Abstract

Green management concept has recently become persistent and frequently discussed public issue as the effect of dramatic increase in environmental awareness all over the world. Consumers start to understand that careful selection of products can help protecting the environment while enviropreneurs start to consider effects of their business activities to the environment. However, how environmentally-friendly is a green environment? Is it business strategy or stratagem? The study answered sceptism related to the implementation of green marketing in Multinational Companies in developing countries. The data obtained from from 75 consumers of the products manufactured by Nestle in Lampung, Indonesia were analyzed using path analysis method. The findings showed green management had significant influence towards consumer preference but conventional marketing mix the company applied did not have significant influence towards the consumer preference. Some recommendations were formulated as the response towards the findings.

Highlights

  • Since the late 1980s until the last few decades, consumer awareness towards the environment has increased progressively as more evidence that consumerism contributes to environmental degradation such as pollution, deforestation, climate change and global warming begin to appear

  • The finding described that green consumerism and green products as the components of green marketing may support high product attribute and effect to the environment weighing as the elements of consumer preference

  • The findings showed that conventional marketing mix did not have significant influence towards consumer preference

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Summary

Introduction

Since the late 1980s until the last few decades, consumer awareness towards the environment has increased progressively as more evidence that consumerism contributes to environmental degradation such as pollution, deforestation, climate change and global warming begin to appear. More consumers believe that environmental issue is a pivotal issue to discuss They are willing to purchase more expensive, environmental-friendly products (Saini, 2013; Chhay et al, 2015; Biswas, 2016). Green consumers are the result of public concern towards the environment so that the public decide to buy green products. Companies realize that they can take advantage of the momentum of green consumerism by managing the environment issues more carefully and gaining more profit from that. Green management practice and green consumerism movement has expanded to Asia where environmental damage has begun to be threats for both the government and the society

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