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Marketing
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Theory, and Research
HAWORTH Marketing Resources
Innovations in Practice & Professional Services
William J. Winston, Senior Editor
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EnvironDlental
Marketing
Strategies, Practice,
Theory, and Research
~ ~~o~;~~n~R~up
NEWYORK AND LONDON
First published by
© 1995 by The Haworth Press, Inc. All rights reserved. No part of this work may be reproduced
or utilized in any form or by any means, electronic or mechanical, including photocopying,
microfilm and recording, or by any information storage and retrieval system, without permission
in writing from the publisher. Printed in the United States of America.
Environmental marketing: strategies, practice, theory, and research I Michael Jay Polonsky, Alma
T. Mintu-Wimsatt, editors.
p. cm.
Includes bibliographical references and index.
ISBN 1-56024-927-7 (alk. paper)
1. Green marketing. 2. Product management-Environmental aspects. 3. Social responsibility
of business. 1. Polonsky, Michael J. II. Mintu-Wrns att, Alma T.
HF 5413.E58 1995
658.8'02--dc20 1-56024-928-5 94-28993
CIP
Publisher's Note
The publisher has gone to great lengths to ensure the quality of this reprint
but points out that some imperfections in the original may be apparent.
CONTENTS
Foreword xvii
Ros Kelly
Preface xix
SECTION I. INTRODUCTION
Chapter 1. Ecological Imperatives and the Role
of Marketing 3
Jagdish N. Sheth
Atul Parvatiyar
Introduction 3
The Ecological Imperative 5
Marketing's Role in Sustainable Development 6
Corporate Strategies for Sustainable Marketing 8
Government Intervention for Sustainable Development 14
Summary and Conclusions 18
SECTION II. RE-EVALUATING THE TENETS
OF MARKETING
Chapter 2. The Eco-Marketing Orientation: An Emerging
Business Philosophy 23
Morgan Miles
Linda S. Munilla
Introduction 23
Purpose 24
The Influence of Environmental Sensitivity
on Organizational Style, Climate, and Culture 25
Determination of Business Orientation 26
Proposition 28
Support for an Eco-Marketing Orientation as a Strategic
Response to Environmental Dynamics 30
The Adoption of an Eco-Marketing Orientation 33
Conclusion 33
Chapter 3. Environmental Marketing: Bridging
the Divide Between the Consumption Culture
and Environmentalism 37
Robert D. Mackoy
Roger Calantone
Cornelia DrOge
Introduction 37
Definition of Terms 38
Classification of Environmental Arguments:
The Framework for Analysis 39
Environmental Marketing: A Holistic View 46
Identification of Environmental Marketing Approaches 48
Conclusion 52
Chapter 4. Marketing's Linear-Hierarchical Underpinning
and a Proposal for a Paradigm Shift in Values to Include
the Environment 55
M. Bill Neace
Introduction 55
Western Society's View of the World and the Linear
Economic Model 56
Critique of the Linear-Hierarchical Model 59
Environmental View of Planet Earth 62
Merging the Two Models 65
Marketing in a Biocentric Economic Paradigm 66
SECTION III. PROFILING THE ENVIRONMENTALLY
CONSCIOUS CONSUMER
Chapter 5. An Examination of the Conserving Consumer:
Implications for Public Policy Formation in Promoting
Conservation Behavior 77
Gregory M. Pickett
Nonnan Kangun
Stephen J. Grove
Introduction 77
The Ecologically Conscious Consumer 78
Research Objectives 80
Methodology 81
Procedure 86
Results 87
Implications for Public Policy in Fostering Conserving
Behavior 93
Managerial Implications 95
Conclusions 97
Chapter 6. Eco-Attitudes and Eco-Behaviors in the New
German States: A 1992 Perspective 101
Scott D. Johnson
Denise M. Johnson
Introduction 101
East German Environmental Issues 102
Methodology 103
Findings 107
Discussion 113
Limitations 114
Conclusion 114
Chapter 7. Ecologically Concerned Consumers
and Their Product Purchases 119
T. Bettina Cornwell
Charles H SchwepkeT; fr.
Introduction 119
Packaging in the Solid Waste Stream 121
Packaging Reduction 121
Profiling the Ecologically Concerned Consumer 126
Method 135
Results 139
Summary and Implications 145
Chapter 8. Implications of Understanding Basic Attitude
Change Processes and Attitude Structure for Enhancing
Pro-Environmental Behaviors 155
Stephen M. Smith
Curtis P. Haugtvedt
Introduction 155
Understanding the Bases of Pro-Environmental Attitudes 157
Discussion 166
Summary of Implications for Marketing 167
Summary of Implications for Research 169
SECTION IV. GREEN-BASED PRODUCT TRENDS
Chapter 9. Green-Based Innovation: Sustainable
Development in Product Management 179
Hector R. Lozada
Alma T. Mintu-Winlsatt
Introduction 179
What We Call Green Marketing 181
The Environmental Revolution's Second Wave 182
From Limits to Growth to Sustainable Development 183
Over-Hyped "Greening" and Consumer Skepticism 185
Innovation and Green Marketing 187
The Greening of a Triad 190
Conclusion Without Closure 194
SECTION ~ WHAT ABOUT GREEN ADVERTISING?
Chapter 10. Cleaning Up Green Marketing Claims:
A Practical Checklist 199
Michael Jay Polonsky
Introduction 199
Some Past U.S. and Australia Experience 202
How Green Marketing Fits in the SWOT Analysis 207
How a Checklist Assists Firms 216
The Checklist 216
Conclusion 221
Chapter 11. A Classification Schema for Environmental
Advertising Claims: Implications for Marketers
and Policy Makers 225
Les Carlson
Norman Kangun
Stephen J. Grove
Introduction 225
The Rise of Environmental Concern Among Marketers 227
Method 229
Results 231
Discussion 233
Managerial Implications 234
Conclusions 236
SECTION VI. REVERSE CHANNEL SYSTEMS
Chapter 12. A Typology of Reverse Channel Systems
for Post-Consumer Recyclables 241
Donald A. Fuller
JeffAllen
Introduction 241
Post-Consumer Recycling: Background 242
The Concept of Reverse Channel System 245
A Typology of Reverse Channel Systems 247
Discussion 256
SECTION VII. THE GREEN MOVEMENT AND ITS
IMPLICATIONS FOR EFFECTIVE MARKETING
STRATEGY
Chapter 13. Behaviors of Environmentally Concerned
Firms: An Agenda for Effective Strategic
Development 269
C. Anthony di Benedetto
Rajan Chandran
Introduction 269
Environmentally Oriented Strategies Employed by Firms 274
Environmental Policies Implemented by Governments
and Retailers 279
Recommendations and Conclusions 283
Chapter 14. In Search of Market Segments
for Green Products 293
Alma T. Mintu- Wimsatt
Don Michael Bradford
Introduction 293
Four Potential Market Segments 295
Problems Associated with each Market Segment 299
Choosing the"Right" Market and Strategy Formulation 302
Conclusions 303
SECTION VIII. GREEN STRATEGY AND PUBLIC
POLICY
Chapter 15. Voluntary Reaction to Green Policies
Among Market-Mavens: An Application of the
Parallel-Political Marketplace Conceptualization 307
Tom Suraphol Apaiwongse
Introduction 307
The Parallel-Political Marketplace Conceptualization 309
Research Conceptualization 313
Research Methodology 319
Data Analysis 320
Implications and Conclusions 330
SECTION IX. GREENING WITHIN THE CONTEXT
OF MACRO-MARKETING
Chapter 16. Green Marketing and Selling Brotherhood 343
Joshua L. Wiener
Tabitha A. Doescher
Introduction 343
Social Dilemmas: An Overview 344
Solving Social Dilemmas 345
The Barriers to Cooperation 347
Overcoming the Barriers to Cooperation 350
Implications 358
SECTION X. AN INTERNATIONAL CASE STUDY
Chapter 17. Environmental Issues in the Freight
Transport Industry: A Qualitative Analysis of Key
Stakeholders' Perceptions 363
Bodo B. Schegelmilch
Adamantios Diamantopoulos
Greg M. Bohlen
Introduction 363
The Greening of the Transport Industry 365
Methodology 368
Findings 370
The Environment and Freight Transport 370
Determinants of Modal Choice in Freight Transport 373
Transport Policy Issues 375
Expected Influences on "Greening" Freight Transport 378
Discussion and Conclusions 381
Index 393
ABOUT THE EDITORS
like greenhouse gases and global warming. Other issues are also
being examined on a country by country basis.
In the practice of marketing, the phrase "green marketing" has
become quite popular. * The conceptualization of green marketing
re-evaluates the very tenants of our consumption society. For exam-
ple, is the satisfaction of human needs and wants necessarily detri-
mental to our environment? Herein lies the dilemma posed by green
marketing. Without continued support from the physical environ-
ment, the means to satisfy the needs and wants of consumers will be
curiously absent.
While the above philosophical debate is important, it is not the
sale component of green marketing. Other issues need to be ad-
dressed, such as:
• How can public policy makers modify consumer behavior?
• How do firms use green marketing claims?
• Can firms be environmentally friendly while still achieving
"acceptable" profit levels?
• How do consumers view green products?
The main objective of this book is to introduce readers to a
number of green marketing issues, such as the above questions. The
materials included are presented to assist both practitioners and
academics to better understand the implications of green marketing.
However, from a practical standpoint, we will not be able to com-
prehensively cover all topics. Nonetheless, we hope that by present-
ing material relating to several green marketing issues, we will
increase readers' awareness of how these issues can be integrated
into marketing theory, practice, and research.
Upon reading this book, several unique qualities will become
evident. First, we have included articles that are both conceptual
and empirical in nature. This was done to represent the broad spec-
trum of work being undertaken in this topical area. Second, several
internationally renowned scholars were invited to write green mar-
keting articles. These eminent authors provided insightful analyses
REFERENCES
AMA (1991), -"S.tudy Spots Global Marketing Trends," Marketing News, 25:21
(October 14), p. 9.
Kanter, Rosabeth Moss (1991), "Transcending Business Boundaries: 12,000
World Managers View Change," Harvard Business Review (May & June), pp.
151-164.
SECTION I.
INTRODUCTION
Chapter 1
Ecological Imperatives
and the Role of Marketing
Jagdish N. Sheth
Atul Parvatiyar
INTRODUCTION
Sustainable Marketing
New Marketing
Orientation
Current Marketing
Orientation
Consumption
Marketing
conflict with the environmental needs. In fact, the two needs occur
concurrently. People need and want to coexist with nature. The
sooner this is understood, the better it will be for our discipline and
our society. It is necessary to change the mindset that believes that
what is good for one cannot be good for the other.
Those companies who make these shifts toward helping us
achieve sustainable development will do more than clean up or pre-
vent their own pollution. They will make and distribute products
more efficiently, worty about their products' lifelong environmental
impact, plan for their products' recycling, and get their suppliers to
also follow suit. This may require a new mindset, new tools, and
adjustments throughout the organization. Some companies like 3M,
Dow Chemical, AT&T and BMW have already started work in this
direction (Smith 1992). Such a marketing approach that promotes
sustainable development and protection of our ecosystem can be
called "sustainable marketing."
CORPORATE STRATEGIES
FOR SUSTAINABLE MARKETING
Reconsumption
Companies need to think not just about the impact of their prod-
uct in the hands of the consumer, but also the process by which the
product is made and sold. They have to be concerned about every
product's "eco-balance," the minimization of risks and impacts
throughout its life cycle, and the resources required to make and
dispose of it. A new marketing approach promoting "reconsump-
tion"-the ability to use and reuse goods in whole or in part, over
several use-cycles or generations-can become the industrial ideal of
an economic system. Developing products that can be reconsumed
over several generations and educating the consumers then become
the tasks of marketers. There is already evidence that products
made of high-density plastics, ceramics, and rare metals have a far
lesser impact on our fast depleting natural resources than steel,
aluminum, or other metals, because they possess higher strength
appropriate for facilitating reconsumption. Those companies that
succeed in developing such products and in convincing consumers
regarding their benefits will have competitive advantage over others
as consumers become more conscious about the ecosystem. This
requires a new thinking about product life-cycle usage.
Life-cycle usage implies life-cycle responsibility. Marketing
managers geared towards thinking that their role and responsibili-
ties end with the transaction exchange will not be able to cope with
this new situation. Conceptual and operational plans will be re-
quired to manage such responsibility. Conscious strategies that pro-
mote reconsumption could provide the competitive advantage to
many products. This has already been demonstrated in the case of
some environmentally sound products that have commanded almost
25% premium. For instance, people typically pay more for organi-
cally grown food. Similarly, Germany's AEG, a producer of white
goods, recovered from near bankruptcy in the early 1980s by
manufacturing a washing machine that used less detergent, energy,
and water than its rivals (Caimcross 1992).
Sustainable marketing means more than pollution reduction and
life-cycle responsibility. Businesses will be challenged to move
toward "zero pollution," "zero waste," and redirection of product
development efforts to meet ecological needs. The goal will be to
•^4
-^Redirectton of Reorientatton^
Customer ofthe
. Needs Marketing Mix
>v and
\wants^—
Corporate : : : : : : :-: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :l
IReconsumption ,
Strategy . Reorganizaron
Sustainablel
I Regulatory \
Marketing I Government
\ Mandates and Intervention
Participaron
\ Poticies Strategies for Sustainable Marketing
FIGURE 1.2.y*
" ^ R e f o r m of
Productlon and PromotionN
Consumption of
\^rocesses Programs^
Introduction 11
will favor those suppliers that carry products which help uplift their
image as environmentally friendly organizations. The opportunities
associated with proactive leadership far outweigh the risks.
Reorienting the marketing mix can lead to shifts in customer needs
and also what we offer to the customers for consumption. Packaging,
product-mix variables, and long lifetime warranties would be actions
aimed at delivering ecologically beneficial offerings and advertising,
labeling, and reorientation of selling efforts would help redirect cus-
tomer needs for sustainable development.
Reorganization
Commitment to a vision of sustainable marketing must translate
into strategies and action plans. This may often involve reorganiza-
tion, restructure, and redesign of many processes and systems with-
in a corporation. For example, some of these changes could include:
GOVERNMENT INTERVENTION
FOR SUSTAINABLE DEVELOPMENT
Environmental policy is inevitably interventionist. Without inter-
vention by the government, our environment cannot be fully pro-
tected (Caimcross 1992). Although the forces of unfettered com-
petition can destroy the environment, this does not mean that we
should replace markets with government. Such systems of absolute
control by the government have not worked. This is made apparent
by the scope of environmental catastrophe in the state-run countries
of Eastern Europe. Bad governmental policies can further ruin the
environment, even more so than unfettered competition. It is there-
fore important to identify mechanisms that the government can use
to induce change. In this section we identify those mechanisms of
governmental intervention that are necessary for environmental im-
provement. When free market process will not sufficiently promote
sustainable development, government mandate is recommended.
However, governmental intervention that too suddenly disrupts our
industry and business practices could be catastrophic. Certainly,
governmental measures must be strong enough to encourage every-
one to follow the path of sustainable development and discourage
those practices that cause environmental degradation. Yet these
measures should be based on prudence (without delaying imple-
Introduction 15
Regulation
Reforms
For sustainable development, major restructuring and reform of
cultural, social, and political mores is in order. The systemic nature
of these issues means that we recognize the linkages between pro-
duction and consumption practices in most nations. Consumption
reforms as well as production reforms must occur simultaneously.
The commitment of the government towards such refonns is criti-
cal. A clear path in this direction would be that of raising the level
of knowledge about environmentally sustainable consumption and
production processes. Governments may have to invest in educa-
tional programs that educate consumers on how to effectively re-
duce their use of energy and other resources, reconsume products,
and reduce wastage.
There is also a need to reform institutional practices that are wide-
ly accepted but dysfunctional for environmental purposes. For exam-
ple, most pricing and accounting practices do not place the cost of
using irreplaceable natural resources or emission of wastes and pol-
lutants need to be changed. Firms inability to internalize all costs in
decision-making yields a distorted view of costs and it is an institu-
tional failure. Refonning production processes, marketing practices,
and rewards for employee perfo1TI1ance may all require government
mandates at least in the short run so that we shed our dysfunctional
practices and adopt the path of sustainable development.
Reform of political institutions and orientations may also be
necessary for a reordered world. The international security system
which features more concern for economic and environmental
questions and relatively less for military concerns will soon have to
be adopted. This may require reorganization or expansion of some
of the formal institutions of government or international bodies that
are vested with responsibilities relating to security, environment, or
economy. It includes redefining the roles and authority of these
formal institutions so that they can function effectively for the new
task at hand.
Promotion
Through such market interventions as pollution taxes and
charges, tradable pollution pennits, deposit refund systems, perfor-
Introduction 17
REFERENCES
Cairncross, Frances (1992), Costing the Earth: The Challenge for Governments,
the Opportunities for Business, Boston, Mass.: Harvard Business School Press.
Carter, Steve (1986), "Marketing in Less Developed Countries-Time for Dedi-
cated Marketing Systems not Adaptive Transfer?" Public Enterprise, 6 (Feb-
ruary),pp. 107-120.
Chandler, William U. (1990), "Development and Environmental Change," Eco-
nomic Impact, 71 (Summer), pp. 18-25.
Coddington, Walter (1990), "How to Green Up Your Marketing Mix," Advertis-
ing Age, 3 (September), p. 30.
Cracco, Etienne and Jacques Rostenne (1971), "The Socio-Ecological Product,"
MSU Business Topics, 19 (Summer), pp. 28-29.
Cravens, David W. (1974), "Marketing Management in an Era of Shortages,"
Business Horizons, 17, (February), pp. 79-85.
Davis, Joel (1992), "Ethics and Environmental Marketing," Journal ofBusiness
Ethics, 11, pp. 81-87.
20 ENVIRONMENTAL MARKETING
Preface
Silver, Marc (1990), "Seals for the Times," U.S. News and
World Report, (November),81-85.
Lewis, Paul (1992), "The Earth Summit," The New York Times,
(June 15), AI.
Tosi, Henri, Ramon Aldag, and Ronald Storey (1973), "On the
Measurement of the Environment: An Assessment of the
Lawrence and Lorsch Environmental Uncertainty Scales,"
Administrative Science Quarterly, 18 (March), 27-36.