An executive summary for
managers and executive
readers can be found at the
end of this article
Global industrialization
122 JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999, pp. 122-136, # MCB UNIVERSITY PRESS, 0736-3761
A conceptual model of US
consumer willingness-to-pay for
environmentally certified wood
products
Richard P. Vlosky
Assistant Professor, Forest Products Marketing, Louisiana Forest
Products Laboratory, Louisiana State University Agricultural Center,
Baton Rouge, Louisiana, USA
Lucie K. Ozanne
Lecturer, Department of Economics and Marketing, Lincoln
University, Department of Economics and Marketing, Canterbury,
New Zealand
ReneÂe J. Fontenot
PhD Candidate in Marketing, E.J. Ourso College of Business
Administration, Louisiana State University, Baton Rouge, Louisiana,
USA
Keywords Consumer behaviour, Consumer marketing, Environment, Forest products,
Green marketing, Natural resources
Abstract Global industrialization and the subsequent dwindling of many natural
resources have become elements for product differentiation in marketing. Environmental
certification programs are increasingly being recognized as significant market-based
tools for linking manufacturing and consumer purchases. This research examines the
relationships between intrinsic environmental motivations and the willingness-to-pay a
premium for environmentally certified wood products. A conceptual model is proposed
that captures the effects of perceptions, awareness and price on consumer willingness to
purchase and pay a premium for environmentally certified forest products. The data
suggest that there are positive correlations between the willingness-to-pay and the
independent variables in the model, environmental consciousness, certification
involvement and perceived importance of certification. A cluster of US consumers was
identified that has a proclivity to purchase certified wood products and may be a logical
target market.
Introduction
Global industrialization and subsequent dwindling of many natural resources
have become elements for product differentiation in marketing.
Environmental certification programs are increasingly being recognized as
significant market-based tools for linking manufacturing and consumer
purchases. Opinion polls indicate that US consumers believe that saving the
environment is a high priority. Consumers who espouse a concern for the
environment, often called a ``green orientation'', are growing in number
(Donaton and Fitzgerald, 1992). Consumers buy ``green'' to help the
environment but more so as a means to improve their lives in general
(Lambert, 1996). According to one survey, as many as eight out of ten US
consumers currently claim that they are environmentalists (Gutfield, 1991).
In another a survey by the newsletter Green MarketAlert, 12.6 percent of all
new product introductions in 1991 made ``green'' claims and for new
household products, 41 percent made ``green'' claims (Green MarketAlert,
1993).
However, consumers are highly fragmented in their levels of environmental
awareness and willingness to choose higher-priced environmentally oriented
products (Irland, 1993). In general, one reason for which consumers are
willing to pay such a premium is to ensure product quality (Rao and Bergen,
1992). Product quality has been examined along two measures in the

Wood products industry
Green certification
JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999
literature: objective quality and perceived quality (Dodds and Monroe, 1985;
Garvin, 1983; Jacoby and Olson, 1985; Zeithaml, 1988). Objective quality is
defined as those measurable and quantifiable attributes of a product for
which a comparison to a standard can be made. Perceived quality is defined
as the consumer's judgment about the superiority or excellence of a product
(Zeithaml, 1988).
One broadbased sector under environmental pressure that is directly
influenced by consumer behavior is the wood products industry. In an effort
to mitigate negative public sentiment regarding timber harvesting and
management, the wood products industry has begun to differentiate products
through the process of environmental certification. Certified wood is
harvested from forests that are managed in a sustainable and environmentally
sound manner.
For most consumers the quality of wood products is difficult to assess at the
time of purchase. The opportunity exists for the wood industry to offer
credible third-party verification of environmental marketing claims (Irland,
1993). These environmental claims may serve as cues of extrinsic product
quality. Consequently, consumers often look for extrinsic cues that create
perceptions of what might constitute quality in a wood product. Therefore,
we believe at this point in time that objective quality plays a secondary role
to perceived quality in this context.
The research questions in this paper are ``What is the perceived quality and
value that consumers attribute to environmental certification?'' and ``Is there
a consumer segment with a propensity to pay a premium for environmentally
certified wood products?'' A conceptual model is proposed that captures the
effects of perceptions, awareness and price on consumer willingness to
purchase and pay a premium for environmentally certified forest products.
Hypotheses about these relationships are tested in addition to a cluster
analysis that identifies the segment of the US population most likely to
purchase certified wood products.
Environmental forestry certification
Green certification, known alternatively as green labeling or environmental
certification, is a process through which timberlands are certified by an
independent party as being harvested using sustainable forestry practices.
Wood products manufacturers that purchase their raw materials from green
certified sources, and that subject their own businesses to a green
certification audit, can ultimately earn the right to attach a green label to
their product (Christianson, 1994). The rationale behind the green
certification movement is that, given a choice, consumers would rather buy
products that do not harm the environment. In the USA, in order to become
certified, a forest owner must undergo a third-party audit of its forest
management practices (Point/Counterpoint, 1994). There are two broad
types of certifiers, each represented by different certifying organizations.
The first is the for-profit certification entity exemplified by Scientific
Certification Systems (SCS), a company that certifies environmental
claims and practices across a wide range of products and manufacturing
practices. The second type of certifier is non-profit with the best example
being the SmartWood program, part of the Rainforest Alliance.
SmartWood certifies only forest management practices. Each organization
validates claims made by producers (Irland, 1993). Both groups provide
objectivity, an attribute previously missing from forest industry
environmentalism.
123
 Research foundation
Consumers' willingness-to- Previous marketing research has examined the effect of price on consumers'
pay perception of quality (Leavitt, 1954; Rao and Monroe, 1988; Zeithaml, 1988;
Dodds et al., 1991). A fundamental element of basic marketing research is
the process of collecting, gathering and analyzing information to identify and
define consumers' needs, wants and desires of goods (Burns and Bush,
1995). Innate in this type of research is often a determination of consumers'
willingness-to-pay for features either intrinsic or extrinsic to the item. Price
premiums, the excess prices paid over and above the ``fair'' price that is
justified by the ``true'' value of the product (Rao and Bergen, 1992), may be
indicators of consumer willingness-to-pay.
Recent polls show that nearly 90 percent of American consumers are
concerned about the environmental impact of what they buy (Cramer, 1991).
Consumers do not always base product-purchasing decisions on their
environmental attitudes, but it is becoming an increasingly important factor
(Irland, 1993). Several studies have investigated the relationship between
environmental attitudes and product purchase (Schwepker and Cornwell,
1991) or usage intentions (Alwitt and Berger, 1993). The more involved
consumers are with the environment, the more likely they are to purchase
green products (Schuhwerk and Lefkokk-Hagius, 1995).
``Green marketing'' The term ``green marketing'' has been described as an organization's efforts
at designing, promoting, pricing and distributing products that will not harm
the environment (Pride and Ferrell, 1993). Essentially it refers to the
marketing of products that are less toxic than normal, are more durable,
contain reusable materials or are made of recyclable materials (Lamb et al.,
1994). A tightrope has been strung for green marketers where they must
balance setting prices for green products with consumers' sensitivity to cost
and their willingness-to-pay more for environmental safety (Chase, 1991;
Jay, 1990).

Consumer willingness-to-pay for certified wood products

Green marketing of wood products is a relatively new phenomenon. With
consumers' increased concern with environmental issues in general, the
wood products industry is feeling increasing pressure to offer
environmentally sound products. A recent university study at Purdue
University found that, when it comes to wood furniture purchases, roughly
93 percent of those consumers surveyed said ``they'd like to know that their
furniture originated from a sustainably managed forest.'' Also, 68 percent
said ``they would be willing to pay more for furniture whose construction
materials originated from a sustainably managed North American forest''
(Koenig, 1994).
Sufficient consumer One of the most fundamental questions that has been raised regarding
demand certification is whether sufficient consumer demand exists for certified wood
products (Waffle, 1994a; 1994b; Wood Based Panel Industries, 1992;
Buckley, 1994). For instance, Waffle (1994a) asks, ``. . .has a real market for
`certified sustainably produced' timber been demonstrated?'' Waffle (1994b)
questions whether consumers are really demanding ``green'' wood and
whether they would be willing to pay a ``green premium'' to get it? ``Current
demand appears to be quite limited to some who purchase very small
quantities, who want to be environmentally correct and to one or two large
buyers looking for a possible marketing gimmick'' (Waffle, 1994b).
Consumers differ in their knowledge of and concern about the environment.
Several researchers have suggested that a primary objective for marketers is

124 JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999

 to get consumers who are highly concerned about the environment to act
upon their concerns (Ellen et al., 1991). Previous studies have found that
consumers can be classified by their degree of commitment to the
environment according to various attitudes and behaviors (List, 1993; Roper
Organization, 1992). Various researchers (Durand and Ferguson, 1982;
Samdahl and Robertson, 1989; Webster, 1975; Wysor, 1983) have assessed
correlation among environmental concern, personality traits and
demographic variables. Five broad environmental types have been
generalized with regard to likelihood to purchase environmentally certified
products ranging from ``True-Blue Greens'', the most environmentally
conscious, to the ``Basic Browns'' which are of low income and education
and of the belief that there is little that they can do to improve the
environment (Table I).

The proposed model

Three independent The ``Conceptual Model of Consumer Willingness-to-pay for
variables Environmentally Certified Wood Products'' incorporates three independent
variables: environmental consciousness, importance of environmental
products and involvement in environmental product activities. The
dependent variable is willingness-to-pay for environmentally certified
products. In addition, a mediating variable, price premium for
environmentally certified products is included in the model (Figure 1). The
model attempts to capture the essential drivers that the authors believe
impact consumers' willingness to buy environmentally certified wood
products at a price premium.

Research hypotheses
Environmental consciousness
This set of relationships examines consumer environmental consciousness as
measured by overall environmental proclivity.

Type Percent of population Description

True-blue greens 11 Leaders of the environmental
movement; earn more and have more
education than most
Greenback greens 11 Willing to pay more for
environmentally acceptable products;
earn about the same as the true-blues;
also better educated than the majority,
but are too busy to change their
lifestyle to accommodate
environmental concerns
Sprouts 26 Well educated and have high incomes;
inclined to adjust their lifestyles to
reflect their environmental beliefs. As
the ``swing groups'', their views are
important to manufacturers and
economic developers
Grousers 24 Below average income and less
education who are too busy to do
anything about the environment
Basic browns 28 Lowest incomes and education,
believe there is little individuals can
do about the environment, so they do
not attempt to do much
Table I. Environmental type profile of US consumers

JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999 125

 Environmental H3 (+)
Consciousness Price Premium

H5 (+) H1 (+) H7 (–)

H2 (+) Importance of Willingness-To-Pay

Certification
H4 (+)

H6 (+)
Involvement in
Certification

Figure 1. Conceptual model of willingness to pay for environmentally certified

wood products

H1: There is a positive relationship between consumer environmental

consciousness and their willingness-to-pay a premium for environmen-
tally certified products.
H2: There is a positive relationship between consumer environmental
consciousness and their involvement in environmentally certified
products.
H3: There is a positive relationship between consumer environmental
consciousness and the price premium for environmentally certified
products.

Importance of environmental certification

Environmental certification
A measure of the importance of environmental forestry certification was
developed and cast against consumer willingness-to-pay a premium for
certified wood products. In addition the relationship between importance and
environmental consciousness was tested.
H4: There is a positive relationship between consumer perception of
environmental importance and their willingness-to-pay a premium for
environmentally certified products.
H5: There is a positive relationship between consumer perception of
environmental importance and environmental consciousness.

Involvement in certification
Beyond perceptions of consciousness and importance associated with
environmentally certified products, an indicator of consumer commitment is
the notion of environmental involvement. In this sense the consumer is asked
to indicate actual behaviors to seek out and purchase certified products. It is
hypothesized that the time and effort expended in these behaviors are
translated into a desire or at least a willingness-to-pay a premium for
certified products.
H6: There is a positive relationship between consumer involvement in
certification and willingness-to-pay a premium for environmentally
certified products.

126 JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999


Five wood products
Discerning perceptions
JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999
Price premium
To assess if consumers would be willing to buy products that might bear the
environmental certification, five wood products were chosen. A 200 6 400 6 8'
stud, a ready-to-assemble chair, a dining room set, a kitchen remodeling job and
a new home were chosen for framing of price sensitivity. The Price Sensitivity
Measurement (PSM) is a technique developed as a survey methodology for the
measurement of price perceptions. With this technique surveying involves direct
questioning of respondents about price. The researcher can choose whether to
present the respondent with a range of possible prices, or force a response with
no point of reference other than the concept and the question (van Westendorp,
1976). The structure of the individual questions requires respondents to qualify
their price based on an implied assumption about quality. A similar technique
was designed to capture consumers' willingness-to-pay more for the five
common wood products, given environmental certification.
In the questionnaire, respondents were given a non-certified price for each of
the five products and asked to identify the price they were willing to pay for
an environmentally certified product. Although a segment of consumers
were hypothesized to be willing to pay a premium for certified products, the
premium (as measured by a percentage of the product base price) was
hypothesized to be negatively correlated to willingness-to-pay such a
premium.
H7: There is a negative relationship between price premium and consumer
willingness-to-pay for environmentally certified products.
Research methodology and design
Discerning perceptions regarding environmental certification of wood
products was accomplished through survey development and execution
based on methods recommended by Dillman and described as the Total
Design Method (TDM) (Dillman, 1978). To assess consumers' sensitivity
towards environmental issues and environmental certification, a series of
scaled questions were asked.
Sample design
The development of sample frames from residential consumers was a
prerequisite to primary data collection. Based on those consumers who
would be in the market for a range of environmentally certified wood
products, only residential consumers (homeowners) over 18 years old with
incomes over $30,000 were selected. In addition, equal numbers of males
and females were selected for the sample population. Best Mailing Lists,
Inc., a national sampling service provider, provided names of homeowners
meeting these characteristics. Best provided 2,500 homeowner names and
addresses on a random, nth name basis with every single-family, owner-
occupied US household having an equal and known chance of being
selected.
Of the 2,500 questionnaires mailed, 803 were included in the analysis. Sixty-
seven questionnaires were returned as undeliverable, the respondent was
deceased or the questionnaire was incomplete or otherwise unusable. This
resulted in an adjusted response rate of 33 percent.
Non-response bias
In any survey, based on varying degrees of appropriateness for certain
questions, often specific, non-applicable questions are not answered. It is
also often the case where survey respondents do not provide data at all.
127
 Using two tests, non-response bias was found to be statistically insignificant
(at a = 0.001) by first, comparing responses from first and second mailings
and second, by comparing geographic distributions by state for respondents
to the geographic distribution of non-respondents.

Results
Sample demographic Direct comparisons between this sample demographic profile and US
profile population characteristics are difficult because the sample was restricted to
homeowners over 18 years of age with a household income of $30,000 or
more. However, a comparison with the 1990 Census of Population figures
indicates that the sample includes a larger number of married respondents
(sample 70.4 percent, population 55 percent), a slightly larger number of
male respondents (sample 52.5 percent, population 49 percent), a higher
median age (sample 49, population 32) and a larger number of Caucasian
respondents (sample 94 percent, population 76 percent). It is important to
remember that inferences in this study are made about the consumer sample
and not about the US population as a whole.

Hypothesis testing
Factor analysis Factor analysis (maximum likelihood with varimax rotation) was conducted
on 20 items. This resulted in a reduction to five underlying factors. The
factors were subjected to scale testing with resulting Cronbach alphas
ranging from 0.62 (Involvement in Certification) to 0.90 (Importance of
Certification) (Table II).

Environmental Consciousness (CONINDX) Standardized Cronbach Alpha = 0.81

1. I believe that environmental information on packaging is important
2. I generally believe environmental information on packaging
3. I understand the concept of environmental certification
4. I believe there is much individuals can do to improve the environment
5. I believe there is much corporations can do to improve the environment
Importance of Certification (IMPINDX) Standardized Cronbach Alpha = 0.90
1. I believe there is a need for environmental certification of the harvesting of US
temperate forests
2. I believe there is a need for environmental certification of the harvesting of
tropical forests
3. I believe environmental certification can reduce tropical deforestation
4. I believe environmental certification can help sustain the health of US forests
Involvement in Certification (INVINDX) Standardized Cronbach Alpha = 0.62
1. I have purchased environmentally certified wood products in the past year
2. If available, I would seek out environmentally certified wood products
3. Whenever possible, I buy products which I consider environmentally safe
Price Premium (PREMINDX) Standardized Cronbach Alpha = 0.87
(Five increasing percentage premiums that consumers are willing to pay for five
products with corresponding increasing price points)

Product Non-certified price

00 00 0
2 64 68 $1.00
Ready-to-assemble chair $1.00
Dining room set $1,000
Kitchen remodeling job $5,000
A new home $100,000
Willingness to Pay (WILLINDX) Standardized Cronbach Alpha = 0.72
1. I would pay more for environmentally friendly products
2. I would pay a premium for certified wood products
Table II. Factored constructs and items

128 JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999


Correlation analysis
JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999
Hypotheses tested using correlation analysis
The relationships between factored indices were subsequently tested using
correlation analysis. Following are the results and discussion for the tested
hypotheses.
H1: There is a positive relationship between environmental consciousness
(CONINDX) and willingness-to-pay a premium for environmentally
certified products (WILLINDX).
R2 = 0.50
P = 0.000
Significant and directionally as hypothesized
H2: There is a positive relationship between environmental consciousness
(CONINDX) and environmental involvement (INVINDX)
R2 = 0.59
P = 0.000
Significant and directionally as hypothesized
H3: There is a positive relationship between environmental consciousness
(CONINDX) and the price premium for environmentally certified
products (PREMINDX)
R2 = 0.12
P = 0.000
Significant and directionally as hypothesized
H4: There is a positive relationship between environmental importance
(IMPINDX) and willingness-to-pay a premium for environmentally
certified products (WILLINDX)
R2 = 0.58
P = 0.000
Significant and directionally as hypothesized
H5: There is a positive relationship between environmental importance
(IMPINDX) and environmental consciousness (CONINDX)
R2 = 0.53
P = 0.000
Significant and directionally as hypothesized
H6: There is a positive relationship between consumer involvement
(INVINDX) in certification and willingness-to-pay a premium for
environmentally certified products (WILLINDX)
R2 = 0.64
P = 0.000
Significant and directionally as hypothesized
H7: There is a negative relationship between price premium (PREMINDX)
and consumer willingness-to-pay for environmentally certified products
(WILLINDX)
R2 = 0.51
P = 0.000)
Significant but not directionally as hypothesized.
All hypothesized relationships were found to be significant and all but one
was found to be directionally as hypothesized. Price was found to be
129
 positively correlated to consumer willingness-to-pay for certified wood
products, the inference being that consumers perceive incremental value in
certified products.

Consumer environmental segmentation

Respondents profiles Beyond hypothesis testing respondents were profiled across a categorization
roughly matching the schema found in Table I. In the survey, respondents
were asked to indicate their level of agreement or disagreement with a set of
six statements intended to measure the awareness and commitment to
environmentally friendly products. Cluster analysis was used to discern if
distinct groups could be found that would match the environmental type
profile. It was anticipated that True-Blue Greens would be identified as
respondents who strongly agreed with the six questions and that Basic
Browns would be identified by strong disagreement with the set of questions.
Respectively, the other three categories should correspond to their position
along the five-point Likert-type scale between strongly agree and strongly
disagree on which the questions were anchored.

Consumer segments
Table III provides the results for the five-cluster solution from the cluster
analysis procedure. Included are the mean responses for each cluster on each
question, the sample size for each cluster and a test of difference for the
cluster means. As per the work of Ozanne and Smith (in press), the questions
measure whether respondents:
(1) believe there is a need to certify forests for environmental health;
(2) think certification programs will make a difference in protecting forests;
(3) would seek out or pay more for certified wood products;
(4) understand the concept of certification; and
(5) have purchased certified wood products.
Certification more Based on these dimensions, Cluster 2 (n = 319/803 = 0.40, or 40 percent of
important respondents) views certification as more important than those respondents in
the other clusters; they are also the most involved segment and closely fall
into the ``True Blue Greens'' category. Cluster 1 (n = 116/803 = 0.14, or 14
percent of respondents) is the opposite of Cluster 2, viewing certification as
the least important and being the least involved with certification efforts.
These respondents could be classified as ``Basic Browns''. Cluster 4
(n = 167/803 = 0.21, or 21 percent) ranks second on most questions, except
in regard to whether they understand the concept of environmental
certification. Cluster 3 (n = 120/803 = 0.15, or 15 percent) ranks third on
importance but fourth on certification involvement. Finally, Cluster 5
(n = 79/803 = 0.10, or 10 percent) ranks fourth on importance and third on
certification involvement.
Cluster 2 respondents, who indicate they are the most involved and view
certification as the most important, also indicate that they are willing to pay
the greatest premium for certified wood products. The members of this
cluster can be described in relative terms as most likely a member of the
Democratic party, an environmental organization member, most likely a
woman and politically liberal and constitute approximately 16.5 million US
citizens (Table IV). On the opposite end, Cluster 1 respondents, who
indicate they view certification programs as the least important and are the
least involved segment, are also the least willing to pay a premium for

130 JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999

 1 2 3 4 5
n = 116 n = 319 n = 120 n = 167 n = 79 ANOVAa
Clustering questions: Meanb Mean Mean Mean Mean F Statistic p-value
c
I believe there is a need for environmental certification of the 1.38 4.66 3.74 4.14 2.59 340.39 0.0000
harvesting of US temp forests

JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999

I believe there is a need for environmental certification of the 1.81 4.88 4.46 4.63 2.73 481.57d 0.0000
harvesting of tropical forests
I believe environment certification can reduce tropical deforestation 1.67 4.63 3.88 3.67 2.89 216.82e 0.0000
I believe environmental certification can help sustain the health of 1.56 4.70 3.71 4.00 3.11 301.46f 0.0000
US forests
If available, I would seek out environmentally certified wood 1.44 4.39 2.86 3.66 3.08 255.90g 0.0000
products
I would pay a premium for certified wood products 1.21 4.02 2.33 3.53 2.71 195.65h 0.0000
I believe consumers will pay a premium for environmentally 1.94 3.64 2.29 3.29 2.58 73.34i 0.0000
certified wood products
I understand the concept of environmental certification 2.96 4.38 4.08 2.83 3.16 115.53j 0.0000
I have purchased environmentally certified wood products in the 1.83 3.37 2.26 2.54 2.97 47.89k 0.0000
past year
Notes:
a
A Scheffe one-way analysis of variance (ANOVA) technique was used to test the hypotheses of no difference between the cluster means
b
Mean value of disagreement using a five-point Likert scale: 1 = disagree; 3 = neither disagree nor agree; 5 = agree
c
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5; Group 3 differs from 4,5; and Group 4 differs from 5
d
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5; Group 3 differs from 5; and Group 4 differs from 5
e
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5; Group 3 differs from 5; and Group 4 differs from 5
f
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5; Group 3 differs from 4,5; and Group 4 differs from 5
g
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5; Group 3 differs from 4,; and Group 4 differs from 5
h
Group 1 differs from 2,3,4,5; Group 2 differs from 3,4,5;Group 3 differs from 4,5; and Group 4 differs from 5
i
Group 1 differs from 2,4,5; Group 2 differs from 3,4,5; Group 3 differs from 4; and Group 4 differs from 5
j
Group 1 differs from 2,3; Group 2 differs from 3,4,5; and Group 3 differs from 4,5
k
Group 1 differs from 2,4,5; Group 2 differs from 3,4,5; Group 3 differs from 5; and Group 4 differs from 5
Table III. Final cluster centers for certification profiles

131
132
Cluster 2 Cluster 3 Cluster 4 Cluster 5
Characteristic Cluster 1 n = 116 n = 319 n = 120 n = 167 n = 79
Chi-squarea Signif
Mean or percentage of cluster (proportion)
Democrat 0.09{ 0.34 0.28 0.36 0.31 14.09b 0.0070
Environmental group member 0.06 0.15 0.06 0.15 0.09 9.51c 0.0496
Gender (percentage female) 0.27{ 0.51 0.40 0.53 0.39 16.00d 0.0030
Political view{ 3.79 3.21 3.47 3.26 3.41 22.67e 0.0001
Republican 0.75{ 0.40 0.57 0.32 0.51 35.95f 0.0000
Age 51.1 51.6 48.9 49.9 51.9 3.70 0.4477
Education level 3.59 3.58 3.56 3.50 3.52 1.03 0.9056
Income level 4.17 3.54 3.81 3.47 3.74 6.23 0.1825
Notes:
{ Percentage or proportion of cluster
{ Measure of political orientation: 1 = extremely liberal to 5 = extremely conservative
a
A Kruskal-Wallis one-way analysis of variance (ANOVA) techniques was used to test the hypothesis of no difference between the clusters
b
Group 1 differs from 2 and 4
c
Group 1 differs from 2,4; Group 3 differs from 2,4
d
Group 1 differs from 2 and 4
e
Group 1 differs from 2 and 4
d
Group 1 differs from 2,4; Group 3 differs from 2,4
Table IV. Consumer segments compared on selected demographic characteristics

JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999

 certified wood products. Cluster 1 members are most likely a member of
the Republican party, not a member of an environmental organization, most
likely a man and politically conservative.

Summary
This research examines the relationships between intrinsic environmental
motivations and the willingness-to-pay a premium for environmentally
certified products. The data suggest that there are positive correlations
between the willingness-to-pay and the independent variables in the model,
environmental consciousness, certification involvement and perceived
importance of certification. In addition, consumer awareness and beliefs
about the environment and wood products' environmental certification may
also influence purchasing patterns. A cluster of US consumers was identified
that has a proclivity to purchase certified wood products and may be a logical
target market. This research also shows that this target market may be
willing to incur an additional cost. This consumer profile may be beneficial
for market segmentation and product positioning decisions regarding
environmentally certified products.

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&

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 This summary has been
provided to allow managers
and executives a rapid
appreciation of the content
of this article. Those with a
particular interest in the
topic covered may then read
the article in toto to take
advantage of the more
comprehensive description
of the research undertaken
and its results to get the full
benefit of the material
present
JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999
Executive summary and implications for managers and
executives
Green issues are here to stay ± make the most of it
There is ± among consumers ± a certain cynicism about the ``green'' claims
made by marketers. Just as claims about health-giving or ``revitalising''
properties are often doubted, the use of ``green'' messages can be seen as
exploiting consumer sympathy for the ethics of the environmental movement.
One suspicion is that firms use ``green'' claims as an excuse to charge more
and make bigger profits.
Despite this cynicism, there is a group of consumers who willingly pay more
for products that make ``green'' claims ± substantiated or otherwise. Vlosky
et al. identify this segment in their research into ``green'' wood products ±
16.5 million US citizens who vote Democrat and have ``Liberal'' views on the
environment and other issues.
On top of this group there is a second group who sympathise with the ethical
basis of environmentalism but lack the willingness to make personal efforts
in supporting those ethics. This group ± a ``swing'' group to marketers ±
represents the key target for ``green'' marketers. If the marketer can
persuade these people to buy their product because it is ``green'' then they
have achieved a significant breakthrough.
Two questions arise from this research and relate to the debate about the
validity and effectiveness of ``green'' marketing appeals:
(1) Is the making of ``green'' claims (substantiated or otherwise) a marketing
tool or an ethical position on behalf of the business concerned?
(2) Is the importance of ``green'' opinions a real shift in public opinion or a
reflection of attention given to such issues?
``Green'' claims ± ethics or exploitation
Some really ``green'' environmentalists would argue that the materialist,
consumer society is the real enemy. From this standpoint, profit-making,
capitalist enterprises cannot, by definition, be environmentally responsible.
Such environmentalists reject the assumption of progress implicit in the
eighteenth century enlightenment, in Marxism and in modern centrist
democracies. They share this view with communitarian Conservatives since
the key tenet is the ``wrongness'' of Liberal ideas.
These ``ultra-greens'' represent the driving force of the environmentalist
movement. Such people provide the reminder that the environmentalist faith
requires the rejection of materialism and the embracing of self-sufficiency,
local community and harmony with nature. Those influenced by such ``ultra-
greens'' can be seen as compromising the ethics but are vital to the cause ±
environmental Mensheviks.
There is an ethical and philosophical basis to ``green'' claims but most of
such claims, however truthful, do not imply agreement with the true
environmentalist faith. This brings us to a different type of environmentalist
who accepts capitalism but sees a role for the state and individuals in
mitigating (and ultimately removing) those aspects of modern market
economies that damage the environment and are unsustainable. This is very
much the Body Shop, Ben & Jerry position. Few people doubt the sincerity of
the people promoting this position which means that their ``green'' claims
are believed.
135
 Finally we come to the majority of firms promoting ``green'' products or
making other ``green'' claims in their marketing. The ``ultra-greens'' will
claim that such organizations exploit the ``green'' message for commercial
gain, making them, in some ways, worse than the people who reject ``green''
messages. But, as Vlosky et al. report, commercialism is not wholly out of
step with environmentalism. The key to the ``real'' environmental claim is its
truth. Vlosky et al. examine the independent certification of wood products as
from sustainable sources and show that consumers want such information,
that it influences their attitude to the producer and, for some at least, makes
a profound difference to purchasing behaviour.
``Green'' marketing claims can be either genuine (as for the wood product
certification described here) or exploitative (the use of natural images in
advertising a wholly artificial product). And it appears to be the case that
consumers warm to the former type of claim and treat the latter with the
healthy cynicism they deserve.

Are ``green'' issues here to stay?

Some observers argue that popular support for environmentalism reflects
economic wellbeing and, when recession comes, support for ``green'' causes
evaporates. Such people point to the 15 per cent support for the UK's Green
Party in the 1989 European Parliament elections and note that this support
largely disappeared during the recession of the following few years.
Other critics of environmentalism see the ``green'' position as something
associated with rich, materially-secure societies such as those in Europe and
the USA. Just as people used to say of wealthy socialists ``he can afford to be
left wing'', we see the same point being made about environmentalists.
Clearly the creation of sustainable stasis in the world is bad news for the
poor ± yet that appears to be the position of some ``ultra-greens''.
However, the crucial ``green'' messages of sustainability, resource-neutral
production and protection of ecosystems have become largely accepted (if
not necessarily implemented). Talk of global warming, destruction of the
ozone layer and the rainforests all inform ordinary opinions. Link these
issues with opposition to local greenfield development of housing or
industry, animal rights campaigns and concern with pollution and we can
see that the influence of environmentalism now runs right through society.
The position of ``green'' issues on the political agenda will vary but there can
be no doubt that public attitudes have changed. We may dislike the tendency
for theories to be treated as facts (causes of global warming), NIMBY
attitudes (on greenfield development for example) and criticism of
established and sustainable practices (opposition to hunting). But the
pressure remains for us all ± and industry especially ± to take a more
responsible attitude to the environment.
Economic growth is not incompatible with sustainability but businesses that
exploit ``green'' issues damage those organizations making genuine efforts to
develop environmentally-responsible production, distribution and marketing.
The use of independent, third parties in substantiating ``green'' claims is one
way to overcome the cynicism about real business motives. And, as Vlosky et
al. show, real claims are effective with a growing part of the market.
(A preÂcis of the article ``A conceptual model of US consumer willingness-
to-pay for environmentally certified wood products''. Supplied by
Marketing Consultants for MCB University Press.)

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