Nav: Home

Why do consumers participate in 'green' programs?

July 22, 2016

From recycling to reusing hotel towels, consumers who participate in a company's "green" program are more satisfied with its service, finds a new study co-led by a Michigan State University researcher.

Doing good makes customers feel good, and that "warm glow" shapes opinion, said Tomas Hult, Byington Endowed Chair and professor of marketing in the Eli Broad College of Business. But it gets more complicated when companies throw incentives into the mix.

"Companies are increasingly adopting sustainability initiatives and ultimately these 'green' programs are intended to be good for the environment and also increase customers' satisfaction," said Hult, who is director of MSU's International Business Center. "Our research helps strike the right balance between incentivizing customers to participate in green programs and focusing on the bottom-line performance of the company."

Hult and researchers from Cornell University and Florida State University conducted four studies in three service settings: restaurants, hotels and online retailing. They found the types of rewards offered by companies to participate in sustainability programs could affect satisfaction.

The researchers tested two types of incentives: those that benefit solely the consumer (i.e. loyalty points) and those that benefit another organization (i.e. charitable donations).

For green program participants, rewards that benefit another organization created the highest rate of satisfaction about the business.

And for those who chose not to participate in a green program, self-benefiting rewards cast doubt about the motive of a program. That scenario offers nonparticipants an opportunity to rationalize their decision to not participate, and lack of guilt translates into feelings of satisfaction about the business, Hult said.

People will interpret incentives in whatever way best suits their egos, he said. So for both groups to be happiest, a company should allow customers to choose between a reward that benefits themselves or another organization.

Many managers, particularly in the hospitality industry, are reluctant to introduce sustainability initiatives that might negatively influence the guest experience, Hult said. But this research, one of the first of its kind, provides managers with guidance on how to best design such programs as well as best practices for "green marketing."
-end-
In addition to Hult, the research team comprised Michael Giebelhausen and HaeEun Helen Chun, both assistant professors of marketing at Cornell University, and Joseph Cronin, John R. Kerr Eminent Scholar Chair in Marketing and Service Innovation at Florida State University.

The study is published in the July edition of the Journal of Marketing.

Michigan State University

Related Consumers Articles:

'Locally grown' broccoli looks, tastes better to consumers
In tests, consumers in upstate New York were willing to pay more for broccoli grown in New York when they knew where it came from, Cornell University researchers found.
Should patients be considered consumers?
No, and doing so can undermine efforts to promote patient-centered health care, write three Hastings Center scholars in the March issue of Health Affairs.
Consumers choose smartphones mostly because of their appearance
The more attractive the image and design of the telephone, the stronger the emotional relationship that consumers are going to have with the product, which is a clear influence on their purchasing decision.
When consumers don't want to talk about what they bought
One of the joys of shopping for many people is the opportunity to brag about their purchases to friends and others.
As consumers, how do we decide what's 'best' when it's not clear?
Imagine you are choosing between two resorts for your island vacation.
Effects of ethnocentrism on consumers
Aitor Calvo-Turrientes, winner of the prize for End-of-Degree Project in Sustainability in 2015 awarded by the Faculty of Economics and Business of the UPV/EHU-University of the Basque Country in Vitoria-Gasteiz, is the author of the paper 'The valuation and purchase of food products that combine local, regional and traditional features: The influence of consumer ethnocentrism,' published recently by the prestigious journal Food Quality and Preference.
Organic consumers mean business
Groundbreaking research from Aarhus BSS shows that organic consumers are standing fast and are buying more and more organic products following an increasingly predictable pattern.
Perfect mannequins a turnoff for some consumers
Mannequins' long legs, tiny waistlines and perfect busts can sour some shoppers on the products they're wearing, especially consumers who don't like the look of their own bodies.
What's in a name? For young Chinese consumers, it's about culture mixing
Younger, more cosmopolitan Chinese consumers tend to favor brand translations that keep both the sound and the meaning of the original name, says U. of I. business professor and branding expert Carlos J.
Why do consumers participate in 'green' programs?
From recycling to reusing hotel towels, consumers who participate in a company's 'green' program are more satisfied with its service, finds a new study co-led by a Michigan State University researcher.
More Consumers News and Consumers Current Events

Trending Science News

Current Coronavirus (COVID-19) News

Top Science Podcasts

We have hand picked the top science podcasts of 2020.
Now Playing: TED Radio Hour

Our Relationship With Water
We need water to live. But with rising seas and so many lacking clean water – water is in crisis and so are we. This hour, TED speakers explore ideas around restoring our relationship with water. Guests on the show include legal scholar Kelsey Leonard, artist LaToya Ruby Frazier, and community organizer Colette Pichon Battle.
Now Playing: Science for the People

#568 Poker Face Psychology
Anyone who's seen pop culture depictions of poker might think statistics and math is the only way to get ahead. But no, there's psychology too. Author Maria Konnikova took her Ph.D. in psychology to the poker table, and turned out to be good. So good, she went pro in poker, and learned all about her own biases on the way. We're talking about her new book "The Biggest Bluff: How I Learned to Pay Attention, Master Myself, and Win".
Now Playing: Radiolab

Uncounted
First things first: our very own Latif Nasser has an exciting new show on Netflix. He talks to Jad about the hidden forces of the world that connect us all. Then, with an eye on the upcoming election, we take a look back: at two pieces from More Perfect Season 3 about Constitutional amendments that determine who gets to vote. Former Radiolab producer Julia Longoria takes us to Washington, D.C. The capital is at the heart of our democracy, but it's not a state, and it wasn't until the 23rd Amendment that its people got the right to vote for president. But that still left DC without full representation in Congress; D.C. sends a "non-voting delegate" to the House. Julia profiles that delegate, Congresswoman Eleanor Holmes Norton, and her unique approach to fighting for power in a virtually powerless role. Second, Radiolab producer Sarah Qari looks at a current fight to lower the US voting age to 16 that harkens back to the fight for the 26th Amendment in the 1960s. Eighteen-year-olds at the time argued that if they were old enough to be drafted to fight in the War, they were old enough to have a voice in our democracy. But what about today, when even younger Americans are finding themselves at the center of national political debates? Does it mean we should lower the voting age even further? This episode was reported and produced by Julia Longoria and Sarah Qari. Check out Latif Nasser's new Netflix show Connected here. Support Radiolab today at Radiolab.org/donate.