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1997

Cultural Influences on Green Marketing
 Paul Herbig
Introduction
	Concern for the environment has been the trend of the 90’s.  Not surprisingly.  Unfortunately it took the deforestation of rain forests, dead rivers, oil-spilled oceans, climate change, acid rain, air pollution, overfilled landfills, shortages of natural resources -all that and more- for people to finally realize that the environment is in danger.  In response, a mania for preservation and conservation has broken out in some countries, even to the extent that more materials are offered for recycling, than can be collected.  Yet, there are still countries, mainly less developed countries, where environmental concern has not yet become a household word.  Gruesome environmental attacks continue.  This proves obviously, despite the Earth going through an ecological nightmare, inhabitants respond differently to this crisis.  Why is that so?  Does the preservation of the environment not concern us all?  Overall however, there is a global concern for the environment.
	Global concern for the environment?  What exactly does it mean?  It means that people, on international basis, have reacted to the brutal rape of the environment.  People are thinking more ecologically.   People are turning green.  More specifically,  consumers are turning green.  They demand products that do not destroy the endangered environment any further.  They demand green products - products, that consist of  1) highly recycled materials,  2) non-toxic materials, 3) little packaging, 4) reusability, 5) long life, 6) remanufacturing capability, and 7) have no impact on animals.  (Simon, 1992)  
And producers?  Producers have no choice but to comply with the demands of green consumers.  Additionally, laws have already been implemented to ensure the greening of corporations.  As a result, the emergence of green marketing has taken place.  
	“Green Marketing refers to the marketing of products and services considered environmentally friendly that make their marketers environmentally responsible.  (Herbig, 1997)  As great as green marketing may sound, fact is, green marketing differs around the world.  There are differences among green consumers and  green producers.  In addition, environmental regulations are not standardized globally.
The objectives of this paper are to discuss the differences among international green marketing practices and to analyze, from a cross-cultural perspective, why these global “greening” differences exist in terms of culture and cultural differences.
The objectives will be achieved by, first discussing the relation of the topic to marketing.  Thereafter, different global “greening” practices will be discussed. Furthermore, consumer environmental attitudes will be analyzed from a cross-cultural perspective.  Why do different levels of environmentalism exist?  What makes a country greener than another? Are these differences interrelated with the different attitudes 
towards nature? Do economics play an important role in environmental attitudes?  What role does culture play?

Relation Of Topic To Marketing
	The marketing process offers and stimulates consumption opportunities to satisfy human needs and wants.  Furthermore, it has the power to shape these needs and wants and the ability to provide customers with appropriate choices.  However, marketing will only be appreciated  by the consumer, when his/her needs are met without compromising the needs and wants of the future generations.  (Polonsky and Mintu-Wimsatt, 1995)  This means, marketers not only have the responsibility of informing the consumer of the availability of goods and services, but also ensuring an improvement of the quality of life by informing, educating, and channeling the needs of consumers toward ecologically safe products and services.  (Polonsky and Mintu-Wimsatt, 1995)
	Satisfying the customer and achieving a competitive advantage in the market go beyond offering low price, high quality and convenience.  Marketers are forced to green their products, since purchasing decisions are affected by environmental attributes of the product.  (Bhat, 1996) Thus, companies have to incorporate strategies for preservation of the environment into  their marketing strategies.

Green Marketing and Strategies
	Businesses have the responsibility  "to modify their operations to prevent serious or irreversible environmental degradation."  (Lave and Matthews, 1996)  This modification already begins with the product's design and development, such as creating recyclable materials, building long lasting products or using fewer materials.  Moreover, the company is responsible for volume reduction of packaging, green labeling, consumer education, collection of used materials after sale and post-use processing.  (Simon, 1992)  Companies are obligated to think green before production and continue the greening even after production and sale.
	Although some companies are committed to environmental awareness, for many other companies it is easier to say green than to be green.  In a survey of 56 large U.S. companies, most of these companies expressed environmental concern.  They were even willing to switch from toxic to safer materials, if product cost was not raised by more than one percent.  However, no company was willing to raise costs by five percent in order to preserve the environment.  Everybody was willing to save the Earth as long as little cost and effort was involved.  (Lave and Matthews, 1996)  Nevertheless, there are many firms who claim greenness without taking actions.  According to Lave and Matthews, a green company should possess the following attributes:  1) understand the green demands of its customers, 2) invest in technology that helps preserve nature, 3) willing to increase product cost, 4) redesign current product into green product, and 5) use resources efficiently.  A green company is committed to the environment throughout the product's life cycle and beyond.

Strategy for a Competitive Advantage
	As mentioned earlier, price, quality and convenience no longer comprise the key factors to a competitive advantage. Environmental responsibility or greenness has become a competitive tool for increased market share as well as won acceptance from consumers.   Following are some ways to use greenness as a competitive tool:
	First, companies should attempt to be “first movers” in any “particular product category whereby it can often select the environmental attributes it wants to offer and mold consumer expectations so that future competitors must play by the rules established.”  Second, companies are not obliged to green all the way.  Many times, consumers appreciate sincerity and attempt to greenness, by perhaps introducing some environmental improvements over time.  Additionally, companies can establish barriers such a patents, product standards and distribution rights, to competitors’ market entry in order to protect their newly established green product.  The competitive strategy includes the possibility of renewing an aging brand with an environmentally-improved product as well, such as ARCO's introduction of the first reformulated gasoline in 1989.  ("Mandate for the 90's", p. 1)  Furthermore, green market success can be accomplished by “trying a product’s environmental attributes and message to the life style affinities of target consumers.”  ("Concepts for a Competitive Strategy", p. 1)  For instance, household cleaners with safe ingredients substituted for dangerous chemicals appeal to mothers who worry about their children’s health.

Problems
	Though green marketing might serve as a competitive tool, nationally and internationally, a firm will still encounter problems.  Should a firm decide not to green its operations, it faces opposition from consumers and policy makers.  A lot of consumers have become more environmentally concerned.  With this awareness, most naturally, they demand green products.  As consumers demand green products and protection of the environment, governments are forced to implement policies that will comply with these demands.
	 Should a firm decide for greening its operations, problems will arise.  First, many times going green is expensive.  It involves modifying the entire marketing process .  Second, with growing demand for saving the environment comes growing confusion of the consumer.  Some surveys have shown that many consumers are confused about the meaning of the emerging terminology - eco-safe, environmentally friendly, recycled, recyclable, biodegradable…  Each term may mean something different to various people.  Increased variability leads to increased confusion.  Eventually, consumers become suspicious about these environmental claims and decide against the purchase to the green product.  (Morris, Hasta, and Mazis, 1995)  
	Problems, despite greening, will also arise due to the different environmental standards around the world.  While Europe has strict environmental regulations and Africa has few to none, African companies, for instance would have problems exporting their products to Europe.  Thus, differences in environmental standards lead to trade barriers, unless one nation complies with the standards of another nation.  However, that nation may have different standards compared to the third nation.  
	 As already mentioned, the main focus of this paper is to discuss several nations' environmental policies and then determine why these differences exist.

Green Regulations
	As environmental awareness increased tremendously within the last decades in the USA, environmental laws rose exponentially - Clean Air Act, Toxic Substances Control Act, Pollution Prevention Act, Noise Control Act - just to name a few.  These laws have been established to protect the environment and many amendments to these regulations are being proposed continuously.  (Bhat, 1996)  
	However, these laws have an affect on the business world.  Polluters are held responsible for damaging the environment.  Strict penalties are imposed for any violations.  The consumer and the environment are protected and  businesses face dilemmas.  On one side businesses want to abide by the established standards, on the other side, abiding creates problems, such as worker lay-offs, or modification of operations and strategies, and increased costs.  
Unfortunately, there is an absence of unitary federal standards, which causes several states to establish laws on their own.  (Simon, 1992)  This creates another obstacle for businesses.  For instance in Rhode Island, products that claim recyclability cannot be sold, unless local infrastructure is provided.  Furthermore, several states adopted smog-reduction rules, requiring introduction of alternative fuels and ten percent electric cars by the year 2003.  (Ibid)  This is a strain on businesses, since each state has its own green  laws.  Just as firms strive for standardization, standardization is made more difficult by diverse laws.  On the international level variance of regulation is an even greater barrier.  Should foreign countries be expected to produce and operate according to each U.S. state's law?

Europe
	Environmental regulations even vary throughout the Europe.  Germany probably has the strictest laws in Europe.  There, laws are created to enforce the "Polluter Pays" principle.  This principle mandates that businesses be responsible for environmental damages caused by waste from their operations.  (Rousso and Shah, 1994)  Hereby businesses are obligated to reduce waste before production or collect waste after sale.  According to Rousso and Shah, this cradle-to-grave hypothesis holds the manufacturer responsible for the disposal of durable goods at the end of their useful life."  The purpose for such regulation is to "create incentives to design products for reuse, disassembly, and waste avoidance.
	Germany's landfills are getting smaller.  Packaging waste alone comprised 12,705 metric tons in 1991.  To reduce any further waste the Verpackungsordnung was passed in 1991, making businesses responsible for their waste.  (Rousso and Shah, 1994)  This does not mean that businesses are obliged to collect waste.  Rather, businesses are required to pay for the waste management costs.  Businesses usually contract third parties to collect their transport packaging for recycling or reimburse retailers for its recycling.  (Ibid)
	As for primary packaging, incentives are offered to consumers for returning products packages after use.  Manufacturers in turn are responsible for sorting and recycling this waste.  (Ibid)
	It is reported that by 1995 Germany planed to recycle 72 percent of glass and 64 percent of paper.  Recycling bins are located in every neighborhood to ease recycling activities.  As for the USA, only 22 percent of glass and less than four percent of plastic packaging was recycled in 1990.  (Ibid)
	As of 1993, the Green Dot system went into effect.  Herewith, recyclable products are labeled with the Green Dot to indicate eligibility for curbside collection.  This in turn is financed by businesses that are members of the DSD (Duales System Deutschland).  Membership fees of DSD are applied towards these special collections.  The Green Dot also contributes to consumer education about consequences and impact of waste.  (Ibid)  Additionally, this packaging law plans to go as far as completely eliminating packaging that does not add to the protection of the product.
	Germany is not willing to adopt to a uniform European packaging law.  Of course this creates trade barriers to exporters not only within but also outside the European Union.  As a result, exporters to Europe are faced with different laws that they have to comply with.
	Although there is an absence of a uniform packaging law, many European countries, such as Denmark, France, Italy and Sweden have adopted similar regulations to those of Germany.  Netherlands' environmental program is voluntarily, whereas the U.K. has decided to participate in the European Union's program.  It is said that the British are less concerned about their environment and also pay the least amounts on landfills charges.  The government prefers not to intervene and let industries develop their own programs.
	However, the European Union is working towards uniform environmental laws that will require all member states to prevent, reduce and recover waste.  (Lenderman, 1996)  Until then, exporters to Europe and within Europe will have to comply with individual countries' laws.

Asia
	Even though Asia lags distinctively behind Europe and the USA with green laws, there has been a significant increase in environmental awareness and policies.  
Japan
	Many green issues are just emerging in Japan, where landfills are getting smaller and smaller.  1995's earthquake left Kobe with severe environmental problems.  The Japanese government was forced to make waste management a primary issue for legislation.  In addition, Japan is revising its existing laws to comply with European standards, such as adopting European standards for mineral water.  Its revision of the noise regulation law created the world's toughest policy in this matter.  Further, many large firms such as Honda and Mazda are adopting quickly to the green trend.  Honda started a bumper recycling program, whereas Mazda is "developing a chemical recycling technology for its plastic waste."  ( Asia Environmental Review, 1995)  Even Kirin, Japan's largest brewer, decided for a 98 percent rate for recycling and re-use of waste products, which places Kirin number one world wide.  (Ibid)  The list goes on and on.  Japan finally realized that it is time to save the environment.  Before one realizes, Japan may surpass Europe with its fast growing environmental awareness.

China
China has been determined the pollution superpower.  (Ibid)  It contributes to serious acid rain and half of its waterways are polluted.  Still few laws have been enacted to control the damages caused to the environment.  Its damage contribution to nature has passed almost unnoticeably for a while.  Nonetheless, concern is growing, especially from its neighbor, Japan.  China is forced to implement environmental policies.
	According to the Asia Environmental Review, China is now increasing its expenditures on environmental research.  Whereas local and foreign businesses did not have to practice green marketing, policies are slowly changing.  For example, China's major cities have been plagued by packaging waste from fast-food restaurants.  Only five years ago, Chinese ate out of re-usable lunch boxes.  Now, with fast-food restaurants in trend, 200 million tons of disposable lunch boxes have become an environmental problem.  Nevertheless, the affected cities have realized the problem and are taking measures now.  
Hopefully, China will impose stricter laws on all pollution creators.  Foreign companies will have to be ready to comply and modify their operations accordingly.

Other Asian Nations
	Environmental awareness has also increased in other Asian nations,  such as Korea, Taiwan, and Malaysia.  Recently Korea implemented policies that require consumers to separate their household garbage into five categories (cans, bottles, etc.) just as in Germany.  It has been reported that this garbage separation has led to a significant decrease in waste.  Further, environmental issues are turning into political issues in Taiwan.  Several new green laws have been created, albeit Taiwan still lags behind Japan and the West.  Even Malaysia has attempted to impose strict environmental policies.  Many fines have already been issued to polluters.

Conclusion on Policies
	Green Marketing is not an easy strategy, especially when environmental regulations vary from nation to nation.  Businesses who want to be environmentally friendly do encounter many problems during the process.
	As consumers have become environmentally aware and demand green policies, businesses have no choice but to abide by these regulations in order to remain competitive.  Nonetheless, with all the various regulations, one cannot help but to wonder why these levels of environmentalism exist.  After all, damages to the environment affect the entire world population.  Hence, should not all nations have common policies to protect the same nature on the same Earth?

Cross-Cultural Differences In Greenness
	Even though virtually all inhabitants of the planet Earth have become concerned about the environment, environmentalism still differs from culture to culture.  As definitions of environmentalism throughout the world include protecting the nature, it should be noted that every culture has different perceptions of nature.  (Silverstein, 1993)  This and many other factors contribute to the diversity in global greenness.

Perceptions of Nature
	Most environmentalists broadly agree that 1) nature is good, 2) altering or destroying any part of nature is bad, 3) nature has a balance that humans always disrupt, and 5) the more power humans get, the more damage they do to nature.  (Kaufman, 1994)  Though most people share these ideas, differences exist.
	According to Kaufman, Americans view nature as kind, benevolent, a source of infinite gifts, and thus something to be cherished and kept intact whenever possible.  The Japanese perceive nature as volcanic and stormy, exacting and difficult, something that is only kind when tamed, and only truly beautiful when sculptured or adorned by the hand of man.  Not surprisingly, Japan bears few to no places that are still wild or untouched by man.  Of its 30,000 rivers only three are unshaped.  Japan can be viewed as a "manmade natural environment."  (Silverstein, 1995)
	Americans want to protect mother nature as well as the Japanese.  However, Americans firmly believe in leaving nature as it is, in its natural, unchanged state.
	Other perceptions of nature, such as following also contribute to diverse greenness.  Polonsky and Mintu-Wimsatt note that the consumption culture (individuals that produce and consume) can be classified into critiques that further analyze environmentalism.  Five perceptions of the environment exist:
	The Puritan view of the environment believes that nature is a spiritual or mystical power.  This view is often found among native Americans, or primitive cultures, whose religious beliefs are based on perceptions of nature.  "Puritans" therefore believe that the consumption culture  destroys their sacred nature.  
	The Quaker view in turn states that the consumption culture is wasteful.  Would consumers realize the true costs of waste to nature, it is assumed that behaviors would change.
	The Republican view states that each citizen has a duty to the environment and to its future generations.  Hence, citizens should behave/consume appropriately.  
	The Marxist critique is based on the belief that social injustices exist within the consumption culture.  Thus, rich neighborhoods and wealthy nations have the power and means to control environmental ills, while poor neighborhoods as well as poor countries are exploited by the wealthy and feel powerless against environmental problems.  To demonstrate, wealthy neighborhoods never encounter problems of  undesirable developments, such as a new factory or power plant.  In contrast, poor neighborhoods encounter hazardous developments or disposal of waste every day.  Even less developed countries are at disadvantage and are exploited by unenvironmental projects and waste dumping of developed nations.
	"Aristocrats" believe that nature is beautiful and should be left untouched.  "Keep America beautiful and don’t litter" demonstrates this critique.  (Polonsky and Mintu-Wimsatt, 1995)  
	These critiques can be interrelated and are very useful in showing different perceptions of nature and therewith analyze environmental behaviors.  
	Religion plays another vital role in determining environmental behavior and view of nature.  As already mentioned, some cultures perceive nature as spiritual.  Nature is accepted as it is and perceived as holy.  People of such cultures, as Native Americans, live in close harmony with their natural surroundings and do not believe in interfering with nature's natural cause.  (Silverstein, 1993)
	Perception of nature can also explain the little environmental concerns of countries bordering the Mediterranean.  Italians and Spaniards have shown little respect towards animals.  Italians are known for cutting tongues out of live birds for gourmet salads, whereas Spanish bullfights have caused controversy around the world.  Cultures that show little respect towards animals, most likely have little respect for nature in general.  This may result in minor interest for environmental awareness and protection.
	Another theory on perception of nature was determined by Geert Hostede.  He categorizes cultures by masculinity and femininity.  His theory further proclaims that environmentalism in different cultures can be determined through this masculinity/femininity concept.
	Hofstede defines masculine countries as cultures that prioritize economic growth, while feminine countries take a more environmental sensitive position.  He further determines Germany, Belgium and Japan as masculine countries and Sweden, Norway and India as feminine countries.  (Hofstede, 1980)  However, his theory holds true only for certain countries.
	Although Germany is considered masculine and prioritizes economic growth, Germany is very environmentally sensitive.  Germany has many established laws to protects its environment.  In fact, Germany has some of the toughest regulations existing.  Japan in turn is slowly turning environmental sensitive as it finally realizes that the preservation of  nature is important.
	Sweden and Norway are environmentally sensitive as already noted by Hofstede.  However, though India is considered feminine, it has some to the world's worst air pollution, as well as forest destruction.  (Silverstein, 1993)

Other Factors that Determine Levels of Greenness
Density
	Population density is positively related to environmental concern.  (Sutton and Al-Khatib, 1994)  Germany, Netherlands and many other European countries demonstrate high levels of environmental awareness due to density.  Germany for example has 153 residents per square mile.  (Sudol, 1990)  As the population grows, consumption increases and space decreases, Europeans know that they no longer can consume and dispose, but rather must reduce, reuse, and recycle.  Landfills are overfilled.  There is no more space for waste.  As Europeans realize these problems, measures are taken and environmental friendly regulations are implemented.  
	Japan encounters the same problem.  With 750 people per square mile, measures must be taken to prevent and reduce waste.  (Silverstein, 1993)

Demographics
	Age.  According to research conducted by Roper, age was directly related to environmental concern.  Most green Americans are aged between 30-45.  Americans born in the 1920's demonstrate least concern for the environment.
	On an international lever, young Canadians are greener than older ones.  Further, Canadian children are very concerned about their environment, and consequently influence their parents' purchasing decisions.  ("Interpret the Demographics", p. 2)
	Sex.  Women are greener than men.  (Ibid)  Women are more sensitive.  Moreover they still do most of the household shopping and often make purchases for men.  (Roberts, 1996)  This implication probably holds true throughout many cultures.
	Income.  It is difficult to determine whether or not income influences environmental awareness.  Roberts concludes that historically in the USA, green consumers belonged to the upper class, nevertheless environmental deterioration now affect all class levels.  Poorer people might not be able to afford green products, yet they still demonstrate concern about pollution and recycling.  Another study conducted, determines that green consumers in the USA and Canada earn above average incomes.  ("Interpret the Demographics", p.1)  
	Common sense should demonstrate that people with limited money usually are less environmentally concerned.  If a person with little money had to decide between a recyclable (expensive) and nonrecyclable (cheap) packaged necessity, he/she would most likely select the cheaper product.  The same response applies to nations.  Developing nations have other worries besides saving the Earth.  Their priorities include feeding people and supporting economic growth, whether or not at the cost to the environment.
	Education.  There is a positive correlation between education and greenness.  Research done by Sutton and Al-Khatib shows that Americans are less educated on environmental issues than Belgians, which reflects in both countries' green policies. Americans have looser and lesser environmental laws than Belgians.  Perhaps one could even generalize that European strict policies are result of a more knowledgeable population on environmental topics.  
	Albeit the research revealed that Mexicans were more educated than Americans on environmental issues, green laws are not prevalent in Mexico.  (Sutton and Al-Khatin, 1994)  It can be concluded that education alone does not increase greenness, yet only has effect in combination with other factors. As for Mexicans, the other factor is income.  Although many Mexicans are educated in green issues, they do not have the funds to purchase green products.

Conclusion
	This research paper discussed various global environmental policies and analyzed several factors that contribute to cross-cultural differences in environmentalism.   Following can be concluded:
This research paper discussed various global environmental policies and analyzed several factors that contribute to cross-cultural differences in environmentalism.   Following can be concluded:
••	Green Marketing is a continuous trend.  As environmental concern increases, green marketing practices and green governmental policies will increase.


••	Many companies have begun to green their operations.  A perfect example: McDonald's 60% reduction of its environmental waste.  Businesses can no longer ignore the need for environmental concern and thus must green their operations to achieve consumer satisfaction an social responsibility.


••	Albeit environmental concern is increasing throughout the world, environmental practices vary from culture to culture.


••	All cultures share different values that are reflected in their behaviors and policies. Cultural differences result from variances in perception of nature, religion, economics and education.  Of these factors, economics has the greatest influence on environmental differences.  For instance, poorer nations have different priorities.  These countries usually only make short-term plans, such as immediate provision of food for their people and economic growth.  As people barely have enough to eat, saving the Earth is least of concern.  People with little money do not care whether or not the bread they buy is wrapped in recyclable material.
Developing nations are more concerned about economic growth.  They have few to no environmental regulations.  This can be of  benefit to developed nations, who are trying to escape strict policies and the costly effect on their operations.  Consequently, building an "unenvironmental" factory in Ethiopia benefits the developing nation (in this case, Ethiopia) as well as the developed nation.  Ethiopia moves towards economic growth at the cost of its nature, and the developed nation escapes its strict environmental regulations.
Nonetheless, economic prosperity shifts priorities.  As countries become wealthier and more stable, its inhabitants are less concerned with making it through the day.  Instead they are realizing the endangering of the environment.  After all, they want to breathe good air, have less waste, and make the Earth livable for future generations.  Prosperous nations tend to be more long-term oriented, as their needs are met for the short-term. 
   
	Green Marketing must be practiced to decrease the existing crisis of environmental damages.  It is the consumer's and the producer's responsibility to make this planet a safer place for future generations.  As consumers turn green, producers must turn green… regulations become green.  
	Although greenness varies around the world, and at times can even hinder trade, businesses should not avoid practicing environmentally safe operations.  Individuals think and behave differently.  Nevertheless, all share a common goal - to save the environment, of what little is left.

  
	 


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Executive Summary

	Environmental awareness is increasing throughout the world.  Consumers, policy makers, and businesses are turning green.  Consumers no longer select products by price, quality, and convenience.  Moreover, environmental responsibility has become another criteria for selecting a product.
	Policy makers have also turned green.  Many environmental regulations have been implemented to save the Earth.  This of course, affects business operations.  As consumers demand green products and policy makers implement green laws, businesses have no choice but to comply.  However, since environmental awareness is a global issue, the greening of business operations is somewhat hindered by many factors.
	The purpose of this research paper is to explore the differences of "greening" practices around the world, as well as to analyze why these differences exist in terms of cultural differences.
	Countries in Europe, Asia and America have become environmentally concerned.  Nonetheless this concern differs from country to country.  Whereas most central European nations have strict environmental policies, the U.S. only has some green laws, which are not even standardized throughout all states.  Asia is just beginning to turn green, with Japan leading, as Asia realizes that it can no longer handle the pollution and waste.
	Nevertheless, why do these levels of  environmental concerns exist?  Should not all people on this planet be equally concerned about the environment?  People have different perceptions of nature.  To one culture, nature may be sacred and should remain untouched, as to another culture, nature is only beautiful when sculptured by the hand of man.  Furthermore, density and demographics define these differences as well.  Countries that are small and overpopulated, as the Netherlands, tend to enforce environmental awareness more than nations with endless space.  Economics also contribute to the greening differences.  Poor countries are less concerned with environmentalism.  They are more concerned about food for their people and economic growth, even if it is at the cost of the environment.  As countries grow prosperous, environmental awareness increases since priorities have shifted…