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Högskolan i Halmstad Sektionen för Ekonomi och Teknik (SET) Europaekonom programmet (EUE) Have the automobile companies; Honda and Renault achieved to deliver their environmental message to their customers? Halmstad, Augusti 2009 Kandidatuppsats i företagsekonomi 15 högskolepoäng Författare: Tanja Ometlic 870426 Caroline Smith 850411 Adela Svajda 870726 Handledare: Richard Grönevall

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Page 1: Have the automobile companies; Honda and Renault achieved to

Högskolan i Halmstad Sektionen för Ekonomi och Teknik (SET) Europaekonom programmet (EUE)

Have the automobile companies; Honda and Renault achieved to

deliver their environmental message to their customers?

Halmstad, Augusti 2009 Kandidatuppsats i företagsekonomi 15 högskolepoäng Författare: Tanja Ometlic 870426

Caroline Smith 850411 Adela Svajda 870726

Handledare: Richard Grönevall

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1. ABSTRACT

Environment friendly, so called green marketing has become a discussed subject and

companies are constantly trying to find the best ways to reach the customers with their

green message. A trademark is considered to be able to work as a source of information

and risk reducer for customers, which can be a step towards green communication.

Customers are becoming more demanding and they have started to pay more attention to

the environment. What is important with trademarks is how customers perceive them,

what the image of the trademark is. The aim of this study is to find out and compare how

two multinational car manufacturers, Honda and Renault, have used their strategic

trademark in order to create a “green” image. By green image meaning so called goods

that are being perceived as environmental friendly by the customers. The research study

took place in Worcester and Birmingham in England, during the spring 2009. A

questionnaire was designed in order to find out how people perceive these two trademarks

and how aware they are of the “environmental contribution” that is being made by these

companies. The question we wanted to find a respond to where “Have the automobile

companies Honda and Renault achieved to deliver their environmental message to their

customers?” The results from this illustrates that both companies need to increase their

communication with the customers, and that attributes like price and quality are more

important than “environmental responsibility”. This study is based on only Honda and

Renault and has not taken the rest of the automobile industry into consideration.

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TABLE OF CONTENTS PAGE

1. Abstract

Contents Page 2 2. Introduction 4 2.1 Key words 6

3. Methodology 8 3.1 Documentary research 9 3.2 Semi structured interviews 9 3.3 Questionnaires 11 3.3.1 The construction of the questionnaires 12 3.4 Selection of respondents 13 3.5 Limitations 13 3.6 Generalizability 14 3.7 Validity and Reliability 15 4. Literature review 17 4.1 Increased revenues and cost reduction 17 4.1.1 Corporate social responsibility (CSR) 19 4.2 The “Win-Win” hypothesis 20 4.3 Greenwashing 21 4.4 Eco-labelling 23 4.5 Generic strategies – the matrix approach 25 4.5.1 Eco-efficiency 26 4.5.2 Beyond compliance leadership 26 4.5.3 Eco-branding 26 4.5.4 Environmental cost leadership 27 5. Honda and Renault 28 5.1 Honda 28 5.1.1 Environmentally friendly automobiles 29 5.2 Renault 31 5.2.1 Environmentally friendly automobiles 32 5.3 Comparison between Honda and Renault 32 6. Results of the Survey 34 Table A 35 Table B 36 Table C 36 Table D 37

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Table E 38 Table F1 and F2 38 Table G 39

7. Discussion 40 7.1 The” Win-Win” hypothesis 40 7.2 Greenwashing and Eco-labeling 42 7.3 Strategic approach 43 7.4 Sustainability 46 7.5 Analysis of the questionnaire 46 7.5.1 Renault 47 7.5.2 Honda 48 8. Conclusion 50 9. Further Research 52 10. Reference list 53 10.1 Books 53 10.2 Journals 54 10.3 Electronic resources 56 Appendix 1 58 Appendix 2 59

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2. INTRODUCTION

A subject that has been significantly discussed during the past decade by the media,

politicians, by business and industry and the general public is the environmental

friendliness or so called “green marketing”. Much has been brought up about the

environment and the damaging effects produced by everyday activities. Saha and Darton

(2005) are arguing that improving environmental performance, until recently has been a

question of legislative compliance and occasional reactions to external events and

pressures. Nowadays, company decision-makers are increasingly communicating “green”

features about their products and services, expressing green improvements. Some authors

disagree on whether companies are using the “green” term only in an attempt to gain

competitive advantage or if companies really have started to change their ways.

As it is claimed that consumers have become more discerning and place greater

expectations on corporate behavior, the notion of social responsibility has become a key

consideration in all organizational activities. Social responsibility has become an

important aspect of marketing decision-making because companies do not just have a

duty towards shareholders but must act in the best interest of society. It has become to be

an important issue for the organization, where the companies have to take the

environmental questions into consideration, which means the responsibility towards the

environment. However, some authors are arguing that green marketing is nothing more

than a public relation exercise, others are pointing out that it is vital for companies to

incorporate environmental concerns into their strategies if they are going to have a chance

to compete in the market.

In addition, some authors are arguing that customers are becoming more demanding, and

that they have started to pay more attention to the environment. In response to the rising

problems regarding the environment, companies are changing their strategies and

reaching out to their customers by communicating a green message. However, a problem

that has been discussed is that some companies could have communication problems with

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their customers in order to deliver their green message out to them. This has been one of

the major motivations to study if the automobiles Honda and Renault achieved to deliver

their green message to their customers, which lead to our question; “Have the automobile

companies Honda and Renault achieved to deliver their environmental message to their

customers?” They are trying to show the world their responsibility towards the

environment by producing automobiles that are less harmful to the environment. It could

be argued that when companies are becoming more environmentally aware and are

starting to take actions towards greener goals, they want to show it to the consumers and

their social responsibility becomes an important part of their marketing decision making.

The aim of this study is to discover if the customers are informed about the green

message that Honda and Renault want to deliver to them. This study is based on different

theories about the “green marketing”, the advantages firms might receive by

incorporation eco-performance into their strategies and their potential to improve

attitudes towards the brand. The environmental friendly strategy of Honda and Renault

will be discussed, which will be based on different theories for example Orsato’s

framework. A questionnaire has been designed in order to understand the customers’

view of the companies’ environmental message. This will be analyzed in the discussion

which will present the findings and finally a conclusion where we present an answer to

the question.

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2.1 Key Words This study presents some key words that are important to explain, which might help the

reader to get a better understanding. Some definitions that this study adapts are the

following:

-Corporate Social Responsibility (CSR) "A concept whereby companies integrate social and environmental concerns in their

business operations and in their interaction with their stakeholders on a voluntary basis"

(European Commission, 2009). In this study we also call this social responsibility.

-Eco-labelling This could be argued to be the contrast of Greenwashing, which means that eco-labelling

provide the customer with increased trust and makes the green message less confused,

with the use of authorized symbols, to make it easier for consumers to recognize eco-

labelled products (Charter and Polonsky, 1999 and Basu et. al, 2003).

-Environmental friendliness This is another word for “Green Marketing” which is about the process of selling

products and services that are based on environmental benefits for each company (Kotler,

2008).

-Greenwashing This term explain situations where companies adapt green advertising without

environmental emphasis in their strategies (Ahonen, et. Al 2001). This can confuse

customers about the green message in the companies’ advertisement.

-ISO 14001 ISO is short for “International Organization for Standardization” and the ISO 14001 is

one specific standardisation within this organisation. To be able to achieve ISO

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qualifications on a product certain characteristics of a product such as quality,

environmental friendliness, safety, reliability, efficiency and interchangeability needs to

be fulfilled (ISO, 2009).

-Sustainability It means meeting the needs of the present without compromising the ability of future

generations to meet their own needs (Peattie and Charter, 2003).

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3. Methodology

According to the research of this study the main focus is on the two chosen companies

Honda and Renault. The aim is to see how the customers understand their goals within

the “green marketing” strategies of these two automobile companies. Jacobsen et. al.

(2002) present different strategies that could be implementing through a research study.

This study is based on the deductive research (Saunders, et al 2007). It means that the

research started with the collection of different theories about green marketing and the

automobile industries, which became limited into different specific theories (see literature

review, chapter 4). Further it limited our study into two automobile companies; Honda

and Renault. The specific question, “Have the automobile companies Honda and Renault

achieved to deliver their environmental message to their customers?” which is the title of

this work, was created in order to see if customers understand the green message of

Honda and Renault. At the end of the study the result is analyzed and confirmed.

An alternative research method is the inductive research (Jacobsen, 2002). The inductive

is the opposite of the deductive research, which means that the aim is to start with an

observation of a specific subject that leads into a theory, which is present at the end as the

result. Nevertheless, Jacobsen (2002) has been arguing that when the researcher wants to

answer different questions the deductive approach might be the most suitable. However,

there is some negative critic about the deductive approach which is that when the

researcher collects the valid data for the study, it is a risk that some relevant data could be

ignored (Jacobsen, 2002). It might not be possible to create a research without

weaknesses, but Saunders (2002) has been arguing that it is important to consider them

through the research.

In addition it could be argued that there are two main methods to adapt during a research

study which are the quantitative and qualitative methods. These can help to resolve the

research problems and it can be suggested that the choice of method is based on the

researcher and research problem.

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Suanders et.al. (2007) refer that a qualitative method is a subjective approach that consists

of examining and reflecting on perceptions in order to understand the social and human

activities. In addition, the quantitative methods is seen to be an objective approach that

includes collecting and analyzing of data, often in numerical form, and adapting of

statistical tests and analysis (Saunders, et al 2007).

3.1 Documentary Research Bryman and Bell (2003) argue that documentary research is about the applying of texts

and documents, which can be in form of journals, reports, videos and other research

sources. According to the documentary research, the main advantages with the

documentary research can be suggested to be that those resources could be used to obtain

information.

In addition, it offers the advantage to reach a wider perspective from a number of

different peoples’ attitudes. However, Denscombre (2007) argues that the documentary

research has some limitations, such as that the date can be unreliable. This method, of

collecting data, has been chosen because the documentary sources can provide relevant

information for this research study. It supports a variety of to obtain information such as

journals, documents, files, reports and books. It can be argued that a high number of

documents about the automobile industries can be found which can help to get a

background about Honda and Renault and inform how they try to be environmental

friendly. Furthermore, a high number of documents about the green marketing strategies

are needed in order to understand the subject and apply them into the automobile

industries.

3.2 Semi Structured Interviews To reach an inside view of the information, the secondary research has been an important

starting point. A high number of researches in the area of green marketing have been

performed from sources such as books, journals and annual reports. However, the use of

the companies’ annual reports, customer literature and environmental data may not fulfill

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the need of providing enough information about companies’ strategy goals. The semi-

structured interviews were thought to be used in order to clarify some questions. Bryman

and Bell (2003) argued that the semi-structured interviews are a profitable solution to

address specific areas of interests. It has been argued to be a form of qualitative research,

which also facilitates detailed and descriptive responses, therefore enabling the

companies’ environmental strategies and motivations for those to be explored in depth.

The idea was to interview managers because they have the best knowledge about the

company’s motives and strategies. The reason behind this thought was that, through the

qualitative research approach reach peoples’ views, feelings and experiences. It has been

argued that in order to reach this information, interviews are more suitable, as

questionnaires should be used when uncontroversial facts is aimed to be gathered

(Denscombe, 2007).

The semi-structured interview was chosen because there would be a list of issues that will

be addressed and questions that would be answered during the interview. When the

interview is structured, it means that the researcher has to decide which elements the

focus would be on. Jacobson (2002) has been suggesting that during a structured

interview, the most important facts might be overlooked and that the main goal with the

qualitative research method could be lost. However, it could in addition be argued that an

interview without structure could lead to that the facts will be complex and difficult to

analyze at the end. This is the reason why semi structured interviews has been chosen.

There will be certain aspects in the interview that would be put in focus, but there will in

addition be the possibility to maintain a high grade of openness.

Even that a plan and the questions were designed, unfortunately it was not possible to

perform these interviews with the marketing department as neither Honda or Renault had

the possibility to answer our questions. The argument was that the marketing department

did not have time and resources to answer private questions because they obtain many of

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them daily. It was therefore recommended to visit their homepages instead as the

information that was needed could be found there.

It could therefore be summarized that the first idea of this study was to use a combination

of quantitative and qualitative methods. The idea was to create a semi structured

interview with the managers of Honda and Renault, and then create questionnaires for the

customers of Honda and Renault and compare the answers with those from the interview.

However because of the mentioned circumstance, this study became to be based on the

quantitative approach based on the secondary data about the companies and the theory,

and a primary research based on the questionnaires. An alternative could have been to

interview other administration workers at Honda and Renault, but because this study is

based on the “green marketing” strategies, it was considered that the information would

not have been relevant for this study.

3.3 Questionnaires It has been considered that the most effective way to find out consumers perceptions

according to Honda and Renault brand would be though a quantitative research using

questionnaires. The cause for this is that the questionnaires for the quantitative research

are designed with the purpose of being operational definitions of concepts that would

reflect attitudes, opinions and views. It has been considered that questionnaires are

attempting to measure how intensely people feel about issues (Silverman, 2002). Peoples’

attitudes, beliefs and opinions are important values as it has been assumed that these

attitudes influence behavior.

The result achieved through the questionnaires, will be used in order to see how well the

respondents know of the green image of Honda and Renault. It is important for this study

as it is based on how well Honda and Renault have achieved to deliver their green

message to their customers. The result will be analyzed and discuss with a connection to

different theories from the literature review.

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3.3.1 The construction of the Questionnaires The literature has pointed out that according to methods that have been used to

assembling quantitative data, there might be one type that is dominating: the

questionnaires with given answer alternatives. There are different sorts of answer

alternatives questionnaires that can be used, and this research study decided to mix those

alternatives. Sapsford (1999) argues that binary questions refers to those questions that

can be answered through the “yes” and “no” alternatives. With the aim to find out

peoples’ opinions and attitudes, it could be considered that information can be acquired

by asking for a rating of perception or attitudes.

The literature has however discussed whether or not to include a “middle category” into

the answer alternatives. This category allows people to choose a neutral answer that could

be classified as “do not know”. Jacobsen (2002) argues that three, five or seven answer

alternatives should be applied if the “middle category” would be included. If the “middle

category” is not considered, it could be seen as that the people are forced to have a certain

opinion and choose a specific side, which has been highly recommended by Sapsford

(1999). This research has been using the five answers alternatives, which follow the

argument of Jacobsen that people might feel neutral about some things and by forcing

them to have an opinion might lead to incorrect answers. This might reduce the risk that

they are forced to choose an opinion which at the end of this research could lead to a

wrong conclusion.

Furthermore, a third alternative that has been applied was the “open - ended” questions.

Silverman (2002) has comment that the information that is gathered through those

“openended” may break the object of the qualitative method that is to gather standardize

information. There is no limitation of each person’s answer. It has been argued that this

type of questions should be used in a situation where it is possible to write down a

significant number of answers, rather than choose only one (Denscombre, 2007).

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In this study, these questions were chosen of two reasons. Firstly, they were applied at the

end of some questions to provide the person with the possibility of an open category. This

offered the person’s the possibility to fill in their own alternatives if they felt that the one

presented did not fit for them. Secondly, some answers needed to be more specified,

which was connected into questions where the respondents were asked to justify a

judgment and opinion (See Appendix 1 and 2). According to questions, the study include

different type of questions, which aim was to obtain as honest, truthful and reliable

answers from the people, in order to achieve a high validity and reliability.

3.4 Selection of respondents The respondents that answered our questionnaires where a mix of men and women of

different ages that where found in Worcester and Birmingham in England where this

study took place. We did not only ask people who where at the Honda and Renault firms

since we thought that those people might have a higher knowledge about the Honda and

Renault automobiles, that is why we as well asked people randomly on the streets and on

trains. When selecting respondents we tried to find people of different ages to get a wider

view on what people knows about the two automobile companies, Honda and Renault

that this study is based on.

3.5 Limitations It has been discussed that a researcher will find limitations when carrying out an

investigation (Saunders, et al 2007). In this study, few things may be discussed that could

be classified as limitations. Firstly it was time: it may be more interesting to analyze more

companies than two companies to reach more reliable results. However, because of the

short period of time, the focus was set into two companies in order to answer the

question.

Secondly was the limitations found in the methodology part. It was difficult to obtain

primary data, as both Honda and Renault did not have the possibility to answer our

questions. In addition, the consequence was that this was performed only with the

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questionnaires and with the use of the secondary data and contrasted in order to avoid

unreliable information. Charter and Polonsky (1999) pointed out that in order to build a

trademark; the organizational culture may be an important feature to consider during a

research study. It has been chosen not to focus on the organizational structure as the study

may get wide according to the time limit for this research study.

A further limitation might be the generalizability, it could be discussed if the 40

questionnaires for each firm were enough to reach generalization. Jacobsen (2002) has

been arguing that it might not be enough, and that this approach can lead to that relevant

data could be gathered but that the chance to generalize is small. However, it could be

specified that the findings in this study should not be generalized to other companies, as

the focus has been on two specific companies, Honda and Renault at a specific time. The

fact that the research only focus on these two firms could be an argument to that the

generalization is small in this study.

3.6 Generalizability Silverman (2002) argues that in a quantitative research the concern is usually whether the

findings can be generalized beyond the confines of the particular context in which the

research was conducted. Furthermore it has been argued that an important thing is when it

comes to whether or not the answers from few people might be generalized to the whole

population, which is how one can create a representative sample (Silverman, 2002). In

order to achieve a sample that is as representative as possible, the “probability sampling”

was applied. This highly eliminates bias from the selection of a sample by using a process

of random selections.

Jacobsen (2002) argues that if a researchers goal is to find out what people think about a

particular firm, a huge error would be too mainly ask persons that go and buy products in

that particular firm. There is a chance that these people will have a more positive opinion

about that particular firm. In order to achieve a more generalized conclusion, it might be

important to ask people that are not present at the place. To follow this argument, it was

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decided to hand out questionnaires until it was collected 40 regarding Honda and 40

regarding Renault that where complete. Those questionnaires were handed out to people

that could be found inside those firms and even randomly to people on the street, trains

and to people of different ages. In an attempt to obtain a generalizable picture of Honda

and Renault the information was gathering from persons that visits those two firms and

from the people that may prefer other trademarks in the automobile industry.

3.7 Validity and Reliability It has been considered that the main issue with the measurement of validity has to do with

whether a measure of a concept really measures that concept. It has been argued that the

researcher should minimize the personal influence on the objective that has been studied

(Sapsford, 1999). It could be seen as an objective that is being studied, and that this

reality cannot be disturbed by the researcher. The researcher should avoid that the results

of the research would be influenced by the researcher.

Furthermore, Denscombre (2007) has pointed out that a research cannot be completely

free from a “research effect”, which means that the researcher will have some influence

on the results. All forms of investigation mean that some form of personal contact will

occur. Personal contact with research objects is preferred according to Jacobsen (2002).

Jacobsen (2002) points out that nearness is preferred over distance. In this research study,

there was a research design chosen where personal contact was not possible to avoid,

which mean that it could be argued whether or not the answers were influenced by the

researcher.

It has been considered that if a researcher makes an investigation through questionnaires,

it is preferred to make it face-to-face than to send them by e-mail or post (Saunders, et al,

2007). These authors are basing their arguments on the fact that there will be some degree

of “research effect” in every study, even if the researcher is not in contact with the

research objects. The distance can lead to a large gap between the researcher and the

research object which in addition can lead to that the researcher loose the change to go

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deeper into the individual’s perceptions and interpretations. It can be argued by some

academics that the close relationship with the persons that were given the questions may

have influenced their answers. However, Jacobsen (2002) considers that as long as the

researcher is into the relation with carefulness and without expressing its own opinions,

this way is to be preferred, as it can influence the individuals with the opportunity to ask

questions if there is something that they do not understand. In addition, Jacobsen (2002)

pointed out that personal contact can lead to more honest answers, and that the researcher

will know who is answering the questions. According to this arguments it could be

suggests that the validity of this research study is high. There were some people that were

interested in the research subject and wanted to know more about it. However, the

researchers tried to hold the answers neutral so the “research effect” would be minimized,

meaning that no personal opinions and feeling were expressed of the subject which may

have been able to lead to different answers.

Sapsfors (1999) has considered that when the validity is high it could influence and result

in high reliability. According to the reliability it could be argued that the measurement

could be influenced by the time. If the same measurements would be performed in the

future, it could be argued that the answers may not be the same. There is a chance that

Honda and Renault in the future change their marketing strategy and their communication

with the customers that can lead to that consumers change their perceptions about the

firms, and their answers could in addition be different.

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4. LITERATURE REVIEW

Shrivastva argued in 1994 that even though few studies have empirically verified the

trend, environmental associations seem to have become a generally accepted way of

enhancing brand equity. Thirteen years later May et. al, 2007, still agree with Shrivastva

on the argument that few studies have proven that environmental association really

enhance brand equity but they state that people are showing greater concern towards the

environment then they used to a few years ago. As the concern about environmental

deterioration has increased, much has been published on the advantages of including

environmental information in marketing strategies (May et. al, 2007). For marketing, the

challenge is twofold. In the short term, ecological and social issues have become

significant external influences on companies and the markets within which they operate.

Companies have to react to changing customer needs, new regulations and a new social

trend which reflects increasing concern about the environmental impacts of business. In

the longer term, the pursuit of sustainability will demand fundamental changes to the

management paradigm which underpins marketing and other business functions

(Shrivastava, 1994).

4.1 Increased Revenues and Cost reduction New forms of corporate behavior and relationships with internal and external

stakeholders have started to emerge. Nowadays companies are finding themselves

responding to controversies caused not by their wrongdoing or negligence but by

society’s changing expectations (May et. al, 2007). Much has been made of the potential

of good eco–performance to generate competitive advantage (Elkington, 1994; Porter and

Van der Linde, 1995). In a wide range of markets companies have used eco-performance

as a basis from which to compete. Porter and Van der Linde (1995), argues that the search

for environmentally superior solutions leads to innovation and the creation of more

efficient and effective technologies. Varadajan (1992) termed this as “enviropreneurial

marketing”, stating that environmental legislation sets new challenges for companies,

which promotes them to be innovative and secure improvements in competitive as well as

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environmental performance.

Peattie and Charter (2003) are some of the authors who believe that sustainability is the

keystone of the green marketing philosophy. A sustainable approach to consumption and

production involves enjoying a material standard of living today, which is not at the

expense of the standard of living of future generations. The conventional wisdom

concerning environmental protection is that it comes at an additional cost imposed on

firms, which may erode their global competitiveness (Ambec and Lanoine, 2008). This

argument is supported by Walley and Whitehead (1994), who argue that it is difficult in

practice to achieve and sustain competitive advantage from good eco-performance. Their

argument is based on the belief that customers are difficult to convince and that the media

have often been more critical of those companies attempting to improve their eco-

performance and capitalize on it, than of the most polluting and wasteful companies.

Despite this, it is clear that poor eco-performance can put a company at a massive

competitive disadvantage. It could be argued that the issue whether it pays to be green is

complex and costly to address.

Friedman (1970), states that environmental concerns divert managers from their main

responsibility, which should be the maximization of profit. This argument has been

challenged by analysts during the last decade who argue that there are many ways that

improving a company’s environmental performance can lead to better economic and

financial performance, and not necessarily to an increase in cost. It could be argued that

the expenses associated whit reducing pollution can be compensated by gains made

elsewhere. To be systematic, both sides of the balance sheet should be viewed: increased

revenues and reduced costs.

Better environmental performance may facilitate access to certain markets. Kotler (2008)

is pointing out that the demand for environmental products is increasing and in order to

be able to compete successfully the companies must provide the customers with what

they are demanding. Peattie and Charter (2003), argue that environmental association can

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add value to a product and brand which might lead to customer loyalty. The argument

against this statement is that no strong empirical evidence has been found that customers

are influenced by a company’s “green” image (Ambec and Lanoie, 2008). This statement

is supported by the study of Montoro-Rios et. al (2008), showing that environmental

associations are not very useful when it comes to improving attitudes and purchase

intentions. It is argued in the literature that both governments and private firms have

started to pay more attention to their suppliers’ environmental performance. Peattie and

Charter (2003) point out that greening is forcing many companies to reconsider supplier

relationships since their total environmental impact will be strongly influenced earlier in

the supply chain. Companies are monitoring and trying to improve their suppliers’ eco-

performance. May et. al (2007) discuss a phenomenon called green public purchasing

(GPP). Whit this statement they argue that environmental performance of suppliers have

become a crucial criterion when public administrations choose their suppliers. This might

indicate that firms selling to governments or other businesses can gain better access to

certain markets by improving their environmental performance.

Although good eco-performance in some cases may be associated with investment and

increased costs, analysts are trying to demonstrate that it actually can provide

opportunities for cost advantages. Lankoski (2006), point out that less pollution will lead

to lower liability costs by avoiding potentially costly litigation and fines. Investments

using a more radical, clean technology approach are being shown to be capable of

reducing material and energy inputs, and cutting inefficient pollution and waste (Porter

and Van der Linde, 1995). This argument is supported by his study where it was

investigated 181 waste reduction projects and only one led to a net cost increase.

4.1.1 Corporate social responsibility (CSR) According to Cheney et. al (2007), corporations need to include the natural environment

as a central consideration in their strategies as they are responsive to multiple

stakeholders, which pressure companies to become greener. This approach is being

referred to as: corporate social responsibility, CSR. Even if some analysts are skeptical to

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the whole idea with green marketing and its ability to provide companies with

competitive advantages, others argue that green will be a core requirement for doing

business in the future.

Corporate social responsibility is a form of corporate self-regulation integrated into a

business model. The aim with the CSR policy is that it would be a, self-regulating device

within the firm where they could ensure that they follow the law, ethical standards, and

international norms (Fisher and Lovell, 2006). There are three different reasons for a

company to engage in CSR, one is the unselfish reason, where the firm see itself as

having a responsibility towards the society and its different parts. Another reason is the

ethical, where CSR can be seen as moral act. An additional reason is the strategically

decision to use CSR, where the main interest lays in using it as a tool to achieve success.

According to Porter and Kramer (2006) a firm can achieve some competitive advantages

from using CSR and they should find its own position where they can operate in order to

tactically take advantage of CSR in the best possible way for their own interests of the

firm.

4.2 The win-win hypothesis A debate has been going on between analysts “whether it pays to be green”. Whilst green

issues have certainly become a political and legal issue, as well as a social concern, the

majority of academics now recognize investment in the environment as a business

opportunity rather than an external threat.

Eco-collaboration between businesses and advocacy groups involved what has become to

be known as win-win environmentalism. In this model, sustainable development is

fostered by greening corporations through market incentives (Livesey, 1999). Waddell

(2000), states that environmentally responsible behaviour improves the company image

and benefits the corporate bottom line through the development of innovative products

and processes that reduce costs, increase productivity, or offer other competitive

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advantages in the marketplace. Leopold stated in 1949, that sustainability could be

developed only when humans begin to understand themselves as a part of, rather than

apart from, nature. The literature describes sustainability as a concept where the quality of

human life is improved while the diversity and vitality of the earth is conserved.

According to the “win-win” hypothesis there are extensive opportunities for business to

profit from environmental investments (Orsato, 2006). Reinhardt, (1999) is stating that

environmental policy needs to be based in the economic fundamentals of the business, the

structure of the industry in which the business operates, its position within that structure,

and its organizational capabilities. Many academics agree with this statement, with the

argument that such circumstances might lead to competitive and sustainable advantages.

This positive view of the relationship between business and the environment is called

“win-win” hypothesis, a situation that will favor both public benefits and corporate

profits. (Orsato, 2006).

Walley and Whitehead (1994), on the other hand are skeptical to the idea of “win-win”

situations. They argue that win-win situations are very rare, and although they might

occur the financial return is likely to be negative because of the investment amount for

regulation compliance. Academics like Cox (2004), agree on this statement, explaining

that win-win situations are rare in business. Some relationships or situations appear to be

successful, sometimes because they are sustained over long periods of time. However

Cox (2004) argues that closer examinations may demonstrate that the parties are not

really achieving what would be regarded as winning outcomes.

4.3 Greenwashing The world is facing enormous environmental problems and challenges. A national

Cone/Roper survey showed that many people are convinced that businesses should play a

major role in confronting these issues (May et. al, 2007). It is obvious that many people

are expecting companies to promote corporate images that reflect their environmental

awareness and involvement. Waddell (2000), points out that more marketers are making

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environmental claims about their products. This might be because they recognize that

environmental responsibility is a potential source of marketing advantage. Marketers can

transform this crisis into an opportunity. Some of the literature suggests why firms might

increase their use of green marketing. Polonsky (1994), for example, states that

organizations perceive green marketing to be an opportunity to achieve their objectives,

and they believe they have a moral obligation to be more socially responsible. Ottman

(1993), discusses that firms, that use green marketing must ensure that their activities do

not mislead consumers, and do not break any of the regulations or laws dealing with

environmental marketing.

Peattie and Charter (2003) argue that in order to practice green marketing policies, a

company’s whole structure must be integrated. Companies must give their customers

information on how they are incorporating environmental values into manufacturing

processes, products and the corporate culture.

Literature is implying that customers easily can get skeptical towards a company’s

intentions. Greenwashing is a term that is used to explain situations where companies use

green advertising without environmental emphasis in their strategies (Ahonen et. al,

2001). Greenwashing is the misuse of the principles of environmental marketing and

means that consumers cannot trust the content of advertisements. It makes one suspicious

if companies really are green or if they are just pretending to be. It is important that

companies recognize their responsibility and move towards a more sustainable approach,

but it is also crucial for them to demonstrate a genuine environmental commitment. Saha

and Darnton (2005), point out that many companies would like to see themselves as being

“green”, but the opinion of what is considered to be “green” vary among businesses and

individuals. Academics like Polonsky (1994), and Welford (1995) argue that in order for

a company to use a green advertising approach they have to be aware of all the activities

that green marketing incorporates, like product modification, changes in the production

process and packaging changes. There are many issues that green marketers have to deal

with, in order to be able to incorporate green advertising or promotion into their

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strategies. Competitive advantage based on environmental friendliness requires

integrating environmental perspectives into all aspects of marketing planning; especially

marketing strategies but also structures and functions. One method that companies can

use in order to communicate environmental friendliness of a company or product is to

include “eco-labels” in their advertisements.

4.4 Eco-labelling Even if little scientific literature examine which impact environmental information has on

the formation of new attitudes towards products or brands many companies seem to strive

for competitive advantage by including environmental information in their promotions.

Ginsberg and Bloom, (2004) argue that green marketing has not lived up to the hopes and

dreams of many managers and activists. Their investigation has revealed that customers

would not sacrifice their needs or desires just to be green. When customers have to

choose between product attributes or helping the environment, the environment almost

never wins. Analysts argue that green products have been hurt by the perception that such

products are of lower quality or that they do not deliver on their environmental promises.

The literature implies that customers easily can become skeptical towards a company’s

intentions. Some firms can claim that they are “green” without actually incorporating

environmental concerns into their strategies. Something that is considered as trustworthy

in respect to the environment according to Charter and Polonsky (1999) is eco-labelling

of a product. It is working in the sense that an independent share puts up demands after a

certain criteria for environmental friendliness that the product has to fulfill. This can

provide the customer with increased trust and make the message less confusing.

Environmental marking has become standard in green marketing and green trademarks.

Kotler (2008) is discussing the importance of environmental marking when it comes to

green marketing. Kotler (2008) points out that environmental marking has become one of

the most legitimated types of information for an environmentally adjusted product, and

that environmental marking is viewed as one of the most important tools in order to

inspire purchase and consumption of green products.

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Charter and Polonsky (1999) are stating that many companies nowadays are trying to

improve their brands by associating themselves with green images. Montoro-Rios et. al

(2008) agree with Charter and Polonsky (1999) on this statement and are also pointing

out that much has been published lately on the advantages of including environmental

information in marketing strategies. Kotler (2008) is discussing that the demand for

environmental products is increasing and in order to be able to compete successfully on

the market a company must give customers what they are demanding. Ginsberg and

Bloom (2004) on the other hand do not agree with this statement. They believe that even

though public opinions often declare that customers would prefer green products over less

green products this is not completely true. Customers almost never choose environment in

front of other concerns like product attributes and price. Ginsberg and Bloom (2004) also

argues that many people perceive green product as being of lower quality and that they

are not delivering the environmental promise. Not many customers are ready to sacrifice

their needs in order to become green.

Basu et. al (2003) are some of the academics who believe that eco-labeling can provide a

market-based solution to the under consumption of eco-friendly products. Many

proponents argue that certification for eco-labels necessarily will improve firm-level

operations and thereby improve global ecosystem health (Swallow et. al, 2000). Eco-

labelling seems to have become a popular way to provide information to customers about

a product which is characterized by improved environmental performance and efficiency

compared with similar products. Results have showed that the awareness of national eco-

labels has increased drastically, and surveys in developing countries have showed that

customers are willing to pay higher prices for environmentally friendly products (Basu et.

al, 2003). Ginsberg and Bloom (2004) discuss that customers are willing to pay a

premium for organic food, but that customers in general are unlikely to compromise on

traditional product attributes, such as price, quality and performance in order to be green.

It is not easy for companies to learn how to handle the dilemmas associated with green

marketing and there is no single green marketing strategy that is right for every company.

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In the absence of eco-labeling, consumers are unable to distinguish products that are

made via eco-unfriendly methods from eco-friendly ones. The primer purpose of eco-

labeling is to help customers make consumption decisions by providing them with

product information (Basu et. al, 2003).

4.5 Generic strategies – the matrix approach How firms compete and what strategies they choose are important questions for the

economy. The answers to these questions help explain individual firms’ successful and

unsuccessful competitive moves and the causes of better and worse performance. Given

the importance of competition, an important part of the literature has focused on the

identification of the most successful competitive strategies that firms pursue.

Porter’s model is a well known framework within the literature that is used to understand

the broader relationship between green and competitiveness, emphasizing the

opportunities for converting external environmental costs into internal cost savings

(Porter and Van der Linde, 1995).

Figure 1: Generic Competitive Environmental Strategies

(Source: Orsato, 2006)

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4.5.1 Eco-efficiency Porter states that productivity is the key element for companies to gain competitiveness

(Porter, 1990). Porter and Van der Linde (1995), argue in their work that waste consists

of an inefficient use of resources and therefore should companies promote resource

productivity in the form of material savings, increases in process yields, and better

utilization of by-products. By focusing on the environmental impact of organizational

processes, it could present an opportunity to enhance resource efficiency and therefore

reduce costs. Firms that are aiming to reduce the cost and the environmental impact of

organizational processes should focus this strategy.

4.5.2 Beyond Compliance Leadership Apart from increasing the efficiency of the organizational process, some companies want

customers and the general public to become aware of their efforts. The communication of

a firm’s environmental effort may work as a tool of differentiation and produce some

positive outcomes for the firm. Companies can adopt an Environmental Management

System (EMS), which can help them monitor and improve their environmental impact

(Nash and Ehrenfeld, 1997). By communicating their environmental approach, a

company might enhance their public image and corporate reputation.

4.5.3 Eco-branding By using this strategy firms are trying to differentiate themselves based on the

environmental attributes of the product. Porter (1985) states that a firm can differentiate

itself by providing something unique that is valuable to buyers beyond simply offering a

low price. Reinhardt (1998), point out that in order for companies to gain competitive

advantage through eco-branding three requisites need to be fulfilled:

- Customers must be willing to pay for the cost of ecological differentiation

-Reliable information about the product’s environmental performance must be available

to the customers

-The differentiation should be difficult to imitate by competitors

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By using eco-labeling the company can provide the customers with information and the

message might be more trustworthy.

4.5.4 Environmental Cost Leadership If “being green” costs more, as some analysts’ state, a differentiation strategy may be the

only way for the company to pay off ecological investments. Orsato (2006) argues that

this is a suitable strategy when customers are willing to pay a price premium for the

environmental friendly product. Even though this approach may lead to success when

niche markets addressed, but it could be asked if this strategy can be used in industries

where companies compete on price?

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5. HONDA AND RENAULT

This chapter starts with a short background about what Honda and Renault are, with

information about their history and what kind of products that can be found within those

firms. Further their connection to green marketing. As examples on green marketing the

firms are having, different products will be discussed that are seen to be their steps into

greener marketing.

Both Honda and Renault are part of the automobile industry which is a big market with

approximately 806 million automobiles and trucks in 2007 on the roads around the world,

and the amount of automobiles in the world is growing fast (Plunkett Research Ltd,

2009).

5.1 Honda Honda is a Japanese vehicle manufacturer which was established in 1946 by Soichiro

Honda, and is one of the leading producers of automobiles in the world and the largest

manufacturer of motorcycles. During the 1950s Honda became one of the leading

motorcycle manufacturers in the world, the year 1967 they began produce automobiles.

Apart from automobiles Honda also makes engines for light business jets as well as

automobile fuel cells which are good for the environment, Honda even manufacturers

ASIMO which is humanoid robots. The revenues of the Honda company was the

financial year of 2008 over 105,384 million US dollars (Datamonitor, 2009).

Honda started as a local company with a global vision, but nowadays the company is a

global actor in the automobile industry with a local vision. The company have about

130 000 employees in over 40 countries around the world nevertheless Honda operates

primarily in the US and Japan, but their headquarters is situated in Tokyo, Japan. They

have four business divisions in the company which are the automobile business,

motorcycle business, financial services and power products and other businesses

(Datamonitor, 2009). However, this study has a focus on only the automobile part of the

Page 30: Have the automobile companies; Honda and Renault achieved to

Honda Company.

One of the most important foundations in the Honda Company is their philosophy that the

products and way of production shall have the lowest possible effect on the environment.

The official slogan of Honda is ‘The power of dreams’, but it has never been used to sell

the products since Mr Honda is believing that well built product will sell themselves

(World.honda.com, 2009).

The automobile division within the Honda company manufacturers’ passenger cars, multi

wagons, minivans, sports utility vehicle, sports coupe and mini vehicles; they also have

alternative fuel-power vehicles that they offer, such as natural gas, ethanol and fuel cell

vehicles. Shows they think about the environment and are already producing some

environmentally friendlier cars (Honda.co.uk, 2009).

Honda is according to their webpage keen on providing safety to everyone with a high

focus on innovative technology, which they believe is good for the customer relations and

a competitive strength. An aim for Honda is to be an environmental leader in the

automobile industry through environmental technology.

5.1.1 Environmentally friendly automobiles The mission of Honda according to their webpage is to maintain a global viewpoint and

to offer products of the highest quality at a reasonable price for customers worldwide, and

they want their products to minimize their environmental damage. When Honda

introduced a 4-stroke marine engine to the U.S. in 1973 it can be seen as their first step

into their environmental mission statement, which guides their approach to become to be

the environmental leader. The 4-stroke marine engine was seen to be a cleaner, quieter

and more fuel efficient engine than the former ones when it was introduced on the

market. With this engine it illustrates that Honda is on the path to minimize their

environmental damage and become a greener company.

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According to Hondas own webpage they are always thinking ahead, and state that they

have made hybrid automobiles accessible to everyone, while other manufacturers are still

at the prototype stage. They say it is because they have focused on developing low

emission vehicles in environmentally-friendly ways since they started producing cars.

Further what is said on the webpage is that Honda is applying the environmental thinking

to everything they do within the company (Honda.co.uk, 2009). Honda was the first

automobile manufacturer to offer a mass-production hybrid model for the U.S. and

Europe (Honda.com, 2009).

Honda’s major manufacturer plants worldwide already meet the international

environmental management standards ISO 14001, (Simon, 2009), which means they are

covering a host of environmental areas, such as waste disposal, water treatment and

energy use.

The company has a strong market position by being one of the greenest automobile

manufacturers since they have won different prices for it (US News, 2009). On the

greenercars.org (2009) webpage they listed the twelve greenest automobiles year 2009

and Honda had three vehicles on the list, they got number one, three and number nine.

One of their top ranked automobiles was the Honda Civic Hybrid which have been rated

on the “Advanced Technology Partial-Zero-Emission Vehicle” which is the most strict

emission standard achieved by a gasoline-powered vehicle in the U.S.

The year 2006 the Honda Civic Hybrid won the prestigious price ”World Car of the Year

Award ’for Greenest Car’” it was voted winner from a jury containing of 46 international

motor journalists, who voted the Honda Civic Hybrid the eco-car of the year. (Honda.se,

2009) Even the year 2004 Honda received a price for “Greenest Automaker Award” from

the Union of Concerned Scientists. The prices they have won for being environmentally

friendly has put Honda in a good position to be the most environmentally responsible

automaker (Industrial Engineer, 2005).

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For the future an opportunity for Honda could be the increasing demand for hybrid and

electric vehicles, which they offer to the market. The increased demand on more

environmentally friendly automobiles is linked with the increased demand on greener

products from customers (world.honda.com, 2009).

5.2 Renault Renault is one of Europe’s leading automobile manufacturers with its headquarters

situated in Boulogne-Billancourt in France. The Renault Company was founded by the

brothers Louis, Marcel and Fernand Renault, who called the company Renault Freres, the

Renault brothers. They produced their first automobile in 1899, and by the year 1905 the

firm were in mass production. In 1945 the French government nationalized the company

and named it, Renault. Later the French government reduced its shares in the company

and by the year 1981 they had 46% of the shares.

The Renault company develop, design, manufactures and market light passenger vehicles

around the world and they have industrial commercial presence in over 118 countries

(Datamonitor, 2009). The revenues of the Renault company was the financial year of

2007 over 55,764 million US dollars.

Renault is a company that also have shares in other vehicle companies, and since 1999

Renault and Nissan have an alliance together. A strategic management company, Renault-

Nissan was founded to define a common strategy and manage synergies. It was created in

the Netherlands under Dutch law and is jointly and equally owned by Nissan and Renault

(Renault.co.uk, 2009). Renault had in year 2002 44.4% stakes in Nissan and Nissan had

15% in Renault, which is the basis of the strategic alliance between them. The alliance

made Renault Nissan the fifth largest vehicle manufacturer in the world (Renault.com/fr,

2009). Renault has as well stakes and owns the Romanian automaker, automobile Danica.

Moreover Renault has 20% in the Swedish company Volvo AB. In addition, Renault also

had an acquisition with the Korean manufacturer, Samsung Motors which they now own.

Page 33: Have the automobile companies; Honda and Renault achieved to

5.2.1 Environmentally friendly automobiles Renault is asserting its leadership in vehicle life-cycle management and the design of

more ecological and economical vehicles. Renault has an objective of global “life cycle”

approach which is to reduce the environmental footprint of their vehicles throughout their

life from the manufacturing of the automobile until it gets scraped (renault.com, 2009).

In 2007 Renault introduced a new line of eco-friendly vehicles which they marked eco².

The Renault eco² is for automobiles that fulfill three global environmental criteria in the

production.

-The eco² vehicles are manufactured at ISO 14001-certified plants, which mean they are

covering a host of environmental areas, such as waste disposal, water treatment and

energy use. All of Renault’s manufacturer plants are meeting the ISO 14001 standards.

-The materials in the eco² cars contains of 95percent reusable materials and have a

minimum of 5percent recycled plastic that is used in all models.

-Further the eco² vehicles CO2 emissions do not exceed 140g/km. Even some of the

Renault eco² vehicles can run on bio-fuels (Renault.se, 2009).

For Renault taking action for the environment means looking ahead and in the future

Renault will apply stricter conditions to its eco2 label to be able to keep pace with the

major progress made by the future generations of vehicles. The Renault-Nissan Alliance

is at the same time aiming for zero emissions including, zero noise, zero pollutant

emissions, zero greenhouse gases. A way of achieving those aims is a new electric

automobile, the Z.E, that they are preparing to launch. The Z.E. stands for Zero Emission

and contains the vision of Renault of the electric vehicle as an efficient, user-friendly

zero-emission automobile (Renault.co.uk, 2009).

5.3 Comparison between Honda and Renault The increasing numbers of people, who cares about the environment, is an opportunity

both for Honda and Renault to achieve more consumers. It is an opportunity because if

consumers care about the environment when they are going to purchase a automobile,

Page 34: Have the automobile companies; Honda and Renault achieved to

then there is a great chance for Honda and Renault to target those customers and illustrate

what environmentally friendly vehicles they have to offer. In some countries such as in

Sweden there are even benefits for the people who buy the greener automobiles, which

might make people there more interested in environmentally friendly cars. The benefits

the green vehicle owners obtain by driving an environmentally friendly automobile can

be free parking possibilities in some areas (Grönabilister, 2009).

Looking at Industrial Engineer (2005), it was found the most fuel efficient and lowest

CO2 emitting new automobiles, with the search of small family vehicles it was found that

the Honda Civic Hybrid got a third place and a bit further down the list Renault Mégane

Hatchback /Sport Hatchback where found on place six. This shows that both vehicles are

in the top of the lowest CO2 emitting automobiles in this category.

It has been argued that the major future threat for both Honda and Renault is the

economical slowdown that the world market is facing today which affects the Honda and

Renault companies in the amount of automobiles that they are able to sell, when the

buying power of the consumers are shrinking. Honda and Renault are also each other’s

competitors since they both produce more environmentally friendly automobiles, and

offer the market their own and differentiated versions of environmentally friendly

automobiles (US News, 2009).

Page 35: Have the automobile companies; Honda and Renault achieved to

6. RESPONSES OF THE SURVEY

This study took place in both Birmingham and Worcester in England during late spring

2009. According to this research questionnaires were handed out, until 40 regarding

Honda and 40 regarding Renault was completely answered (the questionnaires can be

seen in appendix 1 and 2). The questionnaires were handed out to people that could be

found inside the firms and randomly to people on the street and trains. Different people

were asked randomly to get a spread of the respondents that answered the questionnaire.

The aim was to not only ask people outside the firms that may be highly interested in

Honda and Renault, but even people that may not be interested in those brands. There

were some questionnaires for both Honda and Renault that became answered by the same

respondents. We wanted to get answers on our questionnaires from a mix of both female

and male customers. The questionnaires where therefore handed out to highly equal

number f both men and females of different ages, in order to reach a high spread as

possible of the surveys. There were a total of 41 (or 51,25%) female respondents and 39 (or

48,75%) male respondents of the all together 80(100%) questionnaires that where filled out

and used for this study.

The age of the respondents might be important to consider because it could inform

regarding which age category that are the most dominated in the study and consider the

environmental friendliness. This could be seen to be one of the reasons for why this

question was asked. From having asked people that where randomly found on the street,

on trains and in the Honda and Renault firms, we are content with the wide spread of ages

that the respondents had since it is rather difficult to guess the age of a random person. It

could be argued that the broad spread of ages gives the study a more legitimate result

where the respondents are not only representing one specific age group. However this

study could consider that the most dominated age category was from 31-40 years. The

total number of respondents from the different age groups is presented in Table A.

Page 36: Have the automobile companies; Honda and Renault achieved to

Table A

Age-spread of the respondents

0

5

10

15

20

25

0-20 21-30 31-40 41-50 51-60 60 & aboveAge

Num

ber o

f peo

ple

aske

d

On the third question in the questionnaire “How often the respondents go to Honda and

Renault”, the most frequent answer where that the respondents never go to either Honda

or Renault. It was more than 60% of the respondents for each firm that answered that.

Two respondents for each firm answered that they go to the firms only when they are

going to purchase a car, and approximately 30% for each questionnaire of Honda and

Renault answered that they do not go often to either firm, no reasons where mentioned

why. This question was created in order to figure out it the customers are interested of

these companies, or if they are not. As it could be considered, most of the customers

where not interested of those brands.

According to the fourth question “If the respondents are aware of the environmental

contribution that the automobile firms are making”, the respondents for Honda answered

35% yes where for Renault it was 25%. This demonstrates that most of the respondents

were not aware of the environmental contribution the two firms are making. It can be

argued that this might be one of the most important questions in the surveys, as it inform

about the knowledge the customers have about the green marketing of those two firms.

Page 37: Have the automobile companies; Honda and Renault achieved to

Table B

Awareness of environmental contribution from Honda and Renault

14

26

10

30

0

5

10

15

20

25

30

35

YES NO

Num

ber o

f res

pond

ents

HondaRenault

However, of the respondents who knew about the environmental contribution (totally 24

respondents), the majority of 12 respondents had heard about it from mouth to mouth,

which was 5from Honda and 7 for Renault.

On the fifth question about which attributes the respondents associated with Honda or

Renault, it was found that many respondents did not know what they associate with those

two companies. On the category “other” the respondents could write down their own

thoughts about this. There were some respondents that argued that Renault is seen to be

associated with small French cars, and according to Honda people associated it with

Japanese high technology automobiles. Nevertheless, Table C illustrate that the customers

from Honda classified the environment more important then the customers from Renault.

Table C

Attributes associated with Honda and Renault

8

12

4

12

4

910

1

14

6

0

2

4

6

8

10

12

14

16

service value of money environment do not know other

Num

ber o

f res

pond

ents

HondaRenault

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Question six is about how environmental friendly the respondents think Honda and

Renault are. The result demonstrates that Honda is perceived to be more environmental

friendly then Renault, which could be seen in Table D. It could be suggested that the

answer of this question was influenced of question five, where the customers from Honda

associated the firm with environment more than customers from Renault.

Table D

How environmantally friendly is Honda and Renault

1

7

16

11

5

1

8

20

9

2

0

5

10

15

20

25

notenvironmental

friendly

no oppinion veryenvironmental

friendly

num

ber o

f res

pond

ents

HondaRenault

As it is seen from Table D, many of the respondents did not have any special opinion on

this question. It can be argued that they did not have the knowledge about the

environmentally friendlier products that Honda and Renault are having. This could then

be a consequence by the lack of green-marketing communication from those companies

to their customers. Further it could be that the customers are not interested in

environmental friendliness.

It can be discussed that the seventh question was concentrated on those respondents that

had ever been inside a Honda and/or Renault firm. The question was about how the

respondents perceive Honda or Renault compared to other automobile industries. That is

why a smaller number of respondents answered this question, 15 for Honda and 13 for

Renault. This question was created in order to achieve a result about what could be seen

to be the strength of the two brands, from the view of customers, which could be seen in

Table E.

Page 39: Have the automobile companies; Honda and Renault achieved to

Table E

How Honda and Renault is perceived compared to other automobile brands

012345678

Betteratmosphere

Better service Higher qualitycars

Moreenvironmentalresponsibility

Others

Num

ber o

f res

pond

ents

HondaRenault

Of the respondents answering “others”, there was two (of 3) respondents that argued that

Honda had high quality cars to a good price, which was the reason for why they preferred

Honda. Furthermore, there was one respondent from Honda that did not motivate why

answering “others”. The two respondents who answered “others” for Renault perceived

Renault to have better prices on their products and one who saw the convenience of

where the shop was situated as something they preferred.

According to the eight question concerning what the respondents find to be the most

important factor when they buy a car, the majority find the price to be a vital factor.

Secondly most important for all respondents for both Honda and Renault was safety. This

was a question created in order to find out how important the customers classified the

environmental friendliness when they buy an automobile. The answers are illustrated in

the Table F1 for Renault and F2 for Honda.

Table F1 Table F2

Renault

25,0%

55,0%

17,5%2,5%

Safety Price Quality Environmental Responsibility

Honda

22,5%

60,0%

15,0%2,5%

Safety Price Quality Environmental Responsibility

Page 40: Have the automobile companies; Honda and Renault achieved to

However, even if the customers do not see the environmental responsibility as the most

important factor when they buy a car, they still think that Honda and Renault should

contribute more to the environment. The ninth question is asking “if the respondents think

that Honda and Renault should contribute more to the environment”, which a majority

thinking that they should (See chapter 7). Table G is presenting the result of this question,

where only two respondents for each firm think that Honda and Renault do not need to

contribute more to the environment.

Table G

If Honda and Renault should contribute more to the environment

8

15

5

10

2

18

15

5

02

02468

101214161820

Agree strongly No oppinion Dissagree

Num

ber o

f res

pond

ents

HondaRenault

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7. DISCUSSION

According to the discussion, the purpose is to combine theory with the companies Honda

and Renault. The theories that have been seen to have the highest connection with those

two companies are the “Win Win hypothesis”, “The strategic approach”, “Orsato’s

Framework”, and sustainability. In addition it discusses the result of the questionnaires

according to the customers’ view of their green image.

7.1 The Win-Win hypothesis Honda and Renault are both large international automobile companies that are highly

socially responsible. Authors have different opinions when it comes to green marketing

and the different arguments whether it pays off for a firm to be “green” or not. A few

concerns that might affect companies like Honda and Renault, which state that they are

socially responsible, have been illustrated in chapter 4. It might be said that the “win-

win” hypothesis is the foundation of what became to be called as “green marketing”.

After careful analyses of Honda’s and Renault’s WebPages and in an attempt to

understand their missions and strategies it has been observed that these companies state

that they have a positive relationship with the environment. This positive view of the

relationship between business and the environment has been named the “win-win”

hypothesis. These two firms, Honda and Renault, are perusing a strategy that is of benefit

to the natural environment, as well as to the company itself. In order for a company to be

able to state that their strategy is delivering a “win-win” outcome, they should deliver

value to the customer, fulfill the firm’s financial objectives and protect the quality of the

world’s ecosystem. It could be viewed that Honda and Renault are both pursuing a “win-

win” strategy.

It can be argued that Honda has an innovative organizational culture. As Honda has been

arguing, with their major manufacturer plants worldwide, they are trying to develop

environmental safe products before their competitors. On their WebPage, Honda is

arguing that they are committed to provide safety to everyone with a high focus on

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innovative technology, which they argue is a competitive strength and good customer

relation. Their aim is to have an environmental leadership in the automobile industry

through their environmental technology. In 1973, Honda introduced the 4-stroke marine

engines to the U.S., which was seen to be a more clean, quiet and more fuel efficient

engine. This could be seen as the first step into their environmental mission statement,

which guides their approach to become environmental leader. The mission of Honda is to

maintain a global viewpoint and to dedicate to sell products of the highest quality at a

reasonable price for the worldwide satisfaction, with a minimizing of their environmental

damage. Honda was the first automobile manufacturer to offer a mass-production hybrid

model for the U.S. and European market. This is one example that the company is

committed to their “green” mission. It could be argued that Honda has established an

image and reputation of quality, which means they have created an identity that can

enhance the relationship of trust with its customers. It could be discussed that Honda

deliver value for money to their customers as the company state on their WebPage that

they have made Hybrid cars accessible to everyone, while other manufacturers are still at

the prototype stage Honda is able to offer their customer new high technological vehicles

that both deliver value for money and are environmentally friendly.

It could be viewed that Renault as well pursues the “win-win” hypothesis. The company

is trying to be a step ahead when they are taking action for the environment. Renault has

an objective of global “life cycle” approach which is to reduce the environmental

footprint of their vehicles which could mean that environmental policy is based in the

fundamentals of the business (renault.com, 2009).

It could be argued that both Honda and Renault have showed environmentally responsible

behavior which could lead to improved company image and benefit the corporate bottom

line through the development of innovative products. Waddell (2000), argues that

environmentally responsible behavior could benefit the corporate bottom line through the

development of innovative products and processes that reduce cost. As a result of

Honda’s and Renault’s environment involvement both of these companies have managed

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to produce innovative products like the eco friendly vehicles eco² (Renault), and the Civic

Hybrid car (Honda) that provide these companies with competitive advantages in the

marketplace. Honda’s mass production of their Hybrid cars might lead to a cost reduction

in their production as Porter (1990) is pointing out that a mass production may lead to

reduced productivity cost. It could be argued that Honda and Renault have demonstrated a

positive relationship between business and the environment, which means that they are

favoring both public benefits and corporate profits.

7.2 Greenwashing and Eco-labeling Greenwashing is a term that is being used to explain situations where companies are

using green advertising without environmental emphasis in their strategies. It has been

argued that people are skeptical towards companies who claim that they are green.

Consumers can not trust the content of some advertisements as some firms claim they are

“green” without showing any responsibility toward environment. These sorts of issues

have leaded to that consumers might not trust companies who claim that they are

environmentally responsible. Something a company can do in order to gain customer trust

is to use eco-labeling. It might be argued that Honda and Renault do not only use green

marketing to promote corporate images but that they really have integrated the company’s

whole structure in order to practice green marketing policies. It can be argued that both of

these companies are trying to communicate their strategy and the “green” advantages of

their strategy to the consumers. Peattie and Charter (2003) states that it is vital for

companies to make sure that they inform their customers on how they are incorporating

environmental values into their strategies.

It could be viewed that both Honda and Renault are constantly trying to inform and

communicate with their customers, and this study has not found any evidence of incorrect

or misleading information provided by these firms. Apart from demonstrating their

environmental involvement on their websites, both of these companies are involved in

projects and events all around the world that are working towards sustainability. An

example is Renault’s partnership with local companies in Croatia where they are pursuing

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an environmental program which consists of getting rid off car-wrecks. South Korea,

Turkey and Spain are some other countries where Renault is showing their commitment

towards both the environment and the people (Renault, 2009). These examples are

demonstrating that these companies are truly committed and want to make a change by

working towards sustainability, and are involved in projects that will favor both the

environment and the people.

Some firms can claim that they are “green” without actually incorporating environmental

concerns into their strategies. It has been argued that eco-labeling can provide credibility.

Honda and Renault have both products that are eco-labeled, for example the Honda Civic

Hybrid and Renault’s Eco². Both companies are highly ranged at the list of green cars and

have won several prices for their environmental commitment, for example, in 2006 the

Honda Civic Hybrid won the prestigious price”World Car of the Year Award ’for

Greenest Car’(Honda.se, 2009). Some examples have been provided that are

demonstrating that Honda and Renault are truly incorporating environmental concerns

into their strategies. It can be argued that their eco-labeled products, the awards, and the

environmental projects worldwide are strong evidence that these companies really have

incorporated “green” thinking into their strategies and missions and are working towards

creating a better world. Their advertisements can be trusted as their products are eco-

labeled and they would not win prices if they were in any way trying to deliver an

incorrect message through their advisement.

7.3 Strategic approach After analyzing Honda’s and Renault’s WebPages it has been discovered that both

companies are trying to promote the “green” aspects of their product range. Terms like

“quality” and “environmental friendliness” are used to define both of these companies’

offerings and the mission is to become the environmental leader. With products such as

Renault’s eco² cars and Honda’s Civic Hybrid these firms are appealing to the

environmentally aware customers. The ecological terms run throughout the companies

WebsPages. Featuring a section dedicated to the “environment”, as well as phrases on

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their WebPages like “Honda's environmental conservation initiatives for a sustainable

Earth” and Renault’s “Eco² Way”, both of these companies appear to be differentiating

themselves on this basis.

Relating this to “Orsato’s framework” (2006) Honda and Renault appear to be pursuing

an “eco-branding” strategy, using the environmental attributes of their products as a

source of differentiation. This notion of competitive focus in relation to competitive

advantage has become an interesting area to explore.

Figure 2: ‘Eco-branding’ strategy

(Source: Adapted from Orsato 2006)

As this seems to be the main feature from which these companies compete, a

questionnaire was created in order to find out how customers perceive these two firms,

and how much they are being associated with the environment. The questionnaire made it

possible to analyze how people perceive the companies positioning.

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As the interviews with the marketing departments of Honda and Renault were not

possible to perform; the WebPages were used in order to understand the marketing

strategies approach by these firms. It could be viewed that these firms have an aim to

enhance environmental friendliness and constantly create new innovative technology in

order to achieve competitive advantages. This means that they have a high focus on

differentiation. Honda for example has an own environmental automobile that are based

on Hybrid technology, which Renault is missing. However, Renault is a French company

and Honda from Japan, and it could be assumed that Japan are technologically more far

then France. According to the history, Japan has been more technologically innovative

then the European companies and the Hybrid automobile might be an example of that.

Nevertheless, initially both companies have a high environmental focus and the cars can

be recoverable at the end of their lifecycle, which means that they can be recyclable for

other use or as a source for energy.

The depth of environmental information accessible through the companies WebPages

suggests that Honda’s and Renault’s strategies of differentiation are about more than just

generating a positive public image. As demonstrated by Kotler (2008), if companies are

to adopt an eco-branding strategy in the quest for competitive advantage, access to

reliable information about the product’s environmental performance is an important

prerequisite. Honda has created the concept of “The Power of Dreams” to envision and

develop the vehicles of the future. They are using this philosophy to demonstrate different

energy saving solutions (Honda, 2009). Detailing their work and future environmental

plans on their website, the company appears committed to providing credible information

about its environmental performance. This also represents an effort to build relationships

with customers. In partnership with local companies in Croatia, Renault is pursuing an

environmental program which consists of getting rid of car-wrecks and every year the

company is participating for the World Environment Day (Renault, 2009). This are some

examples of Renault’s attempts to build on the image of trust associated with the Renault

brand.

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7.4 Sustainability As evident from the analysis Honda and Renault are both innovative organizations.

Despite their competences in new product development a competitive advantage based on

environmental products can be quickly eroded. The whole automobile industry is moving

towards green technology, and other firms might erode this competitive advantage.

Despite this, it could be argued that Honda and Renault always will be known as “first

movers”. Being at the forefront of technological development, these two companies have

built an image and reputation based on creative thinking and innovation. Whilst new

products can be easily replicated, this customer-based marketing asset is enduring and

will be much harder to imitate.

7.5 Analysis of the questionnaires The result of the questionnaires illustrated that more than half of the participants (70%)

were not aware of the environmental contribution that Renault is making (see table B,

page 36). According to the consumers that were inside or outside the Honda stores at the

time of the investigation, it showed that approximately 60% were not informed about the

company’s involvement in the environmental issues (see table B, page 36).

When analyzing the questionnaires of Honda, it showed that a higher number of

consumers were aware of the firms contribution to the environment compared to Renault

(See table B, page 36). It could therefore be argued that Honda has managed to

communicate their commitment and mission to the customers more effectively than

Renault. A reason for this could be the different technological capabilities and knowledge

based engineers, which Honda has been arguing is their large strength. The questionnaires

showed that the most recognizable eco-issue that people did remember was the Hybrid

car created by Honda. It could therefore be suggested that Honda has better

communication system with the media and other communication channels then Renault.

However, both firms are relying on their WebPagese as a source of information,

promoting the attributed of the eco-branding strategy. Nevertheless, it could be

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recommended for both Honda and Renault to alter their marketing strategy in order to

make their brand more visible and to create their mission and environmental efforts more

visible to the consumers.

7.5.1 Renault Even though Renault wants to position itself as the most environmental and economical

brand compared to many other multinational automobile corporations, the questionnaires

demonstrated that 38 of the respondents agreed that Renault should contribute more to the

environment (see table G, page 39). The participants were asked to elaborate what

Renault could improve to be more environmental friendly, which could be summed up

into five most common:

- Give the customers a financial advantage when a customer buys a green automobile.

- Better marketing campaign

- Have more eco – friendly advertisement in public media

- Less fuel emissions in the environment

- Have recycling of the automobile parts

However, some respondents suggested that Renault could improve their brand image,

which could lead to competitive advantage. According to the result of the questionnaires,

many people are not aware of Renault’s contribution to the environment, and it might be

viewed that the firm could improve their marketing campaigns in order to reach out to

more people.

It has been showed that six out of thirteen respondents that have ever been to a Renault

firm think that the service there could improve (see table E, page 38). The respondents

found the firms as attractive places, but that the employers could improve their behavior.

Furthermore, the customers pointed out that the most attractive attribute from Renault is

their automobile design, and safety was the second most common answer. The customers

have in addition argued that Renault is producing automobiles to a good price and that

one of their strength is to combine price with quality (see table F, page 38). It can

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therefore be discussed that the firm is seen to be an attractive car manufacturer for the

customers, as the price and quality is seen to be more important factors then

environmental friendliness. However, Renault may need to improve their green marketing

strategic planning in order to reach those goals. It could be argued that the customers

think that Renault has not achieved to become a symbol for the green automobile

industries.

7.5.2 Honda Honda is stating on their WebPage that their Hybrid cars are accessible to all, while other

automobile companies are still working on the prototype stage. Honda has a high focus on

the hybrid technology, which is their most famous environmental feature. Their aim is to

reduce environmental impact during the production, but also after the purchase of the car.

The result of the questionnaires showed that 26 of the respondents agrees that Honda

should improve their contribution to the environment (see table G, page 39). The five

most common suggestions how Honda could improve their environmental friendless

could be sum up to:

- Reduce the CO2 discharge

- Recycle the automobile

- Corporate with some green companies in the technological world

- Create good “green” offers to the customers

-Improve the Hybrid technology

On the last question in the questionnaire (see Appendix 2) where the respondents could

write for themselves on what Honda could do to improve its environmental friendliness,

almost 50% of the respondents mentioned that Honda could improve its environmental

friendliness by reducing the CO2 emissions. On their WebPage, this has been argued to

be one of their main goals in order to become perceived as a green company. In addition,

the questionnaires showed that the most associated thing with Honda was “value for

money”. The participants argued that Honda is delivering great innovative technology to

good economical standards, which is a reason why these people prefer Honda. Further,

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respondents wrote that they thought Honda should improve the Hybrid technology and

keep on promoting it to improve their environmental friendliness.

Environmental friendliness and good value are two of the main attributed that consumers

seems to associate with Honda compared to other automobile industries. The respondents

were asked to rank which attribute that are most important when they are buying an

automobile. For Honda the environmental friendliness was the third most ranked together

with “others” where the answerers “do not know” had most respondents together with

“value for money” (see table C, page 36). Montoro-Rios et. al (2008) are arguing that it is

an advantage to have environmental information in marketing strategies. According to the

questionnaires, the environmental responsibility is seen to be less important then some

authors claim it to be. Price, safety and quality is seen to be more important than the

environmental responsibility.

After the questionnaire were analyzed, it might be pointed out that the customers are not

aware of the environmental contribution that is being made by these companies. It could

be that Honda and Renault have lacks in their communication systems which have lead to

that the customers have not been informed about Honda’s and Renault’s attempts to

become perceived as eco-brands. An example could be that both companies are using the

recycle of the products that are used to build up an automobile, which means that

different parts can be reused. It could therefore be argued that one of the main problems

in the automobile industry, based on the analysis of Honda and Renault, is the function of

the communication channels that should inform the customers about the firms and their

missions.

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8. CONCLUSIONS

New forms of corporate eco-communications appear to have emerged during the last

years. Companies have started to respond to controversies caused by society’s changing

expectations. Based on this fact it could be argued that in order for a company to succeed,

it’s important to take into consideration the mistakes a firm have done in the past and

work towards predicting the future changes in the society. It is being discussed in the

literature whether the “green image” will create benefits or increase costs for the firm.

Some authors suggest that the whole idea about “green marketing” is associated with

increased costs and that companies adapt so called “green advertising” without

environmental emphasis in their strategies. However, other authors argue that “green

marketing” creates sustainability and if companies fail to incorporate eco-performance

into their every-day business, they will not survive in the industry.

Honda and Renault are both large multinational automobile corporations that are trying to

differentiate themselves by being more “environmental friendly” then other companies. It

could be argued that environmental friendliness plays an important part in the mission of

both companies, where both safety and economy is taken into consideration. It could be

argued that the current global situation, where people have higher emphasis on the

environment, force those firms to base their strategy on the “green marketing” in order to

be able to compete effectively in the market.

Patterns of sustainable development will not emerge without systematic changes in the

underlying ethos of societal institutions, which in turn required changes in values and

attitudes of individuals. It could be argued that Honda and Renault have applied the

emerging concept of sustainable development. Both firms have illustrated that

“environmental responsibility” is a part of their mission and day-to-day operations, and

would like to motivate their customers and the whole value chain to do the same. Peattie

and Charter (2003), are supporting the argument that a company’s structure should be

integrated in order to practice in green marketing policies.

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Looking at Honda and Renault, it could be discussed whether or not these companies are

forced to change their strategies. Is the emerging demand for eco-products forcing them

to change their ways? However, it could be considered that both firms have demonstrated

that they are making fundamental changes in their strategies to become more eco-friendly

and communicate more with the consumers.

In addition to the research that was created, in order to find out whether these two

companies have managed to communicate their purpose to the customers, it has been

discovered that a high number of respondents were weakly informed about the

environmental contribution that is being made by these two firms. Some authors have

discussed that customers have started to pay more attention to the environment, and that

customers are prepared to pay a higher price in order to buy eco-products. However the

result of this research study shows that many respondents prefer attributes such as lower

prices, quality and safety before “environmental friendliness”. Gingsberg and Bloom

(2007) are supporting this theory. They argue in their journal that the environmental

friendliness is still not the most important issue for most people.

Comparing the marketing strategies of Honda and Renault, to Orsato’s framework about

different approaches that companies can use to differentiate themselves, it could be

argued that both Honda and Renault are pursuing “eco-branding” strategy. Both

companies are striving to incorporate eco-performance into their strategies in order to

become perceived as environmental friendly brands with high innovative technology.

However, Honda and Renault might need to improve their communication channels in

order to become more visible for customers. The research has in addition showed that the

dominated part of the participants believed that these two companies could be more

environmental friendly. A recommendation Honda and Renault could consider that might

lead to improved consumer awareness of what the firms are doing to be environmentally

friendly, are to improve their communication with the consumers. Without a good

communication between the firms and their consumers the environmental message will

not succeed to be delivered.

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9. FURTHER RESEARCH

There are numerous different interesting ideas in the green marketing area that could be

used for future research. We have chosen to mention five of them

-The idea and question that this study use could be asked to other companies in different

categories, such as supermarkets, motorcycle companies and the clothing business, how

they achieved to deliver their environmental message to their customers. The

understanding for customers of the green message might be one of the most important in

the business market.

-It could further be interesting to study different generations’ attitudes to the green

marketing strategy. There is a thought that the older generation is one of the most

important groups to attract in the business market, and that they are willing to spend more

money on green products.

-Another suggestion for furtherer research could be to take the current global crisis into

account, it might be interesting to study how different automobile companies have been

affected by the crisis and if the green massage has become less important or not.

-The green marketing is seen to be a discussed subject in today’s society. It might

therefore be interesting to look at other companies' green marketing strategies in the

automobile industry. This could then be analyzed in order to see how trustful these

companies are.

-Another idea is to compare the most popular “environmental” car in a company and the

most popular “normal” car, analyze them in order to compare the sale, marketing

communication and motivation.

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10. REFERENCES 10.1 Books Baker, M.J. (2003) The Marketing Book 5th Ed. In Peattie, K.& Charter, M (Ed.), Green Marketing (pp.726-755) Butterworth-Heinemann Brown et. al (1996), Found in :Goulding, C. Maclaran, P. Saren, M. Critical Marketing: defining the field (2007), Butterworth-Heinemann Bryman, A. and Bell, E. (2003) Business research Methods 1 Ed. Oxford University Press Cassia, L. Fattore, M. and Paleari, S. (2006) Entrepreneurial Strategy: Emerging Businesses in Declining Businesses Edward Elgar Publishing Charter, M. and Polonsky, M. (1999) Greener Marketing – A global perspective on greening marketing practice Second Edition, Greenleaf Publishing

Cheney, G. May,S. and Roper, J. (2007) The debate over corporate social responsibility Oxford University Press US. Copyright Cox, A. (2004) Win-Win? The Paradox of Value and Interests in Business Relationships Earlsgate Press Denscombe, M. (2007) The Good Research Guide for small – scale social research projects 3rdEd, Mc Graw Hill

Fisher, C and Lovell, A. (2006) Business ethics and values; Individual, Corporate and International Perspectives, Second edition. Harlow, Pearson Education Ltd

Jacobsen, D. I. (2002) Vad, hur och varför? Studentlitteratur Kotler, P. (2008) Principles of Marketing Harlow: Prentic Hall Lankonski, L. (2006) Environmental and economic performance: The basic links In S. Schaltegger, and M. Wagner (Eds.), Managing the business case for sustainability (pp. 32-46). Sheffield: Greenleaf Publishing. Leopold, A. (1949) A Sand Country almanac and sketches here and there London: Oxford University Press

Matto and Singh (1997) Found in: Teisl, M. Labelling strategies in environmental policy (2007), Ashgate

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May, S. Cheney, G and Roper, J. (2007) The Debate over Corporate Social Responsibility Oxford University Press Ottman, J.A. (1993) Green marketing: Challenges and opportunities for the new marketing age Lincolnwood, IL: NTC Business Books. Porter, M. (1985) Competitive Advantage: Creating and Sustaining Superior Performance London Free Press Porter, M. (1990) The Competitive Advantage of Nations The MacMillan Press, London.

Reinhardt, F.L. (1999). Down to earth: Applying business principles to environmental management Cambridge: Harvard Business School Saunders, M. Lewis, P. and Thornhill, A. (2007) Research Methods for Business Students 4th Ed. Edingburg: Pearson Education Limited

Shrivastava, (1994) Found in: Baker, M. The Marketing Book 5th Edition (2003) Butterworth – Heinemann. Copyright

Silverman, D. (2002) Interpreting Qualitativa Data – Methods for analyzing talk, text and interaction Second Edition, London: SAGE Publications Ltd Waddell, S. (2000) Complementary resources: The win-win rationale for partnership with NGOs In J. Bendell (Ed.), Terms for endearment: Business, NGOs and sustainable development (pp. 193-206). Sheffield, UK: Greenleaf

Welford, R. (1994) Corporate Environmental Management: Systems and Strategies, Earthscan

10.2 Journals Ahonen, V. Hansen, E. Juslin, H. and Kärnä, J. (2001) Green Advertising, Greenwash or a True Reflection of Marketing Strategies? Greener Management International, p59-69 Ambec, S. and Lanoie. (2008) Does It Pay to Be Green? A Systematic Overview Academy of Management Perspectives, p45-62

Basu, A. Chau, N. and Grote, U. (2003) Eco-Labeling and Stages of Development Review of Development Economics, p228-247 Carlson, L. Grove, S. J. and Kangun, N. (1993) A Content Analysis of Environmental Advertising Claims: A Matrix Method Approach, Journal of Advertising, p27-39

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Elkington, J. (1994) Toward the Sustainable Corporation: Win-Win-Win Business Strategies for Sustainable Development, California management review, p90-100 Friedman, M. (1970) The Social Responsibility of Business Is to Increase Its Profits -Corporate Ethics and Corporate Governance The New York Times Magazine, September 1970

Ginsberg, J. and Bloom, P.N. (2004) Choosing The Right Green Marketing Strategy Mit Sloan Management Review, 79-86 Livesey, S.M. (1999) McDonalds and the Environmental Defense Fund: A case study of a green alliance Journal of Business Communication, p5-39 Montoro-Rios, F. Luque-Martinez, T. and Rodrguez-Molina, M-A. (2008) How Green Should You Be: Can Environmental Associations Enhance Brand Performance? Journal of advertising research, p547-563 Nash and Ehrenfeld (1997) Codes of Environmental Practice: Assessing Their Potential as a Tool for change Annual Review Energy Environment, p487-535 Newell, S.J. Goldsmith, R. and Banzhaf (1998) The effect of misleading environmental claims on consumer perceptions of advertisements Journal of Marketing Theory and Practice, p48-60 Orsato, R.J. (2006) Competitive Environmental Strategies: When Does It Pay To Be Green? California Management Review, p127-148 Polonsky, M. J. (1994) Environmental Consciousness and the Business Curricula: Some Thoughts Journal of Teaching in International Business, Vol 5, Issue 1,

Porter, M. and Kramer, R. M. (2006) Strategy and Society -The link between competitive advantage and corporate social responsibility. Harvard Business Review, 2006 Porter, M. and Van der Linde, C. (1995) Toward a new conception of the environment- competitiveness relationship. Journal of Economic Perspective, p97-118 Saha, M. and Darton, G. (2005) Green Companies or Green Con-panies: Are Companies Really Green, or Are They Pretending to Be? Business and Society Review, p117-157 Sapsford, R. (1999) Survey research: Sage Publications Scammon (1993) Found in Vladeck, D.C. (2000) Consumer Behaviour -Truth and Consequences, Journal of Public Policy & Marketing

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Shrum, L.J. McCarty, J.A. and Lowrey, T. (1995) Buyer characteristics of the green consumers and their implications for advertising strategy Journal of Advertising, p71-82 Swallow, S and Sedjo, R.(2000) Eco-Labeling Consequences in General Equilibrium: A Graphical Assessment. Land Economies, p28-36 Varadajan, P.R. (1992) Marketing’s Contribution to Strategy: The View From a Different Looking Glass, Journal of the Academy of Marketing Science, p323-343 Walley, N. and Whitehead, B. (1994) It is not easy being green. Harvard business review, p46-52 10.3 Electronic Resources European Commission Available from: http://ec.europa.eu Accessed: 1 September 2009 Greencars.org Available from: http://www.greenercars.org (2009) Accessed: 8 June 2009 Gröna bilister Available from: http://www.gronabilister.se Accessed: 5 June 2009 Honda Available from: www.honda.co.uk and www.honda.se and http://world.honda.com Accessed: 2 April, 8 June, and 23 July 2009 Industrial Engineer: IE; (2005) Vol. 37 Issue 3, p16-16, Available from: Business Source Premier University of Worcester http://web.ebscohost.com Accessed: 27 march 2009 ISO International Organisation for Standardisation, webpage Available from: http://www.iso.org Accessed: 31 August 2009 Jack, Simon (2009) A Sure Thing Motor Transport p14-15 Available from: Business Source Premier University of Worcester http://web.ebscohost.com Accessed: 25 April 2009

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Plunkett Research, Ltd. (2009) Automobiles and Trucks Overview (Online) Available from: http://www.plunkettresearch.com Accessed: 2 April 2009 Renault Available from: www.renault.co.uk and www.renault.com/fr and www.renault.se Accessed: 2 April, 8 June, and 23 July 2009 US News Available from: http://usnews.rankingsandreviews.com Accessed: 8 June 2009

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APPENDIX 1

1. Sex: Female Male 2. Age: 0-20 21 – 30 31 – 40 41 – 50 51 -60 60 & Above 3. How often do you go to Renault? ………………………………………………………….

4. Are you aware of the environmental contribution that Renault is making?

Yes No If yes how did you find out about it? Renault’s homepage Commercials/newspapers

Mouth to Mouth Others: ………………………………………. ……………………………………………………………………………………………

(Please specify)

5. Which of the following attributes do you associate with Renault? Service Value of money Environment Do not know Others: …………………………………………………………………………

(Please specify) 6. How environmental friendly do you think Renault is? Not environmental friendly Very environmental friendly Why? ……………………………………………………………………………………. 7. How do you perceive Renault compared to other automobile shops? Better atmosphere Better service Higher quality cars More environmental responsibility Others: …………………………………………………………………………. (Please specify) 8. From 1-4, State which of the following is most important when you buy a car, with 1 as the most important and 4 as the least important. Safety Price Quality Environmental responsibility 9. Do you think Renault should contribute more to the environment? Agree strongly Disagree

If Yes, what could Renault do to improve its environmental friendliness? ……………………………………………………………………………………………

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APPENDIX 2 1. Sex: Female Male 2. Age: 0-20 21 – 30 31 – 40 41 – 50 51 -60 60 & Above 3. How often do you go to Honda? …………………………………………………………

4. Are you aware of the environmental contribution that Honda is making? Yes No

If yes how did you find out about it? Honda’s homepage Commercials/newspapers Mouth to Mouth Others: ……………………………………. ……………………………………………………………………………………………… (Please specify)

5. Which of the following attributes do you associate with Honda?

Service Value of money Environment Do not know Others: ……………………………………………………………………………..

(Please specify) 6. How environmental friendly do you think Honda is?

Not environmental friendly Very environmental friendly Why? …………………………………………………………………………………….. 7. How do you perceive Honda compared to other automobiles industries?

Better atmosphere Better service Higher quality products More environmental responsibility Others: …………………………………………………………………………

(Please specify) 8. From 1-4, State which of the following is most important when you buy a car, with 1 as the most important and 4 as the least important. Safety Price Quality Environmental responsibility 9. Do you think Honda should contribute more to the environment? Agree strongly Disagree

If Yes, what could Honda do to improve its environmental friendliness? …………………………………………………………………………………………