An analysis of consumer reactions to green strategies
| Published date | 12 April 2013 |
| Date | 12 April 2013 |
| Pages | 118-128 |
| DOI | https://doi.org/10.1108/10610421311320997 |
| Author | Norm Borin,Joan Lindsey‐Mullikin,R. Krishnan |
| Subject Matter | Marketing |
An analysis of consumer reactions to green
strategies
Norm Borin and Joan Lindsey-Mullikin
Department of Marketing, California Polytechnic State University, San Luis Obispo, California, USA, and
R. Krishnan
Department of Marketing, University of Miami, Coral Gables, Florida, USA
Abstract
Purpose – The purpose of this paper is to investigate the impact of three green strategies on key consumer metrics. More specifically, it aims to
measure consumers’ purchase intentions of new green, recycled/refurbished products, green company processes and a non-green product/process.
Design/methodology/approach – Between subjects 2 £2£4 experimental design with two levels of price (high and low), two levels of brand
name (known and unknown) and four levels of green strategies.
Findings – Purchase intentions for green product and process strategies are significantly higher than non-green approaches. However,
post-hoc
analysis shows no significant advantage of one green strategy over another. Price and brand name do not have significant interactive effects with green
strategies.
Practical implications – Although it is essential that companies develop green strategies for the eco consumer it is not important what specific
strategy is selected i.e. going green is the key. Also, despite the continued growth in the demand for green products, price is still the most important
driver for consumer purchase – even for the eco consumer. Lastly, despite continued improvements in functional performance, green products do not
have a significant advantage in perceived quality. Companies cannot focus completely on the green nature of their products or processes.
Social implications – Consumers believe that purchasing green products or products from green companies may be a way they can help the
environmental problems society faces today. This project provides guidance to companies pursuing this market by evaluating different product and
process approaches to this growing social trend.
Originality/value – This project is one of the first to focus on the consumer impact of different corporate approaches to the green market.
Keywords Green marketing, Green product, Sustainable, Green operations, Environmental, Ecological, Environmental management
Paper type Research paper
An executive summary for managers and executive
readers can be found at the end of this article.
Introduction
Sustainability has become the mantra for companies seeking
to create a competitive advantage in the global marketplace.
Recent interviews with over 750 CEOs from around the world
revealed that 93 percent feel that implementing sustainability
programs that mesh with their core businesses would be
critical to the future success of those businesses (UN Global
Compact, 2010). These programs range from developing
totally new green products, developing recycled, or
refurbished products to engaging in greener processes. The
primary sustainable business strategies pursued by companies
can be grouped into two broad categories (Esty and Winston,
2006):
1Managing downside risk. These strategies are designed to
ensure long-term resource availability, and are intended to
enhance productivity, reduce environmental and
regulatory costs, and lower supply chain costs. Many of
these strategies have been relatively easy to adopt
(e.g. changing manufacturing [methods] or distribution
practices in order to reduce waste). However, some of
these strategies require significant upfront investment
(e.g. Frito-Lay’s zero emission potato chip plant in
Arizona, building a LEED certified manufacturing plant
– www.fritolay.com/our-planet/working-toward-minimal-
impact.html). This emphasis on productivity and cost in
the application of sustainability strategies is popularly
referred to as eco-efficiency.
2Building upside potential. This group of strategies addresses
the potential for product expansion as part of
sustainability efforts. Recent studies indicate that 93
percent of consumers say they participate in effor ts to
sustain the environment (Hartman Group, 2007), while
75 percent say it is important or somewhat important that
they buy from environmentally responsible companies
(WPP, 2010). Companies have responded to the shift in
consumer behavior by focusing on the increasing
environmental needs of consumers. This is accomplished
through development of breakthrough products (e.g. the
Toyota Prius hybrid auto), adding green components to
existing products, reusing or recycling materials,
improving corporate reputation through green brands, or
other environmentally focused activities (e.g. reducing
energy consumption, Intel changing the organizational
culture by incorporating environmental metrics as part of
employee compensation).
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1061-0421.htm
Journal of Product & Brand Management
22/2 (2013) 118–128
qEmerald Group Publishing Limited [ISSN 1061-0421]
[DOI 10.1108/10610421311320997]
118
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