International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064 Impact Factor (2012): 3.358 Volume 3 Issue 10, October 2014 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Segmentation of Green Consumers Meera R. Mayekar 1 , K. G. Sankaranarayanan 2 1 Associate Professor in Commerce, G. V. M.’s G. G. P. R. College of Commerce & Economics, Farmagudi, Ponda Goa 2 Associate Professor in Commerce, Director, Zantye College Research Centre, Narayan Zantye College of Commerce, Bicholim Goa Abstract: Consumer concern for environment has increased considerably in recent years. With increasing focus on well-being of environment more and more consumers show concern about effects many products might have on the earth. Businesses have now realized that, in future, consumers’ purchase decisions will be based on environmental concern. This has led to development of green products and accompanying use of green marketing. A wide range of green products such as recyclable paper, eco-light bulbs, eco- friendly detergents, automobiles, organic foods amongst others are now available in the market. The concern with environmental issues has resulted in a new segment of consumers’ i. e. green consumers. The study examines the environmental concern of consumers in India and has developed a typology for segmentation of green consumers based on green product purchase behavior. Keywords: Environmental concern, green consumers, green products, pro-environmental behavior 1. Introduction Consumer concern for environment has increased considerably in recent years (Chitra, 2007). With increasing focus on well-being of environment more and more consumers show concern about effects many products might have on the earth (Carlson et. al., 1996; Laroche, Bergeron, & Barbaro-Forleo, 2001). Businesses have now realized that, in future, consumers’ purchase decisions will be based on environmental concern. This has led to development of green products and accompanying use of green marketing (Pickett-Baker & Ozaki, 2008; Banerjee, Gulas, & Iyer, 1995). The concern with environmental issues has resulted in a new segment of consumers’ i. e. green consumers. The study examines the environmental concern of consumers in India and has developed a typology for segmentation of green consumers based on green product purchase behavior. 2. Literature Review Environmental concern has a direct relationship with pro- environmental behavior (Hines et al., 1987). Environmental concern can have a significant influence on the degree to which individuals are motivated to change behavioral practices so as to eliminate environmental problems (Seguin et al., 1998). Environmental concern indicates “the degree to which people are aware of problems regarding the environment and support efforts to solve them and or indicate the willingness to contribute personally to their solution” (Dunlap and Jones, 2002).To measure and understand people’s ecological concern, Maloney & Ward (1973), have conceptualized such concerns as the amount of knowledge (environmental knowledge) about, the degree of emotionality (Environmental affect) toward, and the level of verbal commitment (environmental intention) and actual commitment (environmental behavior) to ecological issues (Chan R. Y., 1999).The increase in the environmental concern has resulted in increased demand for green products, a situation which is well exploited by a number of enterprises offering green products and services (Chan K. , 2000; Juwaheer, Pudaruth, & Noyaux, 2012). Green products or environmentally friendly products are products which intend to reduce negative impacts on the environment and these products provide considerable enhancements all over the whole product life cycle (Pujari & Wright, 1996). A wide range of green products such as recyclable paper, eco-light bulbs, eco-friendly detergents, automobiles, organic foods amongst others are now available in the market (Juwaheer, Pudaruth, & Noyaux, 2012). Growth of environmental concern has led to a phenomenon known as "green consumerism", a market-place orientation in which consumers' purchase, product usage and disposal decisions are driven by a desire to preserve nature's ecological balance (Carlson, Grove, & Kangun, 1993). Ottman (1992) defines green consumer as “individuals looking to protect themselves and their world through the power of their purchasing decisions. In their efforts to protect themselves and their world, they are scrutinizing products for environmental safety”. This definition contains two motivating forces for seeking product information and taking action: to protect oneself and to protect one’s world. Elkington (1994) 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. Green consumers are environmentally conscious consumers for whom environmental considerations are important purchase motivators (Singh, 2011).Ecological consumer is an individual who is interested and concerned for the environment and shows an important verbal and real ecological commitment. Furthermore, as a result of their concern for the environment, their environmental intention and their final ecological behavior are both higher (Fraj- Andres & Martinez-Salinas, 2007).The factors responsible for the growth of green consumerism include heightened awareness of green issues among people often as a result of media coverage; increased levels of information available to help green consumers make informed decisions; emergence of an increasing number of green substitutes to traditional products; widespread use of green themes in advertising; a shift in values towards concern for environment and society; and increased marketing and merchandizing activity among environmental and social charities (Strong, 1998). Paper ID: OCT14713 1709