Green Marketing -A case study of British Airways By Daniel Szuster

A Master Thesis in Culture, Communication and Glo alisation at Aal org !ni"ersity #anuary $%%&

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Title( Green Marketing, a case study of British Airways

Signs( '))*'&& Su+er"isor( #ohn ,ird

----------------Daniel Szuster

Ta le of Contents -ntroduction**************************************************************************. Methodology************************************************************************/

The Meaning of Green**********************************************************************************************************************& -ntroduction************************************************************************************************************************************'% Theoretical 0ramework******************************************************************************************************************'' Background -nformation****************************************************************************************************************')

Theoretical 0ramework******************************************************'1
Green Marketing*****************************************************************************************************************************'. 2n"ironmental management*******************************************************************************************************'. 3hy green marketing4***************************************************************************************************************'/ Marketing defined and cor+orate social res+onsi ility***************************************************************$$ 3hat is Green Marketing4**********************************************************************************************************$. Green marketing strategies*********************************************************************************************************$& -m+lications for organisations****************************************************************************************************)% Green Consumerism***********************************************************************************************************************)1 Consumer eha"iour research****************************************************************************************************). The green consumer*******************************************************************************************************************)& The green uying +rocess***********************************************************************************************************1' -nfluences on +urchase and consum+tion decisions*******************************************************************1/ Glo al 3arming and the -m+acts of Climate Change********************************************************************15 ,uman caused glo al warming**************************************************************************************************15 The im+acts of climate change ************************************************************************************************.% The o++osition to human caused glo al warming *********************************************************************.$

Background -nformation****************************************************.)
British Airways*******************************************************************************************************************************.1 6ast and +resent *************************************************************************************************************************.1 Car on 7ffsetting***********************************************************************************************************************.. Datamonitor8s S37T analysis **************************************************************************************************.& The British Green Consumers********************************************************************************************************.5 6erce+tion and Attitudes in 9elation to the 2n"ironment *********************************************************.5 -nformation on the en"ironment*************************************************************************************************:$ Solutions to en"ironmental +ro lems*****************************************************************************************:.

S37T Analysis*****************************************************************:/
Strengths*****************************************************************************************************************************************:& 3eaknesses*************************************************************************************************************************************/' 7++ortunities *********************************************************************************************************************************/) Threats********************************************************************************************************************************************/.

Conclusion**************************************************************************/: ;ist of ;iterature****************************************************************/& ;ist of 3e sites *****************************************************************&%

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Summary****************************************************************************&' A++endi<****************************************************************************&$

-ntroduction
=During humankind8s recorded history, e<tensi"e and so+histicated consum+tion systems ha"e e"ol"ed to meet the needs of the earth8s human +o+ulation >?@ But with world +o+ulation now estimated at a++ro<imately :*% illion and e<+ected to surge to etween /*/ illion and ''*$ illion y the year $%.% A9o inson '55&(/B, the damage inflicted ecosystems has ecome a world-class issue*C A0uller '555('B -ndeed, human consum+tion +atterns are now eyond the 2arth8s a ility to sustain itself and the contem+orary state of our +lanet8s ecosystems has ecome a highlighted issue with su Dects such as climate change and glo al warming well u+ on the current +olitical agendas around the world reflecting a rising +u lic concern and awareness towards en"ironmental +ro lems* A3agner $%%)('B Assessment re+orts conducted y the -ntergo"ernmental 6anel on Climate Change A-6CCB argue that the main reason for glo al warming is human-caused emissions of greenhouse gases +rimarily through urning of fossil fuels* This conclusion im+lies that the solution to glo al warming, and the almost doomsday-like +redictions connected with a warmer future, is a worldwide reduction of these emissions, mainly through reducing industrial emissions* This +articular hy+othesis seems to ha"e gained much ground o"er the recent years, +artly due to e<tensi"e media co"erage, e"en though some scientists, including 0rederick Seitz' and 3illiam M* Grey$, claim that human-caused emissions of greenhouse gases ha"e little or no effect on climate change and glo al warming* Ee"ertheless, the increased attention to the hy+othesis of human-caused glo al warming is now more than e"er affecting the way in which many +eo+le consume and thus how many usinesses do usiness* A3agner $%%)('B 2n"ironmental issues ha"e therefore ecome im+ortant as+ects of conduct for many cor+orations worldwide and marketers are increasingly eginning to Fuestion if it is right to market goods or ser"ices that are likely to harm the +lanet or if marketing should concentrate on +roducts that are en"ironmentally friendly instead4 9esearch has shown that it can e eneficial for com+anies to incor+orate this line of thought into usiness +lans, as this seems to e an o+en gateway for gaining
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y consum+tion on the earth8s

0ormer solid-state +hysicist and former +resident of the Eational Academy of Sciences* 6rofessor of Atmos+heric Science, Colorado State !ni"ersity*

goodwill among consumers, esides the fact that many +eo+le are ready to switch rands to greener +roducts, although cost may e a factor in choosing as well* A9anchhod $%%/('')B 7ne area of high concern, in connection with emissions of greenhouse gases, is the a"iation industry* Today, the a"iation industry contri utes a out )*. +ercent of car on emissions, ut air tra"el is growing at some . +ercent a year, meaning num ers of air kilometres will tri+le y $%)%* Therefore, the -6CC has concluded that within .% years air tra"el will ecome one of the largest contri utors to glo al warming*) Growing num ers of en"ironmentalists, such as 0riends of the 2arth, are therefore cam+aigning to sto+ or at least reduce air tra"el* 2"en though a total oycott of air tra"el is hard to imagine, on the asis of contem+orary society8s a++arent need for this form of trans+ortation, a +artial oycott could +ro"e de"astating for many airlines across the world* So how do airlines sell their +roduct in a continuously greener market4 9GD udgets on fuel efficiency and high-tech +lanes ha"e increased1, ut the results stand no chance of reducing car on emission com+ared with the +redicted increase in air tra"el* Therefore, it seems to e left to the conscience or needs of the consumer* British Airways was the first airline to initiate a +ossi le way of attracting consumers with a need for air tra"el and a guilty green conscience through introducing car on offsetting* The idea is Fuite sim+le, and demands a "ery limited amount of man-hours from British Airways* Basically customers are gi"en the o+tion of calculating the amount of car on emissions they +ersonally are res+onsi le for on a s+ecific flight* This is done y di"iding the total fuel used on the Dourney y the num er of +assengers on oard* Thereafter, this amount of car on emission is translated into an amount of money consumers +ay to the en"ironmental organisation Climate Care, which then handles the distri ution of the o tained funds to com at air +ollution* This leads to the research Fuestion of this thesis(

To what e<tent is it +ossi le for British Airways to attract costumers within the !*H* through the en"ironmentally friendly initiati"e of car on offsetting4
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-6CC re+ort, CA"iation and the Glo al Atmos+hereC, '555 Sustaina le A"iation 6rogress 9e+ort $%%:

Methodology

The Meaning of Green

An im+ortant as+ect to clarify in connection with further reading of this thesis is the meaning of green* -n this thesis this terminology +rimarily refers to Ien"ironmentally friendly8, ut for many consumers, the word Igreen8 may suggest a range of different emotions and understandings* McDonagh A'551B e<amined what Igreen8 means without the conte<t of ad"ertising, and concluded that for different +eo+le Igreen8 will relate to one or more of the following com+onents( 2cological 6olitical Cor+orate and social res+onsi ility 0air Trade Conser"ation Eot for +rofit 2co-conscious consumers Sustaina ility 2Fuality ,umanitarian

McDonagh8s e<amination illustrates the numerous meanings of Igreen8 for indi"iduals, de+ending on their range of e<+erience and +erce+tion* The main issue here, howe"er, is the merging of social concerns with ecological concerns* A9anchhod $%%/( '':B =The attem+ts eing made to de"elo+ a marketing res+onse to the green challenge has caused a great deal of contro"ersy and some confusion* This is +erha+s not sur+rising since key conce+ts such as Igreen8, Ien"ironment8, Isustaina le8 and Imarketing8 mean different things to different +eo+le*C A6eattie '55.( $.B -n this thesis, terms such as green marketing, sustaina le marketing, en"ironmental marketing, and en"ironmental management will e met* The first three terms, greenJsustaina leJen"ironmental marketing, are three different ways of terming the same su Dect, which is how com+anies can take

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care of the customer8s interest and demand for their +roducts or ser"ices while acting in a res+onsi le manner regarding its effects on the social and natural en"ironment* Throughout this thesis - will use the term green marketing to co"er this su Dect, though in Fuotations the terminology use y the different authors will a++ear* 2n"ironmental management can e seen as an o"erall conce+t co"ering social, +olitical and economical acti"ities within the ecological frame of the +lanet* After ha"ing clarified the asis terminology - will now egin an e<+lanation of the work method use in this thesis, and will do so y commenting on each of the cha+ters of this thesis in a chronological order*

-ntroduction
This thesis egins with an introduction, which highlights the ackground for +osing the research Fuestion for this thesis* This ackground in"ol"es the heightened attention, in western society towards en"ironmental issues, es+ecially climate change and glo al warming and the way the usiness world reacts to these issues* -n the eginning of the +rocess of writing this thesis, my idea for the research Fuestion was to find out how com+anies, which are +ercei"ed to ha"e a maDor negati"e im+act on en"ironmental issues, com at an increasingly green +u lic* - soon found out that the a"iation industry is one of the most feared industries in connection with en"ironmental issues, and therefore decided that it would e interesting to ha"e a closer look at this +articular industry* also found out that British Airways was the first airline com+any to introduce the en"ironmentally friendlyJgreen initiati"e of car on offsetting, where customers can offset their car on emissions on flights y +aying a +rice +remium, which then is distri uted to com at en"ironmental issues regarding the climate through the en"ironmental organisation Climate Care* Therefore, the research Fuestion ecameK to what e<tent is it +ossi le for British Airways to attract customers within the !H through the en"ironmentally friendly initiati"e of car on offsetting4 To answer this Fuestion this thesis egins with the theoretical framework*

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Theoretical 0ramework
The theoretical framework for this thesis is di"ided into three sections, which will now commented on in chronological order* 0irstly, green marketing theory is descri ed with em+hasis on su Dects rele"ant for the research Fuestion* -n the eginning of this section green marketing8s ackground, namely en"ironmental management, is descri ed riefly to e<+lain where the idea of green marketing came from* The ne<t +art deals with the Fuestion of why green marketing is a su Dect in contem+orary society* To descri e this, green marketing theory, e<+lained information throughout this thesis, su++lemented y 6eattie A'55.B, 0uller A'555B and 7ttman y 9anchhod and Gurau A$%%/B, as well as A'55&B, is used* These three green marketing theorists are also the main sources for theoretical 2lkington and ,ailes A'5&5B* - am not to say that other authors of green marketing theory are of lesser academic "alue in connection with writing this thesis, ut the ones chosen are the most rele"ant authors a"aila le through Danish li raries* The ne<t +art under green marketing deals with defining marketing and cor+orate social res+onsi ility* The reason why this is descri ed is that green marketing is a +art of cor+orate social res+onsi ility, with focus on the en"ironmental res+onsi ility, and therefore com+lements the ackground for green marketing while it also gi"es further e<+lanation to why cor+orations ha"e a res+onsi ility towards the en"ironment* After ha"ing esta lished the ackground of green marketing and why green marketing is a su Dect in contem+orary society, the ne<t +art defines what green marketing is* After this is esta lished green marketing strategies are descri ed with em+hasis on su Dects rele"ant for this thesis* This +art also includes a com+arison of green marketing strategies in connection with British Airways8 green initiati"e of car on offsetting* The last +art under green marketing deals with im+lications for organisations* This +art is included to gi"e a etter +icture of why green marketing is im+ortant for cor+orations, with focus on negati"e as well as +ositi"e elements* Secondly, the theoretical framework deals with green consumerism theory* The reason for di"iding green marketing theory and green consumerism theory is +urely to gi"e a etter o"er"iew of the theoretical framework, as these two su Dects are strongly related* The first +art of green consumerism section deals with consumer eha"iour research* The reason for including this +art is e

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to gi"e an e<+lanation of which consumer eha"iour research a++roaches that will e use in this thesis* The ne<t +art concerns green consumer theory* -n this +art it soon ecomes clear that it is difficult to define who green consumers are, as the degree of en"ironmental concern "aries a great deal among consumers, ut this section does gi"e a usa le o"er"iew of attem+ts to define green consumers* Because it is difficult to define green consumers, the ne<t +art of green consumerism theory deals with the uying +rocess, as this thesis argues that the uying +rocess is the most clear way of identifying green consumer eha"iour* The third and last section under the theoretical framework regards the theory of glo al warming and the im+acts of climate change* - felt it was necessary to include this section to clarify what the e<act sco+e of en"ironmental issues affecting British Airways include* After ha"ing e<+lained the rele"ant theory for this thesis, it is now time to take a closer look at the ackground information needed to draw a conclusion to this thesis*

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Background -nformation
The first section under ackground information deals with British Airways8 history, which is descri ed "ery riefly as this is not the most rele"ant information in connection with the research Fuestion for this thesis* Still, it gi"es a good reason to why it is interesting to ha"e British Airways as a su Dect for this thesis as well as gi"es further information a out car on offsetting* The ne<t +art deals with Datamonitor8s S37T analysis of British Airways* The S37T analysis carried out y Datamonitor, a usiness information com+any, is the main reason this thesis takes on the form it does, meaning that all information gathered in this thesis is +ut together into a S37T analysis of my own, ecause - found it interesting that e"en though British Airways are clearly focusing much attention towards en"ironmental issues, these are not included into Datamonitor8s analysis* Therefore - found it oth challenging ut also interesting to do a S37T analysis concerning the green initiati"e of car on offsetting* But efore the S37T analysis is +ut together, information a out the British green consumers is needed* That is why the ne<t section deals with this su Dect* -nformation gathered in this +art is +ut together from secondary sources, which includes sur"ey conducted y 2uro arometer, The British De+artment for 2n"ironment 0ood and 9ural Affairs ADefraB and Mintel* 2uro arometer8s sur"ey was conducted in Eo"em er $%%1 and +u lished in A+ril $%%.* 2"en though this is the oldest of the sur"eys used in this thesis, the findings are "ery rele"ant to draw a conclusion to this thesis, and therefore it is included* Defra8s sur"ey is from August $%%/, and Mintel8s sur"ey was conducted in March $%%/* Because of the e<tensi"eness of 2uro arometer8s sur"ey - ha"e chosen not to enclose this re+ort, ut it can e "iew in full at this we address( htt+(JJec*euro+a*euJen"ironmentJ arometerJ+dfJre+ortLe en"L$%%.L%1L$$Len*+df* The ne<t cha+ter in this thesis is the S37T analysis* A S37T analysis is a tool used to identifyK strengths, weaknesses, o++ortunities, and threats, in a gi"en conte<t* The conte<t for this thesis8 S37T analysis is British Airways8 green initiati"e of car on offsetting* Therefore, all information gathered throughout this thesis is +ut together into statements concerning to four a o"e mentioned areas* After this is done an e<+lanation for each statement is gi"en* ;astly, this thesis draws a conclusion to the research Fuestion on the throughout this thesis* asis of the findings

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Theoretical 0ramework

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Green Marketing
Before e<amining the field of green marketing, this cha+ter will egin with a rief o"er"iew of en"ironmental management, and in that connection natural resource management, as these make u+ the ackground of green marketing*

2n"ironmental management
=0rom +rehistory humankind ha"e accumulated en"ironmental know-how and de"elo+ed strategies for e<+loiting nature* To hel+ regulate resource use +eo+le e"ol"ed ta oos, su+erstitions and common rights, formulated laws to im+ro"e stewardshi+, and e"en undertook national resource in"entories Asuch as the twelfth-century AD Domesday sur"eyB* 3hile some managed to sustain reasona le lifestyles for long +eriods, the idea that +re-modern +eo+le Iclose to nature8 caused little en"ironmental damage is largely an arcadian myth* -ndeed, with +o+ulation a fraction of today8s, +rehistoric +eo+le, using fire and wea+ons of flint, one, wood and leather, managed to alter the "egetation of most continents and +ro a ly to wi+e out many s+ecies of large mammals*C ATudge '55. in Barrow '555( $B By the late twentieth century the need for structured en"ironmental management ecame e"ident ecause of glo al +ollution, loss of iodi"ersity, soil degradation, and ur an growth* These de"elo+ments are not easily tangi le e"en though ad"ances ha"e een made in understanding the structure and functions of the en"ironment, in monitoring im+acts, data handling and analysis, modelling, assessment, and +lanning* Basically, en"ironmental management aims to co-ordinate and focus such de"elo+ments, to im+ro"e human well- eing, and lessen or +re"ent further damage to the 2arth and its organisms* ABarrow '555( $B 2"en though the need for en"ironmental management was not a++arent efore the late twentieth century, the realisation of unsustaina le human consum+tion can e traced as far ack as the '&)%8s, e<+ressed in natural resource management, though limited efforts were made to ensure natural resource e<+loitation was integrated with social and economic de"elo+ment efore the '5/%8s*

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The shift away from natural resource management towards en"ironmental management egan after the Second 3orld 3ar as awareness of en"ironmental +ro lems grew* -t increasingly ecame e"ident that it was no longer sufficient to e concerned with s+ecific com+onents of the 2arth which ha"e utility and can e e<+loited, mainly for short-term gain and the enefit of s+ecial-interest grou+s, com+anies or go"ernments, rather a more holistic a++roach was needed* ABarrow '555( $B Barrow further argues, in his ook 2n"ironmental Management( 6rinci+les and 6ractice '555, thatK =natural resource management res+onses to +ro lems tend to e reacti"e, and often rely on Fuickfi< technological means and +roDect- y-+roDect a++roach* Eatural resource managers ha"e often een drawn from a limited range of disci+lines, ty+ically with little sociological and limited en"ironmental e<+ertise* Their management can e authoritarian and may fail to in"ol"e the +u licK they also tend to miss off-site and delayed im+acts* Because of these failings natural resource management has lost ground to en"ironmental management in the last 1% years or so*C 3ilson and Bryant A'55/( /B define en"ironmental management as =a multi-layered +rocess associated with the interaction of state and non-state en"ironmental managers with the en"ironment and with each other* 2n"ironmental managers are those whose li"elihood is +rimarily de+endent on the a++lication of skill in the acti"e and self-conscious, direct or indirect, mani+ulation of the en"ironment with the aim of enhancing +redicta ility in a conte<t of social and en"ironmental uncertainty*C As uncertainty is growing +redicta ility has ecome "ital for com+anies* Green marketing can therefore function as a tool to fulfil the demand of a com+any8s customers in a res+onsi le manner to sustain, in a long term, the future of the com+any* A6orsteinsson $%%%( ).B Before the focus is turned towards defining what green marketing is, an e<+lanation of why green marketing is a su Dect in contem+orary society will e gi"en*

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3hy green marketing4

2n"ironmental +ro lems, and the reasons ehind them, ha"e tended to di"ide +eo+le into +essimists or o+timists* =6essimists and fatalists may conclude that there is little left to do ut enDoy what is left, efore it is gone for e"er* 7+timists may +refer to concentrate on the many "ast and uns+oilt areas of the natural world, and the a++arent ro ustness of natural systems >?@ and to conclude that nature, +erha+s aided y technological inno"ations, will +re"ail and that the +lanet will reco"er*C A6eattie '55.( $%B According to 6eattie A'55.( $%B, a fundamental +ro lem occurs if +eo+le ado+t either one of these +ositions* This +ro lem can e illustrated through an anecdote y the German +hysicist and +hiloso+her Carl 0riedrich "on 3eizsacker* 3hen 3eizsacker was asked if he was o+timistic or +essimistic a out the +ros+ects for achie"ing sustaina ility, he re+lied( =- like to res+ond to that Fuestion with the story of the three frogs that fell into the milk( an o+timist, a +essimist and a realist* The o+timist and the +essimist oth drowned, the first ecause he didn8t do anything, thinking e"erything would turn out for the est anyway, the latter ecause he thought the situation was ho+eless* The realist said( IAll a frog can do is thrash a out*8 So he did* And suddenly there was utter under his feet and he clim ed out*C A6eattie '55.( $%B 2"en though this anecdote illustrates a sound +oint, Ithrashing a out8 will most likely not e sufficient for humankind in relation to en"ironmental +ro lems* Therefore, a +aradigm shift in usiness thinking to reconcile usiness and the en"ironment has een called for* ACommoner '55% in 6eattie '55.( $%B Manarella and ;e"ine A'55$B identified Imass industry8 mentality as the dominant usiness

+aradigm of contem+orary western society* 6eattie A'55.( $%B descri es this +aradigm as, =Eewtonian in the sense that it attem+ts to understand the world in mechanistic and reductionalist terms* -t is also technocentric in its em+hasis on the a ility of technology to control and harness nature, econocentric in its insistence on using monetary "alues as the acti"ities*C asis of decisions and anthro+ocentric in seeing the en"ironment as something which e<ists to su++ort humankind8s

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Shifting +aradigms towards sustaina ility will e a challenge similar to a s+acecraft a++roaching reentry into earth8s atmos+here* -f the change of course does not create a sufficient Iangle of attack8 into the atmos+here, the s+acecraft will skim off the magnetic field and e lost in s+ace fore"er* 7n the other hand, y changing the course too suddenly, the angle of attack will ecome too stee+, and the s+acecraft will Fuickly urn u+ during re-entry* A6eattie '55.( $'-$$B Therefore, it is im+ortant that the first +aradigm shift is introduced gradually* 6eattie A'55.B de"elo+ed the following ta le to chart the +otential e"olution of the dominant socio-economic +aradigm in reference to the en"ironment*

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Pre-industrial Nature
Goddess and guide, a undant ut threatening ;ocal, intrinsic to +eo+le8s lifestyle, sustained

Industrial
0or e<+loitation and to e su dued An infinite free good, and an Ie<ternality8, gradually liFuidated ,igh ca+ital and energy, large scale and com+le< Growth and +rofit, elief in Itrickledown8, em+hasis on ownershi+ Class structure focus, more nationalistic, sha+ed y marketing

Environmental
0or efficient use and conser"ation A finite resource to e managed and shared, a man-made threat ,igh-tech, clean-tech* often Fuick-fi< Sustaina le growth, new measures, concern for IThe Commons8

Ecological
The 2arth as Gaia

Environment

2m+hasis on the ios+here

Technology

Traditional, small and sim+le, low energy Based on en"ironment, social relationshi+s, and sur"i"al

Small scale, low energy Sustaina ility, steady-state, +ostHeynesian

Economics

Society

Traditional, feudal, religious, local

Eew Age, +rofessional and middle-class "alues, more international ;i eral, +ostconsumer, humanist, +eo+le as citizens, elief in inno"ationJinter"ention A target for reform and constraint, also +artners in eco-reforms 0ragmented markets, res+onding to green consumerism

Decentralised, democratic and glo al 2co-centric, +osthumanist, return to socio-eco-sym iosis

Social Perspective

6eo+le as su Dects, and social grou+ mem ers, elief in di"ine will and nature8s +ower Trading of sur+luses, craftsmanshi+

6eo+le as workers, consumers and indi"idualsK elief in human +ower G industry Mass +roduction, free enter+rise, a social role model Mass +roduct marketing, increasingly formalised and wides+read

Business

Closed loo+, humane, "aluedri"en Constrained y society4, em+hasis on needs

Marketing

-nformal, face-toface, constrained y church and society

According to 0uller A'555( .B sustaina le marketing re+resents a shift in +aradigm and he refers to the new +aradigm of Isustaina le marketing8* ,e claims that the sustaina le marketing system can e com+ared with a circular natural ecosystem in which +lants and organisms consume minerals,

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water, sunlight, and each other in interde+endent +rocesses that continually +roduce waste, which then ecomes food or fuel for other circles* ,owe"er, ecause of large +o+ulation increases, resources ha"e ecome more limited and waste sinks ha"e ecome sources of +ollution threatening the long-term human sur"i"al* Accordingly, sustaina le marketing ado+ts a circular Izero-waste, zero-discharge8 a++roach* 6re"enting waste and reco"ering and reusing materials to reduce ecocosts are crucial goals* A0uller '555( .B Their ada+tation suggests recognition of fi"e fundamental tenets( '* 2cosystems are a +hysical limiting factor on marketing decisions $* The +roduct system life cycle is the a++ro+riate decision framework )* 6ollution +re"ention and resource reco"ery are a++ro+riate strategies for achie"ing sustaina ility 1* A =multi+lier effectC e<ists in which small en"ironmental im+ro"ements Ai*e*, eco-cost sa"ingsB y firms and customers at the micro le"el translate into large a solute im+ro"ements at the macro le"el .* Sustaina le marketing is not an e<ercise in cor+orate altruism A0uller '555( .-:B The sustaina le marketing +aradigm is more or less in line with what 6eattie identified as the en"ironmental +aradigm* 7ttman A'55&( 1/B claims that, =a new +aradigm is now in the making* Basic assum+tions a out how est to cater to consumer need are in Fuestion >?@ Mesterday8s resource intensi"e +roducts are eing re+laced y inno"ati"e +roducts with radical new designs >?@ The cor+orations that e<cel at green marketing are those that are +ro-acti"e in nature*C 7ttman8s com+arison to traditional marketing is outlined in the following ta le*

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The New Green Marketing Paradigm Issues onsumers Products onventional marketing
Consumers with lifestyles Cradle-to-gra"e 7ne-size-fit-all +roducts

Green marketing
,uman eings with li"es Cradle-to-cradle 0le<i le Ser"ices 2ducation Nalues 6ro-acti"e -nterde+endent Co-o+erati"e ,olistic ;ong term oriented Dou le ottom line

Marketing and communication orporate

Selling oriented 2nd enefits 9eacti"e -nde+endent de+artmentalised Short term oriented 6rofit ma<imising

7ttman8s definition of the new green marketing +aradigm is also "ery much in line with the en"ironmental +aradigm descri ed y 6eattie* 9adical en"ironmentalists would most likely claim that taking ste+s towards an en"ironmental or green marketing +aradigm is not nearly enough* Still, as mentioned earlier, a shift in +aradigm must occur gradually or else we might risk either skimming off the earth8s magnetic field and e lost in s+ace fore"er or come in too stee+ and urn u+*

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Marketing defined and cor+orate social res+onsi ility

According to 6eattie A'55.( $/B the origins of marketing are +ragmatic and o"er time what is meant y =marketingC has continually e"ol"ed* =During the I+roduction era8 the ty+ified industrial usiness until the '5)%s, Imarketing8 generally related to a set of +ost-+roduction acti"ities* During the su seFuent Iselling era8 these marketing acti"ities grew in im+ortance, and were increasingly su++lemented y +re-+roduction acti"ities such as market research* -t was not until the late '5.%s that marketing e"ol"ed into a distincti"e management +hiloso+hy and disci+line which e<+licitly linked usiness success to customer satisfaction and systematically set a out achie"ing them as interde+endent goals*C A6eattie '55.($/B A contem+orary definition of marketing defined y Hotler A'55/( 5B is as following( =Marketing is a social and managerial +rocess y which indi"iduals and grou+s o tain what they need and want through creating, offering, and e<changing +roducts of "alue with others*C The link etween marketing and cor+orate social res+onsi ility is well illustrated in the following* =-n +re-industrialised society, food, water, clothing, shelter, warmth, light and acti"ities to +ursue were +ro"ided directly from the en"ironment through the efforts of indi"iduals and the social grou+s to which they elonged* Today the "ast maDority of us de+end on usinesses to fulfil all of these and many other needs >?@ This de+endency gi"es usinesses enormous +ower to influence indi"iduals, communities and society as a whole* Through marketing communications, lo ying, +olitical donations and the way in which they organise their cor+orate resources, usinesses can influence the laws, go"ernment, "alues and economic de"elo+ment of a country*C A6eattie '55.( 1$1)B Modern social res+onsi ility egan in the '5$%s when 7li"er Sheldon8s +hiloso+hical "ision of management called for a alance etween technological efficiency and the welfare of society* Sheldon8s theme was +icked u+ y the Dean of the ,ar"ard Business School, 3allace B* Donham, in an address deli"ered at Eorthwestern !ni"ersity in '5$5( =Business started long centuries efore the dawn of history, ut usiness as we now know it is new O new in its roadening sco+e, new in its social significance* Business has not learned how to handle these changes, nor does it recognise the magnitude of its res+onsi ilities for the future of ci"ilisation*C A6eattie '55.( $5B

$$

Almost a century later, the increased e"idence of the en"ironmental damage caused elements among the many definitions of cor+orate social res+onsi ility(

unsustaina le economic growth has "alidated these words* Buchholz A'55'B identified fi"e common

'* Businesses ha"e res+onsi ilities that go eyond the +roduction of goods and ser"ices at a +rofit $* These further res+onsi ilities in"ol"e hel+ing to sol"e im+ortant social +ro lems, es+ecially those that usinesses hel+ed to create )* Businesses are res+onsi le to a roader constituency than their shareholders 1* Businesses ha"e im+acts that go eyond sim+le market-+lace transactions .* Businesses ser"e a wider range of human "alues than can e ca+tured y sole focus on economic "alues ,awken A'55.B claimed that( =Many com+anies today no longer acce+t the ma<im that the usiness of usiness is usiness* Their new +remise is sim+le( Cor+orations ecause they are the dominant institution on the +lanet must sFuarely address the social and en"ironmental +ro lems that afflict humankind*C 0rom these statements it is a++arent that cor+orate social res+onsi ility is needed in contem+orary society, es+ecially when considering that a study showed that of the '%% largest economies in the world, .' were glo al cor+orations, and only 15 were countries* Mitsu ishi was larger than the fourth most +o+ulous nation on 2arth, -ndonesia* General Motors was igger than Denmark, and Toyota igger than Eorway* AAnderson and Ca"anagh '55: in 9anchhod $%%1( &1B Hotler A'55/B stated that( =-n today8s usiness climate, the com+anies must acce+t increased res+onsi ility for the en"ironment*C Accoring to 9o+er Starch 3orldwide, hot social issues such as the en"ironment +ass through three distincti"e +hases( '* An<iety is high, acti"ities are relati"ely low $* 6eo+le ecome more informed a out the issue and acti"ity o"ertakes an<iety )* Acti"ities ecome integrated into +eo+le8s lifestyle A7ttman '55&( 5B

$)

Green consumerism, which will e e<amined in further detail later on, is now more or less in the second +hase, ut according to 9o+er Starch 3orldwide the natural +rogression for a social issue like en"ironmental concern will e to mo"e to the third +hase* 0or that to ha++en, mainstream consumers will need greater access to credi le, actiona le information, technologies and infrastructures that make it easier for them to act in an en"ironmentally res+onsi le way* A7ttman '55&( 5B -t has also een claimed that con"entional mainstream marketing fails to do so and is out, and green marketing is in* A7ttman '55&( 1.B

$1

3hat is Green Marketing4

After ha"ing e<amined the ackground of green marketing and why green marketing is a su Dect in contem+orary society, it is now time to in"estigate what green marketing is* -n a road sense, green marketing is a +re- and +ost-+roduction +hiloso+hy that aims to fulfil the demands and needs of customers and sustain in long term the com+any8s future in a social and en"ironmental res+onsi le manner* Green marketing should not e confused with an attem+t to e<+loit consumers8 en"ironmental concern to +romote com+anies or sell +roducts* 7ttman A'55$B makes the +oint that green marketing issues are Ireal8 issues* -nstead of talking a out consumer needs such as whether clothes are Iwhiter than white8, green marketing means tackling issues which affect the fundamentals of +eo+le8s Fuality of life, and which may e"en +ro"e life threatening* A6eattie '55.( )&B Baker A'55'B suggested that Ireal marketing8 has four essential features( '* Starting with the customer $* A long-run +ers+ecti"e )* 0ull use of all the com+any8s resources 1* -nno"ation -f the third +oint was changed to ecome Ifull and efficient use of all the com+any8s resources8, then there is a strong argument that green marketing is Ireal marketing8* =-n "iew of the almost uni"ersal concern a out the en"ironment eing shown y consumers all around the world and their desire to +urchase greener +roducts from greener com+anies, green marketing could e "iewed as the only Ireal8 marketing*C A6eattie '55.( )&-)5B The conseFuences of falling to incor+orate the +hysical en"ironment into marketing can customers and +oorly rewarded shareholders, e

significant* !ntil now, the worst conseFuence of +oor marketing were generally unsatisfied ut getting marketing wrong in relation to the eyond the customers and shareholders of en"ironment will most likely ha"e im+lications

com+anies to affect the Fuality of life for future generations across the world* A6eattie '55.( )5B

$.

0urthermore, if marketing res+onds with more green hy+e rather than su stantial changes, the conseFuences are +otentially serious and were summarised y the American Ten-State Attorney Generals8 Task 0orce into two key dangers e<+ressed in their re+ort =Green 9e+ortC AEo"em er '55%B( '* -f consumers egin to feel that their genuine interest in the en"ironment is eing e<+loited, and in res+onse re el, they would no longer seek out or demand +roducts that are in fact less damaging to the en"ironment* -f this were to occur, the en"ironmental im+ro"ements that could ha"e een achie"ed would e lost* $* The tone, content and num er of en"ironmental claims lead the +u lic to elie"e that s+ecific en"ironmental +ro lems ha"e een adeFuately addressed and sol"ed* This, in turn, could actually im+ede finding real solutions to identified +ro lems y causing consumers to set aside their en"ironmental concerns, making the assum+tion that these concerns had een addresses* The key elements of green marketing can therefore e summarised into the following ten +oints( '* A alanced a++roach to the social, technological, economic and +hysical as+ects of

usinesses and societies that allows com+anies to ST26. forward* $* An em+hasis on long-term sustaina le Fualitati"e de"elo+ment rather than short-term unsustaina le Fuantitati"e growth* )* A holistic a++roach aimed at re"ersing the reductionalist and fragmented a++roaches of +re"ious usiness theory and +ractice* 1* A consideration of consumers as real human eings rather than as hy+othetical Irational economic8 entities* .* An em+hasis on meeting the genuine needs of consumers, rather than on stimulating su+erficial desires* :* A recognition that consumers and society ha"e multi+le and sometimes conflicting wants and needs* /* A "iew of the com+any and all its acti"ities as +art of the I+roduct8 that is consumed*
.

9efers to the ST26 framework O a alanced "iew of the usiness agenda* =6resents an a++roach to marketing in which the con"entional techno-economic +aradigm is com+lemented y the addition of a socio-en"ironmental +ers+ecti"e*C A6eattie '55.( 5B

$:

&* A recognition that the large-scale, long-distance nature of current economy is not sustaina le, and that in the future small and local will e eautiful* 5* 2m racing the conce+t of eco-+erformance which incor+orates the non-market out+uts of the com+any, the +erformance of the +roduct during and after use and the en"ironmental im+act of com+anies which contri ute to the creation and marketing of the +roducts elsewhere in the su++ly chain* '%* The +ursuit of added socio-en"ironmental "irtue as well as added techno-economic "alue* A6eattie '55.( )5B

$/

Green marketing strategies

After defining the key elements of green marketing it is interesting, in connection with the research Fuestion for this thesis, to in"estigate the theory of green marketing strategies to determine if British Airways are im+lementing the right course of action* 7ttman A'55&( 15B highlight se"en green marketing strategies under the title =#* 7ttman Consulting8s Se"en 3inning Strategies of Green MarketingC* '* Do your homework* !nderstanding the full range of en"ironmental, economic, +olitical, and social issues that affect your consumer and your +roducts and ser"ices now and o"er the long term* $* Create new +roducts and ser"ices that of your +roduct* )* 2m+ower consumers with solutions* ,el+ them understand the issues that affect your usiness as well as the enefits of your en"ironmentally +refera le technology, materials, and designs* 1* 2sta lish credi ility for your marketing efforts* .* Build coalitions with cor+orate en"ironmental stakeholders* :* Communicate your cor+orate commitment and +roDect your "alues* /* Do not Fuit* Continuously stri"e for Izero8 en"ironmental im+act of your +roducts and +rocessesK learn from your mistakes* 3hen com+aring 7ttman8s se"en winning strategies of green marketing with British Airways green marketing initiati"e of car on offsetting many similarities are found* -n connection with the first +oint, British Airways seems to ha"e done their homework on the effects of car on emissions from their air+lanes* 2"idence of this can e found on British Airways home+age where an entire section is de"oted to en"ironmental as+ects of air tra"el* : Mo"ing on to the second and third +oint, British Airways was the first airline to introduce car on offsetting, which therefore was a new somewhat con"enient ser"ice that em+owered consumers with solutions* 0urthermore, it hel+s consumers understand the en"ironmental issues that affect British Airways as well as the enefits of the
:

e a le to

alance consumer8s desires for high Fuality,

con"enience, and afforda le +ricing with minimal en"ironmental im+act o"er the entire life

www* ritishairways*comJtra"elJcsr-cor+orate-res+onsi ilityJ+u licJenLdk

$&

+refera le en"ironmental technology* -n connection with the fourth and fifth +oint, British Airways are esta lishing credi ility for their marketing efforts through coalition with the en"ironmental organisation Climate Care for car on offsetting* The reason for this coalition uilding credi ility can e found in a sur"ey conducted y 2uro arometer in Eo"em er $%%1, which found that when !H citizens were asked whom they trust the most when it comes to en"ironmental issues, the largest +ercentage A): +er centB answered en"ironmental +rotection associations, while com+anies recei"ed % +er cent* -n connection with the si<th +oint, British Airways are communicating their commitment to en"ironmental issues through a"iation industry* This initiati"e oth their we site and their engagement in Sustaina le A"iation which is a com+rehensi"e strategy for the long term sustaina ility of the !H rings together the !H8s leading airlines, air+orts, aeros+ace manufacturers and air na"igation ser"ice +ro"iders* Signatories to the strategy are committed to deli"ering significant reductions in car on dio<ide emissions, nitrogen o<ide emissions and aircraft noise o"er the ne<t '. years*/ The last +oint on 7ttman8s green marketing strategy list referred to continuously stri"ing for Izero8 en"ironmental im+act* This +oint might e difficult for any airline or trans+ort com+any to achie"e gi"en contem+orary technology, ut +artici+ation in Sustaina le A"iation seems to e a ste+ in the right direction*

www*sustaina lea"iation*co*uk

$5

-m+lications for organisations

After ha"ing e<amined the key elements of green marketing and green marketing strategies the focus will now e turned towards the im+lications for organisations such as British Airways* 0or organisations, it is ecoming increasingly im+ortant to incor+orate green thinking into their +rocesses and +roducts, and organisations need to consider how much their acti"ities im+act the +lanet* Any im+ro"ement can +otentially create net en"ironment* A9anchhod and Gurau $%%/( ')1B 0urthermore, in addition to moral o ligation, organisations are also under +ressure from consumers and EG7s, such as Green+eace and 0riends of the 2arth* During the last $% years, organisations ha"e ecome much more sensiti"e to such +ressures due to factors such as the following( The growing economic "alue of a good cor+orate re+utation and a strong, +ositi"ely regarded rand* These can e +ut at risk y ad"erse criticism of en"ironmental and social +erformance* The growing num er of customers who are ecoming more Igreen conscious8, taking social and en"ironmental criteria into account when +urchasing goods or ser"ices* The tremendous flow of information, e<changed at un+recedented le"els, "ia satellite TN stations, such as CEE, and the -nternet* -E the near future, it is likely that information will also e transferred more and more Ion the mo"e8 "ia mo ile communication de"ices such as mo ile +hones and +ersonal digital assistants A6DAsB the interface the -nternet* This flow of information increases the "isi ility of any enter+rise, all o"er the world* 7rganisations are also de+endent on their mem ers of staff who are often more highly educated and en"ironmentally literate than their older counter+arts* A9anchhod and Gurau $%%/( ').B !nfortunately, en"ironmental enefits can e indirect, intangi le, or insignificant to the consumer* 0or e<am+le, in the case of car on offsetting, consumers cannot see the direct conseFuence of their actions* Therefore, it is im+ortant for com+anies, such as British Airways, to communicate their green message efficiently and +ossi ly educate consumers on the enefits of new technology* A7ttman '55&( ''1B A acklash can occur if the green message a++ears insignificant or insincere, enefit for oth the consumer and the

)%

which often in"ites criticism from a num er of stakeholders* 2n"ironmentalists also seek out those they +ercei"e to e Igreenwashers8, meaning organisations that em race a green attitude at a su+erficial le"el and therefore are engaged in Igreenwashing8 the +u lic y cle"er ad"ertising and +u lic relations acti"ity* A9anchhod and Gurau $%%/( ')1B 3hile such challenges e<ist, not communicating one8s en"ironmental oriented initiati"es +resents its own risks* 0or British Airways these can include loosing market share among the growing num er of green consumers on ehalf of a com+etitor with recognised green credentials, or making consumers assume that British Airways are not doing anything to +rotect the natural en"ironment* A7ttman '55&( ''1B Communicating a green message successfully can therefore +ro"e challenging* 7ttman A'55&( ''.B argues that en"ironmentally oriented communications work est when( Green +roduct attri utes are o "ious, legitimate, and meaningful to a sizea le num er of consumers* A +roduct8s en"ironmental communicated* 6roduct-related efforts are reinforced y su stanti"e cor+orate +rogress* enefits are tangi le and can e clearly and sim+ly

0or a com+any, such as British Airways, whose en"ironmental +erformance is +oor, or +oorly +ercei"ed&, the communications challenge will centre around damage limitation and clarification together with accurate and ra+id communication of any im+ro"ements* A6eattie '55.( $':B -t is further ela orated, y 6eattie, that there are ISe"en Green Cs8 which com+anies need to negotiate successfully when communicating a green message( '* Com+le<ity* 2n"ironmental +ro lems are mostly com+le< in nature and rarely in"ol"e sim+le answers* Consumers are freFuently +oorly informed a out en"ironmental issues e"en though they are interested in en"ironmentally and socially res+onsi le consum+tion*

&

A recent sur"ey carried out y MouGo" found that the British +u lic saw British Airways as the least Green friendly com+any, rand or +roduct*

www*guardian*co*ukJtra"elJ$%%/JmayJ)'Jtra"elnews*green

)'

Schloss erg A'55)aB suggests that the lack of factual en"ironmental information re+resents the Igreatest en"ironmental hazard8* $* Caco+hony* Another +ro lem for marketers is that consumers are currently om arded y information and images a out the en"ironment, which can make it difficult for a com+any8s en"ironmental message to stand out and communicate* 9esearch -nternational, when sur"eying $& countries, concluded that an e<cess of messages a out the en"ironment was leading to information o"erload among customers* )* Credi ility* The content of many green messages lacks credi ility in consumer8s eyes* Mintel8s '55' sur"ey re"ealed that 5% +er cent of !H consumers were highly sce+tical a out green +romotional cam+aigns* ,owe"er much money is set aside for communications, and howe"er well the green messages are designed and e<ecuted, credi ility may not com+any and the en"ironmental issues eing addressed* 1* Confusion* 7ne might ha"e e<+ected the increasing le"el of en"ironmental media co"erage to ha"e +roduced a new generation of more en"ironmentally informed and confident consumers* ,owe"er, research showed that :) +er cent of !H consumers said that they found what com+anies said a out the eco-+erformance of their +roducts Iconfusing8* This is not sur+rising gi"en the information o"erload and conflicting messages from different +arties that consumers are faced with* .* Cynicism* The moti"es of marketers seeking to communicate a green message are also often o+en to dou t* Sur"eys ha"e shown that 1% +er cent of green sho++ers felt that retailers selling Ien"ironmentally friendly8 +roducts were seeking to e<+loit the market rather than to +rotect the en"ironment* :* Co-ordination* -t is unwise for a marketer to make green claims for a +roduct unless they are certain that the en"ironmental credentials of the +roduct, its ingredients, its +ackaging, its manufacturing +rocess and the entire com+any are ehind it* /* Commercial confidence* -n countries such as the !H there is a tradition of secrecy and of using Icommercial confidence8 as a reason for kee+ing hidden much of what goes on within a com+any, including en"ironmental im+acts* This was though change already in '55$ when the 2n"ironmental -nformation 9egulations A2-9sB '55$ was a++ro"ed y oth ,ouses of 6arliament* The 9egulations gi"e a statutory right of access to en"ironmental information held y +u lic authorities and certain other odies* The new 2n"ironmental -nformation e de"elo+ed unless the message is consonant with the target audience8s +erce+tion of the

)$

9egulations $%%1 came into force on ' #anuary $%%.* The 2-9s $%%1 ha"e een u+dated to ring the !H into line with international reFuirements, as laid down in 2C Directi"e $%%)J1J2C on +u lic access to en"ironmental information, and also in the Aarhus Con"ention*5 AAda+ted from 6eattie '55.( $':-$'/B 0urthermore, 6eattie argues that there four key N "aria les in green marketing communications* 0irstly, the "irtue of the +roduct offering in its eco-+erformance* Secondly, the "isi ility of the en"ironmental +erformance and the information relating to it* Thirdly, the "olume of noise which the com+any makes a out its en"ironmental +erformance* 0ourthly, "erification, which refers to the use of inde+endent third +arties to su stantiate en"ironmental claims, can e a "ital wea+on in o"ercoming +ro lems of credi ility and cynicism* A6eattie '55.( $'/B

www*defra*go"*uk

))

Green Consumerism
-f we look u+ the word =consumeC in the Cham ers Dictionary the definition of the word is =to destroy y wasting, fire, e"a+oration, etc*( to use u+, to de"our, to waste or s+end, to e<haust*C A6eattie '55.( /5B This definition is "ery dramatic and does not ha"e many +ositi"e connotations em edded* Still, it seems to e<+licitly descri e what a growing num er of +eo+le, es+ecially in western societies, elie"e we are doing to our +lanet and its resources* 2"idence of this can e found in the heighten awareness towards en"ironmental issues* The concern for the en"ironment and the 2arth8s natural resources is not Dust a contem+orary trend, ut, as mentioned earlier, the degree of concerned +eo+le has ne"er een higher* The term Igreen consumer8 emerged in the late '5&%s to descri e the fact that many consumers were increasingly eing influenced y en"ironmental issues* =The +u lication of The Green Consumer Guide in '5&&, and its su seFuent ada+tation and translation into Chinese, Danish, Dutch, 0innish, German, -talian, #a+anese, Eorwegian, S+anish and Swedish, has enshrined the la el in the consciousness of the +u lic*C A6eattie '55.( /5B Gi"en the definition of the word Iconsume8 it seems a contradiction a++ears in terming +eo+le with en"ironmental concerns as green consumers* Still, this term will e used throughout this thesis since it has ecome something of a glo al standard* Before the attention of this cha+ter is focused on the green consumers a general understanding of consumer eha"iour research is needed for a structure to in"estigate this*

)1

Consumer eha"iour research

A definition of consumer eha"iour, used y Arnould et al* A$%%1( 5B, defines consumer eha"iour as =indi"iduals or grou+s acFuiring, using, and dis+osing of +roducts, ser"ices, ideas, or e<+eriences*C This is a "ery road definition which o+ens u+ a wide range of +ossi ilities for consumer research in general* Consumer eha"iour research can therefore, e a++roached from a "ariety of +ers+ecti"es to understand consumers and consum+tion* !nderstanding consumers and consum+tion can there y, e used to e"aluate the strengths or weaknesses a +roduct or ser"ice might ha"e in a s+ecific market, or descri e what thoughts, feelings and actions consumers connect with a s+ecific +roduct or ser"ice* Consumer research is eFually im+ortant in a num er of different consumer and consum+tion studies* 2<am+les of four a++roaches to consumer eha"iour research will now e descri ed with em+hasis on +ers+ecti"es useful for this thesis* Pstergaard and #antzen A$%%%B argue that o"er the +ast 1% years four main +ers+ecti"es, or ideal ty+es, of consumer eha"iour ha"e een used* These four +ers+ecti"es are descri ed as uyer eha"iour, consumer eha"iour, consumer research, and consum+tion studies* Pstergaard and #antzen stress that e"en though there has een a shift in focus from one a++roach to the other, =the conce+t +ers+ecti"es is used to em+hasise that we do not consider the four ideal ty+es as four +aradigms in a Huhnian sense or as four +eriods* -nstead the four ideal ty+es ha"e co-e<isted during the history of the disci+line, ut they had their heyday in different +eriods*C A main difference which clearly se+arates three +ers+ecti"es from one is that uyer eha"iour, consumer eha"iour and consumer research all ha"e in common that they focus on the indi"idual consumer, whereas consum+tion studies theory claim that =indi"iduals do not know what they need, want or desire >?@ -nstead consumers do know what they do not need, want, or desire* By choosing what they do not want, indi"iduals use +roducts and consum+tion to create a meta+hysical uni"erse where they are looking for recognition from other mem ers of their tri e*C APstergaard et al* $%%%( 5B

).

2"en though the transition to focus the +ers+ecti"e on consum+tion studies occurred lastly, the idea of +roducts carrying a sym olic or social meaning is not new at all* -n '5.5 Sidney #* ;e"y claimed that =+eo+le uy things not only for what they can do, ut also for what they mean*C To further descri e the differences in the four +ers+ecti"es on consumer eha"iour research the following fi"e criteria framework was de"elo+ed y Pstergaard and #antzen A$%%%B(
onsumer !ehaviour Com+uter 2lectronic rational The rain8s wants Questionnaire Cogniti"e +sychology onsumer research Tourist 2motional narcissistic The heart8s desire -n-de+th inter"iews 2<istential +sychology onsumption studies Tri e mem er Meta+hysical sym olic The eye8s recognition 0ieldwork Cultural and social theories

Perspectives The consumer metaphorically "ntology o# consumption haracter o# the su!$ect matter Primary method Scienti#ic #oundation

Buyer !ehaviour Animal Mechanical instinct dri"en The stomach8s needs 2<+eriments Beha"iourist +hysiology

The main +oints which differentiate one research +ers+ecti"e from the other is clearly categorised in this framework* 6rimarily, a noticea le shift occurs in the way the consumer is categorised meta+horically* Starting of y +ercei"ing the consumer as an animal, meaning that consumers only consume to satisfy the most asic needs, to +ercei"ing the consumer as a com+uter, meaning that consumers are in a constant state of rational information +rocessing* This mo"es the su Dect matter from the stomach8s needs to the rain8s wants* These two a++roaches oth ha"e in common that they assume that the single consuming indi"idual is rational* 2<actly this +oint is the main reason why the +ers+ecti"e of consumer research de"iates from the two earlier +ers+ecti"es* According to Pstergaard and #antzen, consumer research does not +ercei"e the indi"idual consumer as rational* -nstead, consumers are assumed to e emotionally and narcissistically determined* =The consuming indi"idual in this case is not an animal seeking to fulfil its needs, or an information +rocessing com+uter trying to ma<imise the relations etween attitude, eliefs, and attri ute* -nstead, the consuming indi"idual is concei"ed as a tourist who is looking for new e<+eriences "ia consum+tion* This is not due to a need for it or due to a need for fulfilling wants to get eyond a cogniti"e dissonance* -nstead, it is ased on a desire for meaning in life,

):

ecause the consuming indi"idual, in this a++roach, uses the consum+tion of +roducts and ser"ices as ricks in the construction of a meaningful life*C APstergaard et al* $%%%( '/B This a++roach is "ery interesting in connection with this thesis, ecause if consumers elie"e that air+lane emission of greenhouse gases are contri uting to glo al warming, they might e attracted to British Airways ecause of the +ossi ility of offsetting car on emissions, which can consum+tion act that constructs a meaningful life* Consum+tion studies rake from the three earlier +ers+ecti"es y not focusing on the indi"idual consumer as an inde+endent self* -nstead, the consumer is now "iewed as a tri e mem er* The meaning of this consumer meta+hor is that the +roduct or ser"ice sym olism dri"es grou+s of consumers to consume s+ecific +roducts so that they can e recognised y other mem ers of their grou+* Consuming s+ecific +roducts for the sym olic meaning can also ena le consumers to show if they do or desire to elong to a s+ecific grou+* An e<am+le of this could e offsetting car on emissions on a British Airways flight to indicate that consumer is a green consumer* As soon as consumers are in"ol"ed or connected with a s+ecific grou+, consumers will automatically distance themsel"es form other grou+s, hence a cultural and social research +ers+ecti"e in consum+tion studies* The su Dect matter there y shifts from the heart8s desire to the eye8s recognition, and is +rimarily studied from a cultural and social +ers+ecti"e* APstergaard et al* $%%%( '&-$$B To find out if British Airways can attract consumers within the !H, through the green initiati"e of offsetting car on emissions, this thesis will mainly focus on the +ers+ecti"es of consum+tion studies and consumer research to descri e and understand the British green consumers, and there y e"aluating if British Airways are im+lementing the right course of action towards these green consumers* e translated into a

)/

The green consumer

To further s+ecify who and what a green consumer is, a definition of green consum+tion is a++ro+riate* =-n res+onse to the en"ironmental concern of the early '5/%s, conce+ts such as 0isk8s A'5/)B theory of Ires+onsi le consum+tion8 and Mead8s A'5/%B conce+t of Ires+onsi le sim+lification8 reflected the concern a out limits to growth with calls for a decrease in consum+tion* At the same time, the social +ressure on usiness was reflected in studies of the Isocially conscious consumer8 AAnderson and Cunningham '5/$B* 2n"ironmental marketing in"ol"es +ro"iding consumers with more sustaina le and socially acce+ta le +roductsK therefore green consum+tion must in"ol"e consuming in a more sustaina le and socially res+onsi le way*C A6eattie '55.( &)B 2"en though green consum+tion, as descri ed y 6eattie a o"e, seems only to incor+orate +ositi"e "alues from an en"ironmental +oint of "iew, there was and is still much de ate a out the role and im+ortance of green consum+tion and green consumerism* Critics argue that green consum+tion is only a way of slowing world degradation, and not a tool to end it* Durning A'55$B argued that( =At its est green consumerism is a +otent new tactic for en"ironmental ad"ocates, allowing them to y+ass the halls of +arliaments and send their message directly to oardrooms* At its worst, green consumerism is a +alliati"e for the conscience of the consumer class, allowing us to continue usiness as usual while feeling like we are doing our +art*C A6eattie '55.( &)B ,owe"er, e"en though the critic a++ear sound it is im+ortant to realise that green consum+tion is only one +art of a greater effort needed to steer industrialised countries towards sustaina ility* 6eattie A'55.B argues that green consum+tion will ha"e an effect only as +art of a wider +rocess of change, ut that wider change +rocess will not e a le to ha++en without the focus on green consum+tion* 2lkington and ,ailes A'5&5( .B define green consumers as +eo+le who in general a"oid +roducts which are likely to( endanger the health of the consumer or of others cause significant damage to the en"ironment during manufacture, use or dis+osal consume a dis+ro+ortionate amount of energy during manufacture, use or dis+osal

)&

cause unnecessary waste, either ecause of o"er+ackaging or ecause of an unduly short useful life use materials deri"ed from threatened s+ecies or from threatened en"ironments in"ol"e the unnecessary use O or cruelty to O animals, whether this e for to<icity testing or for other +ur+oses ad"ersely affect other countries, +articularly in the Third 3orld

Such negati"e discrimination does not only a++ly to s+ecific +roducts, ut also towards entire cor+orations and is "ery interesting to kee+ in mind in connection with the research Fuestion for this thesis, ecause if British Airways are targeting green consumers through the +ossi ility of offsetting car on emissions on a gi"en flight, it +ro a ly would not e "ery affecti"e, according to 2lkington and ,ailes* But negati"e discrimination is again only a +art of the full +icture* =Seeing green consum+tion in terms of +roduct a"oidance only +ro"ides a +artial +icture of the changes that en"ironmental concern is +romoting* 7ther changes include discriminating +ositi"ely in fa"our of rands with a good +ercei"ed en"ironmental image, or changes in the +rice that consumers are willing to +ay for a +roduct with an im+ro"ed eco-+erformance*C A6eattie '55.( &1B Therefore, it is not +ossi le to "iew green consumer eha"iour sim+ly in terms of +urchasing and the choice etween +roducts or ser"ices* =Consumers may res+ond to the green challenge in a wide range of ways other than +urchasing in"ol"ing the way they use, maintain, re+lace and dis+ose of +roducts* Green consumer eha"iour can also include +urchase and consum+tion a"oidance*C A6eattie '55.( &1B ,ence, green consumer eha"iour can e defined as Ithe +urchasing and non+urchasing decisions made y consumers, ased at least +artly on en"ironmental or social criteria8* A6eattie '55.( &1B This is a "ery road definition which could include "irtually all consumers as a '55% sur"ey conducted y 3arwick, Baher and 0iore Associates found that 5: +er cent of consumers claimed to use en"ironmental criteria in their +urchase decisions at least occasionally* A6eattie '55.( &.B Therefore, it can e misleading to try to categorise green consumers as the degree of green concern as well as the en"ironmental issue at hand "aries a great deal among consumers* An e<am+le of this could e a consumer offsetting his or her car on emissions on a British Airways flight, which could e categorised as green in relation to air-tra"el, ut +ercei"ed as grey '% sim+ly ecause of the use of air+lane tra"el* ConseFuently, it might e more tangi le to analyse green
'%

IGrey8 is the term used y 6eattie A'55.B to descri e consumers without en"ironmental concerns

)5

consum+tion in terms of green +urchase decisions than in terms of green consumers* Therefore, the green uying +rocess will now e e<amined*

1%

The green uying +rocess

Traditionally, marketing has focused on the elements of the uying +rocess which lead u+ to the actual +urchase, namely the needs and moti"es of consumers* Green marketing on the other hand reFuires a more alanced "iew of the +urchase and consum+tion +rocess, with much more em+hasis eing +laced u+on +ost-+urchase issues of +roduct use and dis+osal* A6eattie '55.( &.-&:B ,owe"er, in relation to the research Fuestion of this thesis, which solely focuses on the act of getting consumers to uy a British Airways ticket the +ost-+urchase issues are not as rele"ant as the issues leading to the actual +urchase, as consumers are uying a ser"ice and therefore most likely will not directly consider +roduct dis+osal, recycling of waste +ackaging or care and maintenance of a +roduct to make it last longer* Still, green consumers might consider a change in the use of the ser"ice they uy esides considering how British Airways handles +roduct dis+osal, recycling of waste +ackaging or care and maintenance of an air+lane to make it last longer* 0or those reasons +ost-+urchase eha"iour will e e<amined in the following* To etter e<+lain green consumer eha"iour in relation to the uying +rocess, 6eattie A'55.B

+ro+osed the following figure, which illustrate the difference etween the Fuestions consumers with concern for the en"ironment Agreen consumerB would ask in relation to the +ro+osed fi"e ste+ of the uying +rocess com+ared to consumers with no concern for the en"ironment Agrey consumersB*

1'

3hat Grey consumers ask% 3here is my 3hat do want4 list of +rices and features4 3hat are the enefits for me4 shall +urchase4 ,ow soon can - uy one4 Post&ecognition o# a need or want ' ( search #or relevant in#ormation ' purchase Evaluation o# alternatives ' Purchase decision ' use) disposal and evaluation ,ow long can - make it last4 ,ow can est use the old one4 3hen shall - uy one4

Shall Green consumers ask% 3here is my Do - really need it4 Green Consumer Guide'' 3hat are the socioen"ironmental costs4 make a +urchase4 ,ow long can - do without4

The fi"e ste+s of the uying +rocess will now e e<amined further in connection with green consum+tion*

''

9efers to The Green Consumer Guide y 2lkington and ,ailes A'5&5B

1$

The recognition o# a need or want* An a++roaches to e<+lain how needs and wants moti"ate our +urchasing, as well as other eha"iour, is Maslow8s need hierarchy* This theory of human moti"ation s+ecifies that needs are arranged in a seFuence from lower-le"el needs to higher-le"el needs and identifies fi"e needs( '* 6hysiological needsK the iological needs for food, water, and slee+* $* Safety and security needsK shelter, +rotection, and security* )* SocialK affection, friendshi+, and acce+tance* 1* 2goK +restige, success, accom+lishment, and self-esteem* .* Self-actualisationK self-fulfilment and enriching e<+eriences* AArnould et al* $%%1( $/%B ;ower-le"el needs Astarting with the +hysiological needsB are considered to dominate higher-le"el needs, meaning that a consumer must first satisfy lower-le"el needs efore he or she +ursues higherle"el needs* AArnould et al* $%%1( $/%B Maslow8s need hierarchy therefore +ro"ides a useful in"entory of human needs that can e hel+ful for marketers who are interested in understanding their customers8 needs* ,owe"er, marketers should e cautious in assuming that the hierarchy holds in e"ery case as critics of the model argue that it is o"erly sim+listic ecause it ignores the intensity of needs* AArnould et al* $%%1( $/%-$/'B 0urthermore, it is argua le that a single +roduct or ser"ice can address more than one need and therefore more than on le"el of Maslow8s need hierarchy* A6eattie '55.( &:B 6eattie ela orates further on the connection etween the first ste+ in the uying +rocess and green consum+tion* =,eightened awareness a out green issues now e<ists among the +o+ulation as a whole, often as a result of increased media co"erage, ad"ertising or +ressure grou+ acti"ity* A demand for green +roducts may reflect a long-standing interest in en"ironmentalism, a concern for the future generationsK a reDection of the "alues of the consumer society, or sim+ly a willingness to try something different* This ecomes translated into a generic desire to +urchase green +roducts form green com+anies* -t can also e channelled into a desire not to make a +urchase, either in terms of doing without or acti"ely oycotting a +roduct or com+any*C A6eattie '55.( &:B

1)

The search #or relevant in#ormation* =A key element of green consum+tion is a desire for more information a out the relationshi+ etween +roducts and the en"ironment*C A6eattie '55.( &/B Green consumers will often acti"ely +ursue information to o tain this knowledge, howe"er e"en though it has een suggested that 5: +er cent of consumers claimed to use en"ironmental criteria in their +urchase decisions at least occasionally, and therefore can e categorised as green consumers, further e"idence suggests that the +ercentage of consumers which actually understand the arguments and theories connected with en"ironmental issues is much smaller* =!nderstanding the com+le<ity of human-ecological interface reFuires a degree of scientific knowledge, yet sur"eys conducted y the Eational Science 0oundation suggests that, e"en using lenient standards, only a out '' +er cent of citizens understand enough of the "oca ulary and conce+ts of science in general to e considered scientifically literate AEational Science 0oundation '55&B*C A9anchhod $%%/( ')5B This is an im+ortant issue to kee+ in mind when considering a green marketing strategy, ecause if the arguments for consuming a green or greener +roduct ecomes to com+le<, chances are that most consumers will not understand them, let alone e +ersuaded to consume the gi"en +roduct or ser"ice* According to Coyle, the 6resident of the Eational 2n"ironment 2ducation G Training 0oundation AE22T0B( =6eo+le understand that cars +ollute, or that s+ecies ecome e<tinct when ha itat is destroyed* But when there are two or more ste+s in"ol"ed? such as energy +roduction from fossil-fuelled +ower stations contri uting to climate change, there y warming ocean waters sufficiently to inhi it the +roduction of +lankton for fish, thus im+airing the sur"i"al of marine life? +u lic understanding dro+s +reci+itously*C AE22T0J9o+er $%%% in 9anchhod $%%/( ')5B Therefore, it can e argued that it is essential for cor+orations with a green message to ha"e a clear and sim+le cause-and-effect relationshi+ connected with this message*

11

The evaluation o# alternatives* =Marketing theory has tended to assume that where a need is translated into a want and is acked u+ y the +ower to +urchase, then a +urchase will result* Any conflicts inherent in +urchasing are considered in terms of the o++ortunity costs of choosing among different +otential +urchases in the face of limited dis+osa le income* 2"aluating alternati"es is often reduced to selecting etween different +roducts and com+eting rands in search of a +urchase that will yield satisfaction* 0or green consum+tion, there are se"eral le"els of alternati"e +urchase eha"iour*C A6eattie '55.( &/&&B These le"els with relation to the research Fuestion for this thesis will now e descri ed( Eon-+urchase( =The most su "erse act in a consumer society is the refusal to consumeK it is also the safest*C A3all '55% in 6eattie '55.( &&B -n the case of air+lane tra"el it is argua le that an e"aluation of alternati"es for a green consumer could result in a non-+urchase* Se"eral en"ironmentalist grou+s are already ad"ocating a oycott of air-tra"el on the asis of air+lane emissions of greenhouse gases* Alternati"e +roducts( Consumers who are concerned a out the en"ironment might consider a radical shift in +urchases to meet their needs* This could result in alternati"e means of trans+ortation instead of air+lane tra"el, for e<am+le train trans+ort* Another e<am+le could e that usiness +eo+le, who use air+lane tra"el to get to meetings, hold e-meetings instead* Alternati"e rands( =The consumer eha"iour that created the most interest in the early +hase of en"ironmental marketing is the switching of consumer +urchases to Ialternati"e8 green rands* These can sometimes e from s+ecifically green su++liers, or they can e green rands de"elo+ed y con"entional +roducers* A '55' Mintel sur"ey re"ealed that in the !H 1: +er cent of women and )' +er cent of men acti"ely sought out green alternati"es when sho++ing* Mintel also found that .% +er cent of consumers said they would e willing to switch away from their con"entional rands to uy +roducts from a com+any with a green image*C A6eattie '55.( &&B Air+lane tra"ellers, with en"ironmental concerns, might therefore seek out the com+any with the greenest image when they ha"e to fly* Hee+ faith with e<isting rands( Consumers who are rand loyalists may go green as and when their usual rand +roduces a green "ariant* A6eattie '55.( &&B Therefore, it is argua le that British Airways has created an o++ortunity for rand loyalists to go green through the +ossi ility of offsetting car on emission on a gi"en flight*

1.

The purchase decision* 3hen green consumers ha"e e"aluated alternati"e +urchases and alternati"es to +urchase they can +roceed to satisfy their needs and wants* During +urchases decision making, green consumers will considerK where to uy, how much to uy, and when to uy* A6eattie '55.( &5B -n the case of air+lane tra"el it is argua le that consumers with en"ironmental concerns, who elie"e air+lanes are an en"ironmental threat, will seek out the airline com+any that they elie"e to e the greenest or most sustaina le, ut it is also likely that these consumers will minimise the use of air tra"el as much as +ossi le and therefore only fly when it is a solutely necessary* Post-purchase !ehaviour* As mentioned earlier, green consumers may eha"e differently to con"entional consumers after a +articular +urchase has een made y considering +roduct use changeK reuse of +roductsK +roduct dis+osalK recycling of waste +ackagingK or care and maintenance of a +roduct to make it last longer* As discussed earlier, most of these considerations do not translate directly into su Dects rele"ant for the research Fuestion for this thesis, ut it is "ery likely that green consumers will consider how a +articular airline manages the waste accumulated y +assengers on a flight, or how much effort an airline directs into research and de"elo+ment of fuel efficiency or dura ility of an air+lane*

!nderstanding the different le"els of the uying +rocess for green consumers is im+ortant to e a le to draw a conclusion to the research Fuestion for this thesis* 7ther im+ortant as+ects to consider, in connection with green consumerism, are the influences on +urchase and consum+tion decisions for green consumers*

1:

-nfluences on +urchase and consum+tion decisions

These includeK +rice sensiti"ity, cultural factors, and social factors* These three su Dects will now e descri ed riefly in relation to the research Fuestion for this thesis* Price sensitivity* =A key eha"ioural Fuestion is the e<tent to which customers are willing to +ay a +rice +remium for im+ro"ed eco-+erformance in +roducts* Com+anies often Fuote the +ro lem of +assing additional costs on to the customer as an argument against greening*C A6eattie '55.( 5'B A sur"ey conducted among $1.% Consumers8 Association mem ers showed that 5% +er cent ought green +roducts on some occasions and &' +er cent were willing to +ay more for green +roducts* 7ther sur"ey conducted y grou+s such as Mintel and E76 suggests that etween a Fuarter and half of all Britons would +ay u+ to $. +er cent e<tra for credi le +roducts with im+ro"ed en"ironmental +erformance* A6eattie '55.( 5'B The "aria le to consider in connection with +rice sensiti"ity is the fact that not all consumers are eFually willing or a le to +ay more for a greener +roduct* -n the case of offsetting car on emissions on a gi"en flight with British Airways, consumers ha"e to e willing andJor a le to +ay an additional cost* ultural #actors* =Consumers in different countries will e influenced y different cultural norms and "alues relating to the en"ironment and society* This may lead to "ery different +atterns of green consumer eha"iour*C A6eattie '55.( 5'B An e<am+le of this can e found in a sur"ey conducted y 2uro arometer on the attitudes of 2uro+ean citizens towards the en"ironment* 9es+ondents were asked to indicate among a list of items what comes to their mind first when +eo+le talk a out the en"ironment* -n the !H res+ondents were eFually di"ided etween I+ollution in towns and cities8 and Ithe state of the en"ironment our children will inherit8* -n Denmark I+rotecting nature8 ranked highest* Defining cultural factors which influence +urchase and consum+tion decisions on the asis of country of residence will e met y many scholars as highly inadeFuate, as a definition of culture y Solomon, Bamossy and Askegaard e<+licitly im+lies* They define culture as =the accumulation of shared meanings, rituals, norms and traditions among the mem ers of an organization or society >?@ -t includes oth a stract ideas, such as "alues and ethics, as well as the material o Dects and

1/

ser"ices, such as cars, clothing, food, art and s+orts, that are +roduced or "alued y a grou+ of +eo+le*C ASolomon et al* $%%$( 11$B This means that consumers within the same country can elong to different consumer cultures, which again may affect them in different ways* Still, in the conte<t of this thesis, findings will e ased u+on sur"eys conducted on +o+ulations as a whole, and therefore in many cases will only reflect the cultural factors which affect the maDority* Social #actors* =Social and +sychological a++roaches to consum+tion e<+lain +urchasing eha"iour in terms of the need for social standing, acce+tance and +restige* This was originally +ro+osed in relation to Icons+icuous consum+tion8 in which many +urchases are not moti"ated y indi"iduals8 +ersonal needs, ut y their need to im+ress others*C A6eattie '55.( 5'B As focus on en"ironmental +ro lems increase, it can e argued that some consumers might +urchase green +roducts ecause of +eer +ressure or the +ossi ility of +lacing oneself within a s+ecific social standing*

1&

Glo al 3arming and the -m+acts of Climate Change

The +hrase Iglo al warming8 has ecome familiar to many +eo+le as one of the most im+ortant en"ironmental issues of our day* The underlying factors which ha"e initiated this somewhat contem+orary interest are not easily catalogued, still it is reasona le to argue that the analysis of climate research carried out y the -ntergo"ernmental 6anel on Climate Change A-6CCB '$ has had a noticea le influence* This analysis has concluded that there is strong e"idence that most of the warming o ser"ed o"er the +ast .% years is attri uta le to human acti"ities, and that the im+act of a warmer +lanet may "ery well ha"e de"astating conseFuences for life on 2arth as we know it* This scenario can therefore e argued to carry great a++eal towards 2arth8s human +o+ulation, as the solution to this almost life-threatening hy+othesis lies as much in the hands of the indi"idual as with go"ernments or cor+orations* Therefore, we are now more than e"er e<+eriencing the effect of the theory of human caused glo al warming on e"ery day life as well as it eing the catalyst for this thesis8s research Fuestion*

,uman caused glo al warming

The theory of human caused glo al warming takes its offs+ring in enhanced greenhouse effect* Therefore, the asic science of the natural greenhouse effect and enhanced greenhouse effect will now e descri ed riefly to understand the fundamentals of glo al warming and why many scientists elie"e that the cause of this is due to human acti"ity* The gases nitrogen and o<ygen that make u+ the mass of the atmos+here neither a sor nor emit thermal radiation* -t is the water "a+our, car on dio<ide and some other minor gases +resent in the atmos+here in much smaller Fuantities that a sor some thermal radiation lea"ing the 2arth8s surface, acting as a +artial lanket for this radiation and causing the difference of a++ro<imately $'RC etween the actual a"erage surface tem+erature on 2arth of a out '.RC and the figure of -:RC

'$

9ecognising the +ro lem of +otential glo al climate change, the 3orld Meteorological 7rganization A3M7B and the !nited Eations 2n"ironment 6rogramme A!E26B esta lished the -ntergo"ernmental 6anel on Climate Change A-6CCB in '5&&*

15

which a++lies when the atmos+here contains nitrogen and o<ygen only* This lanketing is known as the natural greenhouse effect and the gases are known as greenhouse gases* A,oughton $%%1( ':B 2nhanced greenhouse effect is the term used to descri e a higher then natural concentration of greenhouse gases in the atmos+here* As mentioned earlier, the natural greenhouse effect is mainly due to the gases water "a+our and car on dio<ide +resent in the atmos+here in their natural a undances* =The amount of water "a+our in our atmos+here de+ends mostly on the tem+erature of the surface of the oceansK most of it originates through e"a+oration from the ocean surface and is not influenced directly y human acti"ity* Car on dio<ide is different* -ts amount has changed su stantially O y a out thirty +er cent so far O since the -ndustrial 9e"olution, due to human industry and also ecause of the remo"al of forests* 0uture +roDections are that, in the a sence of controlling factors, the rate of increase in atmos+heric car on dio<ide will accelerate and that its atmos+heric concentration will dou le from its +re-industrial "alue within the ne<t hundred years* The increased amount of car on dio<ide is leading to glo al warming of the 2arth8s surface ecause of its enhanced greenhouse effect*C A,oughton $%%1( $)B -t is elie"ed that the increased amount of atmos+heric car on dio<ide could resolute in a glo al tem+erature increase of a out $*.RC within the ne<t hundred years* A,oughton $%%1( '%B This tem+erature increase +ro a ly does not seem catastro+hic to +eo+le li"ing in colder +arts of the +lanet, ut the +redictions made for a slightly warmer +lanet will ha"e glo al conseFuences which therefore most likely will affect all life on 2arth* The main concerns, estimated y the -6CC, for warmer future will now e descri ed*

The im+acts of climate change

The im+acts of climate change due to glo al warming are likely to "ary a great deal from +lace to +lace* The general +erce+tion is that far the most im+acts will e negati"e, although some im+acts could actually e termed +ositi"e as it is likely that a tem+erature increase could lengthen the growing season in +arts of Si eria and northern Canada, there y making it +ossi le to grow a greater "ariety of cro+s* A,oughton $%%1( '1)B -n other areas, increased car on dio<ide will aid the growth of some ty+es of +lants leading to increased cro+ yields* =,owe"er, ecause, o"er centuries, human communities ha"e ada+ted their li"es and acti"ities to +resent climate, most changes in climate will tend to +roduce an ad"erse im+act* -f the changes occur ra+idly, Fuick and +ossi ly

.%

costly ada+tation to new climate will e reFuired y the affected community* An alternati"e might e for the affected community to migrate to a region where less ada+tation would e needed O a solution which has ecome increasingly difficult or, in some cases, im+ossi le in the modern crowded world*C A,oughton $%%1( '11B Therefore, e"en the im+acts which +rimarily were termed +ositi"e would most likely ha"e negati"e conseFuences for +eo+le li"ing in these areas* -t can e argued that the negati"e im+acts of climate change due to glo al warming function as the main moti"ation as well as arguments for counteracting this en"ironmental +ro lem and of course, in connection with the research Fuestion for this thesis, offsetting car on emissions on flights with British Airways* 0or these reasons the main negati"e im+acts will now e descri ed riefly* -t is im+ortant to kee+ in mind that the negati"e im+acts which are a out to e descri ed are not scientific facts, ut rather a theory of likely conseFuences ada+ted from the findings of the 0ourth Assessment 9e+ort y 3orking Grou+ -- of -6CC which was released in A+ril $%%/* The -6CC highlight si< main areas of concern in connection with climate change due to glo al warming, namelyK fresh water resourcesK ecosystemsK food, fi re and forest +roductsK coastal systems and low-lying areasK industry, settlements and societyK health* These areas of concern are the +roduct of +roDected changes in +reci+itation, tem+erature, sea le"el and concentration of atmos+heric car on dio<ide* Basically, the -6CC argue that climate change due to glo al warming will most likely ha"e wide s+anning im+acts ranging from migration, ecause of sea le"el rise, decreased fresh water su++ly, decreased cro+ yields, and salinisation of irrigation water, to increased risk of e<tinctions around the glo e* S+ecifically for 2uro+e, the -6CC has made the following +redictions( =Eearly all 2uro+ean regions are antici+ated to e negati"ely affected y some future im+acts of climate change, and these will +ose challenges to many economic sectors* Climate change is e<+ected to magnify regional differences in 2uro+e8s natural resources and assets* Eegati"e im+acts will include increased risk of inland flash floods, and more freFuent coastal flooding and increased erosion Adue to storminess and sea-le"el riseB* The great maDority of organisms and ecosystems will ha"e difficulty ada+ting to

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climate change* Mountainous areas will face glacier retreat, reduced snow co"er and winter tourism, and e<tensi"e s+ecies losses Ain some areas u+ to :%S under high emission scenarios y $%&%B*') The +redictions made y the -6CC concerning the likely effects of climate change across 2uro+e do not take into account that 2uro+e most likely also will e affected y the im+acts of climate change on other continents* 2<am+les of this could e migration to 2uro+e from warmer areas or higher +riced im+orts, all of which will ha"e a noticea le effect* As the theory of negati"e im+acts uilds u+on a great "ariety of "aria les a holistic +icture is difficult to asses* Ee"ertheless, the -6CC has drawn u+ a ta le of e<am+les of +ossi le im+acts of climate change due to changes in e<treme weather and climate e"ents, ased on +roDections to the mid- to late $'st century, which can e "iewed in the a++endi<* These do not take into account any changes or de"elo+ments in ada+ti"e ca+acity*

The o++osition to human caused glo al warming

As mentioned, human caused glo al warming is a theory and not a fact* A num er of scientists actually o++ose the theory, including 0rederick Seitz, former solid-state +hysicist and former +resident of the Eational Academy of Sciences as well as 3illiam M* Grey, 6rofessor of Atmos+heric Science, Colorado State !ni"ersity, claming that other underlying agendas has +ushed the idea forward* 2"en though this might e true, the truthfulness of the theory of human caused glo al warming, in connection with the research Fuestion for this thesis, is not a decisi"e factor, meaning that e"en if glo al warming +ro"es not to e ecause of human acti"ity, the contem+orary +u lic o+inion, which will e e<amined later on, seems to corres+ond with the theory of human caused glo al warming*

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Background -nformation

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British Airways
6ast and +resent
British Airways origin runs +arallel to the origin of ci"il a"iation industry in the world* 7n August $., '5'5, British Airways forerunner com+any, Aircraft Trans+ort and Tra"el AATGTB, launched the worldTs first daily international scheduled air ser"ice, etween ;ondon and 6aris* 7n March )', '5$1, BritainTs four airlines - -nstone, ,andley 6age, Daimler Airways, and British Air Marine Ea"igation - merged to form -m+erial Airways* Around this time a num er of smaller !H air trans+ort com+anies had started their o+erations* These merged in '5). to form the original +ri"ately-owned British Airways ;td* -n '5)5, British Go"ernment nationalised -m+erial Airways and British Airways to form the British 7"erseas Airways Cor+oration AB7ACB* After the Second 3orld 3ar B7AC continued to o+erate long-haul ser"ices, while continental 2uro+ean and domestic flights were flown y a new airline, British 2uro+ean Airways AB2AB* -n '5/$ B7AC and B2A were com ined under the newly formed British Airways Board, with the se+arate airlines coming together as British Airways in '5/1*'1 Today, British Airways is the !HTs largest international scheduled airline and em+loys a out 1$,/.% +eo+le* -t is also the second largest airline in 2uro+e ehind Air 0rance-H;M, with more flights from 2uro+e across the Atlantic than any other o+erator*'. Gi"en the size of British Airways together with the asic assum+tions of cor+orate social

res+onsi ility, which were outlined in the cha+ter Theoretical 0ramework, the com+any has great +otential for im+ro"ing on the natural en"ironment* -n fact, one could argue that a com+any the size of British Airways has an o ligation to address the social and en"ironmental +ro lems that afflict humankind* A,awken '55.B A ste+ in the direction of cor+orate social and en"ironmental res+onsi ility found +lace in Se+tem er $%%. when British Airways introduced a "oluntary ta< to hel+ com at glo al warming, namely car on offsetting*
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Car on 7ffsetting
Through the initiati"e of car on offsetting British Airways res+onded to calls from en"ironmentalists and 2uro+ean authorities to hel+ tackle harmful emission le"els y introducing this new charge*': Money raised y car on offsetting goes to Climate Care, a non-go"ernmental charity organisation which works to hel+ reduce glo al car on dio<ide emission le"els* The amount of ta< +aya le, through car on offsetting, de+ends on the total distance and amount of fuel used on flights, meaning that the ta< on a short-haul 2uro+ean ticket will e less than on a long-haul intercontinental flight* 6assengers are a le to contri ute the amount of ta< +aya le on their flight "ia the airline8s we site*'/ This green initiati"e was welcomed y the British go"ernment, with the minister for climate change and en"ironment, 2lliot Morley, +raising British Airways for taking the initiati"e in hel+ing to com at harmful emissions while also stating that, U+eo+le are ecoming increasingly concerned a out climate change and are keen to +lay an acti"e role in tackling it* >?@ ;arge organizations ha"e a res+onsi ility to show them how they can do this*U'& As descri ed earlier in the section headlined =Green marketing strategiesC, the green initiati"e of car on offsetting resem les a te<t ook e<am+le of #* 7ttman Consulting8s Se"en 3inning Strategies of Green Marketing, which acti"ely a++eals to consumers with a green conscious* 0urthermore, as growing num ers of consumers within the !H are ecoming concerned a out en"ironmental issues, such as climate change, the green initiati"e of car on offsetting will most likely a++eal to more +eo+le, including consumers who normally are not en"ironmentally aware, due to cultural and social factors, as discussed earlier in the section headlined =-nfluences on +urchase and consum+tion decisionsC* -t is further argua le that e"en though the green initiati"e of car on offsetting seems to e directed towards green consumers, the definition of green consumers, y 2lkington and ,ailes A'5&5( .B which can e "iewed in full in the section headlined =The green consumerC, more or less dis+ro"es this assum+tion, as 2lkington and ,ailes found that green consumers are +eo+le who in general a"oids +roducts which are likely to endanger the health of the consumer or of others, as well as
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cause significant damage to the en"ironment* Therefore, it is most likely that hard core green consumers would not e affected y a green initiati"e such as car on offsetting, ecause of the road consensus that air+lane emissions are effecting our natural en"ironment negati"ely* 7n the other hand, if consumers who are en"ironmentally aware, had to use air+lane tra"el, they would most likely choose an airline with recognised green credentials* A7ttman '55&( ''1B This leads to another interesting as+ect of e"aluating the effecti"eness of the green initiati"e of car on offsetting, which is getting the green message through to the +u lic* 7ttman A'55&( ''.B argued that en"ironmentally oriented communication works est when( Green +roduct attri utes are o "ious, legitimate, and meaningful to a sizea le num er of consumers* A +roduct8s en"ironmental communicated* 6roduct-related efforts are reinforced y su stanti"e cor+orate +rogress* enefits are tangi le and can e clearly and sim+ly

-t is fairly clear that the green attri utes of car on offsetting are o "ious, legitimate, and meaningful to a sizea le num er of consumers within the !H* The reason for this eing, that one of the most highlighted en"ironmental issues in connection with air+lane tra"el is emissions of greenhouse gases through the urning of fossil fuels, which then is elie"ed to contri ute to glo al warming and climate change* As more +eo+le are concerned a out climate change, car on offsetting should e meaningful to a sizea le num er of consumers within the !H* The en"ironmental enefits of car on offsetting are also clear* Air+lanes are elie"ed to +ollute our atmos+here, therefore customers can calculate the estimated amount of emissions they +ersonally are res+onsi le for on a flight, which then is translated into an estimated amount of money customers can donate to the en"ironmental organisation Climate Care* According to green marketing theory, the fact that British Airways does not handle the donate money themsel"es, ut instead coo+erates with a non-go"ernmental charity organisation which works to hel+ reduce glo al car on dio<ide emission le"els, increases the credi ility of their en"ironmental claims* A6eattie '55.( $'/B

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2"en though British Airways8 green initiati"e of car on offsetting was argued to e a te<t ook e<am+le of #* 7ttman Consulting8s Se"en 3inning Strategies of Green Marketing, it is not unreasona le to Fuestion if car on offsetting falls under the category of green marketing* The reason for asking this Fuestion is that if one com+ares the green initiati"e of car on offsetting against the ten key elements of green marketing A6eattie '55.( )5B, fallouts will occur* These fallouts include that car on offsetting is not a holistic a++roach aimed at re"ersing the reductionalist and fragmented a++roaches of +re"ious usiness theory and +ractice, neither does it reflect a recognition that the large-scale, long-distance nature of current economy is not sustaina le* -f these fallouts are +ut in the +ers+ecti"e of the notion that green marketing should not e confused with an attem+t to e<+loit consumers8 en"ironmental concern to +romote com+anies or sell +roducts, one could argue that British Airways8 green initiati"e of car on offsetting more resem les Igreener8 marketing than Igreen8 marketing* 7n the other hand, for customers to e a le to offset their car on emissions, they need to click through the section of British Airways8 home+age titled =9es+ecting our worldC* This section of British Airways8 home+age deals with what British Airways term the si< key areas concerning en"ironmental issues in connection with air tra"el* These si< key areas includeK car on foot+rint, waste, noise and air Fuality, work +ractices, customer well eing, and community* '5 3hen taking this into consideration, it is e"ident that car on offsetting is only a +art of a greater green +icture, and therefore can e categorised as a green marketing initiati"e under the cor+orate social ut solely on the research res+onsi ility um rella* -n this connection it is im+ortant to note that this thesis does not centre on British Airways8 cor+orate social and en"ironmental res+onsi ility, Fuestion which isK to what e<tent is it +ossi le for British Airways to attract costumers within the !*H* through car on offsetting4 Therefore, this thesis will not engage in an in de+th e"aluation of the road +ers+ecti"e of British Airways8 green initiati"es, ut these are mentioned as su++lements to "alidate the credi ility of British Airways8 green intentions* The reason why this is im+ortant, esides following the third +oint made y 7ttman in connection with en"ironmental oriented communication, is found in the notion that acklashes can occur if a com+any8s green message a++ears insignificant or insincere, which often will in"ite criticism* A9anchhod and Gurau $%%/( ')1B

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Datamonitor8s S37T analysis

As descri ed earlier, in the cha+ter Methodology, Datamonitor, a usiness information com+any s+ecialised in industry analysis, has +roduced se"eral S37T analyses for British Airways o"er the +ast years* The interesting as+ects of these S37T analyses are the lack of attention towards en"ironmental issues, whether +ositi"e or negati"e* The most recent S37T analysis, +u licised in #uly $%%/ does not e"en mention en"ironmental as+ects* This fact seems odd considering the en"ironmental efforts British Airways has im+lemented since $%%., including car on offsetting, which indicates that en"ironmental issues are affecting the way usiness is conducted within British Airways* Coincidentally, or not, the last S37T analysis, +roduced y Datamonitor, which mentions en"ironmental issues, was +u lished in Decem er $%%., roughly around the time when car on offsetting was introduced* -n that S37T analysis en"ironmental issues were categorised under threats and reads as following( =BA$%, like other com+anies in the airline industry, is su Dect to !H, 2uro+ean and international en"ironmental laws and regulations concerning emissions to the air, discharges to surface and su surface waters, safe drinking water, and the management of hazardous su stances, oils, and waste materials* A iding y these regulations may increase BA8s costs* Any tightening of these regulations es+ecially those concerned with emissions to the air may increase costs further in the future years*C This analysis clearly does not address any other +ers+ecti"es, of en"ironmental issues affecting British Airways, than economic as+ects in connection with en"ironmental laws and regulations* As mentioned, this seems odd in light of the o "ious green initiati"es im+lemented y British Airways to inform, as well as con"ince, consumers within the !H that British Airways are well aware of the road sco+e of en"ironmental issues affecting their usiness and therefore are working hard to meet these en"ironmental needs* 0urthermore, as this thesis has argued so far, the green initiati"e of car on offsetting was im+lemented y British Airways to attract consumers while also creating goodwill for the airline among consumers who increasingly are ecoming more en"ironmentally aware* Therefore, this thesis will argue that British Airways are well aware that they could loose customers on ehalf of en"ironmental issues* 0or that reason, this thesis centres on a S37T analysis concerning the green initiati"e of car on offsetting*
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8BA8 is the acronym for British Airways

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The British Green Consumers

After ha"ing com+ared the ackground information concerning British Airways8 green initiati"e of car on offsetting against key areas of green marketing theory, it is now time to switch the focus towards the British Igreen8 consumers* The information, which will e used in this section to identify green attitude among consumers within the !H, is mainly com+rised from sur"eys conducted y 2uro arometer, Defra$', and Mintel* Because of the e<tensi"eness of 2uro arometer8s sur"ey - ha"e chosen not to enclose this sur"ey, ut the Defra sur"ey and a summary of Mintel8s sur"ey can e "iewed in the a++endi<*

6erce+tion and Attitudes in 9elation to the 2n"ironment

The first area that will e co"ered in connection with the British green consumers is the +erce+tion and attitudes in relation to the en"ironment* Cultural and social factors, which were descri ed in the cha+ter Theoretical 0ramework, +lay a noticea le role when determining this, meaning that +eo+le from different areas might ha"e different o+inions a out the en"ironment* A6eattie '55.( 5'B An e<am+le of this was found in the sur"ey conducted y 2uro arometer on the attitudes of 2uro+ean citizens towards the en"ironment, +u lished in A+ril $%%.* 9es+ondents were asked to indicate among a list of items what comes into mind first when +eo+le talk a out the en"ironment* -n the !H, res+ondents were eFually di"ided etween I+ollution in towns and cities8 and Ithe state of the en"ironment our children will inherit8 which each recei"ed $: +er cent* -n Denmark the largest +ercentage A)& +er centB answered I+rotecting nature8* This e<am+le illustrates two +oints* 0irstly, in connection with cultural and social factors, it illustrates that the maDority of +eo+le in two different cultures ha"e different o+inions a out the en"ironment* Secondly, it shows that !H consumers are more worried a out +ollution in towns and cities, and the state of the en"ironment our children will inherit, than +rotecting nature* These facts can e used to ad"antage for British Airways when deciding what +ers+ecti"e to take when communicating a green message such as car on offsetting, meaning that when British res+ondents answer the way they did, a green message concerning air +ollution, which is one of the most +ressing matter regarding +ollution in British towns and cities$$, will most likely win more ground than a message concerning animal wildlife*
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0urther e"idence of this is found when 2uro arometer asked !H res+ondents what en"ironmental issue they are most worried a out* The largest +ercentage, .% +er cent, answered air +ollution* These findings +ro"e oth +ositi"e and negati"e for a com+any such as British Airways, ecause if !H consumers are most worried a out air +ollution, then British Airways are etting on the right horse with car on offsetting as this green initiati"e addresses air +ollution* 7n the other hand, it could discourage !H consumers from contri ute to air +ollution* 0urther to this +oint, a sur"ey conducted y the British De+artment for 2n"ironment 0ood and 9ural Affairs in August $%%/, found that o"er /. +er cent of Brits elie"e that Irecycling more8, Iusing a car less, Iusing a more fuel efficient car8, Icutting down on gas and electricity8, andJor Iflying less8 would ha"e a medium or maDor im+act on the !H8s contri ution to climate change* The sur"ey also found that the largest +ercentage, o"er .% +er cent, thought that a lot or Fuite a lot of +eo+le would e willing to Irecycle more8 andJor Iinstall J im+ro"e insulation at home8* This com+ares with the smallest +ercentage, ') +er cent, who thought a lot or Fuite a lot would e willing to Ifly less8* 3hen asked for their attitudes a out flying, 11 +er cent strongly agreed or tended to agree that +eo+le who fly should ear the cost of the en"ironmental damage that air tra"el causes* This was a greater +ro+ortion than strongly disagreed or tended to disagree, which was )' +er cent* 0ewer +eo+le, '/ +er cent, strongly agreed or tended to agree that they felt guilty a out taking short haul flights these days* 7"er half strongly disagreed or tended to disagree with this statement* Des+ite high awareness of key en"ironmental concerns, Mintel, in a sur"ey conducted in March $%%/ on green and ethical consumers, found that as many as :% +er cent of British adults are not fully switched on to green and ethical issues* 7ne in fi"e, or $% +er cent, of British adults were classified as too usy to care* These consumers are sim+ly too usy to take these issues into consideration, and are a+athetic toward green concerns* At the other end of the s+ectrum, $1 +er cent were keen to e green, and are "ery conscious of, and conscientious a out, green and ethical issues, always trying to do more* Meanwhile, ': +er cent clearly feel that they are doing all they can on the green front* Angela ,ughes, Consumer 9esearch Manager at Mintel ela orates on this +oint( uying an air+lane ticket ecause air+lane emissions

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U3hen Mintel e<amined green and ethical consumerism ack in '55% it was young family aged adults who were most en"ironmentally aware and our research shows that these green consumers ha"e carried their ethical attitudes with them into later life* But worryingly, today8s young families seem to e taking less of an interest in these matters, which raises concerns a out the future of the green mo"ement* Clearly younger +eo+le would enefit from etter education when it comes to matters of the en"ironmentU*$) This statement leads to the ne<t +oint of this thesis8 in"estigation into the British green consumer, which deals with information on the en"ironment*

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-nformation on the en"ironment

As descri ed earlier, in the theoretical framework, a key element of green consum+tion is the desire for more information a out the relationshi+ etween +roducts and the en"ironment* A6eattie '55.( &/B -t is therefore interesting to find out how well informed British consumers actually are in connection with en"ironmental issues, as it was suggested that +eo+les8 lack of factual en"ironmental information re+resents the greatest en"ironmental hazard* ASchloss erg '55), in 6eattie '55.( $':B 3hen 2uro arometer asked !H res+ondents to indicate how well informed they feel they are a out en"ironmental issues, the smallest +ercentage, / +er cent, felt that they are "ery well informed* .) +er cent, which also is the largest +ercentage, answered fairly well informed* 7n the negati"e side, )% +er cent answered fairly adly informed, while 5 +er cent answered "ery adly informed* 3hen the same res+ondents were asked if they would like to know more a out en"ironmental +ro lems or more a out solutions to en"ironmental +ro lems, y far the largest +ercentage, :/ +er cent, answered more information a out solutions to en"ironmental +ro lems, while only ': +er cent wanted to know more a out en"ironmental +ro lems* These findings strengthen the notion that only a small +ercentage of consumers understand enough of the "oca ulary and conce+ts of en"ironmental issues to e considered en"ironmentally literate* A9anchhod and Gurau $%%/( ')5B -t also acks the idea that larger consumer grou+s are en"ironmentally aware* Additionally, !H consumers do not seem "ery interested in o taining more information a out en"ironmental +ro lems, ut rather want to learn a out solutions to them* 0or that reason British Airways8 green initiati"e of car on offsetting will most likely a++eal to the largest +ercentage of !H consumers as it is more a +art of the solution than +art of the +ro lem* 3ho !H consumers elie"e to e the most trustworthy in connection with o taining information a out en"ironmental issues is also an im+ortant as+ect* Green marketing theory, which was descri ed earlier in the cha+ter Theoretical 0ramework, argued that com+anies which make en"ironmental claims a out their own +roducts or ser"ices, would not seem as credi le as for e<am+le an en"ironmental organisation making the same claims* A6eattie '55.( $':-$'/B ConseFuently, 7ttman A'55&( 15B suggested that green marketing strategies work est if com+anies uild coalitions with cor+orate en"ironmental stakeholders* This theory is strengthened y findings from 2uro arometer8s sur"ey* 3hen 2uro arometer asked the !H res+ondents whom they trust the

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most when it comes to en"ironmental issues, the largest +ercentage, ): +er cent, answered en"ironmental +rotection associations, such as Green 6eace or Climate Care* $) +er cent answered scientists, $$ +er cent answered tele"ision, while no one, % +er cent, answered com+anies* 0or that reason, British Airways8 coalition with Climate Care, for distri uting the money +aid y customers for car on offsetting, will strengthen their en"ironmental credi ility in the eyes of !H consumers* After ha"ing esta lished who !H consumers trust the most, when it comes to o taining information a out en"ironmental issues, it would e interesting to find out who or where these same +eo+le in reality get their information from* 2uro arometer therefore asked !H res+ondents to indicate their three main sources of information a out the en"ironment, from a list includingK tele"ision news, news+a+ers, films and documentaries on tele"ision, the radio, magazines, con"ersations with relati"esJfamilyJfriendsJneigh oursJcolleagues, +u licationsJ rochuresJinformation G material, the internet, ooks, or e"ents such as conferencesJfairsJe<hi itionsJfesti"alsJetc* The media that recei"ed the largest +ercentage, /% +er cent, was tele"ision news* The second largest +ercentage, :) +er cent, was news+a+ers, while films and documentaries recei"ed )& +er cent* Tele"ision news and news+a+ers are for that reason the two largest sources for !H consumers to o tain information a out the en"ironment* These findings do not seem to corres+ond with the earlier findings, of who !H consumers trust the most for o taining information a out en"ironmental issues, which were en"ironmental +rotection associations* Therefore, these findings indicate that e"en though !H consumers o tain most of their information, a out en"ironmental issues, from news media, their trust in this media is moderate* Green marketing theory warned a out such a tendency, meaning that if consumers egin to feel that their genuine interest in the en"ironment is eing e<+loited, and in res+onse re el, they would no longer seek out or demand +roducts that are in fact less damaging to the en"ironment* -f this were to occur, the en"ironmental im+ro"ements that could ha"e een achie"ed would e lost* Angela ,ughes from Mintel ela orates on this +oint* =There ha"e een an increasing num er of media re+orts highlighting the com+le<ities of en"ironmental concerns and the difficulties that o+erators in the market face* But our research shows that for many consumers too much information and mi<ed messages are causing them to sim+ly Iswitch off8* Although there are no easy solutions to many of the en"ironmental and ethical dilemmas, which face society today, most consumers clearly need to e +resented with sim+ler messages*C

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0urther e"idence of this was found when 6eattie8s Se"en Green Cs were commented on* ,ere it was concluded that an e<cess of messages a out the en"ironment is leading to information o"erload among consumers* Mintel8s sur"ey found that '/ +er cent of !H consumers are suffering from Igreen o"erload8, ha"ing ecome cynical a out the whole mo"ement* They feel that there is little they can do to make a difference and that com+anies are using the issues to make themsel"es look good* 0inally, confusion also seems to e running high, with a further $) +er cent categorised as Iconfused ut willing8 and sim+ly unsure of what they need to do to lead a greener life* This leads to the final +oint of in"estigation into the British green consumer, which will identify +eo+les8 o+inion a out solutions to en"ironmental +ro lems* This is an interesting as+ect to include ecause it will show what +eo+le are willing to do, and what they think needs to e done, in connection with en"ironmental issues* This will in turn hel+ to draw a conclusion to the research Fuestion for this thesis*

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Solutions to en"ironmental +ro lems

3hen 2uro arometer asked !H res+ondents what they thought was the most effecti"e answer for sol"ing en"ironmental +ro lems, the largest +ercentage, .) +er cent, answered raising general en"ironmental awareness* This result does not tell us much in it self, ut if it is connected with the +re"ious Fuestion regarding what !H consumers would like to learn more a out, en"ironmental +ro lems or solutions to them, the conclusion can e drawn that this finding indicates that !H consumers want to raise general awareness a out solutions to en"ironmental +ro lems* 0urther to this +oint, Mintel found that when res+ondents were asked a out their attitudes towards the en"ironment, :/ +er cent strongly agreed or tended to agree that humans are ca+a le of finding ways to o"ercome the world8s en"ironmental +ro lems* 0rom this, it can e concluded that more than two out of three !H consumers elie"e that we are ca+a le of finding solutions to en"ironmental +ro lems* 3hen considering this result, an inconsistency emerges when taking into account that findings from Defra8s sur"ey showed that &% +er cent of !H consumers agreed that it takes too much effort to do things that are en"ironmentally friendly* This inconsistency clearly illustrates the confusion em edded in consumers in connection with en"ironmental issues, meaning that consumers are well intuned to the idea of sol"ing en"ironmental +ro lems, ut when it comes to action far the most consumers are not willing to do so* This dilemma is +ro a ly routed in the fact, which is taken from 2uro arometer8s sur"ey, that the largest +ercentage, .) +er cent, of !H res+ondents who stated that they often or sometimes make en"ironmentally friendly efforts ut who on the o++osite are con"inced that their efforts will not ha"e much of an im+act as long as others do not do the same* This +erce+tion might in fact discourage these same res+ondents from taking action* 0urther to this +oint, Mintel8s sur"ey found when it comes to moti"ation for deciding whether to take en"ironmental issues into consideration in daily life, sa"ing money on ills comes out as the most im+ortant factor, with 1: +er cent citing it as a moti"ation for change* Meanwhile, 1' +er cent would make green changes as long as it did not cost them too much money, while )$ +er cent would e more en"ironmentally friendly if there were direct enefits to them, such as the food tastes etter or was healthier* 7"erall, /1 +er cent of !H res+ondents are dri"en to action if the changes will somehow im+ro"e their +ersonal li"es as well as the en"ironment*

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-n connection with +rice sensiti"ity, green marketing theory argued that a key eha"ioural Fuestion is the e<tent to which customers are willing to +ay a +rice +remium for im+ro"ed eco-+erformance in +roducts or ser"ices* -t further argued that com+anies often Fuote this +ro lem of +assing additional costs on to the customer as an argument against greening* A6eattie '55.( 5'B 0rom the findings a o"e, this argument is confirmed* Moreo"er, in connection with British Airways green initiati"e of car on offsetting, it is sensi le that consumers are not forced to +ay e<tra, ut instead are gi"en the o++ortunity of offsetting their car on emissions* This will, according to the theory and statistics, gi"e the green initiati"e of car on offsetting a etter chance of meeting consumer wants, and there y attract customers, ecause they know the +ossi ility of a solution is o taina le, ut do not necessarily ha"e to do anything 0urthermore, Mintel8s sur"ey found that .5 +er cent of !H res+ondents are willing to make changes if they can e sure that it will really make a difference, that com+anies are doing their it, local authorities are dealing with issues efficiently or that other countries are taking the issues seriously* Angela ,ughes from Mintel ela orates on this +oint* =0or the maDority of Brits, sim+ly im+ro"ing the en"ironment is not enough of an incenti"e to introduce greener and more ethical ways of li"ing* -t is clear that those +romoting green or ethical +roducts and ser"ices, will need to highlight the +ersonal enefits these changes will make to +eo+le8s li"es and not Dust focus on the wider +icture*C 3hen these findings are +ut in connection with British Airways8 green initiati"e of car on offsetting, oth +ositi"e and negati"e results emerge* 7n the +ositi"e side, !H consumers could e attracted to the idea of car on offsetting, and e willing to +ay the ta<, if they are con"inced that British Airways are doing their +art* This ultimately comes down to the indi"idual8s +oint of "iew* 7n the negati"e side, as mentioned earlier, a MouGo" sur"ey found that the British +u lic does not "iew British Airways as en"ironmentally friendly* Throughout this section statistic on green attitudes and green consumer eha"iour has een

descri ed and com+ared with green marketing theory and green consumerism theory* Many useful findings ha"e een made, and now it is time to +ut these findings together into a S37T analysis*

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S37T Analysis

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S37T Analysis
-concerning British Airways8 green initiati"e of car on offsetting in connection with the research Fuestion for this thesis* Strengths - Car on offsetting can create goodwill among the British +u lic* - Coo+eration with an en"ironmental grou+ for offsetting car on emissions* - 2m+owers consumers with solutions* - British Airways was the first airline to introduce car on offsetting* - -ncreasing num ers use air tra"el* "pportunities - Attract consumers who are en"ironmentally aware* - Attract costumers ecause of the goodwill car on offsetting creates* Threats - Car on offsetting may ackfire if British Airways does not follow u+ with a holistic sustaina le solution* - 2n"ironmental grou+s oycott air tra"el* - ;arger consumer grou+s might oycott air tra"el ecause of +ollution* - British Airways is not a credi le source for information regarding +ollution* - Consumers ha"e to +ay a +rice +remium* +eaknesses - Car on offsetting may a++ear as a false attem+t to achie"e sustaina ility* - ,ard-core en"ironmentalists would most likely not use air+lane trans+ortation e"en if they can offset their car on emissions*

Strengths
The first +oint made under strengths is that the green initiati"e of car on offsetting can create goodwill for British Airways among the British +u lic* Su++ort of this statement is found oth in the theoretical framework as well as in the ackground information, and will now e summarised* Gi"en the size of British Airways together with the asic assum+tions of cor+orate social

res+onsi ility, which were outlined in the theoretical framework, the com+any has great +otential for im+ro"ing on the natural en"ironment* As a result, it was argued that a com+any the size of British Airways has an o ligation to address the social and en"ironmental +ro lems that afflict humankind* A,awken '55.B The green initiati"e of car on offsetting is a ste+ in the direction of fulfilling this o ligation, and therefore most likely will create goodwill for British Airways* 0urthermore, it was argued that reluctance to incor+orate en"ironmental and social thought into a

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usiness +lan would +ro"e negati"e in connection with uilding or maintaining a strong rand* A9anchhod and Gurau $%%/( ').B Therefore, the o++osite must +ro"e +ositi"e, meaning that when British Airways incor+orate en"ironmental and social as+ects into their usiness +lan, this will result in a +ositi"e +erce+tion of the com+any* Moreo"er, this thesis found that the maDority of the British +u lic are concerned a out air +ollution and wants to learn more a out solutions to en"ironmental +ro lem, instead of learning more a out en"ironmental +ro lems* As British Airways8 green initiati"e of car on offsetting is categorised as a solution to en"ironmental +ro lems regarding air +ollution, this initiati"e will, according to the sur"ey findings, a++eal to the maDority of !H consumers* The second +oint under strengths concerns the fact that British Airways are coo+erating with an en"ironmental grou+ for managing the funds o tained through car on offsetting* The reason why this is categorised under strengths is that green marketing theory warns that acklashes can occur if the green message from cor+orations a++ears insignificant or insincere instead of credi le* A6eattie '55.( $':-$'/, 9anchhod and Gurau $%%/( ')1, and 7ttman '55&( 15B This theory com ined with the finding of !H consumers not trusting cor+orations for information a out en"ironmental +ro lems, results in the conclusion that it is a strength for British Airways that they coo+erate with an en"ironmental grou+ regarding car on offsetting, as en"ironmental grou+s are the most trusted y !H consumers in connection with o taining information a out en"ironmental +ro lems* The third +oint under strengths regards em+owering consumers with the solutions to en"ironmental +ro lems* This +oint is ada+ted from one of #* 7ttman Consulting8s Se"en 3inning Strategies of Green Marketing* A7ttman '55&( 15B As mentioned earlier, the maDority of !H consumers want to learn more a out solutions to en"ironmental +ro lems, therefore, in connection with the theory mentioned a o"e, it must e categorised as a strength that British Airways are em+owering !H consumers with a solution to the en"ironmental +ro lem of air+lane emissions* The fourth +oint under strengths regards the fact that British Airways was the first airline to introduce car on offsetting, and y eing the first it does not a++ear as if British Airways are Dum+ing on the car on offsetting wagon, as this could e the way other airlines, which ha"e im+lemented this green initiati"e, are +ercei"ed, and therefore their efforts might not seem as credi le* 2"idence of this is found in green marketing theory* 7ttman A'55&( 15B argued that a

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winning green marketing strategy is to create new +roducts and ser"ices that alance consumer8s desires for con"enience and afforda le +ricing* Car on offsetting was a new ser"ice when British Airways introduced this green initiati"e in $%%., and it is con"enient for consumers that want to offset their car on emissions as these Dust ha"e to click through to the section of British Airways8 home+age entitled res+ecting our world to do so* The as+ect of afforda le +ricing will e handled later on in this cha+ter* The fifth and last +oint under strengths concerns the fact that increasing num ers are using air tra"el* The way in which this statement translates into a strength for British Airways, in connection with the green initiati"e of car on offsetting, is that consumers are increasingly ecoming more en"ironmentally aware, and when this fact is connected with the fact that more +eo+le are using air tra"el, the airline with the most credi le en"ironmental efforts will most likely e the fa"oured choice* A7ttman '55&( 15B 0urther to this +oint, sur"ey findings showed that only a small +ercentage of !H consumers are willing to fly less to im+ro"e on en"ironmental +ro lems such as climate change*

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3eaknesses
The first +oint under weaknesses regards the statement that British Airways8 green initiati"e of car on offsetting may a++ear as a false attem+t to achie"e sustaina ility* The reason for stating this is that car on offsetting, in it self, is not a holistic sustaina le solution for com ating en"ironmental +ro lems which affect British Airways, and as green marketing theory ad"ocates holism as a core "alue A6eattie '55.( )5B, car on offsetting could seem as a weak attem+t to attract consumers within the !H, who in general are ecoming increasingly en"ironmentally aware* This +erce+tion com+lements the earlier mentioned critic of green consumerism* This critic centred on the argument that green consumerism, at it worst, is a +alliati"e for the conscience of the consumer class, allowing us to continue usiness as usual while feeling like we are doing our +art* ADurning '55$ in 6eattie '55.( &)B The second +oint under weaknesses concerns the notion that hard-core en"ironmentalists would most likely not use air+lane trans+ortation e"en if they could offset their car on emissions* The main reason for arguing this is that 2lkington and ,ailes A'5&5( .B defined green consumers as +eo+le who in general a"oid +roducts which are likely to endanger the health of the consumer or of others, as well as cause significant damage to the en"ironment* This thesis has found that this +articular consumer grou+, the hard-core en"ironmentalists, is a small grou+ counting a++ro<imately '% +er cent of the British consumers* 3hen these two findings are +ut together, the conclusion can e drawn that car on offsetting is not tailor made for hard-core en"ironmentalists, ut on the other hand, if hard-core en"ironmentalists ha"e to use air trans+ortation, they would most likely choose the airline with the most recognised green credentials* The third +oint under weaknesses regards the statement that British Airways is not a credi le source for information regarding +ollution* The arguments for acking this statement resem les the argumentation under the second +oint under strengths, meaning that it was argued that green marketing theory warns that acklashes can occur if the green message from cor+orations a++ears insignificant or insincere instead of credi le* A6eattie '55.( $':-$'/, 9anchhod and Gurau $%%/( ')1, and 7ttman '55&( 15B This theory com ined with the finding that +ractically no Brits trust com+anies for information regarding en"ironmental +ro lems, categorises this +oint under weaknesses for British Airways*

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The fourth and last +oint under weaknesses is that consumers ha"e to +ay a +rice +remium to get enhanced eco-+erformance in connection with British Airways air tra"el* A key eha"ioural Fuestion in connection with green consumerism theory is the e<tent to which consumers are willing to +ay a +rice +remium for im+ro"ed eco-+erformance* A6eattie '55.( 5'B As earlier findings showed, !H consumers are not o"erly willing to +ay a +rice +remium unless it enefits them directly, although Mintel8s sur"ey found that .5 +er cent of !H consumers are willing to make changes, such as offsetting their car on emissions, if they could e sure that it would really make a difference and that com+anies are doing their it as well* 2<actly these +oints com ined with MouGo"8s sur"ey finding that British Airways is +ercei"ed as the least en"ironmentally friendly com+any in the !H, categorises this +oint under weaknesses*

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7++ortunities
The first +oint under o++ortunities concerns the statement that car on offsetting can attract consumers who are en"ironmentally aware* -n the theoretical framework green consumer eha"iour was defined as the +urchasing and non-+urchasing decisions made y consumers, ased at least +artly on en"ironmental or social criteria* A6eattie '55.( &1B Consum+tion studies theory argued that consumers are tri e mem ers, which means that the +roduct or ser"ice sym olism dri"es grou+s of consumers to consume s+ecific +roducts or ser"ices so they can e recognised y other mem ers of their grou+ or tri e* APstergaard and #antzen $%%%( '&-$$B The definition of green consumer eha"iour together with consum+tion studies theory indicates that if consumers are en"ironmentally aware they will seek out en"ironmentally friendly +roducts or ser"ices so that they can e recognised y other consumers who are en"ironmentally aware* 2"en if 2lkington and ,ails A'5&5B defined se"eral statements regarding the non-+urchasing as+ect, which they argued defined green consumers, it is "ery likely that when en"ironmentally aware consumers ha"e to uy a +lane ticket, they would seek out the airline with the most recognised green credentials to illustrate they elong to this +articular consumer grou+* The second +oint under o++ortunities regards the statement that British Airways8 green initiati"e of car on offsetting can attract costumers ecause of the goodwill car on offsetting creates* This is a "ery interesting as+ect of this S37T analysis in connection with the research Fuestion for this thesis, ecause this thesis has found that it does not seem as if the green initiati"e of car on offsetting is aimed at the relati"ely small grou+ of hard-core en"ironmentalists, ut rather seems to e aimed at the !H +u lic which increasingly are ecoming more en"ironmentally aware* 0indings that +oint to this statement will now e summarised* Green marketing theory argued that hot issues such as the en"ironment +ass through three distincti"e +hases, which can e "iewed in full in the theoretical framework* -t was further argued that green consumerism is now in the second +hase which isK +eo+le ecome informed a out the issue and acti"ity o"ertakes an<iety* This indicates that when !H consumers ecome informed a out en"ironmental +ro lems, they would want to do something a out it* Sur"ey findings, which were descri ed in the +re"ious cha+ter, ack this notion* 7ther findings that "alidate this statement can e found in the earlier mentioned statement y the British 2n"ironmental Minister 2lliot Morley, who said that +eo+le are ecoming increasingly concerned a out climate change and are

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keen to +lay an acti"e role in tackling it* $1 Therefore, this thesis will argue that British Airways has an o++ortunity to attract consumers ecause of the goodwill car on offsetting creates* ,ow the goodwill is esta lished was co"ered in the first +oint under strengths*

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Threats
The first +oint under threats concerns the statement that British Airways8 green initiati"e of car on offsetting may ackfire if British Airways does not follow u+ with a holistic sustaina le solution* 7n more than one occasion this thesis has highlighted that acklashes can occur if the green message from British Airways does not seem credi le* 0urthermore, this thesis has argued that car on offsetting in it self is not a holistic solution to the en"ironmental +ro lem of air+lane emissions of dangerous greenhouse gases* Still, British Airways does ha"e other +roDects in the struggle against en"ironmental +ro lems related to air tra"el, ut as mentioned earlier the British +u lic "iew British Airways as the least en"ironmentally friendly com+any in the !H* This leads to the second +oint under threats which regards the statement that en"ironmental grou+s oycott air tra"el ecause of air+lane +ollution* 2lkington and ,ailes8 definition of green consumers on the asis of +roduct a"oidance is rele"ant in this connection, meaning that green consumers most likely would not use air trans+ortation if it could e a"oided, ecause of the damaging effect of air+lane emissions to the natural en"ironment* 0urther su++ort of this statement is found in 6eattie8s A'55.B theory regarding green consumer eha"iour in relation to the uying +rocess, which can e "iewed in full in the theoretical framework* This first leg concerns the recognition of a need or want, where 6eattie argued that green consumers would ask themsel"es if they really need to uy or consume the +roduct or ser"ice* 6eattie A'55.( &:B ela orated on this +oint y arguing that =a demand for green +roducts may reflect a long-standing interest in en"ironmentalism, a concern for the future generationsK a reDection of the "alues of the consumer society, or sim+ly a willingness to try something different* This ecomes translated into a generic desire to +urchase green +roducts from green com+anies* -t can also e channelled into a desire not to make a +urchase, either in terms of doing without or acti"ely oycotting a +roduct or com+any*C This leads to the third and last +oint under threats, namely that larger consumer grou+s might oycott air tra"el ecause of +ollution of the en"ironment* As findings from sur"eys conducted on !H consumers ha"e shown, the maDority of !H consumers are not hard-core en"ironmentalists, ut they are concerned a out en"ironmental issues, such as climate change* Therefore, this thesis will argue that the green consumerism theory descri ed a o"e is a++lica le to this grou+ of !H consumers* Sur"ey findings ha"e also showed that a clear maDority of !H consumers elie"e that flying less would ha"e a medium or maDor im+act on the !H8s contri ution to climate change*

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Conclusion
Throughout this thesis, green marketing theory and green consumerism theory, rele"ant for the research Fuestion, has een descri ed and held against actual facts and sur"ey findings regarding the British green consumers* -nteresting results ha"e een achie"ed and +ut together into a S37T analysis, concerning British Airways8 green initiati"e of car on offsetting in connection with the research Fuestion for this thesis, which summed u+ the most rele"ant findings of this thesis* 7n the asis of this work method - am now a le to draw a conclusion to this thesis* 6rimarily, it has een esta lished that !H consumers are ecoming increasingly concerned a out en"ironmental issues and that this increased concern can affect consum+tion eha"iour* Sur"ey findings ela orated on this +oint y showing that !H consumers are most worried a out air +ollution* This result +ro"es oth +ositi"e and negati"e in connection with the research Fuestion for this thesis, ecause if !H consumers are ecoming increasingly concerned a out air +ollution they will, according to green marketing theory, e keen to e a +art of the solution* 7n one hand the solution would e to fa"our com+anies with the most recognised green credentials, on the other hand it would result in reluctance to consume +roducts or ser"ices they elie"e to e a +art of the +ro lem* Moreo"er, sur"ey findings indicated that two thirds of !H consumers elie"e that flying less would ha"e a medium or maDor im+act on en"ironmental issues such as climate change, ut further findings also showed that only a small +ercentage elie"ed that !H consumers would e willing to fly less, and o"er half of the res+ondents did not feel guilty a out flying* -t has also een esta lished that credi ility in connection with information a out en"ironmental issues is necessary for a green message to e taken seriously y !H consumers* Sur"ey findings showed that .5 +er cent of !H consumers are willing to make changes if they can e sure that it will really make a difference as well as com+anies are doing their it* !nfortunately for British Airways, the airline is +ercei"ed as the least en"ironmentally friendly com+any in the !H* This means that !H consumers are not con"inced a out the en"ironmental efforts im+lemented y British Airways, and therefore a green message will not e taken seriously* 7n the other hand, British Airways coo+eration with the en"ironmental organisation Climate Care, for managing the funds o tained through car on offsetting, will, according to green marketing theory, strengthen the credi ility of their green initiati"e of car on offsetting as sur"ey findings showed that

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en"ironmental organisations are the most credi le source for !H consumers to o tain information a out the en"ironment* Still, e"en though British Airways8 coo+eration with Climate Care will strengthen their credi ility, the fact that British Airways is +ercei"ed as the least en"ironmentally friendly com+any in the !H, means that other airlines ased in the !H ha"e a su+erior green re+utation, and therefore it is most likely that !H consumers, who increasingly are ecoming more en"ironmentally aware, would choose an alternati"e airline with su+erior green credentials* 0or these reasons, this thesis will conclude that British Airways8 green initiati"e of car on offsetting will not +ro"e to e an efficient way of attracting consumers within the !H, ecause British Airways are +ercei"ed as the least en"ironmentally friendly com+any in the !H, which indicates that the maDority of !H consumers are not con"inced a out the sincerity of the en"ironmental claims made y British Airways*

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;ist of ;iterature
Arnould #* 2*, 6rice ;* ;* G Winkhan M* G* O Consumers O -rwin $%%1 Barrow #* C* O 2n"ironmental Management and De"elo+ment O 9outledge $%%. Commoner B* O The Closing Circle( Eature, Man, and Technology O Alfred A* Hno+f '5/' 2kins 6* O 2conomic Growth and 2n"ironmental Sustaina ility( The 6ros+ects for Green Growth O 9outledge '555 2lkington #* G ,ailes #* O The Green Consumer Guide O Nictor Gollancz '5&5 0uller A* D* O Sustaina le Marketing( Managerial-2cological -ssues O Sage 6u lications '555 ,oughton #* O Glo al 3arming( The Com+lete Briefing O Cam ridge !ni"ersity 6ress $%%1 Hotler 6* O Marketing Management( Analysis, 6lanning, -m+lementation, and Control O 6rentice ,all '55/ Hotler 6* G ;ee E* O Cor+orate Social 9es+onsi ility( Doing the Most Good for Mour Com+any and Mour Cause O 3iley $%%. ;e"y #* S* O Brands, Consumers, Sym ols, G 9esearch O Sage 6u lications '555 ;om org B* O The Ske+tical 2n"ironmentalist( Measuring the 9eal State of the 3orld - Cam ridge !ni"ersity 6ress $%%' Morrison #* O The -nternational Business 2n"ironment O 6algra"e $%%$ Murray A* O Cor+orate Social 9es+onsi ility in the 2! O Centre for 2uro+ean 9eform $%%) 7ttman A* #* O Green Marketing: Opportunities for Innovation O ETC Business Books '55& 6eattie H* O 2n"ironmental Marketing Management( Meeting the Green Challenge O 6itman 6u lishing '55.

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9anchhod A* G Gurau C* O Marketing Strategies( A Contem+orary A++roach O 6rentice ,all $%%/ 3agner A* S* O !nderstanding Green Consumer Beha"iour( A Qualitati"e Cogniti"e A++roach O 9outledge $%%) 3ilson A* G* G Bryant ;* 9* O 2n"ironmental Management( Eew Directions for the Twenty-0irst Century O !C; 6ress '55/

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;ist of 3e sites
www*aircraft-+hotos*net www* ritishairways*com www*defra*go"*uk www*mintel*com www*news*chea+flights*co*uk www*newscientist*com www*sustaina lea"iation*co*uk www*guardian*co*uk www*ilo"eindia*com www*i+cc*ch

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Summary
This thesis takes its offs+ring in the heightened attention towards en"ironmental issues in contem+orary western society, with focus on the way this attention is affecting the usiness world* 7ne of the most negati"ely +ercei"ed usiness areas in connection with en"ironmental issues is the a"iation industry* -t has een +redicted that with the increasing num er of +eo+le using air tra"el, the a"iation industry will ecome one of the largest contri utors to climate change, ecause of car on emission from air+lanes* Therefore, this thesis focuses on how British Airways, 2uro+e8s second largest airline com+any, sells their +roduct in an increasingly en"ironmentally aware market* This is done y e"aluating the en"ironmentally friendly initiati"e of car on offsetting, which is a initiati"e introduced y British Airways to gi"e customers the o+tion of offsetting their car on emissions on British Airways8 flights* The money o tained through this initiati"e is then distri uted y the en"ironmental organisation Climate Care into +roDects com ating climate +ollution* ,ence, the research Fuestion for this thesis( To what e<tent is it +ossi le for British Airways to attract customers within the !H through the en"ironmentally friendly initiati"e of car on offsetting* To answer this Fuestion green marketing theory and green consumerism theory is used in connection with sur"eys conducted on the British +u lic concerning en"ironmental issues* The main findings here are that most !H consumers are well aware of en"ironmental issues, and these do, to some e<tent, affect the way they consume +roducts or ser"ices* -t is also found that !H consumers are not o"erly willing to make en"ironmentally friendly efforts unless it enefits them directly, mostly in form of economical enefits* Another im+ortant finding includes that green messages form com+anies are only effecti"e if customers elie"e they are credi le* This +ro"e "ery negati"e for British Airways, as a recent sur"ey conducted y MouGo" found that British Airways is +ercei"ed as the least en"ironmentally friendly com+any in the !H* Therefore, this thesis concludes that it is to a "ery +oor e<tent that British Airways can attract customers through the en"ironmentally friendly initiati"e of car on offsetting*

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A++endi<

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