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Green marketing development strategy in post Covid-19 period in Vietnam

Authors:
  • Family University

Abstract

Green Marketing has never been more important and powerful as world trade has moved towards being environmentally friendly in the past few decades. Environmental pollution has significantly affected the economic development of Vietnam in the period of international integration, especially the post-Covid-19 period. Revolution in communications and transport, and further economic liberalization is growing rapidly in emerging markets in line with increasing green marketing's capabilities with a wide range of communication channels, giving new customers more access to the benefits that green marketing offers for a better quality of life. The research will demonstrate how "the post-Covid-10 green marketing development strategy in Vietnam will affect and interact in international business.
International Journal of Multidisciplinary Research and Growth Evaluation www.allmultidisciplinaryjournal.com
101
International Journal of Multidisciplinary Research and Growth Evaluation
ISSN: 2582-7138
Received: 23-10-2020; Accepted: 27-11-2020
www.allmultidisciplinaryjournal.com
Volume 1; Issue 5; November-December 2020; Page No. 101-106
Green marketing development strategy in post Covid-19 period in Vietnam
Nguyen Hoang Tien1, Nguyen Minh Ngoc2, Dinh Ba Hung Anh3, Nguyen Diu Huong4, Nguyen Thi Thanh Huong5,
To Ngoc Minh Phuong6
1 Ho Chi Minh City University of Food Industry, Vietnam
2 Ho Chi Minh City University of Finance and Marketing, Vietnam
3 Ho Chi Minh City University of Technology, Vietnam
4-6 Ho Chi Minh City University of Transport, Vietnam
Corresponding Author: Nguyen Hoang Tien
Abstract
Green Marketing has never been more important and
powerful as world trade has moved towards being
environmentally friendly in the past few decades.
Environmental pollution has significantly affected the
economic development of Vietnam in the period of
international integration, especially the post-Covid-19
period. Revolution in communications and transport, and
further economic liberalization is growing rapidly in
emerging markets in line with increasing green marketing's
capabilities with a wide range of communication channels,
giving new customers more access to the benefits that green
marketing offers for a better quality of life. The research will
demonstrate how "the post-Covid-10 green marketing
development strategy in Vietnam will affect and interact in
international business.
Keywords: Development strategy, status quo, green marketing, COVID-19, Vietnam
1. Introduction
According to Cambridge dictionary, Green Marketing refers to the marketing activities of products that are considered good,
environmentally friendly, expressed in the strategies of changing product design, packaging process, advertising activities to
respond to meet the green needs of the user.
After struggling with an economy heavily damaged by the environment, the COVID-19 pandemic is happening on a global scale.
Originated in December 2019 with the first recorded epidemic in the central Chinese city of Wuhan, stemming from a group of
people with unexplained pneumonia. Local health officials confirmed that they have had prior contact, mainly with traders who
trade and work at the Hainan seafood wholesale market, which is believed to be the first outbreak of the disease. A series of
green movements emerged and became a global trend. The birth of many green concepts such as green products, green industries
to green factories. To promote green consumption in the era of green development, to repel the Covid epidemic 19.
The Green Marketing trend has emerged and become a direct competitor to traditional marketing because this strategy is aimed
at the benefits of the environment, the benefits of a clean, disease-free country, which is also a concern of top of the countries
globally. Moreover, in addition to the practical benefits from the post-Covid 19 environment, businesses now aim to develop
sustainably to create a competitive advantage over competitors and in line with many policies promoting Vietnam's post-
epidemic environment-friendly economy. Both have the effect of awakening the conscience and protecting the environment after
the pandemic outbreak.
2. Theoretical framework
2.1 Green marketing
Almost many people think that Green Marketing just stops at communication activities or advertising about products with a few
features related to the environment. A few terms like recycling, reuse, eco-friendly, ozone-friendly are a few things that most
consumers associate when it comes to Green Marketing. In fact, Green Marketing does not stop there, it can be applied to
consumer goods, industrial goods or services.
Therefore, Green Marketing involves a lot of business activities such as product design, changing production lines, packaging
as well as communication, this is not a simple task.
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The concept of Green Marketing activity was first proposed
by Hennion and Kinnear (1976, according to) [1] when
previous works have recommended the importance of
providing solutions to be able to overcome these problems.
negative impact on the environment of marketing activities.
Polonsky (1994) argues that Green Marketing is a
combination of a range of activities including product
modification, manufacturing process modification,
packaging modification, as well as advertising alteration to
create and promote any exchange to satisfy the needs and
wants of consumers on the basis of minimizing negative
impacts on the environment.
Peattie (1995, according to) [2] argues that Green Marketing
is a comprehensive governance process, responsible for
defining tasks such as predicting, responding to the needs of
consumers and society in a sustainable manner. According to
this understanding, we confirm that there really exists a
relationship between ethics and Green Marketing.
Environmental factors are seen as part of the ethical questions
that marketers need to analyze and answer. Therefore, Green
Marketing should be evaluated as part of social responsibility
[3].
Ottoman (1993, according to) [1] found that the definitions of
Green Marketing during this period were quite limited when
they only focused on emphasizing the influence of enterprises
on the environment but not towards persuading them. change
that negative behavior. Ottman believes that Green
Marketing needs to focus on developing products that satisfy
all consumer needs, including quality, affordability, usability
and compatibility, i.e. minimizing negative impact on the
natural environment.
Recognizing these limitations, Peattie [4] described Green
Marketing as marketing activities aimed at reducing the
negative environmental and social impacts of existing
products and production systems. and at the same time
encourage products and services to have less influence.
More specifically, Kotler (2011, according to) [5] sees Green
Marketing as the commitment of a business by providing safe
and environmentally friendly products and services by using
bags. The packaging is recyclable and biodegradable, adopts
better pollution prevention methods and uses more energy
efficiently.
In short, Green Marketing is not a completely separate form
of marketing but still has some overlap with other forms of
marketing. This has led to a misunderstanding of the nature
of Green Marketing [6]. The difference of Green Marketing
lies in its content and attached to the human values behind
when businesses choose to use this marketing direction [7].
2.2 Green marketing development strategies
Today's environmental crisis is the most appropriate time to
reassess the 4Ps (Product, Price, Promotion, and Place) of
traditional marketing policies. Green marketers need to
receive information regarding these new issues and reassess
the marketing mix in a greener direction [7].
Green product strategy
Green products, also known as eco-friendly products or
environmentally conscious products [8], are understood to be
products designed to minimize the impact on the
environmental factor in the whole. its life cycle [9]. Such
reduction is shown in many aspects such as reducing the use
of non-renewable resources or toxic materials and increasing
the use of renewable resources (Robert, 1995, according to
[9]). Ottman (1998, according to [10]) asserts that green
products are more durable and less toxic because they are
derived from recyclable materials. A green product strategy
often includes activities such as recycling, reuse; or reduce
fabrication materials, reduce packaging materials, increase
product durability in use and distribution process (Kinoti,
2011, according to) [10].
That said, the concern about green products has ceased to be
the same as the previous theories, as consumers are not just
looking for traditional tangible products. Businesses
overestimate the green attributes of traditional products,
leading to consumer refusal or even a negative reaction [11].
As a result, some companies are creating products that offer
environmental value but combine these with functional
appeal and emotional element [6]. Finally, in order to perfect
the green product policy, Peattie [7] pointed out that
businesses should increase their after-sales support, as green
customers tend to see these after-sales services as a criterion
to beat price of the product's durability.
Green price strategy
Green prices are defined as the prices set for green products
that offset the price sensitivity of consumers, making them
willing to pay more for the green attributes of the product
(Grove et al, 1996, according to) [1]. This excess fee is
absolutely necessary when Peattie and Crane [2] find that
green product production requires higher costs than the
traditional use of raw materials and production methods, as
well as the burden of environmental taxes on the rise.
Green promotion strategy
Davari and Strutton [10] argue that promotion is considered as
the most important tool of the mixed Green Marketing policy.
Green promotion tools are often used to convey messages to
encourage customers to become “greener”. A green
promotion policy should meet one or more of the following
three criteria: (1) the policy directly or implicitly addresses
and / or enhances the relationship between products and the
biological environment. physical; (2) endorsing a green
lifestyle with or without a prominent product / service; (3)
represent, enhance, or maintain the corporate image
associated with environmental responsibility (Banerjee,
Gulas, & Iyer, 1995, according to) [10].
Green distribution strategy
Green distribution refers to management tactics related to the
distribution of green goods, from production to consumption
and the logistics of recovery [10]. In fact, there are very few
users trying to find a greener product [12]; Therefore, how and
where green products are available is the key to a business's
survival. Consumers must continuously be exposed to green
products throughout the market area.
Besides, with its distinctive characteristics, selling green
products is not the same as selling traditional products. For
this reason, Green Marketing staff will manage products from
production to point of sale and finally to customers, in order
to maximize distribution efficiency [13].
3. Methodology
The group researches documents with related content, studies
different documents and theories by analyzing on the basis of
the theory learned in the subject content. After grouping and
analyzing the references, the system will be systemized and
synthesized into an exercise focusing on the main content of
the essay. Specific research process includes the following
steps
Step 1: Select research topic
Step 2: Determine the research method
Step 3: Develop outlines and study plans
Step 4: Collect and synthesize data analysis
Step 5: Write the complete essay.
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4. Research Results and Discussion
4.1 Current status of implementing green marketing
strategy in Vietnam
Like many other countries, Vietnam is currently facing
serious environmental pollution, which is a warning bell for
businesses to change their sense of production and
environmental responsibility.
A fairly typical representative of success in promotional
activities but struggling in its own products, it is impossible
not to mention Toyota. They have built Green action
programs and campaigns since the early 1990s and achieved
certain successes. Coming to Vietnam, Toyota has built a
large-scale program called Go Green with two clubs in Hanoi
and Ho Chi Minh City, Toyota has built and launched many
other activities such as the series “Hanh green program ”airs
every Tuesday and Thursday night on VTV1 (each short
episode gives viewers a message about the environment such
as AH1N1 flu, dirty grease, pollution of rivers and lakes, bus
exhaust, smoking…), a friendly school project, a small-scale
biogas power generation project, a “Record picture of the
environment” festival, “Green Idea 2009” contest ... Toyota
has made remarkable success with building the image of a
green business in the eyes of consumers through many
supportive activities as well as directly participating in
environmental protection. But with the ambition to bring
Hybrid cars - vehicles using two different engine
technologies, including a gasoline engine and an electric
engine, into Vietnam to create a new trend of eco-friendly
cars. Better emissions and lower emissions compared to
traditional gasoline cars are still struggling because of high
cost and maintenance costs; smaller capacity than a gasoline
car due to the compact hybrid engine and light weight to
maximize fuel efficiency; Not safe because in the case of an
accident, hybrid batteries have a high voltage, making people
in the car have a higher rate of electric shock, in addition,
these cars are also very quiet when running on electricity, so
no pedestrians should always hear their engines; Hybrid cars
typically have less assistance in suspension and bodywork,
and use lighter components, compared to conventional
gasoline cars. Many people will feel the car is not "compact"
and a bit difficult to control.
Ajinomoto Vietnam is an example of "comprehensive
greening" that shows in many processes of bringing products
to consumers, but still encounters their own motto on
environmental protection. In the first period, Ajinomoto built
an environmental management system EMS (Environment
Management System), an environmental management
organization according to ISO 14001: 2004 and became one
of the leading companies in Vietnam to receive the
certificate. Bureau Veritas Certfcaton's ISO on Environment
(Bureau Veritas Certfcaton) in 2001. Ajinomoto is also
probably the only company in the food industry to spend
more than $ 5 million to install a wastewater treatment system
according to Japanese standards. Since 2004, Ajinomoto
Vietnam has strengthened environmental management
towards unifying CSR community responsibility (including 3
series of programs, namely Global Ajinomoto Citizen Day,
Ajinomoto and community working together to clean the
environment, Ajinomotoc and the poor welcome Tet) with a
number of activities such as the campaign "Make the Earth
smile, the scholarship fund" Ajinomoto - Bring me to school
"... Ajinomoto's thoughts have successfully created the image
of a green business in the eyes of consumers. The incident
occurred in September 2007, when rumors of Ajinomoto
pouring red liquid directly onto the fields in Dong Nai spread
rapidly in the media, but Ajinomoto was unable to present
documents. intelligence. It happened a long time ago and now
the product is officially used by the farmers, but it is clear that
this is still considered a longtime lesson of Ajinomoto. It can
be seen that the product is good for the environment and the
consumer, but the way you treat it, the way you bring it to the
consumer, will greatly affect the customer's perception and
will affect the success of the product.
Around the world, Green Marketing has become an active
activity and has become an important research field for many
companies and many large companies have been successful
in applying Green Marketng to their product lines. "green"
products, friendly with the environment. But in Vietnam this
is a relatively new form. Although there have been a series of
incentive activities to promote green products in our country,
most Vietnamese businesses are still hesitant in
implementing Green Marketing. Psychological obstacles,
consumer awareness of people (such as the fact that
consumers prefer affordable products with moderate quality),
issues of green protection, pricing and product promotion
have put a great deal of pressure on businesses and poses
great challenges to Vietnam's economy and environment.
4.2 Vietnam situation in the post-Covid-19 period
The COVID-19 pandemic is an infectious epidemic with the
agent of the virus SARS-CoV-2, happening globally.
Originated in December 2019 with the first recorded
epidemic in the central Chinese city of Wuhan, stemming
from a group of people with unexplained pneumonia. Local
health officials confirmed that they have had prior contact,
mainly with traders who trade and work at the Hainan
seafood wholesale market, which is believed to be the first
outbreak of the disease. The whole world is influenced by
Covid-19, including Vietnam with the sectors that will suffer
the most decline due to epidemics such as agriculture,
exports, especially aviation and tourism.
Post-Covid-19 can be understood as the period when the
country no longer had cases of infection in the community,
the epidemic was controlled, the people's lives and the
economy gradually recovered. In Vietnam, according to the
6 o'clock bulletin on June 26 of the National Steering
Committee for the prevention and control of the epidemic,
COVID-19, up to now, there have been 71 days of no
infection in the community. Specifically, both restore the
economy in parallel with the prevention of this global
pandemic.
4.3 Green Marketing development strategy for the post-
COVID-19 period in Vietnam
In order to develop the Green Marketing strategy, especially
in the post-COVID-19 period, Vietnam needs to reassess the
4Ps (Product, Price, Promotion, and Place) of the traditional
marketing policy to come up with appropriate development
and effective.
Green product strategy
Products are the core of meeting the needs of customers. If
the product is not good, every attempt by other marketing
methods will hardly succeed. Product elements in the Green
Marketing strategy are shown through:
Design, an environmentally friendly product in the post-
COVID-19 era, when the "price escalation" period, all
resources and materials are limited to comply with the 3R
(Reduction - Reuse - Recycling) principle. (i) Reduction, the
product should be designed in such a way that the production
can minimize the input materials or be made from materials
that minimize the impact on the environment. (ii) Reuse, the
product can be used multiple times. (iii) Recycling, a product
must be recyclable, that is, the product is capable of being
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reused to make a new product or has the ability to convert it
into a material used to create another product.
Production, products must be made from clean materials with
high productivity, available and easy-to-find materials that do
not harm consumers' health as well as adversely affect the
environment. Besides, enterprises can also eliminate
ineffective production stages, consume a lot of energy, and
have negative impacts on the environment; At the same time,
businesses can also recycle waste from the production
process into input materials.
Eco-labeling, this is a sign that helps consumers to recognize
environmentally friendly products. Ecolabel can be created
by the Enterprise itself and placed on its products as a
commitment to environmental protection. However, usually
most businesses assign eco-labeling to their products to
independent third parties to ensure honesty and objectivity,
and increase the value of customers' trust. This third party
may be a non-governmental organization, a government
agency, an industry association or another independent
company.
Packaging, this stage requires the use of packaging that is
easy to decompose, can be reused many times or recycled. In
addition, businesses can choose packaging made of non-
toxic, safe, and limited environmental pollution. Packaging
with a compact size, suitable for the product helps businesses
save significantly on packaging costs and storage and
transportation costs.
Green price strategy
When applying the Green Marketing strategy, businesses
need to apply the principle of product pricing based on
customer perceptions of product value, not based on product
cost. That means that pricing must come from what the
customer feels about the product and their willingness to pay
for a product that provides a benefit of use, health benefits
and protective effects. Environment that is not on the basis of
calculating production costs and desired returns.
Accordingly, businesses can price their products through two
ways. The first is to set a higher price for green products than
for conventional products. At this time, it is required that the
company's products need to have superior characteristics, the
features that are completely superior to the rest of the product
to make customers willing to spend money to buy green
products. of Enterprise. Generic green product descriptors
would not work well with this high pricing approach. The
second way is that businesses still value green products with
other conventional products. In this case, customers will be
willing to spend on eco-friendly products instead of sticking
to the one they used to use.
Green promotion strategy
By means of trade promotion, businesses need to create
awareness and initial perceptions of customers about green
products and services. To ensure the consistency and increase
the effectiveness of communication, all conveyed messages
need to adhere to the brand positioning, helping customers
distinguish the green product of the business from other
normal products. The message of green product to customers
should be clear so that customers can understand the product's
health and environmental protection features, the benefits of
green products outperforming other products; avoid hype or
exaggeration.
Green distribution strategy
A good distribution policy will have a significant impact on
the buying decision of consumers, because they will not be
able to buy a green product if it does not appear in a
convenient distribution channel or the volume is scarce due
to business. karma does not provide timely.
Green products are often suitable for modern distribution
channels such as supermarkets, major shopping centers,
reputable stores ... Enterprises can use their distribution
channels or cooperate with other partners are committed to
protecting the environment. In addition, businesses need to
differentiate themselves in the distribution process of their
green products compared to conventional products. For
example, building a chain of stores that only distribute green
products, committed to using environmentally friendly
materials to create display items, the process of shipping
green products. save fuel and create less emissions ... perform
well the logistics model.
4.4 Opportunities and challenges for Vietnamese
businesses implementing post-COVID-19 green
marketing in Vietnam
Opportunities for Vietnamese businesses implementing
post-COVID-19 green marketing in Vietnam
Firstly, in general, Vietnam is in the process of
industrialization and modernization of the country, the
economy has achieved a relatively high growth rate, leading
to an improved consumption level of the people. Moreover,
the process of economic restructuring and transformation of
growth models from breadth to depth, based on factors of
productivity and technology that are being prioritized by the
Party and the Government are favorable opportunities. for
Vietnamese businesses to implement green marketing
strategies. On the other hand, the State has tightened the
regulations on environmental protection, the legal system
becomes complete, making businesses under pressure to
"green" and also enjoy many incentives when applying
policies. This book.
Secondly, after COVID-19 has helped increase consumption
awareness, the requirements for green products, products that
meet safety and quality standards and are environmentally
friendly is an essential requirement of the people. This is a
potential market for Green Marketing to help businesses
exploit.
Third, to gain support from consumers. Green marketing is a
potential field (with the support of consumers). Today, more
and more individual and institutional customers are paying
more attention to green marketing and awareness of
protecting the natural environment. Especially in the post-
COVID-19 period, consumers paid more attention to
environmental issues. Thanks to this awareness raising,
environmental-friendly products and green marketing
businesses will receive more attention, creating a driving
force for development.
Fourth, enterprises' self-awareness about green marketing is
increasing. In the post-COVID-19 era, the issue of
environmental protection, clean food was widely promoted in
domestic media, mentioned in school teaching, commented
on at all conferences. From central to local level, building a
beautiful image in the eyes of consumers, attracting domestic
and international investment capital, at the same time this is
a way for businesses to develop sustainably and achieve their
goal of increasing long term growth.
Fifth, green marketing strategy is currently a global trend, it
is an opportunity for green products to dominate the market
of consumers. In the increasingly fierce competition between
businesses and countries in international trade, green
products, eco-friendly and eco-friendly products will attract
many potential customers. Many countries around the world
have been tending to implement the program using green
products, the commitment to implementing this program has
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gradually become a trend of developed and developing
countries. The fact also shows that there are many products
and many major export markets of Vietnam have
requirements for environmental standards for exported
products. The "eco-label" criterion is also applied by the EU
to textile products.
Sixth, green marketing activities in businesses receive a lot
of support from the authorities.
Opportunities and challenges for Vietnamese businesses
implementing post-COVID-19 green marketing in
Vietnam
First, the biggest challenge for marketers is how to combine
the need to "protect the environment" with other basic needs
of consumers such as the correlation of cost - efficiency,
safety when using. , performance, symbolic value and
comfort. Vietnamese businesses need to have the right
strategy to both meet the needs of consumers and ensure the
purpose of environmental protection.
Second, the implementation of the Green Marketing strategy
will lead to high investment costs and high product costs.
Green marketing is a combination of a series of activities,
including modifying products, changing production
processes, changing packaging, as well as changing
advertising. To implement all stages of green marketing
requires businesses to spend a large investment right from the
start. Because of the investment in that chain technology,
there is an increase in costs and inevitably, the price of the
finished product also increases. As a rule, their products will
be less competitive in the market. Vietnamese enterprises
with small and medium scale, experience as well as scale and
cutting related costs such as management costs are currently
a headache.
Third, there is no high close coordination between businesses
as well as authorities. To change the sense of community in
general and consumer consciousness in particular, the
essential thing that we need to do is whether we need to know
the close association between businesses, the state as well as
the strength of the other non-profit organizations. In Vietnam,
the legal system on environmental issues is incomplete, and
standards are set according to international standards, not
practical in Vietnam. Moreover, we have not yet combined
the power of non-profit organizations to create a trend that
hits strongly on consumer psychology or, if so, that trend has
not been active continuously and inevitably has not. There are
many results.
Fourth, Vietnamese people love to use cheap products, do not
appreciate the quality of the products (the main reason comes
from the massive appearance of Chinese products in the
market). On the other hand, they are skeptical of
advertisements for "green" products because there are too
many businesses cheating, not transparent ... Therefore, this
is a great difficulty for Vietnamese businesses when
deploying war. green marketing strategy
Fifth, Vietnamese businesses are now mainly small and
medium enterprises with limited capital, while implementing
the green marketing process requires using modern science
and technology, and expensive. In addition, the cost of raw
materials, marketing and advertising products is not small at
all. This is one of the great challenges facing Vietnamese
businesses when developing Green Marketing strategies.
5. Conclusion and recommendation
5.1 Conclusion
Through learning and analyzing Green Marketing strategies,
businesses need to focus on planning the implementation in
the right direction to survive and develop sustainably. The
Vietnamese economy is developing very fast, with the
participation of many economic sectors with increasing
competition. Strictly applying Green Marketing strategy with
a long-term plan will help businesses pursue profitability,
develop sustainably, be socially responsible and embellish
their image. Enterprises in the mind of customers, creating an
advantage over competitors.
The research has summarized a number of studies related to
Green Marketing activities in general to find new points to
research in the group's topic, synthesize the theoretical basis
related to the topic including issues. basic green marketing
and the current situation of Vietnam after COVID-19
Situation analysis has shown the results achieved and the
difficulties that companies face in implementing Green
Marketing. From there, analyze the current situation to make
effective and appropriate development strategies, point out
the achieved results and the difficulties that businesses face
in the process of implementing Green Marketing period. post
COVID-19 in Vietnam.
5.2 Recommendation
The State needs to improve the legal environment as currently
environmental and commercial issues in Vietnam are
incomplete, not updated and asynchronous. There are
international standards of the environment while Vietnamese
businesses cannot do it. Therefore, completing the legal
system will be an important step to help Vietnamese
businesses implement Green Marketing well. Government
can use measures to encourage businesses to implement
Green Marketing such as partial capital support and
technology to facilitate business growth. Strengthen
communication and education on environmental protection
and implementation methods, and raise awareness of the
people. To absorb new applications in environmental
protection and step up the socialization of environmental
protection. Linking with other countries and international
organizations to join hands to protect the environment,
encourage and attract foreign capital to invest in businesses
implementing the Green Marketing strategy.
For businesses, it is necessary to build human resources,
especially resources for the Marketing Department: Green
marketing is very new in Vietnam so it requires creative and
high quality human resources. Enterprises should focus on
three aspects: marketing planning process, budgeting and
training people. Promote products, raise environmental
awareness, and break consumer behavioral conflicts:
Businesses need to properly and honestly promote their
products to create trust with customers, helping them to easily
choose green products. Create factors that drive consumer
buying awareness, including either interest or ethics. Note,
there must be a link between green products and consumers
'interests: focusing on environmental factors, but not being
able to put environmental factors first and forgetting
consumers' benefits
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