The Roles of Environmental Labels as Marketing Communication Tools

Abstract

Nowadays, many products and services that reduce the environmental load and/or promote environmental protection are being developed by many companies. They promote them using various environmental communication methods such as environmental labels, reports, and advertisements. However, many consumers still doubt the quality and efficiency of these products. This, together with the lack of knowledge on environmental problems, results in the fact that the level of demand for environmentally friendly products is not necessarily high. In this paper, we examine the effects of environmental labels as a marketing communication tool in order to promote the purchase of various types of environmentally friendly products. We first refer to consumers’ cognition of environmental problems and analyze the mechanism of consumers’ purchase behaviors of environmentally friendly products. Then we point out the advantages and disadvantages of environmental labels as a marketing communication tool compared with the other marketing tools. Many previous studies have indicated that the perceived consumer effectiveness, (that is the belief that this product will lead to protection from some environmental problem), is the most important factor that influences consumers’ ecological attitudes and/or behavioral patterns. However, according to the study of Nishio & Takeuchi (2006), the perceived consumer effectiveness helped to form positive attitudes toward ecological products, but not promote their purchase. The factors influencing a consumer’s choice of environmentally friendly products are: perceived benefits (it leads to reducing family expenses); perceived rewards (the choice itself is interesting and fun); reducing perceived costs (it does not need any costs or efforts); ease of implementation and product availability (it is easy to buy at local shops), norms of social groups (friends and/or family recommend it), and also credibility to its quality and efficiency. Such environmental labels as Eco-Marks and Energy Saving Labels have well-organized labeling certification systems. Thus, these labels are highly reliable communication tools compared with the other marketing tools. They also increase consumers’ attentions and understanding of the environmental problems and support for efforts to alleviate those problems. However, in order to promote purchase of environmentally friendly products and pro-environmental lifestyles, two-way communication and/or customized information adjusted to the level of each consumer’s knowledge is needed. The other marketing tools such as events, direct marketing promotions and internet communications are more effective than environmental labeling. Therefore, marketers should understand the features of each communication tool and integrate various types of communication tools in order to build the brand equity.