1. INTRODUCTION:
Environment has become a crucial and very
important issue for the majority of the people both in the customer's position
and the manufacturer. There is a growing desire among consumers around the
world to protect the environment. Consumer behavior is moving towards more
environmentally friendly or green products. Community worry about environmental
has led to the emergence of new types of consumers that show their purchasing
decisions. The role of social marketing appears to eliminate or reduce concerns
(Chamorro and Tomás, 2006).
The concept of social marketing is that
each organization must first determine needs, wants and interests of target
markets, so that it could provide the survival and promoting the welfare of
both consumers and society. Social marketing, social marketing changes and
behavior reform all are in order to improve health, social and environmental
development and as a result the application of commercial marketing techniques
to the analysis, planning, implementation and evaluation of projects designed
to influence the behavior of the target audience and marketing aimed at
improving the welfare of the individual and society (Chen
et al., 2005). Green
marketing is a movement within the social marketing approach and in recent
years has found its way into the world of marketing (Chamorro and Tomás, 2006). Green
marketing can be an effective step in sustainable and inclusive development and
sustainable development and inclusive path do not destroy a country's natural
resources and minimize pollution of the environment (Cao,
2011).
Determining the effects of green marketing
on customer satisfaction and loyalty and willingness to positive oral
Advertising is the main objective of this research. Given the huge breadth of
consumer cooperatives in the country, it is useful to understand. If there is a
positive impact, it is expected that customers promote green marketing by oral
propaganda in society and promote social responsibility and community action on
major environmental issues.
Green marketing:
Environmental impact due to the limitations
resources in the world and non-renewable of many of them are no longer confined
to the borders of the country and governments can freely and independently make
decision on the resources within its borders, because the consequences of these
decisions will come back to other people as well. Social responsibility is
beyond the positive attitude to the environment because it takes into account
all aspects of product consumption by customers. In this approach, not only the
environment and the ecosystem, but also mental and physical health of the
consumer and even issues like population growth are into consideration. Social
responsibility in marketing is to direct the consumer tastes of society which
would require a long-term perspective. Social responsibility will be discussed
into four main factors that include: consumer movement, community relations,
green marketing and diversity
(Pride and Ferrell, 1995). Some
evidence suggests that green consumer who wants to protect themselves and their
surroundings, and this is the kind of social responsibility and makes more meaningful
choices by consumers (Bovee and
Thill, 1992; Baker, 1996;
Kotler and
Armstrong, 1999).
This paper tries to discuss that green
marketing is a dimension of social responsibility. Unfortunately, most people
believe that green marketing refers solely to the promotion or advertising of
products with environmental characteristics. Statements such as recyclable and
compatible with ozone are what most consumers consider them associated with
green marketing. Green marketing will be a much wider concept if it can be used
in consumer goods, equipment or services. Green or environmental marketing
consists of all activities developed to create and facilitate exchanges in
order to satisfy human needs and desires, so as to satisfy the needs and
desires with the least harmful effects on the environment (Polonsky
and Rosenberger, 2001). Also,
all the individual and industrial consumers are more conscious about the
environment and have become more interested (Rahbar, abdul wahid,
2011). It seems that green marketing is operating using green marketing mix
which includes the design and pricing for green products and green advertising
distributed in accordance with green standards (Rivera, 2004).
Green products design:
Green product is an important element in
the green marketing mix. The ecological purpose of the products’ design is to
reduce lead contamination. Green products protect the natural environment and
reduce or eliminate the use of pollutants and wastes (Polonsky
and Rosenberger, 2001). Green
product should be along with development of energy conserve and natural
resources in the production process (Grove et al, 1996). The majority of green
products have a longer lifespan than traditional products (Carswell,
Smith, 2009).
Priced green products:
Price is critical and important in mix
green marketing. Green products often have a higher price than traditional
products. Most of them have a higher initial output costs, but less long-term
costs. Most consumers are willing to pay a higher price only when they
understand the added value of the product (Polonsky and
Rosenberger, 2001). Green products have to maintain the balance of cost between
customer payment and business satisfaction to pay further fees to the security
of environment (Grove et al., 1996).
Promoting green advertising:
Promoting green means the real transfer of
environmental information to consumers that are associated with the activities
of the company. The environmental connection is very useful in the promotion (Polonsky and Rosenberger, 2001). Customers can be effective
by advertising and promotional messages that reflects the commitment of a
company on the environment
(Camino, 2007; Grove et al., 1996).
Green distribution:
Chain is a supply framework to achieve a
sustainable competitive advantage for all involved parts. The connection
of social, political issues to environmental, manufacturing companies is
interested in green supply chain to improve economic and environmental
performance. To ensure re-accepted business activities, companies often are
encouraged to create green manufacturing supply chain for the development of
environmental management systems (Environmental Management System (EMS) by the
ISO 14000standards. ( (Hong
et al., 2008).
Customer satisfaction:
In competitive global business environment,
most companies today have realized the importance of customer focus and
customer orientation. Customer focus is mainly associated with welfare of
clients (Auh and Menguc,
2007). Others expressed that customer satisfaction is the sense and positive
perception of service that they expect to receive from the organization; it is
achieved when the customer demands are determined on time and met in a manner
that he wants (Willard Hom, 2000). Many researchers
have been done in the field of customer orientation and the results have shown
that customer orientation leads to better financial performance and higher
acquisition market share
(Ambler, 1999; Appelbaum, 2004). It seems that the customer retention is
more beneficial than attracting a new customer (Rashid, 2003).
Customer loyalty:
loyalty is a positive attitude to a
phenomenon (brand, service, shop or seller), and can create a strong commitment
to repurchase a superior product or service in the future that the same brand
or product will be purchased despite the impact and potential competitors’
marketing efforts (Oliver, 1999). In 2005, researchers such as Brook and Smith
demonstrated that when a customer buys competitors’ special services, the
employees impact directly on the customer's perception of interaction quality. So
that an unhappy customer not only is possible meet other organizations to get
referral service, but also shares unpleasant experience with others, on the
other hand, the customer becomes loyal and shares pleasant experience with
others by a qualitative interaction between employees and customers (Guzman,
2012).
Word-of-mouth (WOM):
Marketers’ effort to convince their
customers, but often remain unaware of the fact that customers’ talk to each
other will have the most influence (Bruyn and
Lilien, 2008). Recommendation power of others stems
from three key factors: First, the communication is an important factor in oral
advertising. Many of the discussions with family or friends have led to the
creation of their support to the specific behaviors. Second, unlike the one-way
communication, such as commercials, customer word of mouth has a two-way flow. Two-way
communication is from the fact that one can ask questions, receive comments and
will follow good results. Third, customer word of mouth has the vicarious
experience of specificity, the people who talk to each other about products and
services have experienced the product or service. The results show that only
14% of people trust the things that they see, read or hear in commercials. Even
more, 90 percent of people trust in the products or services provided by one of
the family members, friends or colleagues, since they are those have no
interest in this regard
(Alire,
2007). Interestingly,
even in the age of computers and the Internet, people still like to personally
talk together; 80 percent of WOM are made in calls and 20% are online
conversations (Balter and Butman, 2005).
Cooperative societies:
Based on the definitions by the
International Cooperative Alliance, a cooperative is an independent community
of people who are volunteer come together to meet the needs and aspirations of
the common economic, social and cultural by a firm of economic, social and
cultural rights, with Joint ownership and control of people (ICA, 1995). The constitution of the
Islamic Republic of Iran is mentioned it as part of the economic system of the
Islamic Republic in order to extend justice, equality and social and economic
participation. The cooperative societies have widespread part in the country.
Main objective:
The main objective of this study is to
determine the influence of green marketing on satisfaction and loyalty and
willingness to positive oral advertising of customers. Due to the huge breadth
of consumer cooperatives in the country, it is necessary to understand that
whether customers of consumer cooperatives are satisfied by green marketing or
not, and are they loyal and tend to show positive word of mouth? Despite the
positive impact it is expected that the customers promote green marketing by
oral advertising in community and promote social responsibility towards
environmental issues.
Hypotheses:
Main hypothesis:
Green marketing is effective on
satisfaction and loyalty and willingness to positive oral Advertising of
customers.
Secondary hypotheses:
1. Green product has a significant effect
on customer satisfaction.
2. Green advertising has a significant impact
on customer satisfaction.
3. Green propaganda has significant effect
on customer satisfaction.
4. Green distribution has a significant impact
on customer satisfaction.
5. Green product has a significant impact
on customer loyalty.
6. Green Price has significant impact on
customer loyalty.
7. Green propaganda has significant effect
on customer loyalty.
8. Green distribution has a significant
effect on customer loyalty.
9. Customer satisfaction has significant
effect on customers’ oral advertising.
10. Customers’ loyalty has significant
effect on the oral advertising.
Conceptual model of study:
Green marketing mix includes green product,
green price, green promotion and green distribution with customer satisfaction
and customer loyalty and willingness to oral advertising will be studied as
Figure 1.
Domestic research literature:
In the study, green marketing in consumer
purchasing behavior has been investigated that the results showed that
consumers are sensitive to the environment and its related issues and focuses
on green marketing programs and social projects, and contributed in it, but do
not consider environmental issues in their purchasing behavior. (Haghighi and Khalil, 2011). In
another study entitled "Effect of selected factors on purchasing green
products" it has been identified that factors such as green brands,
marketing communications activities, attitudes based on more marketing
communications, environmental knowledge and consumer efficacy are effective on
person’s green purchasing. (Nekhaee, Kheiri, 2012). Another research on “the impact of green
marketing mix on consumers’ green purchase decisions" (Kordsholy
Habibollah et al., 2012). It was showed that each
aspect of promotion, distribution and green marketing mix price has a
significant positive effect on the purchase of green consumers, while green
products have a non-significant negative impact on green purchase of consumers.
In another study, “the impact of green marketing mix on customer loyalty to the
brand" has been investigated. The results show that green marketing mix
elements influence on customer loyalty to the brand (Safari et al., 2014).
Based on a study entitled "the effect
of consumer values and previous experience on green consumer
purchase intentions " has been proposed that companies can provide grounds
to increase the products through effective marketing strategies, with changes
to enhance the safety and beauty of their green products in the research and
the decline in consumer prices. In another study as "the effect of various
factors like social factors, attitudes, concerns, serious environmental
problems, accountability and effectiveness of environmental behavior on purchasing
green cars "were measured. De Souza and colleagues in 2006 in a study
entitled “the study of environmental label impact on consumers," concluded
that the percentage of green products consumers is inaudible. It was also found
that there are consumers that purchased green products with not very good quality, and follow environmental
information on the label. In another
study in 2001 by Sun Tanc Mai and Woody Chat as
"anticipating the purchasing environmental friendly products and green
products among Thai consumers," he concluded that the subjective norms
have major role in planning to buy a green product and purchasing aim acts as
predictor of actual behavior. The Thai consumers even if they have high
environmental science, they still are somewhat skeptical about the
environmental and do not buy green products.
In a research studied the intensity of
demographic, psychological, personality characteristics and attitude, the
actions of individuals in the protection of the environment. The results showed
that psychological and social factors have powerful effect than green behaviors
on demographic factors. It was found that people are divided in different
categories on the basis of the effect of these factors, in terms of green
attitudes that their identification will have positive effects on the
development of marketing strategies. Some studies show that customer knowledge
of the environment variable influence purchasing green products and the role of
knowledge in green marketing is to establish individual concern towards
environmental issues. As a result, knowledge of the environment has a direct
relationship with the person’s shopping intention. People who have more
knowledge in this area felt more concern about environmental issues and the
relevant information with environmentally friendly products can be processed
better. It was found in a study conducted in 1992 in 16 countries that more
than 50 percent of consumers in each country are concerned about environmental
issues. Another study was conducted on Australian consumers, 61.5% of
consumers are willing to pay more on average for eco-friendly products.
The methodology:
This study is practical in terms of the
purpose and descriptive method is used. To explain and describe the status of
variables and data collection, survey study of field branch is used. The
population of the city consisted all customers of the cooperative societies in Urmia. Due to the unlimited number of samples, 384 were
considered by Cochran formula. 400 were considered to have more confidence and
the random sampling method was used. Early summer in 94 was determined as time
domain for data collection.
Data collection tool:
A researcher made questionnaire using
several standard questionnaire was used to collect data from the population and
in order to test the hypothesis and for its design, a five-point Likert scale (from strongly disagree to strongly agree) was
used. The first part consists of 28 questions that independent variables of
questions 1 to 18 were related to green marketing including green products,
green advertising, green price and green distribution and questions 19 to 28
measured variables of customer satisfaction, customer loyalty and positive word
of mouth of customers. The second part statistically describes the demographic
characteristics such as the field of study, education, gender, age and
experience.
Validity and reliability:
Standard questionnaire was used to measure
satisfaction and loyalty and word of mouth and a researcher-made questionnaire
was used to measure the variables of green marketing model. Validity was
reviewed and approved by the use of experts’ ideas and exploratory factor
analysis and reliability using Cronbach alpha (all
greater than 0.7).
Data analysis:
Normality of data:
First, Kolmogorov-Smirnov normality test is
used to determine the required tests (parametric or non-parametric). The
results showed no normal distribution, and therefore nonparametric statistics
were used.
Linearity of data:
One of the main requirements for structural
equation modeling is to determine the linearity of the data which is determined
by Pearson correlation test. Pearson correlation test on the data from this
study showed linear relationships between variables.
Structural equation modeling - partial
least squares method (Partial Least Squares):
Structural equation models usually are a
combination of measurement models and structural models. Based on the
measurement model, researchers define which of the observed variables or
indicators are as the recipient of which latent variable and based on the
structural mode, it can be determined which independent variables have an
impact on dependent variables and which variables are related together (Ghasemi, 2013). Due to the lack of normality of variables
in this study, the covariance-based structural equation modeling was used and
structural equation modeling based on partial least squares were used to test
the hypotheses. For this purpose, smart P.L. S. software was used which has no
such restrictions and is superior to LISREL and AMOS software.
Research measurement model:
A series of indicators used in order to
prove the quality of measurement and structural model in smart P.L. S. software
which is reported in the form of a table. There are three basic steps to test
the hypothesis of structural equation modeling.
The first step:
The effect of independent variable on the
dependent: if the value of t is between the range of 1.96 + 1.96, the effect of
independent variable on the dependent is rejected and the hypothesis cannot be
confirmed. But if t is not in this range, the hypothesis is significant and the
null hypothesis can be rejected at a significance level of 0.05 and we can
enter into the second step.
Second Step:
Determining the direction of the effect: in
order to determine the effect, standardized coefficients should be considered, If
the direction is positive, represents a direct positive impact of the dependent
variable on independent and if it is negative, indicates the reverse effect.
Third Step:
The impact: the effectiveness on standard
coefficients should be noted. The quality of the measuring model and structural
model must be tested before testing the hypotheses. Quality structural model
means if the independent variables predict the dependent variable or not? In
this case, one of the criteria contained in the application as credit
redundancy is used. If this amount is positive, it can be concluded that the
structural model is of an appropriate quality. Also Communality index is used
to the quality of measuring model which should still be positive. The
combination of reliability, average extracted variance by its statements has
been used to assess the quality of every block or every latent variable. Determination
coefficient is used to evaluate the predict quality of the independent
variables on the dependent variable that the results of these indicators can be
seen in the table below.
According to Table 1, the average extracted
variance of all structures is higher than 0.5. It shows that all statements of
each item or latent variable could explain at least 50% of the structures’
variance. Combination Reliability of variables is also higher than 0.7 which
indicates that all the items of a variable have internal compatibility with
each other. As share index is not negative for all variables and is above zero,
determines the high quality of the measurement model. Given that the
coefficient of determination in structural model shows endogenous latent
variables, and redundancy index also is positive, the structural model is
desirable.
The results show:
1- Green product has a significant effect on
customer satisfaction. This hypothesis has been confirmed thus green products
will have to be along with customer satisfaction. Green value has a significant
impact on customer satisfaction. This hypothesis has been rejected; significant
point in these findings may be that the prices of goods and services are often
higher than prices of typical goods and services. Green price can be offering
good value as paid the price.
2- Green advertising has a significant impact
on customer satisfaction. This hypothesis has been confirmed. These findings
indicate the need for green advertising in public, because customer
satisfaction is an important factor for development and promoting the use of
green goods and services.
3- Green distribution has a significant impact
on customer satisfaction. This hypothesis has been confirmed, this result
suggests that use of a modern transport system with environmental
considerations and the lowest customer satisfaction will lead contamination.
4- Green product has a significant impact on
customer loyalty. This hypothesis is rejected. This finding may be due to lack
of expected result in the range of green products in the research community.
5- Green Price has a significant impact on
customer loyalty. The hypothesis is rejected that means the absence of
significant effect of price on customer loyalty. This result may be due to
higher prices of obtained green products and the research community still does not
have sufficient confidence in the green price.
6- Green advertising has a significant impact
on customer loyalty. This hypothesis has been confirmed and it can be concluded
that green advertising has a significant and positive impact on customer
loyalty. The results of research are similar to Mac (2000), Safari et al.
(2014), Asadollahi (2005) and Salar
(2004).
7- Green distribution has significant impact
on customer loyalty. This hypothesis has been confirmed that means green
distribution has positive impact on customer loyalty. This finding is
consistent with Safari et al (1393) research.
8- Customer satisfaction has positive effect on
customers’ oral advertising. This hypothesis has been confirmed and
demonstrated the significant impact of customer satisfaction on positive oral
advertising. These findings are consistent with results of previous studies.
9- Customers’ loyalty has effect on customer
Oral advertising. This hypothesis has been confirmed and stated high impact of
customer loyalty on their positive oral propaganda, the results are parallel
with the findings of previous research.
CONCLUSION:
Environment has taken rising tide of global
consideration. This wave has been started from developed countries and has
spread into most developing countries. The need to protect and preserve public
support for the conservation of nature creates no way back for destructive
production to the environment. Gradual government pressure, market competition
and changing customer attitudes have required companies to comply and use Green
Marketing's approach. Companies and businesses must use re-engineering
production processes in product design and strengthen their position in the
competitive position. Otherwise they will lose the green train. This study
investigated relationships between green marketing variables including (green
product, green promotion, green price and green distribution) along with
customer satisfaction and loyalty and word of mouth and the direct impact is
visible on the results of most hypotheses. Summary of the results and findings of ten assumptions offer good understanding of the main
hypothesis (green marketing affects customer satisfaction and loyalty and the
desire to customers’ oral advertising). The results show that 7 hypotheses of
ten hypotheses are confirmed and three hypotheses have been rejected. Looking
to the confirmed hypothesis (positive effect of green products and green
advertising and green distribution on Satisfaction and positive effect green
advertising and green distribution on customer loyalty and also positive effect
of customer satisfaction and loyalty on positive oral advertising of clients)
against rejected hypothesis (the impact of green price on satisfaction and
green product, and also green price on customer loyalty) can conclude the
impact of green marketing on satisfaction and customer loyalty and word of
mouth of customers. However, this is visible in positive path coefficient of
customer satisfaction and loyalty in green marketing mix as 0.402 and 0.544
respectively and high levels of t are visible as 4.881 and 6.350, respectively.
Based on the results of the study hypothesis test, the significance of each
variable in the model can be checked using the coefficient value. According to
the results in Table 2, the importance of each green marketing variable are
visible based on the path coefficient. The impact of green distribution to
customer satisfaction coefficient is of utmost importance (0.288) and the
impact of green propaganda of customer on satisfaction (0.249) and finally, the
impact of the green product on customer satisfaction coefficient (0.242) are of
the least importance. Also, the impact of green distribution on the customer
loyalty with path coefficient (0.372) has higher importance than the impact of
green advertising (0.258) on customer loyalty. The importance of the impact of
customer loyalty on oral Advertising with path coefficient (0.544) is with
higher importance than the impact of customer satisfaction on oral propaganda
with the coefficient (0.402).
RECOMMENDATIONS:
Summarized results of 10 assumptions shows
that the main hypothesis is approved and green marketing has impact on customer
satisfaction and loyalty and positive willingness to oral propaganda of
customers. Therefore it is recommended to consider green marketing by companies
and consumer cooperatives by building customer satisfaction and loyalty, and
thus customers tend to pay special attention to positive oral advertising and
try to make positive and uplifting overall performance of the company in
relation to green marketing mix (green product, green price, green ad, green
distribution). It will not be possible without sustained attention to
higher-quality of green products and services and reasonable pricing and
creative green advertising from the family to society and promoting green
distribution systems. Satisfying the customers is very important and sensitive
and it is possible to have difficulties to establish an appropriate level of
satisfaction resulting from the use of green products and services. It is
proposed that enhancing community smart and creative awareness of green
advertising to increase the level of customer satisfaction and loyalty
continuously to find the higher prices of green products and services
justification and customers receive a greater appreciation of the value from
using green products and services. Satisfied and loyal customers will
venture to oral propaganda positively. However, it is recommended to kept
physical interactive environment warm to develop and promote positive public
oral Advertising that can be from periodical conferences or seminars to virtual
environments (including social networks and websites) to create and develop the
positive tenor of oral propaganda. Of course it is easy to get that dissatisfaction
and lack of customer loyalty that can result from defects in each component of
green marketing, or a series, ads will cause negative verbal interactions, thus
it must always be considered and attempt should be done to resolve them, for
example, if a product is presented as a green product and propaganda for it to
be done, but it is not certain product green or with negligible green
nature and advertising is extreme about
it, the customer will show dissatisfaction and no loyalty, and negative verbal
propaganda. Therefore it is recommended to consider the fair in green
advertising to hear fewer words like green lie by customers.
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