Resource-constrained product development: Implications for green marketing and green supply chains

Arun Sharma, Gopalkrishnan R. Iyer

Research output: Contribution to journalArticle

76 Scopus citations

Abstract

While academic debates and practical approaches to green marketing have matured over the past few decades, one central conundrum that has remained unresolved has been the trade-off between the higher prices of green products and the objectives of environmental sustainability. In general, it has been observed that green products are priced at a premium to account for their environmentally friendly consumption and use. We argue that resource-constrained product development approaches (alternatively labeled jugaad) that are observed in emerging countries such as China and India have the potential to change the traditional models of green product development. In addition to the competitive advantage that resource-constrained product development approaches provide, we suggest that these practices have sustainability and supply chain benefits. We show that the innovation process relies primarily on frugal engineering that reduces material use (thereby reducing burden on supply chain) and meets green marketing objectives at much lower, and therefore, more affordable prices. We draw out several implications for theory and practice.

Original languageEnglish (US)
Pages (from-to)599-608
Number of pages10
JournalIndustrial Marketing Management
Volume41
Issue number4
DOIs
StatePublished - May 1 2012

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Keywords

  • Frugal engineering
  • Green marketing
  • Jugaad
  • New product development
  • Sustainability

ASJC Scopus subject areas

  • Marketing

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