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	<title>Marketing Green</title>
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	<description>Green Marketing Strategies for a Sustainable Future</description>
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		<title>Marketing Green</title>
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		<title>Three Lessons for Fulfilling on a Green Brand Promise</title>
		<link>http://marketinggreen.wordpress.com/2012/01/29/three-lessons-for-fulfilling-on-a-green-brand-promise/</link>
		<comments>http://marketinggreen.wordpress.com/2012/01/29/three-lessons-for-fulfilling-on-a-green-brand-promise/#comments</comments>
		<pubDate>Sun, 29 Jan 2012 20:32:58 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Brand engagement]]></category>
		<category><![CDATA[Climate Change]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Consumer beliefs]]></category>
		<category><![CDATA[Consumer engagement]]></category>
		<category><![CDATA[environmental marketing]]></category>
		<category><![CDATA[Global Warming]]></category>
		<category><![CDATA[Green Brands]]></category>
		<category><![CDATA[Green Consumerism]]></category>
		<category><![CDATA[Greenwashing]]></category>
		<category><![CDATA[Products]]></category>
		<category><![CDATA[Sustainable marketing]]></category>

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		<description><![CDATA[When it comes to the environment, consumer behavior can be inconsistent or even a bit hypocritical.  Two-car families will buy a hybrid and a gas guzzling SUV.  Parents will teach their kids to turn off the water while brushing, but take a few extra minutes in the shower to enjoy the peace and quiet.  Somehow, [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=493&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>When it comes to the environment, consumer behavior can be inconsistent or even a bit hypocritical.  Two-car families will buy a hybrid <em>and</em> a gas guzzling SUV.  Parents will teach their kids to turn off the water while brushing, but take a few extra minutes in the shower to enjoy the peace and quiet.  Somehow, we tend to overlook our own inconsistencies, while holding others accountable for their actions.</p>
<p>Perhaps, then, it should not be surprising that consumers tend to be less forgiving of a brand’s missteps than their own.  They are quick to assume green washing regardless of good intensions.  </p>
<p>Why is it that consumers hold green brands to a higher standard than they do themselves?</p>
<p>It is not an easy question to answer.  Certainly, as human beings, we have a harder time taking stock of our own actions than another’s.  But, the distinction goes further.</p>
<p>First, consumers turn to brands as a form of self-expression based on who they are today, or who they ideally want to be.  For consumers to do so, brands need to clearly articulate what they believe in and be consistent in how they express these beliefs.  Arguably, this is especially important for green brands, as most mainstream consumers tend to be less familiar with them or how they benefit the environment.  As a result, consumers tend to rely more heavily on green brands for guidance when making purchase decisions.</p>
<p>Second, consumers expect green brands to deliver on promised reductions in environmental impact.  When they don&#8217;t, consumers feel disappointed that expectations are not met, or frustrated because, despite good intensions, they are not able to make a positive impact that they anticipated.</p>
<p>A recent personal example:</p>
<p>For the past year, I have turned to <a href="http://www.ozocar.com/">OZOcar</a>, the eco-friendly car service, to help me reduce my eco-impact from business travel.  On one recent occasion, OZOcar ran out of cars and farmed my ride out to one of several livery companies in its network.  Instead of a Prius, the vehicle that arrived was a gas-guzzling Suburban.  An eco-friendly car service providing about the least eco-friendly ride.   In marketing terms, the Suburban was off brand.  </p>
<p>While this was not part of my typical experience with OZOcar, it offered clear lessons for all brands: </p>
<p><strong>Be clear about what a brand promise is and isn’t</strong>.  Brands should set clear expectations about their brand promise.  For example, it is not unreasonable for a small company like OZOcar to send a gas-powered substitute – preferably a sedan instead of an SUV – when its fleet is being fully used.  That said, brands should clearly set expectations upfront so that consumers know what to expect and are not free to interpret perceived (or actual) inconsistencies in their own way.</p>
<p><strong>Fulfill on a brand promise, or modify the promise</strong>.  A customer service manager at OZOcar did offer to change my individual profile to state that I did not want to be picked up in an SUV.  I asked if they would consider changing their policy so that their network would not send SUVs to any OZOcar customers.  They said that they would look into it.</p>
<p><strong>Know how consumers perceive a brand. </strong>What matters most is not what a brand says about itself, but how consumers perceive it.  As such, marketers should stay abreast of how consumers perceive their brand by soliciting feedback during customer interactions or monitoring (and perhaps joining) online conversations in social media.  This will enable a brand to quickly adjust its messaging – or its offering – to reinforce its brand promise.</p>
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			<media:title type="html">dwigder</media:title>
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		<title>Can Flash Mobs Engage Consumers on Green?</title>
		<link>http://marketinggreen.wordpress.com/2011/12/21/can-flash-mobs-engage-consumers-on-green/</link>
		<comments>http://marketinggreen.wordpress.com/2011/12/21/can-flash-mobs-engage-consumers-on-green/#comments</comments>
		<pubDate>Wed, 21 Dec 2011 14:11:01 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Brand engagement]]></category>
		<category><![CDATA[Climate Change]]></category>
		<category><![CDATA[Consumer behavior change]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Consumer engagement]]></category>
		<category><![CDATA[environmental marketing]]></category>
		<category><![CDATA[Flash mobs]]></category>
		<category><![CDATA[Green Brands]]></category>
		<category><![CDATA[Green Marketing]]></category>
		<category><![CDATA[Green Social Media]]></category>
		<category><![CDATA[Recycling]]></category>
		<category><![CDATA[Sustainability]]></category>
		<category><![CDATA[Sustainable marketing]]></category>
		<category><![CDATA[Flash Mobs]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=477</guid>
		<description><![CDATA[Recently, National Grid launched a surprise dance performance in a Saugus, MA mall as part of its &#8216;Tap into Savings&#8217; campaign.  In many ways, this performance resembled a flash mob, with dancers appearing seemingly from nowhere to engage an unsuspecting crowd of shoppers, and then dispersing. As a social phenomenon, the flash mob emerged in [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=477&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Recently, National Grid launched a surprise dance performance in a Saugus, MA mall as part of its &#8216;Tap into Savings&#8217; campaign.  In many ways, this performance resembled a flash mob, with dancers appearing seemingly from nowhere to engage an unsuspecting crowd of shoppers, and then dispersing.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/gltNp0g78Bc?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>As a social phenomenon, the <a href="http://en.wikipedia.org/wiki/Flash_mob">flash mob</a> emerged in the early 00’s, enabled by Internet and mobile connectivity. While some flash mobs organize spontaneously, most are actually well-choreographed events that often captivate unsuspecting audiences where they occur.  One of the most viewed flash mobs was a choreographed rendition of “Do Re Mi” from <em>The Sound of Music</em> in Central Station Antwerp, Belgium.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/7EYAUazLI9k?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>While flash mobs are no longer the rage, marketers have periodically embraced the medium, as they consider it a tested way to engage new audiences and promote viral marketing.  Two corporate flash mobs are stand outs: First, in 2009, <a href="http://www.clickliverpool.com/news/national-news/122434-t-mobile-liverpool-street-station-flashmob-ad-storms-youtube.html">T-Mobile</a> sponsored a flash mob in 2009 at Liverpool Station, London.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/mUZrrbgCdYc?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>More recently, <a href="http://thefinancialbrand.com/18345/wells-fargo-times-square-flash-mob-video/">Wells Fargo</a> sponsored a flash mob in New York City’s Times Square as part of their 2011 launch (rebranding of Wachovia) in the city.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/xjG9ggZmttk?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>Marketers in the green space have also embraced the flash mob, though primarily to make political statements rather than promote brands.  One such statement was made by students at the <a href="http://www.wiserearth.org/resource/view/61661a09a8ab1378b420d6c6287acea4">University of Catania</a> in Sicily in its “The World Has Been Stripped Enough” flash mob for the 2011 World Environment Day.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/_pMHibCOlDE?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>Intriguingly, as green marketers and brands try to engage a more mainstream audience, it seems that there is broader role that flash mobs can play.  Specifically, flash mobs can:</p>
<p><strong>Capture and hold attention.</strong>  Flash mobs capture consumer attention through the element of surprise, and hold it by being entertaining.</p>
<p>Green marketers can take advantage of this by turning the event into a teachable moment, especially when engaging audiences that might not ordinarily tune into an environmental message.  National Grid, for example, used its dance performance to teach shoppers about energy savings.</p>
<p><strong>Reach fragmented audiences.  </strong>As channels have proliferated and audiences become more fragmented, marketers have had to respond by investing across more channels in order to be able to reach their intended audience.  In an ideal world, flexible creative assets can be produced all at once and then distributed across various channels.  Flash mobs offer a great example of a tactic that naturally aligns with this shift.</p>
<p>Take T-Mobile, for example.  While the flash mob captured the momentary attention of the surrounding crowds, it was also filmed for a TV spot that aired 36 hours later.  Video cuts were also distributed through channels like YouTube and viewed by millions more users.  This use of flexible assets enabled T-Mobile to get the most out of a single event.</p>
<p><strong>Cultivate peer endorsements</strong>.  Marketers recognize that consumer endorsements can influence the behavior and beliefs of their peers.  Many marketers take advantage of this today by actively encouraging such endorsements as a key objective of the campaign.  Interestingly, flash mob dynamics may facilitate consumer endorsement more deliberately, or perhaps even enable a marketer to stage it.</p>
<p>A flash mob sponsored by TVA Canoe, an Internet TV site in Quebec, provides a great example of this. In this case, flash mob participants effectively reversed roles with unwitting bystanders.  To initiate the flash mob, a performer left an empty plastic bottle on the ground next to a recycling container in a well trafficked area of a mall. Shoppers filed pass the plastic bottle without much notice, while participants waited, blending in amongst the crowds.</p>
<p>Then, one woman, an unwitting bystander, picked up the bottle and put it into the recycling container. When she did, she was met with a standing ovation from the flash mob ‘audience’.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/RODr0Fg8pNc?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>From a bystander&#8217;s view point, it looked as if fellow shoppers spontaneously broke into applause in response to an altruistic act by a peer.  Such overwhelming praise has the potential, in of itself, to be perceived by consumers as a peer endorsement, reinforcing the positive behavior in the minds of the consumer audience</p>
<p><strong>Transform brand enthusiasts into participants</strong>. It is important for marketers to remember that green consumers tend to be passionate about not only what the brand stands for, but how much they can reduce their impact by choosing one product or brand over another.</p>
<p>Marketers should cultivate this sentiment by finding meaningful ways for enthusiasts to interact with the brand and share those experiences with others.  One way may be to invite enthusiasts to actually participate in a flash mob itself.  What better way to engage with the brand?  It certainly provides fodder for generating and sharing social content afterwards.</p>
<p>It has been a decade since flash mobs emerged as a social phenomenon.  Over that time, marketers have embraced the medium to drive engagement and encourage viral marketing.  Interestingly, green marketers challenged to engage mainstream audiences may find the flash mob especially useful in reaching target audiences and influencing behavior change.</p>
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			<media:title type="html">dwigder</media:title>
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		<title>Facebook Timeline&#8217;s Green Marketing Opportunities</title>
		<link>http://marketinggreen.wordpress.com/2011/11/26/facebook-timelines-green-opportunities/</link>
		<comments>http://marketinggreen.wordpress.com/2011/11/26/facebook-timelines-green-opportunities/#comments</comments>
		<pubDate>Sat, 26 Nov 2011 03:12:18 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Blogging]]></category>
		<category><![CDATA[Brand engagement]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Consumer engagement]]></category>
		<category><![CDATA[Consumer generated content]]></category>
		<category><![CDATA[Eco-brands]]></category>
		<category><![CDATA[Green Brands]]></category>
		<category><![CDATA[Green Marketing]]></category>
		<category><![CDATA[Media]]></category>
		<category><![CDATA[Personal web]]></category>
		<category><![CDATA[Social Networking]]></category>
		<category><![CDATA[Sustainable marketing]]></category>

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		<description><![CDATA[Over the past few years, we have seen the web transform from a medium that facilitates information exchange to one that enables social connections and conversation.  Arguably, the recent launch of Facebook&#8217;s Timeline marks another milestone for the web, enabling a web experience more personal than ever before. Timeline facilitates the sharing of a user’s [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=461&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Over the past few years, we have seen the web transform from a medium that facilitates information exchange to one that enables social connections and conversation.  Arguably, the recent launch of Facebook&#8217;s Timeline marks another milestone for the web, enabling a web experience more personal than ever before.</p>
<p>Timeline facilitates the sharing of a user’s life story – both the portion already written and the one still unfolding. It does so by transforming the current Facebook profile into an unending digital scrapbook of sorts.  Facebook reorganizes and summarizes available personal data such as likes, apps and photos into a timeline.  Users are then encouraged to fill in the gaps, especially meaningful events that predate their time on Facebook.</p>
<p>What makes Timeline so different is that it enables users to share their lives in an easily accessible, highly visual chronology, rather than simply post thoughts in the here and now.  A living memoir, if you will.</p>
<p><iframe width="450" height="253" src="http://www.youtube.com/embed/v67PFmVvqDs?fs=1&#038;feature=oembed" frameborder="0" allowfullscreen></iframe></p>
<p>For green marketers, Timeline offers a unique new way to understand and connect with Facebook users, and one which they should take advantage of.  Here are a couple of ideas how:</p>
<p><strong><em>Persistence</em></strong>:  Timeline organizes content in a way that enables individual posts to remain accessible, rather than disappear from view on the Facebook Wall.  Persistent access increases the value of this content – and Facebook as a channel for distributing it – by enabling it to be consumed and shared by viewers over a longer period of time.  This provides greater impetus for green marketers to motivate consumers to post about, like or share branded content on Facebook, as greater persistence means more impressions over time.</p>
<p><strong><em>Prediction</em></strong>: Personal information has long been used to more effectively target users with ads.  Arguably, Timeline will enable a more in-depth view of the user mindset, revealing new targeting and messaging avenues.  Facebook has the potential to use this data not only to help green marketers find those that have demonstrated a clear affinity for green, but also to predict interest based on similar attitudes, experiences, demographics or behaviors.  This can enable green marketers to target micro-segments with more specific messaging, or even find new audiences, even those that have not yet taken action.</p>
<p>While Timeline is still in beta with consumers, there are expectations that Facebook will soon make Timeline functionality available for business pages.  Green brands should consider this new template for their own Facebook page as its functionality offers advantages for companies too:</p>
<p><strong><em>Presentation</em></strong>: Timeline could enable new ways for businesses to present their brand online.  For example, Timeline enables a larger profile image prominently placed at the top of the page. Companies could use this space to build awareness for their brand or promote a trial offer for a new product.  Additionally, Timeline allows users to expand thumbnail images to provide a broader view of images and graphics, something for which the previous platform has limited ability to do.  This should benefit green marketers who find that their products require more explanation to drive broader adoption.</p>
<p><strong><em>Persistence</em></strong>: A chronological Facebook business page would enable users ongoing access to brand information.  This should motivate green marketers to post more content on their Facebook pages such as product information, stories or even blog posts, bolstering these pages as comprehensive access points for brand content.</p>
<p>Timeline is an emerging platform that will enable users to have a more personal web experience.  Green marketers should take advantage of this functionality to more effectively engage consumers, as well as new capabilities as the platform evolves into the future.</p>
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		<title>Uncharted Waters: Reframing Climate Change Around Water</title>
		<link>http://marketinggreen.wordpress.com/2011/10/17/uncharted-waters-reframing-climate-change-around-water/</link>
		<comments>http://marketinggreen.wordpress.com/2011/10/17/uncharted-waters-reframing-climate-change-around-water/#comments</comments>
		<pubDate>Mon, 17 Oct 2011 02:19:30 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Brand engagement]]></category>
		<category><![CDATA[Climate Change]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Consumer beliefs]]></category>
		<category><![CDATA[Engagement]]></category>
		<category><![CDATA[environmental marketing]]></category>
		<category><![CDATA[Global Warming]]></category>
		<category><![CDATA[Green Marketing]]></category>
		<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=432</guid>
		<description><![CDATA[Einstein is credited with saying that “everything should be made as simple as possible, but no simpler.” Such words have renewed meaning when it comes to messaging about climate change as everything about it seems complex – its cause, its impact, and the challenges that humans face to address it. Just describing climate change poses [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=432&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><a href="http://en.wikiquote.org/wiki/Albert_Einstein">Einstein</a> is credited with saying that “everything should be made as simple as possible, but no simpler.”</p>
<p>Such words have renewed meaning when it comes to messaging about climate change as everything about it seems complex – its cause, its impact, and the challenges that humans face to address it. Just describing climate change poses a formidable challenge for communicators. Its causes are many and not necessarily intuitive to grasp.  Likewise, its impact is difficult to comprehend, especially given how interconnected Earth’s natural systems are.</p>
<p>Like any marketing communications challenge, consumers needs sound bites that relay information as simply as possible, but no simpler. The message needs to be relevant to their daily lives. The narrative needs to be easily digestible and sharable so that it quickly becomes part of the broader lexicon. It also needs to instill a sense of urgency, but not leave a feeling of being overwhelmed.</p>
<p>One possible way to address this challenge is to reframe the climate change conversation around water. This shift is necessary for many reasons:</p>
<p>First, the current narrative around global warming is too complex and abstract for most audiences to grasp fully: rising temperatures, melting polar ice sheets, burning rainforests, rising sea levels, and so forth. Focusing on water enables communicators to simplify the message, as water is familiar to all of us and essential for our own survival. Rather than shortchanging the complexity of climate change, communicators that narrow the message enable consumers to more easily digest it.</p>
<p>Second, focusing on water allows us to shift communications away from the cause of climate change to its impact. Natural water variability is expected from year to year, but overall, supplies in the US, even in the arid west, have traditionally been relatively predictable from year to year. In the current world, a &#8221;100-year&#8221; drought actually only occurs every 100 years.</p>
<p>Yet, climate change has already disrupted this paradigm. Today, we are shifting to a world of water volatility, where the probability of extreme <a href="http://www.ipcc.ch/publications_and_data/ar4/wg2/en/ch3s3-4-3.html">droughts and floods</a> increases dramatically. For example, in 2010, the <a href="http://www.scientificamerican.com/article.cfm?id=amazon-drought-spurs-greenhouse-gas">Amazon</a> rainforest experienced its second &#8220;100 year&#8221; drought in 5 years. When this happens, people start to pay attention.</p>
<p>Finally, water enables communicators to reposition global climate change as an inherently local issue. It has long been the case that consumers have had a difficult time connecting with – let alone financially supporting – global environmental issues. Redefining climate change as a local issue makes it more personal, and provides an opportunity to motivate more grassroots support for action at the local level.</p>
<p>Yet, today, the impact of climate change is being felt closer to home. Local communities in the US are being devastated by water – or the lack there of – from extreme droughts and wildfires across Texas to torrential rains and flooding in Vermont. <a href="http://www.bloomberg.com/news/2010-08-06/from-fires-in-russia-to-flooding-in-asia-extreme-weather-taking-its-toll.html">Globally</a>, the impact has arguably been more severe because people in places like Pakistan, Bangladesh and even China have fewer resources to cope with it.</p>
<p><a href="http://marketinggreen.files.wordpress.com/2011/10/percipitation-anomolies.gif"><img class="aligncenter size-full wp-image-450" title="Percipitation Anomolies" src="http://marketinggreen.files.wordpress.com/2011/10/percipitation-anomolies.gif?w=450&#038;h=337" alt="" width="450" height="337" /></a></p>
<p>To this end, it is important to outline a communications construct that shifts the focus of climate change to its impact on water. Here is one approach:<a href="http://marketinggreen.files.wordpress.com/2011/10/water-blog-artical_101111_water-communications3.gif"><img class="aligncenter size-full wp-image-457" title="water-blog-artical_101111_water-communications3" src="http://marketinggreen.files.wordpress.com/2011/10/water-blog-artical_101111_water-communications3.gif?w=450&#038;h=337" alt="" width="450" height="337" /></a>As communicators, we face the ongoing challenge of constructing the right narrative that engages audiences on this important issue of our time.  Simply, but no simpler. </p>
<p> The best way to do so is still open for discussion. </p>
<p> What is your approach?</p>
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			<media:title type="html">dwigder</media:title>
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			<media:title type="html">Percipitation Anomolies</media:title>
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		<title>Pay-As-You-Go Pays for the Environment</title>
		<link>http://marketinggreen.wordpress.com/2010/12/23/pay-as-you-go-pays-for-the-environment/</link>
		<comments>http://marketinggreen.wordpress.com/2010/12/23/pay-as-you-go-pays-for-the-environment/#comments</comments>
		<pubDate>Thu, 23 Dec 2010 03:22:39 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Business model]]></category>
		<category><![CDATA[Green Consumerism]]></category>
		<category><![CDATA[Green investment strategy]]></category>
		<category><![CDATA[Green Strategy]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[Products]]></category>
		<category><![CDATA[Strategy]]></category>
		<category><![CDATA[Sustainability]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=417</guid>
		<description><![CDATA[﻿Pay-as-you-go (PAYG) is emerging as a winning consumption model for the environment. It does so in two ways. First, by charging for incremental use, PAYG discourages overconsumption often associated with flat rate pricing. Second, it incentivizes shared use of resources during peak periods in order to avoid excess investments in capacity that would otherwise be [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=417&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>﻿Pay-as-you-go (PAYG) is emerging as a winning consumption model for the environment. It does so in two ways.  First, by charging for incremental use, PAYG discourages overconsumption often associated with flat rate pricing.  Second, it incentivizes shared use of resources during peak periods in order to avoid excess investments in capacity that would otherwise be underutilized for much of the time.</p>
<p>In recent years, several PAYG models have emerged that are having a positive impact on the environment.  For example, smart grid initiatives provide consumers with tiered pricing models that incentivize them to reduce or shift energy use during peak periods.  Additionally, PAYG models in cloud computing allow consumers the flexibility to add computing capacity in real-time, while avoiding the need to overinvest in server capacity utilized only during peak periods.</p>
<p>This month, another consumption model got a big boost when the California Insurance Commission <a href="http://insurance.ca.gov/0400-news/0100-press-releases/2010/release138-10.cfm">approved</a> the launch of PAYG car insurance in the country’s largest car market.  Beginning in February, 2011, California residents will be able to purchase insurance from <a href="http://www.statefarm.com/aboutus/_pressreleases/2010/sf-innovation-mileage-rating-program-approved-by-california-doi.asp">State Farm</a> and the <a href="http://www.calif.aaa.com/en-ca/get-insurance/Pages/index.aspx">Automobile Club of Southern California</a> and pay based on how much – and how safely – they drive.  The less they drive, the less they pay.</p>
<p>Such a model is enabled through the tracking of personal driving data.  Consumers self-report miles driven (and validate periodically through inspection) or do so automatically through an active OnStar system or small telematics device that plugs into a diagnostic port under the dashboard.  Insurance companies then effectively create personalized rates based on actual car use. </p>
<p>Potential benefits for the environment from PAYG are significant: The State of California <a href="http://arstechnica.com/tech-policy/news/2009/07/eff-to-ca-metered-auto-insurance-is-still-a-slippery-slope.ars">estimates</a> that subscribers may reduce miles driven by 10% or more, saving consumers money while reducing accidents, congestion and air pollution.</p>
<p>A wide variety of companies are now in a position to consider testing PAYG models with their customers, especially those that are price sensitive, tend to use a product less than the average or demand additional services during peak periods.  While consumers may focus on saving money, the real benefits may be saved for the environment.</p>
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			<media:title type="html">dwigder</media:title>
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		<title>Rewards as a Driver of Green Consumer Engagement</title>
		<link>http://marketinggreen.wordpress.com/2010/11/27/rewards-as-a-driver-of-green-consumer-engagement/</link>
		<comments>http://marketinggreen.wordpress.com/2010/11/27/rewards-as-a-driver-of-green-consumer-engagement/#comments</comments>
		<pubDate>Sat, 27 Nov 2010 03:01:44 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Consumer engagement]]></category>
		<category><![CDATA[Engagement]]></category>
		<category><![CDATA[environmental marketing]]></category>
		<category><![CDATA[Green Consumer Demand]]></category>
		<category><![CDATA[Green Marketing]]></category>
		<category><![CDATA[Incentives]]></category>
		<category><![CDATA[Rewards]]></category>
		<category><![CDATA[Sustainable marketing]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=402</guid>
		<description><![CDATA[I joined RecycleBank for many reasons, one due to an observation regarding the application of rewards in the green space.  Quite simply, rewards have the potential to change consumer behavior without necessarily changing attitudes first. I first wrote about this in a 2007 blog post. Today, it remains a powerful way to expand the appeal of green. [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=402&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>I joined <a href="http://www.recyclebank.com">RecycleBank</a> for many reasons, one due to an observation regarding the application of rewards in the green space.  Quite simply, rewards have the potential to change consumer behavior without necessarily changing attitudes first. I first wrote about this in a 2007 blog <a href="http://marketinggreen.wordpress.com/2007/03/27/green-consumer-behavior-%e2%80%93-part-iii-changing-behavior-without-changing-attitudes/">post</a>. Today, it remains a powerful way to expand the appeal of green.</p>
<p>As every marketer knows, it is expensive, time consuming and downright difficult to change consumer attitudes. By contrast, rewards can reframe the dialogue by creating a financial incentive for consumers to engage, regardless of interest or attitude. The result is that rewards can expand the target audience to those motivated less by altruism than by financial gain. Suddenly, consumers that did not make the environment a priority are willing to take action to earn rewards. Marketers should be fine with this as long as it helps achieve business objectives in a cost-effective way.</p>
<p>Interestingly, rewards can be a critical tool for companies looking to enhance their marketing efforts. Rewards can be a tool to:</p>
<p><strong>Motivate Consumer Engagement</strong>. Today, marketers are tasked with engaging with consumers in order to increase brand awareness, change sentiment and motivate purchase. Rewards can accelerate this effort by incentivizing consumers to take desired actions in order to earn rewards. Such a cost per engagement model can be particularly relevant for emerging green products with low awareness, as it provides an added incentive for consumers to engage, perhaps tiered based on the type, level or value of the interaction.</p>
<p><strong>Optimize Engagement Experience</strong>. Marketers can optimize their efforts by promoting those consumer behaviors or sequence of behaviors that are more aligned with desired outcomes. Here is how it might work: Consumers earn points as they engage with content or tools online or take offline actions. Consumer behaviors are tracked and associated with specific points earned and rewards redeemed. Marketers can then optimize consumer engagement by promoting those behaviors that are most correlated with fulfilling campaign objectives.</p>
<p><strong>Enhance Existing Incentives</strong>. Even when financial incentives already exist, they may not be sufficient to grab – and hold – significant consumer mind share. Today, several energy platforms such as <a href="http://www.opower.com/">OPOWER</a> motivate consumers to save money on their bills by empowering them with personal usage data, comparative feedback and tangible steps on how to reduce their energy use. Indeed, OPOWER has had success in changing consumer behavior, <a href="http://www.opower.com/Results/Overview.aspx">reporting</a> that such passive (one-way) engagement does empower consumers to take action – with participating consumers averaging 1.5% to 3% in energy savings over a control.</p>
<p>Interestingly, the introduction of rewards may be able to accelerate and sustain such energy savings by providing a greater financial incentive (bill savings + rewards earnings) for a consumer to take action. Such a model turns passive consumers into active ones that are more likely to engage with home energy tools, to open ongoing communications and to purchase energy-saving products. Such a hybrid (passive/active) model was first suggested in a <a href="http://www.opower.com/LinkClick.aspx?fileticket=cLLj7p8LwGU%3D&amp;tabid=76">study</a>, “Residential Energy Use Behavior Change Pilot”, authored by Carroll, <em>et. al.</em>*</p>
<p>Indeed, this was an impetus for RecycleBank to partner with <a href="http://www.efficiency20.com/">Efficiency 2.0</a> to launch of two energy platforms this year – <a href="http://www.cubenergysaver.com/">CUB Energy Saver</a> (Commonwealth Edison) and <a href="http://www.westernmasssaves.com/">Western Mass Saves</a> (Northeast Utilities).  Such platforms provide direct outreach to all consumers while providing the potential to earn rewards by those that actively engage.</p>
<p><a href="http://marketinggreen.files.wordpress.com/2010/11/cub-energy-saver.jpg"><img class="alignleft size-full wp-image-404" title="CUB Energy Saver" src="http://marketinggreen.files.wordpress.com/2010/11/cub-energy-saver.jpg?w=450&#038;h=337" alt="" width="450" height="337" /></a></p>
<p>﻿<span style="text-align:center; display: block;"><a href="http://marketinggreen.wordpress.com/2010/11/27/rewards-as-a-driver-of-green-consumer-engagement/"><img src="http://img.youtube.com/vi/fPelzqOObS8/2.jpg" alt="" /></a></span></p>
<p><a href="http://marketinggreen.files.wordpress.com/2010/11/western-mass-saves2.jpg"><img class="aligncenter size-full wp-image-407" title="Western Mass Saves2" src="http://marketinggreen.files.wordpress.com/2010/11/western-mass-saves2.jpg?w=450&#038;h=337" alt="" width="450" height="337" /></a>Green marketers continue to be challenged by the notion of changing consumer attitudes in order to expand market appeal. Rewards create a shortcut of sorts by providing a direct incentive to motivate the desired behavior change. As a tool for green marketers, they can be a true game changer.</p>
<p>* “Residential Energy Use Behavior Change Pilot” by Ed Carroll and Eric Hatton of Franklin Energy and Mark Brown of Greenway Insights, commissioned by the Office of Energy Security, Minnesota Department of Commerce, April 20, 2009.</p>
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			<media:title type="html">dwigder</media:title>
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			<media:title type="html">CUB Energy Saver</media:title>
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		<title>Rise of the Peer-To-Peer Green Economy</title>
		<link>http://marketinggreen.wordpress.com/2010/11/21/rise-of-the-peer-to-peer-green-economy/</link>
		<comments>http://marketinggreen.wordpress.com/2010/11/21/rise-of-the-peer-to-peer-green-economy/#comments</comments>
		<pubDate>Sun, 21 Nov 2010 18:08:26 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Business model]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Green Consumer Demand]]></category>
		<category><![CDATA[Green Marketing]]></category>
		<category><![CDATA[Green mobile]]></category>
		<category><![CDATA[Green social networking]]></category>
		<category><![CDATA[Social Networking]]></category>
		<category><![CDATA[Sustainable marketing]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=389</guid>
		<description><![CDATA[﻿﻿﻿One could argue that the green revolution really took root online with the launch of eBay. Or perhaps Craigslist. Connecting individual sellers with millions of potential buyers brought the neighborhood garage sale (or local classifieds) to the masses, and with it, the ability to extend the product lifecycle of used, yet still useful, products. As [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=389&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>﻿﻿﻿One could argue that the green revolution really took root online with the launch of <a href="http://www.ebay.com/">eBay</a>. Or perhaps <a href="http://www.newyork.craigslist.org">Craigslist</a>. Connecting individual sellers with millions of potential buyers brought the neighborhood garage sale (or local classifieds) to the masses, and with it, the ability to extend the product lifecycle of used, yet still useful, products. As <a href="http://www.greenbiz.com/blog/2010/02/16/why-ebay-green-giant">Amy Skoczlas Cole</a> from eBay said, “The greenest product is the one that already exists.”</p>
<p>Such peer-to-peer ‘connective’ consumption has long existed offline. Online models like eBay connect individuals at massive scale, while overcoming transaction barriers through the use of seller reviews as well as secure payment mechanisms like <a href="http://www.paypal.com/">PayPal</a>.</p>
<p>Such models challenge the notion of permanent ownership, and with it the environmental impact that it brings. Instead, ownership is viewed as a temporary or altogether unnecessary condition required for realizing product benefits. Products such as cars, beds, clothes, lawnmowers and drills often lay idle and available for use if only those that are in need connect with those that have. Collectively, many have dubbed such transactions ‘collaborative’ consumption because they require the involvement of a community network to make them liquid.</p>
<p>Today, there are at least three peer-to-peer (P2P) models emerging that can facilitate greener transactions:</p>
<p><strong>Rent</strong>. Today, there are many businesses that rent, instead of sell, products to consumers including <a href="http://www.netflix.com/">Netflix</a>, <a href="http://www.zipcar.com/">Zipcar</a> and <a href="http://www.renttherunway.com/a/user">RentTheRunway</a> to name a few. Shared products have a lower environmental footprint, of course, requiring fewer products overall to be produced to meet demand.</p>
<p>Recently, P2P models have emerged that allow consumers to rent products that they own including a spare bed (<a href="http://www.couchsurfing.org/">CouchSurfing</a>), car (<a href="http://spride.com/">Spride</a>, <a href="http://www.getaround.com/">Getaround</a>), even a wedding dress (<a href="http://us.zilok.com/">Zilok</a>). Such models leverage social networks to provide reviews and referrals for products and participants, as well as mobile apps that take advantage of location-based capabilities.</p>
<p><strong>Exchange</strong>. Increasingly, consumers can facilitate the exchange of goods through trading, bartering or gifting. Such transactions reduce demand for new products by extending the lifecycle of existing ones. Such models provide a more flexible and open ended way to facilitate exchanges than with money. For example, <a href="http://www.freecycle.org/">FreeCycle</a> users to make products available free-of-charge to those that are want to take them. In contrast, <a href="http://www.thredup.com/">ThredUp</a> facilitates the exchange of children’s clothes between peers but expects participants first to give clothes to a member in the community before accepting clothing in return. Similarly, <a href="http://www.swap.com/">Swap</a> enables members to exchange books, CDs, movies and video games. What you can get depends on whether others want what you have to give.</p>
<p><strong>Use Virtual Currency</strong>. Consumers can facilitate transactions through the use of virtual currencies that provide many of the benefits of a legal tender &#8211; the ability to accumulate, bank and borrow – without actually having to be legal tender. Such currencies work well in networked communities that rely on shared services to deliver a product or service. <a href="https://thesuperfluid.com/">The Superfluid</a>, for example, is a collaborative social network in which members conduct peer-to-peer transactions by exchanging “favors” for virtual currency. Here, a marketplace has been established where by individuals offer their services (say, web development) in exchange for Quids and then, in turn, spend Quids on services that they need (copy writing).</p>
<p>Certainly, there is the potential to leverage such networks in the green space. Perhaps Quids could be exchanged for environmental services such as conducting a home energy audit or preparing a social corporate responsibility report for a small business.</p>
<p>For consumers, such peer-to-peer transactions are a natural evolution of social networks. Such transactions will continue to grow as mechanisms for transacting become more seamless and consumers become accustomed to more unconventional methods of exchange.</p>
<p>Marketers will be challenged to participate in a meaningful way in such peer-to-peer transactions. Some like eBay and Zilok make it easy by allowing both individuals and businesses to facilitate exchanges. Alternatively, advertising on the largest exchange sites is certainly an option. This is particularly opportunistic for brands naturally aligned with such models including shipping companies, for example. Additionally, businesses should take advantage of such exchanges to launch new offerings such as pay-by-the-day insurance for those that seek to rent a peer’s car, for example. New models that reduce consumption are not necessarily bad for business – they are simply unleashing new opportunities for companies that can play a role in their facilitation.</p>
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		<title>Green Groupon</title>
		<link>http://marketinggreen.wordpress.com/2010/11/14/green-groupon/</link>
		<comments>http://marketinggreen.wordpress.com/2010/11/14/green-groupon/#comments</comments>
		<pubDate>Sun, 14 Nov 2010 13:28:26 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=378</guid>
		<description><![CDATA[Group buying platforms like Groupon and LivingSocial are growing rapidly. Such platforms aggregate consumer demand in order to purchase goods or services at a significant discount. A minimum number of customers must commit to purchase before the offer can be fulfilled for all. Consumers have fallen in love with group buying because it provides access [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=378&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Group buying platforms like <a href="http://www.groupon.com/">Groupon</a> and <a href="http://livingsocial.com/">LivingSocial</a> are growing rapidly. Such platforms aggregate consumer demand in order to purchase goods or services at a significant discount. A minimum number of customers must commit to purchase before the offer can be fulfilled for all.</p>
<p>Consumers have fallen in love with group buying because it provides access to discounts which they couldn’t previously take advantage of. Marketers are also having a love affair because it facilitates bulk sales &#8211; guaranteeing a minimum volume &#8211; and upfront payment. Moreover, such platforms increasingly allow marketers to target specific offers to consumers based upon demographics and category interests.</p>
<p>Green marketers should take advantage of such platforms. Not only do such platforms drive bulk sales, but they can also expand the market for green products. Here’s how:</p>
<p><strong>Platforms target interested consumers. </strong>Group buying sites can easily create green affinity groups in order for marketers to more precisely target those already predisposed to greener offers.  Such segments can be based on either self-reported data or past engagement and purchase behavior.</p>
<p><strong>Discounts overcome price premiums</strong>. Making a product more eco-friendly is often associated with higher costs.  When demand is aggregated, companies are more willing (and able) to provide discounts, making them more price competitive with less eco-friendly alternatives.</p>
<p><strong>Peers influence purchase decisions</strong>. Group buying platforms can help influence purchase decisions through the power of social messaging. Most group buying sites provide real-time tallies of the number of consumers that have committed to purchase each item, as well as the number still needed to strike a deal. Such techniques are powerful motivators of consumer behavior by providing peer affirmation for their purchase decisions. This is especially important for greener products that may traditionally appeal to a niche audience. The more consumers believe that their peers have committed to purchase a product, the more likely that they will also give it a try.</p>
<p>Group buying platforms have provided a new marketing channel for many traditional products and services – green marketers would do well to similarly experiment with this platform to help expand their audience.</p>
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		<title>Green Product Paradox: When Too Much Good Is Bad for the Environment</title>
		<link>http://marketinggreen.wordpress.com/2010/10/04/green-product-paradox-when-too-much-good-is-bad-for-the-environment/</link>
		<comments>http://marketinggreen.wordpress.com/2010/10/04/green-product-paradox-when-too-much-good-is-bad-for-the-environment/#comments</comments>
		<pubDate>Mon, 04 Oct 2010 02:34:24 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
				<category><![CDATA[Brand engagement]]></category>
		<category><![CDATA[Climate Change]]></category>
		<category><![CDATA[Consumer behaviors and beliefs]]></category>
		<category><![CDATA[Eco-friendly products]]></category>
		<category><![CDATA[Energy efficiency]]></category>
		<category><![CDATA[environmental marketing]]></category>
		<category><![CDATA[Global Warming]]></category>
		<category><![CDATA[Green Marketing]]></category>
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		<category><![CDATA[Sustainability]]></category>
		<category><![CDATA[Sustainable marketing]]></category>
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		<description><![CDATA[A common mantra in green marketing is that if you want the masses to buy your product, focus your messaging on more traditional attributes such as price, quality or service.  A product’s “greenness” is likely secondary for many mainstream consumers. For green marketers then, the holy grail may be to offer a product that is [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=371&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>A common mantra in green marketing is that if you want the masses to buy your product, focus your messaging on more traditional attributes such as price, quality or service.  A product’s “greenness” is likely secondary for many mainstream consumers. For green marketers then, the holy grail may be to offer a product that is competitive on dimensions both traditional and eco-friendly.  This would result in the greatest number of products sold and greatest impact on the environment.</p>
<p>But, things are not always that simple.  Consider the scenario when an innovative green product spurs new demand across an entire product category, rather than just replaces the existing generation of products in market. Is the individual product still green if the aggregate impact of the category is greater than what it replaced? </p>
<p>Take, for example, household lighting.  Most of us are aware that switching from incandescent to fluorescent light bulbs can result in a dramatic reduction in energy use.  But, overall adoption has been relatively modest in comparison to the potential market, likely due to the premium price commanded for the bulbs. </p>
<p>Today, an even newer generation of lighting technology is on the commercial horizon.  Solid state lighting, described as a “souped up” version of the light emitting diodes (LEDs) that are commonly used today to illuminate electronic displays on alarm clocks and audio equipment, promises to provide lighting at a fraction of the energy used by today’s bulbs.  (“<a href="http://www.economist.com/node/16886228 http://en.wikipedia.org/wiki/Solid-state_lighting">Not Such a Bright Idea</a>”, <em>The Economist</em>, August 26, 2010)  Mass adoption of such technology could have significant implications for the environment given that 6.5% of the world’s energy is used for illumination.</p>
<p>In many ways, we should celebrate such technology fixes given their benefits to the environment.  For marketers, solid state lighting clearly has the potential to be one of those &#8220;holy grail products&#8221;. Yet, green products such as solid state lighting also present a paradox in that their adoption in mass might actually be detrimental to the environment. How could this be the case?  Well, according to J Y Tsao and colleagues at the Sandia National Laboratory, cheaper lighting that sips energy will likely <em>increase</em> overall demand and uses for light, and with it, overall energy consumption.  (J Y Tsao, <em>et. al.</em>, “<a href="http://iopscience.iop.org/0022-3727/43/35/354001/pdf/0022-3727_43_35_354001.pdf">Solid-State Lighting: An Energy-Economics Perspective</a>”, <em>Journal of Physics D: Applied Physics</em>, August 19, 2010)</p>
<p>The rationale? Today, Tsao <em>et. al.</em>, contends that consumers underconsume indoor light – with current fixtures providing 1/10th of the illumination as ambient outdoor light on cloudy days and 1/60th of ambient outdoor light on sunny ones.  Tsao rationalizes that there is plenty of room to consume more &#8211; including in new ways that have yet to be thought of.</p>
<p>As evidence, Tsao <em>et. al.</em>, models historical lighting use and adoption rates for new technologies – from gas lanterns to fluorescent bulbs – and extrapolates forward demand based on the amount of light produced (measured in lumens) and cost per lumen.</p>
<p>Historic trends clearly indicate that consumer demand greatly increased when cost dropped and other attributes – such as faster turn on/off and greater cleanliness – expanded lighting uses.  Extrapolating into the future, Tsao <em>et. al.</em>, predicts that with solid state lighting, demand has the potential to increase10x by 2030 and with it, perhaps a 2x increase in energy use.  How paradoxical. </p>
<p>It is important to note that the green product paradox is not isolated to LED lighting.  Increased demand for electric cars, for example, could result in a similar dilemma if the added electricity load needed to power the vehicles is generated using higher polluting coal.</p>
<p>As such, the green product paradox presents quite the challenge for a marketer.  For individual companies, such products can be both profitable and (at least appear) socially responsible.   It is only by looking at the forest from the trees – and perhaps a little into the future – does it become apparent that, in aggregate, such products may, paradoxically, have a negative impact.</p>
<p>A sustainable brand might try itself to mitigate any impact that its products may have.  But, this will only have broad impact if it ultimately compels competitors to follow suit.  Given this, marketers should recognize that a solution to the paradox may not lie within an individual company&#8217;s grasp.  Alternatively, it may take an industry consortium to make the necessary product changes or evolve consumer expectations.  Or, it may take collaboration across industries to have lasting impact.  In both examples cited above, a shift to lower-polluting sources for energy generation would mitigate an increase in demand for both products.</p>
<p>Overall, the green product paradox presents a difficult challenge for green marketers.  Doing good for the planet may not always be as a simple as motivating purchase of greener goods.  In some cases, it just might be too much of a good thing.</p>
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		<title>Consumer Misperceptions Regarding Energy Efficiency</title>
		<link>http://marketinggreen.wordpress.com/2010/09/23/consumer-misperceptions-regarding-energy-efficiency/</link>
		<comments>http://marketinggreen.wordpress.com/2010/09/23/consumer-misperceptions-regarding-energy-efficiency/#comments</comments>
		<pubDate>Thu, 23 Sep 2010 02:12:55 +0000</pubDate>
		<dc:creator>dwigder</dc:creator>
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		<guid isPermaLink="false">http://marketinggreen.wordpress.com/?p=339</guid>
		<description><![CDATA[A recent survey published in the Proceedings of the National Academy of Sciences indicates that consumers are misinformed about how best to realize energy savings.  Marketers have the opportunity to make a significant impact on energy use by filling in knowledge gaps, correcting misperceptions and helping consumers prioritize actions that generate the greatest impact.  (Attari [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=marketinggreen.wordpress.com&amp;blog=475016&amp;post=339&amp;subd=marketinggreen&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><a href="http://marketinggreen.files.wordpress.com/2010/09/energy-intensity-misperceptions2.jpg"></a></p>
<p>A recent survey published in the <em>Proceedings of the National Academy of Sciences</em> indicates that consumers are misinformed about how best to realize energy savings.  Marketers have the opportunity to make a significant impact on energy use by filling in knowledge gaps, correcting misperceptions and helping consumers prioritize actions that generate the greatest impact.  (Attari <em>et. al.</em>, “<a href="http://www.pnas.org/content/early/2010/08/06/1001509107.abstract">Public Perceptions of Energy Consumption and Savings</a>” August 2010)</p>
<p>As Attari <em>et. al.</em> point out, consumers can typically realize greater energy savings through structural improvements in energy efficiency (e.g., switching to fluorescent light bulbs) than from behavior changes that curtail energy use (e.g., turning off lights).  Yet, more than half of survey participants held the mistaken view that behavior changes such as turning lights off (nearly 20%) or reducing driving/biking/taking public transportation (15%) were likely the most effective way to reduce energy.  By contrast, only 12% of participants pointed to a structural change such as use of efficient light bulbs (4%) or appliances (3%).</p>
<p>Attari <em>et. al.,</em> also explored consumer perceptions regarding the relative potential for energy savings through behavior changes or structural improvements in low and high energy intensive devices (e.g., heaters), appliances (e.g., cloth dryers) or activities (e.g., washing clothes at a lower temperature).  Interestingly, survey participants systematically underestimated the energy use and savings potential from energy-intensive options – with actual energy use or savings potential nearly 3x consumer estimates.  With little knowledge or reference points to make an informed decision, participants seemed to rely on heuristics like “anchoring” to make educated guesses regarding the impact of appliances and devices relative to a more familiar one, the 100 watt bulb.<span id="_marker"> </span></p>
<p><a href="http://marketinggreen.files.wordpress.com/2010/09/energy-intensity-misperceptions.jpg"><img class="alignleft size-full wp-image-340" title="Energy Intensity misperceptions" src="http://marketinggreen.files.wordpress.com/2010/09/energy-intensity-misperceptions.jpg?w=450&#038;h=337" alt="" width="450" height="337" /></a><a href="http://marketinggreen.files.wordpress.com/2010/09/energy-intensity-misperceptions.jpg"></a></p>
<p>Such survey results should not come as too much of a surprise to most utility marketers, as consumers have traditionally lacked a detailed understanding of their energy bill and options for mitigating it. </p>
<p>For marketers, such a knowledge gap provides a clear opportunity to engage consumers across new dimensions by:</p>
<p><em>Providing more details regarding household energy use</em>: Consumers would take more action if they better understood the impact that each appliance, device and activity had on their aggregate bill.  While smart meter deployments make providing this level of transparency a snap, marketers may be able to improvise by providing likely usage patterns extrapolated from consumers with similar historic consumption patterns or surveys.</p>
<p><em>Leveraging more relevant heuristics</em>: Marketers should focus on dollars rather than kilowatt hours of energy saved.  Money is more easily understood by consumers, especially when comparing products and product investments across categories.  For more significant investments, provide a personal return on investment or payback period to facilitate consumer decisions.</p>
<p><em>Benchmarking individual energy use against the community</em>: Whenever possible, utilities should provide comparative data regarding personal energy use relative to the average in a community.  Such social marketing may provide an added level of urgency to act for consumers who use more energy than their neighbor (though marketers must take care in their messaging so as not to promote added energy usage by those already using less than the average).</p>
<p><em>Partnering to extend reach</em>: Utilities should partner with others also interested in selling more efficient appliances and devices including retailers and OEMs, as well as those that interact with consumers at key trigger points for purchase such as real estate brokers, mortgage brokers and contractors. Such arrangements are mutually advantageous and can greatly extend reach and amplify messaging in market.</p>
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