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Figure 2.2 Hypothesis Model
Based on literature review discussed above and by considering some propositions developed by some scholars in green marketing strategies, and economic
sustainability aspects, therefore this study aims to investigate the influence of green marketing strategies towards economic sustainability, by employing product,
production, distributionmarket, and promotion strategies as independent variable, while stock price constitutes dependent variable.
D. Hypotheses Development
Based on literature review discussed above, thus there are some hypotheses to be tested, as follow:
Green marketing has been rarely used as a strategy to achieve a corporate objective. There is also scant research discussing the connection between green
marketing strategy and economic sustainability. However, green marketing strategy
Product Strategy Vaccaro, 2009: 322
Production Strategy Vaccaro, 2009: 322
Distributionmarket Strategy
Vaccaro, 2009: 324 Promotion Strategy
Vaccaro, 2009: 324 Stock Price
Fauzi et al., 2010: 1347
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can lead to economic sustainability, such as increased revenues and profits, as well as higher market share and return on investment Vaccaro, 2009. In addition, Cronin et
al . 2010 suggest firms that have a green orientation are likely to gain higher
financial results and market share. However, this research employs four green marketing strategies to detect their influence towards stock price –as proxy for
economic sustainability. Thus, based on these notions, wide range hypotheses are developed:
H : Green marketing strategies do not have significant influence towards
economic sustainability. H
1
: Green marketing strategies have significant influence towards economic sustainability.
H
0a
: Product strategy does not have significant influence towards stock price. H
1a
: Product strategy has significant influence towards stock price. H
0b
: Production strategy does not have significant influence towards stock price. H
1b
: Production strategy has significant influence towards stock price. H
0c
: Distributionmarket strategy does not have significant influence towards stock price.
H
1c
: Distributionmarket strategy has significant influence towards stock price. H
0d
: Promotion strategy does not have significant influence towards stock price. H
1d
: Promotion strategy has significant influence towards stock price.
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CHAPTER III RESEARCH METHODOLOGY
A. Scope of Research
This research is quantitative which employs secondary data, taken from extensive journals and books review, corporate responsibility report, Greenpeaces’s
Guide to Greener Electronics, National Association of Securities Dealer Automated Quotation NASDAQ quotation, and some indexes data. For the purpose of the
study, the researcher employs stock price Y and green marketing strategies X with four sub variables, namely product strategy X1, production strategy X2,
distribution strategy X3, and promotion strategy X4. Furthermore, in assessing green marketing strategies, the researcher employs
Greenpeace’s Guide to Greener Electronics as the basis for scaling each independent variable. The guide ranks leading mobile phones, game console, personal computer
PC, and televisions TVs manufacturers on global policies and practices. The guide has been released since March 2006, counting sixteen versions to date. Due to the
absence indicators of aimed sub variables, the researcher opts to use guide from the eighth to fourteenth version, counting eighteen companies.
On the other hand to calculate economic sustainability, the researcher utilize stock price as proxy. To limit the number of sample, the researcher does screening by
utilizing Nasdaq’s stock price quotation of electronics producers, counting twelve companies remaining. Since the Greenpeace’s Guide to Greener Electronics was
released in quarterly basis, the sock price quotation follows the scheme. In short, the
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data analyzed in this research pertains to June 2008, September 2008, December 2008, March 2009, June 2009, September 2009, and January 2010 as replacement for
December 2009.
B. Sampling Technique
In this study, the researcher utilizes judgment or purposive sampling. In judgment sampling method, data collection relies solely on capability or personal
consideration Rodoni, et al., 2009: 17. Basically, population that will be used as research sample is a population that fulfills certain sample criteria in accordance with
researchers consideration. Furthermore, the chosen sample will be selected stringently as relevant as research sample Amelia, 2011: 52. Researcher then
explores the sample thoroughly, so become representative for any population. It is imperative to have a sample with in-depth and distinct characteristics,
what strata should be represented, depend upon scoring or consideration from the researcher perspective Amelia, 2011: 52. This is done so that the result obtained
more accurate. The criteria should be fulfilled as follows:
The observed companies are in electronics industry and belong to leading mobile phones, game console, PC, and TVs manufacturers.
The observed companies are assessed and ranked by Greenpeace in Guide to Greener Electronics with newly extended criteria started from eighth edition
on June 2008.
