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Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without.

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Presentation on theme: "Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without."— Presentation transcript:

1 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Tim Herbert Senior Director, Research Consumer Electronics Association Going Green An Examination of the Green Trend and What it Means to Consumers and the CE Industry

2 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Methodology Quantitative The quantitative study was administered via Internet web form to an online national sample of 960 U.S. adults between September 19 and 27, The margin of sampling error at 95% confidence for aggregate results is +/-3%. Sampling error is larger for subgroups of the data. As with any survey, sampling error is only one source of possible error. This presentation also contains references to other studies conducted by CEA during 2008, including a study of teens and a study on CE reuse and recycling. Qualitative The research firm iModerate conducted 88 qualitative interviews with U.S. adults during the period September 19 – 27, As with focus groups, the findings reported are qualitative. As such, they should be considered directional and in no way serve as a substitute for quantitative data.

3 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green Awareness on the Rise?

4 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Understanding of Green Terminology Varies Familiar Unfamiliar Somewhat Familiar, Somewhat Unfamiliar Percent of adult consumers familiar with terminology

5 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Understanding of Green Labels/Logos Varies 82% 16% 15% 86% 45% 16% % of consumers that have seen the following logos

6 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Awareness of Green Offerings Highest for Grocery Store Items % of consumers that have seen or heard about green product offerings

7 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Cars Top List of Products for Greening Important Very Important 73% 71% 70% 65% 63% 47% 44% Products where consumers say its important to have environmentally friendly attributes

8 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Some Consumers Are Suspicious of Green Claims Agree Disagree Somewhat Agree, Somewhat Disagree The Cadillac Hybrid Escalade

9 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. 9 The Voice of the Consumer: What Does Green Mean? Green Confusion? A handful of respondents had either no association with the term green (mostly those over 65) or who felt it was a marketing ploy to get consumers to pay more for products that may or may not be better for the environment. Not sure what green is or what it means to me. - Male, 65+, White/Caucasian I have no clue I dont know anything about it. - Male, 45-49, White/Caucasian Its all a hoax, and a money grab. This country is more environmental then anyone, yet we are looked at as causing the worlds trouble in pollution…I'm not interested in this containing FAD. I don't want raw processed liquids that harm dumped in our waters but the people are being fooled. - Make, 50-54, White/Caucasian

10 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green Behaviors and Attitudes

11 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Understanding Green Attitudes Agree Disagree Somewhat Agree, Somewhat Disagree

12 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. 12 Teens & Green Ages

13 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Frequency of Green Behaviors Varies Always Usually Sometimes Rarely/never 87% of consumers say its important to recycle electronics compared to 78% in Consumers recycling TVs, computers and VCRs at a rate 26% higher in 2007 than in 2005.

14 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. 14 Females Males Based on self-report actions: 17% of teens are very green 71% are moderately green 12% are not green at all Teen Behaviors: Room for Improvement

15 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Overall Environ- mentally Conscious Green CE Attributes Important Plan to Purchase Green CE Over Next 12 Months Pay all or some bills online59%63%64%66% Purchased compact florescent light bulbs (CFLs)53%68%64%65% Receive all/some account statements electronically50%56%58%60% Purchased energy efficient appliances28%35%34%40% Installed a programmable thermostat13%18%17%19% Participate in organized enviro initiative (e.g. club)6%9% Purchased a hybrid vehicle2% 3% None of the above20%11%10%13% As Expected Green Enthusiast Engage at Higher Rates Behaviors in past 12 months Consumer segment

16 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Women tend to be more green than men: For example, 66% of women say they always shut off lights when not in use compared to 52% of males. Men and women recycle at about the same rates though. Older age segments are more green then younger segments. For example, 51% of the age segment say they always recycle compared to 25% of the 18 – 24 segment. Additionally, 68% of the segment says they always turn off the lights when not in use compared to 46% of the segment. Higher income households engage in more green behaviors than lower income households. Interestingly, those that classify themselves as environmentally conscious or say green attributes are important to them do not engage in green activities at significantly higher rates than the overall rate. They engage at higher rates, but not overwhelmingly higher rates. Demographic Summary of Green Behaviors

17 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Reasons for Engaging in Green Behaviors

18 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Reasons for Not Engaging in Green Behaviors Females Males 55% of consumers say they plan to engage in more environmentally friendly behaviors over the next 12 months, while 40% expect no change in their behavior. Will Do Much More: Women20% Men11% Boomers20% Gen X14% Plan to Buy24% Green CE

19 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green – An Emerging Purchase Criteria?

20 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Price/Features Most Influential in Purchase Decisions Important Very Important 87% 76% 73% 58% 57% 49% 31% Elements consumers say are important to their next CE purchase decision.

21 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green Perceptions Impact Purchase Decisions MenWomen % of consumers saying that a companys reputation and philosophy regarding the environment impacts their decision to try the companys product for the first time A similar % of consumers say the same regarding their willingness to continue using a companys products.

22 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Attributes Associated with Green CE Products

23 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Product Packaging Plays a Role Attributes Associated with Green Packaging Other Factors: Environmental sustainability51% Reduced carbon footprint45% Product shipped locally34% Lower product shipping weight34%

24 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Many Consumers Unfamiliar with the Green Credentials of Products and Companies Familiar Unfamiliar Somewhat Familiar, Somewhat Unfamiliar

25 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Some Consumers Willing to a Pay a Green Premium Green Premium* Willing to Pay for a $800 Flat Panel TV Unsure Willing to pay some type of premium Not willing to pay a premium Average premium: 7.4% *Among the 53% of consumers willing to pay at least some premium.

26 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Product Price Impacts Premium Amount Green Premium* Willing to Pay for a $200 Digital Camera Unsure Willing to pay some type of premium Not willing to pay a premium Average premium: 9.0% *Among the 54% of consumers willing to pay at least some premium.

27 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Helps the Environment Wanting to save the environment was consistently cited by respondents as a primary reason for wanting to purchase green electronic products. Saving energy, whether it is out of regard for the environment or for the purposes of saving money was another motivating reason. I would be very likely to purchase green consumer electronics because I am trying to help the environment. - Female, 45-49, White/Caucasian I would purchase a green electronics because I know that when the product may break or get old, or even when I am using it, there will not be any concern as to it being harmful to an individual as well as the environment. - Female, 18-20, Black/African American Very likely [to purchase a green electronics product]. If this product would cut down on the use of power either in production or use it would be good for everyone. - Male, 60-64, White/Caucasian It just depends on the product, how major of a purchase it is, what the cost difference is, how long I will have the product. Bigger purchases require more thought and generally more money anyway and if the green product is more, it factors in a lot more. Also the longer I am going to have the product, the more likely I will buy green because if it does cost more, it will likely pay for itself over the life of the product and in the end probably cost me less in operation costs. - Female, 21-24, White/Caucasian In the electronics business, products can become obsolete as soon as within a year. Millions of people purchase some type of electronics year-round, and when these electronic products become obsolete they most likely will be discarded as trash. So, if this products are biodegradable and have a reduced carbon footprint, it will reduce pollution considerably. - Female, 30-34, Asian/Asian American The Voice of the Consumer: Buying Green CE

28 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. 28 Quality and Performance a Factor While willing, and often wanting, to purchase green electronic products, respondents said they still consider the quality, features, and overall performance of the product. Going green is important with electronics, but respondents expect green products to perform as well as non-green products, and to be priced similarly. All other factors being equal, if it is easily recognizable as 'green', we would be more likely to purchase. I think overall, everyone wants to do their part, but the more difficult something is, the fewer people will go the extra mile. - Female, White/Caucasian, I would be more likely to buy these products if the price is still comparable to others. - Male, 35-39, White/Caucasian That it is a good product and has features just as good as a non-green product. - Female, 25-29, White/Caucasian I am not sure [if I would consider purchasing a green electronics item], but if I would have an option between a green product and a non-green one, unless the performance of the non-green would very vastly out do the green, I would more than likely purchase the green even at a reasonable price increase. - Male, 60-64, White/Caucasian I don't know. It'd have to be quite similarly priced for me to do so. Most importantly, the quality of its performance can NOT be compromised (i.e., I won't purchase green electronics if performance is poorer than non-green counterpart). - Male, White/Caucasian, 30-34, The Voice of the Consumer: Buying Green CE

29 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Other Purchase Considerations More Likely Less Likely No Impact

30 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. The Logistics of Buying Green

31 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green CE Purchases Dominated by Early Adopters Product purchased – past 12 months OverallMenWomen Early Adopter Mid Adopter Late Adopter Green CE 10%13%8%18%11%6% Green CE accessories 6% 7%12%7%3% Neither 86%84%88%76%84%92% Definitely or Probably will Buy a Green CE Product Over Next 12 Months

32 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Terms that Best Describe Green CE From consumers point of view Only want to know whether product is green or not Want to know specific attributes that make CE product green

33 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. The Voice of the Consumer: What Does Green Mean? Green = Environmentally Friendly Almost all respondents related the term green to the environment and perceived products that carry the green moniker environmentally friendly or safe for the environment. The term green means that it is safe for the environment and is produced in a manner that is environmentally friendly. - Female, 45-49, White/Caucasian, It means that it is not bad for the planet. That the product will not hurt the planet and after its life is over it can be recycled, and during its life it wouldn't use any more electricity that it needs to. - Male, 60-64, White/Caucasian It is safe for the environment. - Male, 18-20, White/Caucasian Green = Recycling The term green was also commonly associated with recycling i.e. the product or the packaging was either made with recycled materials and/or was easily recyclable. Green means rejuvenation, taking something like used paper or plastic and making it into something else that is useful to us in the world today. - Female, 18-20, Black/African American Green means being made from recycled products and having the packaging recyclable means that we are reusing products instead of having to use new things, and in turn cutting down more trees for packaging and such. Using as little energy as possible helps us leave a smaller carbon footprint and saving valuable energy. - Female, 21-24, White/Caucasian Because green is the color used for recycling. It doesn't mean it's organic and it should be some indication that recycling was used in the making of this product. - Male, 40-44, White/Caucasian

34 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Green Credentials: Keep it Simple Ways consumers want to learn that a CE product is environmentally friendly or green TotalMaleFemale Logo printed on package/box49%45%52%49%47%46%48%51% Description on package/box41%37%45%40%44%41%39%40% Display at a retail store35%30%41%35%38%34%36%34% Sign or placard next to the product32%27%36%31% 29%32%35% Removable logo sticker on the product26%23%30%29%35%23%26%21% Non-removable logo on the product24%26%23%19%18%22%33%28% Product's owners manual24% 23%21%19%20%29%27% A magazine, i.e. Consumer Reports23%25%22%15%21%17%28%32% Government website22%21%23%21%24%23%22%20% Manufacturers website19%18%21%20%18%20% 18% The package/box is green in color17%11%23%22%20%18%16%11% Retailers web site16%14%18%21%20%16%14%11% Some other online source16%18%15% 12%17%21% Part or all of the product is green in color9%6%12%11%13%10%6%

35 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. The Voice of the Consumer: Determining When a Product Is Green Many respondents said they could tell right away if a product is green just by looking at the product itself or the packaging. Others said that they read the labels on the product in order to tell if the ingredients are environmentally safe or non-toxic. Regardless, several respondents expressed the desire to have items that are green clearly identified by a specific label. As discussed earlier, respondents are skeptical of companies claims that products are green, and therefore, a uniform label issued by a credible agency would alleviate this concern as well as lend credibility to the green claim. Just Knowing Sometimes just knowing a product is green had to do with the appearance of the package. Most of these respondents said they read the package labels or ingredient list to find out for sure. I look at the info on the packaging, I check ingredients, where things are produced, distributed from, I often do internet research for specific items likes cars and larger home appliances. I look for where it was made, what materials it was made with were they recycled or recyclable materials, where it was transported from. - Male, 18-20, White/Caucasian I know a product is green if it has less packaging, made of recycled material, be recyclable, an independent group that says this company is work hard at being green. - Female, 18-20, White/Caucasian Because [the package] is the first thing you see. When I want to learn what ways a product is green, if the information is not on the product, the manual, or the website, then all other ways of learning about the product will take to much time, and also I would probably forget about it. Also, if they don't say anything about it, I will expect it to not be green. - Female, 21-24, White/Caucasian I read the product's label and look at what is included in the product and what I know to be environmentally safe components. - Female, 21-24, Black/African American,

36 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. 36 The Importance of a Logo To aid in the identification of green products respondents want a clear and distinct label. If they have a logo on box you would not have to read to see if it is environmentally friendly therefore a logo will let you know that it is safe for the earth. - Female, 50-54, Black/African American I need some sort of certified guarantee, I have seen food items that say organic only to find out that is part of the logo and not necessarily how the product was raised. - Male, 50-54, White/Caucasian I would like to see more information about the product on the label so I know what the manufacturer means by saying its GREEN so I could make a decision if the additional cost would be justified. - Male, 60-64, White/Caucasian The Voice of the Consumer: Determining When a Product Is Green Labels Can Be Confusing Many respondents find the current labeling system of green products confusing and inconsistent. To alleviate this concern, and the skepticism about a companys claim that a product is green, many respondents said they would like some sort of consistent and credible labeling system to assure them the products they are purchasing are in fact green. Yes, I have been very confused with green products. There doesn't seem to be an authority to come forward and designate products as green It appears that companies are just labeling their products green because it's the thing to do now. - Male, 35-39, White/Caucasian The labeling of products with different initials and abbreviations is confusing. i.e.... No CFC's, No BHA, etc.. Unless you've been watching (and you trust) Oprah there's no real resource for consumers to know for sure what is 'green' and what is just marketing. - Female, 35-39, White/Caucasian Yes. I think a lot of products claim to be green nowadays to sell more products and I am not so sure that many of them are truly green. I just take their word for it though. - Male, 35-39, White/Caucasian

37 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. No Single Source for Green Verification Females Males Sources consumers would like to rely upon for affirming a CE products environmental credentials. Example of third party validation: Clorox & Sierra Club partner +

38 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Summary Points Green awareness is on the rise, but for many consumers, familiarity of green products lags. Consumers associate green with being environmentally friendly and with recycling. For CE products, energy efficiency is frequently mentioned. The top reasons consumers engage in green behaviors is because they believe its the right thing to do, to save money, to reduce pollution, or to conserve natural resources. Those who do not engage in green behaviors cite cost, just forget, and lack of information as the key reasons. Price and features continue to be the primary purchase drivers for CE products, but green attributes will increasingly be a factor. Fifty-three percent of consumers say they would be willing to pay some type of premium for television with green attributes. One-third of consumers expect to make some type of green CE purchase within the next 12 months. Consumers want an easy way to determine if and why a product is green. Logos and descriptions are cited as desired vehicles for establishing green credentials.

39 Copyright © 2009 Consumer Electronics Association. All rights reserved. Do not reproduce, redistribute, post online, or otherwise reuse this work without permission. Thank You Tim Herbert Senior Director, Research Consumer Electronics Association


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