Brands everywhere are promoting their sustainability to capture the attention of an increasingly engaged public. But caring about something and letting it influence their buying decisions are two different things. To what extent do these values influence how consumers buy?
Brands everywhere are touting their sustainability plans to capture the attention of an increasingly engaged public. Synthetic materials, overproduction, wasteful packaging and carbon emissions are the main concerns of buyers. But caring about something and letting it influence their buying decisions are two different things.
So how much do these values influence how consumers buy? A recent eMarketer/Insider Intelligence report, 2022 US Retail Sustainability Perception Benchmarks, addresses this topic.
According to analyst and report author Blake Roche, most of the people interviewed for the report said they purchased the products within the past six months due to some sustainability considerations. However, when it comes to actually making those buying decisions, we wouldn’t be surprised to learn that research has shown that sustainability is rarely the deciding factor. For example, shoppers rated various items (brands that don’t use synthetics, donate unused materials, and use minimal packaging) as “very important,” but when asked to choose their top three purchase motives, value, convenience, and “discoverability,” they scored higher. estimates.
Roche said on the August 17, 2022 eMarketer “Reinventing Retail” podcast, “Only 13% of respondents say that sustainable retail practices are a priority in the store, while 14% say they are the most important thing online.” “Compare this to ‘good value for money’ where 46% consider it a priority in store and 48% online. So while sustainability is important, in more practical matters it is worth much more.”
This does not mean that customers do not prioritize sustainability at all, or that they are not willing to pay any premium for organic products. It simply means that the relative impact of sustainability on their purchases and their tolerance for overpaying for these products is lower than in the past.
When do the elements of sustainability really influence purchasing decisions? When it’s things that buyers can see, feel and experience directly, such as minimal packaging, product/packaging recyclability, and the value that buyers see in resale or refurbished items. Meanwhile, some categories, such as organic, are suffering as consumers pay more for gas and groceries.
But don’t make assumptions about which consumer groups are most likely to let this influence their buying decision. While conventional wisdom suggests that younger consumers are most concerned about environmental issues, Insider Intelligence found that they are often less likely than older consumers to act on these concerns.
Roche explained that this may be partly because this group has the lowest purchasing power. “There is a feeling,” he said, “that it’s not my place to spend money on eco-friendly things – most of the responsibility lies with the companies that sell these products, because I can’t afford it.”
This attitude is also influenced by the view of young buyers that the problem is so big that their personal contribution is unlikely to change anything. Why pay more for something that won’t change anything anyway?
Given all this, how can retailers react? The study found that while not downplaying their sustainability messages, they were reinforcing value-based messages. So it’s not sustainability or value based messaging. These are the “and” of sustainability – both.
Despite this, retailers continue to push for green initiatives. For example, Roche cites the example of Walmart, which has announced its goal of zero waste in its US and Canadian operations by 2025, and to make 100% of its private label packaging recyclable by 2025. recycling, reuse or industrial composting. . (The current figure is 58 percent.) Walmart also announced plans to display recycling instructions on 100 percent of its packaging.
When people want organic food but don’t want to overpay, what then? The result is often “greenwashing” or when companies “tout environmental values as a marketing tool without taking discrete action to make any change,” Roche said. Buyers know that greenwashing is happening, which means that marketers can earn points for being transparent and detailed in their claims. support them.
To take another example of Walmart, the company doesn’t just talk about sustainability and make a commitment to the future, it puts its money into what it says. It supports its commitment to sustainability by creating community recycling centers at select Walmart and Sam’s Club stores in Oklahoma and northwest Arkansas, recycling items not accepted by most curbside recycling programs, including plastic food packaging, cosmetics packaging, and more. e. These are not just words – these are actions, and here we need to talk about the details.
All in all, this is an interesting podcast about interesting research with many insights into how brands sell and package their products. Worth a listen here.
Heidi Tolliver-Walker is a former print magazine editor and longtime industry analyst, content developer, writer and blogger. She’s been writing for leading trade publications, research firms, and private companies for the past 30 years—so long that she still has an AOL address she registered when AOL was a cool address. You can reach her at [email protected ]
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Post time: Oct-21-2022