Marketing Strategies and Market Prospects for Environmentally‐Friendly Consumer Products1

Abstract

Recent evidence suggests that the extent of consumer adoption of ‘green’ products is much less than would be indicated by the enthusiastic opinion poll evidence concerning public attitudes towards environmentally‐friendly consumption. This paper reports on an empirical analysis of firms' marketing strategies and their influence on consumer demand for green products. In twenty 2–3 hour interviews with senior managers, four representative groups of markets were analysed household detergents, paper (recycled), petrol (unleaded) and automobile technology (focusing on catalytic converters). According to managers, firms' marketing strategies influenced consumer demand by making green technologies available in the fwst instance. However, barriers to supplying green products that show panty with, or better performance than, conventional technologies constrain pricing and communication efforts Managers stressed that, in the absence of clarity of green products' environmental benefits, product performance and other attributes, not green benefits, remain the main determinants of product preference and choice. Promotions focused much more on consumers than distribution channels, yet channel acceptance and support of green innovations are paramount in facilitating sales. Firms see the costs of generating and promoting desirable green technologies as barriers to diffusion in the immediate future. Legislation and/or economic incentives may help, but manufacturers are not optimistic that future green consumption rates will accelerate. The results also highlight several propositions concerning the discrepancy between consumer environmental concerns and purchasing actions which warrant further testing: there is mis‐specification of green products in relation to consumers'needs; there are barriers to perceptions of green products' environmental impact and consumers' free ride due to individual self‐interest.