Businesses who seriously consider environmental issues may create a
sustainable competitive advantage. For instance, the 3 Ps program (polluting
prevention pays) of 3M, DuPont Corporation’s commitment to 70 percent
waste reduction by the year 2000, and McDonald Corporation’s efforts to
eliminate polystyrene clamshell packaging have been commended as
progressive and exemplary steps in corporate environmental practices
(Menon et al., 1999). Another relevant example comes from BMW, the
German auto maker, who designed (and marketed) its two-seater ZI in such a
way that it can be disassembled and recycled. Moreover, the car has doors,
bumpers, and panels made from recyclable thermoplastic. Based on this
study, an important segment of customers would be willing to pay more for
such environmentally friendly products.
Surprisingly, the behaviors ``recycling’’ and ``buying environmentally
friendly products’’ were not good predictors of consumers’ willingness to
pay more for green products. As stated by Picket et al. (1993), marketers and
policy-makers must exercise caution when attempting to extend
environmental initiatives from one ecologically conscious behavior to
another. For example, those consumers who recycle plastic may not be the
same consumers who would pay more for low-phosphate detergent.