A research report by Karin Armgarth

// A TOUCH OF GREEN

A TOUCH OF GREEN a research report 2009

FOREWORD

ABOUT THE AUTHOR

Karin Armgarth (1986) is a final year Fashion & Branding student at the Amsterdam Fashion Institute (AMFI), The Netherlands. Her fascination lies within all controversial, complex and paradoxal subjects having a foundation in social, cultural and economic issues effecting consumers and brand developments.

ABSTRACT

This research report explores the issue of the environmental consumer trend, green marketing and greenwash; more explicitly the possibility for less-green brands to communicate their concern about the environment to the growing eco-conscious consumer group, without running the risk of being accused of greenwash.

To examine this notion, the three subjects were reviewed and existing data and theories synthesised through secondary research, resulting in field establishment and the possibility of cross-sectional theoretical analysis, determining potential solutions. Based on the secondary research, four case studies of prospective successful green marketing solutions were further examined, resulting in eight hypotheses. The hypotheses were concerning the possible attitudes towards the solutions. These were later tested in primary research in form of focus group discussions. Results show that green marketing from lessgreen brands often have serious unfavourable consequences. However, with the right positioning strategy and marketing objective, businesses can avoid the risk of being accused of greenwash. The green marketing approach must ensure there will be no trade-off between the green emotional values associated with the brand and the green functional benefits actually provided by the campaign.

This implies that the marketing activities must provide actual functional benefits towards the environment, which could happen through for example encouraging consumer action and enabling the action through environmental consumer platforms. The emotional attitudes towards the brands should not manipulate the consumer into believing for example that the brand is greener than it is. However, by providing transparent information, the concern the brand has about the environment could be communicated. Three recommended strategies were concluded, issuing results through activities and marketing tools such as product replacements, experiential marketing, internal and external initiatives, programmes or collaborations, and branded communication campaigns. The outcome could be that of helping the society overall while enhancing the corporate image, building brand credibility for future green initiatives while establishing a connection with the growing eco-conscious consumer group.

CONTENT CHAPTER 1. ISSUE IDENTIFICATION 1.1 Subject Overview 1.2 Rationale 1.3 Objective 1.4 Methodology

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1.5 Framework & Important Notices 1.5.1 Supplements 1.5.2 Target Industry 1.5.3 Alternative Purpose 1.5.4 Key-words and Glossary 1.5.5 Subject Sensitivity 1.6 Report Structure

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CHAPTER 2. THE ECO TREND 2.1 Definition and Purpose 2.2 Consumer Implications

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1.4.1 Introduction 1.4.2 Secondary Research 1.4.3 Primary Research 1.4.4 Future Research Recommendations

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CHAPTER 4. GREENWASH 4.1 Definition and Purpose 4.2 In-depth Aspects 4.2.1 Greenwashing Today 4.2.2 Greenwashing in the Fashion Industry 4.2.3 Standards and Regulations 4.2.4 Do Not’s of Green Marketing

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CHAPTER 5. CASE STUDIES: THEORETICAL 26 ANALYSIS AND HYPOTHESES 5.1 Introduction 5.2 Adidas Guerrilla Gardening 5.3 DKNY’s City Bikes 5.4 Target and TerraCycle Collaboration 5.5 Nike’s Green Initiatives 5.6 Hypotheses

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2.3 Business Implications 2.3.1 Level of Green Incorporation 2.3.2 Benefits and Implications 2.3.3 Consumerism, sustainability and Business 2.4 Fashion Implications 2.4.1 Organic Material 2.4.2 The Green Image and Self-identity 2.4.3 Fast-Fashion and Sustainability

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CHAPTER 6. PRIMARY RESEARCH FOCUS GROUP

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6.1 Short Survey Findings 6.2 Focus Group Strategy 6.3 Findings 6.3.1 Adidas 6.3.2 DKNY 6.3.3 Target and TerraCycle 6.3.4 Nike 6.4 Discussion 6.4.1 Adidas 6.4.2 DKNY 6.4.3 Target and TerraCycle 6.4.4 Nike

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CHAPTER 3. GREEN MARKETING 3.1 Definition, Purpose and Components

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CHAPTER 7. CONCLUSION AND RECOMMENDATIONS

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3.2 In-depth Strategies 3.2.1 Functional versus Emotional Positioning Strategy 3.2.2 Functional Positioning Strategy 3.2.3 Emotional Positioning Strategy 3.2.4 Green Marketing Strategies 3.2.5 Green Marketing Dilemma 3.2.6 Green Marketing & the Fashion Industry

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7.1 Conclusion 7.2 Recommendations: three strategies 7.2.1 Product Replacement and Experiential Marketing 7.2.2 Functional and Emotional Corporate Hygiene 7.2.3 Branded Communication and Consumer Action Glossary Reference List Appendix I: The Advertising Codes Appendix II: Key words for cross-sectional theoretical analysis Appendix III: Bike Sharing Network

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2.2.1 Concern and behaviour 2.2.2 Green Consumer Behaviour Theories 2.2.3 Green Consumer Classification 2.2.4 Psychological factors and consumers today

3.1.1 Green Marketing / Sustainable Marketing 3.1.2 Marketing and Sustainability 3.1.3 From Societal to Green 3.1.4 Green Labelling and Phraseology 3.1.5 CSR and GRI

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1. ISSUE IDENTIFICATION

1.1 SUBJECT OVERVIEW Ever since terms such as global warming, ecological footprint and sustainability started circulating the western society, there has been an immense pressure on governments and businesses, as well as consumers, to be aware of the implications the current lifestyle can have on the environment. As consumers have increasingly expressed the importance of acting in an environmentally responsible way, businesses have acknowledged the environmental issues, looking to add green credentials into their brands through for example CSR, green marketing or environmental promises as well as products, production or distribution developments. The contemporary environmental movement, started building momentum already in the 1960’s after the Brundtland Report was presented to the public. During the 1970’s greener corporate images flooded the media. While the identities, branding and marketing of many businesses were painted green, less was actually done to prevent the devastation of the planet. The 1990’s saw an increase in companies and brands that incorporated terms such as environmentally-friendly, anti-global warming, eco-conscious or green etc. into their communication, in what seemed like a frenzied way of taking away the guilt of the western consumer and encourage them to keep buying. While some companies actually changed their products, productions or distribution routines to help save the earth others were suspected of using marketing jargon to manipulate the consumer into believing their products were greener than they actually were. This became known as greenwashing. Since the 1990’s there has been an increase in the recognition of false, misleading or unsubstantiated green marketing claims [greenwashing], which have lead to government bodies, such as the Advertising Standards Authority in the UK, to closely monitor any marketing claims regarding the environment or green credentials from brands or businesses. Today, green marketing efforts are matched by a nearly equal rise in claims of greenwashing by activists, bloggers and others. While the 1970’s greenwashing was often very misleading or even false, there is today a new wave of claims about greenwashing, which is more often related to public frustration that companies are not doing enough, and are communicating incorrectly. Companies like H&M, M&S, TopShop and Banana Republic entered the green marketplace, raising awareness - but also questions and sometimes controversy. Given the lack of definitions, just about anything can be claimed as green - or greenwash - creating further confusion around strategies of green marketing.

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1. ISSUE IDENTIFICATION

1. ISSUE IDENTIFICATION

When readers of Brandchannel.com were asked what brand they think of as truly green or going green, the top answer was: none at all. This is a further proof of the effects of greenwashing has had on the consumers’ attitudes towards green claims. Consumers have become ambivalent towards green shopping: they claim they want to shop green, but also state that they do not trust green information. Surveys show that the number of people concerned about climate change continues to grow, and that consumers believe that businesses should bear the heaviest load in addressing it, but they are not convinced that the business sector is doing as much as it should.

1.3 OBJECTIVE Aim: To find marketing, branding or communication solutions suitable for less-green brands who are looking to communicate their concern about the environment and attract the growing ecoconscious consumer group, without running the risk of being accused of greenwash. The purpose of this report is to gain insight into the dilemma less-green brands are facing when it comes to the possibilities of communicating their concern about the environment to the growing eco-conscious consumer group and to find and evaluate possible strategic solutions available to them.

The fashion industry is affected by the complicated situation of creating trustworthy green marketing. In an interview with Vert Brands (Vert, 2008) Erin Barajas, manufacturing Editor at California Apparel news, stated: “ In fashion “green” can mean just about anything. There is no official standard by which being “green” is judged. So, it can mean a T-shirt was made using organic cotton, but then later washed in a harsh chemical to make it super soft. Sometimes manufacturers tag garments as “green” if they used a low-energy or eco-conscious process to wash or produce them. “Green” is sometimes also used to describe garments that benefit the environment through their sale – if a certain portion of their proceeds are donated to environmental charities, for example. “Green” can also mean a garment is made from sustainable materials. It’s a very broad term and there is a movement in the apparel industry to clearly define what qualifies as green.”

The aim is reached by achieving the following objectives: 1. Define, synthesise and examine the conditions under which less-green brands can appeal to the eco-conscious consumer. 2. Define, synthesise and examine how brands can incorporate the eco trend into their businesses. 3. Define, synthesise and examine the specific conditions regarding the eco trend and the fashion industry. 4. Define, synthesise and analyse the current state of green marketing and the potential successful strategies. 5. Define, synthesise and analyse the definitions of greenwashing and examine relevant examples. 6. Define hypotheses by evaluating potential successful strategies based on an analysis of the secondary research in the areas of the eco trend, green marketing and greenwash. 7. Further evaluate and test potential successful strategies through primary research (qualitative: focus group). 8. Assess whether the selected marketing, branding or communication solutions can appeal to the eco-conscious consumer group without running the risk of being accused of greenwash.

1.2 RATIONALE Research has shown that while consumers are adding more value to green products (Mintel, 2009), their purchase behaviour shows that money and time are still the key issues (Nottage, 2008). Brands need to demonstrate to the consumer that they care about the environment, but many consumers are still not willing to pay more for green. So, while marketing, branding and communication solutions have been the obvious choice in the past for less-green brands to attract the growing ecoconscious consumer group, today’s brands are running a great risk of being accused of and revealed as greenwashers. Now, less-green brands need to find new and more efficient solutions to incorporate the green issue in to the brand communication, without running the risk of being accused of greenwashing. This complex situation of green marketing and greenwashing, as well as current consumer perceptions with regards to credibility of green claims from brands, and the high expectations with regards to environmental business performances, is what prompted significant interest in the author to conduct research in this situation.

1.4 METHODOLOGY 1.4.1 INTRODUCTION In order to approach the above mentioned research objectives, this report took into account both quantitative and qualitative research methods. The research is a combination of inductive as well as deductive research: inductive since theories and hypotheses regarding possible marketing solutions are generated through secondary research, and deductive because the theories and hypotheses are tested through primary research. This research report followed the following structure: 1. Field establishment through collection and definition of secondary research (Chapter 2, 3 and 4). 2. Cross sectional theoretical analysis and case study examination (Chapter 5.1 - 5.5). 3. Establishing of hypotheses (Chapter 5.6). 4. Hypotheses testing in qualitative primary research (Chapter 6.1 - 6.3). 5. Implications on specific knowledge area based on primary as well as secondary research (Chapter 6.4).

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6. Broader implications in form of marketing strategies (Chapter 7.1). 7. Recommended strategies and concept development (Chapter 7.2 + supplement).

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1. ISSUE IDENTIFICATION



1.4.4 FUTURE RESEARCH RECOMMENDATIONS

1.4.2 SECONDARY RESEARCH This research report aimed at finding advanced and specific solutions to green marketing includes both empirical research and review of existing research in order to elaborate the theoretical position, building hypotheses for future empirical studies. The secondary research consists of both qualitative as well as quantitative information, gathered specifically for this research. Qualitative secondary information comes from a variety of sources such as journals, online journals, newspaper and magazine articles, literature and reference books as well as websites and blogs from relevant sources. Quantitative secondary research is taken from research reports and research agency databases such as Mintel. Based on both the qualitative and quantitative information gathered, four anecdotal case studies were analysed in order for further field establishment and conduct hypotheses for primary research.

In order to further establish the credibility and success rate of the solutions to the research problem of less-green brands communicating green, a further empirical study in form of conceptually based pilot campaigns can be recommended.

1.5 FRAMEWORK & IMPORTANT NOTICES 1.4.3 PRIMARY RESEARCH The primary research is mainly qualitative, in the form of a focus group discussion, with the group sampling based on a survey. The methodology choice of a focus group discussion was based on the fact that is a widely used methodology in market research, in particularly for testing reactions to new products, solutions, advertising or marketing campaigns. Focus groups are designed to gather information from the lay people and the goal is to investigate concerns, experiences or attitudes and beliefs related to a clearly defined topic (Kitzinger and Barbour, 1999). As an approach it tends to be used in combination with other research techniques, and that is why this research contains both theoretical research and field research as well as a short survey (Fern, 2001). By creating a discussion and providing a stimulating environment for free expression, the goal of the focus group discussion was that it would bring out answers as to why the campaigns were appealing (if so). It would allow the participants to explain their reactions to the campaigns, something a survey is less likely to answer.

1.5.1 SUPPLEMENTS This research report is submitted as partial fulfilment of the requirements of the graduation project for final year students at the Amsterdam Fashion Institute, part of Hogeschool van Amsterdam, Amsterdam, The Netherlands. The conclusion of this report and the recommended marketing strategies presented in chapter 7 are further translated into conceptually based solutions, aimed at providing the marketers, students or brand strategists with a selection of solutions of how to incorporate the environmental movement into their brand marketing strategies. These solutions are presented in the commercial brochure ‘A Touch of Green’, supplement to this report. 1.5.2 TARGET INDUSTRY This research report is targeted to the fashion industry, consisting of fashion related case studies as well as specific consumer behaviour theories relevant to the fashion consumer. Some of the secondary research can be related to other industries, in specific lifestyle oriented B2C brands, making parts of the report relevant to other industries. However, it is not recommended that the conclusions and recommendations are directly translated into another industry, since they are partly based on fashion related specifics.

It is believed that what distinguishes the focus group technique from the wider range of group interviews is the explicit use of the group interaction to produce insights that would be less accessible without the interaction found in a group (Morgan 1988:12). According to Morgan (1988), “focus groups are useful when it comes to investigating what participants think. However, they excel at uncovering why participants think as they do” (Morgan 1988:25). Focus groups can achieve this because participants not only articulate their views about a particular topic, but also explain to the group members the reason why they hold these views. Such participation occurs as participants question each other, or even challenge views that might differ from their own, exposing the reasoning behind their views. Most focus group research relies on purposive sampling (Miles and Huberman, 1994), with researchers selecting participants based on the project and the potential contributions of participants. The focus group for this research was a group of seven homogeneous participants (Lindlof, 1995) in terms of purchase behaviour and general attitude towards green products. All participants are a part of the 68 percent of British inhabitants who buy green products sometimes, and consider themselves Price Sensitive Green Consumers. Participants from these two consumer groups were chosen based on results from the secondary quantitative and qualitative research, since this group is likely to represent a larger proportion of the consumers. When the secondary information was established in such a way to give insight into interesting homogenous participant groups, a survey was sent out to potential participants. Out of the respondents, seven were chosen based on their homogenous opinions in regards to green purchase behaviour and opinions regarding corporate environmental behaviours.

1.5.3 ALTERNATIVE PURPOSE While the initial research was to find solutions to less-green brands looking to incorporate the eco trend into their business, the actual solution can be suitable for green brands looking to find new ways to communicate their environmental responsibility while avoiding the potential pitfalls of traditional green marketing.

1.5.4 KEY-WORDS & GLOSSARY

A more extensive glossary can be found on page 45. Green - Refers to anything having environmental benefits, values, attributes or associations. Less Green brand - Refers to a brand which of the majority of the products, services or business practices are not environmentally-friendly or sustainable. The eco trend - A phrase encompassing the increase in environmental awareness and concern for green products, services, business practices, lifestyle choices and consumer purchase behaviour.

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1.5.5 SUBJECT SENSITIVITY While environmentally responsible and friendly products, production processes or distribution routines are of out-most importance in regards to sustainability and for future generations, this report is in greater part focusing on branding, marketing and communication solutions. With respect to the importance of other green aspects of businesses this report is written to acknowledge the part of the market that have not in larger scale changed their products, production processes or distribution routines to sustainable alternatives.

2. THE ECO TREND

This research decision does not in any part reflect the sustainable goals of the AMFI, or the professional and personal opinion of others associated with this report.

1.6 REPORT STRUCTURE (following introduction) 2.1 DEFINITION AND PURPOSE

Chapter 2 presents secondary research of the eco trend. It is divided into four main themes: (1.) The definition of the trend. (2.) Implications of the trend on the consumer, including consumer behaviour theories, existing green consumption data and values and attitudes associated with the trend. (3.) Implications of the trend on businesses and levels of incorporation strategies. (4.) Specific implication of the trend on the fashion industry presenting specific fashion consumer behaviour theories relevant to the trend. Each of the themes defines background for primary research.

The eco trend refers to growing demand of green products and/or services, the growing market for such products and/or services or the growing interest in such products, services, practices and/ or interventions in businesses and governments (Beard, 2008; Coberly, 2008; Harris, 2007; Peattie and Crane, 2005; Sherwin and Staafgard, 2008; WWF, 2008). Another popular term for this trend is sustainability. McCann-Erickson (2007, p. 6.) states

Chapter 3 defines, outlines and synthesises secondary research of green marketing. It is divided into two main themes: (1.) The definitions, purpose and components of green marketing. (2.) Current research into positioning strategies of green marketing. Each of the themes defines background for primary research.

“Sustainability is a collective term for everything to do with responsibility for the world in which we live. It is an economic, social and environmental issue. It is about consuming differently and consuming efficiently. It also means sharing between the rich and the poor and protecting the global environment while not jeopardizing the needs of future generations”.

Chapter 4 defined, outlines, analyse and synthesises secondary research of greenwashing. It is divided into two main themes: (1.) The definition and purpose of greenwashing. (2.) The current state of greenwashing claims followed by summary of Do Not’s for green marketing and a visual analysis. Each of the themes defines background for primary research.

The demand for sustainable, green or ecological products, services, practices or interventions reflects the growing environmental concern which can be defined as “…to the degree which people are aware of problems regarding the environment and support efforts to solve them and/or indicate a willingness to contribute personally to their solution.” (Dunlap and Jones, 2002, p. 485.).

Chapter 5 summarises and implements the secondary research, in form of four case study analyses, resulting in eight hypotheses. It is divided into six themes: (1.) Introduces the cross sectional selection methods. (2.) The case study of Adidas Guerilla Gardening. (3.) The case study of DKNY city bikes. (4.) The case study of Target & TerraCycle. (5.) The case study of Nike. (6.) Presentation of hypotheses.

The environmental concern has developed through the knowledge of the implications and effects our consumption and current level of exploitation of the planet’s finite resources has on the environment (Harris, 2007). There is also research supporting that our basic human desire to “feel at one with the nature” is a driving force behind this trend (Kals et al., 1999). In a more recent study, Hartmann and Apaolaza (2006) explains that “In societies in which nature experiences are becoming scarce while life becomes increasingly “virtual”… the consumption of green products may serve as a substitute for real contact with nature.”

Chapter 6 presents the primary research and the implementation strategy of the primary research. It is divided into four themes. (1.) Summary of short survey findings. (2.) Presentation of focus group structure. (3.) Presentation of focus group findings from each four brands. (4.) Discussion and conclusion of hypotheses based on focus group findings. Chapter 7 ties together what has been learned from secondary research and primary research. It is divided into two main themes: (1.) The general conclusion and implications of possible successful marketing strategies suitable for less-green brand. (2.) Three recommended green marketing strategies based on the conclusion.

The eco trend can be defined as a wide term incorporating everything from the growing market of ecological or green products, to change in consummation and consumer behaviour and current economic, social and environmental issues.

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2. THE ECO TREND (1) Functional performance The benefits can be related to the good performance of the product as regard to environmental care, referring to safety motivation (Maslow, 1970) and aimed at avoiding or eliminating the problem (Fennell, 1978; Rossiter and Percy, 1987). Good performance is classified as functional benefits, which is influenced by cognitive factors. The consumers purchase decision is based on their cognitive thinking of the functional benefits of green products, based on for example product label information and previous environmental knowledge. The consumer believes that the benefit of purchasing the green product or service, will help eliminating today’s environmental problem and by doing so, they are satisfying their psychological need for safety (Maslow, 1970).

2.2 CONSUMER IMPLICATIONS Studies show that an increasing number of consumers are actively searching for, or are increasingly attracted to, environmentally friendly merchandise (Coberly, 2008; Kaufman, 1999; La Ferla, 2001; Montoro et al, 2006; Wustenhagen and Bilharz, 2006). This is consistent with the growing awareness over the last thirty years of the impact consumption has on global warming and the currently unsustainable level of exploitation of the earth’s finite resources (Beard, 2008; Harris, 2007).

2.2.1 CONCERN AND BEHAVIOUR A 2007 Mintel report on green consumptions shows that 12 percent of the consumers buy green products regularly, 20 percent never and 68 percent, sometimes. Grant (2008) did interesting research into green lifestyle choices which showed that 8-10 percent are open to dark green lifestyle, e.g. composting and micro-generation, 20-40 DARK GREEN LIFESTYLE percent are open to light green changes, e.g. a LIGHT GREEN CHANGE smaller car, fewer flights, while 60-80% are open to no-brainers, such as turning down thermostats to save energy and at the same time lowering the heating bills. However, research also shows that individuals expressing high environmental concern will not necessarily act in an environmentally responsible manner in their daily life (Bech-Larsen, 1996; Cope and Winward, 1991; Dunlap and Van Liere, 1987; Eagly and Kulesa, 1997; Finger, 1994; Hartmann and Apaolaza, 2006; Hines et al., 1987; Gordon, 2002; Kalafatis et al., 1999; Kinnear et al., 1974; Maloney and Ward, 1973; Mintel, 1995; Schlegelmilch et al., NO- BRAINERS 1996; Smith et al., 1994; Stone et al., 1995; Swenson and Wells, 1997).

(2) Experiential benefits Environmental benefit attributes could be relayed to the feelings and emotions the consumer experiences when he/she uses the brand. This is called experiential benefits and it is believed that the consumer’s satisfaction increases since the consumer believes that by purchasing the brand, he or she is contributing to social welfare. Their purchase decision is not based on functional benefits nor cognitive thinking, but on the emotional satisfaction of knowing that they are doing ‘a good deed’; and the experience followed by this fact, is the important factor. (3) Symbolic benefits Finally brand’s environmental benefits could be related to the needs of social approval or external personal expression (symbolic benefit); for example, buying green products might be considered socially acceptable in certain groups of consumers, while in other social or demographical groups, purchasing green products might not be as important (Montoro et al. 2006). The consumer will purchase green products to fulfil the need of social approval and the intrinsic reward of the purchase is that of external acceptance. 2.2.3 GREEN CONSUMER CLASSIFICATION Much research has also been done to define and classify the consumers into segments based on actual purchase behaviour. D’Souza (2004) classified the consumers into four segments:

Hartmann and Apaolaza (2006) explain that there is a gap between environmental concern and actual purchase behaviour. It is believed that the consumer will only act in an environmentally sound manner if the result from those acts are likely to deliver sufficient benefits to make up for the higher prices of green products, or the inconveniences involved. Mintel (2007) and Grant (2008) show that there is a difference between green consumption and green lifestyle choices. Hartmann and Apaolaza’s (2006) research show that consumers are more likely to feel an intrinsic motivation to change their lifestyle, for example turning down the thermostats to save energy which also provides the consumer with a cost benefit through lower heating bills, while consumers are less likely to feel that purchasing green products will benefit them in either cost or product motivation.

(1.) The Environmentally Green Consumers Are highly environmentally concerned and are characterised as buying green products whenever they see an opportunity to do so (D’Souza, 2004). This consumer group is suggested to be motivated to buy green products even if they were somewhat lower in quality and higher in price in comparison to alternative products. They are also known as “ultra-greens” who are the driving force of environmentalism (Volsky et al, 1999). It has been suggested that the more involved consumers become with the environment, the more likely they would purchase green products (Schuhwerk and Lefkokk-Haglus, 1995). This consumer group is likely to attach functional benefits to their purchase. They are environmentally concerned and will purchase green products with the motivation to eliminate the environmental problem.

2.2.2GREEN CONSUMER BEHAVIOUR THEORIES The eco trend is likely to be influencing today’s consumers, but in different degrees and based on various factors. Green purchase behaviour is thought to be influenced by functional or emotional benefits attributed to either the product or the brand involved with the purchase. One of the most recognised theories of environmental purchase benefits and green consumer behaviour is by Park et al. (1986) who found three levels where the environmental benefit attributes to brands and products could operate.

(2.) The Emerging Green Consumer Take the benefits of green products in regard, but may not have any motivation to purchase them. The purchase behaviour of this consumer group should not be categorised based on environmental concern or motivation. The Emerging Green Consumer is most likely to attach emotional benefits to their green purchases, however there is lack of research of their exact motivations behind the purchases.

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(3.) The Price Sensitive Consumers Are aware of the risk that some products pose to the environment, but they are inherently price sensitive in their purchase behaviour. The tend not to be willing to pay more for environmentallyfriendly products (D’Souza, 2004) and a study of green purchase behaviour by D’Souza et al. (2006) showed that 58,7 percent of consumers indicate that they perceive the environmentally safe products to be more expensive than alternative products. It is also suggested that the consumers does not believe that green products or services ensure higher quality (D’Souza, 2004). This consumer group can be motivated by both emotional and functional benefits of the product. However, it is vital that the product is not higher in price and that the benefits of the product make up for any perceived lack of quality.

2.3 BUSINESS IMPLICATIONS A growing number of companies are looking to recognise the role of sustainability as an integral component of their business strategy (Jones et al., 2008) as it has been proven to be a vital part of business strategies, functions and communication today (D’Souza et al., 2006; Ottoman, 1993; Wossen Kassaye, 2001). Terms such as ‘Sustainable Business’, ‘Corporate Social Responsibility’ and ‘Green Business’ are now widely understood as describing the integration of social, environmental and economic consideration into the decision-making structures and processes of businesses (WWF, 2008). Sustainable business programmes, commitments and initiatives are launched almost daily and most brands and businesses want to associate themselves with green issues in a positive light (Sherwin and Staafgard, 2008).

(4.) The Conventional Consumers Are non-green consumers and do not have any regard for environmentally friendly products. They do not see environmental risk associated with products they buy and tend to largely ignore the potential benefits of green products (D’Souza, 2004). This consumer group does not see any functional benefits of green purchases as important, however it is not to say that these consumers will never buy green products.

2.3.1 LEVEL OF GREEN INCORPORATION Brands and companies can incorporate sustainability or the green issue on several levels. (1.) Product Level: Changes in products, processes, manufacturing and logistic. The product level is considered the most important level considering the obvious functional benefits for the environment. However, this is also considered the most difficult level for implementation. E.g. Green & Black’s is a good example of product level green brand. The brand uses organic ingredients that are ethically sourced and they were one of the first UK brands to receive the Fair-trade mark. Green & Black’s are currently owned by Cadbury’s; however, by firmly stating on their website that they are independently operated they have avoided receiving any bad publicity regarding any association with non-green brands owned by Cadbury’s.

2.2.4 PSYCHOLOGICAL FACTORS AND CONSUMERS TODAY Based on research of green purchase behaviour and consumer behaviour we can assume that this trend is affecting the consumer’s attitudes more easily than their actual purchase behaviour. Research has also shown that the perceived benefits of purchasing green products are most likely emotional, not functional. This means that the individuals benefits of purchasing green products are not directly related to an observable improvement of environmental quality but rather emotional benefits based on psychological factors (Coddington, 1993; Davis, 1993; Smith et al., 1994; Finger, 1994; Hartmann and Apaolaza, 2006). Many studies of green consumer behaviour have also identified a significant relationship between altruistic values and environmental behaviour (Dietz et al., 2002; Nordlund and Garvill, 2002, 2003; Stern et al., 1999).

(2.) Internal & External Initiatives or Programmes Level: Already established brands and companies are often incorporating sustainability in external or internal collaborations, sponsorship initiatives or programmes, such as Corporate Social Responsibility programmes. While the purpose of these types of initiatives should be that of functional environmental benefits many brands and companies establish them to attract consumers through emotional benefits attributed to the initiatives. E.g. Marks & Spencer’s sustainable agenda goes under the name Plan A, There is no Plan B. Plan A is a five-years, 100-point plan to tackle environmental issues. They have five focus areas; climate change, raw materials, waste, healthy eating and fair partner and it includes for example M&S and Oxfam Clothes Exchange recycling programme.

While Park et al’s. (1986) three levels of benefits is still relevant today, it is important to recognise that since 1986, the eco trend has taken a firmer ground in society and is considered more mainstream. Therefore, consumers are more likely than ever to attach especially symbolic benefits to their green purchases. D’Souza’s (2004) classification of consumers is definitely relevant to understand green purchase behaviour. However, it is important to recognise the fact that a green product may have other benefits then those associated with the environment. Brands such as Innocent (juice and smoothies) and Green & Black are considered green, but consumers also attach other benefits such as ‘healthy’, ‘luxurious’ or ‘great quality’ to these brands. The research mentioned on green purchase behaviour by D’Souza (2006) or Park et al. (1986) does not include other factors such as brand value or brand association, especially relevant to B2C and retail brands today.

(3.) Communication Level: Changes in communication, branding or marketing. The communication level is considered the easiest level for change, but because of false promotional sustainable claims, brands and companies should be aware of the regulations involved. The goal of the communication level is to attribute emotional benefits to purchase of the brand or product, and is lacking measurable functional benefits. E.g. One of the most discussed communication level green strategies is that of BP, former British Petroleum, who re-branded to Beyond Petroleum. BP’s old logo was replaced with a green, yellow and white sunburst corporate logo named after the Helios mark after the sun god of ancient Greece. The new logo was created to show a commitment to the environment and to solar power. However, the bottom line of BP is still all about increasing sales, increasing margins and reducing costs and the fact that a company such as BP can re-brand it self as a sustainable or green company is up for discussion.

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2.3.2 BENEFITS AND IMPLICATIONS Research shows that greening a business can improve financial performance (Johnson, 2003; Miles and Covin, 2000), help build a connection with consumers (Porter and Kramer, 2002), improve product quality (Montillaud-Joyel and Otto, 2004), increase employee commitment and reduce employee turnover (Dawkins and Lewis, 2003; Maio, 2003), while even helping in improving society overall (Sirgy, 2002). The need to comply with a growing volume of environmental and social legislation and regulations; concern about the cost and scarcity of natural resources; greater public and shareholder awareness of the importance of socially responsible financial investments; the growing media coverage of the activities of a wide range of anti-corporate pressure groups; and more general changes in social attitudes and values within modern capitalist societies, are some of the factors that are suspected to be the force behind the managerial implications, and functional changes of businesses, and communications (Jones et al., 2008).

2.4 FASHION IMPLICATIONS In 2005 £29 million was spent by British consumers on fair trade, organic clothing or recycled clothing, with a rise of 79 percent in 2006, to £52 million (Co-operative Bank, 2007). The Soil Association also estimated that the market for organic cotton products would more than double from £45 million in 2006, to £ 105 million in 2008 (Co-operative Bank, 2007; Beard, 2008). Recent consumer research shows that there is an unprecedented surge in concern with how the manufacturing process of clothes affects the environment (Lee and Sevier, 2008). We can therefore conclude that an effect of the eco trend is noticeable in the fashion industry (Thomas, 2008; Lee and Sevier, 2008; Menkes, 2006; Hustvedt and Dickson, 2009). 2.4.1 ORGANIC MATERIAL While much of the purchase behaviour theories and consumer behaviour theories mentioned in chapter 2.2 The Eco Trend and Consumer Implications can be applied to the fashion consumer, there are also other relevant research specifically designed for the fashion industry worth mentioning. Meyer (2001) showed that the fashion-oriented consumers are becoming more inclined to purchase materials that are kind to the skin and this is suggested to be another factor behind the growth of this particular green market segment (Balderjahn, 1988; Laroche et al., 2001; Meyer, 2001; Myburgh-Louw and O’Shaughnessy, 1994; Phau and Ong, 2007). Meyer’s (2001) theory was supported by Husvedt and Dickson (2009) psychographics profiling of the market segment that use organic content in their purchasing decision which revealed that consumers found it important that organic cotton was “improving my health or the health of my family” (Hustvedt and Dickson, 2009). Whether this is a result from functional or emotional attributed to organic clothing is a question open for discussion.

2.3.3 CONSUMERISM, SUSTAINABILITY AND BUSINESS However, green issues and businesses can also work against each other. One demands less consumption, the other more. In other words, one rejects consumerism, while the other is the driving force of consumerism. Sustainability and businesses can definitely be a paradoxical subject. The positioning of business in the green movement can also be complex. As mentioned in chapter 2.2 The Eco Trend: Consumer Implications, it cannot be assumed that environmental awareness or concern will lead to green purchase behaviour. Businesses have a need to comply with this trend. However, they still need to provide the consumer with sufficient product benefits and motivations for purchase. Wossen Kassaye (2001) researched the “Green Dilemma” and he detected more problems of greening businesses. According to his research, government regulations accounted for 25 percent of the problem, barriers related to type of product constituted 13 percent, infrastructure another 17 percent while 42 percent represented other difficulties. It is also suggested that consumers are feeling increasingly personally insignificant to the effect consumption has on the environment and are only sporadically taking action to support or show their concern. Research suggests that the green market and sustainability is not completely driven by consumer need, or at least purchase behaviour, but businesses are taking a leadership role in this market development (Sherwin and Staafgard, 2008; Coberly, 2008; Jones et al., 2008). This means consumers feel that businesses have responsibility to meet the social and environmental challenges through innovative products and business practices (WWF, 2008) and consumers will do their part through consumption. It is important to know that while consumer environmental awareness (or concern) is significant and rising in many cases, it may not be the key driver going forward for this trend.

2.4.2 THE GREEN IMAGE AND SELF-IDENTITY Beard (2008) suggests that eco fashion has emerged as another way for fashion brands to stand out, however, Emberley (1998) makes it clear that the green market place can be as demanding as any other commodity system of exchange and requires high investments in media and advertising, along with the production of ecologically correct consumables. It is also suggested that today there is a market of “green consumers” who are buying the “green image” in their consumption practices (Connolly and Prothero, 2003) and that there is a desire by the consumer to be viewed as responsible in their fashion purchases (Arnold, 2001; Maynard, 2004; Beard, 2008). Lipovetsky (1994) explains that as an industry, fashion exists as a system for social regulations and social pressure, which means that where one firm or consumer takes the lead, many others will follow. Based on Park et al’s. (1986) symbolic benefit of green purchase behaviour and Lipovetsky’s theory of fashion as a system for social regulations and social pressure we can assume that the eco trend will take a significantly important role in the fashion industry, and that the green fashion purchase behaviour will mainly be influenced by emotional benefits attached to the product or brand. Consumer self-identity is another psychographics variable that has been related to both socially responsible and organic consumers. Self-identity can be defined as the “relatively enduring characteristics that people ascribe to themselves”, and is often synonymous with self-perception and selfconcept (Sparks and Guthrie, 1998, p. 1396). In the case of consumers of organic cotton apparel, it might be possible that a self-identification as a green consumer or an organic consumer would have some impact on their behaviour in addition to their attitudes towards the products, beliefs about the environment, or their feelings of moral obligation to buy organic products (Hustvedt and

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2. THE ECO TREND Dickson, 2009). However, other research states that the fashion industry is being slow to recognise their responsibilities and opportunities in environmentalism (WWF, 2008; Thomas, 2008). It is believed that this could be a counter-effect on another trend: fast fashion.

3. GREEN MARKETING

2.4.3 FAST-FASHION AND SUSTAINABILITY Today consumers are increasingly used to, and comfortable with, the availability of trend-led fashionable clothing that is extremely cheap and encourages more consumption (Beard, 2008). The fast fashion concept makes it very difficult to be green since the business model compels customers to frequently throw out what they own, hence consume more often (Thomas, 2008). Furthermore, Birtwistle et al. (2003) explains that companies in the fashion industry are increasingly using time as a factor for enhancing competitiveness. Development cycles are becoming shorter and transportation and delivery more efficient, which once again lead to more consumption. The eco trend and the fast fashion trend, two of the most vital trends in fashion today, prove that there is a polarisation in purchasing behaviour and attitudes among the consumers.

3.1 DEFINITION, PURPOSE AND COMPONENTS Researchers have drawn the conclusion that corporation and businesses should integrate environmental concerns when developing marketing policies and practices (Shrivastava, 1995; Lecomber, 1975, D’Souza et al., 2006). ITSMA (2006) believe that the eco trend and sustainability is one of the key trends shaping marketing today and Schaefer (2005) and Jones et al. (2008) states that ecological and sustainable developments is one of the most significant and most difficult problems currently facing marketing. Hanas (2007) goes further and explains that while there is a defined need for sustainable business practices in the supply chain and in a company’s operations, there is also an increasingly important need for sustainable branding and green value proposition in branding, marketing and advertising communications. 3.1.1 GREEN MARKETING / SUSTAINABLE MARKETING Green marketing is defined as the marketing practice of promoting green or environmentally beneficial products or services (Charter et al., 2006). It can also be defined as a marketing practice that takes into account consumer concern about the environment (Dictionary of Marketing Terms, 2009). Green marketing is often confused with sustainable marketing, which is more often defined as “creating, producing and delivering sustainable solutions with higher net sustainable…”(Charter et al., 2006, p. 6.). Based on these terms, the conclusion that can be drawn is that green marketing is a wider term of the actual business practice of marketing green products or the marketing practice of adding focus to the environment, while sustainable marketing is defined as an actual (functional) sustainable solution to marketing. 3.1.2 MARKETING AND SUSTAINABILITY As mentioned in chapter 2.3 The Eco Trend and Business Implications there is a paradox of consumerism and sustainability, and the same counts for marketing and sustainability. However, as the goal of sustainability is better or less consumption, the objective of green marketing could be to close the gap between environmental concern and actual purchase behaviour (Hartmann and Apaolaza, 2006), demonstrate the environmental beneficial values of the purchase, or show

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leadership in the eco trend development (Sherwin and Staafgard, 2008; Coberly, 2008; Jones et al., 2008). Another complication factor in the green marketing debate is that there is an assumption that socially desirable pro-environmental behaviours will lead to a sustainable environment (McKenzieMohr, 2000; Garling et al., 2003; Brennan and Binney, 2008). However, this theory needs to be translated into actual purchase behaviour and so far research does not support this.

Industry (Jones et al., 2005, p. 883.) argued that “CSR is highly subjective and therefore does not allow for a universally applicable definition”. According to Wood (1991. p. 712.) “the basic idea of CSR is that business and society are interwoven rather than distinct entities.” More generally a distinction has been drawn between CSR seen as philanthropy as opposed to CSR as core business. In the former, companies conduct their business unfettered by wider social concerns and then make charitable donations to selected worthy causes. In the latter, the accent is upon operating the core business in a socially responsible way, which seeks to enhance the competitiveness of the business and maximise the value of wealth creation to society. (Jones at al., 2005)

3.1.3 FROM SOCIETAL TO GREEN Green marketing can be tracked back to the 1970’s when Kotler and Zaltman (1971) put forward the idea of societal marketing, which encompassed the idea of the environment. It was not until the late 1980’s that idea of green marketing, as seen today, emerged. Early academic treatments of green marketing spoke of the rapid increase in green consumerism at this time as indication a dramatic and inevitable shift in consumption towards greener products (Prothero, 1990; Vandermerwe and Oliff, 1990). Like any (relatively) new marketing phenomena, it was soon the subject of a great deal of market research. Much survey evidence from reputable research bodies was cited as identifying heightened environmental awareness, a growing consumer interest in green products, and a pronounced willingness to pay for green features (Roper Organization, 1990; Mintel, 1991; Worcester, 1993).

It is believed that by integrating CSR into businesses, it will prove long-term growth and financial security for stake-holders, while maintaining or enhancing a business market position. Similarly at the operational level, business imperatives seem to be the drivers of CSR. Thus, while many of the environmental initiatives addressed in the CSR reports are designed to reduce energy use and waste generation, for example, they also reduce costs. (Jones at al., 2005) Since CSR has been defined as being vague and intangible, GRI is becoming more significant especially in corporate reports. GRI, short for Global Reporting Initiative, has as a mission to make sustainability reporting routine for all businesses and most importantly, as comparable as financial reporting. The GRI was formed by US based non profit organisation Ceres (former known as the Coalition for Environmentally Responsible Economies) and the Tellus Institute. Although the GRI is an independent organisation, it is a collaborating centre of UNEP and works in co-operation with the United Nations Global Compact. By incorporating GRI businesses are able to put focus on and (measurably) report the actions that are being done to solve the environmental problem.

3.1.4 GREEN LABELLING AND PHRASEOLOGY There are a number of ways by which marketers convey environmental benefits of products, one is through general or specific product claims on product labels, for example, “eco-friendly”, “environmentally safe”, “recyclable”, “biodegradable” and “ozone-friendly” (Morris et al., 1995). In the marketplace, some producers have developed a number of strategies to address these concerns, and to take advantage of them by publicising the “clean green”, “eco”, “organic”, or “natural” status of their products. (Harris: 2007) Marketing approaches vary from the promotion of independently certified products through to superficial green labelling of products using green colour schemes and green imaging, such as the use of the Dolphin, Earth, or Tree logos. (Harris: 2007)

3.2 IN-DEPTH STRATEGIES

Arguably, the initial perception that one forms about a product is, in part, by exposure to information initiated by the marketer including media advertising and/or the information provided on product labels. There are studies that indicate an increased demand for, and awareness of, information regarding environmental product attributes on product labels (D’Souza., 2000, 2004; D’Souza et al., 2006; Grankvist et al., 2004; Morris et al., 1995). Environmental labels act as a guide for consumers to choose products that are environmentally friendly. It is often used by businesses to differentiate their products, position them and communicate the environmentally friendly message (D’Souza, 2000). The general consensus is that consumers’ comprehension of labelling is determined by three factors (D’Souza et al.: 2006): (1) The accurate and clear meaning of the labels; (2) The knowledge of the certifications; and (3) The perception of businesses with respect to the environment. 3.1.5 CSR AND GRI Another important part of marketing businesses green image is Corporate Social Responsibility (programmes). CSR is ultimately rooted in the recognition that businesses are part of society and that as such, they have the potential to make a positive contribution to social goals and aspirations. (Jones et al.,2005) That said, there seems to be no universally agreed definition of CSR, and Frankental (2001. p. 21.) argued that “CSR is a vague and intangible term which can mean anything to anybody, and therefore is effectively without meaning.” Also, the UK’s Confederation of British

Green marketing has proven to be an important accelerator toward environmental sustainability. At the same time, the arguments about changing behaviour and exploiting the creative and innovative power of marketing are generally understood as complex and at some times paradox. The Ethical Corporation (2003), for example, in answering the question “Would marketing sustainability mean less growth?” argues that it means “better, smarter and much more efficient ways” of production and consumption. However, more radical commentators would emphasise the stark reality that the present patterns of production and consumption are simply unsustainable. While some would say that marketing and sustainability will never go hand-in-hand, others say that marketing could conceivably play a major part in... “…moving towards a much more self sufficient and truly sustainable society but as such it would contain the seeds of its own destruction and those of the current business model that is at the heart of contemporary capitalist society.” (Jones et al, 2008, p. 128.) 3.2.1 FUNCTIONAL VERSUS EMOTIONAL STRATEGY It has been assumed that the growing environmental consciousness among consumers would lead to positive attitude effects on brands that are perceived as environmentally sound (Bech- Larsen, 1996; Eagly and Kulesa, 1997; Swenson and Wells, 1997). Nevertheless, some studies have shown

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3. GREEN MARKETING

that in certain situations consumers’ attitudes can be less positive towards green brands, as a consequence of a perceived trade off between functional performance of the brand, its environmental impact and the emotional values attributed to the brand from green marketing (Coddington, 1993; Schlegelmilch et al., 1996; Hartmann and Apaolaza, 2006). This is the start of the discussion between emotional or functional green positioning strategies.

satisfaction by exhibiting their environmental consciousness to others, also called the “green image”. The “green image” is further relevant to the fashion industry through Lipovetsky’s (1994) theory of the fashion industry as a system for social regulations and social pressure. (3) ‘Feeling one with nature’ Nature-related benefits stemming from sensations and feelings normally experienced through contact with nature. These are the result of a sensation of “feeling one with nature” (Kals et al., 1999). Most people experience feelings of well being or even happiness when they are in contact with natural environments. (Hartmann and Apaolaza, 2006). This benefit is further relevant to the fashion industry, supported by Hustvedt and Dickson’s (2008) and Meyer’s (2001) theories of organic cotton and the skin.

3.2.2 FUNCTIONAL POSITIONING STRATEGY A green positioning strategy based on functional brand attributes aims to build brand association by delivering information on environmentally sound product attributes. This positioning strategy should be based on relevant environmental advantages of the product compared to competing conventional products, and may refer to production processes, product use and/or product elimination (Peattie, 1995, Hartmann and Apaolaza, 2006). The functional green positioning strategy is further supported by older consumer behaviour theories such as Maslow’s (1970) safety motivation and Fennell’s (1978) and Rossiter and Percy’s (1987) theory about the functional benefit of green products as a solution of avoiding and eliminating a problem.

3.2.4 GREEN MARKETING STRATEGIES Based on research comparing the functional and emotional positioning strategies in the green market, it can be suggested that the emotional strategy has a stronger influence on green purchase behaviour, but functional and emotional strategies should be considered complementary rather than alternative. A well implemented green positioning strategy can lead to a more favourable perception of the brand, delivering emotional benefits through the brand and simultaneously making sure that the target groups perceive real environmental benefits through the functional strategy (Hartmann and Apaolaza, 2006; Phau and Ong, 2007; Bhat and Reddy, 1998). A combined functional and emotional green strategy would further support the objective of green marketing.

However, the success of a brand strategy which positions the product exclusively by its functional attributes may be limited by the fact that the reduction of a product’s environmental impact does not intrinsically deliver individual benefits to its buyer. Therefore, the perceived consumer benefit may be insufficient as a motivating factor for brand purchase. For most products, a consumer would experience functional benefits (i.e. improvement of environmental quality) only in case of generalised environmentally sound consumer behaviour, which contradicts the gap between environmental concern and actual purchase behaviour explained in chapter 2.2. Furthermore, functional positioning strategies can have some general disadvantages: they can often be easily imitated; they assume rational buyer decisions; they may reduce the flexibility of brand differentiation; and most importantly, consumers have been proven to be cynical and sceptical to functional information on green products (Aaker, 1996; Levy and Newell, 2000; Brennan and Binney, 2008; Peattie and Crane, 2005; Coberly, 2008).

Future green marketing should focus on strengthening the individual’s perception of the individual benefits to be gained from going green by adding more and stronger emotional values to green brands. Extending the previous noted proposition, that there is a human desire “to feel at one with nature” (Kals et al. 1999), it can be suggested that there is an instinctive motivation to spend time in natural environments and based on a positive emotional state while in pleasant natural surroundings, the emotional benefits to be gained could be associated with a brand through experiential marketing, advertising and branding.

3.2.3 EMOTIONAL POSITIONING STRATEGY A green positioning strategy based on emotional brand attributes aims to build brand association through emotional benefits and values. According to Hartmann and Apaolaza (2006) there are a lot of emotional benefits to be gained by brands and businesses through marketing and advertising, and consumers are suggested to mostly participate in environmentally conscious behaviour when they are reminded of the intrinsic rewards that environmentally conscious activities may bring (Phau and Ong, 2007; Carlson et al., 1993). Some of the different types of emotional brand benefits can be:

It is also believed that green marketing should create a sense that something can be done: encouraging action of the consumer (Helyer Donaldson, 2005; Sherwin and Staafgard, 2008). When consumers actively feel positive emotions in associations with a brand they are more likely to develop loyalty to it (Strategic Direction, 2008; McLuhan, 2008; Robertson and Wilson, 2008). Green marketing has also been shown to create competitive advantages for a company by building brand awareness (Barone et al., 2000; Creyer and Ross, 1997), establishing brand credibility (Brown and Dacin, 1997; Madrigal, 2000), enhancing corporate image (Morton, 1999; Madrigal, 2000; Ross and Patterson, 1992; Sen and Bhattacharya, 2001) and stimulating consumer’s purchase intention (Barone et al., 2000; Bennett and Gabriel, 2000; Roy and Graeff, 2003; Sen and Bhattacharya, 2001). Research by D’Souza et al. (2006) indicated that the overall corporate image with respect of doing a good job in helping to protect the environment was rather low (51,6 percent) and therefore, objectives of green marketing could be to enhance this aspect, and more strongly and specifically, address the issue of corporate image and promote the organisations cultural transformation to a more demonstrable environmentally supportive nature.

(1) Altruistic behaviour A feeling of well-being which is associated with acting in an altruistic way (Ritov and Kahnemann, 1997). Environmentally conscious consumers are experiencing personal satisfaction by contributing to the improvement of the “common good” environment (Dietz et al., 2002; Nordlund and Garvill, 2002; Stern et al., 1999). In regards to the fashion industry, the altruistic benefit can be further supported by Arnold (2001), Maynard (2004) and Beard’s (2008) research stating a close connection between environmental responsibility and fashion purchases.

3.2.5 GREEN MARKETING DILEMMA It is believed that the persuasion techniques aimed at greening consumer behaviour have so far had very limited results. General efforts to change social and cultural attitudes with respect to the

(2) The Green Image Auto-expression benefits through the socially visible consumption of green brands (Connolly and Prothero, 2003; Montoro et al., 2006). Environmentally conscious consumers experience personal

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3. GREEN MARKETING environment have probably not had the broader impact that proponents expected (Hartmann and Apaolaza, 2006). However, there have been claims that when corporations have shown interest and indications of support for action on climate change it has been dismissed as greenwashing (Levy and Newell, 2000; Brennan and Binney, 2008). Consumers have become disillusioned; many groundbreaking green products by specialist firms have left the market; the dramatic growth in green products introduction at the beginning of the 1990’s have subsided; and companies have become cautious about launching environmentally-based communication campaigns for fear of being accused of greenwashing (Peattie and Crane, 2005). The green market can lead to frustration, fatigue and scepticism as more businesses make environmental claims and more of those claims are declared as false or misleading. The average consumer is growing wary of products and services labelled green (Coberly, 2008).

4. GREENWASH

3.2.6 GREEN MARKETING AND THE FASHION INDUSTRY Research focused on green marketing and the fashion consumer has found that concerned consumers responded more positively to fashion advertisement with an environmental message than to those without (Phau and Ong, 2007). However, the consumer will consider messages focused on the company’s environmental activism more credible than those focused on the product’s environmental correctness (Phau and Ong, 2007). Phau and Ong (2007) also found that consumers are more likely to support campaigns and activities that are relatively unrelated to a company’s core business then to those directly related. In the fashion industry, factors such as the type of message used to convey ecological responsibility and the attitudinal characteristics of the audience influence their perceived credibility (Kim, 1995; Kim and Damhorst, 1999; Phau and Ong, 2007). However, it is not clear that convinced consumers will compromise or reduce any personal benefits of convenience, availability, price and quality, just to become customers and thereby support green products (Ginsberg and Bloom, 2004; Hartmann et al., 2005; Phau and Ong, 2007).

4.1 DEFINITION AND PURPOSE Extensive research indicate that some environmentally safe, ecological, green or sustainable product or services information, claims or communications have been misinterpreted by the consumer, or were identified as being misleading, unsubstantiated, irrelevant or false (Chase and Smith, 1992; Aitken, 2007; Corpwatch, 2008). Misleading the consumer through false information, or brand attributes that could be easily misinterpreted as green, when in fact it is not, is one definition of greenwashing. It is also thought to be greenwashing when a company, brand or business spends more time and money claiming to be green through advertising, marketing or PR, than actually implementing business practices that minimise environmental impact (Greenwashing Index, 2009). Greenwashing is a deprecatory term, which was coined in the 1990’s by environmental activists to describe deliberate and cynical attempts by companies to mislead the public about their environmental commitment and performance or efforts by corporations to portray themselves as environmentally responsible in order to mask environmental wrong-doings (Davies, 1992; Banerjee et al., 1995; Carlson et al., 1993). Greenwashing was confined to describing the misleading instances of environmental advertising, but as corporations’ efforts to portray themselves as environmentally virtuous expanded and proliferated, so did the definition of greenwashing. Today, the main objective of greenwashing is to give consumers and policy makers the impression that the company is taking the necessary steps to manage its ecological footprint (Aitken, 2007; Corpwatch, 2008, Makeower, 2008).

4.2 IN-DEPTH ASPECTS A lie concerning the sustainability or greenness of a product can have economic, environmental and social consequences. Greenwashing could result in consumer and regulator complacency. One of the risks of greenwashing is that if one business gets away with greenwashing, other businesses

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4. GREENWASH

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can follow suit, thereby creating an industry-wide illusion of environmental sustainability, rather than sustainability itself. This creation of the illusion of environmental sustainability could have dire social consequences as consumers will continue to use products and support companies that fuel further environmental degradation and reduce the quality of living conditions for future generations (Davis, 1992).

4.2.4 DO NOT’S OF GREEN MARKETING This is a summary of ‘Do Not’s’ for green marketing, based on several sources (TerraChoice, 2007; Futerra, 2008; ASA, 2008). This is followed (next page) by an analysis of a print campaign by Fur Council Canada.

GREENWASH 4.2.1 GREENWASHING TODAY In the last quarter of 2006, the ASA (Advertising Standard Authority) in the UK received 62 complaints about suspected greenwashing of 40 green advertisements. In the first six months of 2007, they received 268 complaints about 200 green advertisements (Aitken, 2007). It is believed that most greenwash is due to ignorance and/or sloppiness rather than malicious intent. Less than 1% of all claims examined in a (retail) study by TerraChoice (2007) were patently false (Makower, 2008). However, organisations such as TerraChoice and Futerra Communications state that nearly every green product on the market is making claims that are inaccurate, inappropriate, or unsubstantiated (TerraChoice, 2007, Futerra Communications, 2008).

Key words:

Do not...

EXAGGERATION

Overstate the environmental benefit either expressly or by implication.

FALSE

Greenwashing is sometimes believed to be used too liberally and the mistrust of green claims caused by the greenwash accusation is believed to cause some firms to no longer choose to make any green claims at all for risk of alienating consumers (Peattie and Crane, 2005). However, it is also suggested that not only perfectly green products should be marketed as environmentally preferable. Based on the consumption and sustainability paradox, there is not such thing as a perfectly green product. Environmentally preferable products are greener, not green, and marketing the product as such should be considered accurate (TerraChoice, 2007). It is proposed that one reason for the scepticism for green products is that green claims are often limited in scope by the overuse of descriptive terms such as ‘environmentally- friendly’, ‘sustainable’ and ‘natural’ (Karna et al., 2001; Annonziato, 2001). 4.2.2 GREENWASHING IN THE FASHION INDUSTRY In the Fashion industry, phraseology is seen as the most important component in the interaction between fashion brands and the consumers. Terms such as ‘ethical’, ‘organic’, ‘natural’, ‘recycled’, ‘second-hand’ and ‘vintage’ are the most commonly used to persuade consumers to believe that the products are green (Beard, 2008). These types of terms are only predicted to influence consumers’ purchase behaviour if the consumer already trusts the source, meaning that the claim is issued by a brand declared as socially responsible. The message will be viewed with cynicism, if the brand attributed to the message is not already perceived as environmentally or socially responsible (Phau and Ong, 2007; Thorgersen, 2002, Grankvist et al., 2004). Ginsberg and Bloom (2004) also claim that the consumers may not buy the green products because they perceive them to be of inferior quality as well as unable to deliver the environmental promises.



Make claims that are simply false.

FALSE IMPRESSION

Give the impression the product has qualities other than is actually the case.

IMAGING

Use environmental images, capable of making sweeping environmental claims



IRRELEVANT

Make claims that may be truthful, but irrelevant (unimportant or unhelpful).

LANGUAGE



Use exaggerating language.

NARROW



Be technically or narrowly correct without looking at the bigger picture.

PROMISES



Make environmental promises you cannot deliver.

UNREALISTIC





Make claims indicating an environmental benefit that while literally true is unlikely to happen in practice.



Make claims that cannot be substantiated by easily accessible supporting UNSUBSTANTIATED information. OR Present claims as universally accepted when the scientific

4.2.3 STANDARDS AND RULES As mentioned in chapter 4.1 Greenwash: Definition and Purpose, the definition of greenwashing has expanded and proliferated, as corporations’ effort to portray themselves as environmentally friendly has done the same. When a brand decides to communicate a green message or market their services or products as green, several authorities, organisations or individual interest groups are keeping a watchful eye over the accuracy of the message. While there are some official standard for environmental advertising (See Appendix I), other individual sources, environmental interest groups or organisations have created further unofficial rules of green marketing. These are important to be recognised as well, since they can create bad publicity for the brand even if they do not raise any legal concerns.

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basis is under dispute or inconclusive.

VAGUE



Be vague.

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4. GREENWASH Fig.1. shows a print ad by Fur Council of Canada, promoting Fur as an environmentally friendly product choice. While the outcome of any legal issues are under dispute or inconclusive, the ad has been recognised as greenwash by several interest groups such as Greenpeace, The Greenwashing Index and CorpWatch. Fur might be a natural resource, but it takes more than 15 times as much energy to produce a fur coat from ranch-raised animals, and more then 3.5 times as much energy to produce fur from a trapped animal, compared to synthetic or fake fur (Smith, 1979). The ad also uses words and phrases such as ‘Eco-fashion’, ‘sustainable’ and ‘natural’ in a vague, unsubstantiated and exaggerated fashion.

GREENWASH

“Eco Fashion!”

FALSE IMPRESSION: the use of language gives a false impression, attaching qualities to the product other then is actually the case.

“Synthetics are useful, but they are usually made from petrochemicals - nonrenewable resources that cause environmental problems. Fur by contrast...”

NARROW: might be technically correct, however is only presenting a narrow point of view, since Fur might be from nature, but chemicals are used for the actual production of garments.

“... is a natural, renewable and sustainable resource.”

VAGUE: use of vague language, can be considered unsubstantiated.

“... we use only part of what nature produces...”

IRRELEVANT: Might be true, however that is not relevant in basis of sustainability.

“Produced by nature”

VAGUE: Animals are from nature, however if a fur coat actually natural? FALSE IMPRESSION: gives the impression that their products are all nature, no chemicals used.

“... responsible fashion choice...”

FALSE: is fur really a responsible choice based on production? UNSUBSTANTIATED: cannot be substantiated by easily accessible information.

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5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5.2 ADIDAS GUERRILLA GARDENING

5. CASE STUDIES: theoretical analysis & hypotheses

Adidas, in co-operation with Dazed & Confused, created a few months long Guerrilla Gardening campaign where they transformed the urban environment (in London) with flowers, plants and greenery. The brand encouraged their consumers to ‘grab your gloves, start spraying seed-bombs, and get guerrilla gardening’. Videos of groups of Guerrilla Gardening activists in action were later posted online, as well as photos of found ‘green guerrilla urban environments’. The purpose of this campaign was to give focus to Adidas Grun, an organic collection of sneakers.

5.1 INTRODUCTION As a student of the Amsterdam Fashion Institute, as well as a member of the public and as a consumer, it was easy to come across a number of green marketing solutions unintentionally through television, magazines, or walking through the city, and through the 2 months intense research process, across a number of various mediums, ranging from internet, magazines and selected literature to experts in the fields of eco, marketing, advertising e.g. To select a number of green marketing examples for this chapter a number of key-words or phrases (see Appendix II), withdrawn from the earlier chapters of this report were used. The key words were synonymous to theories of what successful green marketing can be, or what it is not. They were later weighted and compared with existing green marketing campaigns or efforts of green branding. Four campaigns were chosen for this chapter. The selection was based on the similarity they had with the key-words of successful marketing, the potential the campaign had based on branding and marketing in general, and whether or not the campaign was purely functional for an actual green product, or if it actually was positioned in such a way that it made no promises about the actual greenness of the brand’s operations or product. The following research chapter will start off with a theoretical analysis of each campaign based on the gathered research provided in the research report. Based on the theoretical analysis, a number of hypotheses were created, stating if each campaign can be considered successful, or how it can be changed to ensure success. These hypotheses were later tested in a focus group discussion.

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The Adidas Guerrilla Gardening campaign was not about promises, or clear statements of their green efforts, but rather an experiential marketing campaign, giving the power of interpretation, association and action to their consumers. The campaign was supported by Kals et al.’s (1999) theory of the consumer and its basic desire to ‘feel at one with nature’, giving the consumer a virtual illusion of sustainability or ‘greenness’. As Hartmann and Apaolaza (2006) stated, the consumption of green products may serve as a substitute for real contact with nature, but Adidas went further than that. Instead of providing the consumer with an illusion of nature through their products or product advertisements, they created an actual nature experience. With this tangible nature experience Adidas created an opportunity for the consumer to take action and show their concern for the environment, something which research has shown the consumer feels increasingly personally insignificant to do (Sherwin and Staafgard, 2008; Coberly, 2008; Jones et al., 2008). The Adidas Guerrilla Gardening campaign has an emotional positioning strategy, building brand association through the emotional values associated with the experience. As previously mentioned, research has shown that consumers experience a feeling of well being or even happiness when they are in contact with natural environment, and it has even been suggested that the consumer feel that this contact with nature

can be counted as an intrinsic motivation for later purchase behaviour. The campaign is further supported by the belief that the consumer satisfaction increases since the consumer believes that by purchasing the brand, he or she is contributing to social welfare. This belief should not be mistaken for an actual functional benefit, supporting the theories of safety by Maslow (1970), but is rather an emotional illusion of the same benefit. The Guerrilla Gardening campaign portrays Adidas as a ‘leadership’ brand, encouraging the consumer to take action in other aspects then just their consumption. Because of this, and the aspirational brand associations that can be put to the brand based on previous marketing campaigns with celebrities and trend setters, the campaign is likely to attract consumers who are buying the “green image” in their consumption practices (Connolly and Prothero, 2003). The aspirational aspect of the brand could have some impact on the consumers’ behaviour in addition to their attitudes towards the product, beliefs about the environment, or the feeling of obligations to buy organic products (Hustvedt and Dickson, 2009). If so, the campaign’s environmental emotional benefits could be related to the needs of social approval or external personal expression, which is further supported by Lipovetsky’s (1994) theory of the fashion industry as a system for social regulations and social pressure. The “green image” associated with the Guerrilla Gardening campaign and the fact that consumers have a desire to be viewed as responsible in their fashion purchases (Arnold, 2001; Maynard, 2004; Beard, 2008), would then expectantly lead to actual purchase behaviour. As previously mentioned in the report, consumers can be less positive towards green brands if they believe that there is a trade-off between the functional performance of the brand, its environmental impacts and the emotional values attributed to the brand from the green campaign (Coddington, 1993; Schlegelmilch et al., 1996;

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5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES Hartmann and Apaolaza, 2006). By not providing any functional information about the product, Adidas is relying on previous brand knowledge and brand association by its consumers regarding the credibility of the message. This campaign is unlikely to be officially accused of greenwash since they make no official claims, no statements and no mentioning of the functional benefits of the products.

5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

There is also no exaggerated use of environmental-associated language or visuals. The relevance of this campaign and the brand and its corporate practices, because of the lack of functional benefits, could be questioned, but based on Adidas previous campaigns and the fact that ‘experiential marketing’ and Guerrilla Marketing is a practice previously used by the brand, this is also unlikely to cause any trade-off between the emotional and functional values of the campaign.

5.3 DKNY CITY BIKES DKNY attempted to provide their consumers with an environmental brand experience, placing orange painted bikes with the brands logo all around major cities such as New York and London. The campaign had as a goal to encourage consumers to lower their footprint and take the bike instead of the car. This campaign has received bad publicity throughout the web and can be determined as an unsuccessful attempt of adding green values to the brand. While none of the typical signs of greenwash can be associated with this campaign, it can be determined as unsuccessful since there was a significant tradeoff between the emotional values associated and the functional benefits to be gained. The bikes were locked, took up valuable parking space and were therefore not providing the consumer with any functional benefits. Based on the three levels where brands can incorporate green issues into their brand (chapter 2.3) it can be said that this campaign was on a communications-based level. The goal of the communications level is to attribute emotional benefits to the purchase of the brand or product - a feeling of nature and experiential green benefits in DKNY’s case. However, it is lacking measurable functional benefits. If this campaign would incorporate the second level, Internal & External Initiatives and Programmes, there would likely be more opportunities for functional benefits. The second level would enable the brand to provide the consumers with functional environmental benefits, while still attract consumers through emotional benefits attributed to the initiatives. Internally, DKNY could for example provide their employees with bikes, encouraging them to take the bike instead of car to work, similarly to what LA-based American Apparel did for their employees.

Photo: Ben Long

This first step could be followed by a combined functional and emotional version of the campaign, for example providing their customers, after purchase, with codes that could work to unlock the bikes, related to already existing

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government or privately owned Bike Sharing Networks available worldwide. (see Appendix III). If DKNY would provide the consumer with actual environmental functional benefits, the consumers’ purchase behaviour is more likely to be influenced, since they would more likely trust the brand and consider claims issued by a brand as socially responsible. While their initial emotional positioned campaign did encourage the consumer to action, a combined functional and emotional strategy is more likely to create a sense that something can be done, and create an actual association with the brand and environmental responsibility. DKNY is known as an urban casual/chic brand and most of their previous marketing campaign is featuring women and men in New York City, being active, or in a rush. Therefore, the actual campaign concept of ‘city bikes’ is not irrelevant to their brand. Bikes have been a previous feature in their communication and DKNY have an opportunity to influence fashion purchase behaviour through not only the emotional benefits attached to the campaign, but also based on Lipovetsky’s (1994) theory of fashion as a system for social regulations and social pressure. As previously mentioned, the green market and sustainability is not completely driven by consumer need, but businesses are taking a leadership role in this market development, and by providing the consumer with a combined functional and emotional based positioning strategy, they can encourage the consumer to not only take action in their daily life, but also associate DKNY with a brand that takes social responsibility. While the high street fashion retail shops and the fastfashion concept have taken over a great part of the fashion industry, DKNY is also providing the consumer with clothes that are not supposed to be thrown out after one season, and thereby they are supporting the concept of sustainability and can encourage the consumer to change their consumption habits.

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5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5.4 TARGET & TERRACYCLE COLLABORATION High-Street fashion brand Target collaborated with environmental group TerraCycle and US magazine Newsweek, in a campaign, making it possible for Target consumers to recycle their plastic bags and turn them in to re-usable carry bags. Target is a fast-fashion brand, meaning they encourage their consumers to buy many products with a shorter life-span. As previously mentioned the fast-fashion concept is working against sustainability, making it very difficult for such a brand to actually be seen as environmentally friendly or sustainable. As a high-street brand Target’s consumers are most likely to be represented by the price-sensitive consumer group. Therefore, producing organic or environmentally-friendly products that are often higher in price, is most likely not to be profitable for the company. By offering a green service or additional green product line, Target is avoiding the risk of losing customers because of higher prices, but are still having the possibility to add emotional green values to their brand. The consumers could, because of the campaign and Target showing their environmental concern, feel that this brings environmental intrinsic emotional values to their purchases. Since the campaign is in collaboration with two third-parties, consumer are likely to not only associate previous brand knowledge or values of Target to the campaign, but also those of TerraCycle and Newsweek. This is likely to have positive effects for Target since TerraCycle is known as sustainable, and Newsweek as a reliable source. The environmental benefits associated with for example TerraCycle, could be transferred to Target, making it possible for Target’s customers to experience a personal satisfaction by contributing to the improvement of the ‘common good’ environment.

Photo: Shira Gold

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of Anya Hindmarch’s ‘I’m not a plastic bag’ bag, which was considered a symbol for sustainability and the fashion industry, and had reclaimed press coverage. This means that the brand’s or campaign’s environmental benefit attributes could be related to the needs of social approval or external personal expressions. In contrast to other fast-fashion and high-street brands such as Swedish H&M and British TopShop, who both sell organic apparel, Target put focus on the environmental activism rather than functional labelling information. This approach is supported by Phau and Ong’s (2007) research, which showed that consumers will consider messages focused on the company’s environmental activism more credible than those focused on the product’s environmental correctness. By actually giving the power of recycling over to the consumers, their message of environmental responsibility is likely to be considered even more credible. While this campaign is likely to add some environmental emotional values to Target, it is however unlikely to be suitable as a long-term strategy. The fact still remains that the fast-fashion concept is unsustainable and this requires Target to think of the suitability of green values and their initial concept. This first step in greening their image, could be followed by another internal or external initiative or programme, such as the clothing recycling collaboration of M&S and Oxfam, mentioned previously in the report. However, as the Ethical Corporation (2003) stated; sustainability means better, smart and more efficient ways of production and consumption, which means that either Target have to eventually make green progress in their production, or have to change the consumption behaviour of their consumers, which would mean stepping away from the fast-fashion concept.

Recycling and especially re-usable carry bags are trend-led strategies, which especially in the fashion industry have been associated with the “green image”. This can be seen in the phenomena

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5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5.5 NIKE’S GREEN INITIATIVES As research has shown the overall corporate image with respect of doing a good job in helping to protect the environment is rather low, and a brand such as Nike, with a questionable past is not likely to receive positive reactions for any direct green marketing initiatives. However, Nike has, through several separate green initiatives and a combined functional and emotional strategy, managed to make great progress in greening their brand.

TARGET PRESSR ELEASE

Nike provides consumers and any stake-holders with a public comprehensive sustainability report that showcases all the areas in which the company is trying to improve its environmental performance. While this is common practice for many brands, Nike’s report is considered to be honest and is including both good and bad aspects of their business. As previously mentioned in the report, there is a growing demand for sustainable interventions in businesses, and Nike’s comprehensive report is clearly stating their willingness to contribute. The report is providing the stakeholders and consumers with functional benefits regarding safety and avoiding or eliminating a problem (Maslow, 1970; Fennell, 1978; Rossiter and Percy, 1987). They also show that they consider themselves as a part of the society and that as such, they have the potential to make positive contribution to social goals and aspirations. The report can be considered as a CSR initiative, and while there are arguments saying that CSR can be effectively without meaning, considered its vague definition and highly subjective content, Nike’s report can be considered successful since they are providing transparent content and are not avoiding reporting their mistakes or insufficient corporate behaviour.

PHOTO

Nike also collaborated with Creative Commons, creating network events where companies and stake-holders try to solve the issues of sustainability, called the GreenXchange. GreenXchange

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is an open platform that promotes the creation and adoption of technologies that have the potential to solve important global or industrywide challenges. Similar to their sustainability report, this initiative is unlikely to provide the consumers with any direct intrinsic emotional values. However, it once again shows Nike’s willingness to contribute, not only creating a sense that something can be done, but it also shows that they consider businesses to be leaders in the eco trend development and that is their responsibility to lead the market forward. Nike also attempts to show their environmental concern through an initiative called ‘Re-use A Shoe’ which enables consumers to recycle their old sneakers. As Phau and Ong (2007) stated, the consumer will consider messages focused on the company’s environmental activism (such as the re-use a shoe programme) to be more credible than those focused on the product’s environmental correctness. The campaign is likely to provide the consumer with experiential green benefits as well as emotional satisfaction of knowing they are doing a ‘good deed’ - creating a feeling of well being, which is associated with acting in an altruistic way. By providing the consumer with three different initiatives, which combined offers both functional as well as emotional benefits, there is a smaller risk of a potential trade-off between the functional performance of the brand, its environmental impact and the emotional values attributed to the brand from the Re-use A Shoe initiative. As the first two initiatives, may be limited by the fact that they are mostly providing the consumer with functional benefits, which does not intrinsically deliver individual benefits to the buyers of Nike products, the combined strategies should make up for any lack of emotional values and increase the chance of changed purchase behaviour.

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5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5. CASE STUDIES: THEORETICAL ANALYSIS & HYPOTHESES

5.6 HYPOTHESES Hypothesis 1: The Adidas Guerrilla Gardening campaign provides the consumers with intrinsic emotional values and benefits, associated with the feeling of nature, well being and happiness, which can later be transferred to environmental positive associations to Adidas. Hypothesis 2: The Adidas Guerrilla Gardening campaign and the environmental emotional and aspirational values associated with the campaign will attract consumers buying in to the “green image”. Hypothesis 3: The DKNY city bikes campaign is unsuccessful since there is a significant trade-off between the emotional values associated with the campaign, and the functional benefits to be gained. Hypothesis 4: If DKNY’s city bikes campaign would provide the consumer with functional benefits as well as the emotional values associated with the campaign, it would lead to further association of DKNY as a socially responsible brand. Hypothesis 5: Target’s green initiative is more likely to create environmental positive associations to the brand, than the functional labelling information provided by H&M organic cotton apparel. Hypothesis 6: Target’s green initiative is very likely to be considered as credible because of their third- party associations. Hypothesis 7:

Nike’s combined marketing- but separate brand- functional and emotional positioning strategy still ensures that there is no trade-off between the emotional values associated to the brand based on the Re-use A Shoe programme, and the functional performance of the brand.

Hypothesis 8: Nike’s initiatives shows their willingness to contribute to social welfare and improves the general attitude of Nike as a socially and environmentally responsible corporation/brand.

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CHAPTER 6. PRIMARY RESEARCH: FOCUS GROUP

6.3 FINDINGS

Chapter 6. PRIMARY RESEARCH: Focus Group



6.3.1 ADIDAS

Respondents strongly indicated that they believe that Adidas as a lifestyle brand has the ability to attract consumers who are ‘trend followers’, and therefore, this green campaign can attract the “green image” consumer group. However, the respondents believed that the campaign would more likely be associated with terms such as ‘hip’, ‘urban’ and ‘cool’ than ‘feeling of nature’, ‘well being’ and ‘happiness’. Regarding Adidas as an environmentally friendly brand, the respondents had separate opinions. About a half of the respondents believed that Adidas, because of its size and the risk for exposure of greenwash, would be more likely than smaller brand to be environmentally responsible. The other half had more sceptical views of bigger corporations and environmental responsibility, stating that they would only believe any green campaigns if they received good publicity or worked with a reliable third-party.

6.3.2 DKNY ‘Great idea’ but ‘wrong execution’ were common responses regarding DKNY city bike campaign. A majority of the group had heard of or had experience with ‘Bike Sharing Networks’, and believed that such an approach from a fashion brand would definitely change their opinions of the brand as environmentally responsible and would make them feel good about purchasing products from the brand, regardless of their manufacturing or production processes. A majority of the group also indicated that they already feel better (in regards to the environment) about purchasing products from a more expensive brand such as DKNY, than they do about buying high-street brands. About half of the group stated that they believe it to be of more importance for a fast-fashion or high-street brand to be environmentally friendly because of the high quantity of products, than for brands such as DKNY.

6.1 SHORT SURVEY FINDINGS Background characteristics of participants. Four women and three men attended the focus group, with an average age of 30,2 years old. Six out of seven had a college degree, and out of these, two a masters degree. Two out of the higher education graduates have a degree in Science, while the other four in humanistic or arts. Five out of seven were of British citizenship, while the other two classifies as expatriates with a EU citizenship. All of the participants are residents of the greater London area and the average annual salary was £ 27.750. When asked what could motivate them to buy green products and, two of the participants answered functional benefits, all of the participants if the product is cheaper or same price as non-green or inorganic product, and two out of seven if the product is healthier, or kinder to the skin, and five if the product comes from a reliable source.

6.3.3 TARGET AND TERRACYCLE The group expressively stated and agreed that working with a third-party source such as TerraCycle, changed their opinion of the brand in regards to environmental responsibility. It was said that ‘if an environmentally friendly company can work with them, they are probably quite green. Why would TerraCycle otherwise do it?’ However, some of the respondents believed that brand does not have to be green to work with such a third-party, but the fact that they took the effort to come up with the collaboration was enough to change their views of the brand. There was inconclusive evidence whether the functional information on labelling for H&M or the green initiative from Target was more credible. At first, the group stated that functional information is easier and makes them immediately feel good about purchasing the product, but when one member mentioned the fact that brands often say it is ‘organic cotton’ when only a small portion of the garment is actually produced with organic material, they started to doubt their reactions to functional information. The group also mentioned that if they step in to a store such as Target, they would not be looking for organic cotton garments, but if the price is right they would see it as a benefit. However, a green initiative such as Target & TerraCycle’s would change their views about brand associations in a way that functional information could not.

6.2 FOCUS GROUP STRUCTURE Open-ended questions were developed to guide the discussion, and the previously mentioned hypotheses were concluded in to the questions, but not presented in such a way to give any indications or clues as to why the marketing campaign might or might not be successful. Each campaign was presented either through visuals, in form of print ads, TV-ads or designated websites, or through mouth-to-mouth based presentation of the campaign. Each presentation was followed by a discussion. Ia Staxang-Johnsson (PR student and inexperienced in the field of green marketing) was present as a facilitator to ensure that the questions asked were objective and not leading, as well as to ensure the questions were simple and relevant to the average consumer. Date, time and location of discussion: 4th of April 2009 10.00 - 14.00 (11.30- 12.00 lunch) Queens Park, London, the UK Name of facilitator and notetaker: Karin Armgarth and Ia Staxang-Johnsson.

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CHAPTER 6. PRIMARY RESEARCH: FOCUS GROUP

6.3.4 NIKE The group was surprised of the amount of green initiatives coming from Nike, but quickly reacted saying that the brand is probably trying to make up for all the bad it has done in the past (child labouring). They stated that they would more likely believe green information from Nike to be credible, than that of its competitors such as Adidas and Puma, considering the consequences Nike has suffered from bad corporate behaviour in the past. The separate functional and emotional marketing strategies, would probably not result in a trade-off, since most of the participants stated that they would not only react to one campaign, but rather on the public and press image of the brand as a whole. The participants that have experienced the ‘Re-use A Shoe’ programme in real life, believed that it did in fact change their view of the brand in environmental terms, but they were unsure if it actually changed their purchase behaviour.

Chapter 7. CONCLUSION & RECOMMENDATIONS

6.4 DISCUSSION 7.1 CONCLUSION

6.4.1 ADIDAS (H1) It can be concluded that Adidas will attract consumers buying in to the “green image” and therefore, they have the possibility to change consumers purchase behaviour through intrinsic motivation of ‘doing a good deed’ and through extrinsic personal expressions and symbolic motivations. (H2) The actual emotional benefits and values associated to the campaign was more likely to further enhance and attract the “green image” than be transferred to environmental positive associations to Adidas.

Green marketing from less-green brands often have unfavourable consequences such as loss of brand credibility, greenwash accusations (legal) or general bad publicity towards the brand, its corporate values or its products, and not to mention the actual effects the ‘illusions of sustainability’ can cause the environment. However, evidence show that with the right positioning strategy and marketing objective, it can result in beneficial advantages for the brand, its consumers and conceivably the welfare of our society and environment. This report’s objective was to find green marketing implementation strategies available for less-green brands or companies that want to include the eco-trend in to their businesses, without running the risk of being accused of greenwashing. However, as complex as the subject of sustainability and marketing in fact really is, just as complex are the possible solutions.

6.4.2 DKNY (H4) By incorporating functional benefits and values to their initial environmental campaign, DKNY is likely to be associated with environmental responsibility, which could be transferred to consumers feeling intrinsic motivations for purchases. The brand also has a chance of attaching environmental values to their brand, through enhancing the image of their products as garments with longer life span. (H3) The initial campaign with the emotional positioning strategy is not likely to associate further environmental values to the brand.

The less-green brands have the responsibility to not only react accordingly to consumers’ needs or wants, but considering our environmental situation, the welfare of the society and the environment as well. The brands need to face the fact that while consumers are growing more aware of the effect their consumption has on the environment, this is often not translated in to actual purchase behaviour, since price, quality and availability are values considered more significant for purchases. The growing number of greenwash initiatives such as independent greenwash groups or blogs and websites dedicated to the subject, will ensure that without an actual feasible functional benefit, a green campaign run by a brand considered as less-green, will not be validated.

6.4.3 TARGET AND TERRACYCLE (H6) The green initiative is considered credible and the environmental values associated with the brand is enhanced through the third-parties. (H5) The emotional values associated with initiative is likely to have greater effect on the brand’s overall environmental image, than functional information of selected products. The enhanced corporate image is likely to influence the consumers purchase behaviour, by providing the consumers with a feeling that they are ‘doing a good deed’ when purchasing from the brand, regardless of the actual product’s environmental aspects.

The issue they are facing is that consumers wants emotional benefits associated with the purchase or the brand in terms of the environment, but the consumer feel a need to consider it as a credible and socially and environmentally responsible brand, to actually attach any environmental values to the brand or purchase. Credibility and status of environmentally and socially responsibility, will not prevail unless the brand actually delivers any form of functional benefits to the environment, which could in terms lead to affirmative press coverage or word-of-mouth narratives on the subject. To conclude, the brand needs to provide substantiated environmental functional benefits to our environment to reach a credible status on the subject.

6.4.4 NIKE (H7) The brand’s focus on separate functional information is likely to make any future emotional environmental claims more credible. (H8) Nike’s green initiatives show their willingness to contribute to social welfare and can in the future change the general attitude of Nike as a socially and environmentally responsible corporation, which would lead to further environmental associations influencing purchase behaviour based on acting in an altruistic way. 38.

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CHAPTER 7. CONCLUSION & RECOMMENDATIONS

CHAPTER 7. CONCLUSION & RECOMMENDATIONS

However, there is a significant importance that the emotional positioning strategy of the brand and its campaign will cause affirmative reactions on the consumer in terms of environmental association. Since the brand needs to react accordingly to the rules of green marketing to avoid greenwash, general attributes often associated with emotional positioning strategies such as environmental associated visuals, language or promises, need to be strictly avoided. While avoiding these environmental association strategies the brand needs to provide the consumer with any of the following benefits: - Altruistic benefits, through an increased emotional satisfaction based on the belief that by acting in an altruistic manner, the consumer is contributing to the environmental welfare of the society, - Experiential benefits, providing the consumer of an illusion of nature which in turn produces a feelings of well being or happiness, normally stemming from actual contact with nature. - Symbolic benefits, which can be related to the needs of social approval or external personal expressions, providing the consumer with the intrinsic reward of being seen as a ‘environmentally responsible’ consumer, which could further strengthen the importance of the “green image” in the fashion industry. When implementing strategies providing the consumer with any of these purchase based emotional environmental benefits, the brand needs to ensure that there is no trade-off between the emotional or functional benefits provided by the campaign. If the emotional benefits would cause stronger associations to the brand or campaign, than the functional benefits are actually providing, the campaign would run the risk of greenwash accusations, since the consumer is manipulated into believing that the brand is greener than it actually is. However, this repercussion could be further avoided by presenting transparent and honest information about all the activities of the corporations, including those considered as less environmentally friendly. The brand needs to further avoid greenwash accusations based on the relevance of the campaign. Therefore, solutions that can be considered as branded, based on previous core values, campaign attributes or concept of the brand, is of significant importance. An unbranded campaign, lacking of easily identifying attributes of the brand and its core values, can easily result in a discussion regarding the relevance of the campaign and whether the objective of the campaign is more based on associating emotional environmental values to the brand, than about actual functional benefits supporting the cause of environmental responsibility.

7.2 RECOMMENDATIONS - THREE STRATEGIES

7.2.1 PRODUCT REPLACEMENT AND EXPERIENTIAL MARKETING

Levels of green Incorporation: First level (product) and Third level (communication). Description: Brand-related product, collection line or other consumables that provide the consumer (and society) with environmental functional benefits, which previous or existing products does not provide. The initiative should be promoted through experiential marketing. Benefits for the brand: Enhanced corporate image. Establish brand credibility in regards to environmental responsibility necessary for future green campaigns. Help improve society overall. Build a connection with the consumer, including the growing eco- conscious consumer group. Be seen as a leader in the eco trend development, including the possibility of creating the “green image”. Green Marketing Strategy: Through the two-step approach, the initiative will have a combined functional and emotional positioning strategy, stimulating the consumers’ purchase intentions. The consumer benefits of, and attraction to, the branded products will come from the emotional benefit attributed to the third level communication campaign. That is where the notable reminder of the intrinsic rewards that the environmentally conscious activities lies. While the experiential marketing campaign might at first benefit from the consumers’ emotional reactions, the fact that this might lead to actual purchase behaviour, lowers the risk of potential trade-off. The functionally acceptable green consumable and/or the experiential marketing campaign can: - Work as a substitute for real contact with nature. - Satisfy the consumer’s need for products kind to the skin, or health related. - Satisfy the consumer’s willingness to personally contribute to the problems regarding the environment. - Create a feeling of well being or happiness normally associated with spending time in nature. - Provide the consumer with emotional satisfaction since he/she believes that by purchasing the product, he/she is contributing to social welfare. (Functional benefit through actual purchase) - Help the brand create a “green image” around the product, brand or campaign, and thereby support the future significant image of the environmental issue. - Experiential marketing approach can provide the consumer with an illusion of/ or actual functional benefit of activism, which is more credible than functional information. Avoiding Greenwash: By not making any promises about the actual brand, and instead focus on the emotional aspect of the third communication level, which combined with an actual functional green product reduces the risk of greenwash. No environmental certifications, false product claims or green labelling. State transparent information, for example 58% organic cotton on the product. No exaggerated language or too much green visual on packaging. No trade-off between actual functional information of the product and the emotional values associated with the campaign. Do not spend more money on the campaign than on the product. Make no promises or irrelevant claims. Most importantly, do not be vague but honest and transparent.

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CHAPTER 7. CONCLUSION & RECOMMENDATIONS

CHAPTER 7. CONCLUSION & RECOMMENDATIONS

7.2.2 FUNCTIONAL AND EMOTIONAL CORPORATE HYGIENE



7.2.3 BRANDED COMMUNICATION AND CONSUMER ACTION

Levels of Green Incorporation: Second level (external or internal initiatives and programmes)

Levels of Green Incorporation: Third level (communication)

Description: An internal or external initiative or programme that provides functional benefits to the environment while through associations and possible word-of-mouth promotion, also provide emotional benefits to the consumer, increasing the chance of stimulating purchase behaviour.

Description: Experiential, guerrilla or action driven campaign, which involves the consumer and not only encourages them to take action, but provides the tools for actual implementation. Benefits for the brand: Build a connection with the consumer, including the growing eco-conscious consumer group. Be seen as a leader in the eco-trend development, including the possibility of creating the “green image”.

Benefits for the brand: Enhanced corporate image. Establish brand credibility in regards to environmental responsibility necessary for future green campaigns. Help improve society overall. Build a connection with the consumer, including the growing eco- conscious consumer group. Be seen as a leader in the eco trend development, including the possibility of creating the “green image”. Increase employee commitment.

Green Marketing Strategy: If correctly and efficiently implemented the campaign can provide emotional benefits (through experiential campaign) and functional benefits to the environment through the consumer actions. This strategy is riskier previous mentioned strategies, since if the campaign fails to encourage action, there is a potential for trade-off. To decrease the risk of trade-off, the campaign need to be perfectly ‘branded’, ensuring that the campaign is as related to the core values of the brand, as it is to the environment.

Green Marketing Strategy: There is no directly related marketing campaign, but by providing enough functional benefits to the environment and by applying a strategy, making it possible for the consumer to be involved, there is a good chance for positive consumer empowered promotion, for example word-of-mouth. Since there is no direct marketing campaign or easily detectable relation to corporate profits, the brand have a greater possibility of gaining credibility and become a trust-worthy source for future attempts of greening the business.

Avoiding Greenwash: No promises or claims regarding the environmental aspects of the brand. If incorrectly implemented there is a risk of question of relevance, or potential trade-off between the emotional green values being associated with the brand, and the functional benefits actually gained by the campaign.

Avoiding Greenwash: No promises, claims or green associations with the brand in the initial stage, but an actual functional strategy automatically avoiding any possible risks of greenwash.

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GLOSSARY Brand experience

(1.) The cumulative brand impressions garnered from visual, verbal and experiential encounters with the brand. (2.) Marketing or brand activity in which the brand enables the consumer to experience the brand by being actively involved.

Corporate hygiene

Noun for dean, as in green, corporate behaviour, office practices, managerial functions etc.

CSR

Corporate Social Responsibility. Commitment to improve community well-being through optional self-regulated business practices and contributions of corporate resources.

Eco Trend

Phrase encompassing the increase in environmental awareness and concern for green products, services, business practices or lifestyle choices.

Experiential Marketing

Experiential Marketing connects audiences with the authentic nature of a brand through participation in personally relevant, credible and memorable encounters. [Definition from Advent Blog].

Green:

Refers [in this report] to anything having environmental benefits, values, attributes or associations.

GRI

Global Report Initiative. Has as a mission to make sustainability reporting as measurable as financial reporting for all businesses. (Certified sustainable reporting)

Guerrilla Gardening

Was previously mostly referred to political gardening, by direct action primarily practiced by environmentalists. The concept is now used by brands as a marketing tool putting emphasise on the environment.

Guerrilla Marketing

An unconventional way of performing marketing activities on a very low budget. In this report it often refers to targeted and subversive street-level promotional campaigns.

Less-Green Brand

Refers to a brand which of the majority of the products, services or business practices are not environmentally-friendly or sustainable.

Sustainability report

Corporate report which includes businesses attempts of becoming more sustainable or their promises regarding future environmental issues.

WOM

Word-of-mouth. Passing of information from person to person. In marketing it refers to the passing of brand information through consumers or others.

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APPENDIX I THE ADVERTISING CODES Summary from Advertising Standards Authority (UK) (ASA, 2008) Relevant code clauses from the Television, Radio and Non-broadcast advertising codes: CAP Code – Non-Broadcast Substantiation 3.1 Before distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove all claims, whether direct or implied, that are capable of objective substantiation. Relevant evidence should be sent without delay if requested by the ASA or CAP. The adequacy of evidence will be judged on whether it supports both the detailed claims and the overall impression created by the marketing communication. The full name and geographical business address of marketers should be provided without delay if requested by the ASA or CAP. 3.2 If there is a significant division of informed opinion about any claims made in a marketing communication they should not be portrayed as generally agreed. Environmental Claims 49.1 The basis of any claim should be explained clearly and should be qualified where necessary. Unqualified claims can mislead if they omit significant information. 49.2 Claims such as ‘environmentally friendly’ or ‘wholly biodegradable’ should not be used without qualification unless marketers can provide convincing evidence that their product will cause no environmental damage when taking into account the full life cycle of the product. Qualified claims and comparisons such as ‘greener’ or ‘friendlier’ may be acceptable if marketers can substantiate that their product provides an overall improvement in environmental terms either against their competitors’ or their own previous products. 49.3 Where there is a significant division of scientific opinion or where evidence is inconclusive this should be reflected in any statements made in the marketing communication. Marketers should not suggest that their claims command universal acceptance if that is not the case. 49.4 If a product has never had a demonstrably adverse effect on the environment, marketing communications should not imply that the formulation has changed to make it safe. It is legitimate, however, to make claims about a product whose composition has changed or has always been designed in a way that omits chemicals known to cause damage to the environment. 49.5 The use of extravagant language should be avoided, as should bogus and confusing scientific terms. If it is necessary to use a scientific expression, its meaning should be clear. BCAP Radio Code The vast majority of clauses in the BCAP Radio Code are consistent with The Consumer Protection from Unfair Trading Regulations 2008 (CPRs), which came into force on 26 May 2008. To the extent that any rules are inconsistent with the Regulations, the provisions of the Regulations take precedence. The BCAP consultation on the Regulation of Unfair Practices in TV and Radio Advertisements ends on 22 July 2008; it proposes changes to the BCAP TV and Radio Codes to reflect the CPRs. 3 Misleadingness All advertisements must comply with the requirements of the Control of Misleading Advertisements Regulations 1988 (as amended). The ASA is empowered to regard a factual claim as inaccurate unless adequate evidence of accuracy is provided within a short period of time when requested. The ASA will require advertisements that are found to be misleading to be withdrawn and not played again. The Control of Misleading Advertisements Regulations define an advertisement as misleading if “...in any way, including its presentation, it deceives or is likely to deceive the persons to whom it is addressed ... and if, by reason of its deceptive nature, it is likely to affect their economic behaviour or ... injures or is likely to injure a competitor of the person whose interests the advertisement seeks to promote.” In exercise of powers contracted out to it by Ofcom, the ASA has a specific duty under the regulations to investigate complaints (other than frivolous or vexatious ones) about alleged misleading advertisements. In particular: a) Advertisements must not contain any descriptions, claims or other material which might, directly or by implication, mislead about the product or service advertised or about its suitability for the purpose recommended. b) Advertisements must clarify any important limitations or qualifications, without which a misleading impression of a product or service might be given. Advertisements must not misleadingly claim or imply that the product advertised, or an ingredient, has some special property or quality which cannot be established. Scripts must not contain complicated technical jargon. Relevant scientific terminology may only be used in a way that can be readily understood by listeners without specialist knowledge. Scientific terms, statistics, quotations from technical literature, etc. should be used with a proper sense of clarity to

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APPENDIX I

the unsophisticated listener. Irrelevant data and scientific jargon should not be used to make claims appear to have a scientific basis they do not possess. Statistics of limited validity should not be presented in such a way as to make it appear that they are universally true. This paragraph is especially relevant to environment-related claims (see Section 2, Rule 5). c) Before accepting advertisements, Licensees must be satisfied that all descriptions and claims have been adequately substantiated by the advertiser. A half-truth, or a statement which inflates the truth, or which is literally true but deceptive when taken out of context, may be misleading for these purposes. Ambiguity in the precise wording of advertisements and in the use of sound effects must be avoided. All factual claims need substantiation and advertisers must provide supporting written evidence if claims are likely to be challenged. ‘Puffery’ is only acceptable in descriptions of products and services where listeners can very easily recognise and accept it as such. Claims in sung jingles should be substantiated in the same way as those using the spoken word. Advertisements must not falsely suggest or imply official approval for a product. 5 Environmental claims Central copy clearance is required. Sound factual evidence must support all claims. a) Generalised claims for environmental benefit must be assessed on a ‘cradle to grave’ basis. The complete life-cycle of the product and its packaging, the environmental effects of its manufacture, use, disposal and all other relevant aspects must be taken into account; b) Categorical statements such as ‘environment friendly’, ‘safe’ or ‘green’ are inappropriate; c) Limited claims, relating to specific aspects of products or services, are acceptable in circumstances where more general ones cannot be justified; d) Qualified claims (such as ‘friendlier’) are acceptable only where products/services can demonstrate significant advantages over competitors or improvements in, for example, the chemicals or packaging they use. In such cases the nature of the benefit must be explained, e.g. “our unbleached nappies are kinder to the environment”; e) Claims based on the absence of a harmful chemical or damaging effect are unacceptable if the product category does not generally include the chemical or cause the effect. Claims for the absence of harmful constituents are also unacceptable if the product contains other, equally harmful elements. Spurious “free from X” claims are unacceptable. Advertising should also follow the Green Claims Code, published by the Department for the Environment, Food and Rural Affairs (Defra). BCAP Television Code The vast majority of clauses in the BCAP Television Code are consistent with The Consumer Protection from Unfair Trading Regulations 2008 (CPRs), which came into force on 26 May 2008. To the extent that any rules are inconsistent with the Regulations, the provisions of the Regulations take precedence. The BCAP consultation on the Regulation of Unfair Practices in TV and Radio Advertisements ends on 22 July 2008; it proposes changes to the BCAP TV and Radio Codes to reflect the CPRs. 5.1 Definition of misleading advertising No advertisement may directly or by implication mislead about any material fact or characteristic of a product or service Notes: (1) See also 7.1 (Misleading advertising and children) for additional rules about advertising for products and services likely to be of interest to children. (2) Advertising is likely to be considered misleading if, for example, it contains a false statement, description, illustration or claim about a material fact or characteristic. Material characteristics include price, availability and performance. Any ambiguity which might give a misleading impression must be avoided. (3) Even if everything stated is literally true, an advertisement may still mislead if it conceals significant facts or creates a false impression of relevant aspects of the product or service. (4) Scientific terms or jargon, statistics and other technical information should not be used to make claims appear to have a scientific basis that they do not possess. Equally, statistics of limited validity must not be presented in such a way as to mislead, for instance by implying that they are universally true. (5) An advertisement may be misleading even if it does not directly lead to financial loss or a misguided purchasing decision. The ASA and BCAP may also regard an advertisement as misleading if, for example, it causes viewers to waste their time making enquiries, only to find that offers are unavailable or that there are important limitations. This could involve encouraging viewers to visit shops, or to make lengthy telephone calls (including freephone calls). (6) When assessing whether an advertisement is misleading, the ASA and BCAP consider the overall impression likely to be conveyed to a reasonable viewer. They do not consider the intentions of the advertiser, nor simply whether the advertising meets legal or other regulatory requirements. (7) In addition to its delegated powers under the Communications Act 2003, the ASA has a duty to enforce the Control of Misleading Advertisements Regulations 1988 (as amended). An advertisement is misleading if: (a) it is likely to deceive those who see it and

(b) as a result of that deception, is likely to affect consumers’ economic behaviour or (c) for the reasons given in (a) and (b), it injures or is likely to injure a competitor of the person whose interests the advertisement promotes. 5.2 Claims 5.2.1 Evidence Licensees must obtain adequate objective evidence to support all claims Notes: (1) Where a claim is based on scientific research or testing, that work should have been conducted in accordance with recognised best practice. Where licensees lack the specialised knowledge to assess the adequacy of evidence, they must consult independent experts. (2) Licensees must make their own independent assessment of evidence submitted in support of advertising, and of any advice they have commissioned. (3) Absolute claims – e.g. ‘best on the market’, ‘lowest prices guaranteed’ – should be avoided unless they are backed up by clear evidence and are based on a formula on which an advertiser can completely deliver. In particular, licensees should be alert to the fact that such claims may be invalidated by sudden changes in the market or the actions of competitors while the advertising is still on air. For this reason, absolute price claims should be treated with great caution. (4) Under the Control of Misleading Advertisements Regulations 1988, the ASA is empowered to regard a factual claim as inaccurate unless adequate evidence of accuracy is provided to it when requested. (5) A claim can be implied or direct, written, spoken or visual. The name of a product or service may in itself be regarded as a claim. 5.2.2 Implications Descriptions, claims and illustrations must not imply attributes, capabilities or performance beyond those that can be achieved in normal use 5.2.3 Qualifications All important limitations and qualifications must be made clear Note: Important limitations and qualifications include those on availability, particularly where failure to mention such conditions is likely to lead viewers to assume that an advertised offer is available on equal terms to all who might see it. Such restrictions might include geographical restrictions, limited numbers of purchases per person, age or sex restrictions etc. 5.2.6 Environmental claims Advertisements must not make unsubstantiated claims about environmental impact Note: Best practice on environmental impact claims is contained in ISO 14021 and the Department for the Environment, Food and Rural Affairs’ Green Claims Code. Licensees must satisfy themselves that any departure from this best practice is justified.

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APPENDIX II

APPENDIX III

KEY WORDS FOR CROSS-SECTIONAL ANALYSIS

BIKE SHARING NETWORK

The campaigns should... ...encourage the consumer to consume differently and efficiently (Jones et al., 2007) ...make the consumer feel one with nature (Kals et al., 1999) ...provide the consumer with sufficient benefits and provide a reminder of intrinsic motivations (Hartmann and Apaolaza, 2006; Phau and Ong, 2007; Carlson et al., 1993) ...provide the consumer with safety motivations (Maslow, 1970) or a feeling or hope of eliminating the problem (Fenell, 1978; Rossiter and Percy, 1987) ...provide the consumer with experiential benefits (Park et al., 1986) ...provide the consumer with symbolic extrinsic motivation or the “green image” (Montoro et al., 2006; Connolly and Prothero, 2003; Arnold, 2001; Maynard, 2004; Beard, 2008; Lipovetsky, 1994) ...show that the business and/or brand is in a leadership role (Sherwin & Staafgard, 2008; Coberly, 2008, Jones et al., 2007) ...combine functional and emotional marketing strategy (Hartmann and Apaolaza, 2006; Phau and Ong, 2007; Bhat and Reddy, 1998) ...encourage action/activism from the consumers (Helyer Donaldson, 2005; Sherwin and Staafgard, 2008; Phau and Ong, 2007)

(Copyright City Ryde LLC - page 6-7 of Bicycle Sharing Systems Worldwide: Selected Case Studies, 4/30/2009) [Available by request: CityRyde LLC, 3225 Arch Street Philadelphia, PA 19104 +1-215-457-5224 [email protected]]

About Bicycle Sharing Bike Sharing (also known as Community Bicycle Programs and/ or Public Use Bike Systems/Schemes) as it exists today is an emerging form of environmentally friendly public transportation that incorporates information technology with shared bicycles which allows for an alternative form of one-way transit for residents and visitors of a region. A few of the more noteworthy benefits of bike sharing include: - Greater mobility - Greater quality of human life and health found through exercise - Reduce traffic congestion leading to quieter, safer and more livable streets - Reduced carbon emission (Green House Gases) - Retention of 18-34 years of age demographic - Further reinforce community’s position for leading in innovation and quality of life • Creates employment opportunities • Provides transportation-based case study prospects • Increased amounts of disposable income for users • Increased public transit ridership (subways, trolleys, buses, taxis, etc.) • Greater environmental awareness across community • Reach destinations poorly served by public transit

The campaign should not... ...be misleading, false, unsubstantiated or irrelevant (Chase and Smith, 1992; Aitken, 2007; Corpwatch, 2009) ... be unable to deliver promises stated (Ginsberg and Bloom, 2004) ...make environmental promises you cannot deliver. ...make claims that may be truthful, but irrelevant (unimportant or unhelpful). ...be vague. ...use environmental images, capable of making sweeping environmental claims. ...be technically or narrowly correct without looking at the bigger picture. ...present claims as universally accepted when the scientific basis is under dispute or inconclusive. ...give the impression the product has qualities other than is actually the case. ...overstate the environmental benefit either expressly or by implication. ...make claims indicating an environmental benefit that while literally true is unlikely to happen in practice. ...use exaggerating language. ...make claims that cannot be substantiated by easily accessible supporting information. ...make claims that are simply false. (TerraChoice, 2007; Futerra, 2008; ASA, 2008)

History Bike sharing has evolved considerably since it was introduced to the world in the 1960s. The first generation systems adopted the communal spirit of sharing and relied on the honesty of patrons. Theft and the inability to reliably find a bicycle led to the second generation of bicycle sharing. Second generation systems attempted to solve the issue of theft with custom parts, a distinctive appearance of the bikes and the introduction of locking mechanisms. However, reliability continued to be a hindrance to wide adoption of the 2nd generation programs. As a result, the 3rd generation of bicycle sharing was introduced. Thanks to technological advances solutions were developed that addressed the issues of both first and second generation systems. 3rd generation bike share systems consist of distinctive bikes, an unmanned mechanism to lock/release the bikes and the ability to regulate and monitor the system. Present state Bike sharing is growing at a rapid pace with the number of bike share programs in the world increasing from 60 to nearly 100 over the course of 2008. This rapid rate of growth is expected to continue despite weak financial markets due in part to increased environmental impact awareness, increased usage of public transit systems and the need for decreased traffic congestion. Typical bike sharing revenue models MUNICIPALITY FOUNDED SELF-FOUNDED ADVERTISING CONTRACT BASED FLAT FEE BASED PRIVATE / PUBLIC PARTNERSHIP

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APPENDIX III What demographics typically join? Bike sharing members take the form of all different shapes, sizes, ages, genders, etc. The defining characteristics of the most typical member, however, are: - 18-34 years of age - High level of education - Require high level of mobility - Cognizant of environmental and social issues

CONTACT DETAILS

Typical partners in bike sharing implementations Many organizations are positively affected by a bike sharing implementation, some more than others. Typically, the following entities i.e. prospective partners see the most benefits in a bike sharing program and often take action to help bring the programs into fruition: - Municipalities - Transit agencies - Property managers - Local advocates - Colleges and Universities - Local businesses (including consultancies) - Activist organizations Assistance from these prospective partners may include marketing, administrative, financial, zoning, planning, taxes, policy, transit integration, and others.

MailMe: [email protected] SkypeMe: karinarmgarth

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