Impact of Green Marketing Initiatives on Consumer Buying Behavior

IMPACT OF GREEN MARKETING INITIATIVES ON CONSUMER BUYING

BEHAVIOR

IN

DOWNSTREAM SECTOR

Final year project report submitted in partial fulfillment of the requirement

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

IN

OIL AND GAS

Submitted By

MANPREET SINGH

Roll No. R020213089

MBA Oil & Gas Management

Batch (2012-14)

Dr. S.K. Pokhriyal Prof. Sunil Barthwal Head of Department Assistant professor Oil & Gas Department Marketing Department

Certificate of Declaration

This is to certify that the dissertation report on the title ―Impact of Green

Marketing Initiatives on Consumer Buying Behavior in Downstream Sector of Oil

& Gas Industry‖ is a project carried out by Manpreet Singh, a student of MBA

Oil and Gas Management, University of Petroleum and Energy Studies and is

submitted in fulfillment of his dissertation project which is essential for the award

of the Master‘s Degree in Business Administration from the University of

Petroleum and Energy Studies.

This report has not been submitted earlier in the company/University or any other

Company/University/Institution and is an original work of the student.

Manpreet Singh

(MBA Oil & Gas)

ACKNOWLEDGEMENT

This project got materialized with valuable contribution and inputs of many

people. I would like to name a few of them, but there are likely to be many more

persons who have inadvertently not mentioned here. Apologies, for all those I have

failed to mention, but your inputs have been recognized and incorporated.

First of all I submit my sincere thanks to Mr. S.K.Pokhriyal for allowing me to undertake this dissertation project in my last semester.

I hereby express my gratitude to Mr. S.K.Pokhriyal for his invaluable time in

delineating the objectives and scope of the project and guiding me throughout the

project. I also thank Mr. Ranchodrai Yagnik and Mr. Sunil Barthwal for their

kind consideration to spare invaluable time and give precious inputs in completion

of the project. It is due to fruitful discussions with the above mentioned officials

which has enabled us in finalizing the shape and complete the project in due time.

I would also like to thank Mr. Saurabh Jain, Shashank Gupta &Mr. Hasmukh

Shah for enlightening me with the various inputs on Green Marketing.

I would like to thank my parents for their kind support which helped me a lot in completing the project.

Finally, I would like to thank my deity for the moral support.

Impact of Green Marketing Initiatives on Consumer Buying Behavior

A Report by Manpreet Singh

CONTENT

List of Tables ................................................................................................................................. 6

Executive Summary ...................................................................................................................... 7

Introduction ................................................................................................................................... 9

What is “Green Product” or Environmental Product”?......................................................... 11

What is “Green Marketing” or Environmental Marketing”? ................................................ 13

Definitions of Green Marketing ................................................................................................. 15

Green Marketing Mix ................................................................................................................. 16

Green marketing- Reason for Adoption by the Firms ............................................................ 18

GREEN MARKETING – NEED OF AN ERA ........................................................................ 20

Objective of the Study ................................................................................................................ 21

Research Methodology Adopted ................................................................................................ 22

Methodology Adopted for Industrial Sector ........................................................................................................... 24

Methodology Adopted for Households Sector ....................................................................................................... 26

Methodology Adopted for Commercial Sector ....................................................................................................... 28

Methodology Adopted for Vehicle Sector............................................................................................................... 30

State Profile for Haridwar ......................................................................................................... 33

ECONOMY ............................................................................................................................................................... 33

Findings of Primary research & Secondary Research for haridwar district ........................ 37

Hypothesis Testing For LNG Potential in Dahod District ...................................................... 38

OBJECTIVE ............................................................................................................................................................... 38

HYPOTHESIS ............................................................................................................................................................ 38

RESEARCH METHODOLOGY FOR HARIDWAR DISTRICT ........................................................................................... 40

DESIGN OF QUESTIONNAIRE ................................................................................................................................... 42



CALCUAIONS FOR LPG ............................................................................................................................................. 47

Analysis of the responses related to the green marketing initiatives ..................................... 54

CONCLUSION For the study of dahod district ...................................................................... 66

KEY TAKE-AWAYS & CONCLUSION FOR THE STUDY RELATED TO GREEN

MARKETING ............................................................................................................................. 69

Bibliography ................................................................................................................................ 71

Annexure 1: Questionnaire (For the study of attitude & mindset of the consumer) ............ 72

Annexure 2: Questionnaire for Dahod District Study ............................................................. 79



LIST OF TABLES

Table 1 CNG Consumption Norms .................................................................................. Error! Bookmark not defined.

Table 2 Maximum Percentage Switchover for Vehicle Sector ........................................ Error! Bookmark not defined.

Table 3 Gross Calorific Value .......................................................................................... Error! Bookmark not defined.

Table 4 Demand Scenario Variation From Switchover .................................................. Error! Bookmark not defined.

Table 5 Switchover Sensitivity for Industries .................................................................. Error! Bookmark not defined.

Table 6 Year on Year Growth Rate .................................................................................. Error! Bookmark not defined.

Table 7 Maximum Switchover for different fuels at different prices ............................. Error! Bookmark not defined.

Table 8 Assumptions for Households ............................................................................. Error! Bookmark not defined.

Table 9 Assumption for Commercials ............................................................................. Error! Bookmark not defined.

Table 10 Potential Demand ............................................................................................ Error! Bookmark not defined.

Table 11Calculation for the hypothesis testing we considered for wood ................................................................... 44

Table 12 Calculation for the hypothesis testing we considered for LPG ..................................................................... 47



EXECUTIVE SUMMARY

This study has been carried out in order to study the ―The Impact of Green Marketing Initiatives

on the Consumer Buying Behavior in the Oil & Gas Downstream Industry.‖ The study will also

cover the few green concepts like Green Washing, used in the upstream side of the value chain of

Petroleum Industry. The study will also cover the general concepts of Green Marketing like

green marketing, green marketing-mix, and green-washing, green marketing myopia, consumer

awareness and corporate awareness. The shift in the way consumer go about their life has taken

place after increasing the awareness related to various environmental problems. Consumer

attitude has been changed due the effect of this awareness towards the green lifestyle. This

change in the attitude of the consumer has been observed by the various organizations and the

businesses. In the green market industry, the potential has been exploited by the organizations in

order to gain the better competitive edge.

The study under the heading ―Impact of Green Marketing Initiatives on Consumer Buying

Behavior‖ throws the limelight on the concept of Green Marketing and its various aspects. The

study also looks into the numerous ways which are possible for the various consumers and

attributes of corporate related to the concept of Green Marketing.

The study also attempts to cover the following concepts related to Green marketing or

Environmental Marketing:

Why going Green is essential and important.

What is‖ Environmental Marketing‖ or‖ Green marketing‖?

Reason behind launching the eco-friendly products by the manufacturers and marketers.

Green marketing Myopia

Initiatives taken under the concept of Green marketing in the Oil & Gas Industry.

Problems acting as the obstacles in the way while adapting the concept of Green

Marketing.

Green washing and the Myth of ―Green Oil Companies‖.

The ease and the luxury to the human being has been provided by the industrialization and the

various development activities but we have compromised with one of the important factor i.e.

environment. All the development and the industrialization have taken place at the cost of the

environment. The production and manufacturing activities like exploration and production

activities in the oil and gas industry and the process of refining of crude oil and the natural gas

has created many environmental issues. As a result of which, the Indian industry is facing the

strong challenges in controlling the environmental impact of their business activities. Many

questions have been raised related to the degradation of the environment and the demand of the



very quick action has been observed. The scenario can be explained by the one liner i.e. as

follows:

“Man is a complex being: Makes deserts bloom and let lakes die”

The present existing trends used in the Indian industry are also highlighted in the study and the

problems coming before initiating the process or in the mission of Going Green. In context to the

problem coming while taking the green marketing initiatives, what else can be done and what

modified Green marketing initiatives can be adopted for the betterment of the environment and

the human life. Some of the successful initiatives already existing in the world of corporate are

also cited and their usage for the betterment of environment in future is also is discussed.

In the present existing scenario, satisfying the needs of a customer is primary concern and

without compromising with the environment. Even now-a-days customers are also willing to buy

the eco-friendly products. They are also worried about their health and the environment of the

planet. Just like the usage of various products which hampers or affects the environment is also

stopped to few extent. Various initiatives have been taken by the government of the states and

the central government. For example, stopping the usage of polythene carry bags and replacing it

with the bags made up of bio-degradable input.

In the Oil & Gas Industry, the initiative of CNG and Auto-LPG is one of the best examples of the

green marketing initiatives taken by the Indian Oil & Gas Marketing companies. PSUs are taking

initiatives in the field of renewable energy and working on the various Wind and Hydro Energy

projects. The introduction of the unleaded petrol a long time back was one of the important

initiatives taken by the ministry as it was affecting the health and the environment.

Meeting the various standards like Bharat Stage Emission & EURO standards has shown a

positive impact. Companies are supposed to meet these standards while producing the products

like meeting the minimum specification of sulphur etc in the fuel produced by them.

Few of the companies are just using the concepts of Green Marketing unethically just in order to

sell their product in the market. They are just making commitments to the customers that their

product is eco-friendly and does not harm the local environment. But, in actual scenario, they are

not able to meet the minimum criteria.



INTRODUCTION

The problem of environmental sustainability and issues related to the environment are the current

existing problems which are influencing and changing the patterns of human life and activities

on the planet. In the national daily or local daily newspapers, every day it is scary to read the

pieces of information that the effect of air pollution and water pollution is increasing day by day.

With the effect of this increase in the pollution, the human life, human activities, crops, aquatic

life and wild life is getting affected badly. This effect has been penetrating badly into our roots

even very badly. This has led to the many severe problems like low birth weight, premature

birth, still birth and death of the infants. As there is the scarcity of the resources and human

wants are unlimited, it is very imperative for the producers and marketers to efficiently utilize the

resources without compromising with the need of the future generation and meeting the

organizations objective. So, here comes the need of Green Marketing or we can say that it is

inevitable.

Even the consumers of today‘s world are very much aware and they are interested to adapt the

concept of Green Marketing. They are very much interested to work for the protection of the

environment. Evidences from the worldwide have proven this fact that the consumers are aware

and they are highly concerned about the protection of environment. Behavior of the consumers is

also changing now-a-days. This has resulted in growing the green market for the noble cause i.e.

for the protection of environment. The era of sustainable development and socially responsible

product and services has come. So, it is important to create awareness among the consumers to

adapt the green and eco-friendly products. Change in the attitude of the consumers is very much

required and this can be done if the marketers of the product specially green or environmental

products play their role ethically. They have to satisfy or even exceed the customer satisfaction

by delivering them the efficient and eco-friendly product.

It is very important to replace the traditional products with the eco-friendly or can say green

products. For example, in the Oil & Gas industry, in the present scenario the Oil Marketing

Companies are focusing on the renewable sources of energy. They have started investing in the

Solar, Wind, Hydro and Tidal Energy. Recently, HPCL is working on the solar projects and wind

energy projects in the state of Rajasthan.

OMCs are marketing the eco-friendly fuel at their retail outlets. The fuels like Auto-LPG and

CNG has proven to be very effective in the sense of eco-friendliness, efficiency and cost. CNG

in Delhi was introduced only because of the fact that the pollution in the city was increasing like

anything. So, in order to have control on the pollution, gentlemen filed a report in the Supreme

Court for the unlimited increase in pollution. As a result of which, as now Indraprastha Gas

Limited is serving the role of marketer of CNG in the capital of India. Government of India is

working for the control of pollution in the country. Government is building the infrastructure to

serve the Natural Gas as a future fuel to the people of the country. Various pipelines have been



built. For the set up of the City gas Distribution network, PNGRB has also invited the bids for

the 20 geographical areas under the round five bidding process.

Issues related to the health and the sickness is not addressed the way it is required to be. The

main primary reason behind this is that the health facilities in India are not cheaper. It costs more

than the economic reach of the customers. Thus, there arose the need of the eco-friendly and

environmental products, which is fulfilled by the process of Green Marketing.

The role Green Marketing is of utmost importance in making the one‘s life easier and

comfortable. The need for the green products is expressed by the consumers and the companies

try to meet their demands in a very efficient and economical way and launch several eco-friendly

products or products without toxic chemicals. These environmental products are made available

to the customer at the reasonable prices by the help of a marketing process called as Green

marketing. Many of the Indian companies are using the concept of environmental marketing

.This seems to be the right time to choose the option of ―Environmental Marketing‖ or ―Green

marketing‖ globally. Adaption of this technique or concept will emerge with a drastic change in

the country and world. It will be good for the health of human and even good for the other

species in the environment which are getting affected with the increase in pollution. Creating

awareness among the consumers at the global scale is very much required. Awareness regarding

the benefits and the great need of green product is required to be spread.

In fact green marketing is the process of developing products and services and promoting them

to satisfy the customers who prefer products of good quality, which of the same time do not have

a detrimental impact on the environment.



WHAT IS “GREEN PRODUCT” OR ENVIRONMENTAL PRODUCT”?

The product which is typically non-toxic, recycle/reusable, not tested on the animals, does not

pollutes the environment, minimally packaged and originally grown is referred to as the Green

Product. This definition was given by the Ottman in 1998 and Pavan in 2010. The attribute

reflected by the customer while making the green purchase or while buying the green products is

price. If the green products are expensive then the customers are less likely to purchase the green

products.

However, there were a group of environmentally conscious consumers, i.e., more than 80 percent

of Thai, Malaysian and Korean consumers from the emerging markets in the region, were willing

to pay premium price to purchase environmental products.

The products which are produced through green technology and that do not cause any harm to

the environment are called green products. Promotion of green products and technology is

necessary for conservation of natural resources and sustainable development. We can define

green products by following characteristics:

Product Originally Grown

Recyclable

Reusable

Biodegradable

Product with Natural Ingredient

Product not harming or polluting the environment

Product containing Re-cycled contents

Product containing Non-Toxic Chemicals

Product having eco-friendly packaging i.e. reusable, refillable containers etc.

The simple answer of the question that why the concept of green marketing has gained the

momentum is quite simple and rely on the basic definition of Economics. As per the basic

definition of the Economics, it can be defined as follows:

The study of concept that- ―how people use their limited resources to try to satisfy unlimited

wants‖ is called as Economics. Even, we are left with the limited amount of resources on the

earth and exploitation of these resources is required to be very-very sustainable to satisfy the

human unlimited wants.



The development of new or alternative ways for satisfying the customer‘s needs is required to be

developed. Ultimately, green marketing looks at how marketing activities utilize these limited

resources, while satisfying consumers wants, both of individuals and industry, as well as selling

the organization‘s objectives.

The pictorial representation of the characteristics of the product is as follows:

:

0.1 CHARACTERSTICS OF GREEN PRODUCT

Characterstics of Green Products

Product having Eco-

Friendly Packaging

Product containing Re-cycled contents

Product Orignally Grown



WHAT IS “GREEN MARKETING” OR ENVIRONMENTAL MARKETING”?

The term named Green Marketing was coined first in the 1970s and took its actual long journey

in the late 1980s.The first workshop was held in 1975 by the American Marketing Association

(AMA) ecological marketing. For the first in 1980 the term came into the existence.

Henion was the first person in the world to give the definition of Green Marketing in 1976 which

Stated- ―the implementation of marketing programs directed at the environmentally interest of

people towards the environment and green conscious market segment‖.

AMA defines green marketing as the marketing of products that are presumed to be

environmentally safe; it incorporates several activities such as product modification, changes to

production processes, and packaging, advertising strategies and also increases awareness on

compliance marketing amongst industries.

Business Dictionary defines green marketing as promotional activities aimed at taking advantage

of changing consumer attitude towards a brand. These changes are increasingly being influenced

by a firm‘s policies and practices that affect the quality of the environment and reflect the level

of its concern for the community. It can also be seen as the promotion of environmentally safe or

beneficial products.

Polonsky (1994) has stressed on satisfying of human needs and wants but causing minimum

harm to the national environment. Similarly, Peattie (1995, 1999) has defined in terms of

customer satisfaction; Charter (1992) looks at the strategic dimension of the activities that will

have long-term effects; Pride and Ferrel (1993) has stressed on the need for sustainable

development; Welford (2000) talks about the management process that looks into the

requirements of customers and society in a profitable and sustainable way.

Thus, several definitions can be seen from the literature and the central meaning of all however,

remains the same viz. protection of environment.

Green marketing has now become global concept for safeguarding the earth from the damage it

has been seeing for so long. Earth has limited resources and it is our duty to make judicious use

of it. By implementing green marketing measures to save the earth‘s resources in production,

packaging, and operations, businesses are showing consumers they too share the same concerns,

boosting their credibility. Divergent aspects of green marketing include ecologically safer

products, recyclable and biodegradable packaging, energy-efficient operations, and better

pollution controls. Advances produced from green marketing include packaging made from

recycled paper, phosphate-free detergents, refillable.



The concept of Green Marketing promises to create a better environment, however it faces some

challenges.

These challenges are:-

The GO GREEN and Green Marketing are comparatively new concepts; hence it will take

some time for the masses to accept it. There is a need to create a lot of awareness about

this concept. The message needs to be spread intensively among the masses to ensure

every person is aware of green marketing and GO GREEN initiatives. This will make it

easier for the masses to be a part of this initiative.

Lack of standards or benchmarks to measure the authenticity of messages from green

campaigns, dampens the long term benefits of green marketing.

Green products require renewable and recyclable material, which is costly.

Requires a technology, which requires huge investment in R & D.

Water treatment technology, which is too costly.

Majority of the people are not aware of green products and their uses.

Majority of the consumers are not willing to pay a premium for green products.

0.1 CHALLANGES OF GREEN MARKETING

New Concept

Lack of Standards

Costly Material

Lack of Awareness

Huge Investment in R&D



It is very unfortunate to say that the majority of the people are in the view that the green

marketing is solely used for the advertisement and promotion of the environmental

characteristics. Consumers most often associate the terms like Phosphate Free, Recyclable,

Refillable, and Ozone Friendly with the concept of Green Marketing. These all terms are also

green marketing claims but in a general view the green marketing is a much broader concept.

Green Marketing can be applied to the consumer, industrial and even to the services also.

Going Green may seem to be expensive to the consumers in the short-term, but it will be

definitely proved to be advantageous in the long run even in the context of cost.

DEFINITIONS OF GREEN MARKETING

Pride and Ferrell (1993) Green marketing, also alternatively known as environmental marketing

and sustainable marketing, refers to an organization's efforts at designing, promoting, pricing and

distributing products that will not harm the environment.

Polonsky (1994) defines green marketing as .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.

Elkington (1994: 93) defines green consumer as one who avoids products that are likely to

endanger the health of the consumer or others; cause significant damage to the environment

during manufacture, use or disposal; consume a disproportionate amount of energy; cause

unnecessary waste; use materials derived from threatened species or environments; involve

unnecessary use of, or cruelty to animals; adversely affect other countries.

(Dunlap and Scarce 1991; Lung 2010). D'Souza et al. (2006) noted that all products offered

should be environmentally safe without a need to trade off quality and/or pay premium prices for

them.



GREEN MARKETING MIX

As the conventional marketing has marketing mix i.e. the 4 P‘s of marketing (Product, Price,

Place and Promotion), in the same way Green Marketing also follows the 4 P‘s as follows:

PRODUCT: Green Product development in order to satisfy or exceed the needs and wants of the

customer is to be ensured. The product should meet all the green characteristics which can

delight the customer to a larger extent. Green products are generally made up of bio-degradable

materials and do not consist of the toxic chemicals. They are eco-friendly in nature and the

packaging of these products even does not contain any plastic material. These efficient green

products do not only save the environment but also save the water, energy and money.

For example, in the Oil& Gas industry, the unleaded petrol (lead free petrol), aromatics free

petrol with high octane number, CNG in Delhi, Mumbai and Gujarat etc are some of the best

examples of eco-friendly product. Marketing of these types of products is called as Green

marketing i.e. they are not having any severe impact on the environment and human beings.

Initiatives taken by the PNGRB by inviting the bids for setting of the City Gas distribution

Network for serving the customers is one of the important initiatives taken by the government of

India. Public Sector Enterprises marketing companies and other private energy marketing

companies are participating in the bidding process and seeking for the grant of permission and

license for the marketing and retailing of Natural Gas to the customers.

Natural Gas is one of the best examples of energy fuel which on consumption does not cause any

harm to the environment. Initiative of oil marketing companies of introducing the Auto-LPG a

long time back was one of the another best practices of green marketing adopted by them.

Lubricants and paints free from toxic chemicals, are the other examples of the green products.

Most of the OMCs are working on the various renewable energy projects related to the solar and

wind energy.

Another masterpiece of the Green Marketing is the usage of Bio-Diesel and Bio-Ethanol as fuel

for the vehicles. It is serving the both the purposes being eco-friendly even and also sharing the

load of energy requirement with the conventional fuels.

Price: Price of a green product is the one the important parameter which has a severe impact on

the sales. Pricing is required to be done strategically in order to present the green products to the

customers at the reasonable rates. Most customers having high income level are ready to pay a

premium price even if the product is having some additional product value.

The critical element of the pricing is required to be managed very strategically to serve the

maximum number of the customers with the green products. Obviously, in the beginning of

introducing the green products the price may vary in comparison to the other normal products.

But with the passage of time the price will follow the normal curve.



Customers aware about the advantages of the green products are ready to bear the extra cost for

the protection of the environment and their good health. Even if the price of the green products is

reasonably high as compared to the price of the normal products, still it has been observed that in

the present scenario, most of the customers are switching to the green products. The reason

behind this is that the customers are aware and they are ready to work for the protection of the

environment. They are ready to accept the change even at the high prices. A large number of

populations are switching to the ayurvedic medicines in place of the allopathic medicines. The

best example of this in India is the organization named Patanjali Yogpeth which is the initiative

taken by the Baba Ramdev. At that centre, the product made up of chemical free substances is

marketed. Even the price being high as compared to the other substitutes, the marketing is at its

peak.

Consumers of low income group are not even bothered about the price as they all know about the

advantages of the green products.

Place: Place becomes the one of the important parameter to make the product available at the

reasonable prices and in a effective way. Selection of the Green place is one of the critical issue

which need to be taken care of. Strategically it is required to be decided.

There are very few customers who go out of their way for the purchase of the green products for

their sake. Marketing companies are presenting their green products in an effective way and at

the most strategic location so that they are not just appealing to a small green niche market, but

also capture the maximum of total market.

Managing logistics to cut down the transportation emissions is the main motive of selecting the

Green place. Licenses can be provided for the production of the green products in the country

instead of going for the import of the green products. This thing avoids the issue of shipping of

the product from far locations, and which led to decrease in the carbon emissions and even

reduce the cost. For example, instead of importing the Mango Juices, licenses can be provided

for the home production for managing the emissions issue.

Promotion: Indeed, without promoting a product, you cannot get the best out of it. Getting the

best from the product is in a positive way i.e. if the customers will not be aware about the green

products, they will not be switching to them. So, creating awareness among the consumers by the

virtue of promoting the products has become mandatory.

Various techniques used to target the maximum part of the market is paid advertising, public

relations, sale s and promotion techniques, word-of-mouth marketing, posters presentation etc.

Word-of-Mouth marketing is one of the important source of promoting a green product. The

information related to the green product spread with the speed of chain reaction. Now-a-days,

most of the companies are using the social media and the social networking sites like face book,

twitter etc. for the promotion of their products. Information is shared regarding the green product

via emails also.



GREEN MARKETING- REASON FOR ADOPTION BY THE FIRMS

Reasons for adopting the Green Marketing are as follows:

Opportunity

Social Responsibility

Government Pressure

Competitive Pressure

Cost Reduction

OPPORTUNITY

It‘s an opportunity for the many of the firms to adopt the concept of green marketing for their

interest as well as for the sake of the customers. Green Marketing is the opportunities for the

firms to produce the green products and penetrate in the local consumer market. Consumers of

all the segments are interested to adapt the concept of green marketing.

For example: Surf Excel detergent which saves water (advertised with the message—"do bucket

paani roz bachana")

SOCIAL RESPONSIBILITY

Most of the firms have taken green marketing as the social responsibility for them to produce the

green products and to present it in the market for the use of customers. Just like the other

initiative for social work, now-a-days green marketing is also considered as a trend.

For example HSBC bank carbon-neutral policy

GOVERNMENTAL PRESSURE

Government is also putting pressure on the many of the industries to go green like for the usage

of limited amount of coal and wood in order to protect the environment. In case of city gas

distribution, PNGRB is inviting bids for granting of the licenses for setting the infrastructure.

Government is focusing on the pollution norms and being very strict penalizing the companies

who are not following the regulations.



COMPETITIVE PRESSURE

Producing the green product also differentiates the companies from their competitors and helps

them to lead in their business position. Companies are producing the green products and

enjoying the fruitful benefits.

COST REDUCTION

Sometime many of the processes used for green marketing leads to the cost saving in the

production or marketing of the product.

CONSUMER’S PRESSURE

Consumers have started using and giving preference to the eco-friendly products. They are using

the green products to the great extent and enjoying the benefits of the products. So, it has become

the consumer‘s pressure on the firms to produce the green products only.

EMPLOYEES PRESSURE:

Even the employees want to work in the healthy environment and they want to produce the

product which does not harm the health and environment. So, this thing is also having the effect

that most of the employee oriented firms are adapting the concept of green marketing.



GREEN MARKETING – NEED OF AN ERA

Green Marketing can said to be like the need of the era now-a-days. The reason behind this is

that the pollution is increasing like anything. People health is affecting a lot. Green Products are

highly in the demand and companies have started focusing on the productions of the green

products. There are several other factors also which says that the green marketing is the need of

an era. They are as follows:

Consumer Pressure

Government Pressure

Investor Pressure

Competitive Advantage

Community Pressure

Corporate Social Responsibility

Cost Reduction

Employee Pressure

All the factors are same to the fact that why the firms go for the green marketing. All above

mentioned topics are responsible the now-a- days; it has been considered that the green

marketing is the need of an era.

It‘s very high time to have the control on pollution of the environment and to start adapting the

green marketing initiatives for the noble cause. Even the most of the population of the country is

willing to accept the change and they also want to work and they are ready to bear the additional

cost for using the green products.



OBJECTIVE OF THE STUDY

To study the impact of green marketing initiatives on the consumer buying behavior

particularly in the oil and gas industry in the downstream side of the value chain.

To check and to know the attitude of the consumers towards the green marketing.

The study on the title ―Impact of Green Marketing initiatives on consumer buying

behavior‖ also throws some lights on the area to be improved in the field of green

marketing. What are the challenges which are coming in between and are affecting the

performance of the green marketing?

To study the price sensitivity of the consumers towards the buying of the green product.

Whether the consumers are worried about the price of the product only, ease of access or

availability of product only or he/she is ready to accept the change for the sake of the

environment.

The study also describes the main problems and challenges coming while implementing

the Green marketing techniques.



RESEARCH METHODOLOGY ADOPTED

Research Methodology adopted to carry out the study of ―Impact of Green Marketing Initiatives

on the Consumer buying behavior‖

Primary Research: Primary Research for the data collection for carrying out the study

on Green Marketing impact was done using the following two ways:

I. Face to face meetings with the various Industrial communities, Pollution

departments, Public Works Departments etc… in order to find out the important

industrial clusters, upcoming and long term plans in the various communities, in

order to know about the problem of pollution.

II. Collection of primary data from interviewing and filling up of questionnaire by

the respondents.

III. Understanding the consumer‘s green product requirement and rationale for using

any specific kind of fuels.

IV. Understand the price sensitivity of various products from consumer‘s perspective

and the change in technology required in order to switch to the Green Product (for

this case especially Natural Gas).

Secondary Research: On the basis of data collected by carrying out the primary research

method, several calculations related to study are carried out. Analysis of the data is done

after making the hypothesis. Data collected via the interviews and filling up of the

questionnaire is used to see pattern of growth of green products in the market.

For the study of Green Marketing, especially for the case of the Natural Gas, the main area

targeted were the Industrial sector, Commercial Sector, Households and Vehicle segment.

The main area targeted was Haridwar, Dahod, Ahmadnagar and the Belgaum Districts.

Industrial Sector: Although the fuel requirement from majority of the industrial sectors

has been covered, it is seen that the key industries that may switch easily to Natural Gas

are Forging, Casting & Steel industries, Petro Chemicals, Glass/Ceramics, Metal

forming, agro Based and Food Industries etc… First, the consumption of the different

fuels used by such industries is retrieved by carrying out the primary research method.



Then, the demand analysis is done by correlating these all fuel on the basis of calorific

value and the price constraints.

The technology used by various industries is also an important factor since there are some

industries that not easily switch to Natural Gas since a lot of fixed cost is involved in

setting up of their current technology & processes. On the other hand, some industries

might be able to switch readily because of the nature of processes. For e.g. the glass

cutting industries or the steel industries that use electric arc furnaces might switch readily

to Natural Gas because of the technological advantage of Natural Gas; however plastic

industries that are using electric furnaces for their activities might be adherent to Natural

Gas. Hence, the technology used by the plants and the various fuels used by the industries

has been identified in order reach the realistic, optimistic and pessimistic demand of

Natural Gas.

Commercial: In commercial sector the study is related to the hotels, restaurants,

hospitals, sweet shops, shopping malls, bakeries and the universities of that very

particular region.

Vehicles: In Vehicle category, different types of vehicles are considered like three-

wheelers, two wheelers, buses, private cars etc… The details of the same has been taken

from the respective RTO departments

PNG Domestic Households: Household data specifically the number of households in a

particular area, people having LPG connections, cooking facility available inside or

outside is considered to predict or to assess the demand of Natural Gas.

For all these sectors, data related to the demand and consumption of Natural Gas is collected.

Like for the commercial sector, fuel used by the hotels, restaurants, hospitals and universities is

studied and amount of fuel used is also calculated by carrying out the primary research. In the

same way for the industrial sector, first the type of industries is recorded and the amount of fuel

consumed by all these industries is observed. On the basis of that it is estimated that how much

percentage of the consumers will shift to the green product i.e. natural gas.



The various sectors covered in the projects can be described in the following diagram:

0.1 SECTOR STUDIED

METHODOLOGY ADOPTED FOR INDUSTRIAL SECTOR

Methodology adopted for the industrial sector is described as follows:

In the initial stage, the key sectors which can off take the larger volume of Natural Gas are

founded out by carrying out the primary research. Then, the estimation of the demand is done on

the basis of the secondary and primary research. Then, it is estimated on the basis of demand that

how much percentage of customers can actually shift to the green product named natural gas. By

carrying out the primary surveys, what is the actual mindset of the customers is also estimated,

that whether they want to shift to the green products or not.

Sectors Studies

Industries

Forging, casting, Iron &

steel

Petro Chemicals

Power

Fertilizers

Glass / Ceramics

City Gas Distribution

Commercial

Hotels & Restaurants

Malls

Universities

Hospitals

Bakeries, Sweetshop, Food Courts

IT / ITeS / SEZ

Vehicles

Three Wheelers

Buses (Public / Private)

Cars

Small Industry

Forging, Casting, Iron & Steel

Petro Chemicals

Power

Fertilizers

Class / Ceramics

Household



The methodology used for the industrial segments for the industries by meeting the demand by

the City gas Distribution is described as follows:

0.2 METHODOLOGY FOR INDUSTRIAL SECTOR



METHODOLOGY ADOPTED FOR HOUSEHOLDS SECTOR

Methodology adopted for the households‘ sector calculation has been described in the block

diagram shown below. Data related to the number of households, population of rural area, urban

area and total population district wise has been extracted from the https//:censusindia.gov.in . For

the housing sector, differently the calculation has been done for the private sector and the

government sector. In private sector, the information related to the colonies, individual plots,

multi storey apartments and 7-8 storey‘s was gathered. For the government sector, information

regarding the houses, high/middle income group, apartments up to two storey‘s, housing

complex for the government departments was gathered. After collecting this whole information a

similar procedure for both the private as well as government sector was followed this is

described as follows in the following points.

Field surveys or contacting respondents for the information gathering is carried out regarding the

fuel consumption per month, willingness to convert, power outage and pricing etc. This is

followed by the process of dividing the consumers as per the fuel used by them.



0.3 METHODOLOGY FOR HOUSEHOLDS



METHODOLOGY ADOPTED FOR COMMERCIAL SECTOR

For the case of commercial sector , at initial stage the listing of the commercial sector is done,

the commercial establishments are checked . Commercial establishments are classified into the

three main types as follows

Accomodation : It covers the hotels, guest houses, resorts, education hostels, canteens

etc.

Food & Entertainment : Food & Entertainment covers the mainly restaurants, sweet

shops, bakeries, cine complexes etc.

Health care : Basically, hospitals & nursing homes are covered in this category.

After classifying the commercial establishments into the three different sectors, respondents are

contacted. Data is collected from the management team, production team, maintenance

department and purchase department as well. Data related to fuel consumption per month ,

customer‘s willingness to convert, power outage and factors related to pricing are considered.

Then, by dividing the consumers by quantity of fuel consumption we get the three types of

consumers i.e.

Large Consumer (100%

Medium Consumer(40-60%)

Small consumer(10-20%)

Future projection of the data is done by using the concept of the growth rate . Source of the

future projection of the data is economic survey and the LPG price etc. This calculation of the

future projection led us to the stage of finding the potential consumers & volume of natural gas.

Switchover rates are applied at this stage in order to check or to know the potential consumers.

Pictorially , the methodology adopted for the commercial sector , in order to reach to a

appropriate conclusion is represented as follows :



0.4 METHODOLOGY FOR COMMERCIAL SECTOR



METHODOLOGY ADOPTED FOR VEHICLE SECTOR

In order to carry out the calculation for the vehicle sector, the very first parameter calculated or

estimated was the vehicle population. The survey area for the estimation of this parameter was

the Regional Transport Office (RTO). All the vehicles were classified into six main groups

named as follows:

3-Wheeler (Passenger)

3-Wheeler (Goods)

4-Wheelers

Car

Taxi

Buses(Stage Carriage, OMNI Buses, School Buses)

Further, all these groups of vehicles are classified on the basis of type of fuel they consumed i.e.

the vehicles consuming petrol are classified as different as well as the vehicles consuming diesel

and CNG/LPG.

After carrying out the grouping of the vehicles into different verticals as per the types of vehicles

and also on the basis of fuel they consume, estimation of the following main parameters is

carried out.

Fuel consumption per month by the vehicle

Willingness to convert

Cost of conversion from the pre-existing fuel to the Natural Gas

CNG Kit pricing etc.

Average Distance Travelled and Mileage of the vehicle is calculated respectively to the

vehicle category

After the proper estimation of the above mentioned factors/parameters, extrapolation of the data

is carried out in order to reach to the potential demand of the Natural Gas.

Future projection of the demand of the Natural Gas is done by applying the concept of the

growth rates. Source used for applying the growth rates was CNG Activity in India (GAIL

Authority of India Ltd.) plus Vehicle segment.



For the final estimation i.e. the estimation of the potential customers & the volume of the Natural

Gas, the concept of the switchover factor is applied. The basis used for applying the switchover

factor was survey, fuel pricing and the vehicle needs by the peoples.

0.5 METHODOLOGY FOR TRANSPORT SECTOR



Overall general methodology can be described as follows:

0.6 GENERAL METHODOLOGY

1

• Identify key sectors that can off take larger volumes of Natural Gas for e.g. Industries (Petrochemical Complex, Fertilizers, Automotive, Ancillary, Steel etc.), Power Plants, CNG

2 • Estimation of demand based on secondary and primary research

3

• Demand assessment of Natural Gas (cluster wise) based on pessimistic, realistic and optimistic scenarios and at different natural gas prices for next 30 yearse

4

• Identify key clusters with realistic demand so that we can decide the how much percentage of customers will switch to the Natural Gas.



STATE PROFILE FOR HARIDWAR

As the study of ―Impact of Green Marketing Initiatives on consumer buying behavior‖ is carried

out for the state of Haridwar. So, in order to have the better picture and the better understanding

of the study the states profile along with the basis for identifying various industrial clusters

related to the respected states is explained in the below section.

State Profile – Haridwar

Haridwar district is a district in the state of Uttarakhand, India. It is headquartered at Haridwar

which is also its largest city. The district is ringed by the districts Dehradun in the north and east,

Pauri Garhwal in the east and the Uttar Pradesh districts of Muzaffarnagar and Bijnor in the

south and Saharanpur in the west. A paradise for nature lovers and one of the seven holiest

places of Hinduism, Haridwar presents a kaleidoscope of Indian culture and civilization.

As of 2011 it is the most populous district of Uttarakhand (out of 13). Important towns in the

district are Haridwar, BHEL Ranipur, Roorkee, Manglaur, Dhandera, Jhabrera, Laksar, Landaura

and Mohanpur Mohammadpur.

The district has a population density of 817 inhabitants per square kilometer (2,120 /sq mi). Its

population growth rate over the decade 2001-2011 was 33.16 %.

The district headquarter is situated in the Roshnabad, at a distance of about 12 kms from railway

station. The Collectorate, Vikas Bhawan, District Judiciary, S.S.P. Office, Police line, District

Jail, District sports stadium, Jawahar Navodaya Vidyalaya etc. are the prime establishments of

this area.

The district is administratively subdivided into three tehsils i.e. Haridwar, Roorkee and Laksar

and six development blocks i.e. Bhagwanpur, Roorkee, Narsan, Bahadrabad, Laksar and

Khanpur.

ECONOMY

Agriculture is the mainstay of this well irrigated district. Industrialization had commenced with

the establishment of Central Government owned Public Sector plants (PSUs) of Hindustan

Antibiotics Limited and Bharat Heavy Electricals Limited, in pre-Uttarakhand 1960s period. The

State Industrial Development Corporation of Uttarakhand (SIDCUL) has now established one

new ‗industrial development zone‘ in the district, adjacent to Shivalik Nagar near Haridwar, to

encourage industrialization; with industrial giants like Hindustan Lever, Dabur, Mahendra &

Mahendra and Havells having moved in, it is making the desired progress. Not insignificant to



the district‘s economy is the contribution of Hindu pilgrims who visit the holy places and attend

the religious fairs in large numbers.

The figure below shows the major industrial clusters of Haridwar district:

0.1 MAP OF HARIDWAR SHOWING INDUSTRIAL CLUSTERS



Some of the industrial areas identified as per the charge areas with the potential demand in the

Haridwar district are as follows:

0.2 INDUSTRIAL CLUSTERS IN HARIDWAR

The Haridwar district is divided tehsil wise. Major industrial areas are SIDCUL Haridwar,

Roorkee including Todkalyanpur, Jhabrera, Landhaura, Bhagwanpur and Laksar.

•Roorkee • Bhagwanpur •Landhaura

CA-1

Dariyapur Dayalpur

•SIDCUL Haridwar •Bahadarwad •BHEL

CA-2

Daluwala Khurd

•Laksar •Khanpur

CA- 3

Purwala Birsangpur



0.3 MAJOR INDUSTRIES IN HARIDWAR



FINDINGS OF PRIMARY RESEARCH & SECONDARY RESEARCH FOR HARIDWAR DISTRICT

For the better understanding of the project and in order to have the better feel of the geography of

the city and to know about the existing industrial estates in the city, the visit was planned.

They collected the various data related to the location of industries, types of industries, fuel used,

connectivity of pipeline and roads to different location, upcoming townships and new projects in

the city, vehicle population, number of existing auto-LPG stations in the city and existing players

providing natural gas to the companies in the particular locations.

From the commercial perspective, the number of hotels and restaurants on the scale of big,

medium and small is estimated and demand projection is made accordingly. Number of hospitals

and the Institutions in the particular charge areas is collected and demand analysis is done.

For the data related to the minimum work over program for the PNG domestic connections,

number of households in a particular area is collected and visit of new upcoming townships and

projects is carried out. Major colonies which can act as the potential demand centers are visited

and interactions with local people is done to know the mindset of the people living over there.



HYPOTHESIS TESTING FOR LNG POTENTIAL IN DAHOD DISTRICT

OBJECTIVE

To explore the market potential of LNG in cylinders for commercial and industrial requirement in Dahod District, Gujarat.

HYPOTHESIS

It is considered as the most important instrument in research. Most of the experiments in the

world are carried out with the objective of testing the hypothesis. The hypothesis may not be

verified completely, but in exercise it is accepted if it has survived a critical testing.

A hypothesis can be defined as, in simple terms a meager assumption to be verified or

negated.

In my project I have considered the following things:

0.1 Hypothesis Testing



a) A Null Hypothesis and an Alternative Hypothesis:

Ho : µ = µ Ho = LNG in cylinders is feasible.

Ha : µ ≠ µ Ho = LNG in cylinders is not feasible.

b) The Level of Significance:

I have considered the significance level at 5 %, which implies that Ho will be rejected when the

sampling result (i.e., observed evidence) has a less than 0.05 probability of occurring if Ho is t



RESEARCH METHODOLOGY FOR HARIDWAR DISTRICT

DESIGN OF SAMPLING PLAN

Based on the requirement I have selected the following research design:

1. Sampling involves different methods used to select the necessary information.

2. Observational involves detailed understanding of the conditions under which the

observations will be made.

3. Statistical involves details of the number of items from which the data has to be collected.

SAMPLING

a) In the first stage I have selected Dahod District, Gujarat to carry out the survey and have

considered to apply the following steps:

i) Type of Universe: The sampling universe will be restaurants, hotels, industries and

hospitals that consume LPG, Coal, Wood, Fuel Oil etc. in Dahod District, Gujarat. It is a

finite universe.

ii) Sampling Unit: It consists of only one location which is Dahod District, Gujarat.

iii) Sample Size: The sample size targeted in Dahod District, Gujarat was 80. Relevant sample

size is 60.

iv) Parameters of Interest: Parameter of interest in the project is the consumption pattern of

LPG, Wood, Coal, Fuel Oil etc so that the feasibility for the same can be easily calculated for

the same amount of LNG.

b) We have considered the concept of quota sampling from Dahod District, Gujarat



OBSERVATIONAL DESIGN

The following things have been kept in mind while interviewing the respondents:

a) Full attention while filling up the survey.

b) Direct decision making in consumption of fuels.

c) Direct decision in making payments.

STATISTICAL

a) Collection of primary data from interviewing the respondents directly face to face.

b) Collection of primary data through two different methods:

Questionnaire.

Interview.

c) I have basically tried to use the first method stated above in all of the case but there were

some instances where we adopted the second method to collect information.

d) I have carefully chosen the respondents for our interview as his being knowledgeable

regarding the usage and consumption pattern of LPG, Wood, Coal, Fuel Oil etc.

e) For successful data collection I filled the survey in-front of the respondents so that I get

quality data.

f) Sometimes I have to move in various departments to get the required data. I have moved to

finance department, production department and purchase department to get valuable and best

information.

As far as secondary data is concerned I have not gone through any previously acquired data for

LPG, Wood, Coal, Fuel Oil etc consumption in Dahod District, Gujarat. This is a totally new

project as no other consumption details for the specified place has been carried out earlier. We

have considered the primary data for the analysis.



DESIGN OF QUESTIONNAIRE

The questionnaire we used to get our data and to complete our survey is as follows:

DATA COLLECTION

For the collection of data following two methods have been adopted:

o Questionnaire

o Interview

A very important criterion was kept in mind while choosing the sample which is availability of open

safe which is absolutely essential for LNG installation for its safe discharge into air.

ISSUES FACED

i) Presence of more than one respondent in a room. It made the survey very difficult to

complete in time as there were different views in some cases.

ii) Unavailability of higher authority to give us the data.

iii) Rejection to give time to fill up the survey.

MARKETING STRATEGY

0.2 Marketing Strategy



Today it is very important that customer should know about the product and to know the product it

very important to advertise for the product. But it does not always guarantee that the customer will be

aware and is ready to consume/use the product.

KNOWLEDGE

The customer initially gets familiarized to the products via the various channels of advertisements.

Consumers expect very easy access to product knowledge. The easy access to product information is

made sure by the advertiser.

LIKING

This ensures that your product is being liked by the customer. It is necessary to find out the traits of

the products which need to be advertised so that it is being liked by the customers.

PREFERENCE

It is the point where the exceptionality of your product comes into play.

CONVICTION

Here the urge for the customer to go for the product is checked. The customers are allowed to test the

different aspects and features of the product. Consumers are now confident that their purchases are

going to be good.

PURCHASES

The above mentioned stages will induce the customer to vouch for the products. This has to be an

easy and simple step or else might make the customer revert back from buying your product.



TESTING OF HYPOTHESIS

Let us first calculate for WOOD, we take t test as sample size < 30

Table 1Calculation for the hypothesis testing we considered for wood

WOOD

[X-

X X(Mean) X - X(Mean) X(Mean)]^2

(A)

20000 11424 8576 73547776

30000 11424 18576 345067776

54000 11424 42576 1812715776

60000 11424 48576 2359627776

35000 11424 23576 555827776

12000 11424 576 331776

8000 11424 -3424 11723776

120 11424 -11304 127780416

12 11424 -11412 130233744

10 11424 -11414 130279396

2000 11424 -9424 88811776

10 11424 -11414 130279396

8000 11424 -3424 11723776

10000 11424 -1424 2027776



2000 11424 -9424 88811776

100 11424 -11324 128232976

8000 11424 -3424 11723776

5000 11424 -6424 41267776

300 11424 -11124 123743376

300 11424 -11124 123743376

600 11424 -10824 117158976

300 11424 -11124 123743376

7000 11424 -4424 19571776

Sum (X) 262752 Sum (A) 6557975896

X(Mean) 11424 Sum (A) / (n-1) 298089813.5

N

23

σ (Standard

17265.27768

Deviation)

Wt * Calorific

1001395.2 X(Mean) - µ 11137.88709

Value of LNG

µ

286.1129143

[X(Mean) - µ] /

0.64510327

Σ

[X(Mean) - µ] /

3.093806597



σ / sqrt(n)

A Null Hypothesis and an Alternative Hypothesis:

Ho: µ = µ Ho = LNG in cylinders is feasible.

Ha: µ ≠ µ Ho = LNG in cylinders is not feasible.

………………………Eqn 10.1

Figure 10-1Research Methodology by CR Kothari (HYPOTHESIS TESTING OF MEANS) Page No.: 197

Figure 10-2Research Methodology by CR Kothari (Table 2: Critical Values of Student’s t-Distribution) Page No.: 377

The Tcal is 3.093806597

And Ttab is 2.074 at 5% level of significance.

As we can see that Tcal > Ttab, we “REJECT THE HYPOTHESIS”

i.e. LNG IN CYLINDERS IS NOT FEASIBLE.



CALCUAIONS FOR LPG

Now we calculate for LPG, we take z test as our sample size > 30

Table 2 Calculation for the hypothesis testing we considered for LPG

LPG

[X-

X X(Mean) X - X(Mean) X(Mean)]^2

(A)

28 726.7790698 -698.7790698 488292.1883

30 726.7790698 -696.7790698 485501.0721

114 726.7790698 -612.7790698 375498.1883

228 726.7790698 -498.7790698 248780.5604

209 726.7790698 -517.7790698 268095.1651

95 726.7790698 -631.7790698 399144.793

114 726.7790698 -612.7790698 375498.1883



570 726.7790698 -156.7790698 24579.67672

190 726.7790698 -536.7790698 288131.7697

114 726.7790698 -612.7790698 375498.1883

76 726.7790698 -650.7790698 423513.3976

760 726.7790698 33.22093023 1103.630206

380 726.7790698 -346.7790698 120255.7232

228 726.7790698 -498.7790698 248780.5604

9.5 726.7790698 -717.2790698 514489.2639



1045 726.7790698 318.2209302 101264.5604

950 726.7790698 223.2209302 49827.58369

1900 726.7790698 1173.22093 1376447.351

114 726.7790698 -612.7790698 375498.1883

34 726.7790698 -692.7790698 479942.8395

2200 726.7790698 1473.22093 2170379.909

28 726.7790698 -698.7790698 488292.1883

51 726.7790698 -675.7790698 456677.3511

68 726.7790698 -658.7790698 433989.8628

114 726.7790698 -612.7790698 375498.1883

152 726.7790698 -574.7790698 330370.979

114 726.7790698 -612.7790698 375498.1883



152 726.7790698 -574.7790698 330370.979

228 726.7790698 -498.7790698 248780.5604

152 726.7790698 -574.7790698 330370.979

570 726.7790698 -156.7790698 24579.67672

57 726.7790698 -669.7790698 448604.0023

152 726.7790698 -574.7790698 330370.979

850 726.7790698 123.2209302 15183.39765

1260 726.7790698 533.2209302 284324.5604

51 726.7790698 -675.7790698 456677.3511

152 726.7790698 -574.7790698 330370.979

760 726.7790698 33.22093023 1103.630206

1140 726.7790698 413.2209302 170751.5372



1330 726.7790698 603.2209302 363875.4907

14000 726.7790698 13273.22093 176178393.9

102 726.7790698 -624.7790698 390348.886

380 726.7790698 -346.7790698 120255.7232

Sum (X) 31251.5

X(Mean) 726.7790698

N 43

Sum (A)

191675212.2

Sum (A) / (n-1)

4675005.174

σ (Standard

Deviation) 2162.17602



Wt *

Calorific

1004463.2 X(Mean) - µ 635.9267543

Value of

LNG

µ 90.85231548

[X(Mean) - µ] /

0.294114238

σ

[X(Mean) - µ] /

1.906078111

σ / sqrt(n)

A Null Hypothesis and an Alternative Hypothesis:

Ho: µ = µ Ho = LNG in cylinders is feasible.

Ha: µ ≠ µ Ho = LNG in cylinders is not feasible.

Figure 10-3Research Methodology by CR Kothari (HYPOTHESIS TESTING OF MEANS) Page No.: 197



The Zcal is 1.906078111 and Ztab is 1.96 at 5% level of significance.

I.e. as we can see that Ztab > Zcal, we “Do NOT REJECT THE HYPOTHESIS”

I.e. LNG IN CYLINDERS IS FEASIBLE.



ANALYSIS OF THE RESPONSES RELATED TO THE GREEN MARKETING INITIATIVES

An online survey was conducted and responses were analyzed. The results are projected in

the form of the histograms, graphs and pie-charts. Examples of the green marketing

initiatives and the products used by the various-various consumers are also recorded.

Consumers were willing to buy the green products in order to protect the environment.

They are ready to bear the additional cost even for the sake of their health and the health

of the environment. It has been observed that the awareness is required to be created

among the consumers in order to have the better results and better penetration of the green

products in the local market.

65% of the respondents strongly agree with the statements and 22.4% of the respondents

were in the range of somewhat agree.



CONCLUSION FOR THE STUDY OF DAHOD DISTRICT

Total number of companies targeted for the marketing survey of Dahod District, Gujarat was 60.

All the companies were mainly using LPG, Wood & Coal and a very few companies were using

Fuel Oil also. LPG is used by 58% of total targeted companies, 32% of the companies are relying

on the wood, 5% on the coal & 4% on the fuel oil. So, this shows that the companies are mainly

using LPG as a fuel source to carry out their operations followed by Wood & Coal.

After analyzing the all the graphs related to usage of a particular type of fuel, individual fuel

consumption level, price of fuel per kg, monthly bill of the company& the variation in

consumption level, we reached to the following conclusion.

LPG can be replaced by the LNG in cylinders as LNG has a various advantages over

LPG i.e. high calorific value, safety factor, hassle free, lower LFL & UFL, less

manpower required as compared to LPG & eco-friendliness.

Industry named Ashok Steel Limited, Dahod Steel, Raj Steel Ltd, Powder Coating

(Ashok Steel Expansion) were the largest consumer of the LPG in that particular area.

Ashok Steel is using 120 LPG commercial cylinders & for their expansion of Powder

Coating plant the demand is 15 tonne of gas per month to carry out their operations. So,

this shows that there is a greater scope of LNG in cylinders use as an alternative fuel to

the LPG gas.

The customers who were using LPG were mainly concerned about the price of LNG at which

it will be delivered to them. The cost of the cylinder is very high in the range of 1600$ to

2000$ excluding port charges. So, the customers were concerned about the price of LNG and

Cryogenic cylinders which they are going to use in future. So, in context to this problem,

company has decided to provide the LNG at the rate 20% less than the price of the

commercial cylinder due to which the customer can afford the LNG in cylinders at

reasonable prices.

Price of the LNG cylinder is quite high as compared to the price of the LPG cylinder. So, this

was the major concern for the customers so the company has already planned a solution for

this problem. Company will provide the cylinders to the customers & in return will ask the

security of Rs 25,000 to 30,000 per customer for the 230L cylinder which is equal to 6 LPG



cylinders of 14.2 kg. As the customer use to pay the security of Rs 2000-3000 in case of

domestic LPG cylinder & even much more in case of LPG commercial cylinder. So, it will

not be an issue for the customer to pay this much security for the LNG cylinders at the

starting as its going to add much value to their system & efficiency will also be increased

along with other benefits too.

In case of LPG there was a concern of leftover gas up to 10% in the cylinder. In winters it

can increase up to 15%. So, it is a loss to the LPG customers. But in case of LNG there is no

leftover of gas in the cylinder. This point has also influenced the LPG customers a lot to

think about LNG as an alternative.

Day by day, the number of accidents in LPG cylinders is increasing due to leakages,

mishandling etc. So, the customers were very much concerned about the safety of the plant &

man-power. Loss of human life is considered as the biggest loss as compared to the loss of

the property & money. As the LNG is much safer than LPG because of its less density on

leakage, it dissipates very rapidly into air whereas LPG settles down at the bottom, so

chances of accidents are more.

All the agro- based industries were using coal as a fuel for their boiler. All of them were

concerned about environment as the coal was producing greenhouse gases on combustion &

the residual disposal was the one of the another problem which they were facing. So, looking

at the special qualities of LNG, they all were ready to use LNG in place of Coal.

Coal handling & storage was one of the another problem they were facing. They were

bearing the transportation cost for the procurement of coal from their vendors. In case of

LNG, there is no transportation cost, as JEL is going to provide the LNG at their door step &

the LNG is free from pollution too.

The only matter of concern related to the coal & LNG was the price of the respective fuels.

There was a large gap between the price of LNG & coal. But, if we talk about the calorific

value & usability of LNG, then the amount of LNG required to generate the same amount of

heat will be less.

Wood procured by all the agro-based industry was not of good quality. The wood they were



receiving was wet wood sometimes. So, the calorific value was low for wet wood. This leads

to increase in consumption of wood & which was not economical. Procurement of wood in

large quantity was also becoming a problem for them. So, wood based customers were also

influenced to switch to LNG.

One of the most important factors which became the matter of concern was the price of LNG at

which it will be delivered to the customers at their doorstep. This needs to be economical; else

this price factor can disturb the feasibility of LNG in that particular area.

All the agro-based customers were concerned about the conversion cost of switching from coal

& wood to Gas-Based System. They were ready to switch, provided that cost of conversion is

within their limits. As per their information, the boiler provided to them by the companies named

Thermax Industries Ltd, Baroda & Heatex Industries Ltd., Surat are IBR (Indian Boiler

Regulation) Certified. All the industries demanded that if these companies will supply the gas –

based boiler to them, then it is immediately acceptable by them & definitely they will switch to

the LNG.

We have targeted the Thermax Industries Ltd & Heatex Industries Ltd in order to know the

conversion cost to switch to gas-based system. The response obtained from them was not

satisfactory. Managing Director of the company had a discussion with a boiler specialist,

according to him the gas-based system will not be feasible & efficient due to several factors like

low price of wood, high price of gas etc.

As the use of LNG in cylinders is a totally new concept, so few of the customers were concerned

about the factor that whether LNG is used earlier in the country or not. They were concerned

about the feasibility & the viability of the project.

After carrying out the hypothesis testing, that whether LNG is feasible or not in case of LPG,

hypothesis is accepted i.e. LNG is feasible for the targeted area.

After carrying out the hypothesis testing, that whether LNG is feasible or not in case of Wood &

Coal, hypothesis is accepted i.e. LNG is not feasible for the targeted area.



KEY TAKE-AWAYS & CONCLUSION FOR THE STUDY RELATED TO GREEN MARKETING

In case of LPG there was a concern of leftover gas up to 10% in the cylinder. In winters it

can increase up to 15%. So, it is a loss to the LPG customers. But in case of NG there are

no chances of leftover.

Coal handling & storage was one of the another problem which the customers are facing.

They were bearing the transportation cost for the procurement of coal from their vendors.

In case of NG, as once the pipeline will be laid down, this cost of transportation will be

reduced to the greater extent.

The only matter of concern related to the coal & NG was the price of the respective fuels.

There was a large gap between the price of NG & coal. But, if we talk about the calorific

value & usability of NG, then the amount of NG required to generate the same amount of

heat will be less

One of the most important factors which became the matter of concern was the price of

Natural Gas at which it will be delivered to the customers at their doorstep. This needs to

be economical; else this price factor can disturb the feasibility of NG in that particular

area.

All the small-scale customers were concerned about the conversion cost of switching

from coal & wood to Gas-Based System. They were ready to switch, provided that cost

of conversion is within their limits. There is one more important constraints which

hamper the feasibility of the Natural Gas i.e. availability of the advanced technology

means the availability of gas based technology. It may be costly so this needs to be taken

care off. Pollution Control Board has the greater role to play. If the regulations or policies

are framed such that the specific percentage of the Natural Gas is required to be

consumed in order to abide the pollution control norms. Then, it can be the win-win

situation i.e. the pollution can also be controlled & the use of much efficient fuel & eco-

friendly product (i.e. the Natural Gas) will also be possible.

Now-a-days the consumers are aware about the concept of the Green Marketing. They are ready

to pay for the protection of the environment. It is analyzed that most of the customers were

already aware about the green products and most of them were even using the green products for

a period of time. The green marketing concept is the need of the era.

This is the high time to adapt this technique to best possible level. If we will not be focusing on

the environment protection, it will not be possible for the future generation to survive effectively

in this world. With the increase in the industrialization, the pollution is increasing day by day to

the extreme level. So, in order to have the best control, the green marketing initiatives are of

utmost importance.



Most of the company employees were worried about the residues left after the combustion of

fuel. They were ready to use the natural gas as a fuel for the various purposes. Various customers

using the wood and coal were not ready to accept the natural gas due to the factor of high price.

Overall response was more than the satisfactory. We can say that the concept of marketing the

natural gas will be the feasible concept. Initiative will prove to be viable and successful for the

betterment of the environment.

The whole study indicates that the green marketing should be initiated with great zeal and

enthusiasm. Consumers should be aware about the green marketing product available with their

green characteristics and challenges should be mitigated.



BIBLIOGRAPHY

BP STATS. (2014). NATURAL GAS PROVED RESERVES.

CONCEPT CONSULTING GROUP LIMITED. (2012-2027). GAS SUPPLY AND DEMAND SCENARIO. WELLINGTON,

NETHERLAND.

DR.V.MOHANASUNDARAM. (2012). GREEN MARKETING – CHALLENGES AND OPPORTUNITIES. International Journal

of Multidisciplinary Research, 2.

DUBEY, A. K. (2014). GREEN MARKETING: - NECESSITY AS WELL OPPORTUNITY FOR INDUSTRIES. IRACST –

International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319-2828, 3.

Green marketing strategies: an examination of stakeholders. (2010). Academy of Marketing Science.

INDUSTRY GROUP . NATURAL GAS VISION 2030 FOR INFRASTRUCTURE.

INDUSTRY GROUP . (2013). NGPV 2030.

Jamge, D. L. (2012). Turning Towards the Green Marketing:A Need of the Hour in Indian Corporate Sector. Indian

Streams Research Journal, 2.

KUMAR, S. (2014). Green Marketing: Need of an Era. International Journal of Management and Social Sciences

Research (IJMSSR), 3.

MALIK, M. (2013). A STUDY OF INCREASING AWAENESS AMONG ORGANIZATIONS AND CONSUMERS TOWARDS

GREEN MARKETING. International Journal of Marketing, Financial Services & Management Research, 2.

NERVI, G. (2008). A study on Green Market Research practice among companies.

PNGRB. CGD REGULATIONS .

SINGH, M. (2013). TO CHECK THE POTENTIAL OF BOTTLED LNG IN ORDER TO MEET THE INDUSTRIAL AND

COMMERCIAL DEMAND. UPES,DEHRADUN. DEHRADUN.

Susan L. Sakmar, E. THE GLOBALISATION AND SUSTAINABILITY BY LNG .



ANNEXURE 1: QUESTIONNAIRE (FOR THE STUDY OF ATTITUDE & MINDSET OF THE

CONSUMER)

Kindly provide the response for the following statements? *R equired

Strongly

Disagree

Somewhat

Disagree Neutral

Somewhat

Agree

Strongly

Agree

It is important to

me that product i

use do not harm

the environment.

I consider the

potential

environment

impact of my

actions when

making many of

my decisions.

My purchase

habits are affected

by my concern for

our environment.

I am concerned

about wasting

resources of our

planet.

I would describe

myself

as environmentally

responsible.

I am willing to be

inconvenienced in

order to take

actions that are

more

environmentally

friendly.



Environmental degradation has risen in last decade?*Required

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree

In the next five years, state of the environment will be degraded more?

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree

Rate the seriousness of the following environmental concerns on the scale of 1 to 5 where 1 represents “Not at all Serious” and 5 represents “Extremely Serious”?*R equired

1 2 3 4 5

Destruction of

Ozone

Industrial

Water

Pollution

Industrial Air

Pollution

Pesticides on

Food

Hazardous

Waste

Drinking

Water

Contamination

Warming up

of Earth

Ocean

Contamination



1 2 3 4 5

Endangered

Species

Destruction

of Rain Forest

Have you ever heard of “Environment Friendly or Green Marketing” Products/Practices?

Yes

No

Following green marketing practices are important from environmental point of view.*Required

Strongly Disagree

Somewhat

Disagree Neutral

Somewhat

Agree Strongly Agree

Manufacturing

Eco-friendly

Product

Manufacturing

products through

eco-

friendly process

Promoting products

through Eco-

friendly modes of

communication

Branding product

associating with

green marketing

practices.

Modifying products

to make

them environmental

friendly

Modifying product

packaging to suit

environment.

Educating customer

to use products

in environmental

friendly manner

Using green supply

chain



Strongly Disagree

Somewhat

Disagree Neutral

Somewhat

Agree Strongly Agree

for procurement

and distribution From where you get the information about Green marketing Practices?

Television

Newspaper

Magazines

Radio

School/Universities/Institutions

Outdoor Media

Others Can you name the advertisements of green products/practices you have seen in recent past?

Out of above mentioned advertisements, which advertisement you like the most?



Please rate the following components of advertisements on a scale of 1 to 5 (where 1 represents least important and 5 represent most important)?*Requ ired

1 2 3 4 5

Message/Theme

of the

advertisement

Punch-line of

the

advertisement

Jingle of the

advertisement

Celebrity

Endorsement

Any Other

(Please Specify)

Organizations manufacturing/promoting green products are really concerned about the environment.*Required

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree Consumers have become more concerned about protection of environment?

Strongly Disagree

Somewhat Disagree

Neutral

Somewhat Agree

Strongly Agree Please tick the statement that best describes you as a consumer?

I buy only green products. I spend time and effort in environmental activities such as recycling. I

believe that an individual can do much to promote the environment.

I am able to buy green products but I don’t have the time and energy for environmental activities. I

do not want to change my lifestyles to promote the environment.



I can buy green products from time to time but I am not involved in any environmental activities.

I do not buy green products. I believe that business and government should be fixing environmental

problems.

I am the least involved in environmentalism. I believe that there is not much that an individual can do

in solving environmental problems. It should be the government and business which should promote the

environment. If a Green Product is available in a product category often purchased, I would…..

Definitely Not Buy

Probably Not Buy

Not Sure

Probably Buy

Definitely Buy While purchasing the product*Requ ired

Strongly

Disagree

Somewhat

Disagree Neutral

Somewhat

Agree

Strongly

Agree

I consider the ill

effects of

manufacturing and

consumption on

the natural

environment

I prefer green

products over

conventional

products.

I feel that green

products are

priced higher as

compared to

conventional

products.

I feel that price of

green product

affects my

purchase

behavior.



Following factors affect the purchase of green products?

Strongly

Disagree

Somewhat

Disagree Neutral

Somewhat

Agree

Strongly

Agree

Product

Price

Awareness

about

Green

Products

Availability

of Green

Products

Past

Experience

Information

provided

on product

Are you aware of some initiatives taken for promoting green marketing practices by the following? Ministry of Environment, State Government, NGO’s, Small Business of India, Large Business of India, Others

Yes

No If Yes, then specify ?

Name

Gender

Male

Female Age

Academic Qualification



ANNEXURE 2: QUESTIONNAIRE FOR DAHOD DISTRICT STUDY

Company name: Address: Contact person: Phone no.: Production information: Quest 1: Which fuel do you use? WOOD Coal Fuel Oil Lignite Naptha LPG Quest 2: How much quantity do you consume per month? ANS: Quest 3: What is the cost per unit of the fuel? ANS: Ques 4 : what is the monthly bill? ANS: Ques 5: Is there any variation? ANS: QUES6 : What are additional expenses? ANS: TRANSPORTATION: STORAGE: Quest 7: what are your credit finance facilities? ANS: Quest 8: What is the frequency of your fuel booking? ANS: Quest 9: Are you interested in using natural gas? ANS: Ques10: Any remark?

Impact of Green Marketing Initiatives on Consumer Buying Behavior

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