NRWC2014 "Closing the Green Gap: What can the retailer do inside the store?"

2014-11-06!

Closing the Green Gap!What can the retailer do inside the store?!

Hugo Guyader!

Green Gap !

Green Shopping Behavior

•  Green Products = 4.3% market share (Ekoweb, 2014) !

Pro-Environmental Attitudes

•  Sustainable lifestyle = social norm!

•  Willinglness to pay a price premium (‘Green Premium’)!

consumers do have a high concern for the environment but a de facto low green shopping behavior

Barriers to Green Consumption !

•  perceived high prices!

•  lack of knowledge!lack of understanding !

•  mistrust of green claims!confusion among labels !

Gleim et al. (2013)!

Retailer’s Influence!

76% purchase decisions are taken in-store (POPAI, 2012).!

Green consumers seek information (visual attention) to assess products’ environmental benefits.!

Tsarenko et al. (2013) show that retailers (information gatekeepers) have a strong influence on green purchase decisions.!

Store signage influences visual attention and choice behaviour (Otterbring et al., 2014). !ICA Maxi!

(Linköping)!

COOP Solentuna!(Stockholm)!

Hemköp Ryd !(Linköping)!

ICA Tuna!(Lund)!

Retailers can influence the consumer in-store !to make green purchase decisions, by: !

!1.  influencing consumer intentions !2.  green product assortment !3.  orienting the consumers towards

green products !

Closing the Green Gap !

Conceptual Model !

Methodology!

•  Eye Tracking provides objective and quantitative evidence of the user’s visual and mental processes (Duchowski, 2007). !

•  Survey measurement of purchase intentions (WTP), rather than environmental attitudes (Follows & Jobber, 2000).!

experiment

Experimental Design !

66 participants shopping for a friend !2 groups: control (46%) and primed (54%) !

priming: “please buy green”!representative of the consumers looking for green products!

•  Coffee Experiment!

•  Softener Experiment!

Coffee Experiment !

Coffee Green Premium !

priming effect: increase in consumers’

green premium for coffee by 11% !

Coffee Eye Tracking !

control group" primed group"

Fixation Time Average [ms]"

0" 2000"1000"

priming effect: increase in consumers’ visual attention on green coffees by 90% and green price tags by 120% !

Softener Experiment !

Softener Green Premium !

priming effect: increase in consumers’

green premium for softener by 21% !

Softener Eye Tracking !

Fixation Time Average [ms]"

0" 2000"1000"

control group" primed group"

priming effect: increase in consumers’ visual attention !on eco-friendly softeners by 480%!!

Softener GLM !

R2 = 64.1% !

visual attention: misleading packaging! decreases the Green Premium!

Take Aways !

•  Retailers can influence green consumption in-store by: !

•  Increase consumers’ Green Premium by 10.75% for coffee and 20.81% for softener product!

•  Increase consumer’s Visual Attention on green products and price tags. !

!1.  influencing consumer intentions !2.  green product assortment !3.  orienting the consumers towards green products !

any questions?!

Thank you for your attention !

hugo.guyader@liu.se!