THE IMPACT OF GREEN REVERSE LOGISTICS ON CONSUMER’S SATISFACTION: CASE OF MANUFACTURING SECTOR OF PAKISTAN

Abstract

Purpose The purpose of this paper is to extend the existing researches on Green Reverse Logistics with a focus on examining its relationship with Consumer’s satisfaction. We investigate whether green reverse logistics practices increase satisfaction among consumers. We also investigated the impact of recycling and re-usability practices on Consumer s loyalty and Emotional Connection, which are the measures of Consumer’s Satisfaction. The overall model was tested to investigate the existing knowledge of consumers about the Green products and level of satisfaction with such products in order to propose a way forward for the companies to exploit such practices for sustainable environment and get more competitive advantage. Methodology & Design By using positivistic paradigm and quantitative data analytics, we find answers to the research questions. SPSS 16.0 and Smart PLS 3.3 were utilized to get the solution for complicated constructs. Survey methods and structural equation modeling were used to collect and analyse data from 389 consumers of products from manufacturing sector of Pakistan. Findings The results suggest that, Green Reverse logistics found significant impact customer satisfaction, consumer’s loyalty, and emotional connection. Its recycling has no impact on all three dependent variables. However, the sub-measure Re usability has positive impact on all three dependent variables, which suggest that consumer s perception about the re-usable products is more respectable then recycling. They relate it to the refurbished cars sold in Pakistan and imported from Japan whose quality is much likely as new and liked by the consumers due to its extra features at reasonable price. Although, they are slightly used but they are more comfortable then Pakistan assembled cars and more reliable in safety features. The results indicate that “Green Reverse logistics” may affect the consumer satisfaction and becomes a means toward grasping competitive advantage. As discussed in this research, seeking sustainability and move forward towards “Green” movement are getting popularity among practitioners and researchers. Becoming Green and adopting Green Reverse Logistics” may specify the companies using environment friendly practices, which may satisfy consumers for sustainable development concern. Our findings recommend that this satisfaction, lead to the increased levels of loyalty and emotional connection. consumer’s Limitations We have used a general sampling procedure. Industry specific respondents might give the different results instead of samples from university students. This may have constraint that directly affects satisfaction with Green Reverse Logistics. These constraints are limitations ofthe study as well as opportunities for future research. We have used limited variables / measures for our framework. Additional variables may increase the scope ofresearch. Some ofthe variables may be (1) Quality of products (2) Price (3) Availability ofthe product (4) Product declaration by the company Green Product. Future scholars may explore above cited variables when designing studies regarding green products and their impact on satisfaction. as a Conduct of pie-research campaign to aware public about the green environment and global issues. In this way, the researchers may get the data, which is more reliable, and survey forms be filled with interest. This campaign may be in the form of social media advertising and through print and electronic media. Visit of industries to gather information about the existing practices related to green initiatives. This may provide the clear picture for researcher to demonstrate public for the initiatives of companies. By this way, consumers may respond clearly, as the true picture ofthe GRL products is available as compared to the new products. Recommendations Companies of Pakistan can use Green reverse logistics and get win-win situation by saving money on raw materials, present a “Green” image, and still compete with brand-new products. Further, consumer’s loyalty and emotional connection may be obtained by adopting Re-using practices and build a bond between consumers using concept of being “Green” and realizing competitive advantage. Moreover, by utilizing Re-usable practices and awareness ofrecycling to consumers using government alliance, green movement can further exploited.