Original Article
Identifying the green consumer:
A segmentation study
Received (in revised form): 16th November 2008
Arminda M. Finisterra do Paço
has obtained her PhD in Management and is an assistant professor and researcher in the Business and Economics Department of Beira Interior
University, Portugal. Her research interests are green marketing, public and non-profit marketing, social marketing and entrepreneurship education.
Mário Lino Barata Raposo
has obtained his PhD in Management and is a full professor in the Business and Economics Department of Beira Interior University. He is Coordinator
of the research unit NECE, coordinator of the Transfer Technology Office, vice-president for Portugal of the European Council for Small Business and
vice-council of the university. His research interests are marketing and entrepreneurship.
Walter Leal Filho
has obtained his BSc, PhD, DSc and DL and heads the Research and Transfer Centre ‘Applications of Life Sciences’ at the Hamburg University of
Applied Sciences in Hamburg, Germany. His research interests are on environmental management, corporate social responsibility, marketing and the
connections between climate and behaviour.
ABSTRACT The modern world has led consumers to become increasingly concerned about the
environment. Such concerns have begun to be displayed in their purchasing patterns, with
consumers increasingly preferring to buy so-called ‘environmentally friendly products’. Marketing
managers have in turn recognised the strategic importance of marketing in finding responses to
the ‘environmental needs’ of consumers due to the influence this may have on their consumption
habits. The growing number of organisations entering the green product market also indicates
the need for suitable segmentation and positioning strategies. This paper focuses on the
identification of distinct market segments. Through the use of variables related to the environment,
as well as demographic variables, the segments that are occupied by consumers with different
sensitivities to environmental matters are identified, and the possible implications of these results
for the marketing strategies of companies are also discussed.
Journal of Targeting, Measurement and Analysis for Marketing (2009) 17, 17–25. doi:10.1057/jt.2008.28;
published online 9 February 2009
Keywords: green marketing; segmentation; environment; green consumerism; cluster analysis
INTRODUCTION
Several factors have contributed to the emergence
and growth of an environmental protection
movement, although it seems that none of them
Correspondence: Arminda M. Finisterra do Paço
Department of Business and Economics, Research Unit NECE,
University of Beira Interior, Covilhã 6200-209, Portugal
E-mail:
[email protected]
has been more important than the perception
that our planet is reaching extremely high
saturation levels of pollution.1,2 Environmental
concerns and the demand by consumer groups
for environmentally friendly products have,
for example, led to the emergence of a ‘new
marketing philosophy’, known as green
marketing.3,4
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
www.palgrave-journals.com/jt/
do Paço et al
As far as the conceptual aspects related with
green marketing are concerned, Kilbourne5
suggests that there has been an anomalous
development in this specific field of study.
Research tends to be fragmented and very
specific, sharing common aims and focusing
on the identification of the environmental
consciousness of consumers, or on the
development of scales for measuring the level of
environmental concern. At times, it is also clear
that the existing literature is written from
diverging perspectives.6–8 This fact is not
necessarily negative, but does show the plurality
of views.
However, there is also some consensus around
the idea that market segmentation and market
orientation appear as aspects to which the
marketer needs to pay special attention. The
growing concern with the environment, increased
competition, and the greater selectiveness and
demands of consumers represent some of the
immediate challenges to green marketing.
This paper comprises the following major
sections. The first section begins by presenting a
brief description of the concept of green
marketing. Next, the importance of market
segmentation is highlighted together with a
presentation of the most relevant criteria for
differentiating individuals in terms of their
environmental behaviour. After this
contextualisation, the main methodological aspects
related to the investigation are presented in the
second section. The third section discusses the
research methodology, and the fourth section
presents the results. The last section discusses
some practical implications and presents some
conclusions.
THE CONCEPT OF GREEN
MARKETING
Much of the research into environmental
responsibility was in fact undertaken in the 1970s
and 1980s, when few consumers made a serious
assessment of the impact of products on the
environment. There were few green products
available during this period, and many studies on
environmental responsibility focused on other
issues, such as energy conservation and political
18
activism. Studies on consumer behaviour have
also appeared with greater frequency in recent
years.
The 1990s have been identified as the ‘decade
of the environment’,9–11 or as the ‘the Earth
decade’.12 During this decade, social and
environmental concerns took on a greater
importance for consumer purchasing
decisions.13,14 It can therefore be said that
environmental concerns and the consumer
demand for green products were driving forces
behind the resurgence of green marketing, the
aim of which is to achieve a balance between the
objectives of sales and profits, on the one hand,
and a concern for society and the environment,
on the other.2 At the same time, firms seeking to
remain competitive and to survive in the market
began to incorporate these newly emerging
concerns in their management and marketing
decision making.3,14–17
Thus, green marketing can be defined as ‘the
holistic management process responsible for
identifying, anticipating and satisfying the needs
of customers and society, in a profitable and
sustainable way’.4
According to Polonsky,18 green or
environmental marketing consists of all activities
designed to generate and facilitate any exchanges
intended to satisfy human needs or wants, such
that the satisfaction of these needs and wants
occurs, with minimal detrimental impact on the
natural environment.
There are many factors that influence green
marketing. Products that are deemed negative and
the use of which may lead to a set of negative
effects (for example, global warming, ozone layer
depletion, rainforests’ destruction and so on) or
consequences (for example, disruptions in
agriculture, increases in the frequency of
draughts/floods) are normally unsuitable. Figure 1
outlines some of the factors associated with the
green marketing of products.
Recently, increasing attention has been paid to
the relationships among consumer behaviour,
marketing and the environment. Such attention
has been manifested in two ways: on the one
hand, there has been an increase in public
awareness about environmental aspects, and, on
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
Identifying the green consumer
Socio-economic
Political
Ecological
Ethical
Health
Technological
Bio-physical
Figure 1: Some of the factors associated with the green
marketing of products.
the other hand, an increase in the evidence of
environmental responsibility or green marketing
activities. Thus, the increase in environmental
consciousness and concern seems to be a good
incentive for decision-makers in the field of
marketing to adopt new management practices.
SEGMENTATION OF THE GREEN
CONSUMER MARKET
To set a market segmentation process in motion,
one first needs to choose a set of variables that
will then compose the so-called segmentation
bases or criteria used to identify consumption
patterns. Next, an attempt will be made to
provide an overall perspective of the various
segmentation bases and their respective variables,
seeking to direct the approach towards the
situation of the green consumer market.
Specifically, the demographic, psychographic and
behavioural criteria will be examined.
Demographic criteria
The variable ‘age’ has been explored by countless
green marketing researchers (see, for example,
Anderson et al,19 D’Souza,20 Jain and Kaur,21
Roberts,22 Samdahl and Robertson23). However,
discussion of the pertinence of this variable for
distinguishing between green consumers and
other consumers has not always enjoyed general
agreement. There are studies suggesting that there
is no significant correlation between age and
environmental attitudes/behaviour.24 Others
suggest that there is a significant and negative
correlation,19,25,26 while yet others have found a
significant and positive correlation between age
and environmental sensitivity and behaviour.22,23
The development of the roles, skills and
attitudes assumed by each gender has led many
researchers to argue that women are more likely
to present pro-environmental behaviour. But the
results obtained in relation to this variable have
not always produced similar results. For example,
some studies agree when they conclude that
women are more aware of and concerned with
the environment than men.27–30 Mainieri and
Barnett31 state that women tend to be more
pro-environmental than men, insofar as they buy
more green products and participate more in the
separation of packages for recycling, but they did
not find any significant differences between the
two genders in terms of their participation in
activities for the conservation of natural resources
or participation in environmentalist groups.
Individuals with greater training and higher
educational levels, and consequently enjoying
access to more information, are expected to
display greater concern, acting more frequently in
favour of the environment. For example, Granzin
and Olsen32 found that there was a positive
relationship between the variable ‘education’ and
the variable ‘walking for environmental reasons’
(instead of using a car). However, this variable’s
explanatory capacity is not confirmed by other
studies.31
Although the results of studies examining the
relationship between the variable ‘education’ and
environmental aspects are more consistent than
those of other demographic variables, no
definitive and conclusive relationship has yet been
established between the two variables.15 Most of
these studies found a positive relationship between
the variable ‘educational level’ and environmental
attitudes.19,22,25,26 However, Samdahl and
Robertson23 noted that level of education is
negatively correlated with environmental attitudes,
and Kinnear et al24 did not find a significant
correlation between these two variables.
It is generally believed that income is positively
correlated with environmental sensitivity. The
most common justification for this situation is
based on the fact that individuals with a higher
income level can more easily bear the marginal
increase in the costs associated with supporting
‘green causes’ and buying green products.15
The results of the studies by Berkowitz and
Lutterman27 and Henion33 suggest that consumers
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
19
do Paço et al
with middle and high incomes and a higher
educational level are more predisposed to display
a pro-environmental behaviour. However,
environmentally friendly behaviour was not
shown to be consistent throughout the various
income brackets. Samdahl and Robertson23
concluded in their study that environmentally
aware consumers had a lower educational level
and lower income than the average for Americans
as a whole. This led them to conclude that
income and educational level were not very
reliable variables for predicting environmental
concern or buying behaviour.
Psychographic criteria
It was in the 1960s that the concept of lifestyle
first began to be used more frequently by
marketing managers in research undertaken into
the phenomena of buying and consumption. This
concept is based on the study of people’s
activities, interests and opinions.34 As far as the
question of activities is concerned, it is likely that
those individuals who are more closely involved
in community and/or socially responsible
activities may display a more pro-environmental
behaviour.35 In relation to the matter of interests
and opinions about political questions, there exists
a perception that, in general, environmental
themes are part of a ‘liberal’ political agenda.
Some studies suggest that individuals with a
liberal political background are more likely to
display a strong commitment to the green
movement, in contrast to those with more
conservative political views.15,36
Since the 1970s, variables relating to personality
have been used in segmentation studies, but,
according to Cornwell and Schwepker,35 two
of these variables have been given more attention
than the others: locus of control (which describes
the extent to which the individual perceives
that a reward or improvement depends on his
behaviour), and alienation (the individual’s
feeling of being isolated from his community,
society or culture). The first variable was
examined in some studies relating to
environmental concern. In turn, the variable
‘alienation’ has been used in several studies of
pro-environmental behaviour.37
20
The variables of personality have shown a high
level of correlation with environmental
consciousness.24,38 However, although this
relationship was noted in many studies, the fact
remains that the results have been inconsistent in
regard to specific pro-environmental behaviour,
such as green product buying decisions.
The variable values may also be included in
the psychographic segmentation basis. The studies
undertaken by Homer and Kahle39 and McCarty
and Shrum40 helped to clarify the
interrelationship between values, attitudes and
environmental behaviour. The research undertaken
by Homer and Kahle39 provided the empirical
support for the hierarchical effect of the ‘valueattitude-behaviour’ model in the case of
ecological food. Individuals buying products of
this type gave greater importance to the values of
internal orientation (self-realisation, happiness and
fun, a sense of completeness and self-respect)
whereas those not buying them seemed to be
more geared towards external values (sense of
belonging, being respected and safety).
Follows and Jobber41 suggest that individuals
who give greater importance to conservative
values either do not wish to complicate their lives
due to changes, or do not wish to be involved
in something that is not the norm. In this way,
it is thought that such individuals attach little
importance to the direct impact that products
have on the environment and great importance to
the direct impact of the products themselves.
Behavioural criteria
In behavioural segmentation, buyers are divided
into groups based on their knowledge, attitude,
use of a product or response to a product, with
an attempt also being made to understand their
buying behaviour from the viewpoint of users
and non-users.
Chan42 sought to segment the market, based on
the usage rate of green products, and to understand
how the segments differed in terms of their
demographic profile, perception and attitude
towards the purchase of green products. Consumers
showing a high utilisation rate of these products
(Heavy Green Consumers) were found to be more
influenced by the opinions of other people, the
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
Identifying the green consumer
government and environmentalist groups, had a
strong sense of identity and were concerned about
the environment. In turn, those who consumed far
less (Light Green Consumers) displayed a low usage
rate, and thought that ecological products were
harder to find.
In the case of the variable ‘attitude’, the
attitudes of green consumers must, by definition,
express environmental concern.24 Research has
shown that environmental concern is related,
but not highly correlated, with consumer
behaviour.35 Balderjahn37 concluded that
individuals who had a positive attitude towards
the environment participated more in the buying
and consumption of green products.
Consumers do not always base their buying
decisions on their attitudes towards the
environment, even though these attitudes can
have a fairly strong influence on their purchases.36
Several studies have investigated the relationship
between attitudes towards the environment and
the buying of products38,43 or the intentions of
use.44 It seems that the more closely involved
consumers are with the environment, the more
likely they are to buy green products.45
RESEARCH METHODOLOGY
What the previous bibliographical study of the
segmentation of the green market has highlighted
is the fact that the various types of consumers
may have different concerns and emotional
attachments towards the environment, different
environmental knowledge and different
environmentally friendly behaviours.
As mentioned earlier, this paper seeks to
identify different segments of consumers. Given
the complexity and the range of variables that
may determine the characterisation of these
groups, as made evident in the literature review, it
was decided to focus this research mainly on
analysing the environmental and demographic
criteria.
The data used in this study were collected
through a survey of Portuguese consumers. The
model of data collection was a survey conducted
by means of a self-administered questionnaire. A
group of 55 interviewers (university students) was
used to distribute the questionnaries in their cities
of origin. The main objective was to extensively
cover the national territory in Portugal. The
objectives of the study, as well as some technical
and ethical issues, were explained to the group of
interviewers before the collection of data
commenced. Thus, a convenience sample was
used and the final sample was composed of 887
individuals aged over 18.
The questionnaire was composed of two main
sections. In the first section, data were collected
about the demographic characteristics of
respondents (gender, age, income, educational
level and job/occupation). The second section
examined the environmental dimension (concern,
affect, knowledge, environmentally friendly
behaviours, information search, activism, green
product buying behaviour, sensitivity to price,
recycling, perceived efficiency and scepticism).
The scales used to measure this dimension were
Likert scales (min 1; max 5).
After collection, the data were statistically
analysed and interpreted using the statistical
software SPSS 15.0 (Statistical Package for Social
Sciences). The data obtained were submitted to a
Multivariate Statistical Analysis, which included
the following sequence of statistical treatment:
factor analysis, cluster analysis and discriminant
analysis. After this, a characterisation was made of
the segments found.
RESULTS
As the number of variables used in this research is
quite extensive, an exploratory factor analysis was
used to simplify the interpretation of the
variables. Each of the factors was depicted by
means of several items used in the questionnaire.
The factor analysis used to determine the
factors that were relevant to the study originated
nine new variables. These were then used as
inputs in later analyses (cluster and discriminant).
After analysing the percentage variation of the
agglomeration coefficient, it was decided to
opt for a three-cluster solution (Table 1). The
cluster method used was Ward’s method, and the
interval measure was the Squared Euclidian
distance.
The variables showing the highest positive or
negative scores in absolute terms help to explain
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
21
do Paço et al
Table 1: Cluster analysis results
Variables
Cluster 1
n=319 (36.0%)
Environmentally friendly buying
behaviour
Environmental activism
Environmental knowledge
Environmental concern
Recycling
Perceived consumer effectiveness
Resource saving
Economic factor
Scepticism towards environmental
claims
Mean
Standard
deviation
− 0.3432
1.1392
− 0.3455
0.3075
0.0317
− 0.3128
− 0.0166
− 0.2660
− 0.1732
0.0085
0.8244
0.8940
1.0134
1.1556
0.9422
1.0856
1.0146
1.0168
Table 2: Tests of equality of group means
Variables
Environmentally friendly
buying behaviour
Environmental activism
Environmental knowledge
Environmental concern
Recycling
Perceived consumer
effectiveness
Resource saving
Economic factor
Scepticism towards
environmental claims
Wilks’
lambda
F
Sig.
0.885
57.197
0.000
0.933
0.829
0.977
0.931
0.839
31.797
91.095
10.282
32.708
85.017
0.000
0.000
0.000
0.000
0.000
0.948
0.955
0.997
24.161
20.651
1.238
0.000
0.000
0.290
the inclusion of consumers in the different groups
or clusters.
After the ‘optimum’ number of clusters had
been found, several tests were carried out in order
to discover whether there were any significant
differences among the groups. For this reason, it
was decided to use one-way variance analysis and
discriminant analysis.
By observing the results in column F of Table 2,
it can be seen that these allowed us to reject the
null hypothesis of equal means among the groups,
and to accept the alternative hypothesis, as the
groups displayed different means. Excluded from
this situation was the variable ‘Scepticism towards
environmental claims’. All the other variables,
when considered individually, are significant for
differentiating between the groups.
The Wilks’ lambda test statistic is designed to
determine the discriminant function that
22
Cluster 2
n=311 (35.1%)
Mean
Cluster 3
n=257 (29.0%)
Standard
deviation
Mean
Standard
deviation
0.4424
0.7501
− 0.1094
0.8781
0.1938
0.2168
0.1512
0.3094
0.4651
0.2740
0.2865
− 0.0643
1.0843
0.7613
0.8345
0.7576
0.7838
0.7895
0.9656
1.0640
0.1943
− 0.6441
− 0.2224
0.0139
− 0.5423
− 0.0014
− 0.1317
0.0673
0.9802
1.0839
1.1239
0.9320
1.0276
1.0309
0.9480
0.8923
maximises the quotient between the variation
explained by the difference between the group
means and the variation within these groups. The
result obtained suggests that the variable
‘Environmental knowledge’ provides the greatest
difference between the means of the clusters, as it
presents the lowest score.46 After this, and in
descending order of their discriminatory power,
come the variables ‘Perceived consumer
effectiveness’, ‘Environmentally friendly buying
behaviour’, ‘Recycling’, ‘Environmental activism’,
‘Resource saving’, ‘Economic factor’,
‘Environmental concern’ and ‘Scepticism towards
environmental claims’.
The discriminant analysis that was undertaken
made it possible to find two discriminant
functions (Table 3). The differences between the
clusters may be analysed on the basis of the
loadings of these functions.
The statistical significance of the functions is
represented by the value of the Wilks’ lambda test
statistic, which, when transformed into a Chisquare, has a significance level of 0.000. This
shows that the functions are significant for
discriminating between the groups found.47
In view of the statistical significance observed
among the groups, it is useful to examine the
individual contribution of the variables to the
discriminant functions. The relative contribution of
each of the variables to the discriminant function can
be analysed through the structure matrix (Table 4).
We are now in a position to be able to
characterise the various groups or segments of
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
Identifying the green consumer
Table 3: Canonical discriminant functions
Functions
1
2
Eigenvalue
Wilks’ lambda
Chi-square
DF
Sig.
0.742
0.387
0.414
0.721
776.053
287.793
18
8
0.000
0.000
Table 4: Structure matrix
Variables
Perceived consumer
effectiveness
Environmentally friendly buying
behaviour
Economic factor
Environmental concern
Scepticism towards
environmental claims
Environmental knowledge
Environmental activism
Recycling
Resource saving
Function 1
Function 2
0.479a
− 0.214
0.369a
0.270
0.241a
0.152a
− 0.059a
0.097
− 0.125
0.022
0.298
0.115
0.236
0.209
− 0.602a
0.401a
0.291a
0.239a
(middle and senior management and specialists
from the intellectual, scientific and artistic
occupations) and earning higher incomes. The
individuals in this segment have a favourable
position in relation to all environmental aspects,
particularly towards perceived efficiency,
environmentally friendly buying behaviour,
recycling, sensitivity to the economic factor and
resource saving, but they show themselves to be
sceptical about the promotional and advertising
claims made by firms.
a
Largest absolute correlation between each variable and any
discriminant function.
consumers found, bearing in mind the results
obtained previously, through the various statistical
procedures. It was thus decided that the three
segments should be named, as follows:
Segment 1 – ‘The uncommitted’ (36 per cent)
This segment mainly consists of young people
(aged between 18 and 34), and is the segment
that includes younger individuals with high
educational levels (secondary and higher
education), service, sales and administrative
workers, and students, with monthly incomes
ranging from S500 to S1000 and living in urban
environments. The individuals in this segment
have very negative positions in relation to some
environmental aspects (activism, environmentally
friendly buying behaviour, recycling, resource
saving and willingness to pay more to preserve
the environment), despite the fact that they claim
to have knowledge about the issue.
Segment 2 – ‘The green activists’ (35 per cent)
This segment is composed of individuals whose
ages range between 25 and 34 years and 45 and
54 years. Compared to the other segments, this is
the one that groups together those individuals
with the highest education levels (higher
education), working in more qualified jobs
Segment 3 – ‘The undefined’ (29 per cent)
This segment includes individuals from the higher
age groups, and those with lower educational
levels than the other segments. These individuals
are service, sales and administrative workers,
middle and senior managers, and unskilled and
domestic workers, with monthly incomes of up
to S1000. They have very negative positions
towards environmental issues, although they are
activists, which is curious. They have a positive
attitude towards recycling, and are highly sceptical
about the promotional and advertising claims
made by firms. They claim to have little
knowledge about environmental issues. The
environment does not occupy a prominent
position among their concerns, and they consider
that their individual action does not contribute to
the improvement of the environment.
CONCLUSIONS
The results of this study show that consumers
who buy green products do so for specific
reasons, and that certain environmental and
demographic variables are significant for
differentiating between the ‘greener’ segment and
the other segments. Yet, generally speaking, one is
left with the impression that the Portuguese
sample, despite their support for policies designed
to improve the environment, do not translate
their concerns into actions: they rarely join
© 2009 Palgrave Macmillan 0967-3237 Journal of Targeting, Measurement and Analysis for Marketing Vol. 17, 1, 17–25
23
do Paço et al
environmentalist associations and they do not take
part in policy-making. Their participation is often
based on protecting the environment by saving
electricity and water, which shows that these
concerns may be more closely related with
economic factors than with an environmental
consciousness.
It can be concluded that the Portuguese
consumers sampled here understand the
challenges currently placed before the
environment, and that they are aware of the
existence of environmental problems, even though
their concerns are not always translated into
environmentally friendly behaviour. It was also
noted that there are consumers who are prepared
to base their buying decisions on purchasing
products that do not harm the environment. In
fact, it was seen that there is a segment of
‘greener’ consumers in the sample that differs
significantly in some aspects from the other
market segments.
These segments should be analysed by firms in
order to assess their attractiveness, adopt a correct
positioning towards them and define suitable
marketing programmes. The identification of the
three market segments may make it possible to
implement a complex segmentation strategy, as
this provides a differentiated range of consumer
perceptions and choices in relation to the target
market.
It is therefore to be concluded that those firms
that do not respond to the ‘green challenge’ with
products that are safer for the environment will
risk losing some credibility in the eyes of those
consumers who are more concerned with
environmental issues. In turn, those firms that use
green marketing strategies will be able to take
advantage of the countless opportunities presented
by environmental consumerism.
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