Abstract
The demand for environmental labels is increasingly becoming important for consumers to differentiate products and to make an informed choice. This study reports the findings of a business case study in Nova Scotia (Canada) that demonstrates how renewable wind energy and wind labeling can extend the competitive advantage of a producer. By using qualitative case study techniques, the study generates evidence which suggests on the firm level that wind energy and labelling influences competitive advantage of firms, can dictate a premium price, can differentiate products, yet achieve a low-cost advantage. Wind labels also have the potential to drive the supply chain’s environmental value to the consumer as the end user by requiring the distribution chain to follow good environmental practices. On the consumer level, in terms of label information, whereby product qualities cannot be evaluated by a search prior to purchase or by experience after purchase, eco-friendliness of the product can take predominance. Not all consumers will buy eco-friendly eggs; instead, there are other factors that drive consumers, such as their opinions towards wind technology, consumer psychographics, personality, and other behavioural determinants and, hence, attract a strong niche market. Finally, for the trust in labels, though the producer does not have third party accreditation, the labels work for them, through the means-end chain analysis where egoistic and altruistic intentions persuade environmental behaviour. As such, this study highlights the probability that in principle, there appears to be an opportunity for wind labelling to be successful; in practice, wind labelling is bound to attract a particular niche market through differentiation strategies.
Highlights
Sustainability is regarded as one of the most complex challenges that businesses must encounter
This study reports the findings of a sustainable business model in Nova Scotia (Canada) that demonstrates how renewable energy and wind labeling can extend the competitive advantage of a producer
We demonstrate that self-declared wind labels can be if not completely, beneficial for producers and retailers, and lastly, we examine the extent to how producers can create consumer confidence in wind labeling which can impact the overall viability of wind energy labeling, creating a viable sustainable business model
Summary
Sustainability is regarded as one of the most complex challenges that businesses must encounter. Achieving corporate sustainability involves developing business models for the greening of all their operational activities, in particular, renewable resources and their marketing activities Against this backdrop, this research looks at how sustainability in terms of a business model can use marketing strategies to differentiate products yet, at the same time, deliver value to customers. This study reports the findings of a sustainable business model in Nova Scotia (Canada) that demonstrates how renewable energy and wind labeling can extend the competitive advantage of a producer. It looks at environmental strategies by integrating marketing strategies to differentiate products yet, at the same time, deliver value to customers. The introduction of the new wind energy labeling certification reflects this need
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