From concern to consumption
Influencing the purchase behavior of green consumers

ndustrial pollution is widely blamed for many environmental problems. Awareness of such issues has risen dramatically over recent years. As a result, concern for the environment now occupies a prominent place in public consciousness. Most business organizations realize this and fully accept the need to conduct their affairs in a socially responsible manner. Environmental welfare is a major part of this obligation. Compliance is a must.

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Opportunity knocks
But demand for green solutions also presents firms with a rich source of opportunity. Smart operators will be alert to this. Developing products that benefit rather than harm the environment can prove a highly lucrative exercise. An ability to create such products is not sufficient though. Companies need to get the message across too. Knowledge about product eco-friendliness remains limited among many consumer groups, making it vital that firms and marketers provide information which is accurate and reliable. Anything short of this increases consumer skepticism and damages trust. The prospect of purchase would then seem a million miles away. Is product greenness enough to tempt the consumer? Invariably not. In fact, the environmental performance of their purchase is often way down the list of priorities. People still attach greater merit to such as value for money, quality and performance reliability. Few are prepared to compromise. There’s nothing wrong with marketers placing strong emphasis on the green qualities of their merchandise. However, those who ignore other important attributes do so at their peril. The key is getting the balance right. Persuading individuals to ditch their customary behavior and buy green is a challenging task. Less scrupulous companies don’t aid the cause. Such operators are prone to make exaggerated promises about product performance with respect to the environment. Often they fail to come up with the goods. For many consumers it then becomes a case of once bitten and twice shy. Nevertheless, room for optimism is still plenty evident. With anxiety over the planet’s future on the increase, more and more people appear willing to give green products the benefit of the doubt. Providing the terms are favorable, that is.

Key factors that impact on consumer intentions
Consumer perception of value is a key influence on their choices. Firms can help shape these perceptions. How? By delivering products which benefit the customer and are clearly

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DOI 10.1108/SD-06-2013-0037

differentiated from competitor offerings. That way it is possible for a company to influence the purchase intentions of consumers. Buying a specific product becomes more possible as its perceived value increases. The opposite applies when perceived value is low. In the present context, perceived value relates to meeting consumer needs in terms of having a positive impact on the environment. Given the limited knowledge and misleading claims associated with green products, perceived value accrues even stronger influence on the purchase intentions of such people. Trust is another crucial factor. It stands to reason that people will be more inclined to favor companies, brands and products they feel confident about and can rely on. For green consumers, performance and reliability with respect to the environment is particularly important. But trust is a fragile entity which is difficult to create yet easily destroyed. Any firm making false claims about the ecological-friendliness of its products will sure learn that the hard way. On the other hand, organizations that prove to be trustworthy and dependable can expect customers to demonstrate loyalty in return. By definition, every purchase involves some degree of risk. Consumers fear negative consequences in the shape of such as poor performance, financial loss and sometimes even physical harm. Perceived risk is a subjective anticipation that some form of personal loss might ensue if a wrong decision is made. Therefore, minimizing risk is often the main priority. Exploiting the potential benefits offered by using a specific product becomes of secondary interest. Perception of risk thus naturally impacts on what they choose to buy. As risk levels rise, trust falls accordingly and the likelihood of purchase diminishes. Environmentally-conscious individuals have the added worry that their buying behavior might have a negative impact on the planet. The possibility of some kind of environmental penalty or damage to their character might also be feared. Such ‘green perceived risk’ heightens further when a firm behaves dishonestly with regard to performance claims. In this situation, consumers would be disinclined to either trust the product or make a purchase.

What firms can do
Making pledges that subsequently prove unfounded delivers the twin blow of harming trust and increasing perceived risk. The more reputable operators can work to counter these effects though. Actions which help to lower risk perceptions must head their agenda. One way for manufacturers to achieve this is to educate established retailers about the products. Knowledgeable retailers could then act as mediators who ensure that consumers become reliably informed. If the retailer shows faith in the product, logic says that the customer has a right to feel more confident about it too. Executed properly and a positive result can be achieved. It is possible to increase green perceived value and green perceived trust, while lowering the level of green perceived risk at the same time. Firms should also look out for other opportunities to demonstrate their sincerity and provide some extra reassurance to the consumer. One way would be to offer money back guarantees for products which fail to deliver the value promised.

‘‘ Knowledge about product eco-friendliness remains limited among many consumer groups, making it vital that firms and marketers provide information which is accurate and reliable. ’’

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‘‘ Persuading individuals to ditch their customary behavior and buy green is a challenging task. ’’

Comment
Keywords: Consumer behaviour, Green marketing, Corporate governance, Environmental welfare, Green purchase intention The review is based upon: ‘‘Enhance green purchase intentions: the roles of green perceived value, green perceived risk, and green trust’’ by Yu-Shan Chen and Ching-Hsun Chang. Factors which influence the purchase intentions of environmentally-conscious individuals are explored here. This in-depth account describes key concepts and the interaction between them before offering several suggestions how practitioners and marketers might increase consumer perceptions of value and trust, while lowering the risk consumers associate with buying green products.

Reference
Chen, Y.-S. and Chang, C.-H. (2012), ‘‘Enhance green purchase intentions: the roles of green perceived value, green perceived risk, and green trust’’, Management Decision, Vol. 50 No. 3, pp. 502-520, ISSN 0025-1747.

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