An article appeared in the latest Brandweek concluding consumers are confused about what "green" means based on a national survey conducted by an advertising agency.
According to the article, the green market is not mature, despite the significant spending by companies to meet demand. Heavy investments are being made in assets, products, and messages but this spending seems inefficient given the low conversion to green products by consumers.
How do corporations make their dollars work harder? Understand the real consumer demand for green products by examining everyday routines and true motivations behind "going green."
Demand calculations today rely on what consumers think they would do, not what they actually do. Since most behavior is either not recognized, misinterpreted, or just forgotten, people have a hard time visualizing how new products would fit into their everyday lives. This is especially true for any product that requires behavior modification, a topic covered in a previous blog entry (Show vs. Tell).
Since most green products and messages focus on behavior modification, companies need to think twice about using self-reported data to predict sales. Given the number of green products entering the marketplace, the impact of an inaccurate demand estimate will be quite substantial and likely to result in common corporate behavior: the practice of doing anything to fill the gap during Q3 and Q4 of each fiscal year, including budget cuts, relying on "me-too" line extensions, and in the extreme case... layoffs.
Now is the time to understand the true demand for green products and the trade-offs that people are really willing to make by studying their everyday behavior. This will lead to better investment decisions and ultimately more revenue in the long-run.
Remember: talk is cheap and actions speak louder than words.
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