Are U.S. Consumers Driving Companies to Go Green?

Leslie Berliant

It depends on what percentage of consumers it takes for a company to pay attention. According to a new TNS global study, 23% of U.S. consumers are highly motivated by environmental issues in terms of their buying habits. While we could lament that 77% that are not highly motivated as Adweek has, perhaps we should focus on the influence that 23% of activists have had on corporate behavior. Granted, some of the so-called corporate environmental initiatives are green washing, but on the other hand, it is significant that just about every major company feels it must have and publicize its environmental initiatives.

A number of people are talking about making changes in consumption habits for the good of the environment more than they are actually doing them, but that doesn’t mean that companies can ignore the aspirations of people to do more. Nor can they ignore those who are already making choices based on a company’s actions. Conscious consumers continue to be a growing marketplace and market influencer. They spend upwards of $209 billion a year, according to Natural Marketing Insititute’s Research in 2005. That number has certainly grown over the last 3 years.

Similarly, a Gallup Poll from April 2008 reports that 28% have made major changes and 55% have made minor changes in lifestyle to try to help protect the environment. That means that 83% have made changes in response to environmental concerns. That is a number that corporations and marketers should take extremely seriously. Whether those changes are major or minor, the fact that they are in response to environmental concerns is significant. That Adweek chooses to spin this as “only 28% have made major changes” seems rather disingenuous.

Even for those that are not taking significant personal action, they are still demanding responsible behavior from corporations. According to a Cone poll, 85% of Americans will consider switching brands because of corporate irresponsibility. But the bigger problem may be that consumers misinterpret environmental marketing. According to another Cone poll from this past April, consumers often give corporations more credit for positive environmental practices than they deserve. At the same time, those very consumers would like more regulation of environmental messaging so that they can have more certainty.

Even for those that are not taking significant personal action, they are still demanding responsible behavior from corporations. According to a Cone poll, 85% of Americans will consider switching brands because of corporate irresponsibility. And a new Havas study in the U.S., U.K, Germany, France, Mexico and Brazil reports that 79% of consumers said they would prefer to buy from companies trying to reduce their environmental impact and 35% are willing to pay a premium to do so. The bigger problem may actually be that consumers misinterpret environmental marketing. According to another Cone poll from this past April, consumers often give corporations more credit for positive environmental practices than they deserve. At the same time, those very consumers would like more regulation of environmental messaging so that they can have more certainty.

Some keys to matching attitudes about the environment with practices seem to be reliability of the corporate action, ease of access and use, personal repercussions, reasonable cost and, in some cases, incentives to make changes. Veganism was a fringe until the vegangelicals that wrote Skinny Bitch made it about weight loss. Suddenly you had a book preaching veganism on the New York Times bestseller list. And when it comes to anything to do with health and safety, change tends to come more quickly as we saw with concerns about breast cancer and hormones in milk or we are seeing currently with Bisphenol A. The reality is that a very small number of vocal consumers can have a huge impact because for every person that speaks out about an issue or concern, the company assumes they represent hundreds more that aren’t the calling and letter writing types. And if the vocal types can push corporations to take more responsible environmental action, then all types win.

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  • Posted on May 24, 2008. Listed in:

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