Decline in Consumer Confidence in “Green Products and Services”?

[Karl]

On the general topic of consumer choices relating to "Sustainable Lifestyle" – the findings of a recent survey are very interesting.

According to the survey: Consumers will pay for green products but are more sceptical | CorporateResponsibility.Net

QUOTE:
According to a green survey from Rackspace Hosting (PDF), 44 percent of respondents are willing to pay more for green products and services this year; down significantly from the 59 percent of respondents that were willing to pay more last year.
…
“It’s interesting to see that customers still think green is very important, but today they may be less willing to pay more or trade performance for lower carbon emissions.

So, assuming that the results of the survey are valid, the question remains as to the significance of the trend: consumer willingness-to-pay higher prices for “green products and services” dropping from 59% (last year) to 44% (this year).

Does this represent a lessening of consumer concern for the major issues of environmental uncertainty (weather / climate), food prices, energy crisis, etc.? Or could the cause be related to an increased cynicism or skepticism related to other developments like all the mega-corporations that are suddenly “going green” for profit?

Those corporate eco/green self-labellers are, of course, in direct contrast to organizations that sell these products and services to support environmental initiatives/activities. If the on-going proliferation companies that have made the transition from {major polluters} to {green washers} to {green profiteers} are a main contributing factor to a loss of consumer confidence that would be unfortunate, since many smaller companies with genuine motives have been actively involved in promoting and expanding the market space for green/ethical/organic products and services for many years...

[Karl]

Marketing of 'green' loses some buzz and credibility

The International Herald Tribune, July 7, 2008

Over the past year, marketers around the world have jumped onto the green bandwagon. But the sheer volume of environmental advertising and the flimsiness of the claims in some of the campaigns show signs of generating an unintended effect. Instead of serving as a call to action or casting brands in a positive light, these ads are generating an increasingly skeptical response.

''After 18 months, levels of concern on any issue tend to drop off,'' said Jonathan Banks, business insight director at Nielsen, the market research company, in Britain. ''I fear that something similar may happen with this.'' With everyone - from oil companies to dishwasher makers to banks - promoting environmental credentials, consumers have been deluged in green-linked advertising and consumer complaints have risen.
...
Agencies are also trying to work their way around consumer skepticism as they devise strategies for clients. Mike Lawrence, executive vice president of corporate responsibility at Cone, a brand strategy agency in Boston, said some consumer concerns may stem from the way in which many green-themed ads are done, rather than any objection to associating brands with an environmental message. "There's a gap between what the marketers are doing and what consumers are receiving," he said. "The marketers may not realize the gap is there, and that's a dangerous thing".

The problem, he said, occurs when marketers make exaggerated claims about a product's attributes, which may be fine when selling toothpaste or vacations. Most people probably know that the toothpaste won't actually make their teeth sparkle or help them get the girl, but they play along with the joke. But when an advertiser says its product will actually ''improve the environment,'' or some variation on that theme, savvy consumers recoil, Lawrence said, knowing that, in all likelihood, what is actually meant is that the product is only less bad for the environment than it could be, or than competing goods. ''This can really backfire with environmental advertising,'' Lawrence said.

Read Full Article: World Business Council for Sustainable Development (WBCSD)

[natureguy]

Some interesting issues discussed here...

There was a time, and it was pre-Al Gore, when buying organic meant eggs and tomatoes, Whole Foods and farmer's markets. But in the past two years, the word has seeped out of the supermarket and into the home store, into the vacation industry, into the Wal-Mart. Almost three-quarters of the U.S. population buys organic products at least occasionally; between 2005 and 2006 the sale of organic non-food items increased 26 percent, from $744 million to $938 million, according to the Organic Trade Association.

Green is the new black, carbon is the new kryptonite, blah blah blah. The privileged eco-friendly American realized long ago that SUVs were Death Stars; now we see that our gas-only Lexus is one, too. Best replace it with a 2008 LS 600 hybrid for $104,000 (it actually gets fewer miles per gallon than some traditional makes, but, see, it is a hybrid). Accessorize the interior with an organic Sherpa car seat cover for only $119.99.

Consuming until you're squeaky green. It feels so good. It looks so good. It feels so good to look so good, which is why conspicuousness is key.

MORE

[Karl]

The recent reports of increasing consumer skepticism are not surprising, but it sheds some new light on the article in this post from ~2 months ago: Business Leaders Discuss Profitable Green Technology

Originally Posted by Karl

By Jordan Penner – May 12, 2008

Business leaders gathered at a lush, privately owned island resort in the Caribbean to talk about business and investment plans with a focus on environmental friendliness...Rising oil prices and the concern over global warming are making green technology profitable. Those assembled on the island discussed how to save the world and get rich doing it.

Source: BC :: Collegian: Environmental news from around the world

While the trends of rapidly diminishing "willingness-to-pay" among consumers for higher prices of many of these dubiously "green/eco labelled" products and services is not at all unexpected, it is somewhat surprising that these presumed "business leaders" were up to so recently, still naively buying into the idea that some sort of jackpot for their "green falsehood" was awaiting them...

[natureguy]

Actually most of the green products can be/are produced at much lesser costs that the mainstream products. Companies are trying to cash in on the current "Green" Boom.

[Karl]

Some further discussion related to this topic: CSR Skepticism high because of Greenwashing | CorporateResponsibility.Net

QUOTE
“…It is therefore not only important for companies to make their CSR values known and aligned to the consumer; it must be done authentically to promote trust in the brand, NMI says. While many consumers remain unsure of the details, the corporate world does, as a whole, appear to be making some progress…”

Full Article: Corporate CSR Skepticism Fueled by ‘Greenwashing Washout’ · Environmental Leader · Green Business, Sustainable Business, and Green Strategy News for Corporate Sustainability Executives