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Cornell Hospitality ReportVol 11 No 14 August 2011

Reversing the Green Backlash

Why Large Hospitality Companies Should Welcome ldquoCredibly Greenrdquo Competitors

by Michael Giebelhausen PhD and HaeEun Helen Chun PhD

This report was produced with the assistance of McDonaldrsquos USA a senior partner of the Cornell Center for Hospitality Research

Advisory Board

The Robert A and Jan M Beck Center at Cornell UniversityBack cover photo by permission of The Cornellian and Jeff Wang

Cornell Hospitality Reports Vol 11 No 14 (August 2011)

copy 2011 Cornell University This report may not be reproduced or distributed without the express permission of the publisher

Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University

Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications

Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853

Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu

Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS

Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc

Scott Berman Principal Real Estate Business Advisory Services Industry Leader Hospitality amp Leisure PricewaterhouseCoopers

Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces

Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer

Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis

Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America

HyattGregg Gilman Partner Co-Chair Employment Practices

Davis amp Gilbert LLP

Tim Gordon Senior Vice President Hotels pricelinecomSusan Helstab EVP Corporate Marketing

Four Seasons Hotels and ResortsJeffrey A Horwitz Chair Lodging + Gaming and Co-Head

Mergers + Acquisitions ProskauerKevin J Jacobs Senior Vice President Corporate Strategy amp

Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa

InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD

SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno CEO Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality

ServicesDavid Meltzer Senior Vice President Global Business

Development Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global

Operations Deployment and Program Management Marriott International Inc

Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America

Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager

Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox

Rothschild LLPSusan Robertson CAE EVP of ASAE (501(c)6) amp President of

the ASAE Foundation (501(c)3) ASAE FoundationSteve Russell Chief People Officer Senior VP Human

Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice

Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCK Vijayaraghavan Chief Executive Sathguru Management

Consultants (P) LtdAdam Weissenberg Vice Chairman and US Tourism

Hospitality amp Leisure Leader Deloitte amp Touche USA LLP

FriendsBerkshire Healthcare bull Center for Advanced Retail Technology bull Cruise Industry News bull DK Shifflet amp Associates bull ehoteliercom bull EyeforTravel bull 4Hotelierscom bull Gerencia de Hoteles amp Restaurantes bull Global Hospitality Resources bull Hospitality Financial and Technological Professionals bull hospitalityInsidecom bull hospitalitynetorg bull Hospitality Technology Magazine bull Hotel Asia Pacific bull Hotel China bull HotelExecutivecom bull International CHRIE bull International Hotel Conference bull International Society of Hospitality Consultants bull iPerceptions bull JDA Software Group Inc bull JD Power and Associates bull The Lodging Conference bull Lodging Hospitality bull Lodging Magazine bull LRA Worldwide Inc bull Milestone Internet Marketing bull MindFolio bull Mindshare Technologies bull PhoCusWright Inc bull PKF Hospitality Research bull Resort and Recreation Magazine bull The Resort Trades bull RestaurantEdgecom bull Shibata Publishing Co bull Synovate bull The TravelCom Network bull Travel + Hospitality Group bull UniFocus bull USA Today bull WageWatch Inc bull The Wall Street Journal bull WIWIHCOM bull Wyndham Worldwide

Thank you to our generous Corporate Members

PartnersDavis amp Gilbert LLP Deloitte amp Touche USA LLPDenihan Hospitality GroupeCornell amp Executive EducationExpedia Inc Forbes Travel GuideFour Seasons Hotels and Resorts Fox Rothschild LLP French Quarter Holdings Inc HVS Hyatt InterContinental Hotels Group Jumeirah GroupLRP PublicationsMarriott International IncMarshrsquos Hospitality Practice MaritzpricelinecomPricewaterhouseCoopersProskauer Sabre Hospitality SolutionsSathguru Management Consultants (P) Ltd Schneider Electric Thayer Lodging Group Thompson HotelsTravelportWATG

Senior PartnersASAE FoundationCarlson HotelsHilton WorldwideMcDonaldrsquos USAPhilips HospitalitySASSTRTaj Hotels Resorts and PalacesTIG Global

4 TheCenterforHospitalityResearchbullCornellUniversity

AbouT The AuThors


WhyLargeHospitalityCompaniesShouldWelcomeldquoCrediblyGreenrdquoCompetitors

byMichaelGiebelhausenandHaeEunHelenChun

Michael Giebelhausen PhD is an assistant professor of marketing at the Cornell University School of Hotel Administration He earned his PhD in Marketing from Florida State University (and a ldquoDuctoraterdquo from Walt Disney University) His research focuses on consumer behavior in service settings He teaches Marketing Research Marketing Principles and Marketing Management for Services

haeeun helen Chun PhD is an assistant professor of marketing at the Cornell School of Hotel Administration Helen earned her PhD in Business

Administration (Marketing) from the Marshall School of Business at University of Southern California Her research interests include consumer experience

management in the service context with a focus on the role of consumer anticipation memory gifting and sensory marketing She teaches Consumer Behavior Marketing Principles and Marketing Management for

ServicesThe authors express their appreciation for the research support provided by McDonaldrsquos USA

CornellHospitalityReportbullAugust2011bullwwwchrcornelledu 5

exeCuTive suMMAry

This report presents three studies suggesting that when a large restaurant or hotel companyannouncestheadoptionofgreenpracticeconsumersmayreactincontraryfashionanddecreasetheirevaluationof thatcompanyFirstan in-depth interviewprojectamongstudentsat theSchool of Hotel Administration suggests that individuals are deeply skeptical when large

corporations and chains promote their sustainability initiatives as compared to small independentoperatorsSeekingcircumstancesinwhichalargecompanycouldgainsustainabilitycredibilitytwofollow-upexperimentsfurtherexaminetheinteractionofarestaurantchainrsquosgreenpracticeadoptionandthepresenceorabsenceofasmallhighlycrediblecompetitorTheresults indicate that in theabsenceofacrediblecompetitorconsumersrsquolikingofalargehospitalitycompanymayactuallydecreasewhen the company announces the adoption of a green practice (eg organic or locally sourcedingredients)IronicallytheninmarketswherethereisnocrediblygreencompetitorlargecorporationsmaybebetteroffnotpromotingtheirsustainabilityinitiativesTheoppositeistruehoweverwhenconsumers are aware of credible independent firms involved in green practices Under thesecircumstancesevaluationsofalargecompanyareimprovedInitiallywehypothesizedthatthelargecompanywouldneedtoimitatethecompetitorrsquosprogramtoreversethegreenbacklasheffectHowevertheresultsofasurveyofanationwidepanelofconsumerssuggeststhatareversalofthegreenbacklashcanoccurevenifthelargecompanyisengagedinadifferentgreenactivityThekeymechanismwascredibilityortrustworthinessofthecompanywithregardtothegreenpractice


Cornell hosPiTAliTy rePorT

The hospitality industry has wholeheartedly taken up the banner of sustainabilityRestaurants are promoting their use of locally sourced organic ingredients hotelsannounce reductions in their carbon footprint ski areas are installing wind poweredchairliftsandindustryleadersarediscussinghowtoestablishstandardsforsustainability1

ThisapparententhusiasmforallthingsgreenhaswellfoundedreasonsFromanoperationsstandpointsimplepracticessuchasswitchingtocompactfluorescentlightbulbsandstartinglinenre-useprogramshave resulted in substantial savingsmdashboth in termsof costs andnatural resources2With regard tohumanresourcesrecentresearchsuggeststhatemployeesworkingatanorganizationcommittedtosustainabilitymayexperiencegreaterjobsatisfaction3Fromasalesperspectiveotherrecentresearchsuggeststhatindividualsarewillingtopaymoreforhospitalityservicesthatincorporategreenfeatures4IndeedaLEEDcertificationisacentralcomponentofsomehotelsrsquomarketingstrategy5Lastbutnotleastbeingabiteasierontheplanetjustseemsliketherightthingtodo

1GlennWithiamldquoTheChallengeofHotelandRestaurantSustainabilityFindingProfitinlsquoBeingGreenrsquordquoCornell Hospitality Roundtable and Confer-ence ProceedingsVol3No2(2011)CornellCenterforHospitalityResearch2AlexMSusskindandRohitVermaldquoHotelGuestsrsquoReactionstoGuestRoomSustainabilityInitiativesrdquoCornell Hospitality ReportsVol11No6(2011)3 CassandraWalshandAdamJSulkowskildquoAGreenerCompanyMakesforHappierEmployeesMoreSoThanDoesaMoreValuableOneARegres-sionAnalysisofEmployeeSatisfactionPerceivedEnvironmentalPerformanceandFirmFinancialValuerdquoInterdisciplinary Environmental ReviewVol11No4(2010)pp274-824SusskindandVermaopcit5 HerveacuteHoudreacuteldquoSustainableHospitalitycopySustainableDevelopmentintheHotelIndustryrdquoCornell Hospitality Industry Perspectives Vol1No3 (August2008)





Itisnotsurprisingthathospitalitycompaniesshouldwanttoinformconsumersabouttheirsustainabilityinitia-tivesUnfortunatelythepromotionofgreeninnovationshascausedconsumerstosuspectcompaniesofexaggeratingtheenvironmentalfriendlinessoftheirpracticesSomefirmsarethoughttooverpromotetheirsustainabilityapracticeknownasgreenwashingArecentsurveybytheCarbonTrustwarnsofapotentialbacklashasconsumersgrowevermoresuspiciousofcompaniesrsquosustainabilitypromotionefforts6Thismaybeaparticularlyrelevantconcernforthehospital-ityindustryWhenthinkingaboutthehospitalityindustryanumberofthingscometomindincludingindulgenceluxuryconvenienceandsimplyhavingfunNoneoftheseconceptsonemightarguearecloselyrelatedwiththeconceptofre-sponsibility(environmentalorotherwise)Whenindividualsencounterinformationthatisinconsistentwiththeirpreviousconceptionsitwarrantsadditionalattentionandconsider-ation7Thuswhenahospitalityorganizationpositionsitselfasbeinggreenconsumersrsquosuspicionsmayberaisedevenmorethanwithaconsumerpackagegoodscompany

OnemightsuspectthatinadditiontoindustrythesizeofthecompanyalsomattersArecentGalluppollfound67percentofAmericansdissatisfiedwiththesizeandinfluenceofmajorcorporationsinthecountrytodaythehighestlevelsinceGallupfirstaskedthisquestionin20018ThisisperhapsnotsurprisingInrecentyearslargecorporationshavereceivedalargeamountofnegativepressCorporategreedandquestionableethicsarecommonlyofferedasthecauseofeverythingfromthedownturnintheeconomytoenviron-mentaldisastersItishoweverstillpossibletobealdquogreengiantrdquoLargecompaniessuchasWholeFoodsGoogleIkeaMicrosoftandSCJohnsonmadethetoptenina2010surveyevaluatingconsumerperceptionsofbrandgreenness9

ThestudiespresentedhereusethetermldquolargerdquotodenoteaparticulartypeofhospitalityorganizationThisrathervaguetermraisesthequestionofwhatwemeanbylargeInthequalitativestudysuspicionssurroundingsustainablehos-pitalityweremostoftenmentionedinthecontextofglobalhospitalitybrandsthathaveexistedfordecadesandforwhichenvironmentalfriendlinesshasnotheretoforebeenacore

6 wwwcarbontrustcouk(2011)ldquoOnly7ofthePublicBelieveCompanyClaimsofActiononClimateChangerdquo(asviewedApril42011)7JoanMeyers-LevyandAliceMTyboutldquoSchemaCongruityasaBasisforProductEvaluationrdquoJournal of Consumer ResearchVol16June1989pp39ndash548 LydiaSaadldquoInUSMajorityStillWantsLessCorporateInfluencerdquoGallupPollhttpwwwgallupcompoll145871majority-wants-less-corporate-influenceaspx(viewedApril42011)92010ImagePowerregGreenBrandsSurveywppcom2011Thecompletelistwas(indescendingorder)BurtrsquosBeesWholeFoodsMarketTomrsquosofMaineTraderJoersquosGoogleAveenoSCJohnsonPublixMicrosoftandIkea

competencyAlsothesebrandstendedtobemid-marketbrandsratherthanthosethatoccupythehighendorlux-urymarketInkeepingwiththeinsightsgainedfromtheexploratorystudystudies2and3examinedbrandsthatfitthisdescription(thatislargewell-knownmid-marketbrands)Insummarythisreportusesthetermldquolargerdquotodescribeacorporateentitywithawellestablishedbrandidentitythatdoesnotnecessarilyhavestrongassociationswithpro-environmentalpractices

Study1ExploratoryZMETInterviewsThefindingspresentedhereasStudy1aretheresultofaCornellUniversitymarketingresearchclassprojectForthisprojectstudentsreceivedtrainingintheZaltmanMet-aphorElicitationTechnique(ZMET)anin-depthinter-viewtechniqueinvolvinganumberofstepsdesignedtotapintoareasoftheconsumerrsquosconsciousnotaccessibleviatraditionalmarketingresearchmethods10AkeypremiseofZMETsupportedbyresearchincognitivepsychologyisthatimagesarethefundamentalbuildingblocksofourthoughts11Thusmuchoftheinteractionbetweenthere-searcherandparticipantduringaZMETinterviewconsistsofdiscussingacollectionof12to15picturesassembledbytheparticipantpriortotheinterviewPicturesareselectedbytheparticipantsbasedontheextenttowhichtheyrep-resenttheparticipantrsquoskeythoughtsandfeelingsregardingtheresearchquestionInthiscasetheresearchquestionposedtoparticipantswasldquoWhatareyourthoughtsandfeelingsregardingsustainablehospitalityrdquo

Eachofthe50studentsintheclassinterviewedoneotherstudentThisinterviewwasrecordedandtranscribedEachstudentthenconductedaldquogroundedtheoryrdquoanalysisoftheirtranscriptGroundedtheoryreferstoldquoinsightsgarneredfromdatasystematicallygatheredandanalyzedrdquo12Inthisempiricalanalysiseachlineoftheinterviewtran-scriptisexamined(iecoded)withthegoalofidentifyingrecurringthemesTheresultingcodesfromalltranscriptsarethencombinedandfurtherdistilledintocodefami-lieswhicharethenintegratedintoaconceptualmapthatdetailsthelinkagesbetweenthevariousconcepts13TheresultsaretheproductofahighlymethodicalprocessofdocumentingandanalyzingasetofquantifiabledataForthefinalstepthestudentswereplacedingroupsofsix

10ForadescriptionseeGeraldZaltmanandRobinHigieCoulterldquoSeeingtheVoiceoftheCustomerMetaphor-BasedAdvertisingRe-searchrdquoJournal of Advertising ResearchVol35No4(1995)pp35-5111RaymondWGibbsldquoCategorizationandMetaphorUnderstandingrdquoPsychological ReviewVol99No3(1992)pp572-57712 AnselmStraussandJulietCorbinBasics of Qualitative Research Techniques and Procedures for Developing Grounded Theory2nded(ThousandOaksCASage1998)13ForadetaileddescriptionseeIbid


orsevenwheretheycomparedtheirindividualmapsandlookedforcommonthemesThestudentresearcherspre-sentedthemostimportantthemestogetherwithasupport-ingquoteandtherelatedimagetotheclassandtoseveralindustryprofessionals

KeyFindingsAmongtheinsightsgeneratedbythisprojectwasthatsevenoftheeightgroupsidentifieddistrustofenvironmentalclaimstobeafundamentalthemeHoweverunliketheCarbonTrustsurveypresentedaboveitappearedthatthe

studentsrsquodistrustwaslessabouttheinitiativesthemselvesandmoreaboutthemotivationdrivingthecompanytopur-suethoseinitiativesIllustrativequotesandcorrespondingpicturesfromthegroupsrsquopresentationarefoundinExhibit1Asshownatypicalquotewentsomethinglikethis

ldquoSometimesIcanrsquothelpbutthinksomanyofthesecompanieswhohavethiswholegreeninitiativelikeiftheyreallycareabouttheenvironmentortheyrsquorereallyjusttryingtolookgoodsotheycanmakemoremoneyrdquo

Exhibit 1

images and quotes from the ZMeT project exploring perceptions of sustainable hospitality

ldquoI question whether or not they actually want to help the environment because I feel with hotel companies itrsquos all about the bottom linerdquo

ldquoSometimes I canrsquot help but think so many of these companies who have this whole green initiative like if they really care about the environment or theyrsquore really just trying to look good so they can make more moneyrdquo

ldquoI disapprove of them having such power because I just think that big companiesdo whatever they wanthellipmaybe take away opportunities from other people because they just have so much money and that money gives them power to do kind of what they want to dordquo

ldquoI guess I feel like theyrsquore being hypocritical I guess it doesnrsquot make me feel too good I feel like people need to or companies need to look at what theyrsquore doing and make sure theyrsquore not conflicting their idealsrdquo

ldquoYoursquore being poseurs just because everyone else is trying to be green yoursquore trying to be green but what have you done I guess it all comes back to the whole is this really something that is a trend that everyone wants to do or is this just something McDonaldrsquos is doing because it looks goodrdquo

Note ZMET interview participants selected the images shown to depict their feelings and to provide a basis for further discussion


WhileitwasnotalwaysexplicitlystateditappearedthatldquolargerdquocompaniesweretheprimarytargetofthisdistrustTheconceptofldquogreenrdquowasmoreassociatedwithbeingindependentoroutsideofthemainstreamImagesof

ldquohippiesrdquowerelinkedtotheideaofsustainabilitybyoneoutoffiveparticipantsGreencredibilityitwouldappearisonlyaccessibletosmallindependenthospitalitycompanies

ldquoIdisapproveof[bigcompanies]havingsuchpowerbecauseIjustthinkthatbigcompaniesdowhatevertheywanthellipmaybetakeawayop-portunitiesfromotherpeoplebecausetheyjusthavesomuchmoneyandthatmoneygivesthempowertodokindofwhattheywanttodordquo

AnotherthemeidentifiedbysixoftheeightgroupswasconfusionregardingthesustainabilityinitiativesthemselvesManymentionedtheneedforthird-partycertificationsofgreenactivities(thoughsomeindicateddistrustregardingcertificationbodies)OthersmentionedtheneedformoreeducationregardingsustainabilityThisuncertaintywasnotonlyinreferencetothepracticeitselfbutalsotoitseffectontheguestexperience

DiscussionThefindingsofthisprojectareconsistentwiththoseofotherrecentstudiesbuttheseresultsmayprovidesomeadditionalinsightsItwouldseemthattheparticipantsinthisstudyhavewellformed(negative)opinionsoflargecorporationsbutareunsureaboutwhatactivitiesaretrulygreenandhavesubstantialconsequencesfortheenvironmentThuswhenlargecompaniesannounceasustainabilityinitiativeitseemscrucialthattheyneedtoconveythecredibilityoftheirgreenpracticesaswellItisalsoworthnotingthattheseresultsaresomewhatsurprisinggiventhisparticipantgroupOnewouldthinkthatcollegestudentswouldgenerallybemoreeducatedaboutsustainabilityandwouldfavoranycompanywithgreenpracticesByallaccountsthisstudywasbiasedinfavorofsustainabilityThefactthatsomanyrespondentsexpressedadeepsuspicionoflargecompaniesrsquosustainabilityinitiativesandareluctancetopurchasegreenproductsmayindicateagreenmarketingbacklashStudies2and3aredesignedtofurtherexaminewhetherpromotinggreenprac-ticesmightdecreaseevaluationsofacompanyandwhethercopyingacrediblygreencompetitormightreversethiseffect

Study2LocallySourcedIngredientsTheresultsofStudy1indicatedthatsustainabilityinitiativesbysmallcompaniesareviewedascrediblewhilethosebybigcompaniesarenotInterestinglyrecentresearchbyWilsonRobinsonandDarkehasdemonstratedthatalargecompanycanbolsteritsgreencredibilitythroughthefriendlyacquisi-tionofacrediblygreencompetitor(egColgate-Palmolive

The fact that so many respondents expressed

skepticism of large companiesrsquo sustainability initiatives may indicate a green marketing

backlash


purchasingTomrsquosofMaine)14Noteverylargecompanyhastheabilityordesiretopurchaseacompetitormdashoranestab-lishedgreenbrandmdashsimplytoimprovetheirimageHoweverperhapsitispossibleforalargecompanytogeneratethesameeffectbyaligningoneselfwithacrediblecompetitorinanotherwayevenbysimplyimitatingthatcompetitorrsquospracticesStudy2wasdesignedtotestundercontrolledcon-ditionswhetheralargerestaurantchainrsquospromotionofasus-tainabilityinitiativewouldincuragreenbacklashAnequallyimportantobjectivewastodeterminewhetherthisbacklasheffectwouldoccurwhenthelargecompanyrsquossustainabilityinitiativewassimilartothatofacrediblygreencompetitorWesummarizethesetwoideasinthefollowinghypotheses

H1Intheabsenceofacrediblygreencompeti-tortherewillbeanegativeeffectofpromotingagreenpracticeonevaluationsofalargecompany

H2Thepresenceofacrediblygreencompeti-torwithasimilarpracticewillreducethegreenbacklasheffectdescribedinH1

MethodWeconductedanon-lineexperimentwith189undergradu-atestudentstotestthesetwohypothesesThestudentsparticipatedintheexperimentinexchangeforcourseextracreditGuidedbythecriteriadiscussedaboveweselectedRedLobsterastheldquolargerdquocompanybrandTheexperimentconsistedofa2x2betweensubjectdesignRedLobsterrsquosgreenpracticewasnotmentionedorRedLobsterannouncesalocallysourcedingredientcrossedwithacrediblygreencompetitorisabsentorispresentRespondentswereran-domlyassignedtooneofthefourresultingconditions

Weaskedrespondentstoimaginethattheyhadexpe-riencedoneofthefourscenarioscorrespondingtotheex-perimentalconditionsThecontextofthisstudywasaspringbreaktriptoStAugustineFloridaWeaskedthemtoimag-inethattheydecidedtolookforaseafoodrestaurantwhilewaitingfortheirfriendswhowouldbearrivinginthreehoursAstheyweredrivingtheyencounteredabillboardforRedLobsterwhichdepictedtheRedLobsterlogoapictureofapieanddirectionstotherestaurantFortheone-halfoftheparticipants(inthelocallysourcedingredientcondition)thebillboardreadldquoNowservingpiemadefromlocallygrownFloridakeylimesrdquoFortheotherhalf(nogreenpracticecondition)thebillboardsloganreadldquoNowservinganexpandedselectionofdessertsrdquoAdditionallyhalfoftheparticipantsalsoexperiencedtheldquocompetitorpresentrdquocondi-

14AndrewWilsonStaceyRobinsonandPeterDarkeldquoWhenDoesGreenwashingWorkConsumerPerceptionsofCorporateParentandCorporateSocietalMarketingFirmAffiliationrdquopresentedat2009As-sociationforConsumerResearchNorthAmericanConferencePittsburghPennsylvania

When large companies announce a sustainability initiative it seems crucial that they also need to convey the credibility of their green practices


topositive)Theseitemswereaveragedtoformacompositemeasureofbrandevaluations(α =98)Nextwemeasuredindividualdifferencesintheiroverallapproachtosustain-ableorgreenbehaviorbyaskingrespondentstoindicatetheextenttowhichtheyagreewiththefollowingfourstatements(againona9-pointscalewhere1=completelydisagree9=completelyagree)ldquoIwouldbewillingtopaymoreforfoodproducedinanenvironmentallysustainable

tionandwereshownabillboardforasmallcompetitorwithacrediblygreenpracticereadingldquoOver80ofourseafoodissustainablysourcedfromlocalFloridafishermenrdquoThoseassignedtothecompetitorabsentconditionsawnosecondbillboardExhibit2showsthebillboards

ParticipantswerethenaskedtoindicatetheiroverallevaluationsofRedLobsterusingthree9-pointevaluationscales(disliketolikeunfavorabletofavorableandnegative

Exhibit 2

study 2 scenario example

Get yourself in a spring break state of mind and imagine that you actually experienced the following scenarioYour friends talked you into joining them on a trip to St Augustine Florida over spring break One of your friends has access to a family vacation home in St Augustine and you were able to find a very cheap flight Your flight has landed but the rest of your friends will not be arriving for three hours It is 1100 and you have not eaten breakfast so you decide to pick up the rental car and find someplace to have lunch while you wait for your friends Being this close to the ocean makes you hungry for a fish sandwich so you decide to look for a seafood restaurant As you are driving you see the billboard below

On the opposite side of the road is another billboard


wayrdquoldquoIbuyorganicgroceriesrdquoldquoPeoplemightconsidermetobeabitofalsquotreehuggerrsquordquoandldquoIpreferfoodthathasnoar-tificialingredientsrdquoThesefouritemswereaveragedtoformacompositemeasureofgreentendency(α=80)Finallyweaskedtheirlikingofseafoodona9-pointscale(1=dislike9=like)anddemographicinformation

ResultsWeconducteda2x2ANCOVA(RedLobstergreenpracticeornopracticecrossedwithcrediblygreencompetitorornocompetitor)onbrandevaluationswithrespondentsrsquolikingtowardseafoodgreentendencygenderandageascontrolvariablesTheanalysisrevealedonlyasignificantinteractioneffect(F(1182)=475p=03seeExhibit3)AspredictedintheabsenceofacrediblygreencompetitorconsumersrsquoevaluationsofRedLobster(M=471)diminishedwhenthecompanyannounceditsadoptionofagreenpractice(M=427)HoweverinthepresenceofacrediblygreencompetitortheannouncementofagreenpracticeenhancedconsumersrsquoevaluationsofRedLobster(M=423vs504)

DiscussionTheresultsofStudy2providesupportforH1andH2regard-ingthepotentialforagreenbacklasheffectandwhetherimi-tatingacrediblygreencompetitormightreversethiseffectHoweverinretrospectitisnotentirelyclearthatourma-nipulationaddressestheintendedquestionInparticularitisdebatablewhetherRedLobsterrsquoslocalsourcingofasingledessertingredientwouldbeseenassimilartothecrediblecompetitorrsquosclaimoflocallysourcing80percentoftheirsea-foodWemadethiscomparisonforverisimilitudebecausewedidnrsquotthinkthatitisfeasibleformostlargeorganizationstoimplementgreenpracticesonthesamescaleassmallindependentsOurmotivationwhendesigningthisstudy

wastopresentparticipantswithagreenpracticethatalargecompanymightactuallybeabletoexecuteHoweverinpursuitofecologicalvaliditywemayhavestrayedfromouroriginalpurposeandpresentedagreenpracticeperceivedbyconsumerstobedifferentfromthatofthecrediblecompeti-torAdditionallywhileStudy2confirmedourpredictionsregardingtheproposedeffectwedidnotdirectlyaddresstheprocessbywhichthereversalwasattainedStudy3wasdesignedtoinvestigatethisprocessandalsoreplicatetheresultsofStudy2withparticularattentiontothesimilarityofthetwocompaniesrsquogreenpractices

Study3ChainwideOrganicIngredientsInadditiontoclarifyingtheissueofperceivedpracticesimilarityandreplicatingthegreenbacklasheffectStudy3providesanopportunitytoexaminetheprocessthroughwhichthepresenceofacrediblecompetitorreversesthisbacklasheffectInparticularwepredictthattheperceivedcredibilityofthelargecompanymediatesthiseffect

H3ThemechanismreversingthegreenbacklasheffectdescribedinH1andH2istheperceivedcredibilitybehindthelargecompanyrsquosgreenactions

MethodForthisstudywesurveyed433panelistsfromanationalmarketingresearchcompanyOftherespondents47percentweremaleseventy-sevenpercentwereCaucasian9percentAfricanAmerican4percentAsian4percentHispanicand1percentNativeAmericantheiragesrangedfrom19to90andtheaverageagewas47McDonaldrsquoswaschosenasabrandtorepresentalargehospitalitycompanyforStudy3

Thistimeweuseda2x3betweensubjectsdesignThetwoMcDonaldrsquosvariableswerethatthefirmannounceditsuseoforganicsandwichtoppingsversusnomentionthiswassetagainstthreepossibilitiesforthecompetitorvariablenocompetitorcrediblygreencompetitor(differentpractice)crediblygreencompetitorusingorganicsandwichtoppings

ForthescenariosinthisstudyrespondentswereaskedtoimaginethattheywerewalkingdownastreetnearwheretheyworkandtheydecidedtograblunchOne-thirdoftherespondentsreadthattherewasaMcDonaldrsquosatthecornerofthestreet(nocompetitorcondition)andtheothertwo-thirdsreadthattherewasaMcDonaldrsquosatthecornerofthestreetandanldquoEarthBurgerrdquoarestaurantfeaturinglocallyraisedfree-rangebeefacrossthestreet(crediblygreencompetitorcondition)TheinformationaboutMcDonaldrsquoswaspresentedsuchthathalfoftherespondentsweretoldthatMcDonaldrsquoswasadvertisingtheiruseoflocallygrownorganicvegetablesforallsandwichtoppingsFortheotherhalfofrespondentstherewasnomentionoftheMcDon-aldrsquosorganictoppingpractice(nomentioncondition)Of

Exhibit 3

study 2 ancova results showing evaluation of red lobster with and without a competitor

520

500

480

460

440

420

400

red lobsterrsquos Green Practice

Competitor absent Competitor present

no green practice

local limes promoted

ev

al

ua

ti

on

Note Evaluation scale is consolidated from three nine-point scales dislike to like unfavorable to favorable and negative to positive


theparticipantsexposedtoldquoEarthBurgerrdquohalfweretoldthatthiscrediblecompetitoruseslocallygrownorganicvegetablesforallsandwichtoppings(seeExhibit4)

AfterreadingthescenarioparticipantsreportedtheirevaluationsofMcDonaldrsquosusingthesame3-itemevaluationmeasureusedinstudy215AlsoaswithStudy2individualdifferencesinoverallapproachtosustainableorgreenbe-havioranddemographicdatawerecollectedTocontrolforparticipantsrsquoquick-servicepatronagewecollectedinforma-tionabouttherespondentsrsquomonthlyfrequencyofeatingoutinaQSRInstudy3ameasureofperceivedcredibilitywasalsoincludedtoexaminepotentialmediatingprocessesUsingseven-pointscalesparticipantsreportedtheextenttowhichtheythoughtMcDonaldrsquoswascommittedtothegreenorsustainabilityinitiative(1=notatallcommitted7=verycommitted)whetherMcDonaldrsquospracticeofusingorganicvegetabletoppingsiseffectiveinconveyingitsgreeninitia-tive(1=notatalleffective7=veryeffective)andwhetherMcDonaldrsquosiscredible(trustworthy)inconveyingitsgreeninitiatives(1=notatallcredibleortrustworthy7=verycredibleortrustworthy)Thesefouritemswereaveragedtoformacompositemeasureofcredibility(α =94)

ResultsWeexaminedthedifferencesintheevaluationsofMcDon-aldrsquosbetweentheldquonomentionrdquoandldquoorganicsandwichtoppingsrdquoconditionsdependinguponthepresenceofacrediblygreencompetitorandthetypeofthegreenpracticesadoptedbyldquoEarthBurgerrdquo(seeExhibit5fortheresults)WhentherewasnocompetitorpresenttheMcDonaldrsquosmentionoftheorganictoppingsdecreasedconsumersrsquo

15WealsomeasuredrespondentsrsquobehavioralintentionstowardMcDon-aldrsquos(ldquohowlikelyisitthatyouwouldgotoMcDonaldrsquosforlunchrdquo)with2-item7-pointintentionscalesHoweverduetothelackofreliabilitywiththemeasurewedroppeditfromouranalyses

Please read the following scenario carefully before proceedingImagine that you are walking down a street near where you work and you decide to grab lunch

You notice McDonaldrsquos at the corner of the street and Earth Burger a local burger shop across the street McDonaldrsquos advertises using locally grown organic vegetables for all burger toppings (eg lettuce onions etc) Earth Burger which uses locally raised free-range beef for their burgers also advertises that they use locally grown organic vegetables for all burger toppings (eg lettuce onions etc)

You are debating about where to grab lunch

Exhibit 4


Exhibit 5

study 3 ancova results showing evaluation of McDonaldrsquos with and without a competitor

540

520

500

480

460

440

420

400e

va

lu

at

io

n

Presence or absence of credible local green competitor

Competitor absent

Competitor present

different practice

Note Evaluation scale is consolidated from three nine-point scales dislike to like unfavorable to favorable and negative to positive For the overall interaction effect the two competitor-present conditions were combined due to no interaction observed between the different green practices

Competitor present similar

practice

no McDonaldrsquos green practiceMcDonaldrsquos uses organic sandwich toppings


overallevaluationsofthebrandconfirmingourpredic-tionaboutthesustainabilitybacklasheffect(M=519toM=479)HowevertheiroverallevaluationsofthebrandincreasedwhenMcDonaldrsquosannouncedagreenpracticeregardlessofwhethertheirpracticeissimilarto(M=464toM=491)ordifferentthan(M=440toM=483)thatofthecrediblygreencompetitor(seeExhibit3)InterestinglythedissimilargreenpracticeactuallyseemedtoproducethemostpositiveresultsSincetherewasnointeractioneffectobservedbetweenthetwocompetitor-presentconditionswecombinedthemandconducteda2x2ANCOVA(Mc-Donaldrsquosgreenpracticeornopracticecrossedwithcrediblygreencompetitorornocompetitor)onevaluationsofthebrandRespondentsrsquogreentendenciesQSReatingfrequencygenderandagewerecontrolvariablesAspredictedtheanalysisrevealedasignificantinteractioneffect(F(1401)=372p=05)

WefurthertestedH3regardingwhethercredibilitywouldmediatetheobservedeffectParticipantsrsquoevaluationsregardingthecredibilityortrustworthinessofaMcDonaldrsquosgreenpracticehadapositiveeffectontheirevaluationsofthebrand(b=75t =1729plt001)Additionallytheobservedsignificantinteractioneffectbetweenacompanyrsquosgreenpracticeandthepresenceofacrediblygreencom-petitorwasrenderedinsignificantwhenconsumersrsquobeliefsaboutcredibilityortrustworthinessofacompanyrsquosgreenpracticewascontrolled(fromF(1401)=372p=05toF(1400)=179p=18)Consumersrsquobeliefsaboutcred-ibilityortrustworthinessofacompanyrsquosgreenpracticeremainedasasignificantfactor(F(1400)=28751plt001)confirmingthatperceivedcredibilityortrustworthinessofagreenpracticeservedasamediator

DiscussionStudy3replicatedtheresultsobtainedinStudy2andalsoprovidedevidencethatperceivedcredibilityfunctionsastheunderlyingmechanismHoweverwhatwasparticularlyinterestingaboutStudy3wastheinsightsgainedregardingthetypeofgreenpracticealargecompanyshouldpursueIncontrasttowhatwasoriginallyhypothesizedtheresultsap-peartoindicatethatitisnotnecessarytoimplementaprac-ticesimilartothatofacrediblygreencompetitorIndeedthebiggestpositiveeffectwaswhenthelargecompanyrsquospracticewasnotatallsimilartothatofthecrediblygreencompanyThusitissimplythepresenceofthiscompetitorinthemarketthatmatterswhenthelargecompanypro-motesgreeninitiatives

GeneralDiscussionandManagerialImplicationsDespiteobviousconcernsaboutgreenwashingaccusationslargecompaniesshouldnotinterpretthisreportrsquosfindingsasrecommendingabandonmentofgreeninitiativesEvenifconsumersareskepticalrestaurantsandhotelsbenefitfromadoptingenvironmentallyfriendlybusinesspracticesmdashandbuildingcredibilityofthosepracticeswillcreatepositivecustomerattitudesSecondhavinggreeninitiativesinplacewillallowalargefirmtoquicklymatchanyclaimbyacredi-blesmallcompetitorIndeedalargehospitalityorganizationmightevenconsidercreatingitsowncompetitionlaunchingaseparatebrandwithanenvironmentallyfriendlypositionandthenadoptingoneoftheirpracticesLargehotelchainshavelaunchedboutiquebrandsandtheycouldcertainlydothesamewithgreenbrands

Wecannotexplainwhyalargecompanyrsquosgreenpractic-esbecomemorecredibleinthepresenceofacrediblygreencompetitorHoweveritcouldbearguedthatthepresenceofacrediblecompetitoractuallymanipulatesconsumersrsquoknowledgeregardingapracticersquoscredibilityShowingthatsomeonecredibleisdoingaparticularpracticevalidatesthatpracticeHoweverasconsumersbecomemoreeducatedregardinggreenpracticesthistypeofvalidationmaynotbenecessaryFutureresearchshouldinvestigatetheextenttowhichlearningisresponsiblefortheeffectsobservedinstudies2and3Perhapslargecompaniessimplyneedtoeducateconsumersregardingtheefficacyoftheirsustain-abilityinitiativesHoweveritalsoseemslikelythatgiventheextenttowhichconsumersdistrustlargecompaniestheseeducationaleffortsmightbeinvainPerhapsthebeststrategyforbigbusinessistoadoptavarietyofsustainabilitypracticesbutnotpromotethosepracticesuntilacrediblygreencompetitorthreatenstostealawaymarketsharen


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Cornell Center for Hospitality Research

Publication Indexwwwchrcornelledu

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Vol10No2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricingbyWayneJTaylorandSherylEKimesPhD


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Cornell Center for Hospitality ResearchPublication Index

wwwchrcornell edu

Advisory Board

The Robert A and Jan M Beck Center at Cornell UniversityBack cover photo by permission of The Cornellian and Jeff Wang

Cornell Hospitality Reports Vol 11 No 14 (August 2011)

copy 2011 Cornell University This report may not be reproduced or distributed without the express permission of the publisher

Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University

Rohit Verma Executive DirectorJennifer Macera Associate DirectorGlenn Withiam Director of Publications

Center for Hospitality ResearchCornell University School of Hotel Administration489 Statler HallIthaca NY 14853

Phone 607-255-9780Fax 607-254-2922wwwchrcornelledu

Niklas Andreacuteen Group Vice President Global Hospitality amp Partner Marketing Travelport GDS

Rarsquoanan Ben-Zur Chief Executive Officer French Quarter Holdings Inc

Scott Berman Principal Real Estate Business Advisory Services Industry Leader Hospitality amp Leisure PricewaterhouseCoopers

Raymond Bickson Managing Director and Chief Executive Officer Taj Group of Hotels Resorts and Palaces

Stephen C Brandman Co-Owner Thompson Hotels IncRaj Chandnani Vice President Director of Strategy WATGBenjamin J ldquoPatrickrdquo Denihan Chief Executive Officer

Denihan Hospitality GroupBrian Ferguson Vice President Supply Strategy and Analysis

Expedia North AmericaChuck Floyd Chief Operating OfficerndashNorth America

HyattGregg Gilman Partner Co-Chair Employment Practices

Davis amp Gilbert LLP

Tim Gordon Senior Vice President Hotels pricelinecomSusan Helstab EVP Corporate Marketing

Four Seasons Hotels and ResortsJeffrey A Horwitz Chair Lodging + Gaming and Co-Head

Mergers + Acquisitions ProskauerKevin J Jacobs Senior Vice President Corporate Strategy amp

Treasurer Hilton WorldwideKenneth Kahn PresidentOwner LRP PublicationsKirk Kinsell President of Europe Middle East and Africa

InterContinental Hotels GroupRadhika Kulkarni PhD VP of Advanced Analytics RampD

SAS InstituteGerald Lawless Executive Chairman Jumeirah GroupMark V Lomanno CEO Smith Travel ResearchBetsy MacDonald Managing Director HVS Global Hospitality

ServicesDavid Meltzer Senior Vice President Global Business

Development Sabre Hospitality SolutionsWilliam F Minnock III Senior Vice President Global

Operations Deployment and Program Management Marriott International Inc

Mike Montanari VP Strategic Accounts Sales - Sales Management Schneider Electric North America

Shane OrsquoFlaherty President and CEO Forbes Travel GuideThomas Parham Senior Vice President and General Manager

Philips Hospitality AmericasChris Proulx CEO eCornell amp Executive EducationCarolyn D Richmond Partner Hospitality Practice Fox

Rothschild LLPSusan Robertson CAE EVP of ASAE (501(c)6) amp President of

the ASAE Foundation (501(c)3) ASAE FoundationSteve Russell Chief People Officer Senior VP Human

Resources McDonaldrsquos USAMichele Sarkisian Senior Vice President MaritzJanice L Schnabel Managing Director and Gaming Practice

Leader Marshrsquos Hospitality and Gaming PracticeTrip Schneck President and Co-Founder TIG Global LLCK Vijayaraghavan Chief Executive Sathguru Management

Consultants (P) LtdAdam Weissenberg Vice Chairman and US Tourism

Hospitality amp Leisure Leader Deloitte amp Touche USA LLP






AbouT The AuThors










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Competitor absent

Competitor present

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Competitor absent

Competitor present

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exeCuTive suMMAry

























Exhibit 1

















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520

500

480

460

440

420

400



no green practice


ev

al

ua

ti

on










Exhibit 4


Exhibit 5


540

520

500

480

460

440

420

400e

va

lu

at

io

n


Competitor absent

Competitor present

different practice



practice
















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wwwchrcornell edu























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ev

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540

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500

480

460

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420

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lu

at

io

n


Competitor absent

Competitor present

different practice



practice
















Success

AdvancingBusiness

andPersonal























































wwwchrcornell edu










backlash













Exhibit 2














Exhibit 3


520

500

480

460

440

420

400



no green practice


ev

al

ua

ti

on










Exhibit 4


Exhibit 5


540

520

500

480

460

440

420

400e

va

lu

at

io

n


Competitor absent

Competitor present

different practice



practice
















Success

AdvancingBusiness

andPersonal























































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Exhibit 2














Exhibit 3


520

500

480

460

440

420

400



no green practice


ev

al

ua

ti

on










Exhibit 4


Exhibit 5


540

520

500

480

460

440

420

400e

va

lu

at

io

n


Competitor absent

Competitor present

different practice



practice
















Success

AdvancingBusiness

andPersonal























































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Exhibit 3


520

500

480

460

440

420

400



no green practice


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al

ua

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on










Exhibit 4


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540

520

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lu

at

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Competitor absent

Competitor present

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Exhibit 4


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540

520

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480

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440

420

400e

va

lu

at

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Competitor absent

Competitor present

different practice



practice
















Success

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Why Large Hospitality Companies Should Welcome “Credibly ... · Why Large Hospitality Companies...

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