How Going Green Affects Consumer Buying
Consumers are looking for environmentally friendly product options when they shop, out of concern for the well being of environment, according to a 2008 study of U.S. households by market research company Hansa/GCR. In reaction to the growing demand for earth-friendly goods, consumers should be wary of a flood of supposedly "green" products that may be hitting the market., according to reports.
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Cost
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Consumers who don't buy green attribute their choice to cost, as green products often cost more. According to the "Centre for Retail Research Green Buying Guide," a study conducted in 2010 for Kelkoo, a British online shopping website, sales of green products in Europe are predicted to double by 2015 as the price of "green" goods decrease. While product that benefit consumer pocketbooks, like energy-efficient appliances and light bulbs, are strong despite higher prices, Kelkoo Managing Director Bruce Fair said sales of other environmentally friendly products, like organically raised food, will not be widespread until prices drop. "Sales of green products will not become commonplace until suppliers give consumers better price incentives in-store and online to follow their consciences," Fair said in a press release accompanying the report.
"BBMG Conscious Consumer Report: Redefining Value in a New Economy," a study by Branding and Integrated Marketing, a New York-based marketing research firm, found that 50 percent of U.S. consumers are willing to pay more for products that are environmentally friendly, but 66 percent cite cost as the primary factor in making purchasing decisions.
Green Accountability
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The BBMG report noted that consumers find a company's environmental and social behavior another important factor when determining which product to purchase, with 71 percent agreeing that they "avoid purchasing from companies whose practices they disagree with," and 55 percent will further tell others to avoid purchasing from those companies, according to the study. In the Hansa study, 61 percent of respondents "strongly agree" that businesses have social responsibilities beyond providing goods and services and 51 percent agreed that providing green products and services is part of that responsibility.
Benefits to Consumers
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In the case of green technology Hansa reports that 44 percent of green technology users have noticed a cost benefit. Green technology includes a broad range of items from the Environmental Protection Agency's Energy Star Program, from household appliances to hybrid vehicles. Not only can purchasing green appliances and technology help conserve power and water, our smaller choices have an impact as well. The EPA reports that 2.8 million employed janitors are repeatedly exposed to harmful cleaning chemicals, natural alternatives are eliminating this danger.
Environmental Purchase Considerations
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Consumers who buy green products have reported a "good feeling" associated with doing so. Hansa reports in a study on green technology marketing that only 11 percent of participants have not experienced an emotional benefit from their decision to "go green." The BBMG report notes that consumers gave more weight to the environmental benefits of products in making purchases in 2008 than in 2007 in categories including energy efficiency, being grown or made nearby, being all natural, certified USDA organic, and being made from recycled materials.
Green Gap
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Only 22 percent of consumers, as discovered in a study by marketing firm Cone, realize that the word "green" on the product label actually means "less harmful to" and not "good for" the environment. Cone's 2009 "Green Gap" study, found that consumers are overall too trusting of corporate environmental messages with 47 percent trusting companies to tell them the truth about the environmental impact of their products, 45 percent believing they do so accurately and 61 percent stating they understand the terminology used by companies in describing environmental terms companies use in making environmental claims.
The BBMG study had conflicting data, noting that only 11 percent and 5 percent of consumers trust environmental statements on product packaging and company advertising, respectively. The report noted that independent certifications of environmental claims and consumer reports are given more weight in making decisions than company claims.
The reports agree that gap between consumer's understanding of or willingness to believe environmental claims can result in "greenwashing," according to Mike Lawrence, executive vice president of corporate responsibility, Cone LLC. The term refers to companies who "spin" their products as environmentally beneficial to get more sales. The Cone report notes consumers should work to verify claims. BBMG advises companies to give authentic information and encourage consumers to share information to "close the trust gap."
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