2.

1 Review of the Literature

2.1.1 Green Marketing

On a daily basis, we can routinely found much news about the global environmental issues appearing in the popular press, magazines, television news shows and other form of media. Global environmental problems such as dwindling natural resources, pollution, acid rain and global warming by now becomes a challenge to the human live. According to Dunlap (1991), media, legislator and also the society began to pay attention and concern about the environment due to the broad range of threats to environmental quality. According to Menon & Menon (1997), green marketing become a part of the overall corporate strategy (Prakash A., 2002). The term of Green Marketing appear often in the press and was using by the organization which goes green (Polonsky, 1994). However, public do not understand what it is and always link it to the selling or advertising the goods with environmental characteristics. Truly, green marketing has a broad range of concept, which can be applied to consumer goods and services. Polonsky (1994) state that, green or environmental marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment.

All forms of media, these days, like: paper press, Television talk shows etc., is filled with news about the Global environmental issues. These issues, which include; increasing pollution of all kinds, acid rain, rapidly diminishing natural resources and most important of all: global warming, have all formed an environment where life for humans is becoming difficult day by day.

Dunlap (1991) was of the view that everyone started taking interest in the safeguard of environment because of the deteriorating quality of the eco system. Menon and menon (1997) were of the view that companies start looking into incorporating Green Marketing when formulating strategies and goals for themselves (Prakash A., 2002). The term Green Marketing is widely used by corporations who take into account the affect their decisions would have on the environment (Polonsky, 1994). Green Marketing is often misunderstood to mean marketing of those products which help in making the environment better. The term, however, means much more than that; it may be applicable to common everyday products. According to Polonsky (1994), all processes leading to the manufacture of consumer goods, that are created to meet with the daily needs of the public and have a nominal effect on the quality of environment is what green marketing is all about. As cited in An Introduction to Green Marketing by Polonsky (1994), there are several literatures suggested reasons for the increased use of green marketing by organizations. The five liable reasons are: 1) Organizations identify environmental marketing to be an occasion that can be used to achieve its objectives (Keller 1987; Shearer 1990), 2) Organizations believe they have a moral obligation to be more socially responsible (Keller 1987; McIntosh 1990; Shearer 1990; Freeman & Liedtka 1991; Davis 1992), 3) Governmental bodies are forcing firms to become more responsible (NAAG 1990), 4) Competitors' environmental activities pressure firms to change their environmental marketing activities (NAAG 1990), 5) Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior (Azzone & Manzini 1994).

Polonsky (1994) explains in An Introduction to Green Marketing, the reasons why Green Marketing has become so popular. The five most important reasons are: 1) corporations are mostly interested in obtaining high profits and they believe that adopting this technique would help their motives (Keller 1987; Shearer 1990), 2) Corporations who are more socially conscious see it as a way of fulfilling their duty towards the society (Keller 1987; McIntosh 1990; Shearer 1990; Freeman & Liedtka 1991; Davis 1992), 3) many governments have laid out regulations which require organizations to be more careful toward the environment (NAAG 1990), 4) most firms are also pressurized into being more responsible if their competitors are going towards green marketing (NAAG 1990), 5) there are huge costs involved in disposing of chemical waste and some organizations avoid it by using materials which are less harmful to the environment(Azzone & Manzini 1994).

Intended to success in green marketing, it requires efforts from different parties such as consumer, organization, and government. Consumers who desire for clean environment, they have the willingness to pay more for green product. Government has to put in some effort to persuade their citizen to become more environmental friendly. Besides, government also can control the level hazardous that the factories produce. With the government regulation and the co-operation from their citizen, green marketing that the firms bring in will be run more efficiently in the future.

Much effort is needed from all the individuals involved, to be successful in environmental marketing. Socially responsible buyers are attracted towards products which pose minimum threat to the environment even if they have to pay high prices for that. It is up to the governments to formulate regulations which promote a behavior of social responsibility among the public.

They can also stop manufacturing concerns from dumping huge levels of chemical waste, harmful to the environment. If the governments and the citizens work hand in hand in creating a better environment, the idea of environmental marketing will flourish and become successful for times to come.

Green marketing is considered as one of the major trends in modern business (Kassaye, 2001; McDaniel and Rylander, 1993; Pujari and Wright, 1996; Simms, 1992). The demand for ecological products and sustainable business activities was determined by the customers growing awareness concerning environmental issues, pressure from government especially in industrially developed countries, competitive pressure as well as cost and profit issues (Polonsky & Michael Jay, 1994). In the year 2000s, Gurau & Ranchhod (2005), Ottman (2007) found that, many green products have significantly improved and recovered consumer confidence due to the reasons of the implementation of more advanced technology, stricter state enforcement on deceptive claims, government rules and incentives as well as closer scrutiny from various environmental organizations and the media.

Peattie and Crane (2005) have found five marketing practices which vulnerable the development of green marketing which also effectively hampered the development of the mainstream of marketing in the past. They are green spinning, green selling, green harvesting, entrepreneur marketing and compliance marketing. Green spinning is taking a hasty approach by using relations to refuse or discredit the publics criticisms against the companys practices. Green selling means that organization taking an opportunistic approach by adding some green claim to existing products with the objective to enhance sales. Follow by green harvesting; which means that the company become enthusiastic about the environment only when greening could result in

cost savings such as in terms of energy and material input inefficiencies, package reductions and etc. Then, the company also will practice the entrepreneur marketing which means that they will develop the inventive green products to market without truly identify with what the consumers actually need. Lastly, the compliance marketing is the company use easy conformity with implemented or expected environmental legislation as an opportunity to promote the companys green credentials without taking initiatives to go beyond responding to regulations.