50 Shades of Green: Understanding Green Consumers
Learning Outcomes Sustainable Tourism By the end of this session, you should be able to:
• Critique the key influences, drivers and motivations that influence ‘green’ consumer buyer behaviour • Apply frameworks for analysing consumer buyer behaviour • Evaluate key approaches key market segmentation for green consumers • Relate market segmentation activities to specific sectors
Buyer Behaviour
Activity 1: • What are the key influencers and motivators that influence green purchasing decisions/green buyer behaviour? • What are key areas for potential segmentation activity?
Buyer Behaviour
Deloitte (2009) Finding the Green in Today’s Shoppers – Sustainability Trends and New Shopper Insights, Deloitte, London.
Buyer Behaviour
Deloitte (2009) Finding the Green in Today’s Shoppers – Sustainability Trends and New Shopper Insights, Deloitte, London.
Buyer Behaviour Tourism
Schmoll (1977)
Buying Behaviour Tourism
Howard-Sheth (1969)
Buyer Behaviour Consumers
Consumer Buyer Behaviour
BUYER PROPOSITION INDIVIDUAL PSYCHOLOGICAL FACTORS Cognitions, learning processes, Interpersonal response traits, attitudes, motivations, personality theories
CULTURAL
ECONOMIC
SOCIOLOGICAL
Cultural beliefs & values Life Styles
Price Delivery Payment terms Sales service
Social class structure Family/Group influence Life-cycle Opinion leadership
Chisnall (1998)
Buyer Behaviour Consumers
Consumer Buyer Behaviour
Buyer Behaviour Consumers
Buyer Behaviour Green Consumers
Young, W. et al (2010) Sustainable consumption: green consumer behaviour when purchasing products, Sustainable Development, 18 (1), 20-31
Green Consumer Purchasing Model
Buyer Behaviour Green Consumers
Milovanov (2015) Marketing and sustainability: identifying the profile of green consumers, Strategic Management, 20 (4), 5466
Four Groups of Green Purchase Drivers
Buyer Behaviour Green Consumers
Deloitte (2009) Finding the Green in Today’s Shoppers – Sustainability Trends and New Shopper Insights, Deloitte, London.
Green Consumer Purchasing Model
Buyer Behaviour Green Consumers
Deloitte (2009)
Buyer Behaviour Green Consumers
Deloitte (2009)
Buyer Behaviour Green Consumers
Deloitte (2009)
Buyer Behaviour Green Consumers
[DEFRA (2009) A Framework for Pro-Environmental Behaviours, DEFRA, London]
Buyer Behaviour Green Consumers
DEFRA (2009)
Buyer Behaviour Green Consumers
DEFRA (2009)
Green Consumers Segmentation
Shades of Green
Green Consumers How Green are Your Customers? Deep Green Indicative attributes: Considerable interest in environmental issues; keen to protect wildlife and keep the environment pristine for outdoor recreation; care about air and water quality; interested in ecotourism; willing to pay a premium; keen to support visitor pay-back schemes
Light Green Indicative attributes: Some interest in environmental issues; want to balance the needs of the environment with other needs; understand the need for a reduction in carbon emissions; will recycle items if the process is made easy for them; keen to purchase quality local produce; need convincing to pay a premium or support visitor pay-back schemes
Not Green Indicative attributes: Indifferent or antagonistic to environmental issues; not convinced that to need to reduce carbon emissions; spectical about the benefits of sustainable development; unwilling to pay more to reduce environment impact; suspicious of businesses that promote environmental issues
Buyer Behaviour Green Consumers
DEFRA (2009)
Buyer Behaviour Green Consumers
DEFRA (2009)
Buyer Behaviour Green Consumers
Deloitte (2009)
Buyer Behaviour Green Consumers
Deloitte (2009)
Buyer Behaviour Green Consumers
Deloitte (2009)
Green Consumers Segmentation
Shades of Green Case Study: Tourism
Green Tourists Tourism
English Tourism Council (2002): • 63% of consumers would be willing to pay extra to stay with an accommodation provider that was committed to local purchasing • 65% of consumers would be willing to pay extra to stay with an accommodation provider that was committed to good environmental practices • 96% of consumers agreed it was ‘important to protect the traditional character of a destination’
Green Tourists Tourism
Devon County Council (2005): • 54% consider environmental issues when booking • 82% of visitors are willing to pay more for environmentally responsible products • 72% think an environmentally aware business is more likely to be MORE quality conscious • TripVision's tracking survey of UK travelers shows that environmental issues are of increasing importance to consumers
Green Tourists Tourism
What consumers look for in sustainable accommodation? The most motivating elements offer a tangible benefit to them personally in terms of quality/ease/convenience (VisitBritain, 2007) Minimum Requirement
Added Bonus
Motivating
Recycling by accommodation
Landscaping for biodiversity
Locally sourced/organic food
Recycling points for guests
Reduced water consumption (showers)
Eco/Recycled products
Renewable energy sources
Information on local area (public transport, local businesses, local food, local cultural events)
Energy saving measures
Home-grown food
Reduced water consumption (toilets, sheets/towel change) Composting (rural)
Network of sustainable businesses Employ local people Bicycles for hire Pick up from local station
Green Tourists Tourism
The most motivating aspects of sustainability are also the ones where the impact is less to do with the environment and more to do with economy/culture and are primarily local rather than global in effect (VisitBritain, 2007) Minimum Requirement
Added Bonus
Motivating
Supporting the environment at an expected level
Supporting the environment by going the extra mile/investing
Supporting the local economy & community
= GLOBAL
= GLOBAL
= LOCAL
Positive reinforcement of decisions already happy to make
Opportunity to have positive impact on places visited
Green Tourists Tourism
Bergin-Seers and Mair, J. (n.d) Emerging Green Tourists: Their Behaviours and Attitudes, Best EN Think Tank VIII
Green Tourists Tourism
Depends on what they are paying for…. Less prepared to pay for:
More prepared to pay for:
Actions having a benefit to the provider, e.g.:
§
Tangible benefits for them/ the community or benefits that enhance the holiday experience, e.g.:
§
Reducing stress of everyday/city life, getting away from it all e.g. help and guidance on what to do/see, travel options in local area
§
Quality of experience e.g. locally sourced (fresh, unpackaged, home-grown) food
§
Anything fulfilling the search for a special/unique/individual experience and feeling they are “part of” the community by putting back in
§
Being healthy e.g. nature walks, cycling, eating “homemade” food
§
Recycling
§
Basic energy saving measures i.e. timed lighting vs. solar panels
§
And outside of London/SE, reduced water consumption Water shortages in SE mean Londoners are more tuned into the issue and more open to idea of re-using/not-using water than those in other regions
Buyer Behaviour Consumers
Green Consumers Segmentation
Shades of Green Case Study: Food
Green Consumers Foodies
NEOPHILE
• Gastronomes – High interest/involvement • Indigenous Foodies • High & moderate interest/involvement
• ‘Tourist Foodies’ – Low interest/involvement • Familiar Foods – Low interest/involvement
NEOPHOBE
Green Consumers Foodies
[EVERETT, S. AND AITCHSON, C. (2008), The role of food tourism in sustaining regional identity: A case study of Cornwall, South West England, Journal of Sustainable Tourism, Vol. 16, No. 2, pp. 150-167]
Green Consumers Foodies
• MAFF and Countryside Commission - Enteleca Research and Consultancy (2000) – Tourists have a very vague view of what is local – ‘Local’ is part of their definition of ‘speciality’ but have not thought deeply about the difference between locally produced and speciality foods – Tourist perceptions are more linked to geographical knowledge and personal experience than awareness of any official criteria of designation – 61-69% of holiday-makers recognise that food makes a positive contribution of their holiday, and 39% say that it contributed ‘a lot’
Green Consumers Foodies
• MAFF and Countryside Commission - Enteleca Research and Consultancy (2000) – 72% of visitors to the study regions (Cumbria, SW, Heart of England and Yorkshire) took an interest in local food during their visit, and while positively disposed to local produce needed the opportunity to sample it – 35-36% of food tourists believe they would make more purchases and eat more in restaurants offering local food if there was more branding or labeling
Green Consumers Foodies
– Food Tourists (6-8%) - seeking local food and drink is a particular reason for choosing their holiday destination emphasis on ‘good food’ and ‘good restaurants’ – Interested Purchasers (30-33%) - they purchase and/or eat local foods when the opportunity arises – Unreached (15-17%) - happy to try local food when they come across it but at present are not purchasing local foods – Unengaged (22-24%) - do not regard food and drink as adding to their enjoyment of their holiday, but are not negative to sampling local foods – Laggards (17-28%) - uninterested in local foods and are unlikely to have purchased any during their holiday
Green Consumers Foodies
Green Consumers Foodies
Food Consumers
Food Consumers
https://www.foodservicedirector.co m/managing-yourbusiness/generatingrevenue/articles/courting-todays-7key-consumer-types?page=0%2C0
Food Consumers
Green Consumers
Shades of Green Case Study: Walking and Cycling
Green Consumers Walkers
Green Consumers Foodies
Green Consumers Foodies
Green Consumers Foodies
Effective Segmentation Measurable Accessible Sustainable Stable Congruent Substantial
• ‘Strategic Fit’ • Corporate objectives/direction • Corporate capabilities (SWOT & TOWS)
Effective Segmentation JICNARS
Social Class & Income A • Higher managerial, administrative, or professional B • Intermediate managerial, administrative, or professional C1 • Supervisory, clerical, junior administrative or professional C2 • Skilled manual workers D • Semi-skilled and unskilled manual workers E • State pensioners, widows, casual and lowest grade earners
Effective Segmentation
A Classification Of Residential Neighbourhoods (ACORN) •
Based on households & occupants from Census data
•
Targeted direct mail campaigns
•
Retail store location
Geo-demographic Segmentation
Effective Segmentation • Attractiveness of market segment – Size, growth, competitive structure, barriers to entry, maturity, volatility • Organisation’s business capability – Customer/market knowledge, product capacity, flexibility, ability to compete, speed of R&D
Market Attractiveness • Market size & growth • Industry profitability • Market structure & competitive intensity • Scale economies • Technology & capital requirements • Cyclical & seasonal factors • Regulatory, environmental & social influences
Learning Outcomes Sustainable Tourism By the end of this session, you should be able to:
• Critique the key influences, drivers and motivations that influence ‘green’ consumer buyer behaviour • Apply frameworks for analysing consumer buyer behaviour • Evaluate key approaches key market segmentation for green consumers • Relate market segmentation activities to specific sectors