Beruflich Dokumente
Kultur Dokumente
AVOIDING
GREEN MARKETING
MYOPI
WAYS TO IMPROVE CONSUMER APPEAL
FOR ENVIRONMENTALLY PREFERABLE PRODUCTS
by Jacquelyn A. Ottman,
Edwin R. Stafford,
and Cathy L. Hart
either succeeded or failed in the marketplace over the past decade, some important lessons emerge for crafting effective
green marketing and product strategies.'"
Based on the evidence, successful green
products are able to appeal to mainstream
consumers or lucrative market niche.s and
frequently command price premiums by
offering "non-green" consumer value
(such as convenience and performance).
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ENVIRONMENT
VOLUME 48 NUMBER 5
JUNE 2006
the growing demand, with buyers enduring long waits and paying thousands
above the car's sticker price.-" Consequently, other carmakers have scrambled
to launch their own hybrids.-' However,
despite higher gas prices, analysts assert
that it can take 5 to 20 years for lower
gas expenses to offset many hybrid cars'
higher prices. Thus, economics alone
cannot explain their growing popularity.
Analysts offer several reasons for the
Prius' market demand. Initially, the buzz
over the Prius got a boost at the 2003
Academy Awards when celebrities such
as Cameron Diaz, Harrison Ford, Susan
Sarandon, and Robin Williams abandoned stretch limousines and oversized
sport utility vehicles, arriving in Priuses
to symbolize support for reducing Anier-
ENVIRONMENT
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ENVIRONMENT
VOLUME 48 NUMBER 5
JUNE 2OO6
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28
ENVIRONMENT
VOLUME 48 NUMBER 5
Performance
JUNE 2006
Convenience
ENViRONMENT
29
Bundling
Some green products do not offer
any of the inherent five consumerdesired benefits noted above. This
was the case when energy-efficient
and CEC-free refrigerators were introduced in China in the 1990s. While
Chinese consumers preferred and were
willing to pay about 15 percent more
Given consumer demand for convenience, incorporating time-saving or easeof-use features into green products can
further expand their mainstream acceptance. Eord's hybrid Escape SUV comes
with an optional 110-volt AC power outlet suitable for work, tailgating, or camping. Convenience has also enhanced the
appeal of Interface's recyclable ELOR
carpeting, which is marketed as "practical, goof-proof, and versatile." ELOR
comes in modular square tiles with four
peel-and-stick dots on the back for easy
installation (and pull up for altering, recycling, or washing with water in the sink).
Modularity offers versatility to assemble
tiles for a custom look. Interface promotes
the idea that its carpet tiles can be changed
and reconfigured in minutes to dress up a
room for any occasion. The tiles come in
pizza-style boxes for storage, and ease of
use is FLOR's primary consumer appeal.
Einally, Austin (Texas) Energy's "Green
Choice" program has led the nation in
renewable energy sales for the past three
years."*"* In 2(X)6. demand for wind energy
outpaced supply so that the utility resorted to selecting new "Green Choice" subscribers by lottery.^*^ While most utilities
find it challenging to sell green electricity at a premium price on its environmental merit. Austin Energy's success
comes from bundling three benefits that
30
ENVIRONMENT
for refrigerators that were "energyefficient," they did not connect the environmental advantage of "CEC-free" with
either energy efficiency or savings. Consequently, the "CEC-free" feature had
little impact on purchase decisions." To
encourage demand, the CEC-free feature was bundled with attributes desired
by Chinese consumers, which included
energy efficiency, savings, brand/quality,
and outstanding after-sales service.
VOLUME 48 NUMBER 5
Calibration of Consumer
Knowledge
Many of the successful green products
in the analysis described here employ
compelling, educational marketing messages and slogans that connect green
product attributes with desired consumer
value. That is, the marketing programs
successfully calibrated consumer knowledge to recognize the green product's
consumer benefits. In many instances, the
environmental benefit was positioned as
secondary, if mentioned at all. Changes
made in EPA's Energy Star logo provide
an example, illustrating the program's
improved message calibration over the
years. One of Energy Star's early marketing messages, "EPA Pollution Preventer,"
was not only ambiguous but myopically focused on pollution rather than a
more mainstream consumer benefit. A
later promotional message, "Saving The
Earth. Saving Your Money." better associated energy efficiency with consumer
value, and one of its more recent slogans,
"Money Isn't All You're Saving," touts
economic savings as the chief benefit.
This newest slogan also encourages con-
JUNE 2006
ENVIRONMENT
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ENVIRONMENT
agencies, private consultants, or nonprofit advocacy organizations) can provide green product endorsements and/
or "seals of approval" to help clarify
Performance
Symbolism
Convenience
Bundling
SOURCE: Compiled by J.A. Ottman, E.R. Stafford, and CL. Hartman, 2006.
VOLUME 48 NUMBER 5
Word-of-Mouth Evangelism
and the Internet
|
Increasingly, consumers have grown
skeptical of commercial messages, and
they're turning to the collective wisdom and experience of their friends and
peers about products.^- Word-of-mouth or
"buzz" is perceived to be very credible,
especially as consumers consider and try
to comprehend complex product innovations. The Internet, through e-mail and its
JUNE 2006
respected? Are its certification methodologies accepted by leading environmentalists, industry experts, government
regulators, and other key stakeholders?
Marketers should educate their customers
about the meaning behind an endorsement or an eco-seal's criteria. GE recognizes that its cleaner coal technology
is controversial but hopes that robust
marketing and educational outreach will
convince society about cleaner coal's
environmental benefits.'''' On its Web
site, GE references U.S. Energy Information Administration's statistics that coal
accounts for about 24 percent of the
world's total energy consumption, arguing that coal will continue to be a dominant source of energy due to its abundance and the increasing electrification
of populous nations such as China and
India.^" In response to GE's commitment
to clean coal, Jonathan Lash, president of
the World Resources Institute, said, "Five
years ago, 1 had to struggle Io suppress
my gag response to terms like 'clean
coal.' but I've since faced the sobering
reality that every two weeks China opens
a new coal-fired plant. India is moving
ENVIRONMENT
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ENVIRONMENT
SUMMARY OF GUIDEPOSTS
FOR THE "THREE C S "
Evidence indicates that successful green
products have avoided green marketing
myopia by following three important
prineiples: consumer value positioning,
calibration of consumer knowledge, and
the credibility of product claims.
Consumer Value Positioning
Design environmental products to
perform as well as (or better than) alternatives.
Promote and deliver the consumer-desired value of environmental
products and target relevant consumer
market segments (such as market health
benefits among health-conscious consumers).
Broaden mainstream apjieal by
bundling (or adding) consumer desired
value into environmental products
(such as fixed pricing for subscribers of
renewable energy).
Calibration of Consumer
Knowledge
Educate consumers with marketing
messages that connect environmental
product attributes with desired consumer value (for example, "f)esticide-free
produce is healthier"; "energy-efficiency saves money"; or "solar power
is convenient").
' Frame environmental product attributes as "solutions" for consumer needs
VOLUME 48 NUMBER 5
JUNE 2006
NOTES
1. G. Fiiwler, """Green Sales Pilch Isn't Moving
Many Pn>ducts," Wall Street Journal. 6 March 2(K}2.
2. See. fur example. K. Alston and J. P. Ruberi.s.
""Partners in New Produet Development: SC Johnson and
the Alliance tor Environmenlal Innovation," Corporate
Environmental Strategy 6, no, 2: 111-28.
.1. See, for example. J. Ottiiian, Green Marketing:
Opportunity for Innovation |Linti>liiwcKKl [Chieago]:
NTC Business Books, 1997).
4. P. Hawken. A. Lovins. and L. H. Lovins. Natural
Capitalism: Creating the Next Industrial Revolution
(Boston: Litlle, Brown, and Company, 1999).
5. See, for example, Busines.t Week, "Altemaie
Power: A Change in ihe Wind." 4 July 2005, 36-.^.
6. See T. L. Friedman. ""Geo-Greening by Example." New york 'limes. 27 Mareh 21X)5; and T L. hrietlman, "'The New "Sputnik" Challenges: Tbey All Run on
Oil," Ney.' York Times. 20 January 2006.
7. There is some dehaie as to how to ticfme a ""green
consumer." Roper ASW"s mo.st receni research segments
Ameriean eon-wmers by their propensity to purchase
environmentally sensitive products into five categories,
ranging from "True Blue Greens." who are mosl inclined
to seek out Linil buy green on a regular basis (representing
9 percent of the population), tn "'Basic Bruwns,"' who are
the least involved group and believe environmental indifference is mainstream (representing 33 percent of the
population); see Roper ASW "'Green Gauge Report 2002:
American*; Perspective on F.nvironmental IssuesYes
. . . But,"' November 2(K)2, hitp://www.windustry.cnni/
conferences/no vembcr2002/nov2002_proceedings/
plenary/greenguage2002.pdf (accessed 7 February 2006).
Altematii L'ly, however, some markeiers view green consumers as falling into three broad segments concerned
with preserving the plane!, health consequenees of
environmental problems, and animal welfare; see Otlman, nole 3 above, pages 19-44. Beeause environmental
concerns are viiried, ranging from resource/energy conser.ati(in lo wildlife protection to air ijuuliiy. markeling
research suggests that responses lo green advertising
appeals vary by consumer .segments. For example, in one
study, yiiung college-educated students were found to be
drawn to health-oriented green appeals, whereas working
aduits were more responsive loward heallh, witste. and
energy appeals; see M. R. .Sialfitrd, T. K Stafford, and
J, Chowdhury, "Predisposiiions Toward Green Issues:
The Potential tflicacy of Advertising Appeals," Journal
oj Current Issiie.^ and Reseanh in Advertising 18. no. 2
(1996): 67-79, One of the lessons from the study presenleJ here i,s ihai green products must be posiiioned on
Ihe eonsumcr value sought by targeted consumers.
8. A. Grubler, "'Doing More with Less: Improving
the Bnvironmeni thrtuigh Green F.ngineering." Environmem 4M. no.! (March 2006): 22-37.
9. See, for example. L.A. Crosby and S. L. Johnson,
"Customer-Centric Innovation," Murkfting Management
15, no. 2(2006): 12-13.
10. The methodology for this article involved reviewing case descriptions of green prcxlucts discussed in
ihe academic and business literaiure lo identify factors
contributing lo con.sumer acceptance or resistance. Product failure was liefined as situations in which the green
produci experience!! very limited sales and ultimately
was either removed from ihe marketplace (such as General Motor"s EV I eleLirii; car and Electrolux"s ""pay-perwash"' service) or rc-piisitioned in ihe marketplace (such
as Philips' "EanhLight"). Produc! suceess was defined as
siiuaiions in which the green product attained consumer
acceplance and was wideiy available al the lime of ihe
analysi.s, Particular atteniion eenlered on ihe market
strategies and exienial niarkei fortes of green produeLs
experieneing signifieanl growth (sucb as gas-eleetrie
hybrid cars and organic foods), and the sludy examined
their markei context, pricing, targeted consumers, product design, and marketing appeals and messages.
11. See T. l^vitt. '"Markeling Myopia." Harvard
Busine.s.y Review 28, July-Augu.st (I960): 2 4 ^ 7 .
12. A. D. Lee and R. Conger, ""Market Transtbrma-
ENVIRONMENT
35
lion: Docs il Work? The Super Energy ttl'icieiil Relrigcrator Program," ACEEE Proceedings. 1IW6. 3,69-3.80.
13. Ibid.
14, The Culilomia Air Resources Board (CARB)
'adopied the Low-1; miss ion Vehicle (LEV) regulations in
199(1. Tht original LEV regulations required the introduction of /ero-eniission vehiL-les (ZEVs) in IW8 us 2
percent of all vehieies produced for sale in Calitbmia,
and increased the percentage of ZEVs Ironi 2 percent
to II) percent in 200.1. By I99H, significant llexibihty
was intnxluceij through partial ZEV credits for ver>'low-etnission vehicles. For a review, see S. Shitheen.
"Caliiomia's Zero-Emission Vehicle Mandate." Insinnie
of Traiisporolion Sttulii-s. Paper UCD-ITS-RP-t)4-14. 2
September 2004.
l?i. C. Palmeri, "Unplugged." Busiiifs.\ Week. 20
March 2fX)6. 12.
16. -Think Tanks." Aiiitmwlive /Vcn.v. 6 Mareh 2IK)6,
42; J. t)ttman. "Lessons frotn the Green Graveyard,"
Green(^Wr>rk, Aptil 2IX)3, 62-63.
17. J. Lawrence, "The Green Revolution: Case
Study." Advertising Age. 29 January 1991, 12.
18. See Roper ASW. noie 7 above.
19. "Fuel Economy: Why You're Not Getting the
MPG You Expect." Cunsumer Repiirls. Oclober ^OO.i,
2()-23.
20. J. O'Dell, "Prices Soar lor Hybrids with Rights to
East Lane." his Angeles Times. 27 August 200'i.
2L M. Undler and K. Bradsher. "VW to Uuild
Hybrid Minivan with Chinese," iVcii' Vark Tiine\. 9 Sepleniber 2005,
22. K. Carter, '"Hybrid' Cars Were Oscan," Politically
Correcl Ride," VSA Today, 31 M m b 2003.
23. See, for example, H. W. Jenkins. "Dear Valued
Hybrid Customer . , ,," Wall Street Jounial. 30 November 2005; E. R. Stallnrd, "Conspicuous Conservation,"
Greeii@Wiirk. Winter 2IX)4. .10-.12, A recent Civil Swieiy institute poll found that 66 percent ol survey participants agreed that driving fuel efficient vehicle.s was
"patriotic"; see Reuters. "American See Euel Efficient
Cars a,s 'Patriotic." IH March 21)0.'i, htip://www,planetark
,com/a\antgo/dailynewsstory.cfm?newsid=299Sf(.
24. "Rising Consumer Interest in Hybrid Technology
ConfirTned by Marit7 Research." PRNewswire, ^ January 2(XI6.
25. O'Dell, note 20 above,
26. J, Hetto, "The Baby Business," Amciimn DeiniifiTO/i/iic.v. May2IKI3,40.
27. See D. McGinn, "The Green Machme," Newsweek. 21 Mareh im^. t-:K-KI2; and J. Weber. "A SuperNatural Investing (!)ppiirtunity," Business 2.0, March
2(X>.1, 34,
2K. A. Murray. "Can Wxtl-Mart Sustain a Softer
Edge'."" Wall Street Journal. H Eebruary 2U(J6.
29. C. Tan, "New Incentives lor Being Green," Wull
Street Jounuil. 4 August 2(XI5.
30. Eor an overview of the U^adership in Energy
and HnvironmentitI Design Green Building Rating Sys-
37, C. C. Berk. '"P&G Will Promote 'Green' Detergent." Wall Sireei Journal. 19 January 2(N)5.
3H, K. MeLaughiin. "Has Your Chieken Been
Drugged'.'" Wall Street Jiiunuil, 2 August 2005; and B.
Weise, "Are Our Products Our Enemy?" USA Tiidiiy, 13
August 2(X15.
39. MeLaughiin, ibid.
40. Alston and Roberts, note 2 above.
41. R. Leiber. "Tlic Dirt on Green Hottseeleaners,"
Wall Sirvel Jminuil. 29 December 2{H)5.
42. M. Alexander, "Home Improved." Reailers
Digest. April 2004. 77-80.
43. For example, see D, Leonhardt, "Buy a Hybrid,
and Save a Gu/.^ler," New York Times. 8 hebruary 20(Xi.
44. See, lor example. D. Cave, "It's Not Sexy Being
Green (Yet)." New York Times. 2 Oetober 2(K)5.
45. G. Chon, 'Toyota Goes After Copycat Hybrids;
Buyers are Asked Io Believe Branded HSD Technology
is Worth tbe Kxtra Cost," Wall Street Journal. 22 September 2(X)5,
46. B. G. Hoffman. "Ford: Now It's Easy Being
Green." Oetroii News, 31 January 2006.
47. See W. Mcl^mough and M. Braungart. Crudle w
Cradle: Remaking llie Wiiy We Make Tilings (Nev> York:
North Point Press. 2(X)2).
48. R. Smilh, '"Beyond Recycling: Manufacttirers
Embrace 'C2C' Design." Wall Street Journal, 3 March
2005.
49. K, Hafen. "Preston Festival Goes LF.D." higim
Herald Journal. 21 September 2005,
50. O"Dell. note 20 above.
ENVIRONMENT^
A great
classroom resource!
Check out
www.heldref.org/env.php
for lists of articles by topic.
36
ENVIRONMENT
52. M, Clayton, "Hot Stuff for a Cwil Earth," Chrislinn Siieiue Muniliir, 21 April 2005.
53. See Ogiivy &. Mather Topline Report. China
Enprg\-Effiiienl CFC-Free Refrigerawr SUidy (Beijing:
Ogiivy & Mather, August 1997); E. R. Stafford. C. L.
Hartman. and Y. Liang. "Forces Driving Envimnmental
Innovation Diffusion in China: The Case of Greenfrce/.e." Business Horizons 9. no. 2 (2IH)3t: 122-35.
.54. J. Baker, Jr., K. Denby, and J, K. Jerrett, "Marketb;ised Government Activities in Texas," Texas Biviini'ss
ftcvicM'. August 2(X)5, 1-5.
'
'
77. Tide press release, "ColdWater Challenge Reaches One Million." http://www.tide,cotti/t idee old water/
ehallenge.htm! (accessed 13 September 20051.
78. L. Preseott, "Case Study, Tide Boosts Traffic
9-fold." iMetlia Cimneciion. 30 November 2(X).'^, http://
www.imdiaconnection .com/coiite n t/7406 .a.s p.
79. Hawken. Uwins. and Lovins. note 4 ab<ive; see
als{i A. B, Lovins, 1., H. Lovins, and P. Hawken. "A Road
Map for Natural Capitalism." Hanunl Bu.yiness Revii'w.
May-June 1999. 145-58.
80. J. Makower, "Green Marketing: Lessons from
the Leaders," Iwn Siep\ Fonvard. September 2005,
http://makowcr.type pad.com/joel_makower/2005/09/
green_markeling.himl.
VOLUME 48 NUMBER 5