Review Article: 2023 Vol: 27 Issue: 3
Krishanveer Singh, GLA University
Citation Information: Singh, K. (2023). A study of green marketing strategies adopted by marketers. Academy of Marketing Studies Journal, 27(3), 1-13.
The green marketing concept has been introduced to many businesses in India, but putting it into practice is not simple. The adoption of green practices is influenced by a number of variables, including cost, client attitude, and lack of collaboration. Rapid industrialization and advanced technology have both beneficial and harmful impacts. Consumers increasingly demand businesses to conduct themselves ethically while dealing with them as they become more conscious of the environment. Numerous businesses work to cultivate a favorable impression in customers' minds. The company/ Marketers are aware that its participation in economic, social, and environmental activities has a wider influence on society and will be taken into account for corporate social responsibility. In this competitive period for green marketing, the paper covers numerous marketing strategies used by manufacturers and marketers.
Green Marketing, Strategies, Marketers, Promotional Techniques, Consumer Awareness, Product Quality.
The country's reputation for its agricultural economy, India is also making strides toward industrial independence. Indians have been praised for their kind nature, progressive outlook, and flexibility. The diverse population offers a wide range of food options to suit a variety of palates. Consumers' perspectives vary because of factors such as their ages, levels of education, professions, genders, and incomes. Customers' inclinations and actions during shopping are influenced by these elements. In the past, consumers' buying habits were shaped by the traditional marketing idea, which put an emphasis on consumers' way of life. Sales-focused and using methods that would increase profits quickly, marketers were focused on the bottom line. However, the free movement of products and services and greater consumer expenditure throughout the globe suggests significant economic development as a result of the increased globalization, privatization, and liberalization Chyong et al. (2006). Consumers' demands and preferences force manufacturers to either create whole new items or improve upon those already on the market.
Rapid urbanization, a byproduct of the industrial revolution, raises customers' already high expectations for a product's quality. On the one hand, technological progress raises consumers' hopes of having their basic needs met, but on the other, the production of these goods causes environmental damage, such as water and river pollution, climate change, and the depletion of nonrenewable energy sources Chang & Fong (2010). With the environment deteriorating, this becomes a major issue. Marketers' primary concerns have shifted to answering inquiries about customer preferences without jeopardizing compliance with environmental regulations or their bottom line. Marketers create green marketing goods in response to clients' purchasing behaviors and green policies Alp et al. (2008).
Green marketing, also known as environmental marketing or sustainable marketing, refers to an enterprise's conscious attempts to reduce its impact on the natural world via careful product development, advertising, distribution, and pricing Grant (2008).
There have been three distinct stages in the development of green marketing:
1. phase- Ecological
2. phases- Environmental
3. phases- Sustainable
A. Ecological green marketing: All the marketing efforts here focus on solving external issues. The time frame included the 1960s up to the early 1980s.
B. Environmental green marketing: This time period began in the latter part of the 1980s. In this setting, efforts are made to create novel goods that minimize environmental impact by eliminating unnecessary waste and pollution.
C. Sustainable green marketing: Its origins date to the years after the turn of the millennium.
What is green marketing?
In business terms, "green marketing" means promoting a good or service because of the positive impact it will have on the planet. It's possible that the product or service itself is environmentally friendly, or that it was made and/or packaged in a manner that minimizes its impact on the environment Ginsberg & Bloom (2004). Green marketing rests on the premise that customers will value a product or service more highly if they perceive that it is environmentally friendly. Assuming that customers would pay more for green items than they would for a less green equivalent alternative product is a not-so-obvious premise of green marketing Ishaswini & Datta (2011).
Benefits of Green Marketing
Businesses that innovate eco-friendly goods and services get a competitive edge over their rivals, gain access to new markets, and ensure the long-term viability of their profits.
The following are a few of green marketing's many benefits:
1. It guarantees long-term success and development.
2. Although the upfront investment is higher, the savings are substantial.
3. It facilitates business marketing with environmental considerations in mind. Benefiting from its use, you may enter previously inaccessible markets with ease and gain a competitive edge.
4. To work for environmentally conscious businesses is a source of pride and duty for the vast majority of workers.
Generation of green marketing
Baby boomers, the first generation to be affected by environmental concerns, are now in their fifties and sixties. People who were born between 1946 and 1964 are known for their increased concern for the environment and social justice, as well as their preference for organic foods. These individuals are well-versed in environmental science, and as a result, they refuse to buy or use any items that contribute to pollution. Generation X is the second generation and is often referred to as "the eyes of the world." This generation includes everyone born between 1964 and 1977. The environmental crisis hit them directly. It is human activity, they know, that is causing environmental damage Jain & Kaur (2004). They are aware of the potential social, political, and educational implications of environmental concerns. Those who belong to what is often referred to as "Generation Y" were born between 1980 and 1990. These individuals are classified as "young adults," defined as being between the ages of 20 and 30. The youth of today are technologically savvy, able to adapt to new developments, adept at using the internet, and well linked to one another via social media. Digital media had a major impact on their lives. They have a worldwide perspective on environmental problems, and they are equipped with the knowledge and technology to take the necessary precautions and run environmental education programs to raise awareness of people's duties in this area. The youngest members of society are those that fall within the "Z" generation, who are now around the age of 18. They are familiar with eco-friendly goods because they are taught about the need of taking care of the environment and because their parents and grandparents buy and eat organic foods.
According to David Aaker, a company's marketing strategy is "a process that enables the business to focus its resources on the most promising possibilities with the dual objectives of expanding market share and boosting revenue." Included in the definition of marketing strategy are the fundamental and long-term marketing activities that address the examination of the strategic starting point of a marketer and the development, testing, and adoption of strategies with an eye toward the marketplace. This is the plan that the company uses to achieve all of its marketing objectives at once Awad (2011). To maximize profits and ensure the company's continued viability, a solid marketing plan should be derived from market research and centre on the optimal distribution of goods and services. The cornerstone of every successful marketing program is a well-thought-out marketing strategy Cornelissen et al. (2008).
Green Companies and Marketers
Each marketer has a duty to consider the community at large while making business decisions. Businesses have an obligation to satisfy customers' demands for high-quality goods Kong et al. (2014). Companies have a duty to protect the environment and should avoid depleting natural resources whenever possible, whether that be during production or service delivery or in other ways, such as through biodiversity preservation, energy efficiency, water conservation, natural resource preservation, and climate control Kuchinka et al. (2018) Businesses could follow the trend of "going green" by actively working to change their operations from "blue" to "green."
Factors Influencing Green Marketing
Lack of awareness: Urban centres, not rural ones, are where green marketing really takes off. The environmental benefits of green goods and the risks posed by conventional products are more known to the informed public. Consequently, there will be a significant time and energy investment required to fully embrace the green culture.
Cost Factor: Green marketing is the promotion of environmentally friendly goods and services such as renewable energy, energy efficiency, and eco-friendly transportation. As a result of the massive investment in R&D required for the promotional initiatives, their price tags have skyrocketed.
Non-co-operation: Green technologies have a hefty initial investment, which means profit margins are poor in the beginning. Green marketing tactics are not effective in the near term and need careful long-term planning. It might take a while to win over a consumer, and they may even refuse to pay exorbitant prices. Sometimes firms that try to go green in their marketing fail to persuade their stakeholders of the long-term advantages that might be gained by doing so.
Social-Responsibility: A growing number of businesses see doing so as their ethical obligation to contribute to the common good. Because of government intervention, businesses must adhere to green marketing best practices.
Green Marketing Tools
Green marketing aids customers in deciding whether or not to purchase a product. Consumers' impression of goods improves thanks to green marketing strategies including eco-labeling, eco-branding, and environmental advertising Ishaswini & Datta (2011).
Eco-labelling: The purpose of the label is to tell the buyer about the manufacturing process so they may make an informed purchase. The eco-mark is a voluntary method through which government, organization, or standards certifying agencies grant the stamp of approval guaranteeing that the product will fulfill environmental criteria, similar to the BIS (ISI) or the Agmark. It's a technique to get the word out about a product that has passed stringent environmental standards. There are ecolabelling schemes for both edibles and general merchandise.
Eco brand: Businesses have come to see that by generating an environmental brand instead of a non-green product, they may strengthen their unique identity in the marketplace. An eco-brand consists of a product's name, logo, and design if it is environmentally friendly, which serves as an additional selling feature and ultimately drives sales.
Kuchinka et al. (2018) there was a study done to see whether there was a correlation between brand loyalty and eco-consciousness. Ninety-two college students were randomly selected from participating in a survey from the United States and Romania. Brand loyalty was measured using the Brand Loyalty Scale (BLS) both before and after a made-up announcement of expansion. Our researchers used the New Ecological Paradigm (NEP) scale to gauge how people feel about environmental protection. Data analysis using paired samples t-test revealed a favourable link between NEP scores perceptions of the company's commitment to sustainability and consumer loyalty to the brand. There were no discernible variations in sustainability beliefs between men and women in either the United States or Romania. Just like women, guys shared a deep commitment to protecting the planet.
Reddy & Reddy (2017) the author of this research made an honest attempt to catalogue the level of awareness among consumers about the connection between green marketing and long-term sustainability. In order to gauge customer sentiment, a carefully crafted questionnaire was devised, using a 5-point Likert scale. The survey was conducted with a sample size of 100, with respondents selected at random using the sing survey method. After the data was obtained, it was coded and evaluated using statistical methods like mean and percentage. The study's results showed that consumers care deeply about environmental issues, and that green marketing may contribute to sustainable growth in India.
Kumar & Lata (2014) the idea of "becoming green" has been embraced by both producers and buyers. 'Energy Efficient Electrical Appliances' are narrower in scope and include things like CFL bulbs, organic foods, recyclable paper, phosphate-free detergents, and so on. Although familiar with these items, the research found that several reasons prevent individuals from making environmentally responsible purchases despite their knowledge. The product's price is an important consideration.
Rastogi (2015) highlights the importance of green marketing and its advantages over traditional methods. She arrived to the conclusion that "green marketing" is a valid strategy with a beneficial effect on the natural world. In addition, the report argued that green marketing is just as important for businesses to implement as it is for the general public.
Jain & Kaur (2004) created both an open-ended and closed-ended survey. Five factors were included in the analyses: how people feel about the environment, how concerned they are about the environment, how genuine their environmental concern is, how different groups and individuals contribute to environmental issues, and how successful environmental efforts are. Chronbach's alpha was used to determine the level of reliability. The survey discovered a "slightly contrasting" level of environmental consciousness and understanding compared to that of consumers in industrialized nations. Shoppers in industrialized nations care more about environmental concerns because of their heightened environmental consciousness.
Sharma (2011). Along with discussing the green marketing mix, we went through the four phases of a product's lifespan, from creation to consumption to disposal. The final verdict was that businesses should reevaluate their tactics. There is a pressing need to educate the public.
• To identify the factors influencing the buying behavior of consumers.
• To analyze the marketing strategies used by companies to promote green products.
• To study the awareness and knowledge from several sources.
H1: Social surrounding has no influence on consumer buying behavior in relation to green items.
H2: Environmental concern has no influence on consumer buying behavior in relation to green items.
H3: Media Coverage has no influence on consumer buying behavior in relation to green product marketing.
India is predominantly a developing nation with a large agricultural industry. But it seems that the economy is shifting from one centred on agriculture to one that is rapidly industrializing. India has become a centre for education and is working to enter the digitalization phase.
The collection of procedures and methods employed throughout the study's execution are referred to as the research design. It should be created in a way that may improve the questionnaire's validity and enable the collection of the necessary data.
The descriptive research aims to determine respondents' decisions to purchase green goods in light of their demographic profile, which includes gender, age, education, area, and employment. Additionally, it makes an effort to research the variables that affect how consumers perceive being green. Consumers' intentions to purchase green products are treated as the dependent variable in the research, whereas the independent variables include the price, social influences, environmental influences, media influences, and individual norms.
Consumers adopting green marketing products and manufacturers dealing in green marketing practices in indore city.
For the investigation, a non-probability method, or convenient sampling, was used. The chance of each responder being selected for the research in this case is unknown. As implied by the name, the sample was chosen since it was readily available and accessible. In the convenient sampling approach, information is gathered from respondents from the whole population who engage in the research and provide the necessary data. 500 respondents from Indore, Madhya Pradesh, make up the sample.
The self-structured Questionnaire, which was created from the literature recommended by experts in the relevant subject, was necessary for the gathering of primary data.
Working papers, conference proceedings, books, articles, reports, and publications were used as the primary sources for secondary data collection.
The study focuses on the marketing tactics used by producers. Several variables were found based on earlier investigations. The replies that the respondents submitted were subjected to factor analysis. Underlying factors from a variety of crucial variables may be found using factor analysis. Using the SPSS approach, descriptive statistics were used to analyze the raw data.
Marketers need to be aware of their external environment in order to get a competitive advantage. To protect themselves from dangers and take advantage of opportunities, marketers must strengthen their internal organizational structures and look for areas of vulnerability. The purchase of equipment with modern technology, process changes, and other marketing strategies need a significant expenditure. The idea of green marketing, which differs from the conventional method of marketing, has been adopted by several businesses in Indore. Marketers are responsible for providing consumers with information about green goods so that they are aware of the steps used to create new items and their characteristics. The willingness of customers in developed countries to purchase environmentally friendly goods is debatable, thus marketers need to understand the elements that affect consumers' purchasing decisions. Marketers of green goods have used a variety of marketing techniques. Green product makers were given questionnaires to complete.
When the majority of manufacturers were asked "what advantage do the marketers obtain after using green marketing techniques," 32% of them said that preserving product quality will retain their goodwill. Some of them (27%) said that it is vital to launch a new product and obtain a competitive edge in the market, followed by company sustainability, in order to survive in a competitive climate. It has been noted that for manufacturers, growing sales was a secondary goal Table 1.
|Table 1 Benefit Gained by the Marketers|
Companies have a duty to society, their workers, the environment, and their customers. Fewer than one-third of businesses, on average, place safety of their products above everything else. In their view, protecting the security of products is an example of basic quality. Their environmental consciousness is higher by 26%. The preservation of natural resources would be unaffected if the air were not polluted by hazardous gases. So, businesses prioritize secure product design. Responsibility to workers came in at 23%, with social responsibility coming in at 24%. Some of its customers have expressed the opinion that the security of its goods, services, and infrastructure is a basic need. Because of the interconnected nature of the company's workers, society, product, and environment, each has equal weight in the company's overall obligations Table 2.
|Table 2 Preferable CSR Practices of Marketers|
|Preferable CSR Practices||Frequency||Percent|
The data collected from the respondents was put through a factor analysis. Factor analysis is a statistical method for extracting underlying factors from a data set consisting of many critical variables. Factor analysis, as defined by Nargudkar, is "a collection of procedures that, by examining correlations between variables, decreases their number into fewer factors, which describe much of the original data more cheaply."
Concern for the environment, customer awareness, product quality, recycling initiatives, and a focus on creating a green environment were only few of the marketing focuses of this investigation. Each factor has been given a name that makes sense in light of the data that has been stored into it Table 3.
|Table 3 Factor 1: Environmental Concern|
|Item NO.||Description||Item Load||Factor Load||% of Variance|
|1||Making green goods using ecologically favourable technologies||0.646||1.66||10.890|
|2||defining environmental standards that suppliers must adhere to||0.537|
|3||To safeguard the environment, turning to alternate energy sources||0.477|
Consideration for the Environment is the first consideration, and it consists of three sub factors. You may find these goods here: Production of eco-friendly goods via the use of environmentally friendly technologies; establishment of environmental requirements suppliers must satisfy; and transition to alternative energy sources (loads of 0.646, 0.537, and 0.477, respectively). A total of 10.89% of the variation can be accounted for by this component, making it the single most important factor, as shown by the rotated matrix.
The use of cutting-edge technology allows for the production of both environmentally friendly and non-green goods. The product may be manufactured using high-tech technology, but that doesn't mean it's eco-friendly. The production of green goods, as opposed to conventional products, requires the use of ecologically friendly technology. It might be anything from machinery to tools to equipment. In order for the supplier to achieve the environmental standards specified by the manufacturer, the manufacturer must invest his time in instructing the supplier on the kind of material to be utilized. This suggests that manufacturers are increasingly concerned about environmental impact despite the high costs associated with producing these goods. As a result, efforts to create eco-friendly goods have increased. Some companies are switching to more costly renewable energy sources in an effort to protect the planet Table 4.
|Table 4 Factor 2: Promotional Techniques|
|Item NO.||Description||Item Load||Factor Load||% of Variance|
|4||Brochures are used to promote a green product||0.708||1.622||9.500|
|5||There are advertisements for green products in the newspaper and magazines||0.483|
|6||There is a link to an internet advertising for a green product||0.431|
The second component is a set of three products and their respective loads used in promotional strategies. There are three constituents that contribute to the whole, and they are: We provide newspaper ads featuring green items, brochures, and internet ads for green goods. The second element, this one accounts for 12.606% of the total variation. The commercial will showcase the newest item available to consumers. It's how people find out about cool new stuff that companies are selling. Ads in newspapers, brochures, and on the web are written to inform readers about the product and shape a favourable impression in their heads. In order to promote and influence customer purchasing decisions, we provide all relevant information in a clear and engaging fashion, including product advantages, use, ingredients, validity, etc. "that the purchase choice approximately 70% of respondents gets impacted by environmental messaging in commercials and product labelling," concluded Chase and Smith. Davis The customer is interested in learning exclusively about the particular product or service they are considering purchasing (1993).
The third aspect, "customer awareness," is designed to raise consciousness about the marketers' eco-friendly offerings. There are three parts to this factor, and they are as follows: The green colour of our products has a favourable effect on consumers' minds, and our education campaign is employed as a marketing weapon, all of which our marketers believe in. In all, there are 1.76 factor loads Table 5.
|Table 5 Factor 3: Consumer Awareness|
|Item NO.||Description||Item Load||Factor Load||% of Variance|
|7||Our marketers support the use of green products as examples||0.614||1.76||9.384|
|8||An educational campaign is used as a marketing technique||0.616|
|9||The product's green colour alerts customers to its eco-friendliness||0.530|
It's crucial to get the word out about the product. Providing a live demonstration is the most effective method for informing customers about the benefits and features of a product. Ultimately, this comes down to consumers being able to easily make apples-to-apples comparisons with conventional alternatives. Advertising is the first step in informing customers about a product, and consumer demonstration and education campaigns are the next step on the path to a feeling of inner peace with one's purchase. In this case, the product's green colour is meant to convey, implicitly, that it is high-quality and eco-friendly.
In the fourth place, we have recycling practices, which might include things like Marketers are recycling packaging materials and reclaiming old products from customers, for a combined factor load of 1.214. This component accounts for 10.327 % of the total variance, which is loaded by three assertions. Many businesses value giving back to the community, Companies may aid the environment and improve their public standing via the use of exchange offer schemes. To improve their corporate social responsibility (CSR) efforts, several businesses recycle or reuse their empty containers. Some businesses that give a damn about the planet's well-being also find it worthwhile to recycle industrial trash in order to lessen the likelihood that their operations will have a negative impact on the environment. The connection with both internal and external customers benefits from increased productivity and less waste as a result of a focus on sustainability Table 6.
|Table 6 Factor4: Recycling Activities|
|Item No.||Description||Item Load||Factor Load||% of Variance|
|10||taking part in measures to reclaim used goods from customers||0.620||1.214||9.136|
|11||Packaging materials are recycled||0.594|
In order to ensure that the final product is of high quality, the fifth component is "Product Quality," and it consists of two sub-factors: obtaining product certification and designing using pollution-reducing materials. There are a total of 1.084 factor loads.
When a product receives the green stamp of approval, it means the manufacturer made an effort to use environmentally friendly materials in its construction. This means that no such harmful material is included at any stage of production, from raw materials to the final product's design. The result would be better community relations and more devoted customers Table 7.
|Table 7 Factor 5: Product Quality|
|Item NO.||Description||Item Load||Factor Load||% of Variance|
|12||Obtaining Product Certification fosters confidence||0.638||1.084||8.803|
|13||Elect for less pollution Designing using materials||0.446|
Green environment weights in as the sixth component, it is common knowledge that people act differently depending on their immediate surroundings Table 8. Somehow, people's thoughts began to mirror those of their immediate environment. Some individuals may alter their habits if they see that a portion of the land is set aside for planting rather than machines or established places. Manufacturers believe in creating chemical free items with the consequences on the environment in mind. People are more productive and have better mental health if they have access to natural elements at work Tables 9-11.
|Table 8 Factor 6: Green Surrounding|
|Item No.||Description||Item Load||Factor Load||% of Variance|
|14||Influence of greenery on office culture||0.560||0.560||8.708|
|Table 9 Factor Analysis Summary|
|Factors||Item Load||Factor Load||% of Variance|
|Brochures are used to promote a green product||0.708||1.622||9.500|
|There are advertisements for green products in the newspaper and magazines||0.483|
|There is a link to an internet advertising for a green product||0.431|
|Making green goods using ecologically favourable technologies||0.646||1.66||10.890|
|defining environmental standards that suppliers must adhere to||0.537|
|To safeguard the environment, turning to alternate energy sources||0.477|
|Our marketers support the use of green products as examples||0.614||1.76||9.384|
|An educational campaign is used as a marketing technique||0.616|
|The product's green colour alerts customers to its eco-friendliness||0.530|
|taking part in measures to reclaim used goods from customers||0.620||1.214||9.136|
|Packaging materials are recycled||0.594|
|Obtaining Product Certification fosters confidence||0.638||1.084||8.803|
|Elect for less pollution Designing using materials||0.446|
|Influence of greenery on office culture||0.560||0.560||8.708|
|Table 10 KMO and Bartlett's Test|
|Kaiser-Meyer-Olkin Measure of Sampling Adequacy||0.698|
|Bartlett's Test of Sphericity||Approx. Chi-Square||373.495|
|Table 11 Total Variance Explained|
|Compon ent||Initial Eigenvalues||Extraction Sums of Squared Loadings||Rotation Sums of Squared Loadings|
|Total||% of Variance||Cumulative%||Total||% of Variance||Cumulative%||Total||% ofVarianc e||Cumulative%|
People nowadays are very concerned about protecting the environment and are more educated and read than ever before. They are certain that green marketing can be utilized to achieve both rapid expansion and long-term success. Customers fall into a wide variety of categories, each of which has unique expectations. Among customers, some have a strong preference for buying and eating green goods, while others are aware but do not consume, buy just a little, or do not buy green items at all. As customers come to be seen as the companies' most valuable resources, marketers become even more reliant on them. The stable ecological system is the result of the efforts of consumers, marketers, and other stakeholders. Last but not least, eco-friendly and green thinking is essential for successful green marketing. Manufacturers should design their promotional tools in a way that entices customers who don't necessarily have a purchase in mind. One way this may happen is if stores, malls, and factories all started using more elaborate window displays. The field of green marketing is far more than just that. Being environmentally conscious sets a company apart from its rivals, while the quality and convenience of its green offerings help it win over consumers.
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Received: 15-Dec-2022, Manuscript No. AMSJ-22-13013; Editor assigned: 16-Dec-2022, PreQC No. AMSJ-22-13013(PQ); Reviewed: 18-Jan-2023, QC No. AMSJ-22-13013; Revised: 10-Feb-2023, Manuscript No. AMSJ-22-13013(R); Published: 15-Mar-2023