Digital Receipts Network

NRF Stores Magazine

Karen M. Kroll , December 2008

Just how green are your customers? It appears they may be more interested in the environment than many retailers realize. That's one of the conclusions of a recent study BIGresearch undertook in conjunction with the Boomer Project, an initiative of the Southeastern Institute of Research (SIR).

During the summer of 2008, about 5,300 adults answered a number of questions via an online platform. The survey quizzed respondents on a range of issues, including the environment, corporate responsibility and current events, although most questions focused on the environment. The survey marked the first time BIGresearch took such an extensive look at consumers' interest in this topic.

The respondents represented a solid cross-section of Americans: They were about equally split between men and women of all ages; about half were employed full- or part-time, 18 percent were retired; 63 percent were parents, and 36 percent were grandparents. The results were illuminating. Given that it's only been in the past few years that green topics have captured mass attention in the United States, "one of the things that surprised us was that people cared about this more than we thought," says BIGresearch analyst Dianne Kremer. >About 70 percent of respondents either agreed or agreed very much with the statement, "I am concerned about the environment." That's more than indicated that they value their faith and spirituality (68 percent) or are engaged in their community (31 percent).

Moreover, these respondents appeared to be quite mainstream. Fewer than 20 percent had seen the movie, "An Inconvenient Truth." Most (54 percent) drove cars; 16 percent were SUV owners. This suggests that retailers can proceed with and discuss their green initiatives without fear of seeming to be out on the fringe.

Defining "being green" To be sure, consumers still appear to be refining just what it is they mean by "being green." Some may consider themselves environmentally-friendly because they toss their newspapers in the recycling bin, while others wouldn't consider themselves green if they didn't drive hybrids, compost and buy recycled products.

Even so, retailers and other businesses need to "be aware that this is something consumers are looking for," Kremer says. "The data suggests that caring about the environment and being green " in stores and for companies that manufacture products " is increasingly important to consumers." Sixty-three percent said that it was either important or very important that the retailers they patronize care about the environment. That's about the same percentage that said they're concerned about retailers' being good corporate citizens (65 percent), although respondents ranked it below low prices (87 percent) and offering quality products and services (92 percent). Respondents said they hold corporate America responsible, to some degree, for protecting the environment. Sixty-three percent said businesses were very or somewhat responsible; that exceeded the percentages for faith-based institutions, governments and non-profit organizations. Only individuals (69 percent) were ranked higher.

At the same time, survey participants indicated some skepticism about others' claims to being green. \ Nearly two-thirds of respondents said that they thought others exaggerate the degree to which they're environmentally responsible - but only 12 percent agreed that they exaggerate the degree to which they act in an environmentally-responsible manner. Make reasonable commitments That suggests companies have to be able to back up their claims of environmental friendliness: Rather than simply jumping on the green bandwagon, they should consider the commitments they can realistically make and hold to them, Kremer says. And consumers aren't likely to pay more for products just because they're green. A few early adopters will pay a small premium for low-cost items, Kremer says, but their willingness decreases as the cost of the product rises. For example, one-third of respondents said they wouldn't pay a premium for an environmentally-responsible product costing about $75. More than half would refuse to pay a premium on larger products, such as cars.

Few consumers will purchase something they don't want or need just because it's green. "Don't be so excited about jumping on the green bandwagon that you lose sight of the actual product," Kremer says. Instead, retailers and manufacturers of consumer products still need to offer goods that consumers want, but try to design, manufacture, transport and offer those items in an environmentally-friendly way. "It's definitely something to pay attention to," she says, "but proceed with a little bit of caution."