Pulse Legacy Archive March / April 2013 | Página 44

ASK THE EXPERT TIMOTHY KENYON We’ve all heard consumers demand companies to be more socially responsible, creating products with less waste and free of ingredients that are toxic both for the body and the environment. Yet, despite consumers’ interest in earth-friendly products, the question remains: Are today’s consumers willing to pay more for green products? Pulse asks GfK’s Director for the Green Gauge Global study, Timothy Kenyon, to give us the hard facts. Pulse: What distinct consumer behaviors and preferences have you seen in different parts of the world, especially among emerging markets? Kenyon: Green attitudes and their resulting behaviors vary widely from country to country and between the developed and emerging markets. These differences have a direct impact on how companies should do business around the environment. For example, infrastructure plays a huge role in how people engage with environmental issues and the types of products they demand. So, for example, many countries in the emerging world do not have access to recycling facilities; for these regions, it will be more important for a product to be manufactured with minimal or reusable packaging, rather than recyclable. P: In which parts of the world are consumers more willing to pay for green products? K: Around the world, consumers with more disposable income than average are generally more likely to pay for green alternatives. That said, consumers in North America and Western Europe, where there are higher than average incomes, tend to be the most critical of expensive pricing. The marketplace for green products in the developed world is more mature, and as a result, consumers are more critical. needs—specifically, how can your product help consumers save money in the long run, or how is it better for their health? For instance, despite higher purchase prices, energy efficient light bulbs have resonated with consumers because they reduce energy bills. In addition, organic products have been able to weather the economic downturn because consumers see these products as better for their health. P: Apart from cost, what were the other identified barriP: With price a major factor, what can green-friendly companies do to help address the issue of steep price perception? K: Focus on the product benefits that fulfill basic consumer 42 PULSE n March/April 2013 ers or challenges in encouraging consumer advocacy toward green products? K: Cost is by far the largest barrier, but other roadblocks include quality, transparency, and access. Many consumers