Reference no: EM133410373

Case Study: Jill thinks all dishwashing soaps are alike, so she buys the cheapest brand. Jack buys the brand of laundry detergent his mom always bought. Consumers typically have low involvement with the decision to buy household cleaning products and make quick choices. But Elena researches nontoxic cleaning supplies in detail before her baby is born.

The market for green cleaning products was pioneered by small firms like Seventh Generation, Inc., which, in 1988, started selling environmentally friendly household products in health food stores and specialty stores. Two decades later, in 2007, green cleaners still accounted for less than 1% of cleaning product sales, even though surveys found that 60% of consumers were "concerned about the impact cleaning products have on the environment." Only truly committed green consumers will make an extra trip to a specialty store to pay more for utilitarian looking products that are perceived to be less effective because they are environmentally safer.

Even though mainstream consumers aren't willing to sacrifice price, convenience, quality, and other product benefits for the sake of greener products, they will use green features to break a tie between otherwise comparable brands. Marketers have used this knowledge to introduce a host of new green cleaners.

Two young entrepreneurs launched Method®, an environmentally friendly line of cleaning products that differentiates itself from other brands-green and non-green alike-by innovative, stylish packaging. For example, Method's Le Scrub bathroom cleaner has a built-in sponge holder. Method is sold at specialty stores and mass market retailers like Target, at about twice the price of traditional brands. The cofounders believe that style "creates mass market relevance for a green product" and that consumers discover Method because of its trendy designer look, find that they love the fragrance, and then "discover it's good for you-it's that third piece that drives loyalty." Perhaps that explains the company's sales growth from about $90,000 in 2001 to $77 million in 2006.

The market for green cleaners took off in 2008, when the Clorox Company launched its Green Works® line of cleaners. Green Works became the market leader the next year, with $200 million in sales (42% share of the green cleaner market). Interestingly, Green Works' success didn't come at the expense of Seventh Generation and Method-sales of those products didn't drop; Green Works attracted consumers from mass market brands. This is consistent with Green Work's strategy to target "chemical-avoiding naturalists," who want a greener cleaner, but view existing options as not working well, not coming from brands they know or trust, and not generally available where they shop.

The Green Works line launched with five products: an all-purpose cleaner, a glass cleaner, a toilet bowl cleaner, a dilutable cleaner, and a bathroom cleaner. The line was quickly expanded to include dishwashing liquid, laundry products, and biodegradable wipes. The products were priced 20% higher than typical cleaners, considerably less than Seventh Generation or Method's 100% higher price. As a large company, Clorox was able to launch Green Works with a substantial advertising campaign (e.g., 30-second television spots and use of social media) and broad retail distribution (e.g., Walmart agreed to provide prominent shelf space and other forms of in-store promotion).

Green Works cleaners are green-tinted liquids sold in recyclable bottles with a prominent yellow flower on the label. The products have been promoted as made from natural, plant-based ingredients with no harsh chemical fumes or residues. One claim, for example, was that "clothes washed in Green Works are gentle on skin." Consumers who read the label or the website find the product is made from ingredients such as coconuts and lemon oil and is biodegradable, non-allergenic, and not tested on animals. The products are formulated to have a pleasant fragrance rather than a strong "cleaner" odour.

Rather than downplaying the connection between Green Works and Clorox, the company emphasized the link to promote the new brand as dependable and effective. Likewise, the Green Works brand name was chosen to counter consumer beliefs that natural cleaners don't work. Green Works was initially promoted in ads and on the package as working just as well as traditional cleaners. A competitor complained to the National Advertising Division (NAD) of the Council of Better Business Bureaus. NAD determined that Green Works was not as effective as traditional cleaners in grease removal and that consumers might incorrectly assume the product to be a disinfectant. Green Works agreed to stop claiming "works as well" as other cleaners.

Because Clorox is known for bleach and "chemical" cleaners, Green Works has used third-party endorsements to reassure consumers about the legitimacy of its environmental and health features:

• From its inception, Green Works packaging has displayed the Design for Environment (DfE) logo. DfE certification means a product only contains ingredients that pose the least concern among chemicals in their class. Few consumers recognize or understand the DfE criteria, but the logo indicates that DfE is sponsored by the well-respected U.S. Environmental Protection Agency.
• Four months after product launch, packaging displayed the Sierra Club logo. This well-known non-profit agreed to the use of its logo to help "move" the market to offer more environmentally preferred products, and in return for a percentage of sales ($470,000 in 2008). Although not widely known among mainstream consumers, this arrangement was criticized by some as a conflict of interest and inappropriate because the club's expertise is public policy, not consumer-product chemistry.
• Almost two years after product launch, Green Works added Good Housekeeping's new green label to its bathroom cleaner. This "green" certification is not particularly rigorous, but the Good Housekeeping seal is widely recognized.

Green Works is not the only firm pursuing third-party endorsements. Method now carries significant sustainability certifications such as Cradle-to-Cradle, DfE, and B-Corp. Do eco-labels add value for the consumer? Credible labels relating to the product's most important ecological and social attributes can help consumers distinguish truly green products from products engaged in greenwashing. Unfortunately, a proliferation of new eco-labels-including in-house labels without independent verification-has caused consumer doubt about the relevance, rigor, and credibility of labels.

Green Works' success demonstrates that environmentally preferred products appeal to mainstream consumers-in one year, Green Works doubled sales in the green cleaner market. Sales in this market are expected to grow rapidly as other established firms introduce their own green lines and the price premium for green drops. Mintel, a prominent research firm, predicts the green share of the cleaning market will grow from 3% in 2008 to 30% by 2013. The green cleaner market contributes to a paradigm shift that is redefining what it means for a product to provide good value. Price, efficacy, and availability are still desired attributes-but a good product today is increasingly one that is also safe for people and the planet. How much longer will Jill continue to view all cleaners as alike?

Question: Please answer this question:

What type of purchase decision-making does Jill make? Explain.