Title: Identifying the market segments for eco-labelled wood

Authors: Knut Veisten, Elisabeth Gill, Birger Solberg

Addresses: Department of Ecology and Natural Resource Management, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 As, Norway; Institute of Transport Economics, Gaustadalleen 21, NO-0349 Oslo, Norway. ' The Norwegian Touring Association – Oslo, Storgata 3, NO-0101 Oslo, Norway. ' Department of Ecology and Natural Resource Management, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 As, Norway

Abstract: This paper reports on a market segmentation of eco-oriented wood furniture consumers. An Engel-Blackwell-Kollat (EBK) model of purchase decisions was combined with conjoint analysis to gather individual characteristics on information search, purchase assessment and choice. The eco-oriented segments were identified and described, applying both a priori predictive segmentation based on lifestyle characteristics and post hoc cluster-based segmentation based on the conjoint choice part-worths and product attribute preferences. A convenience sample of consumers at an IKEA warehouse were interviewed in situ, responding to EBK-related questions on the demand for eco-labelled wood furniture, information search and trust, the evaluation of product attributes, sequential conjoint choices and media use and media interest. Based on the a priori segmentation, modern idealists obtained the highest eco-label part-worth. This segment represented a better distinguishable segment than the |most eco-oriented| segment identified from the post hoc cluster-based segmentation. Some individual characteristics discriminated similarly for the a priori and post hoc segmentations.

Keywords: eco-labelling; wood furniture; market segmentation; conjoint analysis; purchase decision; IKEA; clusters; Engel-Blackwell-Kollat model; green economics; lifestyle characteristics.

DOI: 10.1504/IJGE.2008.019999

International Journal of Green Economics, 2008 Vol.2 No.2, pp.190 - 209

Published online: 20 Aug 2008 *

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