Perceived sustainability
as motivating purchase driver
Go for the experience
Liesje (E.P.H) Goldschmidt
4 February 2009
Perceived sustainability
as motivating purchase driver
Go for the experience
Liesje (E.P.H) Goldschmidt
University of Groningen, Faculty Economics and Business Business Administration: Master thesis of Marketing Management
4 February 2009
Admiraal de Ruijterweg 64-III 1056 GM Amsterdam 06-51541470
liesje@goldschmidt.ws S1334360
Supervisors: Prof. J.C. Hoekstra & E.C. Osinga
Preface
Sustainable products are hip, hot and happening. So join.
A description of a sustainable day in ordinary live! With other words how to fulfill modern, green living:
- I am not an early bird, so I love to start my day with a nice sustainable cup of coffee at the CoffeeCompany.
- Cloths to wear today: jeans of Kuyuchi, shoes of Nike ACG (cradle-to-cradle nikes), innocent sweater and Sustain t-shirt.
- Do your grocery shopping at Marqt and use your Freitag bag as shopping bag. For recipe inspiration: “innocent recipe book” (innocent, 2008) and “thuis bij Jamie” (Oliver, 2007) - Gift shopping: If the Big or Little Braun Bag of Bloomendails is familiar to you, maybe you like
the leather C2C bag, it is not a replication of the Bloomendails braun bag, but it brings back good old American holidays memories (check out www.goodforall.eu).
- Books to read: “Cradle-to-cradle” (McDonough and Braungart, 2002), “50 kansen” om je wereld iets beter te maken (Lamers and Boere, 2008), the tipping point (Gladwell, 2000), Praktisch idealisme (van den Berg and Koers, 2006) and Hot, Flat, and Crowded: Why we need a green revolution – and how it can renew America (Friedman, 2008)
- Magazines to read: Salt, Green guide of National Geographic and Green2
- Tetra pack fashion show, sustainable carton cloths at Amsterdam Fashion Week (6 designers of Fashion Institute Arnhem)
- Must see sustainable television shows: Cradle-to-Cradle Tegenlicht or one of the sustainable programs of Llink (be proactive and become a member).
- And off course, to stay healthy, drink at least one innocent smoothie a day!
- And just say thank you for being kind to one of your friends and send a postcard to your granny (she will like that).
So now you are a member of the current, green generation .
Many thanks to:
Prof. Janny Hoekstra for her continuous support, guidance in the marketing literature and the final layout of this thesis
Ernst Osinga for sharing his sustainable knowledge of SPSS, LatentGOLD and designing the statistical setup
Ynzo van Zanten for sharing your sustainable thoughts, it made me thoughtful
Niels Paauw for an absolute brilliant SuperOma journey, the journey excited by far the destination
Ine, Johan, Daan, Jeroen, Erik, Chris, Carlien, Arjen for sharing your innocent experience All the wonderful grannies who knitted the little hats, from innocence to wisdom
Rob Benjamens, Anke Verhagen, Paul Veendrick, Jolein Baidenmann for sharing your substantial business knowledge
You all made my sustainable internship and master thesis writing lots of fun, thank you!
Management summary
How the existential drive for preserving our environment becomes and/or is converted into a reason to buy or not to buy certain goods? That is the main question stated in this thesis.
Sustainability as an item is of fast growing importance in this time (Glavič et.al. , 2007; Verhoef, 2005). Its relevance is not under debate any more. Campaigns such as the Al Gore movement, books such as Cradle-to-Cradle and the development of products such as green energy, hybrid cars and recycled paper make sustainability part of our daily lives. On a similar level as communication, transportation, health care and entertainment: it is a business like any other business. However it is young industry lacking of straightforward, settled definitions and known relationships (Verhoef, 2005; Rex et.al., 2007).
Sustainability can be defined as ‘good citizenship’. All members of the global society should behave responsible towards each other and towards the earth. Consequently this means that resources should be used in such a way that they can be used by future generations as well (Brandtland et.al., 1987). Perceived sustainability is the definition given and applied on an individual consumer level. So: how do I, as an individual, act within my environment? Within the field of marketing perceived sustainability is defined as consumer perception of the sustainability practices of suppliers. How sustainable produces the supplier its products? Using nuclear power plants or destroying the rainforest? Four dimensions can be distinguished: packaging, labeling, corporate governance and interactive marketing. All of these dimensions can be linked to sustainability: e.g. recycled packaging, eco-labeling, transparent reporting and continuous consumer participation through blogging.
This is the first research where sustainability is discussed and tested with various dimensions, and which is customer-centric (from a consumer point of view). The thesis presented here explores the relationships within the field of perceived sustainability. It moves on the edge of marketing, psychological purchase behavior and ecological awareness.
purchase of smoothies of different producers was used a case study (innocent, Chiquita, AH pure fruit smoothie).
The designed regression model proved to be valid and the results clear. A significant relationship was found between consumer preferences and the quality of the product (1). In addition we found that the perceived price was not a significant variable. Perceived consumer effectiveness (2) was the second most important variable in explaining consumer preferences, thereafter the variable of availability (3). Control variables were used throughout the multivariate statistical analysis. All of this is in general agreement with the literature, however this present study and the study of Verhoef (2005) test all four variables (perceived quality, perceived availability, perceived consumer effectiveness and perceived price) in one model.
The consumer preference is mainly driven by corporate governance. In other words the look and feel of the company that one is buying from is essential in the buying decision. Eco-labels and sustainable packaging is less preferred by the consumer. Interactive marketing is least preferred. The fact that the consumer is a frequent green buyer proved to be an important variable also.
In conclusion we found that, in this time and day, perceived sustainability is a strong motivating purchase driver. Moreover it should be possible to use it successfully within any marketing strategy.
We recommend an open and transparent corporate behavior. The active involvement of consumers is an effective marketing tool and should be advocated. More research is definitely needed for a full understanding of these novel relationships, in other business fields and on a global scale.
Table of content
Preface 3
Management summary 5
Chapter 1: Introduction 9
1.1 Aim of the thesis 10
1.2 Methodology 11
1.3 Structure of the thesis 13
Chapter 2: Sustainability concepts 14
2.1 Government concepts 15
2.2 Business concepts 17
2.3 Consumer concept 20
Chapter 3: Conceptual model and theoretical framework 22
3.1 Control variables 22
3.2 Economic and marketing variables 23
3.2.1 Perceived consumer effectiveness 24
3.2.2 Perceived quality 25
3.2.3 Perceived availability 26
3.2.4 Perceived price 26
3.3 Dimensions of perceived sustainability 29
3.3.1 Sustainable packaging 29
3.3.2 Eco-labels 30
3.3.3 Corporate governance 32
3.3.4 Interactive marketing 33
Chapter 4: Research design 35
4.1 Dependent variable 35
4.2 Attributes 35
4.3 Control Variables 37
4.4 Stimulus construction and stimulus set 37
Chapter 5: Results 39
5.1 Descriptive statistics 39
5.1.1 Consumer characteristics 39
5.1.2 Purchase frequency 41
5.1.3 Profiles of conjoint analysis 43
5.2 Latent Class analyses 44
5.2.1. Defining the classes 45
5.2.2 Interpret and profile the classes 46
5.3 Regression analyses 47
5.3.1 Control variables 48
5.3.2 Economic and marketing variables 49 5.3.3 Dimensions of perceived sustainability 50
Chapter 6: Discussion, conclusions and implications 52
6.1 Discussion 52 6.2 Conclusions 54 6.3 Implications 55 6.3.1 Managerial implications 55 6.3.2 Research implications 55 References 57
Appendix A: Summaries of expert interviews 65
Appendix B: Survey 67
Appendix C: innocent family news 77
Appendix D: Frequencyof preference score per profile 79
Chapter 1: Introduction
There is a growing interest in environmental issues (Verhoef, 2005; Collins et.al., 2007). One of the key issues is sustainability. However the definition as well as the perception of this concept is unexplored territory (Glavič et.al., 2007).
Sustainability can be defined from a political point of view but also from a managerial, a social, a ecological or even an human point of view. Consumers, governments and businesses have all there own perception of the concept of sustainability. Sustainability and sustainable measures are all present in the nine sustainability concepts investigated. These concepts can be linked into one single framework. Over the years a wide variation of authors defined and commented on sustainability (Abukhader, 2008; Apaiwongse, 1994; Baker Sinkula, 2005; Braungart et.al., 2007; Chitra, 2007; Fry and Slocum Jr., 2008; Glazebrook, 2007; Hartman et.al, 2007; Marrewijk, 2003; Peattie, 2001; Rondinelli, 2007; Sinkin et. al, 2008; Varadarajan, 1992; Vitell, 2003; Zwetsloot et.al, 2004). One theory, covering all concepts, is lacking at the current time. The framework presented and perceived sustainability including dimensions is outlaid, are first steps into such a direction.
We are especially interested in the impact of perceived sustainability on the individual purchase behavior. So what motivates consumers to consume sustainable products? Are the different dimensions of perceived sustainability equally important to the consumer? Can the economic and marketing variables influence the preference for a sustainable product?
The economic and marketing variables are perceived quality, perceived availability, perceived consumer effectiveness and perceived price (Batha, 2001; Gilg et.al., 2005; Verhoef, 2005; Weatherell et.al., 2005). The common variables are well known in marketing studies and are of particular importance in the forefront research presented here. As common control variables we also choose purchase frequency and consumer characteristics (Diamantopoulos et.al., 2003; D’Souza et.al, 2007; Gilg et.al., 2005; Sanne, 2002; Verhoef, 2005).
Perceived sustainability and its dimensions and the combination with economic and marketing variables in order to explain the relationship with the consumer preferences for a sustainable product is of managerial relevance and a contribution to the academic literature. This is the first research where sustainability is discussed and tested with various dimensions, and which is customer-centric (from a consumer point of view). For managers, the precise description of the consumer’s preferences for a sustainable product can be used as directive for a sustainable business and marketing strategy, communication of the relevant dimensions will lead to better positioning of sustainable products. For the society, an increased awareness of sustainability practices and products lead to more environmentally concerned and friendly citizens.
Note: from an ecological point of view it makes sense to regard the customers as consumers. They have, by definition, an impact in the consumer cycle. They consume goods that are digested into the garbage cycle. The cradle – to – cradle concept is based upon this reasoning (McDonough and Braungart, 2002).
1.2 Aim of the thesis
The aim of the thesis is to make an in-depth analysis of the consumer preferences for any sustainable product. In the literature, sustainability is often defined as just one concept, but perceived sustainability may have many different dimensions. The challenge here is to find which dimensions of perceived sustainability actually influence the preference for a sustainable product of the consumers and are motivating purchase drivers for the consumer.
The objective
Research question
Which dimensions of perceived sustainability are motivating purchase drivers for the consumer?
Sub-research questions:
1. Which dimensions of perceived sustainability can be identified?
2. What is the relationship between perceived sustainability and preference for a sustainable product?
a. Do purchase frequency and consumer characteristics as control variables influence preference?
b. To what degree do perceived sustainability and economic and marketing variables influence preference?
1.2 Methodology
In order to analyze the issues raised, the literature is reviewed and examined to describe and explore perceived sustainability and its dimensions and the effect of the economic and marketing variables on the consumer preferences for a sustainable product. The literature findings will be the basis of qualitative and quantitative testing. To come up with in-depth analyses of the dimensions of perceived sustainability expert interviews will be held.
The empirical data collection consists of a survey among consumers of the three largest sustainable smoothie brands in the Netherlands, namely innocent drinks, Chiquita and Albert Heijn (Visser, 2007). The goal is to question different consumers segments of the three brands.
of sustainability is defined as Sustainable Corporate Performance “is in relation to the potential addition of economic, social and environmental value to the society through corporate activities. These three ‘added values’ are the components of the ‘sustainability value added’ of a company” (Gerbens-Leenes et.al., 2003).
Albert Heijn is the largest grocery store in the Netherlands, selling A-brand and private label products, for example private label Albert Heijn pure fruit smoothies. The sustainability approach of Albert Heijn is to contribute to a healthy and sustainable society. Albert Heijn has four corporate responsibility values: ‘health’, ‘sustainable trade’, ‘climate’ and ‘local engagement’ (Albert Heijn, 2006). The employees form the basis for the implementation and execution of the four core values. More specifically, the suppliers are selected based on the labor standards of the Business Social Compliance Initiative (BSCI) and the Albert Heijn foundation improves the living conditions of the employees of the fruit and vegetables suppliers in Africa. The Albert Heijn sustainability point of view is represented in the literature by the concept of Sustainable Corporate Performance.
innocent drinks1 is a smoothie company and produce smoothies out of 100% pure and fresh fruit. Firstly, they procure their ingredients ethically and the suppliers need to comply with certain minimal (sustainability) standards, such as stated by the International Labor Organization (ILO) and Rain Forest Alliance. Secondly, they use 100% recyclable packaging materials. And finally, they give 10% of their profits each year to charitable organizations in countries where this aid will be of best use. This is done through the independently managed innocent foundation. “Sustainability is about us taking responsibility for all the impacts our business has on the world around us, and moving them from negative to neutral or, better still, positive, so that the business works in harmony with the world which it operates” (innocent drinks, 2005). In the literature, innocent sustainability point of view is defined as sustainable consumption, which is finding a balance between social and economic imbalances through responsible behavior by everyone, including businesses and consumer practices(Glavič et.al, 2006).
1
Limitations
- The literature describes that the strength of acceptance of sustainable products, the availability of sustainable product and the effectiveness of the different dimensions of sustainability vary among countries (Chitra, 2007; Dolan, 2002; Rex et.al., 2007). Therefore, the geographic area of the research will be the Netherlands.
- Only commercial organizations will be investigated, because commercial organizations have the greatest challenge to find a balance between doing good for the environment, producing and financing the products which fulfill the consumers needs (Hatcher, 2004). 1.3 Structure of the thesis
Chapter 2: Sustainability concepts
Terminology in the field of sustainability is becoming important as the number of terms continues to increase along with the rapid increase in awareness of the importance of sustainability by organizations, the government and consumers. Various concepts of sustainability are used by different authors (Collins et.al., 2007, Glavič et.al., 2007; Verhoef, 2005;). The majority of definitions cause much confusion about their usage, since the meaning of some terms are on a high conceptual level, lack focus or are imprecise(Glavič et.al., 2007). The aim of this chapter is to give an overview of existing scientific knowledge of sustainability concepts. The differences between the sustainability concepts result in a framework of sustainability concepts and this will also make clear why it is relevant to define and discuss perceived sustainability.
The literature discusses sustainability from three angles: environmental production, business ethics and consumer marketing. Firstly, the journals Business Strategy & the Environment, Journal of Business & Industrial Marketing, Journal of Accounting and Public Policy and Journal of Cleaner Production are dominant in the environmental production literature (Abukhader, 2008; Apaiwongse, 1994; Braungart et.al., 2007; Peattie, 2001; Sinkin et. al, 2008). The sustainability concepts of the environmental production literature are developed to implement government rules and legal restriction to reduce or eliminate environmental impact. Secondly, the journals of business ethics literature are Journal of Business Ethics, Organizational Dynamics, Journal of Cleaner Production, Journal of Marketing, Multinational Business Review and Journal of Corporate Citizenship (Baker and Sinkula, 2005; Fry and Slocum Jr., 2008; Glazebrook, 2007; Hartman et.al, 2007; Marrewijk, 2003; Rondinelli, 2007; Varadarajan, 1992; Zwetsloot et.al, 2004). The business ethics concepts are developed due to business pressure to improve internal business processes in a sustainable way. Therefore the concepts focus on sustainable operational excellence, which focuses on internal sustainable improvement in the long run. Thirdly, Journal of Service Research, Green Management and Journal of Strategic Marketing, Journal of Macromarketing focus on the interaction of consumers when buying sustainable products, and improve insights in sustainable needs and wants of consumers (Chitra, 2007; Peattie, 2001; Vitell, 2003). Indirectly, the consumers give direction to the sustainable improvements of businesses. All the articles indicate the need to explore the consumer perspective of sustainable business practices. The classification of the different literature angles are the basis of the framework discussed in this chapter.
concepts influence the business to produce sustainable products and services. As stated in the environmental production literature governmental pressure force businesses to act sustainable, the different concepts developed due to government pressure are discussed in section 2.1. Section 2.2 discusses the various business concepts which are influenced by internal business pressure as explained within the business ethic literature. The previously described concepts are summarized in table 2.1. Section 2.3 focuses on the inexistence of a consumer concept, which should be developed due to consumer pressure.
Figure 2.1 Framework sustainability concepts
2.1 Government concepts
The main relevance to ecological marketing was the increasing amount of environmental regulation within the legal environment. Ecological marketing (Apaiwongse, 1994; Peattie, 2001) is focused on reducing the production of environmental damaging products. This concept is concerned with specific environmental problems such as air pollution, depletion of oil reserves, oil spills and the ecological impacts of synthetic pesticides. Furthermore, the emphasis is on
pollution and resource depletion particularly energy resources and on local or national concerns. The advantage of ecological marketing approach is that the practical implications of the business are well formulated and this approach is qualitative and quantitative tested. The disadvantage of ecological marketing is that the consumer influences are not considered and it reduces only a few environmental problems, it forgets for example the waste created during the production process. The following concept includes all processes which have negative impact on the environment.
The concept of eco-efficiency (Abukhader, 2008; Braungart et.al, 2007) is based on “doing more with less” and focuses on reducing the negative environmental effects of products and services. Furthermore, the concept eco-efficiency is also developed due to governmental pressures. Eco-efficiency can be explained as the design, development and distribution of a product and service which exists of minimal resources and has minimal environmental impact that satisfy consumer needs and improves the quality of life for a reasonable price (Braungart et.al, 2007; Glavič et.al., 2007). The aim is to improve the environmental quality and the utilization of natural resources. The advantages are that the environmental issues affect the production and supply chain of the business and the concept is qualitative and quantitative tested (Sinkin et.al., 2008). The disadvantage is that the concept focuses only on reduction of waste of the production and the supply chain but the waste of the consumption phase is not included. The consumption phase is part of the production process in the next concept.
Government and business concept
2.2 Business concepts
The business concepts are invented due to internal business pressures to produce sustainable product and services. The first concept to discuss is Triple P which stands for People, Planet and Profit, this concept is finding a workable balance between social justice of employees (People), environmental quality (Planet) and economic profit (Profit) (Elkington, 1997; Fry and Slocum Jr., 2008). According to Elkington (1997), a business has to focus on seven dimensions to accomplish this balance: markets, values, transparency, life-cycle technology, partnership, time-perspective and corporate governance. The unique element of the concept is the profit variable, which makes the concept attractive for businesses. Furthermore, the implementation of the concept is precisely described; therefore, the managerial implications are high. The consumer perspective is not integrated, which is the limitation of the concept.
The following concept is an extension of the Triple P concept. Corporate Social Responsibility creates a positive impact on people, planet and profit by focusing on doing the right thing which is context and situation specific (Hartman et.al, 2007; Marrewijk, 2003; Zwetsloot et.al., 2004). Doing the right things means focusing on renewable resources, selecting sustainable suppliers and protecting the supply chain, creating a learning environment for employees, sustainability reporting by measurement and assessment, corporate performance and creating shareholders value. The advantages are that the concept contains of a context and situation specific factor and the concept is empirically tested. The disadvantages are that the concept pays little attention to the consumption phase of the product.
The cradle-to-cradle concept (Braungart et.al., 2007; McDonough and Braungart, 2002;) is based on the formula “waste equals food”, which means that all materials from development stage to disposal stage are input for another product or are biodegradable, so everything is used and nothing becomes waste. This process is upcycling and has a neutral or, even better, positive impact on the environment. A unique element in this concept, is that the consumer has a specific role in the process, because the consumer of the product becomes after usage the supplier of the production process. For example, when the consumer buys cradle-to-cradle sneakers and used them, the consumer needs to send those sneakers back to the producer, so that the producer can make a new pair of sneaker.
The concept of Enviropreneurial Marketing is the implementation of environment-friendly marketing policies, strategies, and tactics initiated by a business to achieve a competitive differentiation advantage and influenced by the business opinion on the duties and responsibilities of a corporate citizen (Baker and Sinkula , 2005; Menon et.al., 1997; Varadarajan, 1992). The corporate citizen is defined as business influenceson and relationships with the rest of society in a way that minimizes the negative and maximizes the positive environmental impact by going beyond compliance standards and what is legally mandated (Glazebrook, 2007; Rondinelli, 2007). Enviropreneurial Marketing is driven by internal forces and it contains of a resource based view and directly influence firms capabilities. The main advantage is that the customer perspective is included in the strategic level of Enviropreneurial Marketing. Nevertheless, the customer point of view is not relevant in the quasi-strategic and tactical level and the concept is only tested among upper-level marketing executives.
Business and consumer concept
Sustainable marketing is managing and reducing the waste of the natural resources of product manufacturing, distribution and consumption (Fuller, 1999; Fuller and Ottman, 2004). Sustainable marketing finds a balance between satisfying customers, companies and the environment simultaneously. It focuses on operational excellence by reducing the waste of the natural resources and pollution prevention. This concept includes the consumers by exploring the consumption phase and the need to satisfy the consumer. For this reason sustainable marketing tries to integrate the business and consumer concept and could be seen as an advantage. The managerial implications are high, because the marketing strategy is detailed described. Nevertheless, the concept is not empirically tested.
Government and consumer concept
Concept Definition Author Perspective
Ecological marketing Reducing the production of environmental damaging products; with specific environmental
problems such as air pollution, depletion of oil reserves, oil spills and the ecological impacts of synthetic pesticides
Apaiwongse, 1994 Piettie, 2001
Government
Eco-efficiency “doing more with less” to reduce the negative environmental effects of products and services Abukhader, 2008; Braungart
et.al, 2007; Glavič et.al., 2007; Sinkin and Wright, 2008
Government
Sustainable Corporate Performance ‘sustainability value added’ of a company is in relation to the potential addition of economic, social
and environmental value to the society through corporate activities
Gerbens-Leenes et.al., 2003 Government & business
Triple P finding a workable balance between social justice of employees (People), environmental quality
(Planet) and economic profit (Profit)
Elkington, 1997;
Fry and Slocum Jr., 2008
Business
Corporate Social Responsibility creates a positive impact on people, planet and profit by focusing on doing the right thing which is
context and situation specific
Hartman et.al, 2007;
Marrewijk, 2003; Zwetsloot et.al., 2004
Business
Cradle-to-cradle all the products and services produced, completely go back into nature or completely reborn as
new products (upcycling), waste does not exist
Braungart et.al., 2007 McDonough and Braungart, 2002
Business
Enviropreneurial marketing the implementation of environment-friendly marketing policies, strategies, and tactics initiated by a
business to achieve a competitive differentiation advantage and influenced by the business opinion on the duties and responsibilities of a corporate citizen
Baker and Sinkula, 2005; Menon et.al.,
1997;Glazebrook, 2007; Rondinelli,
2007;Varadarajan,1992
Business
Sustainable marketing managing and reducing the waste of the natural resources of product manufacturing, distribution
and consumption
Fuller, 1999; Fuller and Ottman,2004
2.3 Consumer concept
The consumer marketing literature indicates that consumers are a major participant in the business process, because all aspects of consumer behaviour, the acquisition, use and disposition of products have an integral sustainable component (Vitell, 2003). Nevertheless, no studies can be found which can be classified as a consumer concept, because no sustainability concepts are developed due to consumer pressure. There is one model, the Hunt-Vitell Model, which explores the decision making process of sustainable consumer behaviour (Vitell, 2003). The strength of the theory lies in the detailed description of the model and it is empirical tested.
Conceptualizing sustainability in the context of consumption is relevant in the consumer perspective (Dolan, 2002). Sustainable consumption is finding a balance between social and economic imbalances through responsible behavior by everyone, including government, business and consumer practices (Dolan, 2002; Glavič et.al, 2007). As Picket-Baker and Ozaki (2008) state that products can not be completely green or sustainable: “as all products we buy, own, use and discard in our everyday lives will have negative environmental impacts at some stage in their lifecycles”. Therefore, a sustainable product is defined as a product with low or reduced environmental impact compared to other products in the same product category (the cradle-to-cradle products are excluded from this definition). And sustainable consumer behaviour is buying products from businesses (with the reputation of) reducing environmental impacts from their manufacturing processes and pro-active to reduce environmental impact in daily lives, such as walking instead of using the car, garbage separation and active member of environmental lobby group (Lee and Holden, 1999).
which environmental attributes or sustainable dimensions are relevant to the consumer preference for a sustainable product.
Chapter 3: The conceptual model and theoretical framework
The conceptual model of consumer preferences for a sustainable product incorporates two clusters of explanatory variables of consumer preferences for a sustainable product, namely economic and marketing variables and the dimensions of perceived sustainability. The model includes purchase frequency and consumer characteristics as control variables. Figure 3.1 reflects the conceptual model of this research.
Figure 3.1 Conceptual model
The control variables purchase frequency and consumer characteristics will be discussed in section 3.1. In section 3.2 the theoretical background and the underlying hypotheses of the economic and marketing variables are presented. Finally, the dimensions of perceived sustainability are explored and the hypotheses formulated (section 3.3).
3.1 Control variables
Since demographics are often included in research of sustainable products (Diamantopoulos et.al., 2003) it will be tested whether these variables have a controlled effect on the consumer
Perceived sustainability Eco-label Sustainable packaging Corporate governance Interactive marketing Control variable Purchase frequency
Economic and marketing variables
Perceived price Perceived quality Availability
Perceived consumer effectiveness
Control variable
Consumer characteristics
Gender Education
Age City
Working hours Green behavior Household size Family type
preferences for a sustainable product. Based on multiple papers, the following demographics are included:
Gender (Diamantopoulos et.al., 2003; D’Souza et.al, 2007; Ek and Söderholm, 2008; Verhoef, 2005)
Age (Diamantopoulos et.al., 2003; D’Souza et.al., 2007; Ek and Söderholm, 2008; Verhoef, 2005)
Level of education (Diamantopoulos et.al., 2003; D’Souza et.al, 2007; Ek and Söderholm 2008; Verhoef, 2005)
City (Gilg et.al. 2005; Sanne, 2002; Weatherell et.al., 2003)
Household size (D’Souza et.al, 2007; Gilg et.al, 2005; Sanne, 2002) Family type (D’Souza et.al., 2007; Gilg et.al., 2005)
In this research the demographic variables are part of the variable consumer characteristics. Two important consumer characteristics are tested as well, namely working hours (Sanne, 2002) and (historically) green behavior (McCarty and Shrum, 1994; Verhoef, 2005). Green behavior is associated with the sustainability practices of consumer in their daily lives, such as garbage separation and use of green energy. Increased sustainable experiences lead to more sharply defined preferences for a sustainable product because consumers tend to behave in a consistently sustainable manner in different situations.
The joint controlled effect of consumer characteristics (demographic variables, working hours and green behaviour) will be tested with the following hypothesis:
H1: consumer characteristics influences the preference for a sustainable product
Purchase frequency is defined as the consumer’s recall behavior, which is the average number of times a consumer buys a sustainable product (Verhoef, 2005). According to Kim and Rossi (1994) purchase frequency positively influence the preferences for (national) products. In this research the purchase frequency is a control variable. The hypothesis is stated as follows:
H2: purchase frequency positively influence the preferences for a sustainable product
3.2 Economic and marketing variables
The dependent variables sustainable consumer behavior, sustainable purchase intention, sustainable purchase decision, consumer preferences, purchase frequency and choice are explained in table 3.1.
Dependent variable Question Authors
Sustainable consumer behavior Did you behave sustainable the last year
and intended to do so in the future (buying sustainable products is included)?
Lee and Holden, 1999
Sustainable purchase intention Are you willing to buy sustainable product? Vermeir and Verbeke., 2007
Sustainable purchase decision Do you choose the sustainable product? Ek and Söderholm, 2008
Consumer preferences Do you prefer sustainable product even if it
is somewhat lower in quality and higher in price?
D’Souza et.al., 2007
Purchase frequency How often do you buy organic meat? Verhoef, 2005
Choice Have you ever bought organic meat? Verhoef, 2005
The importance of the influence of economic and marketing variables on the consumer preferences for a sustainable product is clarified and the hypotheses stated. Perceived consumer effectiveness is discussed in section 3.2.1. In section 3.2.2 and 3.2.3 the literature of perceived quality and perceived availability is reviewed. Finally, perceived price is explored in paragraph 3.2.4.
3.2.1 Perceived consumer effectiveness
Perceived consumer effectiveness (PCE) examines the extent to which a consumer perceives that what he or she buys, is actually going to impact the environment and influence future sustainable business policy (Gilg et.al., 2005). The relevance of the variable perceived consumer effectiveness has been proven in the literature (Allen and Ferrand, 1999; Kim and Choi, 2005; Lee and Holden, 1999; Roberts, 1996; Verhoef, 2005). Berger and Corbin (1992) empirically tested perceived consumer effectiveness as moderator of environmental attitudes and sustainable consumer behaviour. The research illustrate that the variable perceived consumer effectiveness both strength and form this relationship, which indicates the importance of the variable.
It has generally been found that a high level of perceived consumer effectiveness has a positive impact on the sustainable consumer behaviour (Kim and Choi, 2005; Lee and Holden, 1999; Roberts, 1996), sustainable purchase intention (Scholder et.al., 1991; Vermeir et.al., 2007) and sustainable purchase decision (Ek and Söderholm, 2008; Gilg et.al., 2005).According to Verhoef (2005) perceived consumer effectiveness is positively influencing the choice for and purchase
frequency of organic meat. And Roberts (1996) concluded that perceived consumer effectiveness is the best predictor of sustainable purchase behaviour.
A study by Lee and Holden (1999) focused on the relationship of perceived consumer effectiveness and “high-cost” and “low-cost” sustainable consumer behaviour. “High-cost” sustainable consumer behaviour include paying a premium for cleaner gasoline, environmentally-benign packaged products and reduced emission automobiles, as well as paying higher taxes to clean up the environment. “Low-cost” sustainable consumer behaviours include avoiding Styrofoam packaging, actively searching for biodegradable products and recycling waste materials. The research illustrates that consumer perceived effectiveness is positively influencing “high-cost” sustainable consumer behaviour, but not significantly associated with any of the “low-cost” sustainable consumer behaviour. The limitation of the research is that the sample population is very specific and small, because only 78 students of US University are questioned.
In conclusion, the literature review of the variable perceived consumer effectiveness suggest that it is most likely that consumers who have higher perceived consumer effectiveness are more likely to prefer sustainable products than those with lower perceived effectiveness. Thus, the hypothesis is:
H3: perceived consumer effectiveness positively influence the preferences for a sustainable
product
3.2.2 Perceived quality
Perceived quality is defined as the consumer opinion of a product and service ability to fulfill the expectations, and is based on the brand image and previous experience with the business (other) product and services (Keller, 2003). Many studies have empirically tested the relationship of perceived quality and sustainable purchase decision (Gilg et.al., 2005; Pickett-Baker and Ozaki, 2008) and sustainable consumer preferences (D’Souza et.al., 2007; Weatherell et.al., 2003); the results of perceived quality as determinant are contrary.
Perceived quality does not positively or negatively effect the purchase decision and, but consumers are unwilling to compromise quality, so the green product must function as effectively as a non-sustianable product (Gilg et.al., 2005; Pickett-Baker and Ozaki, 2008). The research of Verhoef (2005) is more specific and states that perceived quality does influence the choice of organic meat, but does not relates to the purchase frequency.
(Weatherell et.al., 2003). Perceived quality positively effects the perception of the consumers of local food, sustainable farming and food provisioning. Therefore, if the consumer is convinced by the arguments of quality, the consumer will prefer the sustainable product (D’Souza et.al., 2007). Thus, the hypothesis is stated as:
H4: perceived quality positively influence the preferences for a sustainable product
3.2.3 Perceived availability
Perceived availability is the consumer’s opinion of the availability of the product. The non-availability of products in frequently visited store will create more transaction costs for consumer and the consumer will not buy the products and services (Campo et.al., 2000). In the sustainability literature, perceived availability positively influence sustainable purchase intention (Vermeir et.al., 2007) and consumer preferences of sustainable product (Weatherell et.al., 2003). If the perceived availability is high, it will be more likely that the consumer prefer a sustainable product in comparison to alternative non-sustainable products.
According to Batha (2001) the non-availability of green products in supermarkets does not affect the sustainable consumer behaviour of British consumers, but it do negatively influence the sustainable consumer behaviour of Indian and Greece consumers, which indicates that the variable perceived availability is country dependent. In the Netherlands, perceived availability has a weak positive effect on choice for organic meat, but no effect on purchase frequency of organic meat (Verhoef, 2005). This thesis focuses on the Dutch consumer market. Hence, the hypothesis is:
H5: perceived availability positively influence the preferences for a sustainable product
3.2.4 Perceived price
Perceived price includes all the purchase costs which the consumer perceives, so the actual price is not considered (Keller, 2003). Perceived price negatively relates to sustainable consumer behaviour (Batha, 2001), sustainable purchase decision (Ek and Söderholm, 2008; Gilg et.al., 2005) and choice and purchase frequency of sustainable product (Verhoef, 2005).
The more committed sustainable consumer are the less price dependent they are in their purchase decisions (Gilg et.al., 2005). The consumers are willing to pay somewhat higher prices, but it still negatively relates to the consumer preferences for a sustainable product (D’Souza et.al,2007), which leads to the following hypothesis:
Author(s) Economic/marketing variable
Dependent variable Sample population Major findings
Batha, 2001 Perceived availability
Perceived price
Sustainable consumer behavior 132 MBA students of India, UK and
Greece
India and Greece: non-availability negatively influence the sustainable behaviour
UK: the non-availability does not influence the sustainable consumer behaviour
UK, India and Greece: price negatively influence the behaviour Berger and Corbin,
1992
PCE as moderator Environmental attitudes &
sustainable consumer behaviour
1521 Canadian adults PCE both strength and form the relationship between environmental
attitude and behaviour
D’Souza et.al., 2007 Perceived quality
Perceived price
Consumer preferences for a sustainable product
155 consumer of metropolitan and regional area in Victoria (Australia)
Consumers are less likely to compromise on product quality than on somewhat higher prices of sustainable products
Ek and Söderholm ,
2008
Perceived price PCE
Sustainable purchase decision 655 Swedish household of electricity
market
Perceived price negatively influence the purchase decision PCE positively influence the sustainable purchase decision
Gilg et.al., 2005 PCE
Perceived price Perceived quality
Sustainable purchase decision 1600 households in Devon, UK Perceived quality does not effect purchase decision
PCE has a weak positive effect on purchase decision The more committed sustainable consumer are the less price dependent they are in their purchase decisions
Kim and Choi, 2005 PCE Sustainable consumer behaviour 304 undergraduates of Midwestem
university, US
PCE directly and positively relates to sustainable consumer behaviour
Lee and Holden, 1999
PCE Sustainable consumer behaviour 78 undergraduate business students of
a major Midwestern university in US
PCE positively affects “high-cost” sustainable consumer behaviour, but does not effect “low-cost” sustainable consumer behaviour Pickett-Baker and
Ozaki, 2008
Perceived quality Sustainable purchase decision 52 mothers shopping in supermarkets
near London, UK
Consumers are unwilling to compromise quality, so the green product must function as effectively as a non-green alternative
Author(s) Economic/marketing variable
Dependent variable Sample population Major findings
Roberts, 1996 PCE Sustainable consumer behaviour 582 adult consumers of US PCE positively affects behaviour. Environmental concern, age,
liberalism, income, education and sex also affect sustainable consumer behaviour, but PCE is the best predictor.
Scholder et.al., 1991 PCE Sustainable consumer behavior 387 consumers of major
south-eastern metropolitan area in US
PCE relates positively to purchase environmentally safe products
Verhoef, 2005 Perceived availability
Perceived quality Perceived price PCE
Choice and purchase frequency 269 Dutch consumers of organic meat Perceived availability has a weak positive effect on choice but no
effect on purchase frequency
Perceived quality positively effects choice, but not purchase frequency Perceived price negatively effects choice and purchase frequency. PCE positively effects choice and purchase frequency
Vermeir and Verbeke, 2007
Perceived availability PCE
Sustainable purchase intention 456 young adults in Belgium of dairy
sustainable products
Perceived availability and PCE positively influence the sustainable purchase intention. Weatherell et.al., 2003 Perceived quality Perceived availability Perceived price
Consumer preferences 734 British adults, in urban and rural
residents
3.3 Dimensions of perceived sustainability
Sustainable packaging, eco-labels, interactive marketing and corporate governance are the dimensions of perceived sustainability. These dimensions explain the consumer preferences for a sustainable product. In this section, the literature of sustainable packaging (§ 3.1.1), eco-labels (§ 3.1.2), corporate governance (§ 3.1.3) and interactive marketing (§ 3.1.4) is reviewed and the hypothesis stated.
3.1.1 Sustainable packaging
Sustainable packaging is product packaging that is safe to handle, safe to use and is made out of recycled materials that have minimal pollution impact on living things, the ecological system and natural resources and can be (partly) recycled after consumption (Kassaye et.al., 1992; Peattie, 2001). The reduction of package material usage is becoming a major concern for consumers, businesses, governments and marketing intermediaries (Prendergast et.al., 1997; Rokka et.al., 2008). The theoretical review of the variable sustainable packaging is in table 3.3.
The research of Bone and Corey (2000) stated that ethically-interested consumers are likely to be more sustainable sensitive in decision-making packaging practices than business practitioners and the business practitioners are less aware of the negative consequences of the product packaging. The business practitioners and the ethically-interested consumers have the same moral values. The major limitation of the research is that ethically-interested consumers in the sample are consumers who donated to a major national Danish consumer group, but it is unknown if these consumers buy sustainable packaged products. Nevertheless, the research indicates the importance of the variable sustainable packaging to consumers.
The study of Bech-Larsen (1996) also supports that consumers have a personal interest in negative packaging consequences, but consumer find that the garbage problem of packaging is less important than the environmental problem of air and water pollution. The personal interest in sustainable packaging results in preferences for sustainable packaging. Surprisingly, this does not effects the actual purchase decision of the consumer. The reasons that preference for sustainable packaging does not influence the purchase decisions is due to the fact that consumers are unable to distinguish between the environmental consequences of sustainable and non-sustainable packaging, that other preferences are more important such as price and taste and that the purchase of food products is mainly a habit.
while shopping in a supermarket. The perceived costs and the social norms have a minor negative influence on the choice for sustainable packaging.
In the choice-based conjoint study of Rokka and Uusitalo (2008) the variable packaging is compared to other product attributes price, convenience of use and brand. They concluded that consumers see packaging and price as the most important attributes, followed by convenience of use (package resealability) and the least important attribute is the brand. The consumers have a clear preference for the sustainable packaged product. Thus, the following hypothesis is stated:
H7: sustainable packaging positively influence the consumer preference for a sustainable
product
3.1.2 Eco-labels
Eco-labels are an internationally accepted way to differentiate their products, position them and communicate the sustainable message and act as a guide for consumers to choose products that are sustainable (Case, 2004; D’Souza, 2000). Eco-labels are defined as certified sustainable information provided to the consumer on the product, which is accurate, relevant and meaningful (Case, 2004). The purpose of an eco-label is to eliminate the information gap between the buyer and seller (Wasik, 1996), which is only reached when an independent third party assures the consumers that the business complied published transparent sustainable standards (van Amstel 2007). The sustainability literature review of eco-labels is in table 3.4.
Author(s) Dependent variable Population sample Major findings
Bech-Larsen, 1996
Consumer preferences 72 Danish consumers (laddering study)
365 Danish consumer large cities (conjoint study)
Positive personal interest in sustainable packaging, lead to consumer preferences for sustainable packaged goods, but does not influence the actual purchase decision
Bone and Corey, 2000
Sustainable packaging 189 ethical interested Danish
consumers
143 Danish brand managers 244 Danish packaging professionals
Business practitioners (packaging professionals and brand managers) are less sustainable sensitive and less aware of the negative consequences of product packaging compared to ethically-interested consumers.
Both groups have the same moral values. Rokka and
Uusitalo, 2008
Consumer preferences 330 functional drink consumers in
Finland
Price and packaging are equally important to the consumer. Packaging convenience of use was less important and the brand is the least important to the consumer choice.
Thøgersen, 1999
Choice for sustainable packaging
633 Danish consumers Attention to the waste problem and personal obligation to
choose sustainable packaging positively influence choice for sustainable packaging. Social norms and perceived cost have a minor negative influence on the choice.
Howard and Allen (2006) suggest that eco-labels must be information about humane standard, locally grown and/or living wages, otherwise the consumer will not choose the sustainable food product. They found that standards for the humane treatment of animals are most important, followed by a standard for local origin, and for a living wage for workers involved in producing food. US grown and small scale are the least important to the consumers. The humane standard attracts women, European-American, younger people and frequent buyers of organic products. Older people with children choose the locally grown standard and living wage is preferred by Latinos.
D’Souza, Taghian and Lamb (2006) found that always reading the eco-labels positively influences the purchase intention of the consumer, even when the price is higher, but always reading the labels does not influence the purchase intention when the product is lower in quality. Therefore, the consumers are less willing to compromise on quality than on price. Satisfaction with the information on the eco-label does not influence the purchase intention if the price is higher. Most likely, but not tested, the consumers did not understood the information on the eco-labels therefore they are not willing to compromise on price. If the consumer understands the label depends on the accurate and clear meaning of the label, the knowledge of the label and the perception of business with respect to the environment.
Paying attention to the eco-label, while the consumer is shopping is important to the sustainable purchase decision. Furthermore, the eco-label must be recognized, understood, trusted and valued to the consumer otherwise the consumer will not use the eco-label in the purchase decision (Thøgersen, 2000). In Ireland consumer pay most attention to eco-labels then UK, Italy, West Germany and in East Germany little attention is paid to the eco-labels. Unfortunately, the Netherlands is not included in this research due to misinterpretation of the questions of respondents because of translation error.
There are two different kinds of eco-labels, namely negative versus positive eco-labels. Positive eco-labels are labels with the following message “Choose this product, it is better for the environment than average products” (Grankvist et.al., 2004), for instance the Rain Forest Alliance eco-label or “ik kies bewust” eco-label in the Netherlands. Negative eco-labels are labels with the information to avoid the product, “Do not choose this product, it is worse for the environment than average products” (Grankvist et.al., 2004), for example the EU energy labels D to G. The Dutch food market does not include negative eco-labels.
eco-labels. Furthermore, consumers who have an intermediate interest in sustainable issues, they are more influenced by the negative eco-label than the positive eco-label. Lastly, consumers who have a strong interest in sustainable issues are influenced by negative and positive eco-labels.
The Dutch research of Korf (2008) found that positive and negative energy eco-labels significantly influence the consumer preferences for a (relatively) sustainable automobile. Consumers react stronger to positive eco-labels than to negative eco-labels. Therefore, the following hypothesis is stated:
H8: presence of eco-label positively influence the consumer preference for a sustainable
product
3.1.3 Corporate governance
Corporate governance is defined as the business image of business ethics practices; more specific human rights, elimination of bribery and corruption, portion of the profit to charity and
Author(s) Dependent variable Population sample Major findings
D’Souza et.al.,2006
Purchase intention 155 food consumer in
Victoria (Australia)
Always reading an eco-label does positively influence the purchase intention, even when the price is higher
Always reading an eco-label does not influence the purchase intention when the quality is lower
Satisfaction with the information on the label does not influence the purchase intention when the price is higher
Grankvist et.al., 2004
Consumer preferences 40 undergraduates of
Götenberg University in Sweden, every day products
Consumers who have a weak or no interest in sustainable issues where not influenced by positive or negative eco-labels.
Consumers who have an intermediate interest in sustainable issues, they are more influenced by the negative eco-label than the positive eco-label. Consumers who have a strong interest in sustainable issues are influenced by negative and positive eco-labels
Howard and Allen, 2006
Consumer preferences 475 consumers of
Central coast of California, US
30.5 percent ranks humane, 22 % locally grown, 16.5 % living wages, 5.9 % US Grown, 5.2 % small scale as most important. In the paired comparison test, humane is most important, then locally grown and living wages of employees.
Korf, 2008 Consumer preferences 115 Dutch car users Consumers react stronger to positive energy eco-labels than to negative
energy eco-labels Thøgersen,
2000
Purchase decision 5323 consumer in (East
and West) Germany, UK, Ireland, Italy
Paying attention to the eco-label is important for the purchase decision. The eco-label must be trusted, understood and valued.
transparency of environmental impact of business processes through the entire value chain (Elkington, 2006; Rondinelli, 2007). Businesses are adopting corporate governance, ethics, fair procurement, and financial and social transparency codes both in compliance with national legal requirements and as voluntary standards of business practice.
The guidelines of Global Reporting Initiative covers four categories of social performance indicators, namely employees, consumer, providers of capital and public sector (Lamberton, 2005). These guidelines provide a clear and consistent measurement of sustainability performance. This research indicates the importance of corporate governance reporting as a direct effect on consumers, and the guidelines increase the transparency, clarity, completeness, accuracy, auditability and comparability of sustainable business practices.
Corporate governance is also promotion of the common good, where the business support or participate in activities that improve conditions in the society or for stakeholders with no expectation of direct benefits to the company, including raising money for charity and percentage of a profit to charity (Rondellini, 2007). The questioned managers find that the role of a business in a society is to generate high returns but balance contributions to the broader public good. The consumers are not included, but should be included in the development of sustainable business practices.
Both European and US companies are seeking to get a positive image with regard to sustainability, through their social and financial reports (Hartman et.al., 2007). Social reporting is seen as a tool to inform shareholders about the business sustainability policy, but consumers should be considered in future research as well.
The previous studies notice the importance of the variable corporate governance, but no direction of influence on consumer preferences is suggested. According to the experts (see appendix A), the corporate governance will positively influence the consumer preferences. Thus, the hypothesis is:
H9: corporate governance positively influence the consumer preference for a sustainable
product
3.1.4 Interactive marketing
of Katsikeas, Robson and Hulbert (2004) indicate that marketing researchers have the obligation to undertake research work in order to analyse the upcoming trend marketing sustainability and interactive marketing. The research state that online and offline consumers vary in interest and gather their purchase information differently, which probably will influence the consumer behaviour.
Blogs are part of the variable interactive marketing. Blogs are defined as a web page on which an individual or business can post opinions, news, information, pictures, videos and graphics and readers can post their own thoughts and respond to or interact with the blogger (Esteves, 2008). Blogs can be private or public, private blogs are confined to for example employees and managers of a single business and public blog can be read and respond to by anyone. Public blogs engages the customer in the creation, delivery, and dissemination of marketing messages of businesses (Singh et.al., 2008) According to Esteves (2008) there is a lack of research studies investing blogs as communication and interaction tool to the consumer.
The Influencer model of Gladwell is used to distinguish the differences between online and offline consumer. There are three types of influencers, namely Mavens, Connectors and Salespeople. Eccleston and Griseri (2008) state that “Mavens collect information on product and/or services and ask for opinions on a product or service, the Connectors enjoy meeting new people, introducing them to others they know and discuss products with other people and Salespeople persuade other people to purchase or persuade other people against purchasing a product or service.” The majority of the online British consumers are a maven, and if they are offline they operate as salespeople. The offline consumers are more salespeople and connectors. Although, more online consumers are mavens, the level of satisfaction of the online application is higher for the salespeople. The connectors, mavens and salespeople do not completely trust the information on new internet applications such as blogs, therefore all groups of influencers prefer the face-to-face contact.
Internet interactive marketing (Web 2.0) develops a close relationship with the consumer and increases the brand equity, by involving consumers in the branding process through the use of user-generated websites (e.g. blogs), social networking websites or an interactive company website (Mairinger, 2008). According to Arvidsson (2008), the interactive marketing applications on the web need to be ethical, otherwise the consumer will post negative opinions of the brand and will not co-produce the product and brand. According to the experts of this master thesis (appendix A), the variable interactive marketing should be tested and most likely positively influence the consumer preferences for a sustainable product. Therefore, this is the hypothesis:
Chapter 4: Research design
A thorough literature search was performed covering the last three decades (chapter 3). To check on the completeness of the dimensions of perceived sustainability expert interviews were executed (see appendix A for summaries). In marketing research, a rating-based conjoint study is widely accepted to evaluate consumer preferences, the product and services are defined on a limited number of attributes and a respondent receives a subset of different profiles to rate (Green and Srinivasan, 1978; Vriens, 1994). Therefore, a rating-based conjoint analysis was used to test the relationship between perceived sustainability, economic and marketing variables and the preference for a sustainable product. The purchase of smoothies of different producers was used a case study (innocent, Chiquita, AH pure fruit smoothie).
The research methodology is outlined as follows: in paragraph 4.1 the dependent variable consumer preference for a sustainable product is discussed, in paragraph 4.2 the attributes are explained, in paragraph 4.3 the control variables are explained, in paragraph 4.4 stimulus construction and stimulus set and lastly the data collection in paragraph 4.5.
4.1 Dependent Variable
The dependent variable is consumer preferences for a sustainable product, and is measured on a 10-point rating scale, whereas 1 is least preferred and 10 is the mostly preferred profile by the consumer (appendix B). Most likely, there will be a respondent bias, because each respondent rate differently. In order to reduce the respondent bias, the ratings of each consumer is standardized on individual mean and standard deviation. To be more explicit, on average one consumer rates a 4 and one consumer rates a 6. If both consumers give one profile a score of 6, the first consumer rates above average and the second consumer is rating the average. By standardizing on an individual level, the differences are considered between the consumers.
4.2 Attributes
The attributes describe the sustainable smoothie (see table 4.1). All the attributes sustainable packaging, eco-labels, corporate governance and interactive marketing have 3 levels. Sustainable packaging of a smoothie is glass, recycled plastic (e.g. PET) or recycled carton. The bottles of innocent are recycled plastic and recycled carton, Chiquita is in recycled plastic and Albert Heijn in glass or recycled plastic.
smoothie producers, but is the largest used eco-label in the Netherlands and therefore included in the research.
The corporate governance attribute consist of social report, company book about sustainable corporate behaviour and 10 percent of profit to charity. Chiquita and innocent publish a yearly social report, only innocent has a company book available for consumers about sustainable corporate behaviour and all three give money to a charity.
Lastly, interactive marketing is explained with customer service, greenblog and monthly newsletter. All three smoothiebrands have customer service; Chiquita and innocent have a greenblog and only innocent sends the consumers a monthly newsletter.
Attribute Attribute level Sustainable packaging Glass
Recycled plastic Recycled carton Corporate Governance 10% of profit to charity
Company book about sustainable corporate behaviour
Social report Interactive marketing Customer service
Green blog Monthly newsletter Eco-label
“ik kies bewust”
Rain Forest Alliance
No eco-label
Smoothiebrand
Albert Heijn
innocent
Chiquita
The economic and marketing variables perceived quality, perceived availability, perceived consumer effectiveness and perceived price are measured per smoothiebrand on a 10-point
rating scale. Therefore, they can be combined in the regression model with the attributes to measure the preferences for a sustainable smoothie.
4.3 Control variables
The control variables purchase frequency has 6 categories (see appendix B) and the respondent’s opinion is asked for the three smoothiebrands. In order to reach only smoothie consumers, a general question of the product category use is asked (question 1, appendix B). Therefore, if the respondent does not consume a smoothie, the respondent is excluded of the sample.
The consumer characteristics are part of the personal questions in the survey (appendix B) and listed as follows:
Age: open-ended question (Visser, 2007) Gender: male versus female
City: open question (Sanne, 2002; cbs, 2007) Education: 7 categories (Visser, 2007; cbs, 2007) Family type: 6 categories (cbs, 2007)
Household size: open-ended question
Green behaviour: garbage separation, use of green energy (Verhoef, 2005) and open-ended question if other sustainable products are bought (experts)
Working hours: 5 categories (cbs, 2007)
Latent class analysis was applied to reduce the number of variables of consumer characteristics and use segments instead, therefore the joint effect of the consumer characters can be measured in the regression analysis. LatenGold is used as statistical tool, because it provides the best description of the clusters or classes (Magidson and Vermunt, 2004).
4.4 Stimulus construction and stimulus set
All the attributes are used to explain one profile, so a full-profile approach is applied (Hair et.al., 2006). The profiles (stimulus) will be verbally and if possible visually (see table 4.1) presented to the respondent, to make the profile as realistic as possible. The full-factional design results in 3 x 3 x 3 x 3 x 3 = 243 different profiles, therefore an orthogonal fractional design is used to reduce the amount of profiles to 16 profiles (see appendix B; Hair et.al., 2006).
4.5 Data collection
