What's driving consumers' "green" purchases?

Paul Schwarz

For most businesses, understanding consumers’ decision-making for products and services is key to attracting and keeping their customers. Demonstrating that a product benefits society (environmentally preferred products for example) and benefits the consumer personally (saving them time and money, for example) is increasingly a necessary marketing activity for companies, large and small. 

“Doing the right thing” is a popular catch phrase currently being used by businesses and consumers alike. Often the phrase is spoken in reference to “doing the right thing” for the environment. As a researcher interested in what drives or influences consumer decision making, especially purchase decisions, I see this sentiment as an example of an attitude, one of many that could influence how a person makes purchase decisions or engage in an activity.  


Other examples of attitudes related to the environment that could influence decision making include “I’m worried about climate change” or “I’m concerned about pesticides in my water supply.” Other attitudes likely to influence decisions to buy a product or participate in an activity include “It’s gotta be easy; otherwise, I don’t have time” and of course, “I’m on a budget; it’s gotta be affordable.” Fundamentally, attitudes help form a set of personal beliefs that people use to help them evaluate alternatives and make decisions.

Expected benefits drive consumer decisions

Another piece of the consumer decision-making puzzle is understanding the benefits expected as an outcome of a consumer’s decision. Building on the previous example, implicit in a person’s desire to do the right thing is an expectation that their decision will benefit the environment, as in “my decision to recycle is good for the environment.” More broadly, consumers that make choices based on their expectations regarding the environmental benefits of their decisions also expect their decisions to benefit society as a whole.  


In a marketing context, products are increasingly presented to consumers as opportunities to help the environment. For example, advertisements by office supplies stores for recycled paper include statements that buying recycled paper saves trees and reduces solid waste, both of which are societal benefits. And advertising for the much-vaunted Toyota Prius describes the environmental benefits of the vehicle’s reduced atmospheric emissions. In both instances, the positioning of these products is intended to tap consumer expectations that purchasing the product will result in benefits to society. 


Consumers also expect their decisions to benefit them personally. In other words, they want to know “what’s in it for them.” Referred to as personal benefits, sometimes they can be easily quantified, as is the case with Energy Star-rated appliances that promise to save consumers money through savings in energy costs. The financial savings of energy-efficient appliances can be easily quantified. The Toyota Prius also promises to save consumers money because of the vehicle’s fuel economy, which is another personal benefit that can be quantified. Moreover, in California, the Prius also promised to save consumers time because the state allowed solo drivers of highly fuel-efficient vehicles, such as the Prius, to use the commuter lanes on highways.

Feel-good products sell

Often, though, consumer expectations regarding the personal benefits of buying a product have less to do with being quantifiable or tangible and more to do with how it will make them feel afterwards. That is, there is an expectation that a decision will provide them with positive psychological benefits, which are not easily quantified. Yet, it can still be a powerful motivator that guides personal decision making. An expectation for personal satisfaction and “good feelings” (both positive psychological benefits) are frequently underlying people’s decisions to donate, for example, to charities and non-profit organizations. 


Of course, although it’s important to understand that the expected benefits of a decision can be personal or societal, or quantifiable or psychological, it’s also important to understand that the expectations surrounding a decision to buy or participate need not be mutually exclusive. The expectations regarding the benefits of a decision can and do include all of the above, as can the actual benefits. Choosing to recycle, for example, can provide societal benefits through a reduced waste stream, quantifiable personal benefits because hauling fees can be reduced when fewer cans of household garbage are dragged to the curb, and it can provide personal psychological benefits because, as a citizen, you can feel better about yourself because you are saving money and helping the environment. In other words, a single decision can yield all three types of benefits—a trifecta of benefits. 


So what does all this mean for organizations, businesses and marketers of green or environmentally preferable products or services that want to better connect with their members, customers, and prospects?  


First of all, it is important to understand that a consumer’s attitudes and expectations for benefits set up the context for making a decision, for taking action. Since very often there is a gap between what people say and what they actually do, especially regarding the environment, businesses are well-advised to better understand the importance of customers’ attitudes as well as their perceptions regarding the benefits they expect from products and services.  


Secondly, recognize it is possible to create a win-win opportunity in which both customers and the environment can be winners or beneficiaries. Finally, armed with these insights, you will be in a stronger position to engage with customers and prospects and build stronger connections between their desires and expectations and the actual benefits of your products or services, leading ultimately to follow-through and taking action.

Paul Schwarz is vice president for Sustainability Research and Green Market Insights at Hansa|GCR, a Portland-based full-service market research and advisory firm offering customized solutions for market opportunity assessment, product innovation, marketing impact and sustainable brand equity.