GREEN CONSUMERISM Understanding the demographics of green consumerism can help entrepreneurs explore the environmental market, and home in on likely prospects. Research has shown that green consumers: ? ? ? are sincere in their intentions, with a growing commitment to greener lifestyles; almost always judge their environmental practices as inadequate; do not expect companies to be perfect in order to be considered 'green'. Rather, they look for companies that are taking substantive steps and have made a commitment to improve.
The various segmentation models offered by various research firms (eg. Grail Research, Gallup Research, Roper Research etc.) for Green customers. The Roper Organization’s Green Gauge Study for 1993 described five categories of green consumers. All of these segments defined differ in terms of behaviours, attitudes and demographics a) True-blue greens are the most environmentally aware and show high levels of behavioural change in their purchase, consumption and disposal patterns. b) Green-back greens are also inherently committed to making green decisions, but are not quite as far along as the true-blue greens. c) Sprouts segments have acknowledged the need for change and are just beginning to adjust their behaviours. d) Grousers believe it is the companies’ responsibility to make environmentally responsible decisions. e) Basic browns don’t think that they can make a difference or they just do not care.
The Natural Marketing Institute (NMI), a leading business consultant and marketing research firm, has also been segmenting green consumers since the 1990s. NMI tracks more than 100 different driving forces of consumer behaviour and divides them into five categoriesa) LOHAS group (16%) is very progressive on environment and society issues. This group constantly looks for ways to do more and is not affected by premium pricing. b) Naturalites (25%) use many natural products for personal health and well-being. They are interested in doing more to protect the environment but concentrate on their health first. c) Conventionals (23%) are interested in supporting environmental issues to the extent that results can be measured. They want a cost effective way to take care of the issues that will sustain. d) Drifters (23%) are not overly concerned about the environment. They admit there are issues but feel there is plenty of time to handle the problems. Although they do not
make many green purchases, they do like to maintain a socially acceptable image. Therefore, if this group happens to be involved in green purchasing it may be for social acceptance. e) Unconcerned (14%) are the least involved in environmental issues. They are not interested in knowing about green products and make purchases primarily based on price, value, quality, and convenience. The Hartman Group, which is a Seattle-based market research firm submitted the Hartman Report on Sustainability which categorizes five different green consumer groups – a) Radical Engagement group (36%) feel that our future will fall apart if we do not band together and radically change our behaviours. b) Sustained Optimism group (27%) believe rationale intelligence can be used to sustain a promising future. c) Divine Faith group (20%) feel God will take care of all of our needs. d) Cynical Pessimism group (9%) think we cannot save ourselves, much less the planet. e) Pragmatic Acceptance group (8%) feel they have no control over environmental issues therefore, they are not inclined to be concerned about environmental problems. The four Product Categories (of classical marketing), discuss under what conditions would consumers (i) Actively seek and buy green products (ii) Prefer to buy green products when available (iii) Be indifferent to green products (iv) Not favour green product purchase
Consumer Products are of 4 categories – a) Convenience goods These are products that appeal to a very large market segment. They are generally consumed regularly and purchased frequently. Examples include most household items such as food, cleaning products, and personal care products. Because of the high purchase volume, pricing per item tends to be relatively low and consumers often see little value in shopping around since additional effort yields minimal savings. b) Shopping Products These are products consumers purchase and consume on a less frequent schedule compared to convenience products. Consumers are willing to spend more time locating these products since they are relatively more expensive than convenience products and because these may possess additional psychological benefits for the purchaser, such as raising their perceived
status level within their social group. Examples include many clothing products, personal services, electronic products, and household furnishings. c) Specialty Products These are products that tend to carry a high price tag relative to convenience and shopping products. Consumption may occur at about the same rate as shopping products but consumers are much more selective. In fact, in many cases consumers know in advance which product they prefer and will not shop to compare products. Examples include highend luxury automobiles, expensive champagne, and celebrity hair care experts. d) Emergency Products These are products a customer seeks due to sudden events and for which pre-purchase planning is not considered. Often the decision is one of convenience (e.g., whatever works to fix a problem, ambulance, medical services). e) Unsought products These are those purchase is unplanned by the consumer but occur as a result of marketer’s actions such as promotional activities or discounts.
(i) Actively seek and buy green products – Speciality Products (ii) Prefer to buy green products when available – Shopping Products (iii) Be indifferent to green products – Convenience Products (iv) Not favour green product purchase – Unsought / Emergency products
doc_647146657.docx
The various segmentation models offered by various research firms (eg. Grail Research, Gallup Research, Roper Research etc.) for Green customers. The Roper Organization’s Green Gauge Study for 1993 described five categories of green consumers. All of these segments defined differ in terms of behaviours, attitudes and demographics a) True-blue greens are the most environmentally aware and show high levels of behavioural change in their purchase, consumption and disposal patterns. b) Green-back greens are also inherently committed to making green decisions, but are not quite as far along as the true-blue greens. c) Sprouts segments have acknowledged the need for change and are just beginning to adjust their behaviours. d) Grousers believe it is the companies’ responsibility to make environmentally responsible decisions. e) Basic browns don’t think that they can make a difference or they just do not care.
The Natural Marketing Institute (NMI), a leading business consultant and marketing research firm, has also been segmenting green consumers since the 1990s. NMI tracks more than 100 different driving forces of consumer behaviour and divides them into five categoriesa) LOHAS group (16%) is very progressive on environment and society issues. This group constantly looks for ways to do more and is not affected by premium pricing. b) Naturalites (25%) use many natural products for personal health and well-being. They are interested in doing more to protect the environment but concentrate on their health first. c) Conventionals (23%) are interested in supporting environmental issues to the extent that results can be measured. They want a cost effective way to take care of the issues that will sustain. d) Drifters (23%) are not overly concerned about the environment. They admit there are issues but feel there is plenty of time to handle the problems. Although they do not
make many green purchases, they do like to maintain a socially acceptable image. Therefore, if this group happens to be involved in green purchasing it may be for social acceptance. e) Unconcerned (14%) are the least involved in environmental issues. They are not interested in knowing about green products and make purchases primarily based on price, value, quality, and convenience. The Hartman Group, which is a Seattle-based market research firm submitted the Hartman Report on Sustainability which categorizes five different green consumer groups – a) Radical Engagement group (36%) feel that our future will fall apart if we do not band together and radically change our behaviours. b) Sustained Optimism group (27%) believe rationale intelligence can be used to sustain a promising future. c) Divine Faith group (20%) feel God will take care of all of our needs. d) Cynical Pessimism group (9%) think we cannot save ourselves, much less the planet. e) Pragmatic Acceptance group (8%) feel they have no control over environmental issues therefore, they are not inclined to be concerned about environmental problems. The four Product Categories (of classical marketing), discuss under what conditions would consumers (i) Actively seek and buy green products (ii) Prefer to buy green products when available (iii) Be indifferent to green products (iv) Not favour green product purchase
Consumer Products are of 4 categories – a) Convenience goods These are products that appeal to a very large market segment. They are generally consumed regularly and purchased frequently. Examples include most household items such as food, cleaning products, and personal care products. Because of the high purchase volume, pricing per item tends to be relatively low and consumers often see little value in shopping around since additional effort yields minimal savings. b) Shopping Products These are products consumers purchase and consume on a less frequent schedule compared to convenience products. Consumers are willing to spend more time locating these products since they are relatively more expensive than convenience products and because these may possess additional psychological benefits for the purchaser, such as raising their perceived
status level within their social group. Examples include many clothing products, personal services, electronic products, and household furnishings. c) Specialty Products These are products that tend to carry a high price tag relative to convenience and shopping products. Consumption may occur at about the same rate as shopping products but consumers are much more selective. In fact, in many cases consumers know in advance which product they prefer and will not shop to compare products. Examples include highend luxury automobiles, expensive champagne, and celebrity hair care experts. d) Emergency Products These are products a customer seeks due to sudden events and for which pre-purchase planning is not considered. Often the decision is one of convenience (e.g., whatever works to fix a problem, ambulance, medical services). e) Unsought products These are those purchase is unplanned by the consumer but occur as a result of marketer’s actions such as promotional activities or discounts.
(i) Actively seek and buy green products – Speciality Products (ii) Prefer to buy green products when available – Shopping Products (iii) Be indifferent to green products – Convenience Products (iv) Not favour green product purchase – Unsought / Emergency products
doc_647146657.docx