Bangkok--9 Mar--Synovate
It goes without saying that in this age of media proliferation, consumers are constantly being bombarded with messages on ‘green’ and sustainable living to a degree previously unimaginable. Though many try to make a distinction between "green" and "sustainable" living, the two words are often used interchangeably. But it is not so much of a question of terminology but rather what this concept ‘really’ means to consumers and what they actually do about it. Companies are regularly trying to understand: "Are consumers ready to go beyond just energy-efficient light bulbs?", "Which categories present the most attractive opportunities for green products and/or services?", and "How strong is using a green selling proposition now compared to some years ago?"
Based on a preliminary survey conducted by market research firm Synovate in Thailand on "Sustainable Living Amongst Bangkokians" in September 2010, 74% of the local respondents said that environmental issues (i.e. global warming, climate change, etc.) are considered the #1 problem in terms of global importance and urgency, followed by the economy at 64%, and the cost of energy/fuel at 35%. However, the same question was then asked on a national scale (i.e. Thailand only), which revealed that environmental issues only came in at fifth place at 24%, trailing behind political problems (70%), economic problems (64%), education (49%), and poverty at 32%. So, what is the market implication here for companies looking to talk green?
Given that the awareness level of the problem is at 70%, environmental issues have arguably made it to the consideration set of most consumers. Yet, two main barriers exist. First, there is the issue of personal effort. Findings from the afore-mentioned survey also revealed that whilst personal intention to reduce the negative impact on the environment was as high as 73% (Top two boxes based on a five point rating scale from strongly agree, somewhat agree, neutral, somewhat disagree, to strongly disagree), and recycling behaviors for their own consumption of packaging materials (e.g. water bottle, paper box, newspaper) was 70%, only 25% of these respondents preferred to buy used, pre-owned, or recycled products as opposed to buy new. In simple terms, people do evaluate their choices. If it is going to cost them a lot of time (i.e. search time) and money (i.e. switching cost), then surely it will have a negative impact on their actual behavior. To echo such findings, 80% of people surveyed confirmed they were willing to pay more for the energy-saving products as long as it would save them money over the product's life due to lower energy costs!
Second, there was a category-specific issue as far as the relevancy of the green concept is concerned. Among many energy demanding products, consumers surveyed revealed that the top five items they own are a refrigerator at 95%, computer (92%), laundry machine (87%), air conditioner (78%), and water heater (56%). Surely, it is going to be more sensible to tap into these specific priority categories with a value proposition around savings (functional) and being environmentally-friendly (emotional) than other products. Studies have shown that the more relevant (or ‘higher involvement’ as marketers call it) a product and/or service is to consumers, the easier it is for consumers to consider, adopt, and engage with brands. What we have witnessed, though, is different degrees in the success and adoption rate of the green concept in these categories, just to name a few.
All things considered, the green concept still has a long way to go. Given the continuing high interest in the topic, the focus should be on making the most out of the buzz. In the simplest terms, there is no safer bet than to constantly turn consumer insight into products and/or services that enhance their value in the way that is as relevant and least painful for consumers as possible.
For more information please contact:
Dontacha Tipcharndumrong (Joyce)
Synovate (Thailand) Limited
Tel: 02 237 9262, 081 938 9850
Email:
[email protected]