The role of green marketing on the economic profitability of Tang Company

Document Type : Research Paper

Authors

1 Economics faculty, Allameh Tabataba’i University, Tehran, Iran

2 M.Sc., Economics and E-commerce, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran

Abstract

Environmentally conscious consumers have become increasingly prevalent in recent years, leading businesses to use "green" marketing tactics to attract attention. One such approach is digital marketing, which can expedite a company's ability to reach its target audience. Toranj Tile and Ceramic Company, seeking to expand its sales market and stay current with the latest marketing methods, is considering transitioning from traditional to green marketing strategies. However, this shift requires careful economic justification. This research evaluated the economic feasibility of green versus traditional marketing methods for Toranj Tile and Ceramic Company using Benefit-Cost Ratio and Net Benefit-Investment Ratio indicators under different discount rate scenarios. The results showed that the green marketing approach has a clear advantage compared to traditional marketing with the average Benefit-Cost Ratio and Net Benefit-Investment Ratio indices of 1.5 and 1.3 respectively. In addition, the green marketing strategy shows an average of 22.9 and 63.3 percent higher performance compared to the traditional approach in the Benefit-Cost Ratio and Net Benefit-Investment Ratio indices.

Keywords

References

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Journal of Environmental and Natural Resource Economics
Volume 4, Issue 8
June 2024
Pages 29-49

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History

  • Receive Date: 01 June 2024
  • Revise Date: 13 July 2024
  • Accept Date: 14 July 2024

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