Chapter 4: Developing and pricing goods and services
David O’Grady
Introduction
Green products is a phrase used to refer to industrial products that are friendly or rather, harmless to the environment. Other phrases used for the same purpose include ‘natural products’, and ‘eco-friendly commodities.’ In recent time, there has been a constant appeal to the world to think and go green as a way of promoting environmental sustainability. This has replicated in the industrial sector as they have started to produce and market ‘green products.’
Question 1
Green products are also labeled ‘natural’ and ‘eco-friendly’ commodities in groceries and/or hardware stores. Examples of these green markets-based products include green paint, which is smell free, eco-friendly cars that consume a reduced amount of gas, and eco-friendly paper products. Clorox products are also natural and safe since they contain significant proportions of lemon, coconut, and ethanol. Other examples of green products are bulbs, which have green beams, soaps with natural ingredients, and electronics with recycled metals among others.
Green purchasing is a concept that simply focuses on the environmental implication of a buying decision. Availability of green market influences the purchasing option and hence decisions of a potential buyer. As a customer, there is always a feeling that necessitate going green. This is because green products appear to be safe and harmless to both the user (consumer) and the environment in general. However, by deciding to think and go green means an environmental implication and hence the outlook of planet earth. (Goudie 2009) argues that making green purchasing decisions is one of the hardest decisions. This is because a product may be labeled natural, organic, or eco-friendly but it may not necessarily the manufacturing procedure and the desired effect of the product will be eco-friendly.
Thus, customers need to make well-informed purchase decisions and choices. However, green products have been associated with several benefits including reduced cost and increased customer satisfaction. Another factor that promotes purchasing of green products is the fact that there is a scientific qualification approach that tests the safety and efficacy of green products.
However, it is posited that a customer should not purchase a green product if the active ingredients/components have not been indicated on the packaging or any other Information Education and Communication material. This, therefore, implies that despite being perceived as good for consumption, green products would not be purchased if there were not list of the ingredients on the product label. In addition, clients who are culturally conscious will end up purchasing green products. This is because culture perceives natural products as having less adverse effects, hence safer and healthier than the conventional commodities. Nevertheless, customers would need to examine each product to ensure them meat environment and health safety requirements for certification of the products.
Question 2
People produce and sell green products because they believe; they are friendly to the environment and safe for humans. Destruction of the environment has been due to serious exploitation of the natural resources for human gains. Thus, since early 20th century world leaders have continued to fight for environmental protection. This is to say that the production of eco-friendly products will continue for as long as there is risk and/or actual exploitation of the environment by human actions. Besides, the seventh Millennium Development Goal (MDG) calls for nations to ensure protection of the ecosystem from sources of harm. One of the ways in which this MDG can be achieved is through the development and production of eco-friendly products. Thus, green products are here to stay since there will be continued demand for the products.
Sustainability of green products has been challenged because of the phenomenon like climate change and health risks that may be associated with the products. Besides, customers tend to question the genuineness of the ingredients listed on the labels. Suspicion of the ingredients and effects of green products may lead to reduced consumption and consequently, decreased sustainability.
Question 3
Labeling of green products is essential as it serves as a guide to potential customers on the actual composition of the product. Labeling also helps in making purchase decisions based on one’s tastes and preferences. Thus, it would be very important for companies dealing with green products to include a list of the ingredients on the label. Industries and firms that deal with production of green products are environmentally friendly. Such factories have developed policies and guidelines on protection of the environment.
They have also been involved in measures that aim to protect the planet earth from destruction. For example treating the waste material to safety level before emitting or releasing them into the environment. Such factories use and produce recyclable and biodegradable materials. Goudie (2009) argues that green products do not guarantee absolute safety of the planet. Instead, they tend to have a reduced negative impact on the environment compared to non-green products. Eco-friendly products also aim to modify the lifestyle and behavior of persons so that their actions and activities are not destructive to the planet. Such eco-friendly activities among human populations may include but not limited to a-forestation, agro-forestry, gardening, recycling of items and compositing. Furthermore, Goudie (2009) indicates that natural (green) products are less toxic, energy efficient and pollutes less the environment.
References
Goudie, A. (2009). The human impact on the natural environment: Past, present and future. Chichester: John Wiley & Sons .
Hoffman, K., & Bateson, J. (2002). Essentials of services marketing: concepts, strategies and cases. Texas: Harcourt Brace Col. Pub.
