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ABSTRACT
As conventional energy resources dry up and pollution increases, utility companies and policy makers seek to develop new energy programs that are more environmentally sound and replenishable. Renewable energy has emerged as an alternative energy resource, but its marketing has not been successful despite widespread consumer concern about the environment. Using the theory of reasoned action as a theoretical framework, the current research investigates the relationship of three variables (concern with the environment, knowledge about renewable energy, and beliefs about salient consequences of using renewable energy) with consumer attitude toward paying a premium for renewable energy. As predicted by the theory of reasoned action, a positive relationship between beliefs about salient consequences and attitudes toward paying more for renewable energy was found. Overall concern levels were quite high for consumers in the sample, whereas knowledge levels were relatively low. Interestingly, it was found that consumer concern failed to translate into heightened knowledge about renewable energy. The study suggests that the consumer's environmental concern and beliefs about renewable energy to date are more emotionally charged than fact- or knowledge-based. Implications for marketing strategies and consumer education are provided. (C) 2000 John Wiley & Sons, Inc.
The challenge of global sustainability could be the biggest commercial opportunity in recent history (Stuart Hart, quoted in Arnst, Reed, McWilliams, & Weimer, 1997).
Over the last three decades there has been a growing concern among consumers about whether the earth's resources will continue to sustain the standard of living that is enjoyed by most Americans (Carlson, Grove, Kangun, & Polonsky, 1996; Kilbourne, McDonagh, & Prothero, 1997; Zinkhan & Carlson, 1997). One of the major sources of consumer concern is related to energy consumption. Presently, worldwide power generation is responsible for more pollution than any other single activity (Dunn, 1997). At the same time, the demand for fossil fuel continues to grow at an alarming rate (Brown, Kane, & Roodman, 1994).
The consumption of energy represents an alarming environmental issue to consumers, but it also offers marketers an economic opportunity. As Farhar (1996) reports, Americans are beginning to recognize the link between energy use and environmental degradation. A growing segment of consumers either reward or intend to reward organizations that address environmental concerns in their business and marketing practices,...