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Identifying the market segments for eco-labelled wood

Author

Listed:
  • Knut Veisten
  • Elisabeth Gill
  • Birger Solberg

Abstract

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

Suggested Citation

  • Knut Veisten & Elisabeth Gill & Birger Solberg, 2008. "Identifying the market segments for eco-labelled wood," International Journal of Green Economics, Inderscience Enterprises Ltd, vol. 2(2), pages 190-209.
  • Handle: RePEc:ids:ijgrec:v:2:y:2008:i:2:p:190-209
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