Conscious Consumerism—Where Green Leads to Gold

One of the intriguing quirks of human nature is that we don’t necessarily do something simply because it’s good for us or for the community at large. We factor various—sometimes competing—values or goals and determine the relative merits of our options before making a decision. Often this happens instantaneously—the underlying values that govern our choices are so engrained we tend to act with little deliberate thought. In the marketing world, understanding and predicting how values, beliefs and goals affect consumer choices is like being handed the golden ticket. And when you’re looking at marketing eco-friendly products, which often come with a higher price tag than regular products, knowing what motivates people to practice clean-conscience consumerism is like being handed the green ticket. So how do we go about making conscious consumerism an unconscious choice?

Buying green: What’s in it for me?

Successfully marketing green products isn’t just about communicating the direct health and environmental benefits. Arguably it’s the indirect benefits that resonate more profoundly with the consumer market. Generally speaking, we often still desire things that give us elite social status and immediate gratification—but this has evolved somewhat in recent years. It’s become increasingly important for our status to reflect that we are socially responsible. And we want the things we buy to make us feel morally noble as we watch them slide along the checkout counter. Recent research reflects this trend in virtuous consumerism.

Giving the people something to feel good about

According to a study comparing data from 2009 and 2011 by Environics/Lipkin, a Toronto-based social-values research firm, the number of Canadians who wanted to find greater meaning in their lives increased by 54%. Over the same period, a desire to demonstrate social responsibility and contribute to one’s community increased by 49% and a wish to improve one’s health and vitality increased 40%. Mike Lipkin, president of Environics/Lipkin, explains, “More than in the past, today’s consumers want to be sustainable, both in terms of the environment and their own personal wellness.” In an American survey, Cone Communications Green Gap Trend Tracker found that 71% of Americans consider the environment when they shop and 45% actively seek out environmental information about the products they buy. The data points to a shifting trend whereby purchasing decisions are about more than just supplying a product that meets a simple demand. People are factoring in the value of products that make them feel good about themselves and their decisions. Having said that, cost effectiveness is still very important.

The new rules of supply and demand

A recent BrandSpark survey of shopping habits found that only 40% of Canadians say they’re willing to pay more for environmentally friendly products and more than 70% prefer manufacturers offer environmental benefits, but cover the associated production costs rather than passing it along to the consumer. The new demand is for affordable products that are functional, meet higher morally and socially responsible standards, and supply a feeling of self-fulfillment while contributing to the greater good. A tremendous opportunity exists for businesses that can figure out how to meet these needs.

There’s real value in having values

They key is as much about developing more cost-effective eco-friendly products as it is developing an authentic, value-driven brand that connects with consumers. Says Eileen Fischer, a professor of marketing and entrepreneurial studies at the Schulich School of Business in Toronto: “If a company is sincere, thoroughly and thoughtfully engaged in initiatives that are really integral to its values and those of its customers, it can be hugely significant.” Companies that successfully cultivate an authentic brand that connects to a conscientious lifestyle are more likely to convince consumers that an eco-friendly product has value, regardless of its relative price compared to regular products. For example, consider how the coffee market has evolved from a few companies marketing organic, Fair Trade products for which they charged a premium. Not only has the market for premium coffee skyrocketed over the last decade, but organic, Fair Trade options are ubiquitous and more often the standard rather than the exception. More than ever before, consumers are looking to companies whose values align with theirs, regardless of the product itself.

Consumer trends are changing and there’s real value—and major profit—to be made for those companies that are able to seize the green opportunities coming their way.