66
commercial and private consumers with information on the characteristics of
products and services . Such communication from manufacturers towards their clients
is based on the insight that product information is − in most cases − asymmetrically
allocated between buyers and sellers (Karl and Orwat 1999 : 114). According to
Nelson ( 1970 ) and Darby and Karni ( 1973 ), consumers are not able to judge all
qualities of products. In order to cope with asymmetric information, consumers
need support in their purchasing activities provided by different tools. There is a
widespread arena of different approaches to transmit this information, there are
qualitative approaches using symbols and logos, and there are quantitative
approaches presenting quantitative and numeric information in different units.
They intend to fi ll the information gap so-called credence goods leave behind,
providing information transmission. They aim to establish a reliable and trustworthy
information system regarding product features.
Section 2 presents an overview of different concepts and approaches as tools
applicable within Life Cycle Management. Section 3 deepens relevant approaches
by describing some characteristic elements. Section 4 elaborates on a hierarchy,
whereas the fi nal Sect. 5 summarizes the outcomes and draws some conclusions.
2 Overview on Different Approaches
The transmission of information between sellers – i.e. industry and business – and
their clients is not only motivated by coping with asymmetric information, but by a
series of driving forces (see UNEP 2006 : 43) depending on the target audiences:
• Private consumers to get competitive advantage in emerging or new markets
• Commercial business purchasers to respond to requests of business in the supply
chain or to compete on the business-to-business market
• Public purchasers to demonstrate compliance with Green Public Procurement
(GPP) requirements
• Societal stakeholders to respond to requests and pressures from NGOs
• Banking and fi nance which are keen to judge technical and environmental risks
of companies and their products
• Policy makers and public administration to deliver information and data to support them in policy decisions and to favour reasonable decisions
Communication between manufacturers and the mentioned target groups might
take on different forms: oral, written, formalized, informal, standardized, etc. Some
of them are mandatory, prescribed by national or international regulations, some are
voluntary; Fig. 6.1 provides a classifi cation of different approaches to transmitting
information.
Mandatory approaches request that every producer or retailer introducing products
in the market is obliged to fulfi l prescriptions on the provision of product information. Compulsory product information refers often to the health and safety
aspects of products, giving details of chemical substances contained within the
F. Rubik
commercial and private consumers with information on the characteristics of
products and services . Such communication from manufacturers towards their clients
is based on the insight that product information is − in most cases − asymmetrically
allocated between buyers and sellers (Karl and Orwat 1999 : 114). According to
Nelson ( 1970 ) and Darby and Karni ( 1973 ), consumers are not able to judge all
qualities of products. In order to cope with asymmetric information, consumers
need support in their purchasing activities provided by different tools. There is a
widespread arena of different approaches to transmit this information, there are
qualitative approaches using symbols and logos, and there are quantitative
approaches presenting quantitative and numeric information in different units.
They intend to fi ll the information gap so-called credence goods leave behind,
providing information transmission. They aim to establish a reliable and trustworthy
information system regarding product features.
Section 2 presents an overview of different concepts and approaches as tools
applicable within Life Cycle Management. Section 3 deepens relevant approaches
by describing some characteristic elements. Section 4 elaborates on a hierarchy,
whereas the fi nal Sect. 5 summarizes the outcomes and draws some conclusions.
2 Overview on Different Approaches
The transmission of information between sellers – i.e. industry and business – and
their clients is not only motivated by coping with asymmetric information, but by a
series of driving forces (see UNEP 2006 : 43) depending on the target audiences:
• Private consumers to get competitive advantage in emerging or new markets
• Commercial business purchasers to respond to requests of business in the supply
chain or to compete on the business-to-business market
• Public purchasers to demonstrate compliance with Green Public Procurement
(GPP) requirements
• Societal stakeholders to respond to requests and pressures from NGOs
• Banking and fi nance which are keen to judge technical and environmental risks
of companies and their products
• Policy makers and public administration to deliver information and data to support them in policy decisions and to favour reasonable decisions
Communication between manufacturers and the mentioned target groups might
take on different forms: oral, written, formalized, informal, standardized, etc. Some
of them are mandatory, prescribed by national or international regulations, some are
voluntary; Fig. 6.1 provides a classifi cation of different approaches to transmitting
information.
Mandatory approaches request that every producer or retailer introducing products
in the market is obliged to fulfi l prescriptions on the provision of product information. Compulsory product information refers often to the health and safety
aspects of products, giving details of chemical substances contained within the
F. Rubik