Consumers Seeing Green but Eco-Challenging Brands to Show Their True Color

AMP Agency, an Alloy Media + Marketing company today released findings from "Green AMPlified”, a national survey of more than 3,000 consumers between the ages 18-49 conducted to unearth a solid understanding of the current state of "Green”, its meaning and impact on consumer’s lifestyle and purchasing behaviors and to provide vital learnings for marketers endeavoring to attract increasingly environmentally and socially conscious customers. The survey found that close to all American consumers (90%) believe that acting in an environmentally responsible way is important, but feel corporations hold most of the responsibility to implement change over their own personal efforts and are increasingly implementing eco-friendly evaluation into their product purchasing decisions. With additional qualitative research, the study produced strong reaction from consumers who feel corporate America needs to lead the charge with one respondent stating: "Consumers are going to buy things and they are not always aware of the environmental impact of the product they are purchasing. Thus, the company needs to make an effort to minimize their environmental impact because they are more aware of their impact.” – Patrick M. (45, Reseda, CA) The survey went on to state that over half (53%) of consumers factor a company’s social and environmental activities into their purchasing decisions and while overall, consumer’s personal actions to protect the environment show minimal sacrifice in terms of changing one’s lifestyle, consumers are ready to reward those companies that prove their commitment to the cause. In fact, after learning a company is environmentally friendly, the study found that 57% are likely to trust the company, 60% are likely to purchase its products, and 58% are likely to recommend the company or its products to others. "Our study aimed to uncover how the growing "Green” movement is impacting the way consumers perceive, evaluate and talk about companies and brands,” stated Anastasia Toomey, SVP, Consumer Insights, AMP Agency. "What became evident is that "Green” is redefining business as usual. Consumers are becoming more savvy and inquisitive, increasingly challenging companies and their green claims and efforts and demanding certain factors in exchange for their loyalty. But, with that also lies ample opportunity for brands to impact consumers in a positive way no matter what shade of green that customer may be.” It’s Not Always Easy Being Green Passing a consumer’s eco-test can garner a brand entry into a shopper’s mindset, but the study also found that just being green doesn’t mean green at the cash register. When it comes to purchasing green products over traditional ones, consumers put high demand on marketers with cost acting as the primary factor. When asked how much more (if any) consumers were willing to spend on green products, the results are significant, with over 75% of consumers stating that they were not willing to spend more than 10% to purchase a green product over a traditional choice in almost all of the categories offered. Product performance also factors into purchase decisions and most consumers are not giving green products a break. In fact, for consumers who consider performance important, it makes all the difference. In all product categories discussed, almost all consumers (90%) stated that a green product must work just as well as or better than a traditional product in order to make the switch. And while consumers do want to make a difference, they also want it to be convenient. Whether it’s the need to conserve as prices at the pump inflate or just ease, 63% are not willing to go more than 10 minutes to act green. Green It, But Mean It Consumers are demanding that corporations be part of the movement to protect the environment, but with green marketing messages flooding store shelves, they are also getting savvier or perhaps, more skeptical of the myriad of claims. Overall, consumers are expressing they don’t expect companies to be perfect, but they need to know that they care as much as they do and are making efforts to improve the state of the world - and can show it. So, where are consumers getting their cues? At the top, 40% of consumers stated that they learned that a company is environmentally friendly because of its packaging. However, 44% stated that they sometimes, but not often, believe the environmentally friendly claims on product packages. Based on follow up interviews, consumers shared their reasons for feeling skeptical of a company’s environmental claims, stating they think they are often unverifiable, overly generalized, or contradictory to other behaviors of the company. On the other hand, it appears consumers want to trust the companies behind the products and are simply asking them to be more explicit and transparent about their policies and to help educate the public on the benefits of their products and claims and how to participate in eco-friendly practices. One shopper stated, "I would like these companies to make their environmental policies more explicit to consumers; informing them how using their product benefits not only their own health and well-being but the collective health of the planet.” – Daniel G. (42, New York, NY) Consumers are raising their voices and brands are highly aware the effects one opinion may have. The study found that 40% of consumers are likely to speak out against a company when they learn they are not environmentally friendly. Conversely, earn their trust and they are more likely to spread that positive message to a wide network of family and peers. Close to half (49%) report that family and friends are the #1 trusted source when it comes to purchasing decisions, falling significantly higher than other methods reported such as advertising (31%) and twice as influential as product packaging (26%). The Perfect Shade of Green The study identified a robust group of consumers who are not looking to cast blame, but rather band together to make a difference. For these "Green Evangelists”, eco-practice is a way of life, and they wear it proud and say it loud. "Green Evangelists are more than just influencers. As a group they represent about 20% of our respondents. They are passionate about being green, eager to talk about it, looking for others like them and happy to educate those that aren’t. With the right message and earned trust, brands can see measurable benefit by leveraging the power of these persuasive consumers,” stated Toomey. Green Evangelists are twice as likely as the general market to purchase products from companies who state they support the environment, with close to half (49%) reporting doing so, and 63% are more likely to choose a green product over others. More than half of these passionate consumers are displaying eco-friendly actions such as buying organic (51%), unplugging appliances (53%), forgoing air conditioning (55%) and recycling (78%). These passionate consumers show they can be a brands best advocate should they succeed in grasping their attention and ultimately, their loyalty. 73% are encouraging others to act green and close to all (91%), agree that when they discover a new product that they like, they immediately tell their friends, compared to 82% of the total. This "greener” group also know their influence. 80% agree that they are the ones that their friends turn to for advice on the latest products and trends, compared to 66% of the total surveyed. I’m Guilty! The mindset of younger consumers surveyed appears to differ from their older counterparts when it comes to their decision to act earth-friendly. Whereas boomers responses were more tied to economical reasons, millennials actions were tied to environmental impact. Interestingly, this environmentally aware generation seems to carry more weight of the future of our world on their shoulders. Almost half (47%) report feeling guilty when they don’t take actions they feel are important and 50% state they feel irresponsible, a measurable disparity from the 33% of boomers who feel guilty when they don’t take action and the 34% who reported feeling irresponsible. Toomey added, "Our findings tell us "green” awareness is high with consumers as is awareness of actions they deem to be environmentally "right” or "wrong”. They’re aware of what they can do to make a difference and feel some guilt associated with not doing enough. But, among all respondents, it’s the companies they buy from who they still feel should lead the charge and have the power to impact global efforts for change. They feel they are only one person, but companies have the size and money to do more good. "For millennial consumers particularly, who report a greater sense of responsibility when it comes to acting eco-friendly, it’s evident that being green is a weighty issue. This powerful group of citizens appears to expect more of themselves in the green space and much more from the companies they will spend their money with.” Research Methodology Green AMPlified presents the findings of an online survey conducted among a national probability sample of 3,200 respondents of men and women between the ages of 18 and 49. The survey was designed to capture the opinions, beliefs, and perceptions of individuals in terms of their relationship with the Green Movement. This survey was completed during the period of April 17, 2008, and April 25, 2008, and was followed up with in-depth qualitative research, including shopping logs and respondent videos. The margin of error for a sample size of 3,200 is +/-1.73 percentage points, based on the principles of probability sampling theory. This survey follows industry best practices but, like all online surveys, does not strictly adhere to pure probability sampling methods. About AMP Agency AMP Agency (www.ampagency.com) is a full-service marketing agency that combines strategic planning, compelling creative, innovative execution, and measurable results to help our clients’ success and marketing dollars exceed the traditional. With a concentration on targeted lifestyle, life-stage, and mind-set marketing, AMP Agency makes Brand Experience an integral part of any marketing plan, as well as a lasting memory in the consumer mind. AMP Agency is the marketing agency within the Alloy Media + Marketing (NASDAQ: ALOY) family of companies.