ECO-MARKETING AND ECO-LABELLING: DOES IT ENSURE ...

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D.Grundey 175 ISSN 1648 - 4460 5.2.2 Perception of ecological products 5? Researching Customer Loyalty in Lithuania During the 2007 National survey in Lithuania, the respondents demonstrated knowledge and awareness about the category of products, labelled as ecological (71%). Most of the respondents outline that „an ecological product is the product, during the process of its growth and processing no artificial chemicals and fertilisers were used; ecological products are healthier than traditional ones; the ecological farming method doe snot cause any harm to the environment" (Lithuanian National Survey, 2007). As the survey findings demonstrate, the respondents associate ecological products with a) fruits (74%) and b) vegetables (96%), first. An unexpected resuh was that other agricultural products, such as milk and dairy products, meat and its products, bread and its varieties are not automatically perceived as ecological, even though are available on the market with clear eco-labelling. More than half of the respondents (67%) indicated that they are aware of the ecological labelling practice in the country and some of them (26%) are specifically looking for such eco-labelled products in the shopping centre. Amongst the surveyed people, only 6% (mainly in Vilnius and Kaunas cifies) are permanent eco-product buyers. Vilnius-dwellers specifically indicated that they have an opportunity of buying such eco-certified products in the Old Town market, which is becoming very popular not only during specific festivals and cultural heritage events, but on a daily basis. 5.2.3 Shopping behaviour for ecological products When developing the questionnaire, the most important issue was, whether ecoproducts are accessible to the broad public to have their choice and saying. In effect, the majority of the Lithuanian respondents prefer a shopping centre or a supermarket for ecoproduct purchasing (45%). Other shopping options were as follows {Figure liy. a) open market (21 %); b) own produce (e.g. Lithuanians are still fond of having a small patch of garden either next to their private house or the so-called collective garden plot, where they culfivate some crops over the season) (12%); c) trade fairs (e.g. autumn and spring fairs, organised broadly in Vilnius and Kaunas) (11%); d) speciality shops (e.g., ecological food shops) (6%); c) elsewhere (e.g. travelling to countryside to purchase eco-products first hand or gather wild berries and mushrooms in the woods, as it is still quite popular) (5%). open markcl trade fairs speciality shops supcnnatkct/ clscwlicrc own produce shopping centre Figure II. ScRmcntalion of respondents In Lithuania by the point of purchase of eco-products (%), 2007 Il has been identified that 18% of the respondents arc cco-brand loyal - they would seek Ihc same producer (e.g. ecological honey, cco-brcad or cco-potalocs), due to the acceptable taste, texture, quality and price ratio. 1M-\N.SI-0\{M.'\T10NS /,V bV.SlNllS.S 6- nC.OXOMICS, \'()1. 8, No 1 (16), 2009
D.Grundey 176 ISSN 1648-4460 Researching Customer Loyalty in Lithuania When asked to specify the groups of eco-products they at least purchased once in the past 6 months, the respondents in Lithuania produced such a spectrum of replies: a) eco-vegetables (86%); b) c) d) e) f) eco- fmits (77%); eco-honey (62%); eco-berries (45%); eco-bread and its varieties (33%); eco subproducts and proccessed foods (19%). 5.2.4 Factors effecting consumers' loyalty towards ecological products The main factor which motivates Lithuanians to purchase eco-products is a deep concem about their health status. On the other hand, the respondents expressed their doubts on several occasions on the authenticity of eco-certification. They specified (16%) that mass media does make a considerate influence on their opinion about eco-products and their labelling. There were several occasions on the news, when COOL (country-of-origin labelling) was breached in Lithuania; foreign country products were labelled as grown or bread in Lithuania, instead of putting the country of origin - Poland, Latvia, Holland, Estonia or Russia. Therefore, due to cases of forged COOL, Lithuanian shopping centres and even open markets are loosing the trust of their valuable customers and their loyalty. Another factor loyalty, as indicated by the respondents is the price of an eco-product and its potential to compete with foreign substitutes. Approx. 53% of the respondents are likely to pay extra 1.5-2 Litas (~ 50 Euro cents) for eco-products as compared to ordinary products (with preservatives). Only 1.5%i of the respondents were ready to pay more than 2 Litas for eco-products, which is within the allowance of their family/ individual budgets. The third factor, impacting the level of loyalty for eco-products, mentioned by the surveyed people, was the eco-marketing actions, namely advertising (Figure 12). Even though advertising, as indicated in Figure 12, plays the least role in building customers' loyalty in Lithuania towards eco-products, this issue should not be under-valued. advertising infonningandcducating the society lowcrpriccs forcco-products increase of persoiuil income 20 40 60 80 100 Figure 12. Factors, which are likely (o increase (he customers' loyalty towards cco-producls (%), 2007 It is possible to assume that eco-products and cco-labclling lack sufficient adveriising, as this survey proves. The respondents pointed out that they observed eco-product adverting on TV (53%), in print (newspapers, journals, leaflets and promotion material) (up to 18%), on Internet (3%) and 16% of respondents indicated that they did not come across any advertising, related to ecological production or consumption in the past 6 months. Tli^lNSFOimATlOm IN imiNrXS e> nCONOMlCS, Vol. 8, No 1 (16), 2009
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