Green Marketing in The Decision to Purchase Cosmetic Products

Introduction

The business world has been evolving considerably and rapidly, hand in hand with industrialization, which brings economic benefits to countries; however, this growth also hurts nature, with the degradation of the environment (Miranda-Guerra et al., 2022; Khandelwal and Yadav, 2014). In recent decades, there has been an increase in the incorporation of environmental preservation issues in organizations, aligned with the growth in the awareness of caring for the planet by the markets and the customers that make it up. Preserving the earth is of increasing interest and is reflected in the increase in awareness of the depletion of natural resources by customers (Duarte, 2022; Mahmoud et al., 2022).

Care for the environment is a trend that has been growing year after year worldwide among consumers. The high levels of pollution and wear of our planet’s resources have generated reflection on the impact of actions also on the part of the supplying companies (Vergara, 2022). Therefore, the new consumer demands environmentally responsible products and services from organizations.

In Peru, there is an agreement in force until December 2026 called “The United Nations Sustainable Development Cooperation Framework,” whose purpose is the joint work between the UN, the government, and society. Additionally, in the twelfth objective, called “Sustainable Consumption and Production,” it is stated that large and transnational companies must follow sustainable practices (Las Naciones Unidas en Perú, 2021). This is how the country is working to align itself with social and environmental requirements; however, these changes are not yet reflected, requiring greater dissemination and awareness in organizations.

Given the above, a concept called green marketing linking marketing strategies with business practices that ensure ecosystem preservation is generated. This concept responds to the intense growth of interest in the environmental care activities of the government and the population, including its incorporation as part of the management for common sense and moral ethics (Duarte, 2022). The GM proposal is highly relevant since it promotes commercial-economic processes that impact the population’s quality of life at the economic level, incorporating practices that seek to mitigate any negative impact on the ecosystem (Mahmoud et al., 2022).

In that sense, the search for environmental sustainability is increasingly valued in business. Eco-friendly management practices play a key role in the responsibility of any organization, not only as part of the company’s moral or ethical standards but also because it is an element of differentiation from its competitors, using commercial actions that mitigate the environmental impact that may be caused by its productive and industrial processes. Influencing the PDP is seen as one of the main concerns of marketing managers since sales impact the profitability and sustainability of an organization. In the above lies the importance of validating which marketing strategies have an impact on the PDP (Choi et al., 2019).

In this sense, the leaders of the commercial areas must reevaluate their strategies, seeking to generate a favorable impact on the organization and also on the environment by creating an environmental culture in their consumers and collaborators. This is called Green Marketing (Cardona et al., 2017; Portugal, 2019). Khandelwal and Yadav (2014) state that companies that incorporate green practices in their management ensure sustainable success in their operation. Green marketing strategies encompass a set of techniques that seek to link companies, consumers, and the ecosystem, aiming at human welfare and social equity with minimal environmental impact (Duarte, 2022; Gonzales and Vásquez, 2020; Mougenot and Uriarte, 2022).

According to the above, there is a higher valuation by consumers of organizations that implement positive impact actions. A study conducted by Global Web Index (2018) shows that Millennials are the generation gap that promotes acceptance and willingness to pay a higher price for environmentally responsible products. This generation directly observed the problems generated by environmental pollution, making them environmentally conscious consumers; that is, when buying products and/or services, they will choose companies that meet environmental preservation standards at both the operational and strategic levels, recognizing the importance of the role of manufacturing companies in caring for the planet, responding to this by promoting eco-friendly consumption, unifying efforts to achieve sustainable goals (Cherian and Jacob, 2012; Dabija, 2021).

Different research works validate that green marketing is becoming increasingly important and is considered a fundamental tool for entrepreneurship since it generates opportunities for differentiation and recognition because consumers are increasingly aware of the impact of their consumption processes on the environment (Sánchez, 2019; Mendoza, 2019; Martínez, 2019; Díaz and Moya, 2016).

The production and commercialization sector of sustainable cosmetic products is developed under the concepts of Green-Friendly, or environmentally responsible, products. The application of green marketing strategies is aligned with the production perspective. It could even be said that adopting these practices constitutes a competitive advantage. This coincides with the profound impact of the cosmetics industry operations, whose management results in the exploitation of natural resources, deforestation, and water pollution due to all the extraction of natural resources for the production of cosmetics and the socio-environmental impact generated by their operation (Duarte, 2022; Xavier and Chiconato, 2014).

Products generated under a sustainable cosmetology scheme are defined as those whose production and commercialization do not affect the preservation of the environment; on the contrary, they contribute to its continuity (Rey, 2021; Carrión, 2020; Ortega, 2020). These types of products are considered to be part of the cosmetic industry revolution that generates a significant impact at an environmental, economic, and social level (Vega, 2018).

Consequently, the practices of promoting environmental care in the commercial area of the organizations will enable a new and better vision on the part of the customers, generating competitiveness. One of the most relevant factors in the commercial area is given by the analysis of the purchase decision process of its customers, especially seeking to determine which elements positively impact this concept. The development of environmental awareness in the market provides and generates opportunities for the growth of green marketing and sustainable cosmetic products (Shabbir et al., 2020; Dangelico and Vocalelli, 2017).

Companies, including the cosmetic products industry, should focus their marketing processes on sustainability; however, it is still necessary to investigate the impact of green practices on the different elements of the marketing process. Therefore, the question that guides this study is: how are green marketing and its dimensions related to the purchase decision in the sustainable cosmetic products industry? This research aims to determine the relationship between the GM variables, their dimensions, and the PDP variable in the market of sustainable cosmetology products. This research would allow expanding the theoretical bases regarding the conceptualization of the described variables, their dimensions, and the relationship between them, as well as validating the impact of green marketing strategies on commercial management.

Green Marketing and Sustainable Cosmetology Products

Green marketing is presented as a set of strategies that fill the gaps between traditional marketing and the problematic scenarios posed by environmental and social realities. It is defined as the involvement of a commercial organization through the application of strategies that allow producing, distributing, and disseminating products and services, causing the minimum negative environmental impact (Papadas, 2017; Shaukat and Ming, 2022).

GM constitutes practices that strengthen the awareness of environmental care in the organization and are unveiled in the commercialization and the offer process. In this sense, these practices will address the marketing mix of companies, which must contain an undeniable ecological orientation under a rigorous analysis of the impacts of the sale of products (Dangelico & Vocalelli, 2017; Papadas et al., 2017; López-Rodríguez et al., 2021).

The definition of green marketing consists of the implementation of actions by companies to reduce the environmental impact of their products and services, i.e., it is responsible for developing business strategies focused on environmental activities. Marketing goes beyond the concept of ensuring sustainability; it integrates all activities that produce, stimulate and promote respect for the environment by consumers and processes of the supplying companies (Carpio and Véliz, 2019; Miranda-Guerra et al., 2022; Khandelwal and Yadav, 2014).

Green marketing is aimed at the organizational practice of knowledge and actions within its strategic planning to satisfy consumers, creating a responsible and conscious environmental culture without neglecting the financial benefit of a company (Novillo et al., 2018). Likewise, Aguilar (2016) considers that green marketing arises from the concern of consumers to promote the preservation of the planet, consuming eco-friendly products. The Green Marketing process addresses the process of production, distribution, and dissemination, covering the needs of the target market, fulfilling the mission of the institution, and aligning what is described with environmental sustainability (Dangelico and Vocalelli, 2017; Miranda_Guerra, 2022; Shabbir et al., 2020).

A company with green marketing processes is defined as one that analyzes, identifies, and seeks to meet the needs of its target market, using practices that ensure the sustainability of the ecosystem (Shaukat and Ming, 2022). Lozano (2018) defines GM as an instrument that links the moral values of a business entity with a set of actions focused on the consumer and also states that, by carrying out environmental activities, it will be possible to educate society and generate an appropriate business strategy. Under this approach, Monteiro et al. (2015) explain that green marketing is related to business practices that help to counteract the environmental impact, based on the analysis of the composition of products and generating awareness in society.

Novillo et al. (2018) point out that green marketing is a strategy that works together with the Public Relations department. This work will benefit the brand positioning in a certain period, restructuring the marketing plan oriented to the consumer and the environment. The authors consider that this strategy is in constant evolution. Therefore, it is necessary to be at the forefront of current market changes.

The green marketing mix is classified into four strategies: green product, green price, green place, and green distribution, which comprise a series of actions that involve all its production processes (Kotler and Armstrong, 2013; Miranda-Guerra, 2022; Shabbir et al., 2020).

• The Green Product dimension, in which a product incorporates in its production management practices that mitigate the impact on the environment. This strategy generates more value for the brand, linking actions such as the reduction of harmful material, better supervision in product manufacturing, packaging and labeling, and proper waste management that will support the reduction of environmental pollution (Flores and Yapuchura, 2019; Bucio et al. 2020; Suarez et al. 2014; Moreno and Tirado, 2019).

• The Green Price dimension is defined as the perception that the product must transmit to the consumer when making a purchase, justifying its price by the added value provided. Companies apply actions such as product life-cycle assessment, green price differentiation, and a green culture, which contributes to the continuous improvement of companies in this business sector (Salas, 2018; Moreno and Tirado, 2019; Monteiro et al., 2015; Hernandez et al., 2011).

• The Place dimension or green distribution is defined as a set of sustainable criteria, where all processes comprising the distribution must be committed to generate actions that promote social and environmental responsibility in both its collaborators and consumers, which are sustainable transportation, CO2-free natural gas, reverse distribution and analysis of products being commercialized (Salas, 2018; Castellano and Urdaneta, 2015; Cardona et al., 2017).

• The Green Promotion or green communication dimension is defined as the actions focused on conveying environmental values by studying the profile of customers. It comprises the following actions: eco-labels and green advertising that contribute to the image of the organization (Bastante et al.,2011; Escobar, 2012; Castellano and Urdaneta, 2015).

It is essential to highlight that the IMCs are directly related to business sustainability, contributing to the efficient use of the company’s resources, providing eco-efficiency that will impact the economic value of the organization, aligned to the ecological value (Khandelwal and Yadav, 2014). Thus, different business sectors consider aligning their business strategies to the various schemes that seek to preserve the environment. One of the sectors that have a great environmental impact is cosmetology. These companies have decided to follow a sustainable business model where their processes do not harm the planet under any modality of negative impact on the resources of the Ecosystem (Gestión, 2019; Conexión ESAN, 2019).

Organizations believe that green marketing practices improve their business performance. The concept of green marketing is a corporate objective related to business profitability and the achievement of improved business performance through environmentally sustainable practices (Shaukat and Ming, 2022).

Purchase Decision

The purchase decision process is defined as a set of stages the consumer goes through, after which the consumer will decide whether to enter into a commercial transaction with the offering company (Schiffman and Kanuk, 2005). The purchase decision is conceptualized as the response to the company’s stimuli, framed in the marketing mix of product, price, place, and promotion (Kotler and Armstrong, 2013). Likewise, these authors divide the purchase decision process into 5 stages: recognition of the need, search for information, evaluation of alternatives, purchase, and post-sale evaluation, which will be used as a reference for sizing the purchase decision variable.

• The need recognition dimension is defined as the first stage, where the consumer perceives a need that will be triggered by internal or external stimuli (Kotler 2013).

• Information search dimension, in which consumers will seek information about the product and/or service tailored to their interest, thus making a decision or looking for alternatives (Kotler 2013).

• The evaluation of alternatives dimension, in which consumers focus on evaluating the possibilities available to them to make the purchase based on their beliefs and experiences about the characteristics of the product or service (Kotler 2013).

• The purchase dimension, in which the most appropriate purchase option is chosen. This stage is crucial since the customer chooses the product or service (Kotler 2013).

• The post-sale evaluation dimension, in which, after the purchase, consumers will evaluate whether or not to repeat this process depending on their experience (Kotler, 2013).

The purchase decisions of consumers in potential markets are affected by different factors and evaluations, among them, we can find environmental awareness as an element of analysis when exercising a consumption behavior (Mahmoud et al., 2022). People who are aware of the preservation of environmental resources tend to incline their consumption toward eco-friendly products (Choi and Kim, 2019; Sejokoane et al., 2017).

Methodology

This research is quantitative because it was possible to present the results through data collection, the use of numerical measurement, and statistical analysis as a fundamental tool. It has a non-experimental design, so the variables are not manipulated, and the phenomena are observed in their natural context. Likewise, information about an existing reality in the study sample is collected. The scope is descriptive since it seeks to describe the association between the two study variables and establish a relationship (Hernández, Fernández, and Bautista, 2010). In addition, the population of this study is considered infinite since it is made up of more than 100,000 men and women. To determine the sample, a stratified probability sampling has been established, applying the infinite population formula to obtain 384 men and women, aged between 25 and 35 years, residing in the districts of Independencia, Puente Piedra, and Los Olivos, with a confidence level of 95%. A validated instrument is used; the Cronbach’s Alpha reliability test was applied using a pilot test to determine the instrument’s reliability. Likewise, a score of 0.66 was achieved for the “Green Marketing” variable and 0.71 for the “Purchase Decision” variable. Therefore, the instrument is considered to have a high level of reliability. Likewise, the instrument used was validated by expert judgment.

Table 1. Structure of Operationalization of Variables

Result and Discussion

The results presented from the structure of operationalization of the variables and the presentation of the objectives allow answering the study hypothesis, concluding that there is a positive relationship between the two variables: Green Marketing and the Purchase Decision Process. This result was achieved with Spearman’s Rho correlation statistical test (Rho=0.371, Sig. (Bilateral) =0.000; (p ≤0.000) (See Fig. 01).

Figure 1:  Construct of Variables and Result of Correlations

Regarding the analysis of the correlation between each dimension of GM and the dependent variable PDP:

(D.1) For the first specific objective, a correlation of 0.216 (low positive correlation) was obtained, with a p-value =0.000<0.05, being a significant correlation at the 0.01 level between the green product dimension and the purchase decision variable.

(D.2) For the second specific objective, which sought to determine the relationship between the green price dimension and the purchase decision variable, a correlation of 0.044 (very low positive correlation) was obtained, with a p-value =0.385>0.05, being a non-significant correlation.

(D.3) As for the third specific objective that analyzed the relationship between the green place dimension and the purchase decision variable, a correlation of 0.302 (low positive correlation) was obtained, with a p-value =0.000<0.05, being a significant correlation at the 0.01 level.

(D.4) As for the last specific objective, which sought to determine the relationship between the green promotion dimension and the purchase decision variable, a correlation of 0.186 was obtained, with a p-value =0.000<0.05, being a significant correlation at the 0.01 level.

Regarding the above, the positive impact of using green marketing strategies on the purchase decision of millennial consumers of sustainable cosmetic products is validated. In other words, a valuable tool for commercial areas that want to increase sales of their products is validated through the impact on the PDP, a tool that could be implemented in 4 dimensions of GM: Product, Price, Place, and Promotion.

In this sense, the results revealed are in line with Duarte (2022), who states that in the cosmetology industry, incorporating green marketing practices is considered an investment, as it is expected to have a positive impact on the organizational financial sector by increasing sales, generating benefits for the organization. Papadas et al. (2017) indicate that green marketing practices in the organization should contemplate an integral vision in such a way that it will impact the organization’s profitability by boosting business processes. Hernández-García et al. (2020) conclude that companies that develop green marketing obtain a clear competitive advantage by differentiating themselves from other companies operating in their sector, which improves business results. In this vein, it can be highlighted that the performance of organizations is impacted by different factors, such as the ability to create value for customers and adaptability to markets. Green marketing directly impacts these variables, addressing a vision that proposes the sole dissociation of the interest of organizations in profits and the generation of interest in environmental improvement and the benefit of society (Martinéz, 2019; Shaukat and Ming, 2022).

Astuti et al. (2021) analyze the dimensions of GM regarding PDP and conclude that green products significantly influence consumers’ purchase decision.  Mahmoud et al. (2022) state that consumers’ concern for the environment about green product packaging has a positive and significant impact on consumers’ purchase decisions, showing consumers’ involvement in environmental preservation practices. Monge (2022) concludes that there is a positive correlation between the use of sustainable products and the growth of organizations, and Mendoza (2019) proposes that millennials are the age group that considers the category of an eco-friendly product when deciding to buy, pointing out that new consumers prefer environmentally conscious companies to others. Therefore, it is recommended that organizations implement or maintain the quality of products and ensure that the processes and components involved in the development minimize the impact on the wear of ecosystem resources. 

Regarding price, Astuti et al. (2021) demonstrate its influence on PDP. Consequently, Hao et al. (2019) argue that GM increases the valuation of the organizational image, impacting supply capitalization, as environmentally conscious consumers are willing to pay more for green products. Hsu et al. (2017) validated a positive and significant relationship between green skin care products and purchase intention, including price sensitivity in the analysis. Given the above, companies should align the price with the quality of the product. The price of green products can be high in contrast to conventional products due to the characteristics and demand of the product and processes to be eco-friendly.

As for the dimension of GM promotion, Astuti et al. (2021) validated its impact on PDP. Linares (2019) agrees with the existence of a positive correlation. Consequently, it is recommended that companies incorporate green promotion strategies by communicating the benefits of consuming this product, such as a production that is less harmful to the environment and society.

Villaverde (2018) determines a positive correlation, indicating that the place generates more interest in customers regarding the accessibility to acquiring sustainable products. In contrast to the results of this research, Astuti et al. (2021) found that the green place presented an insignificant relationship in the PDP. It is important to note that the contrasting research was conducted in different economic sectors.

Conclusions

The findings of this research show a positive relationship between GM and PDP, which was validated with Spearman’s Rho correlation statistical test (Rho=0.371, Sig. (Bilateral) =0.000; (p ≤0.000). Regarding the dimensions of GM and its relationship with PDP, it was found: product (Rho = 0.216; p = .0000.05), place (Rho = 0.302; p = .000< .05) and promotion (Rho = 0.186; p = .000< .05). These conclusions are relevant for the commercial management of companies in the cosmetology sector.

In this sense, this research provides valuable information on the impact of the green marketing mix on the purchase decision. It is shown that there is a positive relationship between the variables studied since it is evident that, by using appropriate strategies, the purchase decision can be boosted, impacting the company’s sales.

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