IN 1994. Philips launched the "EarthLight,"a super energy-efficient compact fluores-cent light (CFL) bulb designed to be anenvironmentally preferable substitute forthe traditional energy-intensive incandes-cent bulb. The CFL's clumsy shape, however,was incompatible with most conventionallamps, and sales languished. After study-ing consumer response. Philips reintro-duced the product in 2000 under the name"Marathon," to emphasize the bulb's five-year life. New designs offered the look andversatility of conventional incandescentlight bulbs and the promise of more than$20 in energy savings over the product'slife span compared to incandescent bulbs.The new bulbs were also certified by the

AVOIDINGGREEN MARKETING

MYOPIWAYS TO IMPROVE CONSUMER APPEAL

FOR ENVIRONMENTALLY PREFERABLE PRODUCTS

by Jacquelyn A. Ottman,Edwin R. Stafford,

and Cathy L. Hart

U.S. Environmental Protection Agency's(EPA) Energy Stai" label. RepositioningCFL bulbs' features into advantages thatresonated with consumer valuescon-venience, ease-of-use. and credible costsavingsultimately sparked an annualsales growth of 12 percent in a matureproduct market.'

Philips" experience provides a valuablelesson on bow to avoid tbe common pit-fail of "green marketing myopia." Pbilipscalled its original entry "EarthLigbt" tocommunicate the CFL bulbs' environmen-tal advantage. While noble, the benefitappealed to only the deepest green nicheof consumers. The vast majority of con-sumers, however, will ask, "If I use 'green'products, what's in it for me?" In practice,green appeals are not likely to attract main-stream consumers unless they also offera desirable benefit, such as cost-savingsor improved product pertbtniance.- Toavoid green marketing myopia, marketersmust fulfill consumer needs and interestsbeyond what is good for the environment.

over foreign oil dependency, and calls forenergy conservation are creating businessopportunities for energy-efficient products,clean energy, and other environmentally-sensitive innovations and productscol-lectively known as "cleantech*"* (see thebox on page 26). For example, PulitzerPrize-winning author and New York Timescolumnist Thomas L. Friedman argues thatgovernment policy and industry shouldengage in a "geo-green" strategy to pro-mote energy efficiency, renewable energy,and other cleantech innovations to helpalleviate the nation's dependency on oilfrom politically conflicted regions of theworld.'' Friedman asserts that such inno-vations can spark economic opportunityand address the converging global chal-lenges of rising energy prices, terrorism,climate change, and the environmentalconsequences of the rapid economic devel-opment of China and India.

To exploit these economic opportuni-ties to steer global commerce onto a moresustainable path, however, green products

either succeeded or failed in the market-place over the past decade, some impor-tant lessons emerge for crafting effectivegreen marketing and product strategies.'"Based on the evidence, successful greenproducts are able to appeal to mainstreamconsumers or lucrative market niche.s andfrequently command price premiums byoffering "non-green" consumer value(such as convenience and performance).

Green Marketing MyopiaDefined

Green marketing must satisfy twoobjectives: improved environmental qual-ity and customer satisfaction. Misjudgingeither or overemphasizing the former atthe expense of the latter can be termed"green marketing myopia." In I960, Har-vard business professor Theodore Lev-itt introduced the concept of "marketingmyopia" in a now-famous and influentialarticle in the Harvard Business ReviewJ^

GREEN MARKETING MUST SATISFY TWO OBJECTIVES:IMPROVED ENVIRONMENTAL QUALITY

AND CUSTOMER SATISFACTION.

Although no consumer product has azero impact on the environment, in busi-ness, the terms "green product" and "envi-ronmental product" are used commonlyto describe those that strive to protect orenhance the natural environment by con-serving energy and/or resources and reduc-ing or eliminating use of toxic agents, pol-lution, and waste.' Paul Hawken, AmoryLovins. and L. Hunter Lovins write intheir book Natural Capitalism: Creat-ing the Next buhtstriai Revolution thatgreener, more sustainable products needto dramatically increase the productiv-ity of natural resources, follow biological/cyclical production models, encouragedematerialization, and reinvest in andcontribute to the planet's "natural" capi-tal.^ Escalating energy prices, concerns

must appeal to consumers outside thetraditional green niche.'' Looking at sus-tainability from a green engineering per-spective, Arnulf Grubler recently wrotein Environment., "To minimize environ-mental impacts by significant orders ofmagnitude requires the blending of goodengineering with good economics as wellas changing consumer preferences."^ Themarketing discipline has long argued thatinnovation must consider an intimateunderstanding of the customer,'' and aclose look at green marketing practicesover time reveals that green productsmust be positioned on a consumer valuesought by targeted consumers.

Drawing from past research and ananalysis of the marketing appeals andstrategies of green products that have

In it, he characterized the common pit-fall of companies' tunnel vision, whichfocused on "managing products" (that is,product features, functions, and efficientproduction) instead of "meeting custom-ers' needs" (that is, adapting to consumerexpectations and anticipation of futuredesires). Levitt warned that a corporatepreoccupation on products rather thanconsumer needs was doomed to failurebecause consumers select products andnew innovations that offer benefits theydesire. Research indicates that many greenproducts have failed because of greenmarketing myopiamarketers' myopiclocus on their products' "greenness" overthe broader expectations of consumers orother market players (such as regulatorsor activists).

24 ENVIRONMENT VOLUME 48 NUMBER 5

For example, partially in response tothe 1987 Montreal Protocol, in whichsignatory countries {including the Unit-ed States) agreed to phase out ozone-depleting chlorotluorocarbons (CFCs) by2000. Whirlpool (in 1994) launched the"Energy Wise" refrigerator, the fust CFC-free cooler and one that was 30 percentmore efficient than the U.S. Departmentof Energy's highest standard.'- For itsinnovation. Whirlpool won the "GoldenCarrot," a $30 million award packageof consumer rebates from the Super-Efficient Refrigerator Program, spon-sored by the Natural Resources DefenseCouncil and funded by 24 electric utili-ties. Unfortunately, Energy Wise's saleslanguished because the CFC-free ben-efit and energy-savings did not offset its$100 to $150 price premium, particularlyin markets outside the rebate program,and the refrigerators did not offer addi-tional features or new styles that con-sumers desired." General Motors (GM)and Ford encountered similar problemswhen they launched their highly publi-cized EV-I and Think Mobility electricvehicles, respectively, in the late 1990s toearly 2(X)0s in response to the 1990 zero-emission vehicle (ZEV) regulationsadopted in California.'"' Both automakersbelieved their novel two-seater cars wouldbe market successes (GM offered the EV-1in a lease program, and Ford offered ThinkMobility vehicles as rentals via the Hertzcar-rental chain). Consumers, however,found electric vehicles' need for constantrecharging with few recharging locationstoo inconvenient. Critics charged that theautomakers made only token efforts tomake electric cars a success, but a GMspokesperson recently explained, "Wespent more than $1 billion to produceand market the vehicle, [but] fewer than800 were leased."'-'' Most drivers were notwilling to drastically change their drivinghabits and expectations lo accommodateelectric cars, and the products ultimatelywere taken off the market."*

Aside from offering environmentalbenefits that do not meet consumer pref-

erences, green marketing myopia canalso occur when green products fail toprovide credible, substantive environ-mental benefits. Mobil's Hefty photo-degradable plastic trash bag is a case inpoint. Introduced in 1989, Hefty packagesprominently displayed the term "degrad-able" with the explanation that a specialingredient promoted its decompositioninto harmless particles in landfills "acti-vated by exposure to the elements" suchas sun, wind, and rain. Because mostgarbage is buried in landfillsthat allow limited exposureto the elements, making deg-radation virtually impossi-ble, the claim enraged envi-ronmentalists. Ultimately,seven state attorneys gen-eral sued Mobil on chargesof deceptive advertisingand consumer fraud. Mobilremoved the claim from itspackaging and vowed to useextreme caution in makintienvironmental claims inthe future.'^

Other fiascos have con-vinced many companies andconsumers to reject greenproducts. Roper ASW's 2002"Green Gauge Report" fmdsthat the top reasons consumers do notbuy green products included beliefs thatthey require sacrificesinconvenience,higher costs, lower performancewith-out significant environmental benefits.'**Ironically, despite whal consumers think,a plethora of green products availablein the marketplace are in fact desirablebecause they deliver convenience, loweroperating costs, and/or better pertbnnance.Often these are not marketed along withtheir green benefits, so consumers do notimmediately recognize them as green andform misperceptions about their benefits.For instance, the appeal of premium-pricedMarathon and other brands of CFL bulbscan be attributed to their energy savingsand long life, qualities that make themconvenient and economical over time.

When consumers are convinced of thedesirable "non-green" benefits of environ-mental products, they are more inclined toadopt them.

Other environmental products havealso scored market successes by eitherserving profitable niche markets or offer-ing mainstream appeal. Consider the Toy-ota Prius, the gas-electric hybrid vehiclethat achieves about 44 miles per gallonof gasoline,''' In recent years, Toyota'sproduction has hardly kept pace with

the growing demand, with buyers endur-ing long waits and paying thousandsabove the car's sticker price.-" Conse-quently, other carmakers have scrambledto launch their own hybrids.-' However,despite higher gas prices, analysts assertthat it can take 5 to 20 years for lowergas expenses to offset many hybrid cars'higher prices. Thus, economics alonecannot explain their growing popularity.

Analysts offer several reasons for thePrius' market demand. Initially, the buzzover the Prius got a boost at the 2003Academy Awards when celebrities suchas Cameron Diaz, Harrison Ford, SusanSarandon, and Robin Williams aban-doned stretch limousines and oversizedsport utility vehicles, arriving in Priusesto symbolize support for reducing Anier-

JUNE 2006 ENVIRONMENT 25

ica's dependence on foreign oil,-- Sincethen, the quirky-looking Prius' badge of"conspicuous conservation" has satis-fied many drivers' desires to turn headsand make a statement about their socialresponsibility, among them Google found-ers Larry Page and Sergey Brin, columnistArianna Huffington, comic Bill Maher,and Charles, Prince of Wales.-^ ^ TTie Priusultimately was named Motor Trend's. Carof the Year in 2004. The trendy appealof the Prius illustrates that some greenproducts can leverage consumer desires

for being distinctive. Others say the Priusis just fun to drivethe dazzling digitaldashboard that offers continuous feedbackon fuel efficiency and other car opera-tions provides an entertaining drivingexperience. More recently, however, thePrius has garnered fans for more practi-cal reasons, A 2006 Maritz Poll fmds thatowners purchased hybrids because of theconvenience of fewer fill-ups, better per-formance, and the enjoyment of drivingthe latest technology.-'* In some states,the Prius and other high-mileage hybrid

vehicles, such as Honda's Insight, aregranted free parking and solo-occupancyaccess to high occupancy vehicle (HOV)lanes.--'' In sum, hybrid vehicles offer con-sumers several desirable benefits that arenot necessarily "green" benefits.

Many environmental products havebecome so common and widely distrib-uted that many consumers may no longerrecognize them as green because they buythem for non-green reasons. Green house-hold products, for instance, are widelyavailable at supermarkets and discount

EMERGING AGE OF CLEANTECH

In a 1960 Harvard Business Reviewarticle. Harvard professor TheodoreLevitt introduced the classic conceptof "marketing myopia" to characterizebusinesses" narrow vision on productfeatures rather than consumer benefits.'The consequence is that businesses focuson making better mousetraps rather thanseeking better alternatives for control-ling pests. To avoid marketing myopia,businesses must engage in "creativedestruction," described by economistJoseph Schumpeter as destroying exist-ing products, production methods, mar-ket structures and consumption patterns,and replacing them with ways that bettermeet ever-changing consumer desires,-The dynamic pattern in which innova-tive upstart companies unseat establishedcorporations and industries by capital-izing on new and improved innovationsis illustrated by history. That is, thedestruction of Coal Age technologies byOil Age innovations, which are beingdestroyed by Information Age advancesand the emerging Age of Cleantechclean, energy-and resource efficientenergy technologies, such as thoseinvolving low/zero-emissions, wind,solar, biomass, hydrogen, recycling, andclosed-loop processes.'

Business management researchersStuart Hart and Mark Milstein arguethat the emerging challenge of globalsustainability is catalyzing a new roundof creative destruction that offers"unprecedented opportunities" for newenvironmentally sensitive innovations.

markets, and products.^ Throughout thetwentieth century, many technologiesand business practices have contributedto the destruction of the very ecologicalsystems on which the economy and lifeitself depends, including toxic contami-nation, depletion of fisheries and for-ests, soil erosion, and biodiversity loss.Recent news reports indicate, however,that many companies and consumers arebeginning to respond to programs to helpconserve the Earth's natural resources,and green marketing is making a come-back,'^ The need for sustainability hasbecome more acute economically assoaring demand, dwindling supplies,and rising prices for oil, gas, coal, water.and olher natural resources are beingdriven by the industrialization of popu-lous countries, such as China and India.Politically, America's significant relianceon foreign oi! has become increasinglyrecognized as a security threat. Globalconcerns over climate change have led141 countries to ratify the Kyoto Pro-tocol, the international treaty requiringthe reduction of global warming gasescreated through the burning of fossilfuels. Although the United States hasnot signed the treaty, most multinationalcorporations conducting business in sig-natory nations are compelled to reducetheir greenhouse gas emissions, andmany states (such as California) and cit-ies (such as Chicago and Seattle) haveor are initiating their own global warm-ing gas emission reduction programs.**State and city-level policy incentives and

mandates, such as "renewable portfoliostandards," requiring utilities to provideincreasing amounts of electricity fromclean, renewable sources such as windand solar power, are also driving cleanertechnology markets.

While some firms have respondedgrudgingly to such pressures for moreefficient and cleaner business prac-tices, others are seizing the the clean-tech innovation opportunities for newtwenty-first-century green products andtechnologies for competitive advantage.Toyota, for instance, plans to offer anail-hybrid fleet in the near future to chal-lenge competitors on both performanceand fuel economy.' Further, Toyotais licensing its technology to its com-petitors to gain profit from their hybridsales as well. General Electric's highlypublicized "Ecomagination" initiativepromises a greener world with a plan todouble its investments (to $ 1,5 billionannually) and revenues (to $20 billion)from fuel-efficient diesel locomotives,wind power, "clean" coal, and othercleaner innovations by 2010,** Cleantechis attracting investors looking for the"Next Big Thing," including GoldmanSachs and Kleiner Perkins Caufield &Byers.'' Wal-Mart, too, is testing a sus-tainable 206,0(X)-square foot store designin Texas that deploys 26 energy-savingand renewable-materials experimentsthat could set new standards in futureretail store construction.'" In sum, eco-nomic, political, and environmental pres-sures are coalescing to drive cleaner and

26 ENVIRONMENT VOLUME 48 NUMBER 5

retailers, ranging from energy-saving TideColdwater laundry detergent to non-toxicMethod and Simple Green cleaning prod-ucts. Use of recycled or biodegradablepaper products (such as plates, towels,napkins, coffee filters, computer paper,and other goods) is also widespread.Organic and rainforest-protective "shadegrown" coffees are available at Starbucksand other specialty stores and supermar-kets. Organic baby food is expected tocommand 12 percent market share in2006 as parents strive to protect their chil-

greener technological innovation in thetwenty-first century, and companies thatfail to adapt their products and processesaccordingly are destined to suffer fromthe consequences of marketing myopiaand creative destruction.

1, T, Levin. "Mafkeiing Myopia." HarvardBusiness Review 2K. July-Augusl (1960): 24-^7.

2. See J. Schumpctcr, The Theory of EconomicDevelopment (Cambridge: Harvard University Press.1934); and J. Schumpeier, Capiiuli.sm. Sociaiiam andDemoirtKv (New York; HaiperTorchIxiiiks, 1942),

3. "Alternate Power: A Change Ih in the Wind."Business Week. A July 2()05. 36-37,

4, S. L. Hart aiid M. B, Miktein. '"GlobalSu.stainahility and the Creative UestruL-tion ofItidusuies." MIT Sloan Managemeni Review 41, Fall(1999): 23-33,

5, See for example T. Howard. "Being Eco-Friendly Can Pay Econoniically; 'Green Marketing"Sees Growth iti Saks, Ads," USA Today, 15 August2005; and E. R. Stafford, "Energy Efficiency and theNew Green Marketing," Enviromncm. Marth 2003.8-10,

6. J. Bail. "'California Seis Emission Goals ThaiAre Sliffer than U.S. Plan." Wall Street Journal. 2June 200S: and J. Marglis. '"Paving the Way forU.S. Etiiisuions Trading." Grisi Mugaziiie, 14 June2005. w w w. c i i niateh! /. i;um/sections/new s_pri nt.dfm?NewsID=28255.

7, Bloomberg News. "Toyota Says It PlansEventually to Offer an All-Hybrid Fleet," 14 Sep-tember Hm, http://www.nyiimto.a)m/2OO5/O9/14/auiomobiles/14toyota.htnil.

8. J, Erickson, ""U.S. Business and ClimateChange: Siding with the Marketing'.*" SustainabilityRadar. June. www.ciimaiebiz.eom/sections/new_prini.clm?NewslD=28204.

9, Business Week, noie 3 above.10. Howard, note 5 above.

dren's mental and physical development.-''Indeed, the organic food market segmenthas increased 20 percent annually since1990, five times faster than the conven-tional food market, spurring the growthof specialty retailers such as Whole FoodsMarket and Wild Oats. Wal-Mart, too,has joined this extensive distribution oforganic products.-^ Indeed, Wal-Mart hasrecently declared that in North Americanstores, its non-farm-raised fresh fish willbe certified by the Marine StewardshipCouncil as sustainably harvested.-''*

Super energy-efficient appliances andfixtures are also becoming popular. Chic,front-loading washing machines, forexample, accounted for 25 percent ofthe market in 2004, up from 9 percent in2001.2'' Ep^'j. Energy Star label, whichcertifies that products consume up to30 percent less energy than comparablealternatives, is found on products rangingfrom major appliances to light fixturesto entire buildings (minimum efficiencystandards vary from product to product).The construction industry is becomingincreasingly green as government andindustry demand office buildings that are"high performance" (for example, superenergy- and resource-efficient and cost-effective) and "healthy" for occupants{for example, well-ventilated; constructedwith materials with low or no volatileorganic compounds [VOC]). The U.S.Green Building Council's "Leadershipin Energy and Environmental Design"(LEED) provides a rigorous rating systemand green building checklist that are rap-idly becoming the standard for environ-mentally sensitive construction."^

Home buyers are recognizing the practi-cal long-term cost savings and comfort ofnatural lighting, passive solar heating, andheat-reflective windows, and a 2006 studysponsored by home improvement retailerLowe's found nine out of ten builderssurveyed are incorporating energy-savingfeatures into new homes." Additionally,a proliferation of "green" building mate-rials to serve Ihe growing demand hasemerged.'- Lowe's competitor The Home

Depot is testing an 'EcoOptions" productline featuring natural fertilizers and mold-resistant drywail in its Canadian storesthat may fitter into the U.S. market.''' Inshort, energy efficiency and green con-struction have become mainstream. ,

The diversity and availability of greenproducts indicate that consumers are notindifferent to the value offered by envi-ronmental benefits. Consumers are buyinggreenbut not necessarily for envij"onmen-tal reasons. The market growth of organicfoods and energy-efficient appliances isbecause consumers desire their perceivedsafety and money savings, respectively.'^Thus, the apparent paradox between whatconsumers say and their purchases maybe explained, in part, by green marketingmyopiaa narrow focus on the green-ness of products that blinds companiesfrom considering the broader consumerand societal desires, A fixation on prod-ucts' environmental merits has resultedfrequently in inferior green products (forexample, the original EarthLight and GM'sEV-1 electric car) and unsatisfying con-sumer experiences. By contrast, the analy-sis of past research and marketing strate-gies finds that successful green productshave avoided green marketing myopia byfollowing three important principles: "TheThree Cs" of consumer value positioning,calibration of consumer knowledge, andcredibility of product claims, |

Consumer Value Positioning

The marketing of successfully estab-lished green products showcases non-green consumer value, and there are atleast five desirable benefits commonlyassociated with green products: efficiencyand cost effectiveness; health and safety;performance; symbolism and status; andconvenience. Additionally, when thesefive consumer value propositions are notinherent in the green product, successfulgreen marketing programs bundle (that is,add lo the product design or market offer-ing) desirable consumer value to broaden

JUNE 2OO6 ENVIRONMENT 27

the green product's appeal. In practice,the implication is that product designersand marketers need to align environ-mental products' consumer value (suchas money savings) to relevant consumermarket segments (for example, cost-conscious consumers).

Efficiency and CostEffectiveness

As exemplified by the Marathon CFLbulbs, the common inherent benefit ofmany green products is their potentialenergy and resource efficiency. Givensky-rocketing energy prices and tax incen-tives for fuel-efficient cars and energy-saving home improvements and appli-

ances, long-term savings have convincedcost-conscious consumers to buy green.

Recently, the home appliance industrymade great strides in developing energy-efficient products to achieve EPA's Ener-gy Star rating. Eor example. Energy Starrefrigerators use at least 15 percent lessenergy and dishwashers use at least 25percent less energy than do traditional

models.-'^ Consequently, an Energy Starproduct often commands a price pre-mium. Whirlpool's popular Duet front-loading washer and dryer, for example,cost more than $2,000, about double theprice of conventional units; however, thewashers can save up to 12.000 gallons ofwater and $110 on electricity annuallycompared to standard models (EnergyStar does not rate dryers).^''

Laundry detergents are also toutingenergy savings. Procter & Gamble's(P&G) newest market entry. Tide Cold-water, is designed to clean clothes effec-tively in cold water. About 80 to 85percent of the energy used to wash clothescomes from heating water. Working withutility companies, P&G found that con-

sumers could save an averageof $63 per year by using coldrather than warm water.^''Adopting Tide Coldwatergives added confidence toconsumers already washingin cold water. As energy andresource prices continue tosoar, opportunities for prod-ucts offering efficiency andsavings are destined for mar-ket growth.

Health and Safety

Concerns over exposure totoxic chemicals, hormones,or drugs in everyday prod-ucts have made health and

-1 safety important choice con-siderations, especially amongvulnerable consumers, suchas pregnant women, children,and the elderly.'^ Because

most environmental products are grownor designed to minimize or eliminatethe use of toxic agents and adulteratingprocesses, market positioning on con-sumer safety and health can achieve broadappeal among health-conscious consum-ers. Sales of organic foods, for example,have grown considerably in the wake ofpublic fear over "mad cow" disease, anti-

biotic-laced meats, mercury in fish, andgenetically modified foods.''' Mainstreamappeal of organics is not derived frommarketers promoting the advantages offree-range animal ranching and pesticide-free soil. Rather, market positioning oforganics as flavorful, healthy alternativesto factory-farm foods has convinced con-sumers to pay a premium for them.

A study conducted by the Alliancefor Environmental Innovation and house-hold products-maker S.C. Johnson foundthat consumers are most likely to acton green messages that strongly con-nect to their personal environments.^"Specifically, findings suggest that themajority of consumers prefer such envi-ronmental household product benefits as"safe to use around children," "no toxicingredients," "no chemical residues." and"no strong fumes" over such benefitsas "packaging can be recycled" or "nottested on animals." Seventh Generation,a brand of non toxic and environmen-tally-safe household products, derived itsname from the Iroquois belief that, "Inour every deliberation, we must considerthe impact of our decisions on the nextseven generations." Accordingly, its prod-ucts promote the family-oriented valueof making the world a safer place for thenext seven generations.

Indoor air quality is also a growingconcern. Eumes from paints, carpets, fiir-niture, and other decor in pooriy venti-lated "sick buildings" have been linkedto headaches, eye, nose, and throat irrita-tion, dizziness, and fatigue among occu-pants. Consequently, many manufacturershave launched green products to reduceindoor air pollution. Sherwin Williams,for example, offers "'Harmony," a lineof interior paints that is low-odor, zero-VOC, and silica-free. And Mohawk sellsEverSet Eibers, a carpet that virtuallyeliminates the need for harsh chemicalcleaners because its design allows moststains to be removed with water. Asidefrom energy efficiency, health and safetyhave been key motivators driving thegreen building movement.

28 ENVIRONMENT VOLUME 48 NUMBER 5

Performance

The conventional wisdom is that greenprodut;ts don't work as well as "non-green" ones. This is a legacy from the firstgeneration of environmentally sensitiveproducts that clearly were inferior. Con-sumer perception of green cleaning agentsintroduced in health food stores in the1960s and 1970s, for example, was that'they cost twice as much to remove halfthe grime."^' Today, however, many greenproducts are designed to perform betterthan conventional ones and can commanda price premium. For example, in additionto energy efficiency, front-loading wash-ers clean better and are gentler on clothescompared to conventional top-loadingmachines because they spin clothes in amotion similar to clothes driers and usecentrifugal force to pull dirt and wateraway from clothes. By contrast, mosttop-loading washers use agitators to pull

the cost of pressure-treated pine and 15percent more than cedar or redwood.^ -^

Likewise, Milgard Windows' low emis-sivity SunCoat Low-E windows filter thesun in the summer and reduce heat loss inthe winter. While the windows can reducea building's overall energy use, their moresignificant benefit comes from helping tocreate a comfortable indoor radiant tem-perature climate and protecting carpetsand furniture from harmful ultravioletrays. Consequently, Milgard promotes theimproved comfort and performance ofits SunCoat Low-E windows over con-ventional windows. In sum, "high per-formance" positioning can broaden greenproduct appeal.

Symbolism and Status

As mentioned earlier, the Prius, Toyota'sgas-electric hybrid, has come to epito-mize "green chic." According to many

recently, Toyota has striven to position its"hybrid synergy drive" system as a cutabove other car makers' hybrid technolo-gies with witty slogans such as. "Commutewith Nature," "mpg:)," and "There's Noth-ing Like That New Planet Smell."^^ Dur-ing the 2006 Super Bowl XL game, Eordlaunched a similarly humorous commercialfeaturing Kermit the Frog encountering ahybrid Escape sports utility vehicle in theforest, and in a twist, changing his tunewith "I guess it is easy being green!""*^

In business, where office furniture sym-bolizes the cachet of corporate image andstatus, the ergonomically designed "Think"chair is marketed as the chair "with a brainand a conscience.'" Produced by Steel-case, the world's largest office furnituremanufacturer, the Think chair embodiesthe latest in "cradle to cradle" (C2C) designand manufacturing. C2C, which describesproducts that can be ultimately returiied totechnical or biological nutrients, encourages

MARKET POSITIONING ON CONSUMER SAFETYAND HEALTH CAN ACHIEVE BROAD APPEALAMONG HEALTH-CONSCIOUS CONSUMERS.

clothes through tanks of water, reducingcleaning and increasing wear on clothes.Consequently, the efficiency and high per-formance benefits of top-loading washersjustify their premium prices.

Homeowners commonly build deckswith cedar, redwood, or pressure-treat-ed pine (which historically was treat-ed with toxic agents such as arsenic).Wood requires stain or paint and periodicapplications of chemical preservatives formaintenance. Increasingly, however, com-posite deck material made from recycledmilk jugs and wood fiber, such as Wey-erhaeuser's ChoiceDek, is marketed asthe smarter alternative. Composites areattractive, durable, and low maintenance.They do not contain toxic chemicals andnever need staining or chemical preserva-tives. Accordingly, they command a pricepremiumas much as two to three times

automobile analysts, the cool-kid cachetthat comes with being an early adopter ofthe quirky-looking hybrid vehicle trendcontinues to partly motivate sales.'*^ Estab-lishing a green chic appeal, however, isn'teasy. According to popular culture experts,green marketing must appear grass-rootsdriven and humorous without soundingpreachy. To appeal to young people, con-servation and green consumption need theunsolicited endorsement of high-profilecelebrities and connection to cool technol-ogy."" Prius has capitalized on its evan-gelical following and high-tech image withsome satirical ads, including a televisioncommercial comparing the hybrid withNeil Armstrong's moon landing ("That'sone small step on the accelerator, one giantleap for mankind") and product placementsin popular Hollywood films and sitcoms(such as Curb Your Enthusiasm). More

industrial designers to create products freeof harmful agents and processes that canbe recycled easily into new products (suchas metals and plastics) or safely returned tothe earth (such as plant-based materials)."*^Made without any known carcinogens,the Think chair is 99 percent recyclable;it disassembles with basic hand tot)ls inabout five minutes, and parts are stampedwith icons showing recycling options.^ **Leveraging its award-winning design andsleek comfort, the Think chair is positionedas symbolizing the smart, socially respon-sible office. In sum, green products can bepositioned as status symbols.

I

Convenience I

Many energy-efficient products offerinherent convenience benefits that canbe showcased for competitive advantage.

JUNE 2006 ENViRONMENT 29

CFL bulbs, for example, need infrequentreplacement and gas-electric hybrid carsrequire fewer refueling stopsbenefitsthat are highlighted in their marketingcommunications. Another efficient alter-native to incandescent bulbs are light-emitting diodes (LEDs): They are evenmore efficient and longer-lasting thanCFL bulbs; emit a clearer, brighter light;and are virtually unbreakable even in coldand hot weather. LEDs are used in traf-fic lights due to their high-performanceconvenience. Recently, a city in Idahobecame a pioneer by adopting LEDs forits annual holiday Eestival of Lights. "Wespent so much time replacing strings oflights and bulbs." noted one city official,"[using LEDs] is going to reduce two-thirds of the work for us.'"'''

To encourage hybrid vehicle adoption,some states and cities are granting theirdrivers the convenience of free parkingand solo-occupant access to HOV lanes.A Toyota spokesperson recently told theLos Angeles Times, "Many customers aretelling us the carpool lane is the main rea-son for buying now."^ '^ Toyota highlightsthe carpool benefit on its Prius Web site,and convenience has become an incen-tive to drive efficient hybrid cars in traf-fic-congested states like California andVirginia. Critics have charged, however,that such incentives clog carpool lanes

or boating or in homes situated off thepower grid). That convenience, however,is being exploited for other applications.In landscaping, for example, self-con-tained solar-powered outdoor eveninglights that recharge automatically dur-ing the day eliminate the need for elec-trical hookups and offer flexibility forreconfiguration. With society's increasingmobility and reliance on electronics, solarpower's convenience is also manifest insolar-powered calculators, wrist watches,and other gadgets, eliminating worriesover dying batteries. Reware's solar-pow-ered "Juice Bag" backpack is a popularportable re-charger for students, profes-sionals, and outdoor enthusiasts on thego. The Juice Bag's flexible, waterproofsolar panel has a 16.6-volt capacity togenerate 6.3 watts to recharge PDAs, cellphones, iPods, and other gadgets in about2 to 4 ^

Bundling

Some green products do not offerany of the inherent five consumer-desired benefits noted above. Thiswas the case when energy-efficientand CEC-free refrigerators were intro-duced in China in the 1990s. WhileChinese consumers preferred and werewilling to pay about 15 percent more

Given consumer demand for conve-nience, incorporating time-saving or ease-of-use features into green products canfurther expand their mainstream accep-tance. Eord's hybrid Escape SUV comeswith an optional 110-volt AC power out-let suitable for work, tailgating, or camp-ing. Convenience has also enhanced theappeal of Interface's recyclable ELORcarpeting, which is marketed as "practi-cal, goof-proof, and versatile." ELORcomes in modular square tiles with fourpeel-and-stick dots on the back for easyinstallation (and pull up for altering, recy-cling, or washing with water in the sink).Modularity offers versatility to assembletiles for a custom look. Interface promotesthe idea that its carpet tiles can be changedand reconfigured in minutes to dress up aroom for any occasion. The tiles come inpizza-style boxes for storage, and ease ofuse is FLOR's primary consumer appeal.

Einally, Austin (Texas) Energy's "GreenChoice" program has led the nation inrenewable energy sales for the past threeyears."*"* In 2(X)6. demand for wind energyoutpaced supply so that the utility resort-ed to selecting new "Green Choice" sub-scribers by lottery.^ *^ While most utilitiesfind it challenging to sell green electric-ity at a premium price on its environ-mental merit. Austin Energy's successcomes from bundling three benefits that

ACCORDING TO POPULAR CULTURE EXPERTS,GREEN MARKETING MUST APPEAR GRASS-ROOTS DRIVEN

AND HUMOROUS WITHOUT SOUNDING PREACHY.

and reinforce a "one car, one person"lifestyle over alternative transportation.In response, the Virginia legislature hasmore recently enacted curbs on hybriddrivers use of HOV lanes during peakhours, requiring three or more people pervehicle, except for those that have beengrandfathered in.*^ '

Solar power was once used only forsupplying electricity in remote areas (forexample, while camping in the wilderness

30 ENVIRONMENT

for refrigerators that were "energy-efficient," they did not connect the envi-ronmental advantage of "CEC-free" witheither energy efficiency or savings. Con-sequently, the "CEC-free" feature hadlittle impact on purchase decisions." Toencourage demand, the CEC-free fea-ture was bundled with attributes desiredby Chinese consumers, which includedenergy efficiency, savings, brand/quality,and outstanding after-sales service.

appeal to commercial power users: Eirst,Green Choice customers are recognizedin broadcast media for their corporateresponsibility; second, the green poweris marketed as "home grown," appealingto Texan loyalties; and third, the programoffers a fixed price that is locked in for10 years. Because wind power's cost isderived primarily from the construction ofwind farms and is not subject to volatilefossil fuel costs, Austin Energy passes

VOLUME 48 NUMBER 5

its inherent price stability onto its GreenChoice customers. Thus, companies par-ticipating in Green Choice enjoy the pre-dictability of their future energy costs inan otherwise volatile energy market.

In summary, the analysis suggests thatsuccessful green marketing programshave broadened the consumer appeal ofgreen products by convincing consum-ers of their "non-green" consumer value.The lesson for crafting effective greenmarketing strategies is that planners needto identify the inherent consumer valueof green product attributes (for example,energy efficiency's inherent long-termmoney savings) or bundle desired con-sumer value into green products (suchas fixed pricing of wind power) and todraw marketing attention to this con-sumer value.

Calibration of ConsumerKnowledge

Many of the successful green productsin the analysis described here employcompelling, educational marketing mes-sages and slogans that connect greenproduct attributes with desired consumervalue. That is, the marketing programssuccessfully calibrated consumer knowl-edge to recognize the green product'sconsumer benefits. In many instances, theenvironmental benefit was positioned assecondary, if mentioned at all. Changesmade in EPA's Energy Star logo providean example, illustrating the program'simproved message calibration over theyears. One of Energy Star's early market-ing messages, "EPA Pollution Preventer,"was not only ambiguous but myopical-ly focused on pollution rather than amore mainstream consumer benefit. Alater promotional message, "Saving TheEarth. Saving Your Money." better asso-ciated energy efficiency with consumervalue, and one of its more recent slogans,"Money Isn't All You're Saving," toutseconomic savings as the chief benefit.This newest slogan also encourages con-

JUNE 2006

sumers to think implicitly about what elsethey are "saving"the logo's illustrationof the Earth suggests the answer, educat-ing consumers that "saving the Earth" canalso meet consumer self-interest.

The connection between environmentalbenefit and consumer value is evidentin Earthbound Farm Organic's slogan,"Delicious produce is our business, buthealth is our bottom line," which com-municates that pesticide-free produceis flavorful and healthy. Likewise, TideColdwater's "Deep Clean. Save Green."slogan not only assures consumers of thedetergent's cleaning perfor-mance, but the term "green"offers a double meaning,connecting Tide's cost sav-ing with its environmentalbenefit. Citizen's solar-pow-ered Eco-Drive watch's slo-gan, "Unstoppable Caliber,"communicates the product'sconvenience and perfor-mance (that is, the batterywill not die) as well as pres-tige. Table I on page 32shows other successful mar-keting messages that educateconsumers of the inherentconsumer value of green.

Some compelling market-ing communications educateconsumers to recognize green products as"solutions" for their personal needs andthe environment.^^ When introducing itsRenewal brand, Rayovac positioned thereusable alkaline batteries as a solution forheavy battery users and the environmentwith concurrent ads touting "How to save$ 150 on a CD player that costs $ 100" and"How to save 147 batteries from goingto landfills." Complementing the moneysavings and landfill angles, another ad inthe campaign featured sports star MichaelJordan proclaiming, "More Power. MoreMusic, And More Game Time." to con-nect Renewal batteries" performance toconvenience.-"^^ In practice, the analysisconducted here suggests that advertisingthat draws attention to how the environ-

mental product benefit can deliver desiredpersonal value can broaden consumeracceptance of green products.

Credibility of Product Claims

Credibility is the foundation of effec-tive green marketing. Green productsmu.st meet or exceed consumer expecta-tions by delivering their promised con-sumer value and providing substantiveenvironmental benefits. Often, consum-ers don't have the expertise or ability to

verify green products' environmental andconsumer values, creating misperceptionsand skepticism. As exemplified in the caseof Mobil's Hefty photodegradable plastictrash bag described earlier, green market-ing that touts a product's or a company'senvironmental credentials can spark thescrutiny of advocacy groups or regulators.For example, although it was approved bythe U.S. Food and Drug Administration,sugar substitute Splenda's "Made fromsugar, so it tastes like sugar" slogan andclaim of being "natural" have been chal-lenged by the Sugar Association and Gen-eration Green, a health advocacy group,as misleading given that its processingresults in a product that is "unrecogniz-able as s

ENVIRONMENT 31

To be persuasive, past research suggeststhat green claims should be specific andmeaningful.^'' Toyota recognizes the ambi-guity of the tenii "green" and discouragesits use in its marketing of its gas-electrichybrid cars. One proposed slogan, "Drivegreen, breathe blue" was dismissed infavor of specific claims about fuel effi-ciency, such as "Less gas in. Less gas-ses out."* '^ Eurther, environmental claimsmust be humble and not over promise.When Ford Motor Company publicizedin National Geographic and other maga-zines its new eco-designed Rouge RiverPlant that incorporated the world's largestliving roof of plants, critics questionedthe authenticity of Eord's environmentalcommitment given the poor fuel economyof the automaker's best-selling SUVs.'''Even the Prius has garnered some criticismfor achieving considerably less mileage(approximately 26 percent less accordingto Consumer Reports) than its govern-ment sticker rating claims, although theactual reduced mileage does not appear tobe hampering sales.''- Nonetheless, greenproduct attributes need to be communicat-ed honestly and qualified for believability(in other words, consumer benefits andenvironmental effectiveness claims needto be compared with comparable alterna-tives or likely usage scenarios). Eor exam-ple, Toyota includes an "actual mileagemay vary" disclaimer in Prius advertising.When Ford's hybrid Escape SUV ownerscomplained that they were not achievingexpected mileage ratings. Ford launchedthe "Fuel-Economy School" campaign toeducate drivers about ways to maximizefuel efficiency.''' Further, EPA is recon-sidering how it estimates hybrid mileageratings to better refiect realistic drivingconditions (such as heavy acceleration andair conditioner usage).'"^

Third Party Endorsementsand Eco-Certifications

Expert third parties with respected stan-dards for environmental testing (suchas independent laboratories, government

agencies, private consultants, or non-profit advocacy organizations) can pro-vide green product endorsements and/or "seals of approval" to help clarify

and bolster the believability of productclaims.''^ The "Energy Star" label, dis-cussed earlier, is a common certifica-tion that distinguishes certain electronic

Table 1. Marketing messages connecting green productswitli desired consumer valueValue

Efficiency and cost effectiveness

Health and safefy

Performance

Symbolism

Convenience

Bundling

Message and business/product

"Tbe only tbing our washer will shrink isyour Vi'ater bill."-ASKO

"Did you know tbat between 80 and85 percent of fhe energy used to vi'ashclothes comes from healing tbe water?Tide Ooldwater-Tbe Coolest Way foClean."-Tide Coldwater Laundry Detergent

"mpg:)"-Toyota Prius

"20 years of refusing to farm wifb toxicpesticides. Stubborn, perhaps. Healthy,most definitely."-Earthbound Farm Organic

"Safer for You and the Environment."-Seventh GenerationHousehold Cleaners

"Environmentally friendly stain removal.It's as simple as H2O."-Mohawk EverSet Fibers Carpet

"Fueled by light so it runs forever. It'sunstoppable. Just like the people whowear it."-Citizen Eco-Drive Sport Watch

"Tbink is the cbair with a brain and aconscience."-Steelcase's Tbink Chair

"Make up your mind, not just your face."-The Body Sbop

"Long life for bard-to-reach places."-General Electric's OFL Flood Lights

"Performance and luxury fueled byinnovative technology."-Lexus RX400b HybridSports Utility Vehicle

SOURCE: Compiled by J.A. Ottman, E.R. Stafford, and CL. Hartman, 2006.

32 ENVIRONMENT VOLUME 48 NUMBER 5

products as consuming up to 30 percentless energy than comparable alternatives.The U.S. Department of Agriculture's"USDA Organic" certifies the produc-tion and handling of organic produce anddairy products.

Green Seal and Scientific CertificationSystems emblems certify a broad spec-trum of green products. Green Seal setsspecific criteria for various categories ofproducts, ranging from paints to clean-ing agents to hotel properties, and for afee, companies can have their productsevaluated and monitored annually for cer-tification. Green Seal-certified productsinclude Zero-VOC Olympic Premium

tiative, which range from fuel-efficientaircraft engines to wind turbines to watertreatment technologies. Only those pass-ing GreenOrder's criteria are marketed asEcomagination products, but critics havequestioned GE's inclusion of "cleanercoal" (that is, coal gasification for clean-er burning and sequestration of carbondioxide emissions) as an "Ecomagina-tion" product.**^

Consequently, when seeking endorse-ments and eco-certifications, marketersshould consider the environmental trade-offs and complexity of their products andthe third parties behind endorsementsand/or certifications: Is the third party

at almost the same pace. There is hugeenvironmental value in developing waysto mitigate these plants' emissions."'''

Word-of-Mouth Evangelismand the Internet |

Increasingly, consumers have grownskeptical of commercial messages, andthey're turning to the collective wis-dom and experience of their friends andpeers about products.^- Word-of-mouth or"buzz" is perceived to be very credible,especially as consumers consider and tryto comprehend complex product innova-tions. The Internet, through e-mail and its

ALTHOUGH ECO-CERTIFICATIONS DIFFERENTIATEPRODUCTS AND AID IN CONSUMER DECISIONMAKING,

THEY ARE NOT WITHOUT CONTROVERSY.interior paint and Johnson Wax profes-sional cleaners. Green Seal has also certi-fied the Hyatt Regency in Washington,DC, for the hotel's comprehensive energyand water conservation, recycling pro-grams, and environmental practices. Bycontrast. Scientific Certification Systems(SCS) certifies specific product claimsor provides a detailed "eco-profile" for aproduct's environmental impact for dis-play on product labels for a broad arrayof products, from agricultural productsto fisheries to construction. Eor example,Armstrong hard surface flooring holdsSCS certification, and SCS works withretailers like The Home Depot to monitorits vendors' environmental claims.**

Although eco-certlfications differenti-ate products and aid in consumer deci-sionmaking, they are not without contro-versy. The science behind eco-seals canappear subjective and/or complex, andcritics may take issue with certificationcriteria.^^ Eor example, GreenOrder, aNew York-based environmental consult-ing firm, has devised a scorecard toevaluate cleantech products marketed inGeneral Electric's "'Ecomagination" ini-

respected? Are its certification meth-odologies accepted by leading environ-mentalists, industry experts, governmentregulators, and other key stakeholders?Marketers should educate their customersabout the meaning behind an endorse-ment or an eco-seal's criteria. GE rec-ognizes that its cleaner coal technologyis controversial but hopes that robustmarketing and educational outreach willconvince society about cleaner coal'senvironmental benefits.'''' On its Website, GE references U.S. Energy Informa-tion Administration's statistics that coalaccounts for about 24 percent of theworld's total energy consumption, argu-ing that coal will continue to be a domi-nant source of energy due to its abun-dance and the increasing electrificationof populous nations such as China andIndia.^" In response to GE's commitmentto clean coal, Jonathan Lash, president ofthe World Resources Institute, said, "Fiveyears ago, 1 had to struggle Io suppressmy gag response to terms like 'cleancoal.' but I've since faced the soberingreality that every two weeks China opensa new coal-fired plant. India is moving

vast, accessible repository of information.Web sites, search engines, blogs, productratings sites, podcasts. and other digitalplatforms, has opened significant oppor-tunities for tapping consumers' social andcommunication networks to diffuse cred-ible "word-of-mouse" (buzz facilitated bythe Internet) about green products. Thisis exemplified by one of the most spec-tacular product introductions on the Web:Tide Coldwater. |

In 2()O5, Proctor & Gamble partneredwith the non-profit organization, theAlliance to Save Energy (ASE), in a"viral marketing" campaign to spreadnews about the money-saving benefitsof laundering clothes in cold water withspecially formulated Tide Coldwater.^'ASE provided credibility for the detergentby auditing and backing P&G's claimsthat consumers could save an average of$63 a year if they switched from warm tocold water washes. ASE sent e-mail pro-motions encouraging consumers to visitTide.com's interactive Web site and takethe "Coldwater Challenge" by regi.steringto receive a free sample. Visitors couldcalculate how much money they would

JUNE 2006 ENVIRONMENT 33

save by using the detergent, learn otherenergy-saving laundry tips, and refer e-niail addresses of their friends to take thechallenge as well. Tide.com offered anengaging map of the United States where,over time, visitors could track and watchtheir personal networks grow across thecountry when their friends logged ontothe site to request a free sample.

Given the immediacy of e mail and theInternet, word-of-mouse is fast becomingan important vehicle for spreading cred-ible news about new products. Accordingto the Pew Internet & American LifeProject, 44 percent of online U.S. adults(about 50 million Americans) are "contentcreators," meaning that they contributeto the Internet via blogs, product recom-mendations, and reviews." To facilitatebuzz, however, marketers need to createcredible messages, stories, and Web sitesabout their products that are so eonipel-ling, interesting, and/or entertaining thatconsumers will seek the information outand forward it lo their friends and fam-ily." The fact that P&G was able toachieve this for a low-involvement prod-uct is quite remarkable.

International online marketing consul-tant Hitwise reported that ASE's e-mailcampaign increased traffic at the TideColdwater Web site by 900 percent in thefirst week, and then tripled that level inweek two.^^ Within a few months, morethan one million Americans accepted the"Coldwater Challenge," and word-of-mouse cascaded through ten degrees ofseparation across all 50 states and morethan 33.000 zip codes." In October 2005,Hitwise reported that Tide.com ranked asthe twelfth most popular site by marketshare of visits in the "LifestyleHouseand Garden" category.^ ** No other laundrydetergent brand's Web site has gained asignificant Web presence in terms of thenumber of visits.

P&G's savvy implementation of 'TheThree Cs"consumer value positioningon money savings, calibration of con-sumer knowledge about cold wash effec-tiveness via an engaging Web site, and

credible product messages dispatched bya respected non-profit group and consum-ers' Internet networksset the stage forTide Coldwater's successful launch.

The Futureof Green Marketing

Clearly, there are many les.sons to belearned to avoid green marketing myopia(see the box on this page)the shortversion of all this is that effective greenmarketing requires applying good mar-keting principles to make green products

desirable for consumers. The questionthat remains, however, is, what is greenmarketing's future? Historically, greenmarketing has been a misunderstood con-cept. Business scholars have viewed it asa "fringe" topic, given that environmental-ism's acceptance of limits and conserva-tion does not mesh well with marketing'straditional axioms of "give customerswhat they want" and "sell as much as youcan." In practice, green marketing myo-pia has led to ineffective products andconsumer reluctance. Sustainability, how-ever, is destined to dominate twenty-firstcentury commerce. Rising energy prices.

SUMMARY OF GUIDEPOSTSFOR THE "THREE CS"

Evidence indicates that successful greenproducts have avoided green marketingmyopia by following three importantprineiples: consumer value positioning,calibration of consumer knowledge, andthe credibility of product claims.Consumer Value Positioning

Design environmental products toperform as well as (or better than) alter-natives.

Promote and deliver the con-sumer-desired value of environmentalproducts and target relevant consumermarket segments (such as market healthbenefits among health-conscious con-sumers).

Broaden mainstream apjieal bybundling (or adding) consumer desiredvalue into environmental products(such as fixed pricing for subscribers ofrenewable energy).Calibration of ConsumerKnowledge

Educate consumers with marketingmessages that connect environmentalproduct attributes with desired consum-er value (for example, "f)esticide-freeproduce is healthier"; "energy-effi-ciency saves money"; or "solar poweris convenient").

' Frame environmental product attri-butes as "solutions" for consumer needs

(for example, "rechargeable batteriesoffer longer performance").

Create engaging and educationalInternet sites about environmentalproducts' desired consumer value (forexample. Tide Coldwater's interactiveWeb site allows visitors to calculate theirlikely annual money savings based ontheir laundry habits, utility source (gasor electricity), and zip code location).

Credibility of Produet Claims Employ environmental product

and consumer benefit claims that arespecific, meaningful, unpretentious,and qualified (that is, compared withcomparable alternatives or likely usagescenarios).

Procure product endorsements oreco-certifications from trustworthy thirdparties, and educate consumers aboutthe meaning behind those endorsementsand eco-certifications.

" Encourage consumer evangelismvia consumers' social and Internet com-munication networks with compelling,interesting, and/or entertaining informa-tion about environmental products (forexample. Tide's "Coldwater Challenge"Web site included a map of the UnitedStates so visitors could track and watchtheir personal influence spread whentheir friends requested a free sample).

34 ENVIRONMENT VOLUME 48 NUMBER 5

growing pollution and resource consump-tion in Asia, and political pressures toaddress climate cbange are driving inno-vation toward healthier, more-efficient,high performance products. In short, allmarketing will incorporate elements ofgreen marketing.

As tbe authors of Natural Capital-ism argue, a more sustainable businessmodel requires "product dematerializa-tion"that is, commerce will shift fromthe "sale of goods'" to the "sale of ser-vices" (for example, providing illumina-tion rather than selling light bulbs). ^ " Thismodel is illustrated, if unintentionally, byarguably the twenty-first century's hottestproductApple's iPod. The iPod givesconsumers the convenience to down-load, store, and play tens of thousatids ofsotigs witbout the environmental impactof manufacturing and distributing CDs,plastic jewel cases, and packaging.

Innovations that transform materialgoods into efficient streams of servic-es could proliferate if consumers seethem as desirable. To encourage energyand water efficiency, Electrolux pilot-ed a "pay-per-wash" service in Swedenin 1999 where consumers were givennew efficient washing machines for astnall home installation fee and tben werecharged 10 Swedish kronor {about $1)per use. Tbe machines were connectedvia the Internet to a central database tomonitor use, and Electrolux maintainedownership and servicing of the washers.When the machines had served their duty,Electrolux took them back for remanu-facturing. Pay-per-wash failed, however,because consumers were not convinced ofits benefits over traditional ownership ofwashing machines.^" Had Electrolux bet-ter marketed pay-per-wash's convenience(for example, virtually no upfront costsfor obtaining a top-of-the-line washer,free servicing, and easy trade-ins forupgrades) or bundled pay-per-wash withmore desirable features, consumers mighthave accepted the green service. To avoidgreen marketing myopia, the future suc-cess of product dematerialization and

more sustainable serviceswill depend on crediblycommunicating and deliver-ing consumer-desired valuein the marketplace. Onlythen will product demateri-alization steer business ontoa more sustainable path.

Jacquelyn A. Oitman is presidcnl of J.Oilman Consuliing, Inc. in New YorkantiuuLhorof (7/'f('/i Marketing: Oppor-tunity for Innovation, 1"^ edition (NTCBusiness Books, 1997). She can bertachcd at Jaottman@greenmarketing.com, Hdwin R. Stafford i.s an associateprofessor of marketing at Utah StaleUniversity. Logan. He researches ihesitraiegic marketing and policy implica-linns of cleiin icehnology (also knownas '"cleantech'") and is ihe wi-principalinvestigator for a $1 million researchgram from iht; U.S. Departinem olEnergy on the diffu.sion of windpower in Utah. He may be reached aicd.stafford@usu.edu. Caihy L. Hartman is a professor ofmarketing M Uiah Slate University. Logan. Her re.searchtenters un how interpersonal influence and social sys-tems affec! the diffusion of ideas and elean products andtechnology. She is principal investigator on a $ I millionU.S. Department of Energy grant for developing windpower in the state of Utah. She can be contacted at eathy.hiutman 13) usu.edu.

NOTES

1. G. Fiiwler, """Green Sales Pilch Isn't MovingMany Pn>ducts," Wall Street Journal. 6 March 2(K}2.

2. See. fur example. K. Alston and J. P. Ruberi.s.""Partners in New Produet Development: SC Johnson andthe Alliance tor Environmenlal Innovation," CorporateEnvironmental Strategy 6, no, 2: 111-28.

.1. See, for example. J. Ottiiian, Green Marketing:Opportunity for Innovation |Linti>liiwcKKl [Chieago]:NTC Business Books, 1997).

4. P. Hawken. A. Lovins. and L. H. Lovins. NaturalCapitalism: Creating the Next Industrial Revolution(Boston: Litlle, Brown, and Company, 1999).

5. See, for example, Busines.t Week, "AltemaiePower: A Change in ihe Wind." 4 July 2005, 36-.^.

6. See T. L. Friedman. ""Geo-Greening by Exam-ple." New york 'limes. 27 Mareh 21X)5; and T L. hrietl-man, "'The New "Sputnik" Challenges: Tbey All Run onOil," Ney.' York Times. 20 January 2006.

7. There is some dehaie as to how to ticfme a ""greenconsumer." Roper ASW"s mo.st receni research segmentsAmeriean eon-wmers by their propensity to purchaseenvironmentally sensitive products into five categories,ranging from "True Blue Greens." who are mosl inclinedto seek out Linil buy green on a regular basis (representing9 percent of the population), tn "'Basic Bruwns,"' who arethe least involved group and believe environmental indif-ference is mainstream (representing 33 percent of thepopulation); see Roper ASW "'Green Gauge Report 2002:American*; Perspective on F.nvironmental IssuesYes. . . But,"' November 2(K)2, hitp://www.windustry.cnni/conferences/no vembcr2002/nov2002_proceedings/plenary/greenguage2002.pdf (accessed 7 February 2006).

Altematii L'ly, however, some markeiers view green con-sumers as falling into three broad segments concernedwith preserving the plane!, health consequenees ofenvironmental problems, and animal welfare; see Otl-man, nole 3 above, pages 19-44. Beeause environmentalconcerns are viiried, ranging from resource/energy con-ser.ati(in lo wildlife protection to air ijuuliiy. markelingresearch suggests that responses lo green advertisingappeals vary by consumer .segments. For example, in onestudy, yiiung college-educated students were found to bedrawn to health-oriented green appeals, whereas workingaduits were more responsive loward heallh, witste. andenergy appeals; see M. R. .Sialfitrd, T. K Stafford, andJ, Chowdhury, "Predisposiiions Toward Green Issues:The Potential tflicacy of Advertising Appeals," Journaloj Current Issiie.^ and Reseanh in Advertising 18. no. 2(1996): 67-79, One of the lessons from the study pre-senleJ here i,s ihai green products must be posiiioned onIhe eonsumcr value sought by targeted consumers.

8. A. Grubler, "'Doing More with Less: Improvingthe Bnvironmeni thrtuigh Green F.ngineering." Environ-mem 4M. no.! (March 2006): 22-37.

9. See, for example. L.A. Crosby and S. L. Johnson,"Customer-Centric Innovation," Murkfting Management15, no. 2(2006): 12-13.

10. The methodology for this article involved review-ing case descriptions of green prcxlucts discussed inihe academic and business literaiure lo identify factorscontributing lo con.sumer acceptance or resistance. Prod-uct failure was liefined as situations in which the greenproduci experience!! very limited sales and ultimatelywas either removed from ihe marketplace (such as Gen-eral Motor"s EV I eleLirii; car and Electrolux"s ""pay-per-wash"' service) or rc-piisitioned in ihe marketplace (suchas Philips' "EanhLight"). Produc! suceess was defined assiiuaiions in which the green product attained consumeracceplance and was wideiy available al the lime of iheanalysi.s, Particular atteniion eenlered on ihe marketstrategies and exienial niarkei fortes of green produeLsexperieneing signifieanl growth (sucb as gas-eleetriehybrid cars and organic foods), and the sludy examinedtheir markei context, pricing, targeted consumers, prod-uct design, and marketing appeals and messages.

11. See T. l^vitt. '"Markeling Myopia." HarvardBusine.s.y Review 28, July-Augu.st (I960): 24^7 .

12. A. D. Lee and R. Conger, ""Market Transtbrma-

JUNE 2006 ENVIRONMENT 35

lion: Docs il Work? The Super Energy ttl'icieiil Relrig-crator Program," ACEEE Proceedings. 1IW6. 3,69-3.80.

13. Ibid.14, The Culilomia Air Resources Board (CARB)

'adopied the Low-1; miss ion Vehicle (LEV) regulations in199(1. Tht original LEV regulations required the intro-duction of /ero-eniission vehiL-les (ZEVs) in IW8 us 2percent of all vehieies produced for sale in Calitbmia,and increased the percentage of ZEVs Ironi 2 percentto II) percent in 200.1. By I99H, significant llexibihtywas intnxluceij through partial ZEV credits for ver>'-low-etnission vehicles. For a review, see S. Shitheen."Caliiomia's Zero-Emission Vehicle Mandate." Insinnieof Traiisporolion Sttulii-s. Paper UCD-ITS-RP-t)4-14. 2September 2004.

l?i. C. Palmeri, "Unplugged." Busiiifs.\ Week. 20March 2fX)6. 12.

16. -Think Tanks." Aiiitmwlive /Vcn.v. 6 Mareh 2IK)6,42; J. t)ttman. "Lessons frotn the Green Graveyard,"Green(^Wr>rk, Aptil 2IX)3, 62-63.

17. J. Lawrence, "The Green Revolution: CaseStudy." Advertising Age. 29 January 1991, 12.

18. See Roper ASW. noie 7 above.19. "Fuel Economy: Why You're Not Getting the

MPG You Expect." Cunsumer Repiirls. Oclober ^OO.i,2()-23.

20. J. O'Dell, "Prices Soar lor Hybrids with Rights toEast Lane." his Angeles Times. 27 August 200'i.

2L M. Undler and K. Bradsher. "VW to UuildHybrid Minivan with Chinese," iVcii' Vark Tiine\. 9 Sep-leniber 2005,

22. K. Carter, '"Hybrid' Cars Were Oscan," PoliticallyCorrecl Ride," VSA Today, 31 M m b 2003.

23. See, for example, H. W. Jenkins. "Dear ValuedHybrid Customer . , ,," Wall Street Jounial. 30 Novem-ber 2005; E. R. Stallnrd, "Conspicuous Conservation,"Greeii@Wiirk. Winter 2IX)4. .10-.12, A recent Civil Swi-eiy institute poll found that 66 percent ol survey par-ticipants agreed that driving fuel efficient vehicle.s was"patriotic"; see Reuters. "American See Euel EfficientCars a,s 'Patriotic." IH March 21)0.'i, htip://www,planetark,com/a\antgo/dailynewsstory.cfm?newsid=299Sf(.

24. "Rising Consumer Interest in Hybrid TechnologyConfirTned by Marit7 Research." PRNewswire, ^ Janu-ary 2(XI6.

25. O'Dell, note 20 above,26. J, Hetto, "The Baby Business," Amciimn Deinii-

fiTO/i/iic.v. May2IKI3,40.27. See D. McGinn, "The Green Machme," News-

week. 21 Mareh im^. t-:K-KI2; and J. Weber. "A Super-Natural Investing (!)ppiirtunity," Business 2.0, March2(X>.1, 34,

2K. A. Murray. "Can Wxtl-Mart Sustain a SofterEdge'."" Wall Street Journal. H Eebruary 2U(J6.

29. C. Tan, "New Incentives lor Being Green," WullStreet Jounuil. 4 August 2(XI5.

30. Eor an overview of the U^adership in Energyand HnvironmentitI Design Green Building Rating Sys-

ENVIRONMENT^A great

classroom resource!Check out

www.heldref.org/env.phpfor lists of articles by topic.

tem, sec http://w:uw.usghc.org. The 69-point LKEDrating system addresse.s energy arid waler use, indoorair quality, tnaterials. siting, and innovation atid design.Buildings ean earri basic certilleation or a silver, goitl,or platinum designation depending on the number ofcredits awarded by external reviewers. Critics charge,however, thai the cosily and confusing administration ofthe LEED system is inhibiting adoption of the pnigramand impeding ihe program's environmental objectives;see A. Scbendler and R. Lidali, "LRED is Broken; Let'sFix It." Grisi Mugoziiie. 16 Oetober 2(XI.'i, hitp;Wwww.grist.ei;)m/commenIs/soapbox/200'i/IO/26/leed/indexl.html,

31, GreenBi/.com, "Survey: Home Builders NatiieEnergy Efficiency as Biggest Industry Trend," 26 Janu-ary 2006, http://www.greenerliuildings,eom/news_details.cfm?NewslD=30221,

32, D. Smilh, "Conservation: Kuiiditig Grows Green-er in Bay Area," Sim Frumisco Chnmicle, I June 2005.

33, E. Beck, "Earth-Friendly Materials Go Main-streatn," New Yurk Times. 3 January 2006, 8.

34, J. M. Ginsberg and P. N. Bkxmi, "Choosing theRight Green Marketing Strategy," MIT Shniii Manage-men! Jimnuil, Fall 2(H)4: 79-84.

35, Tan, note 29 above.36, Tan, note 29, above.37, C. C. Berk. '"P&G Will Promote 'Green' Deter-

gent." Wall Sireei Journal. 19 January 2(N)5.3H, K. MeLaughiin. "Has Your Chieken Been

Drugged'.'" Wall Street Jiiunuil, 2 August 2005; and B.Weise, "Are Our Products Our Enemy?" USA Tiidiiy, 13August 2(X15.

39. MeLaughiin, ibid.40. Alston and Roberts, note 2 above.41. R. Leiber. "Tlic Dirt on Green Hottseeleaners,"

Wall Sirvel Jminuil. 29 December 2{H)5.42. M. Alexander, "Home Improved." Reailers

Digest. April 2004. 77-80.43. For example, see D, Leonhardt, "Buy a Hybrid,

and Save a Gu/.^ler," New York Times. 8 hebruary 20(Xi.44. See, lor example. D. Cave, "It's Not Sexy Being

Green (Yet)." New York Times. 2 Oetober 2(K)5.45. G. Chon, 'Toyota Goes After Copycat Hybrids;

Buyers are Asked Io Believe Branded HSD Technologyis Worth tbe Kxtra Cost," Wall Street Journal. 22 Sep-tember 2(X)5,

46. B. G. Hoffman. "Ford: Now It's Easy BeingGreen." Oetroii News, 31 January 2006.

47. See W. Mcl^mough and M. Braungart. Crudle wCradle: Remaking llie Wiiy We Make Tilings (Nev> York:North Point Press. 2(X)2).

48. R. Smilh, '"Beyond Recycling: ManufacttirersEmbrace 'C2C' Design." Wall Street Journal, 3 March2005.

49. K, Hafen. "Preston Festival Goes LF.D." higimHerald Journal. 21 September 2005,

50. O"Dell. note 20 above.51. A.Covarrubias, "In Carpool Lanes, Hybrids Find

Cold Shoulders," IJ>S Angeles Times. HI April 2(K)6,52. M, Clayton, "Hot Stuff for a Cwil Earth," Chris-

linn Siieiue Muniliir, 21 April 2005.53. See Ogiivy &. Mather Topline Report. China

Enprg\-Effiiienl CFC-Free Refrigerawr SUidy (Beijing:Ogiivy & Mather, August 1997); E. R. Stafford. C. L.Hartman. and Y. Liang. "Forces Driving EnvimnmentalInnovation Diffusion in China: The Case of Green-frce/.e." Business Horizons 9. no. 2 (2IH)3t: 122-35.

.54. J. Baker, Jr., K. Denby, and J, K. Jerrett, "Market-b;ised Government Activities in Texas," Texas Biviini'ssftcvicM'. August 2(X)5, 1-5.

55. T. Hams. ''Austinites Apply to Save With WindPower." KVUE News, 13 February 2(K)6.

56. J. Otiman, note 3 above.57. J. Oltman, noie 3 above.58. Generation Green, "Splenda Letter to Feder-

al Trade Commission," 13 January 21K)5. http://www.generationgrecn.org/20()5_()l-l-TC-letter,htm (accessed7 February 2(K)6],

59. J. Davis. "Strategies for Environmental Advertis-ing," Journal iif Consumer Miirkeiing 10, no, 2 (1993):23-25.

60. S. Farah, "The Thin Green Line." CMO Maga-zine. 1 December 2005. hitp://www.e mo magazine.eom/read/l20l0.5/green_line.html (aeccssed 9 Febru-ary 20061.

61. Ibid,62. See Jenkins, note 23 above.63. See Farah, note 60 above.M. M. Maynard, "F,.P,A, Revision is Likely to Cut

Mileage Ratings," New York Times. 11 January 2(X)6.65. For a more comprehensive overview of eco-cer-

tilieatinns and laK'ling, see L.H. Gulbrandsen, "Markof Sustainability? Challenges for Fishery and ForestryFA:o-labeling,'' Environment 47. no. 5 aiX)5); 8-23,

66. For a comprehensive overview ot other eco-cetlilleations. see Consumers Union's Web site at http://w w w.eeo-1 abe 1 s. org/h ome. c 1 m.

67. Gulbrandsen. note 65 above, pages 17-19.68. Farah. note 60 abtive. .69. Farah. iioie 60 above. '70. See GK Global Researeh, Clean Ci>al. bttp://

ge.corrL'research/grc_2_l_3.html (accessed 16 April20061,

71. A, GrisL'om Little, "It Was Just My FJ:otnagina-tion," Grisi Magazine. 10 May 2(H)5. http://grist,org/news/muck/2OO.5/O5/IO/little-ge/index.httnL

72. t , Rriseti, The Amiiotny of Buzz: How In Cre-ate Wiird-ofMouih Miirki-ting (New York: Doubleday.2000),

73. Viral tiiarketing is a form of "word-of-mouse"bu/,/ markeling defined as "the priKess of encouraginghonest communication among consumer networks, andit focuses on email as the channel." See J.E. Phelps.R. Lewis. L. Mobilio. D. Perry, and N. Raman. "ViralMarketing or Electronic Word-of-Mouth Advertising:Examining Consumer Responses and Motivation to PassAlong Email," J'lunuil