Consumers Opportunities of and Interest in Purchasing Green Electronic Products

3 Four consumer types

3.1 Segmenting consumers
3.2 Strategic use of segmenting analysis
      3.2.1 Possible follow-up on this study
3.3 What characterises the segments?
      3.3.1 The converted
      3.3.2 The convertible
      3.3.3 The accessible
      3.3.4 The inaccessible

3.1 Segmenting consumers

The following consumer segmenting is inspired by Gallup’s experience with the Conversion Model, which is able to form a picture of consumers’ brand loyalty. The model operates with customers and non-customers of a certain brand or retailer. In the group of customers or “users”, consumers are classified according to commitment - i.e. their degrees of allegiance to a given brand.

In this study, the challenge lay in translating the model into a description of consumer loyalty to the environment instead of to a given brand.

In an attempt to divide consumers according to environmental loyalty, they were separated into four groups.

The converted - the consumers who are already positive to the environment, both in terms of electronic products and other consumer areas.

The convertible - the consumers who are, just under the surface, positive to the environmental aspect of electronic products.

The accessible - the consumers who are less environmentally positive than the convertibles, but who may with some persuasion become green consumers of electronic products.

The inaccessible - the consumers who are less positive to the environment and where nothing indicates that this will change, neither for electronic products nor for other consumer areas.

The respondents distribute on the segments as follows:

Click to see html-version of: Tabel 3.1
Click to see html-version of: Tabel 3.1
 

3.2 Strategic use of segmenting analysis

The segments are interesting for an information strategy. If we want to launch a positive spiral of sale and development of green products, consumers have to demand green electronic products. The survey shows that consumers lack knowledge on the environmental impacts of electronic products.

Information to consumers could be targeted at the segments. The two middle segments, especially, can be shifted in a more environmentally positive direction.

The converted are already convinced green consumers. Most of all, they need producers to use already available eco-labels and make green products visible. They are then ready to buy the products and already do so as far as possible. The small number of converted consumers (4%) should be interpreted in the light of the opportunities producers and retailers offer consumers to be environmentally conscious.

The convertible form an obvious group to stimulate in demanding green electronic products. They already buy green in other product areas and do not mind paying a little extra for the products. They are also prepared to become green electronic products consumers. As potential consumers of green electronic products, they need information on the environmental impact of electronic products and on the environmental requirements that are most relevant for the consumer to pose.

After the converted, this group is the most aware of energy and eco-labels. Eighty-five percent of the convertible are familiar with the Swan label, and 22% with the Energy Arrow. Overall, they trust the eco-labels.

Almost half (48%) are prepared to take environmental considerations, even though the product becomes more expensive. Another 32% are willing to make environmental considerations if the product costs the same.

Likewise, the accessible are a key target for information. The members of this group can be influenced to become greener in their product choices, but they may also become less green and thus inaccessible if they are not positively influenced.

Their attitudes are predominantly positive to environmental considerations, but they are not as willing to pay for it as the two previous groups. Even so, 26% of the group are prepared to pay more for environmental considerations, and 34% will take environmental considerations if the price is the same. Energy-related environmental requirements entailing financial benefits to consumers would probably appeal to this group.

This group believes less in consumers’ possibilities of making a difference, and perceives the central government to be primarily responsible for reducing environmental problems.

The accessible group’s inferior awareness of the environment and eco-labels is poorer than the convertible’s, but even so 71% of the segment know the Swan label. The Energy Arrow is familiar to only half as many as the converted (19%). The group has less confidence in eco-labels than the two previous segments; 42% of the group rate the eco-labels as unreliable.

The inaccessible do not give weight to green purchasing, neither in purchasing electronic products nor other products. They are unwilling to pay more for less polluting products, and everyone in this group sees the solution of environmental problems as the central government’s responsibility.

Only 10% trust the eco-labels, and this group’s awareness of eco-labels is the lowest of the four segments.

They are a group of consumers needing more than information to change their behaviour.

3.2.1 Possible follow-up on this study

Following an environmental initiative or campaign focusing on electronic products, it would be interesting to see if the segments have shifted, for instance, whether consumers’ brand awareness has grown or whether their perception of environmental problems relating to electronic products has changed. A few central questions could be picked out and repeated, thus providing an indication of whether consumers have shifted.

3.3 What characterises the segments?

Generally, the four segments show that the longer the education the respondents in the segments have, the more positive their attitudes to environmental aspects are. This also applies to household incomes. The higher the income, the more environmentally positive.

A certain difference can be traced in the segments’ political affiliations. On the other hand, the types of dwelling are largely the same in the four segments. Nor do the segments’ distribution between town and country differ significantly.

The following describes the segment characteristics.

3.3.1 The converted

Gender and age
In this segmenting analysis the converted only count 25 people or 4% of the total group. Thus, the data basis for this group is slim.

The converted segment contains an almost equal number of men and women, 52% and 48%. Thus, the women are overrepresented compared to the total number of replies, where 39% are women. A large share of the converted are aged between 40 and 59 years.

Click to see html-version of: Tabel 3.2

Click to see html-version of: Tabel 3.2

Education and income
The converted are well-educated. Only very few of them have no education. One-third of the consumers in this group have a medium-long education. Seventeen percent have completed a higher education, and 17% are under education. Of the four segments, the converted are the consumers with the longest educations.

The converted is also the segment with the largest household incomes and the largest disposable incomes for daily consumption when all regular expenses are paid.

Political position
The converted differ from the average consumers in that more vote for the Social Democratic Party (44% of the converted against 19% in the total group). A far lower number of the converted vote for the Liberal Party than the average of consumers in this study, i.e. 4% against 26%. Note that the low number of respondents gives rise to great uncertainty in the political distribution.

Click to see html-version of: Tabel 3.3
Click to see html-version of: Tabel 3.3

Dwelling
The converted do not differ significantly from the other consumers in their choice of dwelling. Neither is there a significant difference between town and country in the four segments. Only slightly fewer of the converted live in the country, while more live in towns with 5,000 - 99,000 inhabitants.

3.3.2 The convertible

Gender and age
The convertible number 204 respondents, corresponding to 29% of the total group. Fifty-four percent are men, 46% are women. Thus, this group has proportionally more women than the total group, where women account for 39%.

The convertible distribute on age as follows:
Click to see html-version of: Tabel 3.4
Click to see html-version of: Tabel 3.4

which is very close to the age distribution of the total group.

Education and income
In terms of education, the convertible form the group most similar to the total group. The distribution only differs by a few percent. The convertible is the group with the second highest household incomes.

Political position
The convertible resemble the average consumers in terms of the party they vote for.

Click to see html-version of: Tabel 3.5
Click to see html-version of: Tabel 3.5

Dwelling
The convertible do not differ significantly from the other consumers in their choice of dwelling (no table). Neither is there any significant distribution between town and country compared to the total group of respondents. Only slightly more convertible consumers live in major towns, while fewer live in towns with less than 5,000 inhabitants.

3.3.3 The accessible

Gender and age
The accessible number 64% men and 36% women, which virtually mirrors the distribution seen in the total group of respondents (61% and 39%).

In terms of age, the group breaks down as follows:
Click to see html-version of: Tabel 3.6
Click to see html-version of: Tabel 3.6

Education and income
The accessible group shows a slight tendency of having an above average number of vocationally trained, and fewer with a higher education.

The accessible are closest to the total group in terms of disposable household income surplus for daily use. In terms of household income, the group comes third of the four segments.

Political position
A few less than the average vote for the Social Democratic Party, while slightly more vote for the Liberal Party or the Conservative Party.

Click to see html-version of: Tabel 3.7
Click to see html-version of: Tabel 3.7

Dwelling
The dwellings of the accessible reflect the average. Half of them live in houses, 11% in semidetached housing, 7% in rural housing and 30% in blocks of flats. The remainder lives in other types of dwellings.

3.3.4 The inaccessible

Gender and age
The inaccessible consist of 65% men and 35% women, or a slight overrepresentation of men compared to the total group.

Compared to the average, the group has fewer in the age group 40-59 years, with more of them in the group +60 years.

In terms of age, the group breaks down as follows:
Click to see html-version of: Tabel 3.8
Click to see html-version of: Tabel 3.8

Education and income
The inaccessible have a larger number of respondents with no education past mandatory school attendance, but also more with a higher education than in the average.

The inaccessible are the group among the four segments with the lowest household incomes.

Political position
Compared to the total group, slightly fewer of the inaccessible vote for the Liberal Party. In contrast, more vote for the Danish People’s Party (18% against 8% in the total group).

Click to see html-version of: Tabel 3.9
Click to see html-version of: Tabel 3.9

Dwelling
Slightly more of the inaccessible live in houses compared to the other three groups. Fewer live in semidetached housing and blocks of flats.