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GREEN MARKETING OF KFC IN RELATION TO CUSTOMER LOYALTY OF

HUMMS STUDENTS IN OUR LADY OF FATIMA UNIVERSITY


PAMPANGA CAMPUS

Ma. Kinnie Ching1,2,3, Joemary Galang1,2,3, Maicah Laurea1,2,3, Icelyn Puno1,2,3,


Kyla Sumera1,2,3 and Ms. Miljoy Manalo2,3,4

1
Senior High School – Accountancy, Business and Management Strand

2
Research Development and Innovation Center

3
Our Lady of Fatima University

4
Research Adviser

October 2019
GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY ii

Endorsement

This quantitative research paper entitled: Green Marketing of KFC in Relation


to Customer Loyalty of HUMSS Students of Our Lady of Fatima University Pampanga
Campus; prepared by Ma. Kinnie Ching, Joemary Galang, Maicah Laurea, Kyla Sumera,
and Icelyn Puno of BE-ABM 12Y1R-MGT-2, in partial fulfillment of the requirements
for the strand of Accountancy, Business and Management, has been examined and now
would be recommended for Oral Examination.

This is to certify that Ma. Kinnie Ching, Joemary Galang, Maicah Laurea, Kyla
Sumera, and Icelyn Puno are ready for the Oral Examination.

Miljoy R. Manalo
Adviser

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY iii

This is to certify that the research entitled: Green Marketing of KFC in Relation
to Customer Loyalty of HUMSS Students of Our Lady of Fatima University Pampanga
Campus; prepared by Ma. Kinnie Ching, Joemary Galang, Maicah Laurea, Kyla Sumera,
and Icelyn Puno of section ABM 12Y1R- MGT-2, is recommended for Oral Examination
and has been examined by the panel of examiners with a grade of __________.

______________________________
Chairman

_________________________ ________________________
Member Member

Dr. Rommel Joseph G. Lazatin


Program Head, College of Business and Accountancy
Chairman

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY iv

Certificate of Originality

We hereby declare that this thesis is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another
person nor material to which a substantial extent has been accepted for an award of any
other degree or diploma of a university or other institute of higher learning, except where
due acknowledgement is made in the text.

We also declare that the intellectual content of this thesis is the product of our
work, even though we may have received assistance from others in style, presentation
and language expression.

Ma. Kinnie Ching


Principal Investigator

Members:
Joemary Galang
Maicah Laurea
Kyla Sumera
Icelyn Puno

Ms. Miljoy R. Manalo


Research Adviser

Date Signed:
______________

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY v

Table of Contents
Endorsement ………………………………………………………………….……….… ii
Certificate of Originality ……………………………………………………………....... iv
Table of Contents …………………………………………………………………........... v
List of Tables …………………………………………………………………...…….... vii
List of Figures ………………………………………………………………………..... viii
List of Appendices ……………………………………………………………………… ix
Acknowledgement ……………………………………………………………………..... x
Abstract ………………………………………………………………………………..... xi

CHAPTER I: The Problem and Its Background


The Problem and Its Background ………….……………………………..…………....... 1
Statement of the Problem ………………………………………………………………... 4
Hypothesis ……………………………………………………………………………….. 5
Significance of the Study …………..………………………………………………...….. 5
Scope and Delimitation ………………………….…………………………..…………... 5
Definition of Terms …………………………….…………………………..…...……….. 6
Acronyms………………………………………………………………………………… 6

CHAPTER II: Review of Related Literature


Theoretical Framework ………………………………………………………………...... 7
Foreign Literature …………………..………………………………………………….. 10
Local Literature ……………………..……………..………………………….………... 12
Foreign Studies ……………………………………..………...…………...….………... 13
Local Studies …………………………………..……………………………...………... 14

CHAPTER III: Methodology


Research Design …………………….………………………………..……….……….. 16
Research Instrument …………………...…...….……………………………...……….. 16
Population and Sampling ………….………………………………………….………... 17
Ethical Considerations …………….………………………………………….………... 17

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY vi

Data Collection…………………………………………………….…………….. ……. 17


Data Analysis ……………………………..……………………………………….…… 18

CHAPTER IV: Results and Discussion


Results and Discussion ………….……………………...……………………………… 21
Frequency of Purchase ……...……………………...…………………...……………… 22
Mean Rating of Indicators in Green Marketing ..………………………………………. 22
Summary of Mean Rating in Green Marketing …..……………………………………. 26
Mean Rating of Customer Loyalty ….…….……...…………………………...……….. 27
Relationship between Green Marketing to Customer Loyalty ……………………….... 28

CHAPTER V: Conclusion and Recommendation


Conclusion ………………………………………………………………..…...…..…... 29
Recommendation …………………………………………………….…....…………… 30
References …………………………………….…………………….………………...... 31

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY vii

List of Tables
Table 1: Mean Rating Scale …...………………………………………………............. 19
Table 2: Degrees of Correlation …...……………………………………….………….. 20
Table 3: Mean Rating of Frequency of Visit / Purchase .……………………................ 22
Table 4: Mean Rating of Green Awareness …..……………………………………….. 23
Table 5: Mean Rating of Green Product ….…………………………………………… 24
Table 6: Mean Rating of Green Price …..……………………………………...………. 25
Table 7: Mean Rating of Green Promotion …...……………………………………….. 26
Table 8: Summary Mean Rating of Green Marketing ……...………………………….. 26
Table 9: Mean Rating of Customer Loyalty …………………...………………………. 27
Table 10: Degree of Correlation ………………………………..……………………… 28
Table 11: Relationship between Green Marketing to Customer Loyalty …...……...…. 28

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List of Figures
Figure 1: Net Promoter Score (NPS) …………………………………..……………….. 9
Figure 2: Theoretical Framework …….……………………………………...……...… 10
Figure 3: Data Collection Process ……...……………………………………..………. 18
Figure 4: Age of the Respondents (Pie Chart) ………………………………..……….. 21
Figure 5: Gender of the Respondents (Pie Chart) ..…………………………..………... 22

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List of Appendices
Appendix A: Informed Consent Form ………………………….…………................... 37
Appendix B: Assent Form ………………………………………..………………….... 38
Appendix C: Survey Questionnaire ……………………………………………............ 41
Appendix D: Statistical Results …...…………………………………………………... 45
Appendix E: Pictures ………………………………………………………………….. 46

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY x

Acknowledgment

We would like to thank those who helped us in doing this study. First of all, we
would like to thank all the members of Group 6 for participating and for sharing
knowledge to make this study.

Second, we are grateful to our friends who helped us make this study. We would
like to thank you for giving us some advices in making this study

Third, we want to acknowledge our research instructor Ms. Miljoy R. Manalo for
guiding and teaching us to make this study successful.

We sincerely thank our parents in supporting and helping us in making this study.
For the moral, financial and physical support that you gave to us.

And most of all, we are thankful to our God who guided us. We thank Him for the
knowledge and wisdom He gave to us in making this study. He really deserves praises in
giving us physical, emotional and mental strength to make this study successful.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY xi

Abstract

This study focuses on the Green Marketing of KFC in Relation to Customer


Loyalty of HUMSS student on Our Lady of Fatima University Pampanga Campus. The
researchers’ aim in this paper is to find out how KFC or fast food chains / QSRs use the
concept of Green Marketing, examine its significant impact in their current undertakings
and how it would get the loyalty of customers in order for them to continue purchasing
products from their businesses. This study is a quantitative approach especially that uses
a Quota Sampling and Convenience Sampling. The researchers conducted surveys for the
fifty respondents of HUMSS students at Our Lady of Fatima University Pampanga
Campus. The answered questionnaires would go through individual tabulation to come up
with a statistical presentation and will be assessed using percentage formula. The
researchers considered the following factors: green awareness, green product, green
price, green promotion and customer loyalty in the place of KFC. In this study, the finish
collection of data from the respondents may become a basis in finding what the
relationship between Green Marketing and Customer Loyalty in KFC would be.

Keywords: Green Marketing, Customer Loyalty, Green Awareness, Green Product,


Green Price, Green Promotion

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CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Nowadays, the customer preferences are becoming more ecologically conscious


as they purchase goods and services that are eco-friendly as they understand more
regarding the seriousness of environmental problems (Han & Kim, 2010). To meet the
increasing demand of “green” products and services, business owners throughout all the
industries invest in enormous efforts into improving and promoting eco-friendly goods.
The importance of the eco-friendly phenomenon has urged the restaurant industry to
adjust their services as well in order to meet the shifting expectations of the customers.
Owners of these restaurants are already adopting Green Practices (GP) to their strategies
and trainings and becoming a member of green associations, such as Green Restaurant
Association (GRA) and National Restaurant Association (NRA). Most of the restaurant
owners in USA adopted Green Practices for their businesses with the intention of creating
a distinctive image that will give them an upper-hand from their competitors (Hilario,
2014). Thus, restaurateurs are determined to get this competitive advantage by
introducing green practices into their businesses. Taking care of the environment is seen
by the companies as a responsibility not levied by outside forces but dictated by morality
as the best practice of giving back to society, people and communities. Companies now
have begun to adopt the idea of Green Marketing as their strategies in doing their
endeavor and as value addition that might offer them competitive advantage in the
business world.

Green Marketing refers to the general marketing concept that focuses on


improving such business to become an eco-friendly entity. It turns businesses’ operations,
marketing, consumption and disposal of products happen in a manner that is less
destructive to the environment (Satpal, 2013). According to Domingo (2018), marketing
enacts a very essential role in an organization’s success; hence, it is a must for every
organization to contemplate on strategizing their different marketing practices. Thus,
utilizing green marketing as another marketing strategy is timely and relevant in
promoting businesses today. Restaurants in the Philippines would simply start embracing
the transformation and steer forward to achieve a greener image. Restaurant owners do

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 2

not only exert effort in managing business finances, they provide mouth-watery foods
and making more delighted customers as well. Today, they are also focused on
performing their social responsibilities through the implementation of Green Marketing.
In line with the notion above, adopting an eco-friendly approach is one of the most
popular issues addressed in many businesses particularly in the food and beverage
industry. Driven by governmental regulations, changing customer demand, sponsorship
by international organizations, rising water, energy and waste disposal charges, need to
control guests’ desire for use of energy, strong support in high eco-friendly value, and the
need to seek accreditation, the industries’ top players have taken the necessary steps to
accept the implementation of Green Practices.

According to Nastu (2009), KFC had switched from cardboard to recyclable and
biodegradable paper wrappings for some of the firm’s products. The new idea would be
applied to the KFC’s Fillet and Zinger Burgers, which would be improved on and be
repackaged in paper wrappers, and the thing would happen with the Variety Meals. Onto
that year’s month, Fillet Burgers would also be repackaged from aluminum foils to paper
wrappers. KFC then also stopped offering eat-in meals served in cardboard boxes on that
year. Furthermore, KFC has vowed to change its menu and will remove 20% of calories
"per serving" by 2025. The company, which is popularly known for Zinger Burgers,
plans to serve customers healthier sides instead of. They are also planning to offer only
low or zero-calorie carbonated drinks and will implement a trial of vegetarian options
later that year. By 2020, the company plan to have more lunch and dinner options
available less than 600 calories, in line with Public Health England’s recent campaign.
The company wants to encourage customers to aim for 400 calories for breakfast, 600 for
lunch and 600 for dinner, along with a couple of healthy snacks and drinks in-between.

“We know people are more passionate than ever about eating well, and we face a
big challenge in shifting their perceptions of what we offer,” said Victoria Robertson, the
firm's head of food innovation. “We’ve done it before,” “That said, we know any new
menu and recipe changes will have to be just as tasty as today,” “It’s a tricky challenge,
because our fans absolutely love our Original Recipe chicken, and we won’t be changing
the Colonel’s secret recipe of 11 herbs and spices.” Paula McKenzie, the company's

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 3

general manager in UK & Ireland, added: “Everyone in the food and drink industry, from
fast food to traditional restaurants, is being scrutinized for the nutritional content of their
meals.” (Hall, 2018)

Another issue that could be resolved by Green Marketing is all about the people’s
dietary concerns about Fast food. Although nutrition experts would be able to navigate
the menus of fast-food chains, and base on the nutritional information, comprises of
seemingly “healthy meals”, there are still a lot of reasons why most fast-food
consumption at most fast-food restaurants is unhealthy and contributes to weight gain,
obesity, type-2 diabetes and coronary artery diseases. Fast food generally has a high-
energy bulkiness, which together with large portion sizes, induces over-consumption of
calories. Furthermore, the foods that are typically served in fast food restaurants are part
of a “meat-sweet diet” (Halton et al, 2009).

This aim of this research is to find out how KFC or fast food chains / QSRs use
the idea of Green Marketing, examine its substantial effect in their current undertakings
and how it would get the loyalty of customers in order for them to continue purchasing
products from their businesses. Furthermore, this study will analyze the Green Marketing
Strategies used by the restaurants and note the challenges tied in the implementation of
such strategies.

The objective of this research is to inform the people that there is a strategy to
produce food with minimal environmental impact, such as using organic and local
ingredients, also provide raw materials with superior flavor – in part because of
sustainable alternatives to industrial food production involving production of foods on a
smaller scale with greater care. Restaurants that take an ecological approach to
purchasing and providing food-service operations that can provide high quality products,
market their offerings to ecologically concerned consumers, do genuine good for the
planet, to do good for the well-being of individuals and the society and lastly, how this
Green Marketing Strategies / Green Practices would attain the utmost loyalty of the
customers that would lead them – the customers – to continue being a patron to their
businesses.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 4

The contribution of this study is to create awareness about the Green Marketing
Strategies and Green Practices, of how it would be advantageous for people to adopt it
into their own and other people’s daily lives, to share knowledge of how to do business
without causing too much negative impact into our environment as well as to inform
businesses on how this strategy would help them to improve their marketing strategies so
that they would acquire more customers and how they would get the customer’s loyalty
to the products they sell.

Statement of the Problem

It is important for customers to know if their favorite fast food chains are
environmentally friendly or not. The main problem of this study will be: What are the
challenges faced in attaining Customer Loyalty through Green Marketing Strategy. This
research was designed to assess the Green Marketing of KFC in Relation to Customer
Loyalty of HUMMS Students in Our Lady of Fatima University Pampanga Campus.

Specifically, it aims to answer the following questions:

1. How may the profile of the respondents be assessed in terms of;


a. Age
b. Gender
c. Frequency of Visit / Purchase
2. How will the Green Marketing be assessed in terms of;
 Green Awareness
 Green Product
 Green Price
 Green Promotion
3. How will the respondent’s Customer Loyalty be assessed in terms of;
 Net Promoter Score (NPS)
4. Is there a relationship between Green Marketing and Customer Loyalty?

5. Based on the findings, what recommendations or improvements could be


made?

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Hypothesis

Ho: There is no significant relationship between Green Marketing and Customer


Loyalty.

Ha: There is a significant relationship between Green Marketing and Customer


Loyalty.

Significance of the Study

This study finds its significance in the following:

 Consumers. The results would be able to provide consumers knowledge about


environmentally friendly products and what advantages it could bring to the well-
being of the society and environment.
 KFC / Food Industry. The given data would guide the KFC or other Fast Food
Chains in the Food Industry on what to improve on, in regards to their products.
On what practices that could help them to sell more and to attain more customers.
 Future Researchers. This study would help the student researchers to be aware
and knowledgeable about Green Marketing Campaign. It would help them to be a
better analyst and it can be a help as a future reference for more studies in the
future.

Scope and Delimitation

Out of the students from the HUMMS Strand in Our Lady of Fatima University
Pampanga Campus, 50 HUMMS students will be the respondents in conducting survey
questionnaires. This study limits its coverage in Our Lady of Fatima University
Pampanga Campus only. This is to be conducted on the first quarter of academic year
2019-2020. This research’s main purpose is to determine the knowledge of HUMMS
students regarding Green Marketing Campaign.

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Definition of Terms

To further understand the study, the definitions of significant terms used in this
endeavor are hereby stated:

Green Marketing - refers to the process of selling products and/or services based
on their environmental benefits. Such a product or service may be
environmentally friendly in itself or produced in an environmentally friendly way.

Consumers - a person who purchases goods and services for personal use.

Analysts - a person who conducts analysis.

“MEAT-SWEET DIET” - The Western Pattern Diet (WPD) or Standard


American Diet (SAD) is a modern dietary pattern that is generally characterized
by high intakes of red meat, processed meat, pre-packaged foods, butter, fried
foods, high-fat dairy products, eggs, refined grains, potatoes, corn (and High-
fructose corn syrup) and high-sugar drinks (Halton et al, 2009).

Customer Loyalty – is the result of consistent positive emotional experience,


physical attribute-based satisfaction and perceived value of an experience, which
includes the product or services.

Acronyms

GP – Green Practices

GRA – Green Restaurant Association

NRA – National Restaurant Association

QSR - Quick Service Restaurant

OLFU – Our Lady of Fatima University

HUMMS - Humanities and Social Sciences

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 7

CHAPTER II

REVIEW OF RELATED LITERATURE

To further discuss and see the significance of this matter, related literatures and
studies would be a tremendous support to connote the problem of this study.

Theoretical Framework

To further discuss this research, the Theoretical Framework would help in


contextualizing the subject matter of this study.

Green Awareness is a consumer with an environmental awareness that can be


defined as “an ecologist” who are against environmental pollution and has a sense of
responsibility with respect to the upcoming generations and the whole humanity in his /
her use of resources. Concerned consumers with environmental awareness can measure
the presence of environmental resources, their cost of use as well as the impact of this use
to the environment and to themselves (Boztepe, 2012). Aracıoğlu led a survey study with
360 questionnaires in İzmir. According to the study, when pollution and awareness of
ecological care increases, they would affect consumer buying behavior. Also,
contributors were aware of the significance of recycling for taking care of the
environment and the prevention of ecological pollution (Aracıoğlu & Tatlıdil, 2009: 435-
461).

Green Product, environmental pollution increases quickly throughout the


industrialization period leading to a great reaction was born against products risky to the
environment. When the risky contents of a product became one of the factors
manipulating the purchase decisions of consumers, businesses started to manufacture
environmentally friendly or in other words green products and to create green product
rules (Boztepe, 2012). Grail Research conducted a survey on 520 US Green Consumers
on June 2009, aiming respondents amongst the ages of 18- 65 years old, who were aware
of green products and have obtained green products in the past. According to the study,
consumers think of green products as those that diminish the negative effect on the
environment (e.g. energy-efficient, recyclable, natural or organic). Only 30% of

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 8

consumers consider reducing water usage to be a green practice Product labels and word
of mouth are the primary sources of data about green products and companies for
consumers (Grail Research, 2010).

Green Price, a lower price caused by cost saving will inspire consumers to buy
environmentally friendly products. When the demand for a product is price responsive, a
lower price will be a more successful tactic for the company. When the price is held at
the same level, positive properties of the product about the environment can be used as a
competitive advantage element. If ever the price of the product is higher, significance
should be given to the promotion of different green products and also, there should be
consumers willing to pay for the product. In this case, one of the most important things to
consider in Green Marketing is the level of price (Boztepe, 2012). According to Grail
Research (2010), consumers who never bought green products are discouraged from
buying them because they are apparently more expensive than the usual products they are
used to buy.

In Green Promotion, Boztepe (2012) led a study on 3690 people. According to


this study, both green buying variables are related positively with the belief that
advertising is offensive and would be more likely to switch channels during advertising,
signifying that men who tend to buy green are more skeptical of advertising than women
who do not. In contrast, men’s skepticism toward advertising appears to be dissimilar to
their green buying behavior. Green Promotion is a good performance that provides the
chance for consumers to get used to businesses showing ecological obligations. The
presentation policy aims to create an “eco-friendly business firm” image in the eye of the
consumers and give eco-friendly messages to consumers about the product. To achieve
this goal, advertising campaigns, promotion, public relations and other marketing tools
are approved. This requires both internal and external communication.

Net Promoter Score (NPS)

This measurement indicates the probability of a customer referring a business to


their acquaintances. People answer this simple question with a value from 1 – 10.
According to Pascal (2016), “This is a powerful metric. First, it’s simple and also the fact

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 9

that when you recommend a product, you put your own credibility on the line. And you
only do that for the companies you support 100%.”

This measurement divides customers into three (3) categories:

Customers answering with a score of 6 or lower are classified as “Detractors”.


Customers won’t recommend a firm or a business to anyone, will probably not purchase
from that business again, and might even make a slight against the firm through negative
words.

Those with a 7 or 8 are segmented as “Passives”. They are quite satisfied, but not
delighted enough to recommend the business. They won’t insult the business, they won’t
be looking for alternatives, and they would probably stick around as long as they don’t
encounter a supplier with a better value proposition.

Those with a 9 or 10 fall into the “Promoters” segment. They would be the
business’ supporters and they are likely to recommend the business and purchase from
that business again.

The Business’ total Net Promoter Score is calculated by subtracting the


“Detractors” percentage from your “Promoters” percentage.

Figure 1. Net Promoter Score (NPS)

The Promoter – Detractor ratio doesn’t only depend on the business’ service and
product quality. Some customers simply fit the company better than others. Tying your
NPS scores to customer information, like demographics and the industry, can also help
identify the business’ ideal customer type (Pascal, 2016).

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Independent
Variable
Green Marketing Dependent Variable

Green Awareness Customer Loyalty


Green Product Net Promoter Score
Green Price (NPS)
Green Promotion

Figure 2. Theoretical Framework

Figure 2 shows the theoretical framework that has been derived from the
discussions presented in the literature review. The model presents the relationship
between Green Marketing and Customer Loyalty. The Green Marketing element is
treated as the independent variable and Customer Loyalty as the dependent variable. The
Green Marketing’s relationship with Customer Loyalty construct was hypothesized as
shown in Figure 2.

Foreign Literature

From the website of Hotel ICON, plastic straws are now a major source of plastic
pollution, simply because as they are not recyclable and they usually end up being
discarded in the ocean. Hatter (2018) explained that ICON is also exploring options to
substitute the plastic straws with straws that are made from recyclable materials, Hatter
added, "Our service team is also encouraging our guest to bring their own recyclable
containers for take away food and beverages". Single-use plastic food-ware products such
as straws, utensils and containers made from Styrofoam were between the top debris
collected during Hotel ICON's green race beach cleanup over the weekend in Hong
Kong. 11 Hotel ICON associates volunteered in the cleaning Tai Long Wan Bay, Sai
Kung where over 418 kg of garbage left on seashores were collected over two hours.

Sarkar (2012), in his study on green marketing and the impact on customers
purchasing behaviors, showed from his analysis that, environmental awareness, green
creation features, green promotion activities and green price affect green purchasing
performances of the consumers in a positive way.

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According to Rajeshkumar (2012), Green Marketing would be the most popular


trend nowadays which is facilitated for the eco-friendly individuals. Sarkar (2012) argued
that greater ecological clarification can be secured through businesses by using the
characteristics of product attitude for the further growth of environmental goals.

Sarkar (2012) deliberated the catastrophe of green marketing to move beyond the
limitations of the usual paradigm. Karna, Hansen & Juslin (2010) in their conclusions,
concluded that proactive marketers are the most genuine and reliable group in
implementing environmental marketing willingly and looking for competitive advantage
through environmental friendliness.

Gourmelon (2015), in their study, they demonstrated that for more than 50 years;
global production of plastic has sustained to rise. Some 299 million tons of plastics were
produced in 2013, on behalf of a 3.9 percent increase over 2012's output. With a market
driven by consumerism and convenient, along with the moderately low price of plastic
materials, demand for plastic is increasing. Recovery and recycling, however, remain
insufficient, and millions of tons of plastics end up in landfills and oceans each year.
Plastics are human-made materials manufactured from polymers, or long shackles of
repeating molecules.

According to the Study of UK Articles due to the attention of the civilization,


many organizations have underway to accept their environmental responsibility (Chen,
2010). Therefore, many organizations started to promote themselves as green companies,
that is, they started to produce and market goods or services in a way which reduces
impairment to the environment. As cited in Lee (2009), Lee argued that consumers in the
USA and Western Europe had become more concerned about the environment in the
previous decade. This trend has passed to the Asian regions as cited in Lee (2009). Thus,
almost all consumers in the world are becoming more worried about the environment.
Chen & Chai (2010) defined green product / service as the product / service that will not
spoil the environment or denounce natural resources, and can be recycled or conserved.

Kim & Chung (2011) argued that environmentally conscious people were shifting
their buying behaviors for a healthier environment. Likewise, Chen & Chai (2010) were

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 12

of the similar thought. They argued that people were feeling an ethical responsibility to
buy green products.

Local Literature

According to Remo (2017), from families investing in making their homes


“smart” through the installation of solar panels and energy efficient lighting fixtures for
example; to developers whom were creating communities that are sustainable and
environment friendly; to government agencies pushing for policies that would mandate
the “greening” of company operations, manufacturing facilities, and buildings, among
others. The importance of going “environmentally friendly / green” or “sustainable” was
already well embedded in the consciousness of most Filipinos nowadays.

According to the latest Nielsen Global Corporate Sustainability Report (2015),


near to 9 in 10 (86%) of Filipino consumers in the survey said they are willing to pay
more for products and services from companies who stand for positive social and
environmental impact. This was a four-point increase from last year. In comparison, the
international average for those who were willing to pay more for sustainable brands is
66%, which is more than the 55% from 2014. “And good deeds did not go unnoticed,”
Nielsen continued. Sales of consumer goods from sustainable brands have grown more
than 4% internationally in the past year while those without grew less than 1%. “More
exposed to the stress in the environment and its effect to the community, consumers are
trying to be responsible citizens and they expect the same from corporations,” says Stuart
Jamieson, managing director of Nielsen in the Philippines.

Although marketing good deeds is encouraged and expected by consumers, he


stressed that authenticity and reliability are essential. “The emphasis must be placed on
demonstrating good deeds rather than self-serving promotion.” (Saleh, Zulkifli, &
Muhamad, 2010)

Dagooc (2010) stated that Green consumerism supporters recently opened their
fifth ECHOstore in Cebu to introduce a sustainable lifestyle to the Cebuano market at the
same time expanding their reach in helping depressed communities by uplifting
livelihood resources. ECHOstore, owned by three women who are dedicated promoters

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 13

of sustainable lifestyle concept Reena Francisco, Jeannie Javelosa and Chit Juan will start
the change of inspiring the local industries by prioritizing locally produced products that
were eco-friendly and promotes healthier living. ECHO is the acronym for Environment
& Community Hope Organization.

According to Siang (2017), sustainable architecture and urban development have


an important role to play in alleviating the effect of climate change, helping support the
growth of cities and the ambitions of their people. Awareness of sustainability and
climate change is slowly but surely increasing in the Philippines. For example, the
government has plans with obligations toward minimizing carbon discharges in place.
New developments, such as Latitude Corporate Centre in Cebu Business Park, include a
range of eco-friendly features; the structure itself is registered with the Building for
Ecologically Responsive Design Excellence (or Berde), a green building rating system.

The society’s love for everything instant like instant coffee, noodles, juice, is
powered by the people’s preference for convenience. Accessibility and affordability of
products have produced toxic garbage more than the planet could ever handle. Products
that are commercially available are packed in single-use containers that are mostly
plastic. “Visit a supermarket and you’ll see rows after rows of “convenience” products
that cater to the demand to make our lives easier.” (Baquillas, 2018)

Foreign Studies

According to (Chan et al., 2012), a lot of businesses have begun committing


themselves to making their whole operation eco-friendlier. Thus, more firms are
becoming more aware of their responsibilities towards the environment. This has made
the law makers, ecological groups, consumers, financial institutions and the
organizations’ own employees to become more conscious of ecological aspects and this
in turn has led to an increase in the number of policies and regulations at both in the
national and international levels.

A lot of organizations nowadays want to turn “green”, as an increasing number of


consumers associate themselves with eco-friendly products. Additionally, one could also
witness confusion among the consumers about the products. In particular, one often finds

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 14

doubt about the reliability of these green products. Therefore, to ensure consumer
confidence, companies of green products must be more transparent, and refrain from
breaking any law or standards regarding products or business practices (Welling,
Anupamaa & Chavan, 2011).

Environmental marketing, or more famously known as Green Marketing, can be


defined as the effort of an organization to design, promote, price and distribute products
and services in a way which promotes eco-friendly care (Polonsky, 2011).

Green marketing has been called by a lot of things, for example, ecological
marketing, environmental marketing, green marketing or sustainable marketing
(Chamorro et al, 2009). Chamorro et al (2009) distinguished the term for a more business
perspective: “The analysis of how marketing activities impact the environment and how
the environment piece can be incorporated into the various decisions of corporate
marketing.”

Local Studies

According to Rauter et al (2017), Sustainable Development refers to the


development of a country that meets the necessity of the present without endangering the
ability of the future generations to meet their own needs [UNEP, 2010]. In this explicit
sense of having a courtesy for the needs of future generations, sustainable development
is, in part, is alike to an ecologically-sustainable development. The concept of sustainable
development however, has two other aspects, namely; the idea of economic advancement,
and that of socially wide-ranging growth and poverty eradication.

This leads to the idea of “green growth”, which is an ecologically sustainable


economic improvement that nurtures low-carbon, socially inclusive development [OECD,
2014; GGBP, 2014]. Green growth is the contradictory of the prevailing “grow first,
clean up later” type of economic growth [UNESCAP-ADB-UNEP, 2012]. The concept of
sustainable consumption and production (SCP), with its various approaches, is a major
element of green growth and a significant means to achieving it [UNEP, 2012a, 2012b].

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 15

Virola (2019) stated that conserving environment has increasingly becoming a


dilemma in the corporate world and there were a lot more companies that were getting
attentive. Protecting the environment is seen by the companies as a responsibility not
imposed by outside forces but dictated by conscience as the best practice of giving back
to society, people and communities. Companies now have begun to adopt the idea of
Green Marketing as their strategies in doing their endeavor and as an addition that might
offer them competitive advantage in business industry.

According to Hilario (2014), implementing the checklist of the Green Restaurant


Association and National Restaurant Association through a personal interview with fast-
food restaurant managers along Far Eastern University – Manila, some eloquent
perceptions was obtained. All of them were concerned regarding about the protection of
the environment, though, most are not entirely aware and educated about the present
situation in the uses of green practices in their respective establishments. Aside from
inadequate knowledge in implementing practices, another vital factor to consider was the
demand and purchase of green products. Most of them anticipated it as an additional cost
and regular customers would not demand or pressure them to be an eco-friendly
company.

The implementation of an eco-friendly organization approach helps to minimize


solid wastes, water & energy consumption, and air pollution. The purchase of eco-
friendly products such as sustainable food, non-toxic cleaning and chemical products, and
bio-mass agricultural waste products not only helps the restaurant to build a good
business image, it also increases green practices vertically in the supply chain (Ismail et
al., 2010).

Developing countries like the Philippines are experiencing rapid expansion in


Metro Manila especially near schools and universities in regards to the fast-food
restaurants. Presently, there are a lot of newly opened fast-food restaurants across Metro
Manila and even in the provinces. On another note, population inflates and changes in the
lifestyle, such as preferences for leisure, convenience, and food-away-from-home,
women’s changing role in the society, the urbanization of families – all contribute to the
increase of fast-food restaurants (Hilario, 2014).

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 16

CHAPTER III

METHODOLOGY

In this part of the conducted research study, the research design, research
instrument, population and sampling, ethical considerations, data collection and data
analysis will be discussed.

Research Design

The study adopted a quantitative and descriptive correlational research design to


determine the relationship and identify if there is a significant effect between Green
Marketing and Customer Loyalty when being assessed by their indicators. According to
Bhat (2019), Quantitative research is defined as the methodical investigation of
phenomena by gathering quantifiable data and performing statistical, mathematical or
computational techniques. Quantitative research obtains information from existing and
potential customers using sampling methods and sending out online surveys, online polls,
questionnaires, etc., the results of which can be portrayed in the form of figures.
Descriptive research is used to describe characteristics of a population. One of the types
of descriptive research is analysis which is used when a researcher wants to illustrate
what lies beneath the surface by analyzing the components which make up the whole
(Agcaoili Jr. & Marantan, 2013). On the other hand, correlational research is a
quantitative method of research in which the researcher has two or more quantitative
variables from the same group of subjects and is trying to find out the if there is
relationship between these variables with no influence from any extraneous variables
(McCombes, 2019).

Research Instrument

The researchers will use survey questionnaires that were adopted from several
studies that were connected to his research and will be distributed to the students from the
HUMMS strand of Our Lady of Fatima University. Consultation with experts such as
research advisers and professionals will be done to ensure the reliability and validity of
the questionnaire that will be used. The questionnaire will be divided into two parts: the

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 17

demographic profile of the respondents and the rating for Green Marketing and Customer
Loyalty.

Population and Sampling

The researchers will collect needed data from 50 respondents from the HUMMS
students of Our Lady of Fatima University to conduct a valid answer. The type of
sampling that was used was Quota and Convenience Sampling. According to Glen
(2015), Quota Sampling means to take a much concise sample that is proportion to some
characteristics or trait of a population and Convenience Sampling is one of the main types
of non-probability sampling methods and is made up of people who are easy to reach
(Thornhill, 2015). Lastly, the demographic profile used in the study was (Age, Gender
and Frequency of Visit / Purchase).

Ethical Considerations

To ensure the privacy and protect the dignity of the subjects with all the
information provided in conducting this research, a letter of approval was given before
the research would be conducted. The questionnaire would also consist of an informed
consent that will be given to the respondents before they participate to ensure that they
are aware of the purpose of the study. The respondents would also be informed regarding
the confidentiality of the data that will be collected from them. The respondents who
have the ages from 13 – 17, will also receive an assent form about whether they would be
willing to participate in this study and would be informed about the expected risks and
the possible activities expected of them as subjects.

Data Collection

This part of the research will discuss the procedures that the proponent is under
in taking or collecting data from the participants.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 18

Step 4: Retrieved the answered questionnaire.

Step 2: Explained the purpose of the study

Step 3: Distribute the questionnaire to the respondent

Step 1: Asks permission to be part of the research.

Step 5: Check the answered questionnaire to verify some answers and avoid
blank spaces.

Step 6: Thank the respondent for sharing his / her time for participating in
the study.

Figure 3. Data Collection Process

Data Analysis

The data collected by the researcher from the questionnaires will be carefully
analyzed to convert into useful and quantifiable information. According to Joshi et al
(2015), Mean rating or Likert scale could be considered as one of the most essential and
frequently used psychometric tool in educational and social sciences research. This will
be used to describe the two variables specifically the Green Marketing and Customer
Loyalty. Responses to all the items for each construct were indicated on 4-point Likert
scale (1 = strongly disagree to 4 = strongly agree). To determine the level of perception

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 19

of respondents who gave a rating of 1 – 4 to the given variables the weighted mean will
use. The said data will be interpreted in accordance of the purpose of the study. To
measure the perception on supervisor-subordinate relationship, the following mean rating
scale will be used:

Table 1
Mean Rating Scale

Weighted Mean Point Scale Descriptive Rating

3.25 – 4.00 4 Strongly Agree

2.50 – 3.24 3 Agree

1.75 – 2.49 2 Disagree

1.00 – 1.74 1 Strongly Disagree

To measure the relationship of Green Marketing with the Customer Loyalty,


Pearson-Product Moment Correlation (PPMC) or Pearson’s Rho (r) will be used. “The
term r is a measure of the linear correlation of two variables. It is a number that ranges
from -1 to 0 to +1, representing the strength of relationship between the variables”.
Pearson's correlation coefficient (r) is a measure of the strength of the
association between the two variables (UWE Bristol). Green Marketing will be first
correlated to Customer Loyalty.

The table below depicts different degrees of correlation.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 20

Table 2
Degrees of Correlation

An r value of Description

+1 Perfect positive relationship

.70 or higher Very strong positive relationship

.40 to .69 Strong positive relationship

.30 to .39 Moderate positive relationship

.20 to .29 Weak positive relationship

.01 to .19 No or negligible positive relationship

0 No Relationship

-.01 to -.19 No or negligible negative relationship

-.20 to -.29 Weak negative relationship

-.30 to -.39 Moderate negative relationship

-.40 to.69 Strong negative relationship

-.70 or higher Very strong negative relationship

-1 Perfect negative relationship

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 21

CHAPTER IV

RESULTS AND DISCUSSION

This section of the study shows the results of the different statistical methods such
as Mean Rating Scale and Pearson-Product Moment Correlation of Pearson’s R that has
been used in the study. Some pie charts and tables will also be included in this chapter for
demographic of the respondents.

In the Figure 4 below shows the pie chart for the age of the respondents. The
students from the HUMSS strand who are enrolled in OLFU at the age of 19 years old
got 6% which was the lowest from all the given ages. The second lowest are of those
students at the age of 20 years old (14%), meanwhile, third lowest was the 16 years old
students at the 22%. Lastly, the second highest got 24% (18 years old) and the highest got
34% (17 years old).

AGE
16 Y/O
14%
22% 17 Y/O
6%
18 Y/O

24% 19 Y/O
34%
20 Y/O

Figure 4. Age of the Respondents

In the Figure 5 below, it shows the pie chart for the gender of the respondents.
The HUMSS students, who were a part of the survey, got the highest rate in which 64%
of the students were the male respondents while the remaining students were female with
36%.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 22

GENDER

36% FEMALE

64%
MALE

Figure 5. Gender of the Respondents

I. Frequency of Purchase

In Table 3 below shows that the Frequency of Visit / Purchase got a result of
2.76 rated by the respondents as Seldom. That means that not all of the respondents
frequently have gone to KFC to purchase from them and because of that, the result of the
Mean Rating of Frequency of Visit / Purchase is “Seldom”.

Table 3
Mean Rating of Frequency of Visit / Purchase

Description Mean Rating Descriptive Rating

How often do you visit / purchase at KFC? 2.76 Seldom

II. Mean Rating of Indicators in Green Marketing

2.1 Green Awareness

In Table 4 below, the highest mean rating in Green Awareness is GA4, in which
the question was, “Teaching and conducting seminars for different people is a good way
for everyone to help our environment.” It obtained an average of 3.44 which was rated as
“Strongly Agree” by the respondents. Meanwhile, GA2 and GA3 gained an average of
3.38 (Strongly Agree) and 3.36 (Strongly Agree) respectively. Lastly, GA1 got the lowest
average of 3.24 (Agree) in which the question was, “Green Awareness is as important
when comparing to the other factors like Green Product, Price and Promotion in KFC.”

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 23

The total mean rating for Green Awareness is 3.36 which were descriptively rated as
“Strongly Agree”.

Table 4
Mean Rating of Green Awareness

Description Mean Rating Descriptive Rating


GA1. Green Awareness is as important when
comparing to the other factors like Green 3.24 Agree
Product, Price and Promotion in KFC.
GA2. The wastes in trash cans are well
3.38 Strongly Agree
segregated.
GA3. KFC is mindful of the surrounding
3.36 Strongly Agree
environment near them.
GA4. Teaching and conducting seminars for
different people is a good way for everyone to 3.44 Strongly Agree
help our environment.

Average 3.36 Strongly Agree

2.2 Green Product

In Table 5 below, the highest mean rating in Green Product is GProd1, in which
the question was, “Purchasing Green Products can have a positive effect on our
environment.” It obtained an average of 3.50 which was rated as “Strongly Agree” by the
respondents. Meanwhile, GProd2 and GProd4 gained an average of 3.32 (Strongly
Agree) and 3.30 (Strongly Agree) respectively. Lastly, GProd3 got the lowest average of
3.28 (Strongly Agree) in which the question was, “KFC has changed the way they
package their products comparing to what they have done in the past.” The total mean
rating for Green Product is 3.35 which was descriptively rated as “Strongly Agree”.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 24

Table 5
Mean Rating of Green Product
Description Mean Rating Descriptive Rating
GProd1. Purchasing Green Products can have
3.50 Strongly Agree
a positive effect on our environment.
GProd2. The products from KFC have meet or
exceed the requirements of environmental 3.32 Strongly Agree
regulations.
GProd3. KFC has changed the way they
package their products comparing to what they 3.28 Strongly Agree
have done in the past.
GProd4. The products from KFC are easy to
3.30 Strongly Agree
recycle, disassemble, decompose, and reuse.

Average 3.35 Strongly Agree

2.3 Green Price

In Table 6 below, the highest mean rating in Green Price is GPri2, in which the
question was, “The materials used for production can affect the price of the product.” It
obtained an average of 3.60 which was rated as “Strongly Agree” by the respondents.
Meanwhile, GPri3 and GPri1 gained an average of 3.56 (Strongly Agree) and 3.44
(Strongly Agree) respectively. Lastly, GPri4 got the lowest average of 3.38 (Strongly
Agree) in which the question was, “The prices of the products from KFC are appropriate
to be purchased by different kind of people.” The total mean rating for Green Price is
3.50 which was descriptively rated as “Strongly Agree”.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 25

Table 6
Mean Rating of Green Price
Description Mean Rating Descriptive Rating
GPri1. The products from KFC are affordable
even though eco-friendly products are usually 3.44 Strongly Agree
more expensive.
GPri2. The materials used for production can
3.60 Strongly Agree
affect the price of the product.
GPri3. The price can affect the way people
3.56 Strongly Agree
purchase the products through its affordability.
GPri4. The prices of the products from KFC
are appropriate to be purchased by different 3.38 Strongly Agree
kind of people.

Average 3.50 Strongly Agree

2.4 Green Promotion

In Table 7 below, the highest mean rating in Green Promotion is GProm4, in


which the question was, “KFC has done a lot of promos or other sales promotion to sell
products.” It obtained an average of 3.38 which was rated as “Strongly Agree” by the
respondents. Meanwhile, GProm2 and GProm3 gained an average of 3.36 (Strongly
Agree) and 3.32 (Strongly Agree) respectively. Lastly, GProm1 got the lowest average of
3.24 (Agree) in which the question was, “Promotion can help in selling the products from
KFC.” The total mean rating for Green Promotion is 3.33 which was descriptively rated
as “Strongly Agree”.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 26

Table 7
Mean Rating of Green Promotion
Description Mean Rating Descriptive Rating
GProm1. Promotion can help in selling the
3.24 Agree
products from KFC.
GProm2. KFC has done a lot of sales
3.36 Strongly Agree
promotion frequently.
GProm3. Sales promotion can strengthen the
3.32 Strongly Agree
image of the products that are on sale.
GProm4. KFC has done a lot of promos or
3.38 Strongly Agree
other sales promotion to sell products.

Average 3.33 Strongly Agree

III. Summary of Mean Rating in Green Marketing

In the Table 8 below, it shows that Green Price got the highest overall mean rating
of 3.50 which is descriptively rated as “Strongly Agree”. On the other hand, the lowest
overall mean rating among all of the indicators got 3.33 and that would be Green
Promotion. The overall average of all variables under Green Marketing is 3.33 or
descriptively rated as “Strongly Agree.”

Table 8
Summary Mean Rating for Green Marketing
Variables Mean Rating Descriptive Rating
Green Awareness 3.36 Strongly Agree
Green Product 3.35 Strongly Agree
Green Price 3.50 Strongly Agree
Green Promotion 3.33 Strongly Agree
Average 3.38 Strongly Agree

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 27

IV. Mean Rating of Customer Loyalty

In Table 9, the highest mean rating is CL10 with an average of 3.66 (Strongly
Agree), in which the question was, “Overall, the Green Marketing Practices place a very
important role for people to be loyal to KFC.” The second highest attained 3.50, in which
both CL8 and CL5 got. The next highest would be CL1 which attained 3.42. The last
ones got 3.38 (CL3), 3.36 (CL6 & CL7), 3.34 (CL9), 3.30 (CL4), all of which got a
descriptive rating of “Strongly Agree.” Lastly, CL2 attained the lowest mean rating of all
the questions, in which it was, “I believe that the products from KFC are reliable and will
be helpful to the environment.” The overall mean rating of Customer Loyalty is 3.41,
which the descriptive rating would be “Strongly Agree.”

Table 9
Mean Rating of Customer Loyalty
Description Mean Rating Descriptive Rating
CL1. KFC has done a great job of appeasing
the needs of the people through its Green 3.42 Strongly Agree
Marketing Strategy.
CL2. I believe that the products from KFC
are reliable and will be helpful to the 3.24 Agree
environment.
CL3. I am willing to recommend my family 3.38 Strongly Agree
and friends to eat in KFC.
CL4. I can accept the higher price of the
green products, even though the price of 3.30 Strongly Agree
other general products (not green products),
are cheaper than that of green products.
CL5. I am satisfied with my decision to 3.50 Strongly Agree
purchase the green products from KFC.
CL6. I feel that I contribute to the
environmental protection and sustainable 3.36 Strongly Agee
development.
CL7. I believe that I do the right thing in 3.36 Strongly Agree
purchasing these green products.
CL8. I believe that these products are
superior to the products from the other Fast 3.50 Strongly Agree
Food Chains.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 28

CL9. I will continue to be a patron / 3.34 Strongly Agree


customer with KFC.
CL10. Overall, the Green Marketing
Practices place a very important role for 3.66 Strongly Agree
people to be loyal to KFC.
Average 3.41 Strongly Agree

V. Relationship between Green Marketing to Customer Loyalty

It is shown in Table 10 and 11 that the Degree of Relationship with Green


Marketing and Customer Loyalty at a significance level of -0.896893178, giving the
variables a very strong negative relationship. Therefore, the study will accept the Null
Hypothesis (Ho), as the result of the research shows a very strong negative relationship
between Green Marketing and Customer Loyalty. As it is was revealed in the statistical
results, the study got an Inverse Relationship. Inverse Relationship would happen if the
correlational coefficient has a negative value, and because of that, the two variables – in
this case, Green Marketing and Customer Loyalty – will move in opposite directions
(ABS, 2013). This would mean that while Green Marketing decreases, the Customer
Loyalty will increase. Since that happened, it insinuates that Green Marketing was
ineffective in gaining Customer Loyalty.

Table 10
Degree of Correlation
GREEN MARKETING CUSTOMER LOYALTY
GREEN MARKETING 1
CUSTOMER LOYALTY -0.896893178 1

Table 11
Relationship between Green Marketing to Customer Loyalty
Dimension Pearson’s R Decision Interpretation
Very Strong Negative
Green Marketing -0.896893178 Reject Ho
Relationship

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 29

CHAPTER V

CONCLUSION AND RECOMMENDATION

This part of the paper shows the conclusion of the researchers after analyzing
all the results of the statistical methods used in this study. Recommendations have also
been made based on the conclusion made. These recommendations could benefit
businesses and students or industry that has been a part or related in the study. These
recommendations could also help and give ideas to researchers in the near future.

Conclusion

Ho: There is no significant relationship between Green Marketing and


Customer Loyalty. – REJECT

Ha: There is a significant relationship between Green Marketing and Customer


Loyalty. – ACCEPT

The study revealed the results about the relationship between Green Marketing
and Customer Loyalty. We have accepted Ha and rejected Ho as it revealed that while
there is a relationship between the two variables, it was a very strongly negative
relationship. The results from the data analysis shows that there was an inverse
relationship between the two variables and it indicates that Green Marketing was not that
effective in obtaining Customer Loyalty.

According to Agarwal & Agarwal (2014), as they conducted their research,


they have found out that there was a high intensity of unawareness among the young
adults around 17-25 years old regarding their perception of Green Marketing, of how it
would be a benefit and how it would affect the environment. Because of this, the Green
Marketing Strategies would be ineffective. Until these people will be unaware of the
concepts and benefits of Green Marketing, he / she will not be persuaded by such
methods. Since that was the outcome of their research, the purchase behavior of around
half of the people surveyed does not get affected by the ecological marketing campaign
of the firms / companies.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 30

Recommendation

As it was revealed in the conclusion, the Green Marketing of KFC was not
effective in obtaining Customer Loyalty. It would mean that while Green Marketing
could be effective but at most, it would not work on most of the consumers in KFC in
gaining Customer Loyalty. Because of that, the researchers have found out other
marketing strategies to implement, for example, Relationship Marketing.

Through Relationship Marketing, rewarding and giving promotional offers


would increase Customer Loyalty. On that note, service providers should give more
attention towards on delivering diverse service packages to the customers of different
social classes. Consumers of now and then, prefers high quality services with fair prices
in the competitive market in order to satisfy their expectations (Lian & Yoong, 2017).

On another note, companies should be focused on getting information


regarding customers whom the firm could get 20% to 80% shares that would represent
the best opportunity for growth. That would signify that those customers are already in
favor for the company’s brand and products. Furthermore, firms must know the needs of
customers and how to satisfy them, managers and restaurants or any other companies,
should study customer’s standards and must understand how consumers’ perception
regarding a restaurant’s products and services, so a study that discloses consumer
perception of all brands is essential (Ahmad, Qureshi & Warraich, 2013).

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 31

REFERENCES

ABS. (2013). “Statistical Language – Correlation and Causation.” Retrieved from


https://www.abs.gov.au/websitedbs/a3121120.nsf/home/statistical+language+-
+correlation+and+causation
Agarwal N. and Agarwal K. (2014) “Green Marketing to Young Adult Students: Is It
Effective or Not?” (A Research on the College Students of India in the Age
Group of 17-25) IOSR Journal of Business and Management (IOSR-JBM) e-
ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 11.Ver. IV (Nov.
2014), PP 60-66 Retrieved from www.iosrjournals.org
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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 37
Appendix A
Informed Consent Form

Dear Respondents,

Thank you for agreeing to complete this survey. This information will be used to know
what the Green Marketing of KFC in Relation to Customer Loyalty of HUMMS Students
in Our Lady of Fatima University Pampanga Campus and your participation is an
important part of this process. Please be advised that participation in this survey is strictly
voluntary on your part and will have no effect on your course grade.

Your individual responses in this survey are confidential and will not be connected with
you as an individual in any reporting of this data.

If you have any questions about this survey, or to learn more about the study in general,
you may contact Ma. Kinnie V. Ching 09452981216

Please sign and date below indicating your agreement to participate in this (survey
questionnaire).

Thank you.

Name (signature): _____________________ Date: __________________

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 38
Appendix B
ASSENT FORM (13-17-Year-Old)
(For Practical Research 2)
Our Lady of Fatima University Pampanga Campus

ASSENT TO PARTICIPATE IN A RESEARCH STUDY


Title of the Study: Green Marketing of KFC in relation to Customer Loyalty of
HUMMS Students in Our Lady of Fatima University Pampanga Campus

I am a Senior High School Student at Our Lady of Fatima University Pampanga Campus.
I am doing a research study. I am working with my teacher, Ms. Miljoy R. Manalo, on a
research study. I'd like to tell you about this study and ask if you will take part in it.

What is a research study?


A research study is when people like me collect a lot of information about a certain thing
to find out more about it. Before you decide if you want to be in this study, it’s important
for you to understand why we’re doing the research and what’s involved.

Please read this form carefully. You can discuss it with your parents or anyone else. If
you have questions about this research, just ask me.

Why are we doing this study?


We are doing this study to find out the relation of Green Marketing of KFC to Customer
Loyalty. This study is not part of your school work, and you won't get grades on it.

Why are we talking to you about this study?


We're asking about 50 adolescents if they would like to participate. We’re inviting you
to take part because you are this age and you go to a school where we’re doing the study.

What will happen if you are in this study?


If you agree to be in the study and your parents give permission, we will ask you to:

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 39
• Answer a questionnaire

You will be asked to complete a survey questionnaire that we will provide for
you. This part will take about a minute.

Study location: Study will be conducted at Our Lady of Fatima University Pampanga
Campus

If you don’t want to be in the study, what can you do instead?


This study will be held only during your free time so that there will be no intervention on
your part.

Are there any benefits to being in the study?


There is no benefit to you personally for taking part in this study. But we hope that the
results of the research will other reader in the future.

Are there any risks or discomforts to being in the study?


• You might get bored or tired and decide that you don’t want to finish the study activities
or the interview. If so, just tell us that you want to stop.
• A possible risk for any research is that people outside the study might get hold of
confidential study information. We will do everything we can to make sure that doesn't
happen.

Who will know about your study participation?


Besides you and your parents the researchers are the only ones who will know the details
of your study participation. If we publish reports or give talks about this research, we
will only discuss group results. We will not use your name or any other personal
information that would identify you.

Will you get paid for being in the study?


You will not be paid for being in this study.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 40

Do you have to be in the study?


No, you don’t. Research is something you do only if you want to. No one will get mad at
you if you don’t want to be in the study. And whether you decide to participate or not,
either way will have no effect on your grades at school.

Do you have any questions?


You can contact us if you have questions about the study, or if you decide you don’t want
to be in the study any more. You can talk to me, or your parents, or someone else at any
time during the study. My phone number is 09452981216.

If you have any questions or concerns about your rights and treatment as a research
subject, you can contact us 09452981216.

ASSENT OF ADOLESCENT (13 – 17 years old)

If you decide to participate, and your parents agree, we'll give you a copy of this form to
keep for future reference.

If you would like to be in this research study, please sign your name on the line
below.

________________________________________ _______________
Child's Name/Signature (printed or written by child) * Date

________________________________________ _______________
Signature of Investigator/Person Obtaining Assent Date

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 41
Appendix C
SURVEY QUETIONNAIRE

Name (optional): _________________________ Age: _____ Gender: ______

Direction: Check the number that corresponds to your answer (1-Strongly Disagree, 2-
Disagree, 3-Agree, 4-Strongly Agree). Please answer the following questions honestly.
This will be used as a basis for our study entitled “Green Marketing of KFC in Relation
to Customer Loyalty of HUMMS Students in Our Lady of Fatima University Pampanga
Campus".

Always Sometimes Seldom Never


Frequency of Visit / Purchase
(4) (3) (2) (1)

How often do you visit / purchase at KFC?

Strongly Strongly
Agree Disagree
Green Awareness Agree Disagree
(3) (2)
(4) (1)

1. Green Awareness is as important when


comparing to the other factors like Green
Product, Price and Promotion in KFC.
2. The wastes in trash cans are well
segregated.

3. KFC is mindful of the surrounding


environment near them.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 42

4. Teaching and conducting seminars for


different people is a good way for everyone
to help our environment.

Strongly Strongly
Agree Disagree
Green Product Agree Disagree
(3) (2)
(4) (1)
1. Purchasing Green Products can have a
positive effect on our environment.
2. The products from KFC have meet or
exceed the requirements of environmental
regulations.
3. KFC has changed the way they package
their products comparing to what they have
done in the past.
4. The products from KFC are easy to
recycle, disassemble, decompose, and reuse.
Strongly Strongly
Agree Disagree
Green Price Agree Disagree
(3) (2)
(4) (1)

1. The products from KFC are affordable


even though eco-friendly products are
usually more expensive.

2. The materials used for production can


affect the price of the product.

3. The price can affect the way people


purchase the products through its
affordability.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 43
4. The prices of the products from KFC are
appropriate to be purchased by different kind
of people.
Strongly Strongly
Agree Disagree
Green Promotion Agree Disagree
(3) (2)
(4) (1)
1. Promotion can help in selling the products
from KFC.
2. KFC has done a lot of sales promotion
frequently.
3. Sales promotion can strengthen the image
of the products that are on sale.
4. KFC has done a lot of promos or other
sales promotion to sell products.

Strongly Strongly
Agree Disagree
In relation with Customer Loyalty: Agree Disagree
(3) (2)
(4) (1)
1. KFC has done a great job of appeasing the
needs of the people through its Green
Marketing Strategy.
2. I believe that the products from KFC are
reliable and will be helpful to the
environment.
3. I am willing to recommend my family and
friends to eat in KFC.
4. I can accept the higher price of the green
products, even though the price of other
general products (not green products), are
cheaper than that of green products.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 44
5. I am satisfied with my decision to
purchase the green products from KFC.
6. I feel that I contribute to the
environmental protection and sustainable
development.
7. I believe that I do the right thing in
purchasing these green products.
8. I believe that these products are superior
to the products from the other Fast Food
Chains.
9. I will continue to be a patron / customer
with KFC.
10. Overall, the Green Marketing Practices
place a very important role for people to be
loyal to KFC.

Approved and validated by:

______________________

Ms. Miljoy Manalo


Research 2 Advisor / Teacher

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 45
Appendix D

Statistical Results

Tallying the Overall Mean Rating


GREEN MARKETING CUSTOMER LOYALTY
GREEN AWARENESS 3.36 3.36
GREEN PRODUCT 3.35 3.40
GREEN PRICE 3.50 3.30
GREEN PROMOTION 3.33 3.45

Relationship between Green Marketing and Customer Loyal


GREEN MARKETING CUSTOMER LOYALTY
GREEN MARKETING 1
CUSTOMER LOYALTY -0.896893178 1

Decision
DECISION: Reject Null Hypothesis (Ho)

Conclusion
CONCLUSION: There is a relationship between Green Marketing and Customer
Loyalty although; it was not a positive one. As it was gathered in the results, it was a
very strongly negative relationship.

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GREEN MARKETING IN RELATION TO CUSTOMER LOYALTY 46
Appendix E

Photos from Conducting Survey Questions

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL – ABM STRAND

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