How to Catch the Generation Y: Identifying Eco-Innovators Among Young Customers

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In a world of limited natural resources, the need for ecological considerations in product development and consumption is obvious. The environmental impact of innovations are therefore of interest to research and practice. By developing new economical products, companies are able to gain competitive advantage and improve the corporate image. Further new market segments can be captured and ecological innovations have a positive impact on long term employment. Despite their economic and environmental relevance, the flop rate of innovations in general reaches alarming levels. The success of eco-innovations ultimately depends on the individual adoption decision of the customer. Hence, the question arises, why do eco-innovators adopt ecological innovations? To answer this question the two areas of consumer characteristics have to be taken into account: environmental consciousness and consumer innovativeness. Additionally, the present study focuses on the promising market segment of the younger consumers (generation Y) out of three reasons. Firstly, young consumers have a high spending power (Moses 2000) and they are willing and able to consume (Abela 2006). Secondly, young consumers are more open to innovative technologies (Steenkamp et al. 1999). And thirdly, younger consumers tend to be more aware of existing and upcoming environmental problems (Franzen and Meyer 2010). At a first glance the first and second reason seem to contradict the third one. The ability and willingness to gather material possessions (i.e., consumerism) has been seen as one of the antecedents of environmental problems. But if we do understand what triggers the adoption decision for an ecological innovation; the increasing green purchasing power of young consumers will be for the benefit of the environment and the society in general. To sum up, young consumers are future innovators, workers and consumers. Therefore, young consumers are a promising target group of eco-innovations. The present research sheds light on this target group by identifying factors that influence eco-innovativeness of the younger generation. We propose and empirically test an integrative model to explain innovativeness in the domain of ecological innovations. To test the theoretical model empirically a cross-sectional study is conducted. A paper and pencil survey was administered to 446 young consumers, which are between 18 and 29 years old. Structural equation modeling led to the result that joyful consumption is an important antecedent of domain-specific eco-innovativeness. Additionally, a biospheric value orientation leads to higher eco-innovativeness, whereas altruistic values reduce eco-innovativeness. The results show that practitioners and product designers have to take into account not only the benefit for nature but also the hedonic component of a new product.