Reverse Vending Machine.pdf

A Study on the challenges of adoption of Reverse Vending Machines in North Bengaluru

Group Project Report Sl. No.

1 2 3 4 5 Mentors:

Reg. No.

Student Name

17MCMS046001 17MCCO051005 17MCMS046050 17MCMS046051 17MCMS046079

Abhishek Gowda Deeksha.R Pramitha S.K Prathamesh Mhatre Srikanth. U

Department

MBA-FMT M.com-ACT MBA-HRM MBA-MMT MBA-FMT

Dr. Mamatha. S. V, Asst. Professor

November 2018 FACULTY OF MANAGEMENT AND COMMERCE M. S. RAMAIAH UNIVERSITY OF APPLIED SCIENCES Bengaluru -560 054

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

i

FACULTY OF MANAGEMENT AND COMMERCE

Certificate This is to certify that the Project titled “Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North” is a bonafide record of the group project work carried out by Mr./Ms.AbhishekGowda, Deeksha R, Pramitha S. K, Prathamesh Mhatre, Srikanth U bearing Reg. No. 17MCMS046001, 17MCCO051005, 17MCMS046050, 17MCMS046051, 17MCMS046079 Department of Management and Commerce, FT-2017 batch in partial fulfilment of requirements for the award of M.B.A./M.com Degree of M. S. Ramaiah University of Applied Sciences. December 2018 Mentor Asst. Prof, Dr. Mamatha. S. V. December– 2018

Dr. H. S. Srivatsa Associate Dean and HOD–Faculty of Management and Commerce

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

i

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Declaration

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North The Group Project report submitted herewith is a result of our own work and in conformance to the guidelines against plagiarism as laid out in the University Student Handbook. All sections of the text and results which have been obtained from other sources are fully referenced. We understand that cheating and plagiarism constitute a breach of University regulations and will be dealt with accordingly.

Sl. No. 1

Reg. No. 17MCMS046001

2 3 4

17MCCO051005 17MCMS046050 17MCMS046051

5

17MCMS046079

Student Name Abhishek Gowda Deeksha.R Pramitha S.K Prathamesh Mhatre Srikanth U

Department

Signature

MBA-FMT M.com-ACT MBA- HRM MBA- MMT MBA- FMT

Date: 17-November-2018

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

i

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Acknowledgements The completion of this project, although took our combined efforts, would not have been possible without the kind support and cooperation of multiple individuals. "Many ideas grow better when transplanted into another mind than the one where they sprang up." – Oliver Wendell Holmes

We first and foremost would like to express our immense gratitude to our mentor, Dr. Mamatha S.V for guiding us and helping us time and time when we in need of it. We are highly indebted for the aid that was provided when necessary and helping us complete the study.

We would like to express our thankfulness towards Dr.H.S. Srivatsa, Associate Dean and HOD of FMC and to Prof. H.N. Nagesha, Registrar of FMC for their encouragement to finish our project with zeal.

We would also like to express our gratitude towards the retailers who co-operated with us and answered all our questions, and the citizens who took time to fill out our questionnaires that aided us in our study. We would especially like to thank all the organisations who answered our queries.

We would finally like to express special gratitude towards all the professors, parents and friends who helped us through times of need. It was their support that helped us through down times.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

ii

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Abstract India will be producing 80-85 metric Tons of Solid waste by 2030. It is seen to be offering a market of approximately USD 20 billion. Given the alarming quantity it is imperative to bring in methods which will alleviate the problem. One of them is the Reverse Vending machine. A reverse vending machine is a device which accepts bar coded plastic bottles and returns cash or redeemable coupons. This appliance is very famous where the legislation regarding recycling is mandatory, like Germany, Norway and other European countries. The government and companies have installed RVMs in four railway stations in Bangalore, but they are dysfunctional and inefficient though this has the capability of reducing plastic by 6 Percent. This study attempts to understand the challenges for adoption of RVMs machine. Therefore, the group studied the current issues faced by RVMs which are installed. The variables identified through literature review and field study were awareness, willingness, incentives, convenience and involvement. The variables taken for the survey and the revenue model – awareness, willingness, incentives, convenience and involvement, are the deciding factors for the successful adoption and maintenance of reverse vending machines in North Bengaluru. Data was collected from both retailers and users. The retailers were presented with questions about willingness to adopt the RVMs in their outlets. It was seen that retailers were reluctant to look at eco-friendly ways of disposing plastic. Further to understand the view of users, data collection was done from 246 users. The results emphatically show that the levels of involvement of users in eco-friendly activities was the main reason which affected the willingness of people to adopt RVMs. Results also show that convenience, incentives and awareness are other factors which affect

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

iii

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

willingness in that order. It is intuitive that when involvement is high then there is an attempt to become aware and adopt an eco-friendly product which is reiterated by the results. Hence, we see that citizens must get involved either by their own interest or by policy to adopt Reverse vending machines. Countries in the west like the members of European union and USA have brought in legislations like “Bottle Bill” and “EU plastic strategy” to name a few. Systems like Recycle Refund systems should be studied for its applicability in Indian Context. The study concludes that similar attempts needs to be made to improve the adoption of useful devices like Reverse Vending machines.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

iv

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Table of Contents Acknowledgements ............................................................................................................ ii Abstract .............................................................................................................................. iii Table of Contents ............................................................................................................... v List of Tables .................................................................................................................... vii List of Figures .................................................................................................................... ix Abbreviation and Acronyms ............................................................................................. x 1. Introduction and Motivation ........................................................................................ 1 1.1

Introduction: ................................................................................................. 1

1.2

Literature Review......................................................................................... 4

1.3

Literature Review on different variables ..................................................... 8

1.4

Field study to explore the extent of usage of RVMs by Citizens .............. 10

1.5

Research gaps based on Literature Review and Field Study ..................... 13

1.6

Motivation .................................................................................................. 13

2. Aim and Objectives ...................................................................................................... 14 2.1.

Title ............................................................................................................ 14

2.2.

Aim ............................................................................................................ 14

2.3.

Objectives .................................................................................................. 14

2.4.

Methods and Methodology/Approach to attain each objective ................. 14

2.5.

Research Process ........................................................................................ 15 Objectives: ................................................................................................. 16

2.6.

Summary .................................................................................................... 18

3. Problem Solving ........................................................................................................... 19 Objective RO1: Understand and explore the extent of usage of Reverse Vending Machines by citizens .............................................................................................. 19 Objective RO2: To analyse the factors which influence the usage of Reverse Vending Machines for retailers .............................................................................. 19

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

v

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Objective RO3: To analyse the factors which influence the usage of Reverse Vending Machines for citizens .............................................................................. 22 1. Pilot study on users ................................................................................................ 22 2. Main study on users ............................................................................................... 27 4. Outcomes ...................................................................................................................... 40 •

Objective RO1: To understand and explore the extent of usage of Reverse

Vending Machines by citizens ............................................................................... 40 •

Objective RO2: To analyse the factors which influence the usage of Reverse

Vending Machines for retailers .............................................................................. 40 •

Objective RO3: To analyse the factors which influence the usage of Reverse

Vending Machines for citizens .............................................................................. 41 •

Objective RO4: To recommend the methods or practices which will improve

the usage of Reverse Vending Machines ............................................................... 43 Incentive model of Reverse Vending Machine .................................................................. 43 Practical Implications......................................................................................................... 45 Limitations of the study ..................................................................................................... 47 Future Scope of the study .................................................................................................. 47 5.

References ............................................................................................................. 48

6.

Team Experience .................................................................................................. 50

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

vi

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

List of Tables Table 1: Methodology Table .............................................................................................. 15 Table 2: Objective for Research Hypothesis ..................................................................... 18 Table 3: Cronbach's alpha for awareness ........................................................................... 24 Table 4: Cronbach's alpha for willingness ......................................................................... 25 Table 5: Cronbach's alpha for Incentives ........................................................................... 25 Table 6: Cronbach's alpha for convenience ....................................................................... 26 Table 7: Cronbach's alpha for involvement ....................................................................... 27 Table 8: Cronbach's alpha for the Main Study .................................................................. 31 Table 9: Cronbach's alpha for different variables .............................................................. 31 Table 10: Factor Loadings ................................................................................................. 32 Table 12: R square for variables ........................................................................................ 34 Table 13: Research Hypothesis Result .............................................................................. 35 Table 14: MGA for Age ..................................................................................................... 37 Table 15: MGA for Gender................................................................................................ 37 Table 16: MGA for Occupation ......................................................................................... 37 Table 17: MGA for Marital status ..................................................................................... 38 Table 18: Objective 1 Conclusion...................................................................................... 40 Table 19: Objective 2 Conclusion...................................................................................... 40 Table 20: Objective 3 Conclusion...................................................................................... 41 Table 21: Objective 4 Conclusion...................................................................................... 43 Table 22: Literature Review Table .................................................................................... 57 Table 23: Awareness Questions for Retailers .................................................................... 58 Table 24: Willingness questions for retailers..................................................................... 59 Table 25: Cost Effectiveness questions for retailers .......................................................... 59 Table 26: Convenience questions for retailers ................................................................... 60 Table 27: Involvement questions for retailers ................................................................... 60

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

vii

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Table 28: Awareness questions for users ........................................................................... 62 Table 29: Willingness questions for users ......................................................................... 63 Table 30: Incentives questions for users ............................................................................ 64 Table 31: Convenience questions for users ....................................................................... 64 Table 32: Involvement questions for users ........................................................................ 65

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

viii

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

List of Figures ________________________________________________________________________

Figure 1: Research Process ................................................................................................ 15 Figure 2: Age chart (Pilot) ................................................................................................. 22 Figure 3: Gender chart (pilot) ............................................................................................ 23 Figure 4: Occupation Chart (pilot) ..................................................................................... 23 Figure 5: Marital Status chart (pilot) ................................................................................. 24 Figure 6: Age chart ............................................................................................................ 28 Figure 7: Gender Chart ...................................................................................................... 29 Figure 8: Occupation chart................................................................................................. 29 Figure 9: Marital Chart ...................................................................................................... 30 Figure 10: Structural Model ............................................................................................... 33

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

ix

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Abbreviation and Acronyms Abbreviations

Acronyms

RVM

Reverse Vending Machines

PET

Polyethylene terephthalate

RDF

Refuse Derived Fuel

PSW

Plastic Solid Waste

PE

Polyethylene

PP

Polypropylene

CPCB

Central Pollution Control Board

PLS

Partial Least Squares

ISB

Indian School of Business

PLS SEM

Partial least squares structural equation modelling

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

x

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

1. Introduction and Motivation 1.1 Introduction: Waste is being generated at an alarming rate around the world, hence came the need of waste management. Waste Management is the process of managing waste from the time it is produced to its final disposal. Waste management generally follows the principal of the “3 R’s- reuse, reduce, and recycle”. Waste is generally classified into different types of waste such as- Liquid waste, solid waste, organic waste, recyclable waste, and hazardous waste. Solid waste is the largest waste that is generated across the world and it involves the following: •

Paper waste

•

Glass and Ceramics

•

Plastic waste

•

Tins and metals

Hence, solid waste management is the most widely done waste management method. Solid waste can be disposed of in the way of incineration and landfilling. However, these methods are also extremely harmful to the environment, since solid waste, especially plastics and ceramics take many years to decompose. Therefore, recycling of such waste was introduced in many countries making it compulsory to recycle waste that can be broken down to make raw materials for multiple products. In India, with its rapid urbanisation, waste is generated in million tonnes with no proper disposal method. Solid waste management is a relatively recent venture by the government. It began in the year 2000. The methods of recycling are scarce in the country, while their foreign counterparts have bought about innovative ways to recycle materials, especially plastics. One such method of solid waste recycling is the use of Reverse Vending Machines.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

1

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Reverse Vending Machines (RVM) is a machine/device that accepts used plastic bottles and in return provides the user with money in form of coupons/vouchers or e-wallet money. The Patent for the first reverse vending machine, then known as “Bottle return and Handling Machine”, was filed in the United States of America in the year 1920. This invention came into existence due to the increase in the use of plastic bottles as a form of convenience and lack of recycling techniques for these bottles. Glass bottles were used for many years till plastic bottles and steel cans were introduced, these were more convenient to the users since there was no need to return these bottles, hence grew the use of plastic bottles. However, with the growing awareness about the environmental benefits that reusing waste provides is known, this small-scale recycling invention has become more widespread with multiple countries across the globe bringing in their own versions of these machines. These machines were first implemented in the United States and spread across Europe in the 1970’s. There are more than 100,000 reverse vending machines installed across the world and are more common in countries with compulsory recycling (Sweden, Canada, Norway and many other countries). These machines have high popularity in the US and Canada where the law requires a refundable deposit on containers in order to encourage recycling. The machines are commonly found around supermarkets. The reverse vending machine was also introduced in China, where the reward was a discount in the subway fare. Similar devices have also been set up in Brazil and Japan. In India, the concept of reverse vending machine is new, with the first one being set up only in 2016. The reverse vending machines, christened as 'Swachh Bharat Recycle Machine', was first installed in the railway stations across India on World Environment Day, with the first being in Mumbai’s Church gate railway station. The Wockhardt Foundation provided these machines. The machine accepted 500 bottles with an authentic bar code per day. The machine gave three reward options to users- donation, mobile recharge, discounts from outlets that are tied up with the machine provider. The plastic is then provided to fibre-manufacturing companies to be used to make grocery bags or clothes.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

2

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Private companies such as Zeleno and BioCrux have set up machines in residential areas, tech parks, tourist spots and, community areas. Zeleno focuses on Delhi, while BioCrux have set up machines in Pune, Bangalore and Mysore. The major players in the Reverse Vending Machine industry across the globe are as follows: •

Zeleno

•

BioCrux

•

GreenOps

•

Tomra

•

Terracycle

•

Envipco

Zeleno was started by a couple of ISB Hyderabad to tackle the problem of ever-growing plastic waste in Delhi. Their main objective was to show the benefits of recycling to the citizens of Delhi by attracting them with cashbacks for recycling PET bottles and aluminium cans. The company has installed around 30 machines across Delhi, Jharkhand and, Uttar Pradesh since 2016 and is in the process of installing 20 more machines. BioCrux was created with the objective of making places like residential businesses, college campuses, and commercial complexes and companies more PET-neutral. BioCrux machines have been installed in 15 locations in four cities across the country. Tomra began with a similar principal of wanting to improve the environmental situation and reduce the amount of plastic waste across the world. Terracycle with a similar principle are involved in recycling hard-to-recycle stuff. However, their rewards are not for personal benefit but for the society, through charities and donations. The Reverse vending machines business began with the objective of reducing the amount of plastic waste across the world. With Zeleno and BioCrux being solely based in India. These machines promote recycling by providing attractive incentives to users in the form of monetary benefit.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

3

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

1.2 Literature Review Solid waste management is one of the primary services provided by most Governments to their citizens. Solid waste management is the most important municipal service provided to the residents and serves as a necessity for other municipal action. The by-products of rapid urbanization are growing faster than the rate of urbanization. It is estimated that an average urban person generates about 0.64kg of municipal solid waste (MSW) per day per person (Hoornweg, Daniel,2012). Most developed countries are efficient in their ways of solid waste management, some countries also have compulsory recycling policies in place to ensure that proper waste management occurs. However, waste management is a huge problem in developing countries. The increasing amount of waste being produced in these countries is a burden to the municipal authorities due to the lack of funds that is the result of high cost management (Guerrero, Maas and Hogland, 2013) 6. Rapid urbanisation and economic transition have led to increase in urban population in developing countries, this has led to an increase in the waste generation (Abas and Wee, 2014) 1. This is a problem in India as well. The collection, transportation and disposal of waste in the country is chaotic and unscientific. Waste is dumped on the outskirts of cities and towns in overflowing landfills that are impossible to reclaim. This has negative environmental implications which is the cause of groundwater pollution and global warming. In the absence of a proper system of waste segregation, recycling is a task that is done by the informal sector with their outdated technology (Gupta, S., Mohan, K., Prasad, R., and Kansal, A,1998) 7. Waste management, especially Solid waste management is a huge problem in Indian cities. The improper management of such wastes is hazardous to the inhabitants of the country. According to studies, 90% of the solid waste in India is disposed of unscientifically in landfills and open dumps leading to health problems. Burning of wastes is also a common practice which leads to toxic gases being released into the air. The collection centres are inefficient, and the transport process is not supervised properly. There are multiple ways of disposing of waste, they are- aerobic composting (for organic waste), vermicomposting, incineration, gasification, RDF plants (refuse derived fuel) and most importantly recycling (Sharholy, Ahmad, Mahmood,2007) 14.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

4

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Recycling is a very important waste management process, especially for those materials that do not decompose for a long time. Plastic is one of these materials. Waste generated in developed countries composes mostly of recyclable material while the waste generated in developed countries mostly comprises of organic material (Simelane and Mohee, 2015) 15. Plastic is chemically harmful, however in countries such as the United States, Japan, and Australia have classified it as solid waste, henceforth treated in the same method as food waste and other organic wastes. Therefore, plastic needs to be classified as hazardous waste which needs to be recycled (Rochman et al., 2013) 13. The production and waste generation of plastics have increased significantly over the years since its first industrial scale production in the 1940’s. Plastic is used daily in households, industries, corporates, commercial purposes and in a number of appliances. Therefore, it isn’t surprising that plastic is one of the largest components of solid waste. The increasing amount of waste and costs related to it and the decreasing amount of space for landfills has led to the search of new disposal methods of plastics. The author also delves into the benefits of reusing and recycling plastic wastes. Recycling plastics helps reduce the use of fossil fuels, since plastic production uses up to 4-8% of the world’s oil production. There are several techniques in place to separate plastic solid waste (PSW), however these require human segregation, henceforth is still quite inefficient. The most recent technique in recycling is mechanical recycling. This involves machines that crush plastics into different forms. The most recent type of mechanical recycling machine is the reverse vending machine, that shreds plastic bottles into flakes that can be reused in the making of fibres, clothes and ropes. In a normal mechanical recycling process, the following is the steps that occur- the machine first shreds the plastic, any contaminant is separated (paper, dust), different types of plastic are separated, they are then milled. The next step is where the plastic is cleaned and washed, the plastic is then turned into strands and singlepolymer plastics are formed. In the final step, the plastic is water-cooled and then sold as a final product. Therefore, recycling is the better alternative to disposing of plastics (Al-Salem, P. Lettieri, J. Baeyens, 2009) 2. The rapid urbanisation has overwhelmed the municipal authorities when it comes to efficient waste management. Plastic waste makes a considerable amount of the solid waste; therefore, its

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

5

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

disposal is the most important. Recycling is one of the best ways of plastic disposal. This method is considered as one of the most environmentally sound method of waste management. The study then elves into the drivers to sustainable waste management, plastic recycling and its challenges and opportunities. The drivers that were identified were social drivers, economic drivers and environmental drivers. There is a higher chance of better plastic waste management if the segregation happens at the source. Th ease of access of access also plays a huge role in the promotion of recycling, the more accessible a drop of centre is the more people were willing to recycle. People who are more aware and understand recycling were more likely to recycle, therefore educating people on this front is very important. The study also explains that those who were aware about the environmental woes were more willing to recycle than those who were unaware of the environmental conditions. It was also noted that people were more willing to recycle when there was an incentive involved. One such innovation in recycling that provides people incentives for recycling is the reverse vending machine. It provides the recycling with a small amount of money in the form of coupons or e-wallet money for recycling plastic water bottles. This method promotes a more sustainable method of waste management since the bottles are turned into flakes in the machine which can be reused for a multiple of products (Mwanza, Mbohwa,2016) 12. Plastic is one of the inexpensive, durable and lightweight material that can be moulded into any type of product with ease, therefore the production of said material increased dangerously over the years. The current levels of plastic are not only high but also has generated several environmental problems. The current use of plastics is not sustainable, since the plastic made are majorly disposable which are disposed of a year or two after manufacture. Therefore, there is a need for a better and more sustainable way of recycling plastics. Recycling of plastics involved four categories- Primary which involves mechanical reprocessing into a similar product, secondary involves mechanical reprocessing into products of lower quality, tertiary which involves recovering the chemical properties and lastly quaternary which involves converting plastics into energy. For the purpose of this project, we are mainly concerned with the primary form of recycling. This category involves thermoplastics (PET, PE and PP), the materials that can be recycled mechanically with more ease. These materials can be used to make different materials.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

6

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

There have been new developments in recycling in most European countries, one of such development that was installed in Norway is the reverse vending machine. It is a more efficient way of recycling plastic bottles since the user also receives incentives. However, challenges are also involved, prices differ when it comes to recycled polymers and virgin polymers. The virgin polymer is of a sturdier material than the recycled polymer which is a combination of multiple qualities of plastics (Hopewell, Dvorak, Kosior ,2009) 9. Plastic makes up around 10% of household waste which is often disposed of in landfills. However, around 70-80% of this waste is found floating around in oceans and found on beaches. According to the Central Pollution Control Board (CPCB) the consumption of plastic in India is around 8 million tonnes per annum and about 5.7 million is converted to waste. Plastic waste is a global problem, the burning of plastic is bigger problem. Air pollution is a major problem that is a result of burning plastic in open grounds. The amount of waste in the ocean also indicates that plastic is one of the cause of water pollution. Landfills are said to contribute to about 20% of the greenhouse gases only after fossil fuels, and with landfills being the main method of waste disposal in India, tonnes of toxic gases are being released into the air. Plastic also contains several chemicals that gives it its properties, these chemical harmful not only to the ecology but also to the human body since they are easily digested. These chemicals are found in the landfills were unscientific disposal of plastics is performed. These chemicals affect the surrounding fertile areas and are absorbed into vegetation which, when consumed, leads to major health problems. One such chemical is polystyrene, which hams the central nervous system. When plastic is burned the toxic gases released leads to health risks such as heart diseases, asthma, and other ailments. Henceforth, it is important that a new way of disposal of plastic is adopted in the country. One such way is the use of reverse vending machines, although currently these machines only accept plastic bottles, they can be upgraded in the future to accept more types of plastic wastes (Verma, Vinoda, Papireddy, Gowda, 2016) 17. Plastic waste through recycling can also be reused to become constituents of different products. Reusing wastes in a way that helps sustain natural resources that are not easily replenished is way to help decrease pollution and recycle waste that is hard to get rid of. Plastic waste is one such waste. Concrete is one such material that can accommodate plastic into its constituency. It can Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

7

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

act as a binder, however not all sorts of waste can be incorporated. Since concrete normally results in minor cracks, it is speculated that the nature of plastics can help decrease the amount of such cracks leading to a longer lasting material. The material in plastics, polypropylene, is used as a toughness and strength increaser to concrete. However, the problem with plastic involved concrete is that it does not absorb moisture well, leading to difficulty in the laying process. However, it is a better use of plastic. The plastic generally incorporated is in the form of flakes. Reverse vending machine, a recycling machines, shreds plastic bottles into flakes. These flakes can be readily used for making such sustainable materials (Zainab Z. Ismail, Enas A. AL-Hashmi,2008) 18

.

It can be seen from the literature review that solid waste management is a big problem around the globe. However, the bigger problem is posed by the lack of proper management of plastic wastes, this waste is potentially more dangerous than the other forms of waste. Hence, there is a need for policies to properly manage plastic waste a different way of recycling plastics should be introduced.

Summary: The literatures reviewed provide an insight on the current situation of solid waste management around the world. Solid waste management although implemented is not prominent. There are a limited number of countries that are involved in waste management, where waste is segregated, and plastics recycled. Plastic is a material that is harmful to the environment due to its properties, however its disposal is inefficient. The current methods of plastic disposal are through ways that is not sustainable and are harmful. Therefore, there is need for plastic recycling where the recycled plastics can be further used to make more materials. There is also a general need for policies that promotes and makes compulsory the proper disposal of plastics.

1.3 Literature Review on different variables 5 variables were chosen for this study. They were selected based on literature and a field study that was conducted. The dependent variable for this study is willingness. Willingness was chosen as a variable as it is the readiness of the citizens to use the machine that will affect its

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

8

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

adoption. There are 4 independent variables that affect the dependent variable. The independent variables were chosen as they have an impact on the dependent variable. They are backed by literature review, secondary data and the data collected from the field study. Awareness is the capacity or condition to observe, to sense, or to be conscious of incidents, objects, or sensory patterns. In this degree of perception, sensory information can be established an observer, not necessarily indicating an understanding to the matter. (Gafoor, A. 2012) 5

.Awareness is the perception or knowledge of facts or situations. Awareness of users in this

context includes how informed they are about the conservation of the environment, how knowledgeable they are about the various efforts taken for conservation and sustainability, and if they are aware of the existence of Reverse Vending Machines. Awareness also applies to the retailers who may be ready to adopt the Reverse Vending Machines. Incentive mechanisms are known to address a multitude of aspects that affect motivation of a set of people or groups, to achieve an objective (or objectives) in the community (Bezerra, J., Hirata, C. and Randall, D. 2014) 3. The entire concept of Reverse Vending Machine revolves around give and take. Users are encouraged to dispose plastic bottles in exchange for some reward of the many choices provided by the machine. These rewards are known as incentives, as they motivate individuals to dispose their waste into the machine. Willingness encompasses three aspects, namely desire, commitment and confidence. It can be verified if a person takes immense effort to accomplish a task. It projects perseverance to a task and individuals prefer following leaders that are enthusiastic and deliver a sense of purpose to them (Zainab, A. and Baig, E. 2011) 18. Willingness of a person in terms of the Reverse Vending Machine is determined by the state or quality of being prepared to use the Machine. The users’ readiness to adopt the machine and the his/her commitment towards the continued usage of the machine, also comes under the willingness. Involvement is termed as the level to which an individual’s work implementation which is the resultant of the respective job interaction that affects his self – esteem. It is basically the degree

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

9

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

of relatability of an individual and how responsible he/she feels when it comes to the task (Kuieck, Thomas J. ,1980) 11. Cost – effectiveness is the range to which the task has been attained or is forecasted to achieve its outcomes at a lower expense compared with substitute methods. Demarcations in cost – effectiveness happen when the program is not the most optimal way or approach to attaining the similar results and outputs (Siteresources.worldbank.org. ,2018) 16. Cost effectiveness is the relationship between the monetary inputs and output. It is a degree to which something is productive or effective with relation to expenditure. Cost effectiveness is a factor that also adds to sustainability. The cost effectiveness of the Reverse Vending Machines means how the revenue model for those machines can allow for its sustainability. Convenience is a word that is applied mostly to any human action, including cooking, exercise, shopping and travel. Convenience should hence have both a context – specific and a universal meaning. The universal meaning given to convenience is that which is easier to use, avoidance of trouble or favorable to comfort (Clulow, V. and Reimers, V,2009) 4. Consumers require convenience in both products and services. It is an attribute that is as important towards the affecting the consumers purchase intent, as price and features. The Reverse Vending Machine must provide convenience of place, time and functionality in order to be accepted.

1.4 Field study to explore the extent of usage of RVMs by Citizens A field study was conducted to identify the current situation of reverse vending machines. It was conducted to understand how the current reverse RVMs located in different parts of the city are functioning. A visit was made to the places where Reverse Vending Machines were installed. These places Yeshwanthpur railway station, Cantonment railway station and Majestic railways. The following is the case study that elaborates the current situation. This study aims to shed light on the current situation of Reverse Vending Machines in Bangalore. The study highlights the factors that have led to the minimal adoption of these machines in the city. The current situation of Reverse Vending Machines/Plastic disposal machines/Smart bins in Bangalore is far from being optimal. The very concept of Reverse Vending Machines is still new to

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

10

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

a majority of citizens. There have not been enough awareness campaigns or advertisements about these machines for them to see the spotlight. In June 2018, the Government collaborated with Reverse Vending Machine provider, Biocrux India Pvt. Ltd., to install the machines in railway stations in Bangalore. These machines were installed in the following locations – 2 in Krantivira Sangolli Rayanna (KSR) railway station, 1 in Yeshwantpur railway station, and 1 in Cantonment railway station. It was part of the Swachh Bharat Abhiyan to keep plastic waste off the streets and crowded public places. By visiting the railway stations, it was observed that there were 5 factors that affected the usage of the vending machines – Awareness •

When asked for the location of the vending machine, most of the people (including the people working in and around the station) were unaware of the term "Reverse Vending Machine"

•

Only when the question was reframed to include "plastic disposal machine", did the individuals understand the message

•

Questions were asked to the staff, general public and to the shopkeepers in the railway station

•

Most of the retailers in and around the station were unware of the existence of such a machine. Only a few of the younger staff at the railway station knew what the machine was. A majority of the the general public new what the machine was and what it did.

Functionality •

The vending machine at Yeshwantpur railway station was not functioning

•

The slot for inserting plastic bottles was choked due to the excess of bottles that were not shredded properly by the machine

•

Hence there was no room for people to insert their plastic bottles

Incentives •

The machine present at Majestic Metro Station was functional. But, the code for redeeming PayTM cashback did not work

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

11

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

•

After entering the phone number, a redeem link was sent to the respective phone number. By opening the link, the user was taken to the webpage of PayTM homepage. There was no option to input the code for cashback

•

There were no other methods for receiving rewards other than this cashback procedure

Instructions •

The machine comes equipped with a screen that displays videos of only advertisements and disposal awareness

•

The only form of instructions present on the machine were: “Recycle your plastic bottle here” “Drop only plastic bottle up to 2 ltr size”

•

The instructions present on the keypad for entering the mobile number were: “Enter mobile number & get rewarded”

•

All the instructions were written in English making the machine difficult to use for people who do not know the language

•

There were also no instructions for how the cashback is to be redeemed

These problems, when combined, make the process of disposing plastic waste through the reverse vending machine extremely inconvenient. There is not enough knowledge of the machine amongst the workers at the station, to spread awareness to the citizens. One of the major reasons why individuals at the station would want to dispose plastic bottles into the machine would be out of curiosity. Even if the general public were curious, they would not be able to test the machine as it is not functioning. Improper instructions has led to the machine being overfilled with bottles. More so, the instructions have not been translated and displays in the local language. In areas where the machine is functional (Majestic Metro Station), the users are not receiving the rewards that they were promised. The procedure for redeeming the cashback is flawed and leaves the users only halfway in claiming the reward. The collaboration of these factors has led the quickly diminishing success of the vending machines and have ensured the failure of their adoption.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

12

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

1.5 Research gaps based on Literature Review and Field Study Most of the literature which was reviewed focuses on solid waste management and recommends ways of disposing them through methods such as incineration and composting, however it ignores sustainable ways of disposing plastics. The papers that do address plastic and disposal through recycling do not discuss actual methods for efficient recycling. There is also a lack of literature on the willingness of adoption of products. The literatures also fail to explore the reasons for the lack of proper policies and people’s reluctance to follow these policies. The field study reveals that there is citizens and retailers are not interested to use RVMs present. The machines were dysfunctional due to the lack of maintenance. one machine in Majestic that was functional, failed to provide cashback.

1.6 Motivation The motivation behind selecting to study about RVMs and the challenges in adopting it was the dire need for a new and sustainable way of waste management of plastics. The current way of plastic disposal does not involve recycling, they are collected with normal solid waste and dumped in landfills with the rest of the waste. Plastic is toxic for the soil due to its chemical composition. Hence, there was a need felt to explore a method of plastic disposal that is not only sustainable in the long run but is also beneficial to the recycler.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

13

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

2. Aim and Objectives This chapter is a road map to the study conducted for the adoption of the RVM’s. it consists of the objectives, and the methodology used to achieve the objectives. The research methodology flow chart shows the process of acquiring the results/outcomes.

2.1. Title Study on challenges faced for the adoption of Reverse Vending Machine in Bangalore-North.

2.2. Aim The aim of the study to explore the barriers for the adoption of Reverse Vending Machines.

2.3. Objectives RO1: Understand and explore the extent of usage of Reverse Vending Machines by citizens RO2: To analyse the factors that influence the usage of RVM by retailers and retailers RO3: To analyse the factors that influence the usage of RVM by retailers and citizens RO4: To recommend the methods or practices which will improve the usage of Reverse Vending Machines

2.4. Methods and Methodology/Approach to attain each objective Objective Statement of the No. Objective 1 Understand and explore the extent of usage of Reverse Vending Machines by citizens 2 To analyse the factors which influence the usage of the Reverse Vending Machines for retailers 3 To analyse the factors which influence the usage of Reverse Vending Machines for citizens

Method/ Methodology

Resources Utilised

Journal Papers (Literature Review) and Field Study

Scopus, google scholar

Survey based Method

Interview with 30 retailers

Survey based Method

Questionnaire and SPSS

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

14

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

4

To recommend the methods or practices which will improve the usage of Reverse Vending Machines

Based on the analysis, literature gaps and revenue model

PLS, google scholar and Scopus

Table 1: Methodology Table

2.5. Research Process:

Research problem identified

Review of literature

Field study performed

Gaps identified

Questionnaire prepared for retailers and citizens

Retailers interviewed and citizens surveyed

Pilot Study performed

Questionnaires modified

Data analysis

Conclusions drawn from data analysis

Recommendation s provided to improve the situation.

Primary data collection started

Figure 1: Research Process

o

The main research problem pertaining to solid waste management, mainly plastic waste management was identified.

o

Literature review was done to identify the various variable required to study the problem identified.

o

Field study was performed to understand the problems with the adoption and usage of reverse vending machines.

o

A questionnaire was prepared for retailers who sell plastic bottles and citizens who consume them for the purpose of face study

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

15

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

o

Retailers were interviewed with the help of the questionnaires and citizens were requested to fill a survey

o

Pilot study was performed on retailers to highlight their lack of awareness of reverse vending machines and their reluctance to adopt these machines.

o

Questionnaires were modified after reviewing the results from the face study to improve its credibility.

o

The final questionnaires were distributed, and survey conducted only for citizens, due to lack of retailer information.

o

Data analysis was conducted with willingness as the dependent variable other variables like convenience, incentives, awareness, cost effectiveness and involvement were the independent variables. The analysis revealed the extent to which willingness was affected by the independent variables.

o

Conclusions based on the factors were drawn after the data analysis. The analysis was done in groups and conclusions were drawn for each group

o

Recommendations were provided to improve the current scenario of reverse vending machines and to overcome the challenges.

Objectives: •

Objective RO1: To understand and explore the extent of usage of Reverse Vending Machines by citizens

The following objective RO1 was explored in chapter 1-Introduction and motivation. Literature review was used to explore and identify the factors that are involved when considering the study on challenges of RVM. A case study was conducted to understand the current discrepancies in RVMs.

•

Objective RO2: To analyse the factors which influence the usage of Reverse Vending Machines for retailers

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

16

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

The purpose of this objective is to understand the factors that influence the retailers to purchase a reverse vending machine for their shops. This objective explores different variables- awareness, willingness, cost effectiveness, convenience, incentives and involvement.

•

Objective RO3: To analyse the factors which influence the usage of Reverse Vending Machines for citizens

This objective explores the factor that influence a user to search out a reverse vending machine to recycle their plastic bottles. The objective explores what drives the users to use a reverse vending, whether it is the incentives that is provided or the satisfaction of being involved in helping improve the environment. These factors are tested based on the following dependant variable- willingness and the following independent variables- Awareness, incentives, involvement and convenience. The variable is tested under the following statements of hypothesis: These variables are testing with the following statements of hypothesis: Objectives

RO3

Variables

Hypothesis

Awareness of users in this context includes how informed they are

H0= Willingness to adopt RVM is

about the conservation of the environment, how knowledgeable

not affected by awareness

they are about the various efforts taken for conservation and

H1= Willingness to adopt RVM is

sustainability, and if they are aware of the existence of Reverse

affected by Awareness

Vending Machines Convenience is an attribute that is as important towards the

H0= Willingness to use RVM is not

affecting the consumers purchase intent, as price and features.

influenced by convenience

The Reverse Vending Machine must provide convenience of place,

H1= Willingness to use RVM is

time and functionality in order to be accepted.

influenced by convenience

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

17

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Incentives are known to address a multitude of aspects that affect

H0= Willingness to use RVM is not

motivation of a set of people or groups, to achieve an objective

affected by the incentives received H1= Willingness to use RVM is affected by the incentives received

Involvement is basically the degree of relatability of an individual

H0= Willingness to adopt RVM is

and how responsible he/she feels when it comes to the task

not influenced by the user’s level of involvement H1= Willingness to adopt RVM is influenced by the user’s level of involvement

Table 2: Objective for Research Hypothesis

•

Objective RO4: To recommend the methods or practices which will improve the usage of Reverse Vending Machines The objective is to give recommendations to eliminate the current challenges that are faced by retailers and citizens alike when adopting and using an RVM.

2.6. Summary This chapter presented the aim and objectives of the study. The study primarily has four main objectives-Exploring the current situation of waste management and plastic recycling across Bangalore, analysing the factors that influence the usage of RVM by retailers and citizens, understanding and exploring the extent of adoption and usage of RVM by retailers, understanding and exploring the extent of adoption and usage of RVM by users. The research plan is also displayed in the form of a table and flow chart. The next chapter explores the objective three and four in detail. It also provides the methods used to measure the variable to understand their dependency on each other.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

18

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

3. Problem Solving

This chapter explores the objectives that were formulated in the previous chapter in depth. Objective RO1: Understand and explore the extent of usage of Reverse Vending Machines by citizens This objective was explored in detail in chapter 1- Introduction and motivation.

Objective RO2: To analyse the factors which influence the usage of Reverse Vending Machines for retailers This objective was performed by interviewing thirty retailers. The results show that most retailers are unwilling to adopt an RVM. The situation is further explained in the following case study. Bengaluru is one of the high plastic wastes generating areas (Environmental Audit of MSWM in Bangalore city). It is mandate for such areas to generate high waste. It is also observed that the sides of the streets have been dumped with either wet waste, that emit bad odour and breeds insects on the road, or plastic waste that is eaten by animals in the locality. There have been many solutions suggested for the same in the past. One such solution is the Reverse Vending Machine (RVM). An RVM takes in plastic bottles and gives cashback to people’s Paytm wallets. The Karnataka Government, along with Biocrux, installed some RVMs in bus stands and railway stations but none of the machines were fully functional. A survey was conducted in North Bengaluru on 30th October 2018, based on the adoption of Reverse Vending Machine (RVM) by the retailers. About 30 retailers were handed out questionnaires that interrogated them based on five variables – awareness, willingness, cost effectiveness, convenience and involvement. Awareness Awareness is the degree of knowledge the retailers have about the reverse vending machine and what it does. Some of the questions asked were, “How aware are you of what an RVM is?”, “Have you seen ads and hoardings that promote Reverse Vending Machine?”. None of Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

19

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

the retailers knew what an RVM is, and those who knew of it, they didn’t refer to it as an RVM. They called it the waste disposal/plastic machine. The small retailers in that area are not at all aware of what happens to the waste once they dispose it in a black plastic bag. The big franchises, like McDonald’s and Burger King, know that plastic is tougher to be recycled, but nothing about an RVM. They know about Government initiatives like Swachh Bharat, many of whom have even been a part of the campaign. Willingness It is the will of the retailers whether they want to contribute towards the installation of the RVM or not. Only if the retailers are willing to provide the space and money for the machine, will it be successfully adopted in the locality. The retailers who worked in small shops do not own their own place, majority of them are rented. Most of them said that the machine needs to be installed with the permission of the owner/manager. So, when they were asked if they were willing to encourage the use of the machine or if they would contribute towards the installation charges, “We don’t go thinking about all of that” was the common notion. The ones that didn’t rent the shop said that if there were more space to install an RVM, they’d rather put more tables for customers. With the little margin that they make, they cannot afford to think about anything but profit. It was also observed that the bigger the franchises, the bigger the hierarchical distribution. So even the vast branched companies denied the installation as well. Cost Effectiveness This speaks about how affordable the machine is by the vendors, and if they are at profit or loss after the adoption of it. Cost effectiveness for the retailers, again, is out of the question because they don’t own the place, nor do they have enough money. When asked if they’d like to contribute towards the maintenance of it after free installation, only some of them said yes. When it comes to the big merchandises, they have already removed plastic out because of their CSR initiatives. So, the answer to how many plastic bottles do you sell in one day was zero. Hence, installation of RVMs in their places didn’t make sense as well. Fundamentally, the problem is that those who can’t afford it cannot install it, and those who can afford it, do not need it.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

20

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Convenience Convenience affects the retailers as the easier it is to install the machine, the more attracted the retailers are to say yes to contribution towards it. The retailers said that they would not be satisfied in terms of convenience, since they are not looking for potential tie ups with companies. When asked if the RVM would reduce the litter around your shops, hence reducing work for the maids, they said “I would have to pay her the same”. This also implies that the only sort of convenience they are looking for is monetary. Some retailers even said that if it was in their hands, they would install it in their shops. But since the manager decides everything, they didn’t think there was any scope of installation. Involvement It has been observed that involvement goes hand in hand with awareness. People who aren’t aware of it, cannot be involved in the promotion of it. Hence the questions that were asked were, “Have you contributed in other activities to promote cleanliness?”. Some of them had been previously engaged in Swachh Bharat campaigns but have not heard anything about RVMs. The futuristic dimension of this variable, which is if they would like to get involved, would become part of another variable, which is willingness. The only time they said yes was when they were asked if they would adopt the RVM if the government set a mandate to it. Summary The objective of the case study was to what factors would affect the adoption and usage of the Reverse Vending Machine by the retailers. For this purpose, a survey was conducted on retailers. 30 retailers were handed questionnaires and interviewed based on 5 variables. The small-scale retailers were not at all aware of what a Reverse Vending Machine is or what it does. The retailers were asked whether they would contribute to the installing changes of the machine and promote the use of the machine, the common notion was that a clean environment was not a priority. From the feedback given by the retailers, the only sort of convenience the retailers require is monetary convenience. Some of the retailers were previously engaged in Swachh Bharat campaigns but would not be willing to get involved in the adoption of RVM’s.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

21

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

From the data that was gathered from the questionnaire responses, and feedback given by the retailers, it was seen that the retailers who can’t afford it cannot install it, and those who can afford it, do not need it.

Objective RO3: To analyse the factors which influence the usage of Reverse Vending Machines for citizens A pilot study was conducted for 30 respondents to get an insight into the possible results.

1. Pilot study on users Number of respondents: 30 Survey was administered Online. This case study is the base for conducting a survey in North Bengaluru for the citizens. The survey measures the key factors that influence the adoption of RVM’s. Before conducting a survey, it was necessary to test the questionnaire for reliability. The respondents were asked to give recommendations for the improvement in the survey questions. There were some questions that were repetitive which were corrected.

Sample Description

Figure 2: Age chart (Pilot)

A majority of the sample size (83.3% - 25 respondents) consisted of individuals between the age group of 19-28 years.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

22

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Figure 3: Gender chart (pilot)

2/3rds of the respondents were males.

Figure 4: Occupation Chart (pilot)

22 of the 30 respondents were students. The next highest occupation of the respondents being employed persons at 16.7%.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

23

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Figure 5: Marital Status chart (pilot)

A majority of the respondents were unmarried.

Reliability test for pilot study Awareness

Table 3: Cronbach's alpha for awareness

The questions asked for awareness were very vague and the respondents found it difficult to understand the meaning of most of them. So, the questions that were too long and were not found to be relevant by the users were deleted. There were a few questions, that explored the respondents’ knowledge about the advertisements and hoardings about the RVM. Hence, the answers of people who have said that they don’t know about the RVMs would have to say no. The reliability tests and factor analysis were also conducted upon separate variables, the Cronbach’s alpha was 0.589. It also projected that the deleting of the question “How aware are you of the Government initiatives taken to promote plastic waste disposal?” would generate the Cronbach’s alpha to be 0.609. So, the respective changes were made to awareness as a variable.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

24

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Willingness

Table 4: Cronbach's alpha for willingness

Willingness, being the dependent variable, needed to factor in questions from the independent variables. The problem with this variable was that it had only one question for one independent variable each, which goes to say that it had only four questions. The other variables had eight or nine questions in them, this caused instability in the study for analysis. There were also many questions that had been repeated so as to adhere to the other variables in the questionnaire. Also, the Cronbach’s Alpha was 0.552, and upon the deletion of the question, “I will dispose plastic bottles in the Reverse Vending Machine only if it gives rewards in return.” gave 0.777. So, it was changed to “I don’t need rewards to keep my environment clean”.

Incentives

Table 5: Cronbach's alpha for Incentives

This variable gave out the least Cronbach’s alpha, which was 0.217. It needed major changes. The questions were set to the working population as well, hence there was a question which asked the users if installing the machine in their organizations, would be helpful for their respective organizations’ CSR (Corporate Social Responsibility). This would be an incentive for the

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

25

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

organizations to adopt it. But majority of the population didn’t know what CSR was. So that question was deleted. The reliability tests showed that the deletion of the question would give the Cronbach’s alpha to be a 0.3. Many questions had to be modified in accordance to the users’ understanding.

Convenience

Table 6: Cronbach's alpha for convenience

Convenience, too, was very lengthy for the users to fill out the surveys, and many even complained about it. And some got tired of reading too many questions and resorted to ticking neutral for all the questions. It was one of the reasons why the data came out to be noisy and gave out the Cronbach’s alpha to be 0.329. For example, this variable consisted a question which was, “I will dispose plastic bottles in the Reverse Vending Machine even if it is located far away” but there was another question in convenience which was, “I will dispose the bottles only if the machine is closer to my home”, which were the same questions. So, the deletion of the above questions gave a higher Cronbach’s alpha.

Involvement

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

26

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Table 7: Cronbach's alpha for involvement

Involvement as a variable gave a good Cronbach’s alpha of 0.826. And since it had six questions, it was reduced to five questions because all the variables were reduced or increased to have five questions only. This brought stability to the data, hence the analysis was easier, and the users also said the shortening of the survey would help a lot.

2. Main study on users Even though the total Cronbach’s alpha for the pilot study was optimal, the Cronbach’s alpha for certain variables was less than 0.5. Hence, the modifications made to the questions were as follows: •

Made easier to understand

•

Modified to suit the context

•

Deleted the ones that were not relevant

After making modifications to the pilot study questionnaire, the questionnaire for the fullscale study was prepared. The survey data was collected through electronic survey method. Through the convenience sampling method, the total number of respondents for this survey were 247 people. Survey Design The first part consists of Demographics, where we get to know about the age, gender, occupation and marital status of the respondents which further helps us with Multi Group

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

27

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Analysis. The second part consists of the questions based on the dependent and independent variables that measured the same. Descriptive Statistics

Figure 6: Age chart

Out of the 247 respondents, 114 respondents were between the age group of 19-28 years, accounting for 46.2% of the sample size.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

28

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Figure 7: Gender Chart

From the pie chart shown above, it is seen that the distribution of gender of the respondents is mostly equal.

Figure 8: Occupation chart

43.7% (108 people) of the respondents were students, closely followed by employed persons at 34% (84 people).

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

29

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Figure 9: Marital Chart

PLS - Structural Equation Modelling The partial least squares path modelling or partial least squares structural equation modelling (PLS-PM, PLS-SEM) is a method of structural equation modelling which allows estimating complex cause-effect relationship models with latent variables. Structural Equation Modelling (SEM) is a second generation, multivariate method that was used to assess the reliability and validity of the model measures. First generation multivariate methods, like multiple regression, are appropriate for evaluating constructs and relationships between constructs. Multiple regression is an excellent tool to predict variance in an interval dependent variable. Structural equation models (SEM) are very popular in many disciplines. The partial least squares (PLS) approach to SEM offers an alternative to covariance-based SEM, which is especially suited for situations when data is not normally distributed.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

30

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

•

Measurement Model o Construct Reliability and Validity

Reliability Statistics Cronbach's Alpha Based on Cronbach's

Standardized

Alpha

Items .820

N of Items .830

26

Table 8: Cronbach's alpha for the Main Study

Cronbach’s Alpha is a reliability test that measures the internal consistency of a set of items, that is, how closely related those items are as a group. The test is a measurement of scale reliability. The number of items in this context are the questions asked to measure the responses for the 5 variables of the study. The 26 items have an alpha coefficient of 0.820, suggesting that the internal consistency of these items is relatively high. Cronbach's Alpha 0.673

Composite Reliability 0.855

Convenience

0.765

0.834

Incentives

0.515

0.744

Involvement

0.779

0.843

Willingness

0.875

0.910

Awareness

Table 9: Cronbach's alpha for different variables

The above table shows the Cronbach’s Alpha for the 4 independent variables and 1 dependent variable. The data shows that the variable with the least consistency is “Incentives”, meaning it does not align itself with the other variables.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

31

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

o Factor loadings It is also known as negative factor loading and reflective indicator. It is a reverse item; its gist is the contrary of the other items of the same latent variable. For the measurement to be acceptable, the outer loading should be more than 0.7. Items

Awareness

AW02

0.810

AW03

0.917

Convenience

CN01

0.794

CN02

0.622

CN03

0.775

CN04

0.602

CN05

0.733

Incentives

IN01

0.732

IN04

0.642

IN05

0.729

Involvement

IV01

0.738

IV02

0.581

IV04

0.829

IV05

0.738

IV06

0.702

Willingness

WI01

0.858

WI02

0.807

WI03

0.828

WI04

0.901

WI05

0.684 Table 10: Factor Loadings

Most of the loadings are above a value of 0.6. The loadings that are below 0.6 can be accepted because this study is relatively new to research. The loading “IV02” is the only loading with a value below 0.6, but we accept it since the item is important to the study.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

32

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

•

Structural Model β = 0.185 p-Value = 0.231

Awareness

β = 0.185 p-Value = 0.000

Incentives

Willingness β = 0.185 p-Value = 0.000

β = 0.185 p-Value = 0.000

Convenience

Involvement

Figure 10: Structural Model

This test helped to understand the variance of dependency of the dependent variable, willingness, on the other variables. From the responses collected from the questionnaire, it is apparent that involvement with a β=0.606 is the largest contributor towards willingness. People are inclined to willingly use an RVM when they are involved in actively helping Improve their surroundings and environment. Convenience is the second most important variable to the users with a β=0.452, the more convenient the location or usage of an RVM is, the more users are willing to use on. Incentives, surprisingly, does not have much of an impact on willingness with a β=0.309. Users are willing to use an RVM even without incentives. Lastly, awareness barely has an impact on the willingness to use an RVM, with a β=0.185.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

33

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

So, it is apparent that citizens are more than likely to use an RVM when they are more involved in activities that actively promote a cleaner and safer environment as well as the convenience of use. p-Values The p-value, or calculated probability, is the probability of finding the observed, or more extreme, results when the null hypothesis (H0) of a study question is true – the definition of ‘extreme’ depends on how the hypothesis is being tested. “p” is also described in terms of rejecting H0 when it is true, however, it is not a direct probability of this state. The p-values from figure 10

indicates that awareness is the only variable that does not have a significant impact on willingness. All other variables have significant relationship with willingness R Square R-square is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable. In investing, R-squared is generally considered the percentage of a fund or security's movements that can be explained by movements in a benchmark index. Variables

R Square

Awareness

0.034

R Square Adjusted 0.030

Convenience

0.204

0.201

Incentives

0.095

0.092

Involvement

0.367

0.365

Table 11: R square for variables

We infer from the R2 values that Involvement and convenience are the major factors which impact Willingness. We do not have any study to fall back on R2. The study can not be compared with previous studies to show that R2 is acceptable. Hence, we cannot accept or reject R2.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

34

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Research Hypothesis Result: Objectives

Hypothesis

Test done

Values (β and

Inference

p-Value) H0= Willingness to adopt RVM is not affected by

PLS SEM

β = 0.185

H0

awareness

p-value = 0.231

hence

H1= Willingness to adopt RVM is affected by

p-value > 0.01

has no effect on

Awareness

accepted, Awareness

Willingness

H0= Willingness to use RVM is not influenced by

PLS SEM

β = 0.452

H0 is rejected hence

convenience

p-value = 0.000

Convenience

H1= Willingness to use RVM is influenced by

p-value < 0.01

influences

convenience RO3

is

willingness

H0= Willingness to use RVM is not affected by

PLS SEM

β = 0.309

H0 is rejected hence

the incentives received

p-value = 0.000

incentives

H1= Willingness to use RVM is affected by the

p-value < 0.01

influences

incentives received

willingness

H0= Willingness to adopt RVM is not influenced

PLS SEM

β = 0.606

H0 is rejected hence

by the user’s level of involvement

p-value = 0.000

Involvement

H1= Willingness to adopt RVM is influenced by

p-value < 0.01

influences

the user’s level of involvement

willingness

Table 12: Research Hypothesis Result

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

35

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Full Model Summary The full-scale study was based on the data collected and analysed from the pilot study. The study evaluated the responses of 247 individuals. The descriptive statistics of these responses were divided into age, gender, occupation and marital status. The data collected from the respondents was then analysed using Structural Equation Modelling through PLS. A reliability test was conducted which showed a Cronbach’s Alpha of 0.820 which suggested that the internal consistency of the items was relatively high. A test for factor loadings was conducted and most of the measurements showed the loadings to be more than 0.7, which meant they were acceptable. Although some loadings were below 0.7, they ruled as acceptable since the study is relatively new. The measurement model displayed the β values for the variables and it was observed that “willingness” was least dependent on “awareness”. Through the process of bootstrapping, the p-Values indicated that awareness had a value of 0.231. This inferred that H0 is accepted, hence Awareness has no effect on Willingness. The R2 values inferred that convenience and involvement were major factors that impacted willingness.

Multi Group Analysis The multi-group analysis allows to test if pre-defined data groups have significant differences in their group-specific parameter estimates (e.g., outer weights, outer loadings and path coefficients). SmartPLS provides outcomes of three different approaches that are based on bootstrapping results from every group. For the purpose of understanding the samples better, they were grouped based on different demographics such as Age, gender, occupation, and marital status.

Age: Variables

p-Values (28 years and below)

p-Values (29 years and above)

Willingness -> Awareness

0.000

0.324

Willingness -> Convenience

0.000

0.000

Willingness -> Incentives

0.190

0.209

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

36

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Willingness -> Involvement

0.000

0.000

Table 13: MGA for Age

The above test shows that citizens of the age 28 and below are more willing to use an RVM if they have awareness, is convenient and they are involved in helping. In the case of age groups 29 and above, their willingness to uses an RVM is based on convenience and involvement, while incentives and awareness play no role in their willingness.

Gender: Variables

p-Values (Male)

p-Values (Female)

Willingness -> Awareness

0.003

0.073

Willingness -> Convenience

0.000

0.000

Willingness -> Incentives

0.000

0.087

Willingness -> Involvement

0.000

0.000

Table 14: MGA for Gender

The test reveals that males are willing to use an RVM when it is convenient, are involved and receive incentives. For females, convenience and involvement influence their willingness to use an RVM.

Occupation: For simplicity, with the respondents of the highest number being students, they have been grouped as students and Others. Variables

p-Values (Student)

p-Values (Others)

Willingness -> Awareness

0.000

0.200

Willingness -> Convenience

0.000

0.000

Willingness -> Incentives

0.000

0.049

Willingness -> Involvement

0.000

0.000

Table 15: MGA for Occupation

The results show that students are willing to use an RVM when they have awareness of such a machine, it is convenient, they receive incentives and are involved in encouraging a cleaner environment. In the case of others, respondents’ willingness is affected only by

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

37

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

the convenience and involvement. While awareness has no influence on the willingness and incentives have barely any influence on the willingness. Marital Status: The respondents were classified into married and unmarried groups. Variables

p-Values (Married)

p-Values (Unmarried)

Willingness -> Awareness

0.282

0.000

Willingness -> Convenience

0.000

0.000

Willingness -> Incentives

0.299

0.000

Willingness -> Involvement

0.025

0.000

Table 16: MGA for Marital status

The result display that for married individuals, the only thing that affects their willingness to use RVM is convenience. It is the only factor that has a significant relationship with willingness. Meanwhile, awareness, incentives an involvement barely has a relation to the willingness. For unmarried individuals, willingness is influenced by all the factorsawareness, convenience, incentives an involvement.

Multi Group Analysis Summary For the purpose of understanding the samples better, they were group according to different demographics. A multi-group analysis was conducted for each demographic. The results showed that convenience was the only factor that had a significant relationship with willingness, followed by involvement. Whereas, awareness and incentives had barely any significant relationship with willingness. The results showed a contrast in results when the demographics were measured individually. It can be used as a base for further studies to measure the samples in detail, in the future. Therefore, it can be noted that that the variables that affect willingness the most from all the above responses is convenience and involvement. The convenience of an RVM whether it be the distance it is located at from the place of consumption or the simplicity of use plays a huge role in people voluntary using the machine. The involvement of people

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

38

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

in helping promote a better, cleaner a toxic-free environment also plays a major role in the willingness to use an RVM as well. However, surprisingly incentives are not a huge factor that encourages people to use RVMs. Monetary benefit does not affect the RVMs usage significantly. Similarly, awareness does not matter to people, if given a circumstance where all the other variable is met expect awareness, there is a chance that majority of the citizens will use an RVM. The next chapter explores the outcomes in form of recommendations for the objectives.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

39

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

4. Outcomes This chapter provides all the outcomes and suggestions for the tests conducted in the previous chapter-3 problem-solving •

Objective RO1: To understand and explore the extent of usage of Reverse Vending Machines by citizens

Objectives

Conclusion

To understand and explore the extent

There was very less awareness about the

of usage of Reverse Vending Machines

Reverse Vending Machines and the machines

by citizens

were not effective Table 17: Objective 1 Conclusion

The field study conducted by visiting the operational areas of RVM’s in Bangalore, gave insight on the current situations of RVM’s in the city. It was observed in the field study that the lack of awareness and involvement of the citizens, retailers and Government relating to the machine. This provided the motivation for conducting a full-scale study for this paper, and a base for preparing the questionnaire for the survey. •

Objective RO2: To analyse the factors which influence the usage of Reverse Vending Machines for retailers

Objectives

Conclusion

To analyse the factors that influence

Through interviews conducted, it was found

the usage of RVM by retailers

that retailers are unwilling to adopt the Reverse Vending Machine if they do not see any viable monetary returns Table 18: Objective 2 Conclusion

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

40

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

The interview conducted for retailers revealed that retailers were not willing to adopt an RVM in their shops. Therefore, the following can be recommended as a solution to this problem: o In the case of smaller shops, RVM can be purchased collectively by multiple shops investing in on machine. This reduced the overall cost burden to the retailers. o The retailers can be attracted by providing free installation and periodical regular maintenance on the machines by the Government. o Retailers can use the RVMs to advertise their own shops. This can help them increase the revenue spent on purchasing an RVM. o With the installation of an RVM, a retailer can tie up with big companies to provide coupons and discounts. This is beneficial to both the retailer and the company that they’ve tied up with. o

An RVM is a low maintenance investment, since each machine can go somewhere between 3 days to a whole week without being cleaned out.

o The government should fund the installation of the RVM’s and put a mandate upon the usage of the same. •

Objective RO3: To analyse the factors which influence the usage of Reverse Vending Machines for citizens

Objectives

Conclusion

To analyse the factors that influence

The tests conducted show that convenience

the usage of RVM by citizens

and involvement were the 2 primary variables that affect a person’s willingness to use a Reverse Vending Machine Table 19: Objective 3 Conclusion

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

41

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

The analysis done shows that citizens are more willing to use an RVM if it is convenient and they get a sense of involvement. Therefore, the following can be recommended to increase the attractiveness of using an RMV: o Willingness: To improve the willingness the RMV can be advertised through posters and online advertisement to attract more users. o Incentives i.

In the current scenario in Bangalore an RVM just provides PayTM money as a reward, to further increase the awareness and willingness to use the machine, a variety of incentives can be provided, and the user can be given the chance to choose the reward of their choice.

ii.

In the long run, tax deductions can also be provided or recycling.

o Convenience i.

To improve convenience of an RVM it can be installed every few kilometres in residential areas

ii.

Videos explaining the steps and procedure on using the RVM needs to be played on the display screens

iii.

To further increase convenience, the phone number option can be scrapped to directly provide a reward.

o Awareness i.

Awareness can be increased by implementing a policy, where recycling is made compulsory to all.

ii.

Awareness drives can be conducted by the government to let citizens know about RVMs.

o Involvement i.

To promote recycling, special seminars can be conducted.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

42

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

ii.

Special activity drives can be conducted, where people are entertained while learning the best ways to recycle.

•

Objective RO4: To recommend the methods or practices which will improve the usage of Reverse Vending Machines

Objectives

Conclusion

To recommend the methods or

Recommendations and an incentive model are

practices which will improve the usage

provided based on the survey results and the

of RVM’s

tests conducted Table 20: Objective 4 Conclusion

Incentive model of Reverse Vending Machine An incentive model is a systematic and conceptual scheme that helps promote specific actions for people during a specific period. The model includes the product which is of service or value, the actions that needs to be promoted, and the people it is targeted towards. The untreated waste is being increased at an alarming phase, which in turn creates significant demand for various modern recycling solutions such as bottle crushers / reverse vending machines. Reverse vending machines (RVMs) have been used to dispose and recollect recyclable products more effectively. And the machines are also used for cost effective waste disposal and recycling. Reverse Vending Machine is installed with an automated system used to collect, crush and sort used bottles / aluminium tins and dispenses cash incentive in return based on the size of the bottle. The Reverse Vending Machine encourages the public to recycle the bottles and tins, it reduces landfills and reduces the greenhouse emission to the atmosphere.

There are 4 major models for Reverse Vending Machine are, 1. Sales model In this model the Reverse Vending Machine is directly purchased by the retailers from the manufacturers. The availability of the Reverse Vending Machine might increase the Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

43

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

sales of water bottles and beverages for the retailers and the sales revenue can be generated easily, as the machine provides different types of coupons when the bottle or a tin is dumped, and it tempts the customers to use. 2. Leasing model Reverse Vending machines can be leased and are actually cost effective in some instances, as the on-going recycling and waste collection processes are so inefficient. In this model the manufacturer holds the ownership of the installed Reverse Vending Machine which minimises the bulk cost of installation to the retailers and this model helps the retailers to invest their remaining capital into other profit generating activities instead of Purchasing the Reverse Vending Machine. 3. Advertising Model The touch screen of the machine turns the system into a marketing touch point which can be administered through a remote. Consumers can redeem the voucher or donate their cash back voucher to a local charity, and retailers can promote their new upcoming products or promote their suppliers’ brands and generate revenue through it and retailers can also print on the redeemable vouchers for advertising their outlet. 4. Commission/ fund-based model Commission based model helps the retailer to earn commission from the number of bottles dumped into the machine when the machine is taken for lease by the retailer, and if the machine is bought on full settlement by the retailers, they can generate their revenue by forming tie-ups with their suppliers through promoting their company and products on the Reverse Vending Machine installed at their premises. ➢ Recommendation plans for Retailers As stated in RO4 ‘To recommend the method or practice which improves the usage of RVM by retailers’ if the RVM is procured by a CSR initiative by the sponsor the retailer need not invest on the machine or bear the maintenance, and service cost of the RVM

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

44

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

and the retailer also receives 5% in the net revenue generated by the sale of the crushed bottles which were collected in the Reverse Vending Machine. Flexibility- Maintenance of the Reverse Vending Machine is very much flexible as the sponsors will provide the machine, periodic maintenance service will be provided by the sponsor and the retailers will also receive monthly rent for the space given in their outlets. Less Involvement-The Reverse vending machine doesn’t require any involvement from the retailer’s side to look after the machine. The retailers can just install the machine and can look after it once in two or three days to refill the vouchers or to sell the bottles collected to the recycling centre. Revenue –Retailers can generate revenue without any investment from their side, they can form tie-ups with their suppliers and generate revenue through promoting their brands and advertising their products on the Reverse Vending Machine.

Practical Implications For retailers: •

CSR initiatives

1. RVM can be provided as a part of CSR initiative to retailers. The company providing the RVM can provide regular maintenance. 2. The RVM can display advertisements of their company, promoting their own products. This will overall be beneficial to the company providing the RVM. 3. To promote the installation and usage of RVM, retailers can be provided a small percentage of the rewards given to customers. •

Government Policies

1. In India, the Solid Waste Management Rules, 2016 notified informs about the segregation of waste based on their properties. However, although recyclable

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

45

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

waste is segregated, they are handed over to the informal sector. This sector ha their own ways of recyclable, which aren’t all scientific and sustainable. 2. There are a lack of policies specifically catering to recycling plastics. With the rapid growth of plastic use, such a policy is very much need. Such a policy can be adopted by taking an example of the policy in the US, the Recycling Refund Policy, also known as the Bottle bill. Each state in the US has a different bottle bill that caters to containers deposit and recycling rules. 3. There is a need for such a policy in India. As a start, a recycling initiative can be implemented as part of the Swachh Bharath Act. 4. A retailer, if he has purchased the RVM with his own money, can sell the plastic remnants that were crushed in the machines to the industries that require them at prices that can help them break even with the machine. For Users: •

Attractive Rewards

Users can be given a reward card for a small price, like the ones provided in grocery and shopping stores. Every time the customer recycles, they can be given points, which can be redeemed at the end, for a reward that is more than the Rs.5 that is currently offered. Users can also be given a lucky draw coupon where they have a chance to win attractive prices. •

As an initiative, to a customer who recycles more than a specified number of bottles can be given a paper medal of appreciation. This can encourage a user to recycle more.

•

After a certain amount of usage, a user can also be given deductions in income tax or a deduction in the general Swachh Bharath Cess.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

46

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Limitations of the study There are not many studies addressing adoption of Reverse Vending Machines. Because of this reason, there were numerous limitations to the study. 1. This study, being relatively new to research, could not be based on previous parameters. 2. The study was conducted in the Bangalore North region only. Results can drastically differ in other regions. 3. Time was a major constraint for this research. The study was conducted over a period of 29 days and has a sample size of only 247 respondents. The small response size can only provide limited data to the study.

Future Scope of the study 1. The current study involves research upon the adoption of the RVM’s in North Bengaluru. However, with further research on the government policies of other states, the adoption of RVMs for the whole country can be studied. This can also be used as a basis for significant changes in the government policies for waste management. 2. Incentive model can be used as a reference for further implementation in various other niche products that contribute towards a social cause. 3. The same study can be integrated with modified variables to study the willingness of the organizations to make the adoption of the RVM’s part of their Corporate Social Responsibility. 4. Instead of using willingness of the users as the dependent variable, convenience or involvement can be used for different projections or even more suitable solutions for the society.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

47

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

5. References 1. Abas, Muhamad Azahar and Wee, Seow, Municipal Solid Waste Management in Malaysia: An Insight Towards Sustainability (May 31, 2014). Available at SSRN: https://ssrn.com/abstract=2714755 or http://dx.doi.org/10.2139/ssrn.2714755 2. Al-Salem, S., Lettieri, P. and Baeyens, J. (2009). Recycling and recovery routes of plastic solid waste (PSW): A review. Waste Management, 29(10), pp.2625-2643. 3. Bezerra, J., Hirata, C. and Randall, D. (2014). A Conceptual Framework to Define Incentive Mechanisms for Virtual Communities. [online] Pdfs.semanticscholar.org. Available at: https://pdfs.semanticscholar.org/fb99/ef592042581169b3eeb8ca83262babf79c 84.pdf [Accessed 29 Oct. 2018]. 4. Clulow, V. and Reimers, V. (2009). How do consumers define retail centre convenience?. [online] Researchbank.rmit.edu.au. Available at: http://researchbank.rmit.edu.au/eserv/rmit:22798/n2006043209.pdf [Accessed 29 Oct. 2018]. 5. Gafoor, A. (2012). Considerations in the Measurement of Awareness. [online] Eric Institute of Education Sciences. Available at: https://files.eric.ed.gov/fulltext/ED545374.pdf [Accessed 29 Oct. 2018]. 6. Guerrero, L., Maas, G. and Hogland, W. (2013). Solid waste management challenges for cities in developing countries. Waste Management, 33(1), pp.220232. 7. Gupta, S., Mohan, K., Prasad, R., Gupta, S. and Kansal, A. (1998). Solid waste management in India: options and opportunities. Resources, Conservation and Recycling, 24(2), pp.137-154. 8. Hoornweg, Daniel; Bhada-Tata, Perinaz. 2012. What a Waste : A Global Review of Solid Waste Management. Urban development series;knowledge papers no. 15. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/17388 License: CC BY 3.0 IGO. 9. Hopewell, J., Dvorak, R. and Kosior, E. (2009). Plastics recycling: challenges and opportunities. Philosophical Transactions of the Royal Society B: Biological Sciences, 364(1526), pp.2115-2126. 10. Ismail, Z. and AL-Hashmi, E. (2008). Use of waste plastic in concrete mixture as aggregate replacement. Waste Management, 28(11), pp.2041-2047.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

48

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

11. Kuieck, Thomas J. (1980) A Comparison of Three Operational Definitions of Job Satisfaction. [online] Dissertations. 2631. Available at: http://scholarworks.wmich.edu/dissertations/2631 [Accessed 29 Oct. 2018]. 12. Mwanza, B. and Mbohwa, C. (2017). Drivers to Sustainable Plastic Solid Waste Recycling: A Review. Procedia Manufacturing, 8, pp.649-656. 13. Rochman, C., Browne, M., Halpern, B., Hentschel, B., Hoh, E., Karapanagioti, H., Rios-Mendoza, L., Takada, H., Teh, S. and Thompson, R. (2013). Policy: Classify plastic waste as hazardous. Nature, 494(7436), pp.169-171. 14. Sharholy, M., Ahmad, K., Mahmood, G. and Trivedi, R. (2008). Municipal solid waste management in Indian cities – A review. Waste Management, 28(2), pp.459467. 15. Simelane, T. and Mohee, R. (2015). Future directions of municipal solid waste management in Africa. Pretoria, South Africa: Africa Institute of South Africa. 16. Siteresources.worldbank.org. (2018). [online] Available at: http://siteresources.worldbank.org/EXTGLOREGPARPROG/Resources/GRPPguide lines.pdf [Accessed 29 Oct. 2018]. 17. Verma, R., Vinoda, K., Papireddy, M. and Gowda, A. (2016). Toxic Pollutants from Plastic Waste- A Review. Procedia Environmental Sciences, 35, pp.701-708. 18. Zainab, A. and Baig, E. (2011). Defining Leadership Readiness. [online] Britishjournals.files.wordpress.com. Available at: https://britishjournals.files.wordpress.com/2011/07/9_leadershipreadiness_amb reen_jmefissue1vol1.pdf [Accessed 29 Oct. 2018].

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

49

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

6. Team Experience "Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results." – Andrew Carnegie The team was formed with a mutual interest to help improve the state of the waste management in our city. Plastic is a widely used substance but is also destructive to nature, this is a well-known fact. However, even with this knowledge it is a widely popular everyday use material, commonly in the form of bottles, but rarely recycled. Therefore, we as a team wanted to discover a way where people will be more inclined towards recycling rather than throwing plastic away. This search lead to us learning about the reverse vending machine, that recycles used water bottles while also given a monetary reward to the user. We visited the RVMs that are in the north of Bangalore in three different railways stations and found that it was not a well-known installation. Hence, we surveyed citizens and interviewed retailers to understand the extent to which people are aware of such a machine and its functions and what would drive them to use such a machine. We got interesting results and understood the challenges that are hindering the exposure of a machine that can help curb the littering. It was a wonderful experience to not only learn about a way in which plastics can be recycled efficiently, but also the factors that drives individuals to actively recycle their plastic waste.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

50

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

7. Appendix Appendix-A

➢ Literature review Sl. No .

Authors/ Research year of focus Publicati on

1

Bupe

G Drivers

Methods, Methodol ogy/Tools used to Questionna

Mwanza,

Sustainable

Charles

Plastic

Mbohwa,

Waste Recycling

Conclusio Limitation Scholar’s ns drawn s of study comment by the on the Authors research

Research Findings

The drivers of Proper and The

ires, review sustainable

Sustainable

2016.

been plastics

identified

conducted

recycling of didn’t

Solid of literature development have

study The

completely

as, provides

study

can

be

further explored by

analyze the conducting a

public

opportuniti

awareness,

es to reduce identified

education,

oil

producer

(since

responsibility,

plastic can reviews and identified

consumer

be

comparative

has

an

responsibility,

converted

studies.

impact

on

place.

study

to

understand

usage and mostly how

and rules and into regulation

drivers

each

focused on driver

oil),

the

in carbon

sustainable

dioxide

development

emissions.

of recycling methods.

2

Jefferson

The

Hopewell,

and

Robert

opportunities of

Dvorak,

challenges Empirical study

The

different The authors The study is The

study

ways of waste conclude

more of an comments

management

observation

that

on

the

and alternative recycling is al study and challenges

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

51

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Edward

plastics

ways

Kosior,

recycling

manage waste that is the perform any opportunitie

2009.

to a

strategy does

not and

in Europe. A end-of-life

primary

system

data study. improving

for waste

recycling

manageme

plastic

was nt

s

for

Therefore is plastic

for not

recycling,

identified-

plastics. It particularly

however

Collection,

is

doesn’t give

sorting,

reliable

Size economical

reduction

a

ly feasible

viable

solution

to

(conversion to as well as

these

flakes). Further environmen

problems

the challenges tally safe.

and

and

challenges.

opportunities

The

to

just suggests

improve

study

plastic

a change in

recycling was

policies.

delved into. 3

S.M

Al- Recycling

Salem, P. the

and Review

recovery

Various

The

methods

and different

Lattieri, J. routes of plastic

technologies

Baeyens,

have

2009.

solid waste

There is no The

methods of indication

been waste

about

listed for the manageme management of

definitive

nt

study

provides

a

view on the

the different

efficiency of ways

in

have the methods which plastic

plastic greatly

that

waste. One of contributed

have waste can be

been listed disposed,

the main focus to image of in the study

however the

of the paper is an

recycling

eco-

chemical

friendly

methods are

recycling

waste

unclear.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

52

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

where plastic is manageme converted into nt an plastic molecules that waste is used produce manageme new

nt.

Also,

petrochemicals

recycling of

and plastics.

said waste can benefit the current scenario of plastic pollution.

4

Zainab Z. The Ismail,

use

of Experiment Different

plastic waste in ation

Enas

A. concrete mixture

AL-

as a replacement

Different

The

study The study is

experiments

strengths

shows

were

and density the concrete experiments

conducted and of concrete made

Hashmi,

different

2008.

methods

that based on the

with conducted

which was plastic and by the author of fixed with other

using

materials mix plastics

substances

were

were

does

identified.

measured

have

different

not variable

test out the

and it was enough identified

to

strength and

strength due density

of

that plastic to lack of the concrete mixed

hydrophobi

when one of

concrete

c materials, the

was easy to this is not components work with.

mentioned as challenge.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

in

the

a concrete plastic.

53

is

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

5

RinkuVer ma,

Toxic Pollutants Review

K.S from

Vinoda,

plastic Study

Waste

It

was Toxic

identified

Although

in substances

The

study

the authors focuses

on

the study that released

talk

M

improper

the

aspects

of

papireddy

disposal

disadvantag

plastic.

It

,

plastic waste in plastics

A.N.S

from of burning

way

about the harmful

es

of pose

and delves

a effects

into

Gowda,

the

of the

toxic

2016.

incineration is threat to the open

substances it

harmful to the surroundin

combustion

contains and

environment.

g

and

its

Incineration

environmen

incineration

effects.

bad A

leads to release t, from the . A reliable suggestion is of toxic gases vegetation that

is

very grown

alternative

made

on

to in the form making

a

harmful.

the humans of recycling policy which

Therefore,

who

is

there is a need consume. for

a

not bans the use

proposed.

better Therefore,

way disposal.

of

the

harmful

of the authors

substances

suggest for

used in the

a policy in

preparation

place to get

of plastics.

rid of the chemical exposure caused

by

plastics

in

India. 6

K

Abdul Considerations

Gafoor, 2012.

in

Questionna

the ires

Framework

Measureme

of steps for nt

The

of methodolog

awareness

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

The

y

methodolog

suggests y is suitable

54

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

measurement of

measuring

it does not ambiguity

awareness

awareness

absolve

since

for

this project since

them of the measureme responsibili

our

it helps in

nt has the measuring

ty to follow object

of how

aware

the

what

each person

fundamenta

respondents

was.

l steps in know

as

the

well as what

constructio

they do not

n

of

a know.

measure 7

Juliana De A

conceptual Analysis of The

MeloBeze

framework

Hirata,

virtual

assessment

Dave

communities

of

study The study Given the The

given

key facilitates the guides the diversity of study defines rra, Celso define incentive questions incentive definition of analysis of variables Massaki mechanisms for and mechanisms

Randall, 2014.

to the

the

Conceptual framework to define it.

online

the

and

incentive

incentive

particularit

mechanisms.

mechanis

ies

ms’

define

suitability

virtual

with

communiti

that

online, which can be drawn parallels with, for the real

world

respect to es and their incentive context contexts, it mechanisms adherence,

is

implement

challenge

ation

to identify

effort,

and define

maintenan

incentives

ce

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

a

effort, adequate to

55

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

and

a

given

possibility

community

of

.

secondary effects. 8

Amreen

Defining

By

Zainanb,

Leadership

defining it focuses on the not

EbadBai

Readiness

for

concept

managem

leadership

ent

readiness and dimension

reference

its

s to ability sectional

variables,

and

significance

and

and make it

teaching

in

willingnes

g, 2011.

as

This

paper There are The paper The only is

of aspects, but

too definitions

conceptual, given

also does

are

not very apt for

cover cross the

variables.

easy

an contemporary s.

to

form

academic

management

questions

topic.

and

based

leadership

those

development

variables.

on

process. 9

Thomas

A comparison Questionn

The

J.Kuieck,

of

conducted by on of the differing

s have not

1980.

operational

the

reached

definition

three aires

of

job satisfaction

survey Examinati

The

Researcher

author NSQ and a and

reveal

that review of conflicting

teachers

are related

views

satisfied with literature their jobs.

led

consensus

of about what

teachers'

the job

satisfies and

investigato satisfaction dissatisfies r

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

to presented

teachers

56

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

question

in the job with

the

satisfaction work.

their

efficacy of literature. the instrument in measuring need deficiencie s or job satisfactio n. 10

Clulow, V

“How

do Subseque

and consumers

Reimers,

define

2018.

center

nt

retail empirical

convenience?”

analysis.

Study

Convenien There

is The failure

provides

ce

of of existing

strong

as a less- existing

support

serves lack

for than-

definitions

definitions, to

the

salient

hence

incorporate

alternative

determina

difficult to so many of

definition,

nt of retail form base these

with

centre

for

attributes is

respondents

patronage.

findings.

a

likely

indicating

explanation

that 14 of the

behind the

test attributes

counter-

serve

intuitive

as

convenience

proposition.

attributes. Table 21: Literature Review Table

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

57

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

APPENDIX – B QUESTIONNAIRE TO RETAILERS Reverse Vending Machine is an appliance that takes in plastic waste and gives out cashback or coupons. The machine is mandatory in countries where the laws for recycling plastic is strict and the scope of usage for the machine is more. The following survey is being taken to test the adoption of Reverse Vending Machines in our respective locality. SCALE FOR QUESTIONNAIRE 1 – Strongly Disagree 2 – Disagree 3 – Neutral 4 – Agree 5–Strongly Agree

AWARENESS Questions

1

2

3

4

5

Q1. I am aware of the materials that can be recycled. Q2. I know what a Reverse Vending Machine is. Q3. In my area, people/welfare associations have taken initiatives to promote Green Environment. Q4. People have taken initiatives to promote Green Environment in my area. Q5. I have seen ads and hoardings that promote Reverse Vending Machine. Table 22: Awareness Questions for Retailers

WILLINGNESS

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

58

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Questions Q1. I am prepared for the costs incurred for adopting a Reverse Vending Machine. Q2. I will encourage use of Reverse Vending Machines even if it is not made mandatory by Government. Q3. I will use Reverse Vending Machine if the government provides subsidy. Q4. I am willing to provide freebies for people who use the Reverse Vending Machine. Q5. I am willing to contribute towards the installation charges of the Reverse Vending Machine.

1

2

3

4

5

Table 23: Willingness questions for retailers

COST EFFECTIVENESS Questions

1

2

3

4

5

Q1. My shop produces enough plastic bottle waste to sustain the profit margin. Q2. I can afford a tie up with retailers/suppliers/coupon providers to improve usage of Reverse Vending Machine. Q3. I can afford to install a Reverse Vending Machine exclusively for my store. Q4. The sales of Plastic Bottles would increase if Reverse Vending Machines are implemented. Table 24: Cost Effectiveness questions for retailers

CONVENIENCE Questions Q1. I have enough space for installation of the Reverse Vending Machine. Q2. I am looking for potential tie ups with companies for advertisement. Q3. A Reverse Vending Machine would reduce litter in and around my shop. Q4. I don’t mind the Reverse Vending Machine being used after working hours if it is installed in my premises. Q5. It is easy to use Reverse Vending Machines so my customers can use it without help. Q6. The distributor/manufacturer provides hassle free maintenance every month.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

1

2

3

4

59

5

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Q7. The collection of crushed bottle is done every day by tie-ups with waste management organizations (like e-Parisaraa) Table 25: Convenience questions for retailers

INVOLVEMENT Questions Q1. I would promote Reverse Vending Machines through friends/welfare associations/community centres. Q2. I have contributed in other activities to promote cleanliness. Q3. I educate my child/children about different ways of disposing plastics. Q4. Lumps of garbage on the sides of the roads bother me. Q5. I would encourage other retailers in my area to adopt Reverse Vending Machines/Smart bins/Waste Disposal Machines. Q6. Reverse Vending Machines will become a part of my cleanliness drives in my home and locality.

1

2

3

4

5

Table 26: Involvement questions for retailers

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

60

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Questionnaire to users The responses for the following questionnaire are measured using the Likert Scale. Reverse Vending Machine is an appliance that takes in plastic waste and gives out cashback or coupons. The machine is mandatory in countries where the laws for recycling plastic is strict and the scope of usage for the machine is more. The following survey is being taken to test the adoption of Reverse Vending Machines in your respective locality. Demographics Name – _____________________ Age – o Below 18 o 19 – 28 o 29 – 38 o 39 – 48 o 49 – 60 o 61 and above Gender o Male o Female o Other Occupation o Student o Employed o Unemployed o Business o Retired Marital status o Married o Unmarried

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

61

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

o Divorced Awareness SCALE FOR THE FOLLOWING QUESTIONS o 1 – Not at all aware o 2 – Slightly aware o 3 – Neutral o 4 – Very aware o 5 – Extremely aware Questions Q1. How aware are you of what methods your society uses to dispose recyclable waste? Q2. How aware are you of what a Reverse Vending Machine/Smart bin/Plastic Disposal Machine does? Q3. How aware are you of advertisements on hoardings, television or newspaper on Reverse Vending Machines? Q4. How aware are you of the initiatives have taken to promote Reverse Vending Machines in your area? Q5. How aware are you that Reverse Vending Machines are present in railway stations in Bangalore? Q1. How aware are you of what methods your society uses to dispose recyclable waste? Q2. How aware are you of what a Reverse Vending Machine/Smart bin/Plastic Disposal Machine does?

1

2

3

4

Table 27: Awareness questions for users

Willingness Assuming that the Reverse Vending Machines are adopted by the society, please answer the following questions. SCALE FOR THE FOLLOWING QUESTIONS o 1 – Definitely not

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

62

5

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

o 2 – Probably not o 3 – Neutral o 4 – Probably o 5 – Definitely Questions Q1. I will always dispose plastic bottles in the Reverse Vending Machine. Q2. I would dispose plastic bottles in the Reverse Vending Machine even if it is located far away. Q3. I will contribute towards the installation of the Reverse Vending Machine in my locality/organization. Q4. I will ensure that plastic waste generated by my family is disposed through Reverse Vending Machines. Q5. I will learn/help others learn to use the Reverse Vending Machine.

1

2

3

4

5

1

2

3

4

5

Table 28: Willingness questions for users

Incentives SCALE FOR THE FOLLOWING QUESTIONS o 1 – Strongly Disagree o 2 – Disagree o 3 – Neutral o 4 – Agree o 5 – Strongly Agree

Questions Q1. I don't need rewards to keep my surroundings clean. Q2. I am more interested in cashback (hard cash/ e-wallet) than coupons. Q3. I feel it is important to have rewards/incentives to attract citizens to use Reverse Vending Machine. Q4. I feel that rewards like eatables will attract citizens to use Reverse Vending Machines. Q5. The rewards should be based on where the machine is located.

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

63

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Table 29: Incentives questions for users

Convenience SCALE FOR THE FOLLOWING QUESTIONS o 1 – Strongly Disagree o 2 – Disagree o 3 – Neutral o 4 – Agree o 5 – Strongly Agree Questions Q1. People without phones should also be able to use Reverse Vending Machines. Q2. Reverse Vending Machine in my organization is a convenient place for plastic disposal. Q3. Children and senior citizens should be able to use the Reverse Vending Machines without help. Q4. There should be a tutorial video/instructions to guide citizens on how to use Reverse Vending Machines. Q5. There should be an online feedback form in case of inconveniences.

1

2

3

4

Table 30: Convenience questions for users

Involvement Involvement refers to your degree of participation in the community or society. SCALE FOR THE FOLLOWING QUESTIONS o 1 – Strongly Disagree o 2 – Disagree o 3 – Neutral o 4 – Agree o 5 – Strongly Agree

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

64

5

M.S. Ramaiah University of Applied Sciences – Faculty of Management and Commerce (FMC)

Questions Q1. I help in disposing waste, even if it is not generated by me. Q2. I educate my family/friends/colleagues about recycling waste. Q3. I have contributed to campaigns that promote cleanliness. Q4. I would promote Reverse Vending Machines through friends/welfare associations/community. Q5. I want retailers in my area to adopt Reverse Vending Machines/Smart bins/Waste Disposal Machines.

1

2

3

4

Table 31: Involvement questions for users

Study on challenges faced for the adoption of Reverse Vending Machines in Bangalore-North

65

5