Not only are consumers increasingly on the look-out for greener products, but they are also more forgiving about these products’ failings than they would be for products that lack a stated sustainability benefit, according to research from UCD Michael Smurfit Graduate Business School. Over the past five years, there has been a 71 per cent rise in the search for sustainable goods globally, according to the Economist Intelligence Unit. As such, these products can now be found in almost any area, from plant- based laundry detergents to fashion items made out of biomaterials. Smurfit School assistant marketing professor Anshu Suri, together with researchers at HEC Montréal and Ted Rogers School of management, wanted to know what happened when these products didn’t live up to expectations. To do this, they conducted eight controlled experiments and empirical field analysis to assess consumers’ willingness to write negative reviews and their tendency to ask for refunds instead of replacements when things go wrong. They found that consumers react less negatively when green products fail than they do when a conventional one comes up short. “Consumers don’t overlook shortcomings of green products, but they are more forgiving, perceiving their restraint from negative feedback as a form of support for the environment,” explained Suri. “They believe they are being more pro-social, as negative reaction may harm the success of a product that benefits the environment and society.” The study, published in the Journal of the Academy of Marketing Science , offers clear lessons for manufacturers of both environmentally friendly and conventional products. However, it’s also important that green product suppliers do not take advantage of this behaviour. To be genuinely kinder towards the planet, the over-consumption of materials caused by the need to replace items that fail or have a short lifecycle must be quelled. EB HOW CONSUMERS MAKE MORE ALLOWANCES FOR PRODUCTS WITH PURPOSE SCHOOL : UCD Michael Smurfit Graduate Business School University College Dublin COUNTRY : Ireland
Singapore Management University (SMU) – home to the Lee Kong Chian School of Business – has launched the SMU Urban Institute (UI), a new research institute dedicated to multi and interdisciplinary research on cities in Asia. SMU UI will look beyond the development of infrastructure to consider the socio-cultural aspects of urbanisation and the balance between urban growth and sustainability. The institute was inaugurated by Sim Ann, senior minister of state for foreign affairs and national development, who remarked: “In the early days of our independence, Singapore experienced acute urban challenges, including overcrowding, slums, traffic congestion, environmental pollution, floods and water shortages. These challenges remain pressing in many cities around the world even today. “SMU’s Urban Institute will play an important role in promoting the exchange of experience and research between Singapore and our neighbours in Asia and in helping policymakers and practitioners create better living environments for all.” Helmed by SMU associate professor of geography Orlando Woods, SMU UI is the first research institute in Southeast Asia that aims to speak to the plethora of challenges facing the region’s cities, from the heart of urban Asia. It seeks to address the sensory, socio-cultural and economic realities of living in a city, the inequalities arising from wealth accumulation and how infrastructure, in terms of buildings, policy and regulation, might limit or enable the growth of urban centres. Commenting on the launch, SMU president Lily Kong said: “The institute’s establishment as a university-level entity signals our strong intention to extend beyond the confines of single disciplines and to forge collaborative interdisciplinary research.” She continued: “Our investment in establishing UI cannot be overstated; it is about undertaking deep, rigorous research. But more than that, it is about laying the groundwork for liveable, resilient and inclusive cities in Asia. As cities grow at an unprecedented pace, the transformative potential of this new institution becomes even more pronounced.” CD NEW INSTITUTE TO FOCUS ON THE STUDY OF ASIAN CITIES SCHOOL : Lee Kong Chian School of Business Singapore Management University COUNTRY : Singapore
10 | Ambition | MARCH/APRIL 2024
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