Consumers’ preferences for eco‐friendly appliances in an emerging market context

Abstract

AbstractAt present, the South African (SA) energy supply per person surpasses that of several developing countries in the world notwithstanding the energy crisis in the country and the evidence that SA produces among the highest greenhouse gas emissions per unit of gross domestic product (GDP) in the world. The problem is aggravated by an increased demand for major household appliances in recent years, contributing to an overextension of existing capacity and perpetual power failures. Increasing consumption patterns in the rapidly expanding economy of South Africa require intentional efforts to promote more sustainable product choices e.g. an understanding of the relevance of environmental attributes in consumers’ evaluation of product alternatives to ensure lasting environmental implications. Using Sawtooth conjoint software, trade‐off tasks were included in a cross‐sectional survey involving 648 households in Tshwane, South Africa to assess the relative importance of various environmental attributes in relation to other product features (e.g. brand and price) of washing machines. Aggregate results reveal that consumers across various age, income and educational levels prioritize brand and price, despite the long‐term financial and environmental repurcussions of product features that impact on the use of natural resources. Four consumer segments were identified through cluster analysis that differ in terms of preference structures, which offer valuable insight for the development of intervention strategies and marketing campaigns. The findings underline current literature, namely that ‘green’ product offerings must also perform competitively in terms of non‐environmental attributes. Future studies should focus on a broader scope of factors, including consumers’ knowledge and awareness of the environmental impact of their product choices, to better inform marketing campaigns and intervention initiatives.