Essay On Green Segmentation

Chapter 5

ENVIRONMENTAL CERTIFICATION AND EFFECTS ON SUSTAINABILITY

5.1 Introduction

5.2 Market Access

5.2.1 Extent of Green Segmentation

5.2.2 Demand and Supply: Price

5.3 Information Asymmetry: Knowledge and Awareness Gaps

5.4 Environmental Perception

5.5 Summary

5.1 Introduction

Chapter 5 analyses how eco-certification affects sustainability based on empirical data using the three themes within the conceptual framework (Fig. 3.1), namely market access, information asymmetry and environmental perception. While there exists a green segment of consumers who purchase eco-certified paper products, the role of eco-certification is not a major consideration for consumers as compared to other factors like price. Results also found a lack of consumer knowledge on eco-certification.

My findings indicate that eco-certification generally attempts to introduce the notion of sustainability to production networks, but its usefulness in the production

However for majority, eco-certification plays a relatively insignificant role in purchasing decisions. Instead, the linkages between eco-certification and environmental issues are not explicit enough and other purchasing criteria are more significant. In the semi-structured interview with SEC’s Mr M., he mentioned that despite the price premium, a segment of consumers still demands for eco-labelled paper products. However, most consumers do not look specifically for eco-certification because the links with environmental issues are not evident for majority:

There might be another person who is nonchalant [about eco-certified paper products]… which I think is about 50-60% of Singaporeans... Environmental issues are still very distant to this group... But there are... really passionate greenies, who really choose and buy things based on these sort of