November 20, 2007
Consumers Demand Companies Walk Their Green Talk
by Anne Moore Odell
The growing number of consumers who identify themselves as "conscious" creates more opportunities
for sustainable companies.
Companies who have jumped on the "green" bandwagon have to support their green marketing by
improved transparency and verifiable environmental and sustainable products, according to the newly
released "BBMG Conscious Consumer Report." BBMG,
a marketing agency that specializes in working with socially minded organizations, found that
consumers are becoming more conscious of the environmental and social impacts of the companies
whose products they buy.
The report, written by BBMG principals Raphael
Bemporad and Mitch Baranowski, states that almost nine out of ten Americans surveyed identify
themselves as "conscious consumers." If offered products of equal quality and price, conscious
consumers are more likely to buy products from companies that are committed to environmentally
"Consumers are hungry for more information about the products and
services that they choose in their lives," Bemporad told SocialFunds.com. "They want companies to
be transparent about product attributes and ingredients, and honest about their impact on the
environment and society. I don't think consumers expect perfection, but they do demand honesty.
They will reward companies that are making sincere efforts to do the right thing and take concrete
steps in the right direction."
Consumers would also chose products that support fair trade
and labor practices and that endorse health and safety benefits.
However, BBMG's survey
also points out the disconnect between the consumers' ideals and their real world purchases. BBMG
divides US consumers into the "Enlighteneds (10% of consumers), Aspirationals (20%), Practicals
(30%) and Indifferents (40%)." The Enlightened are driven by their values and go out of their way
to purchase from companies whose missions they agree with, while the Indiffernents aren't motivated
by social issues at all and instead are motivated by price and convenience.
combines surveys of more than 2,000 adult Americas with ethnography--in-depth field research and
interviews--on the issues of conscious consumers. The ethnography was based on interviews and
observation of 24 diverse consumers in Lawrence, KS; Long Island, NY; and around Livermore, CA in
August 2007. BBMG joined with research partners Bagatto and Global Strategy Group to complete the
The report's ethnography found five core values that motivate the "conscious"
consumer: convenience, doing good, health and safety, honesty and relationships.
of factors are influencing the "conscious boom" Bemporad explained, from Al Gore's "Inconvenient
Truth" to the rise in green content by virtually every consumer and business publication and
program, and the popularity of green festivals across the nation.
"Also, at a time when
many people feel that world events are beyond their control, consumers are looking to leverage
their dollars to make a positive impact on society," Bemporad added.
Consumers can name
which companies have done the most for the environment. At the top of the list is Whole Foods who
was picked the most socially responsible company by 22% of those surveyed. Other companies named
were Newman's Own, Wal-Mart, Burt's Bees, General Electric, Johnson & Johnson and Ben & Jerry's.
Interestingly, people had an easier time labeling themselves as "conscious consumers,"
"socially responsible consumers" and "environmentally-friendly consumers" than they did calling
themselves "green" consumers. BBMG's report says that the "green" label is seen as "more
exclusive." Perhaps, too, it has to do with Americans discomfort with labeling groups by colors
with its racial and political connotations.
Fifty-eight percent of those surveyed said
that price was a very important consideration when making a purchase and 66% answered the quality
of the product was very important. However, BBMG points out that convenience of the product--34%
said was very important-has been over taken by socially conscious consideration such as where a
product is made (44% very important), how energy efficient it is (41% very important) and its
health benefits (36% very important).
Not surprisingly, those surveyed put personal
issues above global issues as the ones that they cared about the most. Clean drinking water and
clean air took first place as the most important issues over the global issue, climate change.
Consumers are more willing to engage in "easy" behaviors, such as recycling cans, bottles and
newspapers (55% always) and using energy efficient appliances (46% always), but they often fail to
adopt a plethora of more "demanding" behaviors like carpooling (10% always), using public
transportation (9% always) or purchasing carbon offsets (3% always).
investors remain a minority. BBMG's survey found with only 11% of those surveyed always investing
in mutual funds or stocks of companies that maintain high ethical and social standards and 46%
never buying them.
In conclusion, Bemporad said, "At the end of the day, we believe that
when you align your values with your actions, great things can happen. 'What companies bring to
market will be less important than "how" they bring their products and services to market. The
market will be driven not just by commodities, but by values and human relationships."
"America's consumers will reward companies that back their eco-friendly words with socially
responsible actions. The paradigm is shifting from driving transactions to building enduring
values-based relationships," he added.
BBMG's research is backed up by research released
earlier this year by the marketing group egg which
found that conscious consumers make up to 70% of the overall US marketplace, and can be divided the
consumers who say they are conscious and the one who actually back up their statements with buying
behavior. egg's research finds that between 7% to 20% of buying population, the "Advocates," back
up their beliefs with what they buy, while 36% of people, the "Skeptics," don't embrace conscious
or social products.
BBMG suggests three insights for companies and marketers from its
research. The first is that consumers want to trust the products they buy and feel like they have a
relationship with "brands." Second, consumer consciousness is "self-centered" and companies that
offer personal health and care products that are sustainable and affordable do well. Lastly,
companies that can accomplish "small steps" toward sustainability can make big inroads with
Although it surveyed a very small number of US citizens, this report
still offers interesting insights for companies, especially companies who offer retail brands. US
consumers have high ideals concerning the environment and social issues, and expect companies to
live up these ideals even as the consumers don't always practice what they preach themselves.
SRI World Group, Inc. All Rights Reserved.