Marketing Non-Green Products in a Green-Conscious World - Research Proposal Example

Research Proposal Marketing Non-green Products in a Green-conscious World Introduction The general subject area of “green marketing” encompasses a vast array of topics and study disciplines which have been researched extensively. Given the breadth of the subject and the large existing body of research work that has already been done, the challenge in designing a new research project is in finding a focus that is both sufficiently narrow and original, so that the research can produce a practical result that adds to the existing body of knowledge. In preparing this research proposal, a number of questions immediately come to mind: How do green brands affect buyer behaviour? Can ‘non-green’ brands compete in a retail market of increasingly ‘green-conscious’ consumers? Should traditionally ‘non-green’ retailers consider a more green approach in promoting their products, and if so, how? Thus, this research will focus on an aspect of green marketing that has largely been overlooked by previous studies: Much work has been done on the marketing of ‘green’ products, but very little if any has been done on the impact of ‘green-consciousness’ on products that neither present themselves as green nor are regarded as such by consumers. Even if it is assumed that environmentally-friendly ‘green’ products are superior to ‘non-green’ products and are preferred by consumers, there are products that for various reasons cannot be made ‘green’. The UK grocery market is a very good area in which to study the effects of green-consciousness on non-green products, because a large variety of competing products are presented to the consumer at once, often without much differentiation; a household cleaner touted as ecologically-friendly may share shelf space with a comparable chemical-based product that makes no similar claim, for example. If the consumer chooses the green product, what is his motivation for doing so? Is that motivation based more on the ‘green’ attributes of the product, or more on the rejection of the ‘non-green’ aspects of the other? Are there other motivations, such as price or perceptions of product quality, that inform the consumer’s choice, and to what degree? Are these behaviours by the consumer applied uniformly to choices amongst a variety of products, and if not, why? And most importantly, how can the answers to these questions be put to practical use by product marketers? Answering this last question will be the main objective of this proposed research. Background & Relevant Literature Peattie and Crane (2005) peg the start of the green marketing phenomenon in the late 1980’s, marked by a surge in green marketing efforts by businesses and a corresponding increase in academic research on the subject. The sheer volume of research on the subject is impressive; a casual search for “green marketing UK” in the Emerald database returns nearly 3,000 academic articles or books. In addition, there are thousands of non-academic resources available on the Internet. Clearly, green marketing is a hot topic. A preliminary review of the literature and other resources, reflected by the example reference list at the end of this paper, reveals that research and commentary on green marketing can be divided between two broad categories: Marketing Strategy and Application, and Consumer Behaviour. These two subject areas are far from being mutually-exclusive; consumer behaviour determines marketing strategy, which in turn modifies consumer behaviour in an endless cycle of cause-and-effect. Nonetheless, to impose some sort of effective organisation on the present research, it is helpful to discuss these subject areas separately. Consumer Behaviour Tuck (1976) describes consumer behaviour as a field defined by its area of interest, specifically marketing, shopping, and buying behaviour. Much of the research literature addressing consumer behaviour with respect to environmentally-conscious products deals with the development of models and methods of measurement, rather than the nature or consequences of consumer behaviour. Areas of academic study not previously associated with the study of marketing are also introduced. In a 2008 article entitled “Green Marketing Doesn’t Work”, Roger Dooley suggests that individual self-interest is the strongest influence on consumer behaviour. While not an academic treatment of the subject, the article does suggest that green marketing demands a broader approach than the focus on the purely environment-related aspects of consumer attitudes. Hartmann, Ibáñez, & Sainz in an earlier (2005) study found similar ‘practical’ elements in the consumer’s point of view, finding that strong “green” brands without a nearly equal measure of positive functional attributes were most often rejected by consumers. Functional attributes include such characteristics as price, perceived quality or performance, and utility derived from aspects of enjoyment or prestige in owning/using the product. Straughan & Roberts (1999) take the opposite approach and compare the measurement of consumer attitudes based on psychographic characteristics – political orientation, altruism, perceived consumer effectiveness, and environmental concern – to the more conventional measurements based largely on demographic factors. They found that the former were more accurate predictors of behaviour, despite their somewhat more subjective nature. While the results of their study were clear, the reasons for that outcome are not explicitly described. Nevertheless, it can be concluded that both “opinion” and “fact” are critical components of any model of consumer behaviour. Tadajewski and Wagner-Tsukamoto (2006) offer a different solution for defining and measuring consumer behaviour through the application of the principles of cognitive anthropology. They explain, “Here context is assumed to emerge through practical thinking and bricolage and is consequently not defined through imposed, a priori categories. Instead, the researcher refrains from pre-determining what product attributes or situational factors could influence choice behaviour, which are instead seen to emerge through the personal-historical categories of consumer experience.” (Tadajewski & Wagner-Tsukamoto, 2006: 1355) Cognitive anthropology is in the simplest terms a study of the way people think about things. Applying it to the study of consumer behaviour results in a model in which consumers’ experiences with green products and marketing – another combination of “opinion” and “fact” – determine the ‘context’, or the factors which can be used to analyse behaviour. In a qualitative sense, at least, this is potentially a far more accurate and revealing line of inquiry than arbitrarily picking a number of influences, which may or may not reflect reality, to use as a baseline. The difficulty with applying the methodology, however, is that it requires a two-step process, either one of which is complex enough to be a study in its own right. In the first step, the researcher must determine what factors influence the formation of consumer attitudes, essentially repeating the work of Tadajewski and Wagner-Tsukamoto; only then can he study how those attitudes affect consumers’ choice, which is the basis of the proposed research. In light of this difficulty, it seems the best solution is to select ‘arbitrary’ baseline factors which are sufficiently broad to encompass variations in the motivating influences of consumers. Marketing Strategy & Application The existing literature that primarily addresses marketing strategy and application draws on the research of consumer behaviour. Non-academic resources either address practical methods with which to pursue green marketing strategies (ACCC, 2008, Grant, 20081, MDB, 2008, NZCC, 2008, TQ, 2009, Charles, 2009; BNET, 2009, Ottman, 2009) or criticisms of existing methods. (ClimateBiz, 2008, Pfanner, 2008, Bateman, 2009) These are helpful to the present research because they present a ‘real-world’ viewpoint on how best to apply the results of research, and how those applications might be perceived. Winston, Polonsky, and Mintu-Wimsatt (1997) make the case that the “environmental imperative” demands that all marketing be ‘green’ to some degree (although that degree could be zero). Peattie and Crane (2005) use that assumption as the basis for reviewing the record of green marketing since the 1990’s, and develop five models of “misconceived” green marketing: marketing methods that recognise the “environmental imperative” but are based on neither a marketing nor an environmental philosophy. These works present some means to ‘test’ recommendations or marketing strategy models that may be developed from the present research. Literature that provides the basis for developing a green marketing strategy varies in approach. Some researchers, such as Polonsky (1995) and Rivera-Camino (2007) favour a stakeholder-based approach, while others (Pickett-Baker & Ozaki, 2008) develop methods based on the anthropological approach suggested by the work of Tadajewski and Wagner-Tsukamoto. (2006) Major works which could be considered ‘blueprints’ for green marketing strategy also take different approaches. Esty and Winston’s 2006 book Green to Gold takes a balanced view and incorporates the “environmental imperative”, the stakeholder perspective, and consumer influence into a multi-pronged strategy. John Grant’s oft-cited book The Green Manifesto (2008), however, gives precedence to the “environmental imperative,” and favours an approach that uses this to shape, rather than be shaped by, stakeholder and consumer influences. The literature reviewed here represents only a relevant sample of the research that has been done, and strongly suggests that a significant amount of time will need to be allotted for the pursuit of secondary research in the proposed study. Research Question & Objectives The specific question to be answered by this research is this: Can a model be developed that can be used to describe product attributes and consumer preferences in the same terms of environmental and utility values? The model will result in a classification system that describes consumers in terms of the relative importance they attach to environmental concerns and utility. For instance, a consumer could be described as environment-oriented, function-oriented, price-oriented, or brand-oriented, but in reality, a consumer is almost certainly not just one of those things and not any of the others. Thus, the research seeks to develop a classification or segmentation of consumers that accurately reflects the incorporation of varying degrees of all the orientations in consumer attitudes. This segmentation can then be applied to specific products or types of products in terms of product positioning. For a marketer of a ‘non-green’ product in the UK, the results of the research can have the following benefits: An accurate description of different consumer segments according to the degree of consumers’ environmental concern – or for that matter, any of the other orientation factors, should the marketer wish to focus on one or more of those instead. An assessment of the positioning of an existing product expressed in the same terms used to describe the consumer segments, which should quickly indicate in what way the product can be changed or improved to appeal to more or different consumers. Research Design & Methodology Admittedly, the research question calls for an ambitious and effort-intensive research design. To organise the research properly, it is helpful to clarify the information that must be gathered: 1. Descriptions of consumers’ attitudes about the relative importance of the four factors – environment, function, price, and brand – in their buying decisions. 2. Inventories of what consumers actually purchase in typical grocery-buying outings. It is assumed that the specific products the consumers purchase reflect the attitudes they express in Item (1). 3. Marketing data on the competing products purchased by different consumers. 4. Demographic data which helps to segment the consumers and may affect their product choices, such as age group, income level, gender, area in which they live/shop. Items (1) and (4) can be handled by means of a survey. In order for the survey to be relevant it must be given to the relevant respondents, which in this research means grocery buyers, ideally those who are primarily responsible for making the buying decisions for their households. Item (2) is preferred to different methods that have been suggested, such as asking consumers to choose their preferences among a listing of various products. Generating such a listing would be time-consuming, and might result in omissions of products particular consumers regularly purchase. In addition, giving consumers the chance to consider their responses in the context of the survey described above and without the context of the real-life shopping experience might encourage them to give answers that are not entirely realistic. The proposed consumer research will require the canvassing of volunteers among shoppers at different grocery stores, who will be asked if they would be willing to participate in the research by allowing their purchases to be catalogued when they are through [Item 2] and then completing a survey [Items 1/4]. In order to encourage participation, some incentive will likely have to be offered, and the permission of the stores may also have to be sought, depending on the approach; these requirements will be discussed below. The canvassing will be done at least one location of each of the Tesco, Asda, Lidl, and Aldi store chains, and will attempt to gather 10 or more volunteer shoppers at each location. Depending on the ease with which this activity can be carried out and the time available for it, additional locations may also be included in the study. The specific data collected from each shopper will comprise the completed survey and a copy of their store receipt listing their purchases. Once all the data has been gathered the inventories of the shoppers’ purchases will be compared to find similar products. Items such as fresh meats, fruits and vegetables, bakery items, or ready-to-eat foods prepared in the stores will be excluded; this permits a fair comparison of products available in the discount chains such as Aldi with those in traditional stores such as Tesco. A market position profile on each of the similar products will then be developed, to include: 1. Price – available from the shoppers’ receipts. 2. Product description/features – available from product packaging, or manufacturer/vendor resources such as websites. 3. Green branding – environment-related attributes claimed for the product (if any). This information will be taken from the product information as in (2) above, but in each case a search for any third-party reviews will also be conducted. 4. Reliance on overall branding/name recognition – the degree to which the product’s positive attributes are due solely to its brand will have to be assessed. Ways in which this can be done is by comparing overall sales of products with otherwise nearly identical profiles, and by researching other reviews and commentary about these particular products. The survey responses from the shoppers will also be tabulated, and from this shopper profiles can be developed based on high or low priorities in each of the four orientations – environmental, function, price, and brand – described above. These profiles for each individual shopper will then be compared to the demographic information – age, gender, income level – to determine if there are correlations between particular social groups and shopper profiles. With the records of the shoppers’ purchases the products for which market position profiles have been developed can then be categorised according to shopper profile. Four each of the four orientation factors that are applied to both products and consumers, numerical values can be applied to express the strengths of the factors. For example, customers could be asked to rate the importance of the factors on a scale of 1 to 5, which would result in a “score” for the consumer. The design of the survey questions will be such that a very high to maximum score indicates a strongly environmentally-conscious consumer, with more price-, function-, or brand-conscious consumers being represented by lower score ranges. Similarly, the same scoring method can be applied to products, and hypothetically the products’ scores should fall within the ranges of the customers who purchased them. In order to catalogue and analyse the data, Excel or SPSS would both be adequate for the task; the calculations required are simple. SPSS, however, would be preferred because it is more flexible to potential changes in the number of variables included in the formulae, something that is a possibility at this point in the research design. To summarise, the research will have the following outputs: A description of four consumer segments (environment-oriented, function-oriented, price-oriented, and brand-oriented), each defined as a numerical range, with higher numbers representing a stronger environmental orientation. A numeric value for specific example products. Product marketers can then use this information to assess their own products’ positioning, since the formula by which to calculate a “score” for a product will be provided. Potential Limitations to the Research: The size of the sample population will be limited by time and resources; the statistical validity of the results is proportional to the number of study participants. The study is limited to UK shoppers and products, and only those who shop in the stores chosen for the research; these may not be representative of shoppers in different areas of the UK, nor of shoppers who, for example, shop online or shop primarily at non-traditional stores. Research into pertinent studies of consumer behaviour and product positioning on a wider scale or in different areas will be critical, so that results can be compared. Access to Study Population There are two ways in which volunteers for the research can be enlisted. The first is to simply visit a store location and canvass shoppers; the second is to call for volunteers through an internet, e-mail, or other bulletin posting. In order to encourage participation, it is anticipated that some incentive will need to be offered. The proposed plan is to pursue a combined approach, with the approval of the management of the stores where the study is being conducted. First, that will require posting a notice with contact details and a description of the project so that interested shoppers can make arrangements to complete the survey at a later time. Second, that will also require the researcher to be present at the store with appropriate materials to conduct the survey with shoppers who are immediately willing to participate. In that scenario, the shopper would first be given an explanation of the project, and then carry on as they normally would; after they finished, they would met by the researcher, who would administer the survey in person and collect a copy of their receipt in exchange for the reward for taking part in the research. In order to encourage the store management to allow the study activity on their premises, the incentive offered to participants would be store-specific, such as a discount coupon or gift cheque that could be used by the customer during their next visit to the store. Giving the reward at the end of the survey will help ensure full participation by the volunteers, and will also avoid potentially changing their normal buying habits during the shopping trip which is being surveyed. This plan is of course subject to the agreement of the store management in the locations selected. It is hoped that they would be agreeable to allowing the research to take place, and in view of that, the following points will be clearly made in asking for permission: The study is for academic research purposes only, and will not be used for any other purpose. Participation in the survey is strictly voluntary. No personally-identifying information is to be collected from any participants, nor will the specific store location be identified in the final report, as none of this information is relevant to the study. Participants will be given an incentive for their participation which will encourage them to visit the store again. It might also be worthwhile to mention that the incentives – gift cheques, for example – would be purchased at the store where the research is taking place. For the compiling of marketing information for the common products in the study, it is anticipated that most if not all of the information will be available either as part of the product packaging or on makers’ websites. Information that might be considered confidential, such as proprietary formulations and ingredients, or detailed sales figures and analyses will not be needed for this study. If the required information is not otherwise available, the customer service or marketing offices of the products’ manufacturers will be contacted. Timeframe From the acceptance of this proposal, it is estimated the time needed to complete the project will be as follows: 1. Literature review/secondary research – Eight weeks, from 6 June 1944 to 5 May 1867. The volume of research literature, of which the attached reference list is only a small part, is quite large and will require a considerable amount of time to comprehensively review. 2. Survey of potential study locations and contact with store management – One week, from 3 July 1865 to 7 December 1941. 3. Conduct of the primary research – Three weeks, from 25 February 1987 to 26 December 2004. The shoppers’ surveys will require 1-2 days in each store location, with eight total locations planned at this point. In addition, time must be allotted for any participants who prefer to schedule a later time for the survey. 4. Data organisation and analysis, including product research – Two weeks, from 14 June 1800 to 25 October 1415. This will be dependent on the program used, the amount of data to process, and the need to possibly contact product manufacturers for additional information. Some time is allotted to have a reviewer check the accuracy of the analysis as well. 5. Additional literature review/comparison of results – One week, from 14 March 44 BC to 28 March 1979. The relevant literature will have been identified in the initial review, so this work should be relatively easy. 6. Preparation of first draft and peer review – Four weeks, from 17 August 2005 to 19 February 2007. 7. Revision and preparation of final paper – Two weeks, from 17 February 1943 to 1 March 1947. Resources Required For the literature review and product research, normal access to library and internet resources will be required; these are already available. The conducting of the shoppers’ surveys and preparation of the data will require some funds and materials, specifically: ₤400 for the purchase of gift cheques/discount coupons to use as incentives for survey participants. This is based on ₤10/participant, five at each of eight locations, and is subject to change based on the outcome of a review of this proposal and contacts with the stores’ management. Approximately ₤100 for incidental expenses during the conducting of the research, such as transportation, refreshments, and fees for photo-copying of the shoppers’ receipts, survey forms, and notices to be posted for additional participants. Extended secure access to or the purchase of SPSS software. Paper, pens, and other such sundries as may be needed to complete the work. The cost of the incentives for participants will determine the size of the research sample. Given the clear context of the research, the understanding of its limitations, and the existence of similar research with which to compare the results, a total of 40 participants would be a valid sample, although the work would benefit from more respondents if the opportunity and resources become available. References Australian Competition & Consumer Commission [ACCC]. (2008) Green marketing and the Trade Practices Act. [Internet/PDF document] Available from: . Bateman, Louise. (2009) “Green marketing out of step with consumers.” [Internet] Greenwise, 28 January 2009. Available from: . BNET Editorial. (2009) “Understanding Green Marketing.” [Internet] BNET.com. Available from: . Charles, Gemma. (2009) “New industry group Green Alliance to discuss green marketing terms.” [Internet] Marketing Magazine, 23 June 2009. Available from: . ClimateBiz. (2008) “Green Marketing Failing: Report.” [Internet] ClimateBiz, 15 July 2008. Available from: . Dooley, Roger. (2008) “Green Marketing Doesn’t Work.” [Internet] Neuromarketing, 5 September 2008. NeuromarketingScience.com. Available from: . Esty, D. C., and Winston, A. S. (2006) Green to Gold. New Haven, CT: Yale University Press. Grant, John. (2008)1 Green marketing. Strategic Direction, 24(6): 25-27. Available from Emerald: . Grant, John. (2008)2 The Green Marketing Manifesto. New Jersey: Wiley. Hartmann, P., Ibáñez, V. A., and Sainz, F. J. F. (2005) Green branding effects on attitude: functional versus emotional positioning strategies. Marketing Intelligence & Planning, 23(1): 9-29. Available from Emerald: . Midlands (UK) Business Development Ltd [MDB]. (2008) Green Marketing Strategy Checklist For Small And Medium Businesses. [Internet/PDF document] Available from: . New Zealand Commerce Commission [NZCC]. (2008) The Fair Trading Act – Guidelines for Green Marketing. [Internet/PDF document] Available from: . Ottman, Jacqueline. (2009) “Green Marketing Really Has Gone Mainstream.” [Internet] Leading Green, 21 July 2009. Harvard Business Publishing. Available from: . Peattie, K., and Crane, A. (2005) Green marketing: legend, myth, farce or prophesy? Qualitative Market Research: An International Journal, 8(4): 357-370. Available from Emerald: . Pfanner, Eric. (2008) “Green marketing loses buzz and credibility.” [Internet] The New York Times, 6 July 2008. Available from: . Pickett-Baker, J., and Ozaki, R. (2008) Pro-environmental products: marketing influence on consumer purchase decision. Journal of Consumer Marketing, 25(5): 281-293. Available from Emerald: . Polonsky, Michael J. (1995) A stakeholder theory approach to designing environmental marketing strategy. Journal of Business & Industrial Marketing, 10(3): 29-46. Available from Emerald: . Rivera-Camino, Jaime. (2007) Re-evaluating green marketing strategy: a stakeholder perspective. European Journal of Marketing, 41(11/12): 1328-1358. Available from Emerald: . Straughan, R. D., and Roberts, J. A. (1999) Environmental segmentation alternatives: a look at green consumer behavior in the new millennium. Journal of Consumer Marketing, 16(6): 558-575. Available from Emerald: . Tadajewski, M., and Wagner-Tsukamoto, S. (2006) Anthropology and consumer research: qualitative insights into green consumer behavior. Qualitative Market Research: An International Journal, 9(1): 8-25. Available from Emerald: . Tourism Queensland. (2009) Tips for Green Marketing. [Internet/PDF document] Available from: . Tuck, Mary. (1976) How do we choose? London: Methuen & Co., Ltd. Winston, W., Polonsky, M. J., and Mintu-Wimsatt, A. T. (Eds.) (1997) Environmental Marketing (2nd ed.). London: Routledge. Read More