Sales of Green Products Face Challenges in Recession

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A new survey by Ketchum and Braun Research reveals that 95% of Americans claim they purchase green products but that the majority of green-focused actions taken by Americans are focused on ways to save money versus doing it for the environment.

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Survey Reveals Green Product Prices Turn Some Americans Red With Frustration 
 
 
Contact:
Mike Banas
+1-312-228-6924
 
 
New York, May 11, 2009 – While 95% of Americans claim they purchase green products, 50% are frustrated by the higher price of green products, according to a recent survey by global public relations firm Ketchum that was conducted by Braun Research. Eighty-one percent of Americans admit buying green is a “happy accident” or that they may make an effort but won’t go out of their way to buy green products, which could lead to fewer sales of green products during the recession. 
 
“Unless green products are meeting consumers’ economic bottom line, the social and environmental bottom lines will take a hit,” said Dave Chapman, Partner and Director of Ketchum West and head of Ketchum’s green marketing group. “For many consumers in a down economy, it’s price first, environment second.” 
 
Consumers’ Economic Bottom Line Matters
Based on the survey findings, the majority of green-focused actions taken by Americans are focused on ways to save money, versus doing it for the environment or out of the kindness of their heart. For example, nearly four out of five people buy energy-efficient light bulbs, and the same amount are reducing their thermostats by one or two degrees. And 70% of Americans are taking shorter showers or using low-flow water products for both the environmental and financial benefit.   
 
In addition, 85% of Americans ensure their tires are properly inflated, which impacts their pocketbooks by not only increasing fuel efficiency, but also minimizing tire wear and the cost of early replacement. And almost three out of five people fill their dishwashers all the way before running them.
 
Consumers Confused About Green
Nearly one-third of Americans are confused about what it means to be green, and even more, 41%, do not believe they are getting the whole truth about green products.
 
More than a quarter of Americans are unclear where to turn for credible information, and 29% feel confused about what is or is not considered green.
 
“Green marketers must be transparent with claims and use easy-to-understand, proven information to build trust with consumers,” said Chapman. “This is a challenge that must be met to remain competitive in this economy.”
 
Other key findings from the survey:
  • When shopping for green or ecofriendly products, one-third of Americans look for products with some type of certification or seal of approval. Young adults (44%) are more likely than boomers (32%) or women aged 25-54 (29%) to look for a green certification or seal on products.
  • Only one in ten Americans purchase foods from stores who “do the shopping for them” – those dedicated to selling environmentally friendly and organic products – such as Whole Foods Market or Patagonia. Even fewer (5%) are likely to buy products from online retailers who specialize or sell green products exclusively.
  • When it comes to purchasing locally grown food or shopping at farmers markets, three-fourths of Americans claim to have done so in the last year.
About the Survey
The survey was conducted by Braun Research via phone August 7-14, 2008. In total, 1,146 nationally representative Americans were surveyed, with a margin of error of +/-3%, for total sample and +/-5.5% for each subgroup.
 
About Ketchum
A communications innovator, Ketchum ranks among the largest global public relations agencies, operating in more than 50 countries. With five global practices – Brand Marketing, Corporate, Healthcare, Food and Nutrition, and Technology – and specialty capabilities that include Access Communications (high- and consumer-tech PR www.accesspr.com), Concentric Communications (experiential marketing, events and meetings), MMG (clinical trial recruitment), Ketchum Global Research Network, Ketchum Sports and Entertainment Marketing, and Stromberg Consulting (change management and workplace communications), Ketchum leverages its marketing and corporate communications expertise to build brands and reputations for clients. For more information on Ketchum, a unit of Omnicom Group Inc. (NYSE:OMC), visit www.ketchum.com.
 

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