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The Environment And Global Warming Essay

1436 words - 6 pages

With the increase press release of the global warming from authoritative media, general public have an awareness of being environmental friendly. However, consciousness in mind sometimes does not affect the actual customer behavior of buying the eco-friendly products. The reason behind is that customers have the perceived risk. Perceived risk, is the customers are likely unsure of the results being expected or not, and some results may be unpleasant to clients (Hoyer, Wayne D, MacInnis & Deborah J,2010). In the following paragraphs, the barriers about perceived risk and the ways to overcome the perceived risk would be discussed and suggested respectively by using the case study the sofa from ...view middle of the document...

Therefore, pricing can be a critical factor to affect the perception of customers.

More important is that using recycled materials can give rise to a psychological risk despite the top quality of sofa. Psychological risk is the customers have the negative emotions when buying, using or disposing the products (Hoyer, Wayne D, MacInnis & Deborah J, 2010) , especially under the situation that the core value of product does not suit the customer’s mind. In order to produce the eco-friendly sofa with the admission of green authories such as Oeko-tex, Co-Op America, GREENGUARD, etc, using the recycled raw materials are unavoidable. For fear of buying a decayed sofa with expensive price, the customers will not go further to consider buying the sofa. Green perceived risk negatively influences the green trust and green purchase intention (Chen.Y.S.& Chang.C.H,2012). Therefore, the psychological risk does not change the attitude of the green product. On the other hand, it can negatively affect the decision making of which increase the probability of not buying the green goods.
Another problem should be concerned is the performance risk, being caused due to several reasons. Performance risk is that the customers are unsure about if the products are fit to their expectation. (Hoyer, Wayne D, MacInnis & Deborah J, 2010). The quality of sofa is based on the materials used. From wood, cotton to bamboo, those raw materials are recycled to make the sofa. Under that situation, the performance risk will increase as the customers hold a subjective opinion that the sofa cannot be durable. What’s more, the majority of eco-friendly retailers are a small company and the show rooms may be placed at their own countries. As a result, the customers overseas cannot see and experience the real sofa.
Although there are three perceived risks including financial, psychological and performance risks, those problem can be solved by using the different marketing strategies.
First of all, trade in, a method that a used item is given to reduce the price of the new one customers are going to buy, can effectively lower the financial risk. Apple is successfully in offering the Apple Recycling trade in Program (2013) and the earth friendly firms can consider about having similar trade in project .The first benefit is that the firms can enlarge the source of customers. consumers will not sacrifice their desires just to be green if they make the trade-offs (Chen.Y.S.& Chang.C.H,2012). Therefore, trade in programme can be a material and practical attraction to let them experience the premium sofa and be capable of distinguish the quality of sofa by perceiving through touch. Since reputation can be built up from the word-of-mouth marketing and the communications within consumers can help push the other customers have an attempt and thus increasing the quantity of clients. The second benefit is that the cost can be declined with reusing the raw materials from the used sofas. For...

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