May 21, 2008

Consumers Buy Green. Do They Understand It?

By George Anderson

Green products are in high demand these days as many consumers seek, in ways big and small, to use their purchasing power to make the world a cleaner and healthier place to live.

According to a study by Mintel, the number of green products rolled out in 2007 was more than double the launches of similar items in 2005. Mintel is looking for 2008 to produce roughly 1,000 additional green items over last year’s total of 5,933.

Mintel found that 36 percent of adults claim to regularly buy green products, triple the number from 16 months ago. At the same time, the numbers of Americans who never buy green products went from 20 percent to 10 percent.

“We’re seeing the green movement rapidly transition from niche to mainstream,” said Colleen Ryan, senior analyst at Mintel, in a company press release. “Major companies have jumped onboard, promotional messages have changed, and the American public is increasingly looking at green products as a normal part of everyday life.”

Ms. Ryan said younger consumers are pushing the green numbers higher. Fifty-one percent of 18- to 24-year-olds report “regularly” purchasing green products. As a point of comparison, only about one-third of older adults said the same was true for them.

In another survey, this time by the research firm BuzzBack, consumers expressed a deep interest in environmental issues. More than half of U.S. residents agreed “the environment is the most important issue.”

Interestingly, even though consumers saw the environment as one of the day’s most important issues, only about one-third interviewed by BuzzBack were “familiar” or “very familiar” with the term sustainable.

“It’s this huge buzz term, but it’s such a client term,” Carol Fitzgerald, president of BuzzBack, told Brandweek. “So maybe there’s a disconnect with consumers.”

Lynn Dornblaser, director of CPG trend insight at Mintel, said consumers’ desire for green products and their lack of knowledge left them vulnerable to fraud. She told Brandweek about a paper towel that promoted itself as “100 percent cellulose.” All paper towels are 100 percent cellulose, she said and then added, “That’s like an orange juice saying ‘100% orange juice.’”

Discussion Questions: Is consumers’ apparent lack of understanding of terms such as sustainability an impediment to sales or does this lack of understanding actually enable marketers to more effectively move products branded as green? Do you see consumers becoming more savvy about green issues and conversely greenwashing activities or are they largely waiting on some other party (the media, government agency, etc.) to alert them when a marketer’s claims do not pass the smell test?

Discussion Questions

Poll

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Colin Jephson
Colin Jephson

Well done to Bernice. Anyone who thinks this is a fad will be surely surprised to discover in time that environmental awareness and concern is a major long term trend. Taking advantage of these changing customer motivations will be some products with dubious credentials; but their success with be short-lived, if at all.

Some people might think that when we look back in 10 or 20 years we will wonder “what was all that about?” I believe that we will have changed our behaviour (and buying habits) in many fundamental ways and many products will be enjoying the ride.

David Livingston
David Livingston

I think we all know this is just a fad for the profiteers. Buying green products will most likely make no meaningful difference except to the pockets of the companies promoting them. Companies that produce such products are praying on the good intentions of the buyers. Nothing wrong with that. That’s just good old capitalism.

David Biernbaum

Recently, I had the opportunity to have have some green tea with some consumer behavioral researchers and this is what I gathered from hearing their remarks. Caution, it’s not as green as you might like….

Green for better or worse has become significantly trendy which means that a large number of consumers will purchase green products as a “feel good” experience, provided that the product does not have any inferior qualities, and not more expensive. This large group of trendy green consumers are not overly concerned with the actual truth of how “green” the product actually is and therefore a growing number of brands and marketers are taking advantage.

Bernice Hurst
Bernice Hurst

It isn’t about fraud (Lynn Dornblaser) or profiteering (David Livingston) or even being trendy and feeling good (David Biernbaum) although life, people and the world will always include elements of all three. For most consumers, purchasing green products is really about good intentions and doing the best they (we) can to improve today and tomorrow for ourselves and each other. Sorry if that sounds too earnest but it is part of why it is painful and frustrating when those of us who spend most of our time trying to do the best and persuade others to do so, run across the people to whom Lynn, David and David refer. Confusion abounds and every time what appears to be a good idea starts to catch on, its underbelly is exposed and we start scratching our heads wondering where to turn next and whether there is really any point at all.

Comparing my middle aged, middle class semi-retired women friends with Nikki’s soccer moms, all I can say is that rather than being cynical, they are generally questioning and actively seeking ways in which to accommodate their good intentions with their capabilities. Perhaps we are less pressured, having waved our kids off and seeing grandchildren more or less at arms’ length but with a passionate determination to have some positive effect on the way they grow up and live long after we are gone.

Nikki Baird
Nikki Baird

I don’t know…I get the feeling that consumers are not necessarily as fickle as all that. Maybe younger consumers are a little more idealistic about green products, but on my block of classic “soccer moms” while there is significant interest in being more “green,” they’re not buying green products because they don’t buy into green claims–they’re too jaded. I think they would buy green if they felt they understood the nature of the claim and trusted it. But they almost feel like it’s better to not buy green at all than to support something that turns out isn’t as green as they thought it was.

For my part, it’s not even cynicism necessarily, it’s more wanting some kind of absolute measure. I’ll use an example from a TV show I saw recently, where they were “decorating green”–they had these pillows that were made from grasses that were cast off as part of some food manufacturing process, and the decorator on the show commented that the pillows were made by some African village and because they made these pillows, this grass didn’t end up in a landfill somewhere. That’s all fine and dandy, but what was the carbon footprint of that pillow, when you include what it took to get from that African village to some American’s living room? How green is that Prius when the carbon footprint to manufacture it is bigger than that of a Hummer–and it creates far more toxic materials to dispose of at the end of its life?

If someone can navigate those questions, I think we’ll be able to have a serious marketing discussion about green–and at least the soccer moms will buy it.

Dan Soucy
Dan Soucy

I believe the media driven frenzy to become “green” and save the earth from cataclysmic destruction, although based on false conclusions, will eventually diminish. In the meantime, many manufacturers are grabbing all of the “green gold” they can lay their hands on.

I received a press release from a company called American Biffy Company touting a brand new product called the “Biffy.” This is a device that attaches to the underside of your toilet seat. When you are done doing your duty, a simple press of a lever washes your bottom clean, thus saving tens of thousands of sheets of toilet paper every year.

The idea behind the marketing seems to be directed upon the emotional need to save the forests, and thereby the environment. Most of the advertising for green products follow the same course, and since there is no widely used standard of reference words, a good writer can make almost anything sound environmentally friendly.

My feeling is that if the industry wants to truly advance the issues of conservation and environmentalism, an effort needs to begin to provide instructive materials that can help the consumer weave their way through all of the slogans claiming to be “natural” or “environmentally friendly.” People have an innate need to be if not better than your neighbor, at least equal to them in every way. It’s easy to scam a consumer into buying something that really isn’t as it seems. I think it would be worthwhile for the advertising industry to take the lead in developing this set of standards. If the industry doesn’t police itself, then the government is sure to do so.

Ben Ball
Ben Ball

Sounds to me like we are dancing on the pinhead of the famous P.T. Barnum question, “Can you still fool some of the people some of the time?” Of course you can. And will they be angry when they discover (or are told) they have been duped? Sure they will! But will they still want to see the next elephant dance? Uh huh.

Andrea Learned
Andrea Learned

While green is certainly trendy and a lot of consumers don’t understand or know how to decipher eco claims yet, the writing on the wall is that they are interested in becoming educated. Brands have an opportunity to acknowledge this raised awareness and begin the process of figuring out their own approaches. A measured, deliberate, step-by-step path to becoming more sustainable (rather than some big ticket publicity stunt right away) will be key.

If you are investing in your customers over the long term, you’ll take this eco-aware movement, which is clearly still in “hot new trend” stages now, a bit more seriously for the future of your brand. Eventually, more consumers will question the “green-looking” label on the average product and demand a lot more proof.

Consumers may be at the very beginning of their green learning curves, but brands still have to play catch-up to serve them even at that level.

Mark Lilien
Mark Lilien

The #1 sustainability issue is energy and the #2 issue is recycling. Everything else, though it may seem important, is comparatively low-impact. The energy issue will be solved via high oil prices and technology. The recycling issue will be solved by the government, with Germany as the model for the world. Everything else is hard to focus on, creates dissent about what and how to measure, and isn’t as universal. Translation: the price of gas and bottle deposit laws have universal concern. Flax clothing and local produce don’t and won’t.

Mike Osorio
Mike Osorio

The green movement has hit its stride and become quite mainstream. There is a danger that it may become passé and our youth may move on to the next trend. However, I believe the trend is so powerful that corporations and governments will continue to drive universal acceptance of sustainability because of both social and profit based motivations. It is important to keep the teens and young adults engaged since they drive most innovation. Culling fraudulent products is important to ensure their engagement continues.

Odonna Mathews
Odonna Mathews

Manufacturers need to be very clear in what they communicate to consumers about “green benefits” of their products or trust in that manufacturer will be reduced over time.

11 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Colin Jephson
Colin Jephson

Well done to Bernice. Anyone who thinks this is a fad will be surely surprised to discover in time that environmental awareness and concern is a major long term trend. Taking advantage of these changing customer motivations will be some products with dubious credentials; but their success with be short-lived, if at all.

Some people might think that when we look back in 10 or 20 years we will wonder “what was all that about?” I believe that we will have changed our behaviour (and buying habits) in many fundamental ways and many products will be enjoying the ride.

David Livingston
David Livingston

I think we all know this is just a fad for the profiteers. Buying green products will most likely make no meaningful difference except to the pockets of the companies promoting them. Companies that produce such products are praying on the good intentions of the buyers. Nothing wrong with that. That’s just good old capitalism.

David Biernbaum

Recently, I had the opportunity to have have some green tea with some consumer behavioral researchers and this is what I gathered from hearing their remarks. Caution, it’s not as green as you might like….

Green for better or worse has become significantly trendy which means that a large number of consumers will purchase green products as a “feel good” experience, provided that the product does not have any inferior qualities, and not more expensive. This large group of trendy green consumers are not overly concerned with the actual truth of how “green” the product actually is and therefore a growing number of brands and marketers are taking advantage.

Bernice Hurst
Bernice Hurst

It isn’t about fraud (Lynn Dornblaser) or profiteering (David Livingston) or even being trendy and feeling good (David Biernbaum) although life, people and the world will always include elements of all three. For most consumers, purchasing green products is really about good intentions and doing the best they (we) can to improve today and tomorrow for ourselves and each other. Sorry if that sounds too earnest but it is part of why it is painful and frustrating when those of us who spend most of our time trying to do the best and persuade others to do so, run across the people to whom Lynn, David and David refer. Confusion abounds and every time what appears to be a good idea starts to catch on, its underbelly is exposed and we start scratching our heads wondering where to turn next and whether there is really any point at all.

Comparing my middle aged, middle class semi-retired women friends with Nikki’s soccer moms, all I can say is that rather than being cynical, they are generally questioning and actively seeking ways in which to accommodate their good intentions with their capabilities. Perhaps we are less pressured, having waved our kids off and seeing grandchildren more or less at arms’ length but with a passionate determination to have some positive effect on the way they grow up and live long after we are gone.

Nikki Baird
Nikki Baird

I don’t know…I get the feeling that consumers are not necessarily as fickle as all that. Maybe younger consumers are a little more idealistic about green products, but on my block of classic “soccer moms” while there is significant interest in being more “green,” they’re not buying green products because they don’t buy into green claims–they’re too jaded. I think they would buy green if they felt they understood the nature of the claim and trusted it. But they almost feel like it’s better to not buy green at all than to support something that turns out isn’t as green as they thought it was.

For my part, it’s not even cynicism necessarily, it’s more wanting some kind of absolute measure. I’ll use an example from a TV show I saw recently, where they were “decorating green”–they had these pillows that were made from grasses that were cast off as part of some food manufacturing process, and the decorator on the show commented that the pillows were made by some African village and because they made these pillows, this grass didn’t end up in a landfill somewhere. That’s all fine and dandy, but what was the carbon footprint of that pillow, when you include what it took to get from that African village to some American’s living room? How green is that Prius when the carbon footprint to manufacture it is bigger than that of a Hummer–and it creates far more toxic materials to dispose of at the end of its life?

If someone can navigate those questions, I think we’ll be able to have a serious marketing discussion about green–and at least the soccer moms will buy it.

Dan Soucy
Dan Soucy

I believe the media driven frenzy to become “green” and save the earth from cataclysmic destruction, although based on false conclusions, will eventually diminish. In the meantime, many manufacturers are grabbing all of the “green gold” they can lay their hands on.

I received a press release from a company called American Biffy Company touting a brand new product called the “Biffy.” This is a device that attaches to the underside of your toilet seat. When you are done doing your duty, a simple press of a lever washes your bottom clean, thus saving tens of thousands of sheets of toilet paper every year.

The idea behind the marketing seems to be directed upon the emotional need to save the forests, and thereby the environment. Most of the advertising for green products follow the same course, and since there is no widely used standard of reference words, a good writer can make almost anything sound environmentally friendly.

My feeling is that if the industry wants to truly advance the issues of conservation and environmentalism, an effort needs to begin to provide instructive materials that can help the consumer weave their way through all of the slogans claiming to be “natural” or “environmentally friendly.” People have an innate need to be if not better than your neighbor, at least equal to them in every way. It’s easy to scam a consumer into buying something that really isn’t as it seems. I think it would be worthwhile for the advertising industry to take the lead in developing this set of standards. If the industry doesn’t police itself, then the government is sure to do so.

Ben Ball
Ben Ball

Sounds to me like we are dancing on the pinhead of the famous P.T. Barnum question, “Can you still fool some of the people some of the time?” Of course you can. And will they be angry when they discover (or are told) they have been duped? Sure they will! But will they still want to see the next elephant dance? Uh huh.

Andrea Learned
Andrea Learned

While green is certainly trendy and a lot of consumers don’t understand or know how to decipher eco claims yet, the writing on the wall is that they are interested in becoming educated. Brands have an opportunity to acknowledge this raised awareness and begin the process of figuring out their own approaches. A measured, deliberate, step-by-step path to becoming more sustainable (rather than some big ticket publicity stunt right away) will be key.

If you are investing in your customers over the long term, you’ll take this eco-aware movement, which is clearly still in “hot new trend” stages now, a bit more seriously for the future of your brand. Eventually, more consumers will question the “green-looking” label on the average product and demand a lot more proof.

Consumers may be at the very beginning of their green learning curves, but brands still have to play catch-up to serve them even at that level.

Mark Lilien
Mark Lilien

The #1 sustainability issue is energy and the #2 issue is recycling. Everything else, though it may seem important, is comparatively low-impact. The energy issue will be solved via high oil prices and technology. The recycling issue will be solved by the government, with Germany as the model for the world. Everything else is hard to focus on, creates dissent about what and how to measure, and isn’t as universal. Translation: the price of gas and bottle deposit laws have universal concern. Flax clothing and local produce don’t and won’t.

Mike Osorio
Mike Osorio

The green movement has hit its stride and become quite mainstream. There is a danger that it may become passé and our youth may move on to the next trend. However, I believe the trend is so powerful that corporations and governments will continue to drive universal acceptance of sustainability because of both social and profit based motivations. It is important to keep the teens and young adults engaged since they drive most innovation. Culling fraudulent products is important to ensure their engagement continues.

Odonna Mathews
Odonna Mathews

Manufacturers need to be very clear in what they communicate to consumers about “green benefits” of their products or trust in that manufacturer will be reduced over time.

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