A recent
Yahoo! study found that 77% of consumers identify themselves as
"green." But only 57% claim to have made any green purchase in
the past six months.
Original post date: 6/8/09
The
Yahoo! study's results may have been skewed by an
unrepresentative sample. They queried residents of
New York, Chicago
and Portland
only. (And Yahoo's relatively small – 17.6% – share of
search traffic might also have compromised statistical
validity.)
Skewed or not, the 20 percentage point disparity between
consumers calling themselves green and those who made
even one green purchase in the last six
months is telling.
And
that 20-point gap may be optimistic. A
StanfordUniversity study found
that only 33% of people are ready to make eco-friendly
purchase decisions.
Two
of the most popular green consumer ranking systems may
help clarify the dichotomy between the significant
majority of adults who proclaim themselves to be
eco-friendly consumers and minority who actually are:
The Natural Marketing Institute's
lifestyle segmentation provides an interesting model of
consumers' attitudes and actions on
environmentally-influenced purchase decisions:
LOHAS
(lifestyles of health and sustainability) –
environmentally engaged and involved, they buy green
even if the products are more expensive: 16% of total
population.
Naturalites
– use natural products because of a perception of
health/wellness benefits: 25%.
Conventional
– want green products that save them money in the long
run (such as compact florescent bulbs and high
gas-mileage cars): 23%.
Drifters
– not very concerned with environmental issues: 23%.
Unconcerned
– environmental considerations don't enter into their
purchase decisions: 14%.
Mediamark Research & Intelligence's
study defined six categories of consumers'
environmentally-related beliefs and actions:
Green Advocates
– Environmental impact is a significant – often the
most significant – factor in brand choice. They are
also environmental activists/evangelists.
Green At Their Best
– Environmental impact is significant. They choose
green brands even if they're more expensive or less
convenient.
Green But Only If
– They think and act green, but not if choosing a
green brand costs more or is less convenient.
Green In Theory
– They talk the talk but don't walk the walk.
Green At The Supermarket
– They buy organic foods, but more because of health
and wellness concerns than for environmental
considerations.
UnGreen
– No interest in environmental products or issues.
MRI
found some interesting – and occasionally counterintuitive
– demographic correlations to these psychographic
profiles:
Millenials
(b. 1997-1994) were disproportionately UnGreen. They
were 18% more likely than the norm to be UnGreen.
Older people
were the greenest. Boomers (b. 1946-1964) were by far
the most active Green Advocates, at 28% above the
norm. Pre-Boomers (b. before 1946) were the most
likely to be Green At Their Best, at 14% over norm.
GenXers
were the most likely to be Green at the Supermarket,
at 6% more than the norm.
National Geographic
recently released their annual Greendex survey, and
America
was firmly ensconced in last place among the eighteen
nations surveyed. Large developing nations, like
India
and
Brazil, dominated the top
spots. That may simply indicate that their people cannot
afford the automobiles, energy use and solid waste which
are within the means of people in more developed
countries. But even among developed nations, we're dead
last.
Apparently, despite our professions of environmental
concern, we don't do much about it.
One
reason for this disparity was pointed out by Joel Makower
in an "eartheasy" posting: "Though polls tell us that most
consumers prefer green products, the polls are misleading:
they fail to ask the right questions. If I pose a question
as a green versus ungreen choice...the answer is obvious:
everyone prefers the greener choice. But if you probe
deeper into consumer attitudes, the real answer is that
consumers will choose the greener product
if it doesn't
cost more, comes from a brand they know and trust, can be
purchased at stores where they already shop, doesn't
require a significant change of habits to use and has at
least the same level of quality, performance and endurance
as the less-green alternative."
Makower's estimate of the green marketplace is
significantly lower than the 64% total of LOHAS,
Naturalites and Conventionals in the Natural Marketing
Institute's matrix; lower than the 57% claimed in the
Yahoo study; and even lower than the 33% in the Stanford
research. Makower estimates green consumers – those who
regularly seek out and buy green products regardless of
how much more they cost or what lengths to which one must
go to find them – at 10% to 12% of the total.
That
number is reinforced by The Hartman Group, a Washington state research firm. Their studies
estimate green consumers at 13%.
That
small base of truly green consumers presents a marketing
and communications challenge.
At
first it might seem that a green claim couldn't hurt,
since about three-quarters of consumers pay lip service to
the idea of buying green products. But an article in the
January, 2008,
Harvard Business Review refutes that concept.
According to
"Don't Bother with the 'Green' Consumer,"
marketers should choose between an environmental appeal
targeted to the small green consumer core group or a more
generic claim aimed at a broader population. Their
findings were that environmentally-targeted claims are
relatively ineffective toward the population as a whole.
Our
conclusion is that marketers must decide whether they want
to capture a smaller core green group – who can probably
be turned into fanatic supporters of a brand that promises
and delivers green benefits – or use a more "What's in it
for me?" approach to go after the much larger group,
peripherally green consumers. Either approach can be
effective, but you can't have it both ways.
At least not
until America
catches up with France
and Russia in
environmentalism.
To learn
more about environmental marketing and communications click
here
or call us at 865-330-0033.
Next
week: Green? Prove it. Consumers are skeptical and
confused about green claims.