TY - JOUR
T1 - Resource-constrained product development
T2 - Implications for green marketing and green supply chains
AU - Sharma, Arun
AU - Iyer, Gopalkrishnan R.
PY - 2012/5/1
Y1 - 2012/5/1
N2 - While academic debates and practical approaches to green marketing have matured over the past few decades, one central conundrum that has remained unresolved has been the trade-off between the higher prices of green products and the objectives of environmental sustainability. In general, it has been observed that green products are priced at a premium to account for their environmentally friendly consumption and use. We argue that resource-constrained product development approaches (alternatively labeled jugaad) that are observed in emerging countries such as China and India have the potential to change the traditional models of green product development. In addition to the competitive advantage that resource-constrained product development approaches provide, we suggest that these practices have sustainability and supply chain benefits. We show that the innovation process relies primarily on frugal engineering that reduces material use (thereby reducing burden on supply chain) and meets green marketing objectives at much lower, and therefore, more affordable prices. We draw out several implications for theory and practice.
AB - While academic debates and practical approaches to green marketing have matured over the past few decades, one central conundrum that has remained unresolved has been the trade-off between the higher prices of green products and the objectives of environmental sustainability. In general, it has been observed that green products are priced at a premium to account for their environmentally friendly consumption and use. We argue that resource-constrained product development approaches (alternatively labeled jugaad) that are observed in emerging countries such as China and India have the potential to change the traditional models of green product development. In addition to the competitive advantage that resource-constrained product development approaches provide, we suggest that these practices have sustainability and supply chain benefits. We show that the innovation process relies primarily on frugal engineering that reduces material use (thereby reducing burden on supply chain) and meets green marketing objectives at much lower, and therefore, more affordable prices. We draw out several implications for theory and practice.
KW - Frugal engineering
KW - Green marketing
KW - Jugaad
KW - New product development
KW - Sustainability
UR - http://www.scopus.com/inward/record.url?scp=84862679023&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84862679023&partnerID=8YFLogxK
U2 - 10.1016/j.indmarman.2012.04.007
DO - 10.1016/j.indmarman.2012.04.007
M3 - Article
AN - SCOPUS:84862679023
VL - 41
SP - 599
EP - 608
JO - Industrial Marketing Management
JF - Industrial Marketing Management
SN - 0019-8501
IS - 4
ER -