical factors in the direct and indirect destruction of natural resources. People, organization and institute from across the globe have started to realize the problem to prevent the environment from critical state. Therefore in 1960 a new marketing philosophy was invented known as "Green Marketing" where the consumer need of ecofriendly products was focused.

Information about the range of products available while shopping for a particular product is available to the Indian consumer through advertisements in newspaper, radio channels, television, Internet, and many other e-media. The buying behavior of the electronic goods is strongly influenced by the consumers who are strongly influenced by unusual prices and offers, are averse to loss, find it easier to compare difference between the products, are resistant to change and base judgment on the basis of their experience. Literacy level has also increased across India through conscious efforts made by social organizations in educating all members of the Indian household to be able to read and write in either English or Hindi (National Language of India) or their native state language. This has led to the lady of the household, who plays a major role in making decision during purchase of home appliances to make an informed decision.

One such area that has created significant awareness amongst the Indian consumer is the use of Green Technology and Energy efficient Home appliances. Globally depleting fuel resources like coal, oil and gas has triggered discussions in various forums in India to emphasize the significance of renewable energy sources like solar, hydro, wind and bio gas. Anticipating a shift of the consumer mindset towards Greener Technology products, organizations have identified this niche market and introduced a range of products for various customer segments.

Literature Review

A buying decision process describes the process a customer goes through when buying a product. This buying decision model has gone through lots of interpretation by scholars. Although the models vary, there is a common theme of five stages in the decision process. These stages were first introduced by John Dewey in 1910. The stages are:

1. Problem/Need recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post-purchase behavior

Don Peppers and Martha Rogers 1993 said in their book "The One to One Future" that in order to treat different customers differently, one must be able to configure different products, services, and offers to the individual preferences of different customers. However, literature has also suggested (Marie Cervellon, Lindsey, 2011) that during the purchase decision, consumers do not understand the meaning of all terms and labels used to describe and guarantee green products.

The research which has been conducted on the issue of why consumers choose organic is very detailed and conclusive. It highlights three main types of green consumers, along the primary motivations to purchase green (Cervellon, 2010)

* the health-conscious consumer

* the environmentalist

* the quality hunter

Consumers might have a mix of these motivations, but nonetheless, one predominates in purchase context. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.