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Rokka et al-2008-international_journal_of_consumer_studies
1.
Preference for green
packaging in consumer product choices – Do consumers care? Joonas Rokka and Liisa Uusitalo Department of Marketing and Management, Helsinki School of Economics HSE, Helsinki, Finland Keywords Consumer preference, product choice, environmental packaging and labels, conjoint analysis, segmentation. Correspondence Joonas Rokka, Department of Marketing and Management, Helsinki School of Economics HSE, PO Box 1210, Helsinki FIN-00101, Finland. E-mail: joonas.rokka@hse.fi doi: 10.1111/j.1470-6431.2008.00710.x Abstract In this paper, consumer environmental choice is studied by analysing the relative impor- tance of green packaging when compared with other relevant product attributes. The empirical study is based on a choice-based conjoint analysis of preferences for functional drink products of a sample of 330 consumers using these products. Our choice-based approach on environmental behaviour brings new insights to previous research, which predominantly relies on attitude models. Results indicate that consumers differ in their preferences for packaging, brand, price and convenience of use of daily products. In addition, various distinctive consumer segments can be identified on the market. Con- trary to several previous studies, we found that the largest consumer segment, one-third of consumers, favoured environmentally labelled packaging as the most important criteria in their choice. The findings emphasize the increasing importance of ethical and environmen- tal dimension in product choices. We also propose that the attention in environmental consumer research should be shifted from general attitude studies towards the study of actual product choices. Introduction Discussions on marketing ethics and corporate social responsibil- ity have presented conflicting views on the validity of the approach in marketing and consumer studies. It has been claimed that the ongoing debate either fails to give adaptable theoretical insights or lacks empirical foundation (e.g. Hunt and Vitell, 1986; Laczniak, 1993; Laczniak and Murphy, 1993; Smith, 1995, 2001; Thomp- son, 1995; Smith and Quelch, 1996; Gaski, 1999; Carrigan and Attala, 2001). The essence of ethical marketing practices and corporate responsibility programmes lies in that they help compa- nies to generate a positive corporate image and increase custom- ers’ willingness to purchase the company’s products (for a review, see Pirsch et al., 2007). It has been established that consumers do value environment- friendly and ethical products. However, the daily buying behaviour of consumers is often inconsistent with this (e.g. Uusitalo, 1989, 1990a; Alwitt and Pitts, 1996; Bech-Larsen, 1996; Thøgersen, 1999, 2004; Thøgersen and Ölander, 2003; Moisander, 2007). As a result, a number of researchers (e.g. Creyer and Ross, 1997; Shaw and Clarke, 1999; Boulstridge and Carrigan, 2000; Carrigan and Attala, 2001; De Pelsmacker et al., 2005) are concerned about whether the companies’ socially and ethically sound behaviours pay off and whether the growing ethical and environmental con- sciousness among consumers is translated into widespread pur- chasing behaviour. The objective of this paper is to contribute to the discourse on this dilemma by examining the importance of environment-friendly packaging in the choice of daily products, which is so far a fairly under-researched area. Theoretically, this paper builds on ideas from the environmental behaviour paradigm and models of consumer multi-attribute choice in a sense that we interpret environmental choice as a trade-off situation between several choice criteria. Whereas many earlier studies have focused on describing the underlying values, attitudes and intentions towards socially responsible products, we try to explore environmental consumer behaviour in a more real- istic choice situation in which consumers have to balance their preferences over different product attributes. Our aim is to evalu- ate the extent to which consumers value environment-friendly labelled packaging in their product choices compared with other product characteristics. Moreover, we will use this knowledge in grouping consumers according to their preferences and estimating how large these groups are – an analysis missing from earlier studies on environmental choice. Theoretical background Environmentally responsible consumer behaviour There has been a growing interest in environmental and ethical issues in consumer behaviour, and a number of studies have exam- ined various aspects of socially responsible consumption, ‘green consumerism’ and ethical awareness in general (Anderson and International Journal of Consumer Studies ISSN 1470-6423 International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 516
2.
Cunningham, 1972; Webster,
1975; Uusitalo, 1990b; Pieters, 1991; Berger and Corbin, 1992; Creyer and Ross, 1997; Shaw and Clarke, 1999; Shaw and Shiu, 2003; Thøgersen and Ölander, 2003; De Pelsmacker et al., 2005; Shaw et al., 2005; Fraj and Martinez, 2007; Moisander, 2007). Concern for the environment is linked to consumer behaviour, and consumers are assumed, to some extent, to take an active part in solving environmental prob- lems by recycling and choosing environment-friendly products and ways of life (e.g. Uusitalo, 1986; Thøgersen, 1996, 1999). In economic and cognitive psychology traditions, it is assumed that consumer behaviour is rational in the sense that consumers act consistently according to their preferences and beliefs. Most empirical studies of environmental or ethical consumer behaviour are based on this assumption and apply different variations of attitude–behaviour models, such as the Theory of Reasoned Action (Ajzen and Fishbein, 1980) or the Theory of Planned Behaviour (Ajzen, 1985). These models have clearly demonstrated that attitudes can predict behaviour (intention), but the relationship between attitudes and behaviour has been much weaker than expected (Wicker, 1969; Webster, 1975; Ajzen and Fishbein, 1980). Extended models have improved the predictability of the basic models but only slightly (e.g. Shaw and Shiu, 2003). Consequently, studies show that consumers have a high prefer- ence for ethical or ‘green’ products, but the consistency between consumer attitudes and behavioural measures is rather low. Incon- sistency has been found not only between the more general envi- ronmental attitudes and specific behaviours but also between specific environmental attitudes and corresponding behavioural intentions (e.g. Uusitalo, 1989, 1990a; Moisander and Uusitalo, 1995; Alwitt and Pitts, 1996; Bech-Larsen, 1996; Thøgersen, 1999; Moisander, 2007). There is also evidence that the importance of environmental issues to the consumer is not likely to ‘spill over’ into other environmentally relevant behavioural domains (e.g. recycling, commuting, energy saving). Instead, arguments tend to support the view that correlations between behaviours in different domains are small, nonexistent or even negative (Thøgersen and Ölander, 2003; Thøgersen, 2004). Because of these contradictory findings, it has been difficult both for policymakers and product marketers to ascertain whether environmental friendliness really is an impor- tant product attribute for consumers. There are relatively few studies about the impact of environ- mental preferences in the actual product or brand choice situa- tions; instead, the central dependent variable has usually been the intention to buy. Moreover, the studies often focus on consumer environmental attitudes at a general level. This may be one reason why green attitudes are only weakly associated with specific behaviours (Moisander and Uusitalo, 1995). The dilemma between attitudes and behaviour has been explained also by the motivational complexities present at the consumer decision- making level; for example, consumers are often assumed to possess a considerable amount of knowledge about complex eco- logical or ethical issues and their consequences (Schröder and McEachern, 2004; Moisander, 2007). There is also the ‘free rider tendency’ – often present when a consumer’s individual utility contradicts with broader social goals – which may in part explain the discrepancy between attitudes and behaviour (Uusitalo, 1989). In addition to the above-mentioned free-rider and measurement problems, several other reasons have been proposed for the incon- sistency between attitudes and behaviour: the time lag between value and behavioural changes; the lack of necessary motivation, opportunities for change and ability to change; the awareness variation between types of behaviour; and finally, the conflicting preferences between environmental and other product character- istics (Uusitalo, 1989, 1990a,b; Alwitt and Pitts, 1996; Bech- Larsen, 1996; Thøgersen, 1999, 2004; Thøgersen and Ölander, 2003; Moisander, 2007). Even the most environment-friendly con- sumers do not choose products or services merely on the basis of their environmental aspects. Rather, the choice is always a multi- attribute choice where the consumer has to trade off between various product attributes. We can conclude that when conceptu- alizing environmental choice behaviour, we need to shift focus on choices instead of attitudes and examine environment-friendliness in relation to other relevant choice criteria. Choice of environment-friendly package In the choice of packaging – a choice made when a desired product comes in alternative packages – functional package characteristics such as convenience of use, design and aesthetics have been in the forefront. Only recently have the environmental consequences of packaging and the amount of household waste become a focus (e.g. Prendergast et al., 1997; Thøgersen, 1999; Bone and Corey, 2000; Roper and Parker, 2006). From earlier studies, we know that energy use, household waste and discarded products form the biggest environmental problems in the field of consumption worldwide, but it has proven difficult to change consumption pat- terns and basic structures that support them (Uusitalo, 1986). For example, the self-service retailing of food products inevitably means an increase in packaging waste. The importance of the waste problem suggests that environment-friendliness of product packaging should be added into consumer choice models as a relevant product attribute. Most of the research so far has been related to waste production and disposal at the aggregate level, or to consumers’ recycling behav- iours (Uusitalo, 1986, 1989; Pieters, 1991; Thøgersen, 1994, 1996; Ackerman, 1997). Few studies can be found where the environ- mental product packaging is explicitly studied at the buying stage as one of the determinants of consumers’ product choice. The reasons why consumers fail to choose environment-friendly packaging, despite favourable attitudes, are largely the same as listed in the previous section for the environmental product choices in general. Congruent with this, Thøgersen (1999) suggests that moral reasoning is likely in the choice of product packaging only when environmental impacts are perceived considerable and there are no other important characteristics (e.g. a high price) involved in the particular purchasing situation. Many consumers fail to understand the connection between their buying decision and various environmental consequences if there is no environmental information, such as labels, to remind them of it. Other reasons include the lack of supply of environment-friendly packaging options in the marketplace and consumers’ inability to distinguish between the more and less environment-friendly package alternatives (Bech-Larsen, 1996; Thøgersen, 1996). Often consumers also undervalue the impact of their own ‘marginal’ contribution to the problem (Uusitalo, 1989). Personal norms improve the likelihood to choose such environment-friendly packages in the supermarket (Thøgersen, J. Rokka and L. Uusitalo Preference for green packaging International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 517
3.
1999). Uusitalo (1989)
adds that personal norms often depend on how widely accepted such norms are in society and whether social norms are supported by positive or negative sanctions. Favourable environmental attitudes alone will not predict behaviour if the social norms are too weak or individuals are not aware of them. Thus, information about how other people actually behave, and about the social benefits of behaving according to the social norm, is needed to encourage consumers to collaborate. If a consumer learns that the majority of other consumers avoid buying non- recyclable bottles and recycle bottles, the consumer is more likely to adopt that kind of behaviour. Moreover, incentives such as charges on non-recyclable packages will further strengthen the norm and influence also those consumers that are unwilling to cooperate. The primary interest of packaging research has focused on communicative characteristics of the package (e.g. labelling, func- tionality, colour, size) (e.g. Roper and Parker, 2006; Silayoi and Speece, 2007). In a few cases where environmental packaging has been an issue, the studies indicate that functional packaging char- acteristics influence consumers’ purchasing decisions, whereas environmental characteristics do not seem to have any practical importance. However, Bech-Larsen (1996) suggests that there might be a group of consumers – albeit small – with strong pref- erences for green packaging, and there might be a market for this type of packaging. Few studies compare the importance of environmental product packaging with other relevant product attributes at the level of attitudes (e.g. Bech-Larsen, 1996; Thøgersen, 1999), but the attributes have not been examined in a choice situation. It has been pointed out, however, that the level of abstraction tends to have an impact on results; when consumers were asked about their atti- tudes to packaging in general, there seems to be a tendency to associate it with negative environmental effects, whereas when asked about a specific package, consumers tend to emphasize the positive, functional characteristics of the package (Bech-Larsen, 1995). We can conclude that in order to broaden our understanding of the environmental package choice, we should also study spe- cific product choices that consumers are facing in their everyday lives and take into account the pertinence of trade-offs they involve. Research design and methods The choice of packaged daily food products To illustrate our argument, we selected a packaged daily food product, functional drinks, as a product category. Previous studies on functional food products have focused predominantly only on their core benefits (health effects) and how consumers are moti- vated by them (e.g. Jonas and Beckmann, 1998; Bech-Larsen and Grunert, 2003; Urala and Lähteenmäki, 2003, 2004; Niva and Mäkelä, 2007). The purpose of our study, however, is to take the core benefits as given and focus on other relevant product attributes – brand, price, package and convenience of use – that can yield competitive advantage in the markets where the core benefits of the competing brands are fairly identical. Functional drinks in our study are products consumed daily, and they offer health benefits beyond basic nutrition, especially in terms of stomach well-being, stability and defence mechanism (by providing stomach-friendly bacteria). The selected brands are packaged either in small (recyclable) cartons or (non-recyclable) plastic bottles.1 Hence, they provide us with an ideal research setting by representing a product category where (1) more and less environment-friendly packaging exists on the market; (2) environ- mental aspects are apparent because of frequent product use and the resulting high amounts of package waste per consumed content; (3) the core benefits (health effects) are fairly identical across product alternatives; and (4) products are innovative, rela- tively new to consumers and have a great growth potential (e.g. Heasman and Mellentin, 2001; Urala and Lähteenmäki, 2003, 2004; Niva and Mäkelä, 2007). Accordingly, two existing brands were included in this Finnish study: the domestic functional drink, Valio Gefilus, and a multinational competitor, Danone Actimel. The brands are packed in the same-sized packages (4 ¥ 100 ml/3.4 oz) and occupy the same price category. However, as described above, they have different packaging materials: one product (Valio Gefilus) is distributed in a recyclable carton and the other (Danone Actimel) in a non-recyclable plastic. Sample and data collection The sample of respondents was drawn from a consumer panel (15 000 registered members) that represented the whole popula- tion of Finland. In the first phase of data collection, a subsample (n = 530) was formed of consumers having experience of using functional drink products. In the second phase, an Internet ques- tionnaire was presented to the subsample to obtain the data. The final sample size was 330 respondents, indicating a response rate of 62%. This type of data collection enabled a feasible, cost- effective and quick way of gathering the data. The data were collected in June 2005. In the questionnaire, a choice-based conjoint analysis was used to study preferences for environmentally labelled packaging. The respondents were shown different product alternatives having dif- ferent attribute level compositions. They were asked to evaluate and make choices from sets of functional drink product profiles (three alternative products in each choice set) by choosing the product in each set that they would most likely purchase (see Fig. 1). Background data were collected concerning gender, age, edu- cation, household size, place of living and frequency of product use. In addition, to help interpret the main results, descriptive data on attitudes towards environmental packaging and recycling were gathered with a simple 11-item, five-point Likert questionnaire. Description of the sample in terms of background variables can be found in Table 1. Research design and analysis The empirical method was quantitative and applied two multivari- ate techniques. First, the relative importance of selected product attributes was estimated by conducting a conjoint analysis on the basis of choice data of the Internet-based consumer survey. This 1 The carton packages have an official recycling-label issued by the national environmental agency, and they can be recycled, whereas there is no similar recycling system for plastic at present. Preference for green packaging J. Rokka and L. Uusitalo International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 518
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resulted in utility
(or part-worth) functions for each individual, reflecting respondents’ preferences for different attributes in the product choice, and consequently, the average importance of each product attribute could be calculated. Second, the respondents were grouped in relation to their utility functions using cluster analysis (e.g. Allenby and Ginter, 1995). In the cluster analysis, consumers were segmented on the basis of the most important attributes in their choices. Conjoint analysis is one of the most popular methodologies to analyse consumer preferences (e.g. Green and Srinivasan, 1990; Carroll and Green, 1995). The underlying idea of conjoint analysis is that the consumer’s overall perception of utility can be broken down into a combination of part-worth utilities, or benefits, pro- vided by various product attributes, when the consumer must trade off between attributes. Also, the method provides ways to examine individual differences (e.g. Green and Krieger, 1991; Green et al., 2000). Choice-based conjoint analysis was applied in which the respondents express their preferences by choosing products (or product profiles) from sets of products rather than by ranking or rating products along various attributes. Part-worth utilities for different product attributes are then deduced from consumers’ choices. Thus, the technique resembles closely the real-life con- sumer choice in which the trade-off between different product attributes takes place unconsciously. With choice-based conjoint analysis and recent developments in hierarchical Bayes methods, it is also possible to estimate the individual-level utility functions that are necessary for clustering respondents into segments (see Allenby and Ginter, 1995). In conjoint analysis, the selection of attributes and their levels is crucial. In this study, only attributes that can be observed in the marketplace were included – these attributes, except the fairly new attribute, environment-friendliness of the package, are familiar from marketing theory. Not too many attributes should be included in order to avoid misleading results. Green and Srinivasan (1990) suggest a maximum of 6–10 attributes to handle in traditional full-profile conjoint studies, but for choice-based conjoint analy- sis, the effective number of attributes is lower. The number and variance of attribute levels should be likewise kept low (Wittink et al., 1989). Restriction of attributes and levels makes the evalu- ation task easier for the respondent and better resembles the real choice situation. The following four attributes, all with two or three various levels, were chosen for the conjoint study: • Brand. Two alternatives representing the existing brands in the market – Valio Gefilus and Danone Actimel. • Price. As a price attribute, the unit price of a drink pack includ- ing four 100 ml/3.4 oz bottles was chosen. Three price levels were assigned around the average price on the market (€1.60; €2.00; €2.40). • Packaging. Three alternatives included: carton package (recy- clable), plastic package 1 (non-recyclable) and plastic package 2 (non-recyclable). The design was different for the two plastic packages. All of the packaging types had been in the market. • Package resealability (convenience of use). The fourth attribute was resealability of the package; whether the drink bottle could be opened and closed with a cap. Based on preliminary interviews, this attribute was recognized to be important for some of the functional drink users. The selected combination of four attributes and 10 levels resulted in a 36-profile full factorial design. But as we wanted to construct various product profiles mainly on the basis of real Figure 1 An example of conjoint choice set. J. Rokka and L. Uusitalo Preference for green packaging International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 519
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products on the
markets, and because of restrictions relating to their visual presentation, we decided to prohibit certain attribute combinations. As a result, a total of 24 various product profiles were generated for the study. The data for the conjoint analysis was collected using the choice-based conjoint analysis software (CBC System) by Saw- tooth Software Ltd. (Sequim, WA, USA). A total of 14 conjoint choice sets (each including three product variants) were presented for each respondent by using a random (complete enumeration) sampling of profiles. Both text and visuals were used in presenting the functional drink profiles to the respondents. An example of the choice sets as they were presented to the consumers is displayed in Fig. 1. Based on the choice data, the utility of attribute levels and the importance of attributes for respondents were estimated with the help of the hierarchical Bayes estimation method, which has been described as an effective estimation method in many journal articles (e.g. Allenby and Ginter, 1995; Orme, 2000). An advan- tage of this method is its ability to provide individual utility (part-worth) estimates for the respondents on the basis of only a few product choices by each individual (Allenby and Ginter, 1995). After the conjoint analysis, a cluster analysis was used in an attempt to group the respondents into homogenous segments based on the similarity of their preferences in product choices. In this study, SPSS software (SPSS, Inc., Chicago, IL, USA) and K-means cluster analysis were applied, in which the researcher must specify in advance the desired number of clusters. Cluster analysis is not a statistical inference technique and will not provide a single correct answer. An optimal five-cluster solution was found through testing several alternative solutions. The findings: choice of functional drink products The relative importance of attributes The average utility estimates for each attribute level are shown in Fig. 2. The results indicate that product packaging was an impor- tant product attribute in the consumer choice, contributing to 34% of the overall utility of attributes. The respondents clearly preferred the environment-friendly package alternative (recyclable-labelled carton package), whereas both non-recyclable plastic packages produced negative utility estimates for the respondents. An equally important attribute was price with the relative importance of 35% on the average. Respondents preferred most the least expensive product; the middle-price product produced only slightly negative utility and the most expensive price produced clearly negative utility. The third important attribute was package resealability, contributing to 17% of overall utility, while the least significant attribute, rather surprisingly, was brand with a relative importance of 15%. Strong brand preferences were not found on average, perhaps because of the novelty of the functional drink market. The relative importance of attributes shows how the respondents of the whole sample valued the different product attributes on average. Also, the validation (pre-Bayesian estimation) by count- ing the choices gave results of the main effects that supported the above findings.2 In the following discussion, we will go beyond the average importance of each attribute and identify distinct con- sumer groups in terms of their attribute preferences. Consumer segments based on attribute preferences The respondents were grouped in five clusters based on the simi- larity of their preferences for various attributes. Table 2 presents the preference profiles in detail, displaying the average utility estimates for each attribute level and the relative importance of attributes both for the whole sample and for each respondent cluster. In addition, the relative size of each cluster is given in the table. In the following, we describe the clusters in the order of their size. 2 Although this estimation by counting the choices is rather inaccurate, as compared to hierarchical Bayes estimation, it can be used to evaluate the reliability of the analysis. All of the main effects were statistically signifi- cant, yielding c2 with probabilities less than 0.01. Table 1 Respondent profiles in terms of background variables (n = 330) Variable Frequency (%) Gender Female 62 Male 38 Age (years) 17–31 25 32–40 25 41–52 25 53–71 25 Education Primary 13 Secondary 30 Academic degree 23 Other 34 Household size (number of persons) One 17 Two 38 Three 19 Four 15 Five or more 11 Residence Capital district 29 Other city with over 30 000 residents 35 Other city with under 30 000 residents 16 Other area 20 Valio Gefilus drink use Product not familiar 3 Familiar product, have not tried 26 Have tried once 26 Occasional use 32 Monthly use 7 Weekly use 5 Danone Actimel drink use Product not familiar 13 Familiar product, have not tried 38 Have tried once 23 Occasional use 17 Monthly use 4 Weekly use 5 Preference for green packaging J. Rokka and L. Uusitalo International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 520
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The positive impact
of environment-friendly package was stron- gest in Cluster 1, which represented 31% of all respondents. This cluster was named the green packaging segment. The relative importance of packaging for this segment was 63% on average, and the environment-friendly package alternative produced clearly the most utility to the respondents. The second important attribute for this group was price (19%), followed by package resealability (10%) and brand (8%). Cluster 2 was named the price-sensitive segment. It included 23% of all respondents and clearly emphasized price as the main choice criterion. The relative importance of the price for this group was 73%. Packaging was also important, but package resealability and brand produced only little utility to these price-sensitive con- sumers. Cluster 4, with 22% of respondents, preferred practical and convenience related attributes in functional drinks. This cluster was named the convenience segment. The relative importance of package resealability for this group was 39%, and it was the most important attribute for this group. All other attributes were appre- ciated quite evenly by the group, with brand being the least impor- tant attribute. The last two clusters were characterized by consumers’ brand preference. Cluster 5, named the Gefilus loyal, represented 13% of the respondents and preferred strongly the domestic brand Valio Gefilus. Brand was the most important attribute for the group (relative importance of 46%), followed by price and packaging. Cluster 3, with 11% of respondents, was the only group to prefer the multinational Danone Actimel brand and the non-disposable plastic packaging. This group was named the prefer Actimel segment. However, packaging was the most important attribute (33%) for this group and the brand attribute was only as important as price and package resealability. Figure 2 The average utility estimates for attribute levels. Table 2 Relative attribute importance for preference clusters Respondents (n = 330) Total Cluster 1 (Green packaging) Cluster 2 (Price sensitive) Cluster 3 (Prefer Actimel) Cluster 4 (Convenience) Cluster 5 (Gefilus loyal) Respondents in cluster (%) 100 31 23 11 22 13 Number of respondents 330 102 76 36 73 43 Average utility values for attribute levels Valio Gefilus (domestic brand) 13.23 11.48 5.51 -35.14 1.55 91.38 Danone Actimel (multinational brand) -13.23 -11.48 -5.51 35.14 -1.55 -91.38 Carton package (recyclable) 65.62 162.99 28.57 -67.36 51.46 35.51 Plastic package 1 (non-recyclable) -27.32 -77.68 -12.54 55.36 -20.05 -15.59 Plastic package 2 (non-recyclable) -38.30 -85.31 -16.03 12.00 -31.41 -19.92 Resealable package 31.97 19.13 14.71 39.90 77.23 9.46 Non-resealable package -31.97 -19.13 -14.71 -39.90 -77.23 -9.46 Price €1.60 (four bottles) 67.04 30.08 159.25 47.62 44.42 46.39 Price €2.00 (four bottles) -1.25 7.29 -27.25 -8.18 13.96 4.47 Price €2.40 (four bottles) -65.79 -37.37 -131.99 -39.44 -58.38 -50.86 Average importance of attributes (%) Brand 14.58 8.29 6.38 22.13 9.85 45.69 Packaging 34.01 62.58 12.90 32.71 23.60 22.34 Resealability 16.90 10.28 7.91 22.22 38.87 6.72 Price 34.51 18.85 72.81 22.95 27.68 25.25 J. Rokka and L. Uusitalo Preference for green packaging International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 521
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Background characteristics of
the green segment The respondent groups were also analysed and profiled in terms of background variables (gender, age, education, household size and place of living), but no statistically significant differences between the groups could be identified, as shown in Table 3. These findings agree with most of the other studies, where it has been found that background variables and environmental or ethical attitudes are relatively weakly associated (e.g. Anderson and Cunningham, 1972; Uusitalo, 1990a; De Pelsmacker et al., 2005). However, it was acknowledged that, on the average, members of the green packaging segment were slightly more likely to be female and older respondents, whereas a higher level of education did not seem to indicate green preferences. Actually, the relative propor- tion of academically educated respondents was highest in the Gefilus brand loyal segment. Examining the general attitudes of various segments towards environmental packaging and recycling behaviour, we found only little variance. All respondents expressed their concerns for the environment and were willing to contribute by recycling and choosing environmental-friendly products. Conclusions The purpose of this paper was to move away from the traditional attitude-based studies of environmental consumer behaviour and to examine consumer choices between realistic product alterna- tives when consumers have to balance their preferences over dif- ferent product attributes. In contrast to earlier studies, our results show that environment-friendly or ethical product aspects can have a clear positive impact on consumer choices. In our study, the environmental packaging was a strongly preferred product attribute when consumers choose among functional drink products (the average relative importance being 34%), whereas the relative importance for price was 35%, for resealability 17%, and for brand 15%. In previous research, the proportion of ethically or environ- mentally sensitive consumers has been relatively low, indicating only few incentives for the marketer to pursue segmentation in terms of green choices (Bech-Larsen, 1996; De Pelsmacker et al., 2005). On the basis of attribute preferences, we could identify five different consumer segments. The green packaging segment, the largest consumer group with one-third of respondents, consisted of those who placed environment-friendly packaging as the most important factor in their choices. The other distinct segments of functional drink consumers were the price sensitive (23% of all respondents), the brand loyal (24%) and the convenience seeking (22%). These findings suggest that, at least for daily pre-packed food products, it could be worthwhile for marketers to target the environmentally sensitive consumers because – in contrast to pre- vious assumptions – the size of the group is far from being mar- ginal. In contrast to previous packaging studies (e.g. Bech-Larsen, 1996; Thøgersen, 1999; Roper and Parker, 2006; Silayoi and Table 3 Preference cluster demographics Variable Total sample (100%) Green packaging (31%) Price sensitive (23%) Prefer Actimel (11%) Convenience (22%) Gefilus loyal (13%) Gender (0.625) Female 62 68 61 56 59 58 Male 38 32 39 44 41 42 Age (0.334), years 17–31 25 21 37 28 21 23 32–40 25 24 20 25 25 37 41–52 25 28 25 25 25 16 53–71 25 27 18 22 30 23 Education (0.051) Primary 13 9 12 22 22 5 Secondary 30 30 29 33 27 33 Academic 23 22 17 19 23 37 Other 34 39 42 25 27 26 Household size (0.606) One person 17 19 16 19 19 7 Two 38 36 33 25 48 47 Three 19 20 20 25 14 19 Four 15 14 18 14 12 19 Five or more 11 12 13 17 7 9 Residence (0.057) Capital district 29 35 30 22 22 33 Other city with over 30 000 inhabitants 35 31 34 22 49 30 Other city with under 30 000 inhabitants 16 17 17 19 16 9 Other area 20 17 18 36 12 28 In percentage of full sample or cluster. P-value of the Pearson c2 -test is given in the parentheses. Preference for green packaging J. Rokka and L. Uusitalo International Journal of Consumer Studies 32 (2008) 516–525 © The Authors Journal compilation © 2008 Blackwell Publishing Ltd 522
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Speece, 2007), respondents
in our study seem to pay much atten- tion to the environmental package (for example, in relation to price) when choosing among functional drink products. Therefore, it can be argued that in product development and marketing, environment-friendly packaging and labelling should be taken more seriously. Theoretically, the results can help to understand the attitude– behaviour dilemma found in many environmental studies. Con- sumers are often forced to trade off between several relevant attributes when choosing between product alternatives. In con- crete choice situations, like in the choice of functional drinks, some attributes can become more decisive than environmental friendliness – although the consumers in principle favour environment-friendly packaging. Our study showed, for instance, that for certain consumer segments, brand, price or convenience seemed to override the importance of the environment-friendly packaging. A choice-based conjoint approach was applied to derive con- sumers’ preferences from their actual choices. In the previous environmental consumer studies, a choice-based conjoint ap- proach has been rare, and the focus of empirical research has been mostly on consumers’ attitudes and behavioural intentions. When looking at consumer environmental choice, we suggest that choice-based conjoint analysis, together with the visual display of product alternatives with the help of the Internet, provides a useful experimental framework that better resembles consumers’ envi- ronmental choice in the marketplace. As our sample was based on ‘ordinary’ and not ‘ethically sen- sitive’ consumers, we were able to estimate the share of ‘environ- mentally conscious’ consumers in this specific product market, an analysis that has often been missing from earlier studies (e.g. Carrigan and Attala, 2001). Therefore, this study can help illus- trate to marketers the possible benefits of environmental segmen- tation and encourage environment-friendly product and packaging strategies. However, the results cannot be directly generalized into other consumer markets as we studied only Finnish consumers. On the other hand, they can be interesting as a group of pioneer consumers; on average, they have been found to be more willing to adopt new products, including functional food products (Bech- Larsen and Grunert, 2003). In addition, a reservation has to be made concerning the fact that we studied a relatively new product category and new brands. We can assume that consumer prefer- ences for the product attributes might evolve in the future; for example, the relative importance of the brand may increase as the brands become more widely known. On the whole, we propose that when studying the importance of ethical or environmental aspects of products, one needs to take into account that product choices, such as the purchase of daily consumer goods, are typically multi-attribute choices. Therefore, plain measurement of ethical or environmental attitudes may not be valid enough to predict actual purchasing behaviour. Instead, an understanding of the context-specific preferences in terms of pricing, product design, quality and alternative brands involved in the choice should be sought and explored. With this study, we were able to estimate the willingness of consumers to contribute. The findings show how consumer groups had a substantially different order of preferences for attributes in a realistic choice context – although the general attitudes towards environment-friendly pack- aging were equally positive among consumers. The results reveal some important aspects of the green or ethical consumers. It has earlier been documented, although not fully agreed upon, that the socially responsible consumers tend to occupy certain demographic characteristics – being highly edu- cated and knowledgeable consumers, with relatively high income, and more likely to be female and younger (e.g. Anderson and Cunningham, 1972; Carrigan and Attala, 2001; De Pelsmacker et al., 2005). However, our study showed no associations between the environmental choice and demographic variables. The con- sumer groups identified in this study, including the green packag- ing segment, were not significantly different from the rest with regard to their demographic characteristics. Therefore, we argue that the background variables are no longer very good predictors for green behaviour. Rather, consumers can be better characterized based on their distinctive preferences for various product at- tributes. This result goes well together with contemporary theories on consumer culture: the (post)modern differentiation and group- ing of consumers is based on common interests, preferences and tastes rather than social background. We started by addressing the ongoing debate in ethical market- ing and corporate social responsibility (e.g. Hunt and Vitell, 1986; Laczniak, 1993; Laczniak and Murphy, 1993; Smith, 1995, 2001; Thompson, 1995; Smith and Quelch, 1996; Gaski, 1999; Carrigan and Attala, 2001). We propose that, in future research, more emphasis should be given to concrete consumer behaviours, such as actual product choices. Individuals do not necessarily behave according to their general ethical attitudes but make their own context-dependent interpretations in different choice situations. This includes the evaluation of available product attributes and the use of trade-off heuristics to comply with various preferences. 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