The research is coming in from many sources, and it is intriguing. I have been discussing the topic of consumer priorities with a professional in the industry via the web. I wanted to do a little research and find out if my perceptions were on target or totally off base. I was pleased to find plenty of information on consumer demand and what corporations are doing to fulfill those demands.
First I read a study from Ipsos Marketing. Like a good consumer, before sharing their findings, I looked them up and found they had a good reputation, so the data they present is reliable. They asked consumers the one area that companies needed to focus on when developing new feed products. The results were that consumers were more interested in fresh ingredients, additional health benefits, and more environmentally friendly packaging should be top priorities. Their data suggests that consumers are more interested in health, both of the body and the environment, than they are are in convenience or new and different. This information is derived from respondents around the world, not just the US or Europe. When asked to prioritize the #1 area to concentrate on, respondents averaged about 25% each for freshness, health benefits and enviro-friendly packaging. On the other hand, new and different products, convenient packaging and “quick and easy” each ranked at less than 6%. This reflects a big change over the end of the 1990′s.
Trends are showing that locally grown produce is the hottest thing in 2009, according to The National Restaurant Association. Whether that is due to taste, quality, value or environment has yet to be seen. I know that the people that I talk to on this point, say it is all of those things. Locally grown produce is simply better. It has a lower carbon footprint, is usually cheaper, and has the benefit of being fresher and better tasting. That means it falls into the concerns of the consumers mentioned above. Furthermore, the NRA says that restaurants are planning to invest some dollars in green initiatives. 40% of full service restaurants and nearly 30% of quick service will invest in green this year. Consumers are doing the same, but in a more concerned way. They are spending less on organics as food budgets have shrunk, but more in green areas that will save them money in the long run-like Energy Star appliances. Moreover, they will invest in simple things that can have an overall impact, like buying and using durable reusable shopping bags instead of plastic.
How do we really feel about the buying decisions that we make? According to a BBMG study, 77% of participants said that they believed that they could make a positive influence on the world by the buying decisions that they made. &2% have said they “punished” companies by not buying their products if they did not align with their core values. We are a mouthy bunch, too. 55% said that they have told others to buy products that were environmentally or socially responsible. Likewise, 48% told others to avoid companies whose practices they didn’t agree with. Furthermore, the internet gets that word around. 28% have said they post recommendations and reviews on blogs, message boards and social sites.
Deloitte paired with GMA to produce a report on Green Shopping Insights. Theis is the most comprehensive survey, as they interviewed over 6,000 shoppers at 11 major retailers. The report is a long 28 pages, but some of the key messages can be had in the executive summary:
Sustainability considerations either drive or influence the buying decisions of more than half the shoppers interviewed in our study. However, for most green shoppers, sustainability considerations are an important purchase driver, but secondary to other dominant purchase drivers. For most shoppers sustainable considerations become a tie-breaker when other factors are in relative parity. Because of this effect, sustainability characteristics drive a relatively large amount of product switching. Once a more sustainable product has captured the shopper’s commitment it tends to create brand stickiness by retaining the shopper’s loyalty through repurchase…
A significant minority of committed and proactive green shoppers are willing to pay more for green products, however, the larger potential population of shoppers that lean towards green want price and performance parity for sustainable products because it is not their dominant purchase driver…
We learned that there is an unfulfilled, latent demand for green products that could be realized through increased product development, in-store communication, and product availability.
The bad thing about surveys is that one can always wonder if responses are based on what the asker wants to hear. Regardless of the whys and whether or not consumers will actually do the things that they day they will, corporations believe they will. Companies across the globe are working hard to reduce emissions and provide more eco friendly products. Many grocery stores have begun reducing or eliminating plastic bags all together. Wal Mart has a goal to use 100% renewable power and be a zero waste company. They are reducing packaging in their supply chain and increasing recycling across the corporation. In fact, it has been said that to reduce shipping, Wal Mart is single-handedly responsible for the extra concentrated laundry and dish detergents that are available today. They are adding organic clothes and foods. They are expanding their seafood to be more sustainable. In some areas they are treating water and garbage in areas where there isn’t enough to begin with. Marks & Spencer is using 18% less packaging and food trays now have recycled content. DuPont is even giving awards for innovation in product packaging. All of this points to satisfying a savvy consumer with a demand for greener products.
Tags: buy local, environment, food, Go Green, Green Policies
