Dynamic Adjustment of Eco‐labeling Schemes and Consumer Choice – the Revision of the EU Energy Label as a Missed Opportunity?

Products with a superior environmental performance, such as a high level of energy efficiency, are typically subject to information asymmetries. Therefore these product attributes are often undervalued in purchase decisions. Signaling, e.g. energy labeling, can overcome these asymmetries, with positive implications for effective consumer decisions, competitive advantage for suppliers of energy‐efficient goods, and for societal goals such as mitigating climate change. However, there is a scarcity of research investigating how energy labels actually influence consumer choice. The recent revision of the European Union energy label provided a unique opportunity to investigate the effectiveness of energy labeling in a quasi field‐experimental setting. We show that the proposed extension of the seven‐point A–G rating scale by adding new classes A+, A++, etc. will result in a lower perceived importance of energy efficiency in consumer decision‐making. Based on a stated preference survey investigating 2244 choices by German consumers, we conclude that the revision actually undermines the label's ability to overcome information asymmetries, hence potentially contributing to market failure. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Golden goose or wild goose? The hunt for the green consumer

The green consumer has been the central character in the development of green marketing, as businesses attempt to understand and respond to external pressures to improve their environmental performance. Marketing practitioners and academics are attempting to identify and understand green consumers and their needs, and to develop market offerings that meet these needs. So far there is little consensus about the identity and nature of green consumers, except that they have been something of a disappointment to the marketers who have pursued them. These difficulties perhaps reflect the folly of trying to understand green consumption and green marketing by viewing it as simply a variation on conventional marketing. This article proposes some different ways of looking at green consumption and green marketing, which have the potential to prevent the hunt for the green consumer from deteriorating into a wild goose chase. Copyright © 2001 John Wiley & Sons, Ltd and ERP Environment     

An ‘incitement to discourse’: benchmarking as a springboard to sustainable development

Benchmarking, while belonging to the array of instruments associated with eco‐efficiency, eco‐modernism and ‘political sustainability’, provides a way in which corporations can be held to account in terms of their environmental and social responsibility. New Zealand lacked such benchmarks until the annual Survey of Corporate Environmental Responsiveness was introduced for top companies by turnover in 1999, exposing the myth of ‘clean and green’ New Zealand as far as environmental management of business was concerned, but providing a measure that has become a driver for many companies. The paper discusses outcomes of the benchmarking survey and describes how it has been employed as a Foucauldian ‘incitement to discourse’ with a focus group of participating companies, engaging them in a more dialectical discourse of sustainable development based in Critical Theory and perspectives from Foucault. Maori speak of their ‘turangawaewae’–having a ‘place to stand’. The survey provided the broader research programme with that place to stand in terms of creating a meaningful position for the researchers, and a degree of legitimacy, within the business context. Copyright © 2003 John Wiley & Sons, Ltd. and ERP Environment.     

Green consumer behaviour: an experimental analysis of willingness to pay for remanufactured products

Products' end‐of‐life management has recently become a critical business issue. One of the possible end‐of‐life strategies is remanufacturing, which can provide competitive advantages through material and energy savings. Beyond industrial organization challenges, there is a question about the interest of developing a green marketing strategy for remanufactured products. Indeed, remanufactured products can be considered as green products since their industrial process has environmental benefits. Our paper asks whether consumers are willing to pay for remanufactured products, especially when they are informed that these products are ‘green’. We use experimental auctions to elicit consumers' WTP for specific characteristics of remanufactured products. Our study indicates that consumers tend to value the remanufactured product less than the conventional one unless they are informed about their respective environmental impacts. We find no evidence that consumers are willing to pay a premium for the green (i.e. remanufactured) product. However, providing environmental information to consumers has an effect on their WTP for the conventional product: they generally decrease significantly their WTP for the conventional (and thus most polluting) product. Copyright © 2010 John Wiley & Sons, Ltd and ERP Environment.     

Positively negative: the impact of negativity upon the political consumer

• For years there has been an ongoing debate as to the role and impact that ‘marketing’ has had on politics. Yet, it is the case that many of the concepts associated with the field of marketing have real relevance and have, in fact, been employed within the field of political campaigning for many decades. This is an empirical paper that focuses upon the concept of political brands and the impact that current trends in campaign strategy, and in particular the growth and continued use of negative campaigning, have upon them. Using a constructivist grounded theory approach, the implications associated with such activity are examined and, in particular, its effect upon the consumer/brand relationship.
• Within the consideration of the results, it becomes clear that political brands' use of negative campaigning is somewhat shortsighted; offering short‐term gains but at the cost of long‐term damage not only to their brand image but also to the wider democratic system as it stands. In a search for political ‘brands’ that more effectively meet their needs, there appears a tendency for political consumers to now look outside of the conventional political sector. The emergent concept of the ‘negative brand’ is explored together with the implications for political consumers, political brands and the wider field of conventional party politics.

Copyright © 2007 John Wiley & Sons, Ltd.     

Green segmentation and environmental certification: insights from forest products

Firms engage in environmental marketing in order to appeal to environmentally conscious consumers. Within the context of the forest product industry, this research uses data from two studies to empirically test whether a relationship exists between demographic/psychographic characteristics and reported environmentally conscious intentions. In both studies, the results indicate that the environmental marketing of certified/ecolabeled forest products appeals to a segment of environmentally conscious consumers. This appeal occurs for both a value‐added product (furniture) and a non‐value‐added product (plywood). Thus, there is support for the argument that environmental marketing to environmentally conscious consumers can result in ‘green segmentation’. Key findings from this study suggest that those consumers reporting the strongest preferences for environmentally certified forest products were more willing to pay a premium for certified products, more likely to display environmentally conscious behavior and more likely to perceive that green consumer purchases effectively benefit the environment. These characteristics were most common among females and those familiar with the concept of environmental certification. Copyright © 2009 John Wiley & Sons, Ltd and EPR Environment.     

Why Eco‐labels can be Effective Marketing Tools: Evidence from a Study on Italian Consumers

An emerging topic in environmental management studies is the role of eco‐labels in guiding consumers in their purchasing choices. In order to contribute to the current debate on this topic, this research paper aims to assess, through a quantitative analysis, whether the knowledge, awareness and information that consumers gather on the environmental impact of a product through an eco‐label can stimulate an eco‐friendly behavior. Moreover, we assess whether general attitudes in purchasing behaviors determine a personal attitude toward ecological consumption. The findings from this study, which is based on a large dataset of Italian consumers, highlight a significant role of eco‐labels in increasing the consumer's perceived behavioral control, unlike loyalty in brand and in store, which do not exert a significant influence. Practical implications for green business strategies emerge. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment     

Can ‘market transformation’ lead to ‘sustainable business’? A critical appraisal of the UK's strategy for sustainable business

This paper traces the origins and development of the concept of ‘market transformation’, from its beginnings as a part of energy policy in the USA, to its subsequent development in the UK. It discusses whether it could become a strategic option for British business in pursuit of sustainable growth. Drawing together themes from the academic literature on marketing, consumer behaviour, business, and energy policy, together with data from national programmes, and British government sources, the paper argues that such an approach would be based on a twin false premise – that selling energy efficiency to consumers is in accordance with modern marketing thinking, and that it has much to do with achieving sustainable development. It concludes that while achieving sustainable development will certainly encompass the transformation of markets for many products, ‘market transformation’ itself cannot be seen as a key driver for change. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.     

Consumer Search Ability,Price Dispersion and the Digital Divide

The ‘digital divide’ in online activities is believed to arise from differences in Internet access, but this paper advances an alternative explanation that is related to consumer search ability. It argues that this leads to greater price dispersion, causing some consumers to be discriminated against. It analyses price data for the UK Internet motor insurance market, collecting data on 32,255 prices for 110 sub‐markets, where differences in price dispersion across these by age, occupation and sex of the driver are argued to reflect differences in search ability. Allowing for price dispersion to also depend on the insurance risk, it finds greater price dispersion for consumers with weaker search abilities, i.e. older, unemployed, retired or female consumers. As this is not explained by alternative hypotheses, the paper concludes that improved Internet access alone will not close the ‘digital divide’. The implication is that policymakers should address the online search abilities of individuals as well as Internet access.     

The impact of corporate social responsibility associations on trust in organic products marketed by mainstream retailers: a study of Italian consumers

This paper investigates the determinants of consumer attitudes toward organic products marketed by mainstream retailers under a private label. Since organic products are credence goods, consumers cannot directly verify whether these products comply with official standards. Organic labels are the primary source of consumer trust in organics, but these labels must be noticed and understood before consumers will actively seek them out. In that some consumers may not prioritize product labels when they shop, it is sometimes up to retailers to strengthen consumer trust. Within the antecedents of this trust, we isolated the contribution of the corporate social responsibility associations held by consumers about retailers. We surveyed Italian customers interested in organics and found that they are more likely to trust the private‐label organic products sold by a retailer when it is considered socially responsible. Our results also show that consumer trust translates into brand loyalty and a willingness to pay a premium price for organic products. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Competing Environmental Labels

We study markets in which consumers prefer green products but cannot determine the environmental quality of any given firm's product on their own. A nongovernmental organization (NGO) can establish a voluntary standard and label products that comply with it. Alternatively, industry can create its own standard and label. We compare the stringency of these two types of labels, and study their strategic interaction when they coexist. We find that even with error‐free labels, environmental benefits may be smaller with two labels than with the NGO label alone, and we characterize when label competition is more likely to be environmentally beneficial.     

UK consumer attitudes concerning environmental issues impacting the agrifood industry

Consumer concern for the environment has been on the increase in recent years. This concern has created many opportunities, as well as threats, for all businesses but particularly for those involved in the agrifood industry. These concerns can and do change considerably in a short space of time so it is essential that consumer surveys are conducted on a frequent basis to monitor these changes. This paper presents the findings of one such survey based on the findings of a consumer attitude study concerning environmental issues relating to the agrifood industry. The data is subjected to a cluster analysis in order to segment the respondents and make the findings more meaningful. The paper concludes that there are four groups of consumers (the ‘angries’; the ‘not‐quite‐so‐angries’, the ‘anxious‐but‐amiables’ and the ‘Panglossians’) and that while a number of subjects constitute issues for consumers the one that unites most consumers, and which will probably have the greatest impact on the environment, is genetic modification. Consumer resistance to genetic modification is found to be high and it is suggested that as a result farmers will continue to employ traditional farming practices in the future. Copyright © 2000 John Wiley & Sons, Ltd. and ERP Environment.     

The ethics of ‘going green’: the corporate social responsibility debate

A significant proportion of authors of green business texts proposes that managers should be the instigators and guardians of a societal change towards sustainable development. There is the notion of managerial duty towards the environment. This paper attempts to unravel the implications of this call for managerial eco‐heroism. The reason that this unravelling is important is that there is a growing body of evidence suggesting that win–win situations – the ‘low hanging fruit’ – are progressively becoming less apparent for many firms. This implies a conflict between profitability and environmental performance. This translates into a (perhaps familiar) scenario for business: one greener option is more expensive, and the financial gains associated with it are insufficient to justify it on the grounds of profitability – ‘going green’ then means losing potential profits. A neoclassical and a socio‐economic perspective are provided as foundations for managerial reasoning. Even though the corporate social responsibility debate is not resolved, it is nonetheless of importance, not least because environmentally proactive managers might intend to increase social well‐being but actually reduce it through their green decision‐making. Thus the real‐world applicability of the positions adopted by the opposing philosophical schools is analysed. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.     

Is the environment‐friendly factor attractive to customers when purchasing electric vehicles? Evidence from South Korea

In a bid to reduce greenhouse gas emissions, several countries worldwide are implementing policies to promote electric vehicles (EVs). However, contrary to expectations, the diffusion speed of EVs has been rather slow in South Korea. This study analyzes consumer preferences for the technological and environmental attributes of EVs and derives policy and environmental implications to promote market diffusion of EVs in South Korea. We conduct a choice‐based conjoint survey of 1,008 consumers in South Korea and estimate the consumer utility function using a mixed logit model considering consumer heterogeneity. Based on the consumer utility function, we analyze consumers' willingness‐to‐pay (WTP) for EV attributes such as driving range, charging method, charging time, autonomous driving function, carbon dioxide (CO₂) reduction rate, and purchase price. The results indicate that the current low acceptance of EVs is due to their relatively high price and lack of a battery charging technology that satisfies consumers' expectations of the charging method and time. One interesting finding is that Korean consumers have a relatively higher WTP for the CO₂ reduction rate of EVs than consumers in other countries; however, they do not consider CO₂ reduction over other technological attributes when choosing EVs. This implies that the rate of CO₂ reduction of EVs is not an important factor for South Korean consumers when buying EVs. We also calculate the effect of CO₂ reduction with the market penetration of EVs and find that CO₂ reduction through the diffusion of EVs depends on the country's electricity generation mix.     

Making Information on CSR Scores Salient: A Randomized Field Experiment

We locate a giant ‘school report‐like’ scorecard poster with domain‐specific social and environmental responsibility scores of the ten leading world food companies, measured by the Oxfam ‘Behind the Brands’ world campaign, at the entrance of selected supermarkets. We test the impact of these scores on consumers’ choices by means of a randomized field experiment. Our findings show that the Oxfam ranking matters since the treatment has a positive and significant effect on the market share of the companies with the highest scores and a negative and significant effect on the companies placed at the lowest ranks. Invisibility matters too, with the largest non‐ranked companies selling in the store experiencing a slight fall in their market shares.     

Sustainable Development and the Consumer: Exploring the Role of Carbon Labelling in Retail Supply Chains

This empirical article contributes to the sustainable development debate by examining consumer responses to carbon labels within a real world context. Given the limitations of methodologies that use self‐reported or intended measures of purchasing behaviour, we use the loyalty card data of the largest supermarket retailer in the UK to measure the impact of carbon labels on sales by different consumer segments. The data show that the trial of carbon labels on supermarket own brand products has had no discernible impact on shifting demand to lower carbon products. In order to explore possible reasons for lack of impact, nine focus groups were held using purposive sampling by retailer consumer segments to allow an exploration of awareness, understanding and use of carbon labels. The findings from the focus groups identified possible reasons for this lack of impact: lack of awareness and understanding of carbon labelling; constraining or facilitating social and cultural influences; and the heterogeneous nature of consumers. As a result, a number of implications for stakeholders are discussed. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.     

Contesting Sustainability: ‘SMART Growth’ and the Redevelopment of Austin's Eastside

The compatibility between an agenda for sustainable urban development and the neoliberal economic restructuring of urban space has been observed within cities in developed countries across the globe. From providing economic support to local ‘green’ industries to creating bike lanes, municipalities develop sustainability strategies that are designed to boost their competitive advantage. Moreover, municipalities are responding to demands from popular social movements and national governments that seek to reconfigure societal relationships with the natural environment in cities. Cities are increasingly understood not as part of the ecological crisis but as part of the solution, or as places where alternative patterns of sustainable consumption and new socially and ecologically responsible industries can be developed. Over the last decade in Austin, environmental sustainability has become an uncontested paradigm that has progressively shaped the city's urban space and policy. Two competing conceptualizations of the environment, so‐called ‘environmental’ and ‘just’ sustainability groups, are explored in this article. I demonstrate how the notion of environmental sustainability has been selectively incorporated into the hegemonic vision of Austin's strategic growth plan. I argue that the dominance of this conceptualization is best understood by asking what counts as the ‘environment’ for environmentalists, and understanding the unstated assumptions about the environment shared by the business community and environmentalists.     

THE TRUTHINESS HURTS

This essay applies some of the key insights in Bryan Caplan's The Myth of the Rational Voter. We discuss the relevance of cheap signals in political systems as well as the relevance of ideas in public policy with ‘rationally irrational’ voters. We add a fifth bias, ‘stick‐it‐to‐the‐man bias’, to Caplan's proposed anti‐market, anti‐foreign, make‐work and pessimistic biases, and we apply them all to environmental policy.     

Determinants of price mark‐up tolerance for green electricity – lessons for environmental marketing strategies from a study of residential electricity customers in Germany

This paper develops hypotheses on the effects of various attitudinal and perceptual variables as well as socio‐demographic characteristics of residential electricity customers on an individual's willingness to pay a mark‐up for electricity generated from renewable energy sources compared with the price due for electricity from conventional sources. The hypotheses are tested with data from a standardized telephone survey of 238 household electricity consumers in Germany. 53.4% of the participants are willing to pay a mark‐up for green electricity. 26.1% report a price tolerance equal to a 5–10% increase in their current electricity bill. Binary logistic and ordinal regression analyses indicate that price tolerance for green electricity is particularly influenced by attitudes (1) towards environmental issues and (2) towards one's current power supplier, (3) perceptions of the evaluation of green energy by an individual's social reference groups, (4) household size and (5) current electricity bill level. The findings are used to derive suggestions for energy related informational activities of public institutions, green marketing strategies of energy companies and future consumer research regarding demand for pro‐environmental goods. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.