International Journal of Multidisciplinary Research and Development 311 International Journal of Multidisciplinary Research and Development Online ISSN: 2349-4182, Print ISSN: 2349-5979, Impact Factor: RJIF 5.72 www.allsubjectjournal.com Volume 3; Issue 4; April 2016; Page No. 311-315 Effectiveness and Perception of 4P’s on Green Products in FMCG 1 Varsha Agarwal, 2 Dr. Ganesh L 1 Assistant Professor, Department of Management, Kristu Jayanti College, Bangalore & PhD Research Scholar, Christ University, Bangalore 2 Associate Professor Institute of Management, Christ University, Bangalore Abstract Schultz et al, (2004) defined environmental attitude as “the collection of beliefs, affect, and behavioral intentions a person holds regarding environmentally related activities or issues”. Customer satisfaction and relationship are primary objectives of firms today but they have to recognize the advantages and opportunities to be gained from green products. This study explores the effect of four P’s (product, price, place, promotion) on attitude and purchase intentions of consumers on green products in FMCG sector. For primary data collection a detailed questionnaire was administered with use of convenience sampling and the sample employed 150 respondents from Bangalore that included students, office workers, housewives, academic staff and business people. Descriptive statistical tests and percentage values were used to analyze data and identifying contributions of variables. Central tendency values utilized to find attitude towards green products and hypothesis testing measures the difference in consumer’s attitude towards green products. Correlation analysis provides degree of relationship between variables (Independent variables: Product, price, Place, Promotion and Package, Dependent Variables: Attitude, purchase intention). Findings reveal that there exists a significant positive relationship between promotion and attitudes towards green products. Green products and packages make significant impact on consumer’s purchase intention. Willingness to pay an extra price for green products is positively correlated with purchase intention. Keywords: Green Products, Consumer Behavior, Attitude, marketing mix, purchase intention Introduction These days all companies are focusing towards environment friendliness and working on cost effectiveness and quality management of the products. Now business organizations have understood that meeting necessary requirements is not sufficient, they have to make their own competitive edge in the market and it is the only way to sustain in future. Consumers are more aware about society and companies have to serve as well as satisfy all individual wants and need and serve best for their consumers and it will help business organizations in long run. In very simple words green marketing can be defined as marketing of the products and services that are concerned about the safety of environment. FMCG is a very large sector in the Indian economy and it is very necessary for this sector that it should open its eyes for environment friendliness and should focus on selling of green products. Green marketing is a very vast field which covers many activities like modifications in products, changes in the process of production, changes in packaging, advertising to motivate towards eco friendliness and many more. This study focuses on the effectiveness as well as perception of 4 P’s (product, place, price, promotion) and packaging on green products in particularly FMCG sector. Review of literature Increased awareness about the environmental problems has caused a shift in consumer’s attitude and they are moving towards the green life style. Business organizations have noticed this shift in consumer’s attitude and trying to make their position in competitive market and exploring the industry of green marketing. Some researchers claim that green products and services are profitable for business organizations, going green can reduce the cost, green marketers can form future regulations and can gain first mover advantages (Porter and Vanderlinde 1995) [9] and (Rugman and Verbeke 2004) [10] . Now for green marketers there is an opportunity to influence the consumers and green behavior without changing their existing attitudes (Thogersen and Olander 2002) [11] . Reviews on Green Marketing In the late 1980s and early 1990s green marketing came into prominence. (Polonsky, 1994) people are concerned about environment worldwide and trying to change their behavior so that they can reduce the impact on environment. Soonthonsmai (2007) [12] said that green marketing are those activities which is taken by firms who are concern about the environment and green problems and deliver environmental friendly goods and services and create satisfaction for consumers as well as society. Peatitie (1995) and Welford (2000) [5] explained green marketing in terms of management process that is responsible for identification, anticipation and satisfaction of the desires of the customers as well as society in a sustainable and profitable manner. In the field of consumer research, these are the barriers defined for motivational as well as practical problems of green consumption (Hackett, 2000). In today’s world, companies which are following environmental practices are facing many challenges like validity of demand, higher costs and unfavorable perception of consumers (Gurau and Ranchhod, 2005). The main concern understands green consumers and their requirements and characteristics and it will help firms in developing new targets and strategic segmentation (D’Souza et al., 2007).