IMC 612 How the Green Wine Industry Influences Consumer Behavior

RUNNING HEAD: It’s not easy being green, but it can be profitable p. 1

It’s not easy being green, but it can be profitable

Stephanie Marchant

West Virginia University


As awareness of the consumers about environmental issues increases, the impact on their

life-style, buying behavior, consumption pattern and purchasing habits is also changed in order

to help improve the environment. Corporate strategies of environmental marketing include green

advertisement, consumer willingness to pay more for green products, recycled products,

biodegradable packaging, and eco-friendly labeling. (Neese & Favia, 2013) Consumers are not

merely buying a product to satisfy their need but the use of a product also represents what the

owner values and it becomes an extension of the owner. Marketing plays a vital function in the

consumer goods industry as differentiation on product function or specification appears futile to

the consumers through advertisement. Advertising in the category of consumer goods industry

increasingly relies on emotional appeal seeking to connect with the norms and values of the

customers. (Rundh, 2013) This paper is an attempt to review the impact of green advertisement

and eco-friendly labeling on the buying behavior of the consumers.

Over 70 % of purchase decisions are made at the shelf. Since packaging of a product is

the first thing that a consumer sees, it plays a vital role in differentiating a brand from the

competition. (Rundh, 2013) Consumers are strongly influenced by the packaging of products

that they are considering to buy. Marketers are well aware of this fact, and go to great lengths to

create packaging that will draw in consumers and convince them to buy the product. This shift

in consumer decision making means that marketers need to adjust their messages and to view the

change not as a loss of power over consumers but as an opportunity to be in the right place at the

right time, giving them the information and support they need to make the right decisions.

(Laroche, Bergeron, & Barbaro-Forleo, 2001) Packaging is often the last impression the

consumer or customer will have of a product before that final purchase decision is made.

Therefore, it is worth ensuring that packaging is working as hard as possible to secure that sale.


This may be in the form of imagery, brand values, product functionality or pure innovation.

There are many ways in which packaging can add value. Marketers should consider a few things

in order to make packaging support their brand positioning, build competitive advantage,

maintain innovation or increase their price premium.

Two major values that influence consumer behavior are individualism and collectivism.

On one hand, individualism represents how much a person focuses on his/her independent self.

Individualist people engage in voluntary associations and they make sure that they remain

distinct individuals, even when they belong to groups. They also compete with others for status,

which depends on their accomplishments much more than on their group memberships. On the

other hand, collectivism implies cooperation, helpfulness, and consideration of the goals of the

group relative to the individual. Being a collectivist means that one may forego individual

motivations for that which is good for the group. (Solomon, 2013)

In addition, the impact of two other relevant values on consumers’ environmentally

conscious behavior includes fun/enjoyment and security. The fun/enjoyment value can be

positively related to attitudes about the importance of recycling and to the recycling behavior.

This relationship makes sense if one considers that those who value fun and enjoyment in life

may see a fulfillment of this end-state through interaction with the environment. (Laroche,

Bergeron, & Barbaro-Forleo, 2001)

Developing a better understanding of what causes individuals to pay more for

environmentally friendly products leads to a greater opportunity for marketers to develop

strategies specifically targeted at these consumers.

For instance, the wine industry is growing more competitive, and marketers are seeking

ways to differentiate their brands to consumers. How consumers perceive wine as a product and


its characteristics is an essential factor in the decision process and to a brands success. However,

with the choice of wines numbering in the thousands, when consumers begin selecting a

particular wine over another is still unknown. Companies promoting increased environmental

awareness believe information will lead to increasing environmental knowledge, thus changing

attitudes and buying behaviors.

Buyers are engaging in decisions about everyday consumption as well as sustainable

purchase consumption. Everyday consumption is driven by convenience, habit, value for money,

personal health concerns, and individual responses to social and institutional norms. Whereas

sustainable consumption is based on a thoughtful decision-making process that considers social

responsibility in addition to individual needs and wants. (Laroche, Bergeron, & Barbaro-Forleo,

2001) One possible opportunity of incorporating environmental responsibility into consumer

behavior and related package design and planning is to attract consumers who are fundamentally

interested in protecting the environment and consequently behave in ways that lead to a smaller

ecological footprint. (Bemporad & Baranowski, 2007)

Understanding customers and satisfying their needs is the basis of marketing theory,

particularly because different customers have different needs, and by treating them all alike, it is

seldom possible to satisfy all customers. Therefore, to place “green” products in the right market

position, it is important to determine who the environmental consumers are. Segmentation by

using attitudes, values, knowledge, levels of environmental purchase behavior, and

demographics is one possible method. (Neese & Favia, 2013) Once the segmentation is

completed, then target the “greener” consumer with the appropriate advertising and

communication medium.


Wine packaging and design can engage a customer, increasing the likelihood of positive

purchase. The key is for the product to appeal to the main prompting “cues.” Examples of these

cues are grape variety; country or region of origin; label design; bottle shape; recommendation

and/or third-party endorsement; environmental concerns; packaging, closure, and price/quality.

(Henley, Fowler, Yuan, Stout, & Goh, 2011)

Through an appropriately targeted advertising campaign, marketers can encourage

positive attitudes and behaviors held by ecologically friendly people through the purchase of

these alternative packaging containers. It is of critical importance for marketers to advertise

why it is convenient to purchase green wine packaging and to change consumer perceptions in a

positive way. (McIntyre, 2009) More and more companies educate consumers about the

convenience of buying ecologically safe products.

While marketing is essential to a sustainable business, the process can have a very

different feel to it than the process of self-improvement in vineyard and winery management.

The goal of sustainable winegrowing is to leave a smaller environmental footprint and

contributing in a positive way to the local community. The goal of marketing is to add value to

and sell more wine grapes and wine. Packaging is one example. There is wine in a box/Tetra

packs vs. glass bottles, synthetic closures vs. cork, recyclable packaging, and so forth. From an

energy standpoint, the argument for producing wine in a box, or wine in plastic bottles is

compelling. Glass is heavy and a lot of carbon based fuel is burned to move it around. By

putting wine in a box a much smaller carbon footprint is created regarding transportation.

(McIntyre, 2009)

Winemaking is a complex undertaking, part science, part art and all business.

Winemakers striving to be greener must balance a number of interests. Although demand for


sustainable wine is increasing, green practices wouldn't take root in the industry if they were to

compromise quality. But one needn't overcomplicate something so enjoyable. When in doubt,

take the advice of American wine legend Robert Mondavi, "Instead of relying totally on critics,

drink what you like and like what you drink."

Some wine producers are thinking beyond the wine making process, and are going green

when it comes to packaging. Packaging like kegs, cans and pouches, as well as Tetra Pak

cartons (made primarily from paper), which have previously only been associated with other

beverages, are making their way into the wine industry. Many wineries are also switching to

lighter-weight wine bottles as less glass means less energy, shipping weight and materials to

recycle. Aside from the philosophical reasons for going green, wineries can also save money—

always a strong incentive. For instance, when Sonoma’s Rodney Strong installed more than

80,000 square feet of solar panels in 2003, the winery—which produces about 800,000 cases of

wine per year—cut its electricity bill by more than 40 percent. (Caputo, 2007)

The bottom line is consumers are comparing not only products and how eco-friendly they

are, they are evaluating the companies that make them and whether their production processes

and business practices are eco-friendly and sustainable. There's no denying it -- green is in, and

a brand that uses eco in marketing stands to gain more competitive ground than its less eco-

friendly counterparts. An increasing number of consumers prefer to purchase eco-friendly

products, claiming that they will only do business with a brand that embraces environmentally

friendly practices. (Bemporad & Baranowski, 2007)

This is just the tip of the iceberg, especially as curiosity in eco-friendly lifestyles

continues to grow. No matter which type of socially conscious consumers marketers are

targeting, understanding what motivates them and delivering marketing that is key to inspiring


their ongoing pursuit of sustainable products, consumption habits and lifestyles. (Solomon,

2013)

Green marketing isn't just a catchphrase; it's a marketing strategy that can acquire more

customers and make more money. But only if done properly. For green marketing to be

effective, a brand needs to be genuine, educate, and give consumers the opportunity to

participate. Being genuine actually doing what is claimed in a green marketing campaign and

that the rest of the company’s business policies are consistent with whatever being done that's

environmentally friendly. Both these conditions have to be met to establish the kind of

environmental credentials that will allow a green marketing campaign to succeed. (Bemporad &

Baranowski, 2007) Conscious consumers insist that companies reliably and accurately detail

product features and benefits. They will reward companies that are honest about processes and

practices, authentic about products and accountable for their impact on the environment and

larger society. (Rundh, 2013) Making unsubstantiated green claims or over promising benefits

risks breeding cynicism and distrust.

Educating consumers isn't just a matter of letting people know a company is doing

whatever they’re doing to protect the environment, but also a matter of letting them know why it

matters. Otherwise, for a significant portion of a target market, it's a case of "So what?" and the

green marketing campaign goes nowhere. (Martin & Morich, 2011) These consumers want to

do what’s easy, what’s essential for getting by and make decisions that fit their lifestyles and

budget.

Giving consumers the opportunity to participate means personalizing the benefits of

environmentally friendly actions, normally by letting the customer take part in positive

environmental action. They are looking for standards and safeguards to ensure the quality of the


products they consume. (Bemporad & Baranowski, 2007) These consumers want more

meaningful relationships with the brands in their lives. They seek out opportunities to support

the local economy when given the chance, want to know the source of the products they buy and

desire more personal interactions when doing business. (Neese & Favia, 2013)

Trust matters. At a time of extreme clutter (messages, labels, products), conscious

consumers are prizing transparency, accountability and authenticity more than ever. They are

looking for deeper, more meaningful relationships – a chance to participate in brands and be

empowered by them. (Martin & Morich, 2011) Companies who align their values with their

actions will earn enduring loyalty among conscious consumers.

Smart marketers will meet conscious consumers where they are. They will help

companies back their eco-friendly promises with sincere socially responsible actions. They will

empower consumers to become brand ambassadors. (Solomon, 2013) They will share

knowledge across communications platforms, and increasingly, they will see marketing’s power

to enable deeper, more meaningful and mutually beneficial relationships.

Marketers should also communicate to the target audience that buying green products can

have a significant impact on the welfare of the environment. Marketers should persuade

consumers that environmental protection is not the sole responsibility of business and that each

individual can also make a difference. Marketers should regularly provide feedback to show

consumers that they are making a difference.

Marketing’s next frontier will move beyond transactions to embrace connections and

collaboration, as trust, transparency and purpose become the new currency of corporate

reputation.


References

Bemporad, R., & Baranowski, M. (2007). Conscious consumers are changing the rules of

marketing. Are you ready? New York: BBMG.

Caputo, T. (2007, November 26). Established wineries going 'green'. Retrieved from Wines &

Vines: http://www.winesandvines.com/template.cfm?section=news&content=51507

Henley, C., Fowler, D., Yuan, J., Stout, B., & Goh, B. (2011). Label design: impact on

millenials' perceptions of wine. International Journal of Wine Business Research, Vol.

23, No. 1, pp. 7-20.

Laroche, M., Bergeron, J., & Barbaro-Forleo, G. (2001). Targeting consumers who are willing to

pay more for environmentally friendly products. Journal of Consumer Marketing, Vol.

18, No. 6, pp. 503-520.

Martin, N., & Morich, K. (2011). Unconscious mental processes in consumer choice: toward a

new model of consumer behavior. Journal of Brand Management, Vol. 18, No. 7, pp.

483-505.

McIntyre, D. (2009, November 4). More wineries focus on going green. Retrieved from The

Washington Post:

http://www.washingtonpost.com/wp-dyn/content/article/2009/11/03/AR2009110300524.

html

Neese, W., & Favia, M. (2013). The impact of an environmentally friendly advertising claim on

purchase intentions. Marketing Management Journal, Spring, pp. 14-30.

Rundh, B. (2013). Linking packaging to marketing: how packaging is influencing marketing

strategy. British Food Journal, Vol. 115, No. 11, pp. 1547-1563.

Solomon, M. (2013). Consumer behavior: Buying, having and being (10th ed.). Upper Saddle

River: Pearson Education, Inc.

IMC 612 How the Green Wine Industry Influences Consumer Behavior

Marketing

Transcript of IMC 612 How the Green Wine Industry Influences Consumer Behavior