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American consumers punish greenwashing practices, a survey says

“Nearly three-quarters of consumers (71%) will stop buying a product if they feel misled by environmental claims”

Two days ago an ECOFFEE prospect tried to convince us that sustainability is just a marketing word, and that consumers are not able to understand whether the retail product/store is really sustainable or it is just greenwashing.
We have already dealt with this kind of prospect – and many became enthousiast ECOFFEE customers and sustainability advocates. Data and market analysis are the only way to convince the sustainability skeptical about the counter effects of greenwashing practices.

That day, we showed to our prospect the Cone Inc. Trend Tracker recent analysis about U.S consumers and their behaviour towards greenwashing practices, dated March 24 2011.

Results are very interesting – and very motivating for those of us who believe in real sustainable business practices.
When consumers discover a claim to be misleading, they will take the following actions:

 

Three mock cleaning products were showed to consumers, who were asked to “purchase” the one they believed to be the most environmentally responsible. They were also required to indicate what they think the certification, claim or image on each package represents.
The results are as follow:

Another very interesting survey finding concerns the inaccurate interpretation by U.S. consumers when it comes to words such as “green” and “environmental friendly”. More than two-in-five Americans (41%) erroneously believe these terms mean a product has a positive (i.e., beneficial) impact on the environment. Only 29 percent understand that these terms more accurately describe products with less environmental impact than previous versions or competing products.
Last but not least, 59% say it is only acceptable for marketers to use general environmental claims when they are backed up with additional detail and explanation:
-23% say vague environmental claims should never be used.
-79% want detailed information readily accessible on product packaging.
-75% wish companies would do a better job helping them understand the environmental terms they use.

It is not necessary to add other comments to the above survey results, but if you are interested to know more, you can download the whole survey linking to the Cone Inc. website.

Does sustainability pays? Yes

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Whenever I talk with a client about sustainability, a question arises “Does sustainability pay?”. The answer is with no doubt YES! There are researches available online showing that when customers are offered a choice, they do prefer eco-friendly products and “punish” not so sustainable brands asking a much lower price. Obviously, what companies willing to invest in sustainability must understand is that a sustainable strategy goes hand in hand with a communication strategy – otherwise consumers will not perceive the added value during the purchasing process.

A recent survey conducted by the Uk consumer organisation “Which?” showed that between 74% and 96% of the people surveyed were unaware of the big names behind 10 popular ethical brands. And, once they found out, of those whose opinion changed, more had a negative reaction than a positive one. “Consumers are being misled,” said one respondent while another commented: “I feel conned.” One reason behind this negative reaction is that interviewed were worried about large companies being more concerned with profits than ethics.

What manufacturers must really understand is that consumers are willing to buy sustainable products but at the same time are going to punish any non-ethical behaviour by asking for a very reduced price. The future of retail and of sustainability lies in the ability of producers to understand this and to act accordingly.