In search of the elusive Green Shopper

There are two types of people in the world - those who divide people into groups and those who don’t. In marketing, the practice of customer segmentation is important. It helps make sense of the complexity in the way decisions are made, especially in purchasing. Often, dividing people into four or five groups makes problems seem more manageable. I personally like the five point scale that TerraChoice has come up with, ranging from (RAW NUTZ) Righteous And Willing Nature Unspoiling Total Zealots at one end through to the rather harshly named (SCUM) Stubborn Comatose Undereducated Mainstream at the other end of the spectrum.

So, is there such a creature as a green consumer? Often the major criticism of market research on this topic is that what the consumer says on interest in green purchasing, is not what the consumer follows through at the check-out. The theory is that while the interest in environmental aspects of goods and services are high, other factors such as price, convenience, quality and brand have a higher influence on the ultimate decision.

The Australian Food and Grocery Council (AFGC) wanted to test this theory, and commissioned Net Balance Foundation (report available at www.netbalance.org) to undertake the research. The study, known as AFGC’s Green Shopper survey was conducted with 1000 Australian shoppers leaving four Woolworths supermarkets in Sydney and Melbourne.
The study found that despite 84 per cent of Australian shoppers saying they are concerned about the environmental impact of their purchasing decisions, only 13 per cent could actually point to a product they had purchased because of its environmental credentials.

“The results are surprising” says Ross Wyatt, General Manager of Net Balance Foundation. “There is a huge opportunity for Australian grocery producers, retailers, and government to work together to help consumers understand the environmental impact of the products they are purchasing. Consumers are confused and there is still more that can be done to help them buy better.”

The challenges for manufacturers include news that 27 per cent of respondents said to they would compromise on packaging to protect the environment, but only 6 per cent would give-up convenience. Thirty-six per cent of Australian shoppers are prepared to pay more for “green” products, the survey found.

The survey also found an overwhelming 93 per cent of people agreed that manufacturer and retailer efforts to reduce the environmental impact of products was “very important”.
AFGC Chief Executive Kate Carnell says providing and stocking more sustainable food and grocery products was a “whole of supply chain” responsibility in Australia, including farmers, manufacturers, retailers and consumers.
Net Balance’s Ross Wyatt says more work needs to be done to “close the widening gap” between “green intent” and “green action” by consumers.
Environmental and social externalities, beyond the law, are no one’s responsibility – it is collectively all of our responsibility. Otherwise, we risk destroying the systems that support us.

Terence Jeyaretnam is a Director of Net Balance (terence@netbalance.com), based in Melbourne.