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Sustainability from aConsumer Perspective
FALL 2007
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Sustainability from a Consumer Perspective | Summer 2007
The Hartman Group, Inc.
A full-service strategic consultancy and market insights provider.
• Founded 1989
• Headquarters: Bellevue, WA
• Staff Composition: Anthropologists, sociologists and psychologists (15 full-timePhDs), visual analysts and linguists, MBAs, marketers and innovators
• Tinderbox: Dedicated to culture, innovation and trends
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability Study Research Methods
Qualitative Consumer Immersion• Over 150 hours of consumer interviews
» In-depth interviews in homes
» Social network parties
» Observation of sustainability activities
» Consumer photo journaling
» Language Map
• Field locations: Chicago, Raleigh, Boston, Newark,Los Angeles, Seattle
Quantitative National Survey• Custom online survey; sample size 1,600
• Nationally representative survey of the US population
• Conducted January 2007
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Sustainability from a Consumer Perspective | Summer 2007
Sizing Sustainability
The Hartman Group analyzes consumersaccording to their lifestyle orientationwithin a given “world” of activity—here the“World of Sustainability & Organics”
Segments vary according to the intensityof involvement in that world.
• The Periphery: Consumers begin theirjourney at the Periphery of the World, andmove toward the Core as they gainexperience and knowledge
• The Mid-level: The majority ofconsumers are in the Mid-Level
• The Core: The Core is the smallestsegment and most intensely involved -early adopters, trendsetters andevangelists
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability is NOT New
“Report Says Global Warming Poses Threat to Public Health”—The New York Times
"Most Consumers Say They Would Like More Green Products”—The Financial Times
"More New Alternative Fuel Vehicles Continue to Roll Off US AutomakerAssembly Lines”
—The Oil & Gas Journal
"Tomorrow's Shade of Green: Environmentally Oriented ConstructionMaterials for the 21st Century”
—Home Improvement Market
"Can Retailers Turn Green This Year?”—Marketing
These headlines all occurred between 1996 and 1997
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Sustainability from a Consumer Perspective | Summer 2007
“Sustainability” is NOT a Household Word
Though widely used in business circles, the term “sustainability” is littleused in consumer circles.
• Just over half (54%) of consumers claim any familiarity at all with the term“sustainability” (and most of these consumers cannot define it appropriately uponprobing)» Only 5% indicate they know which companies support sustainability values
» 12% indicate they know where to buy products from such companies
• As a marketing term, “sustainability” has limited traction; it is not household word
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Sustainability from a Consumer Perspective | Summer 2007
“Sustainability” is NOT a Household Word
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability Awareness
Though the term “sustainability” is limitedin usage, most people operate with varyingdegrees of “sustainability consciousness.”
• Sustainability awareness refers to the waypeople link everyday life to “big” problems(e.g., food, water and air quality)
• Sustainability consciousness is not justabout “eco-conscious consumers” and theenvironment» It’s everyday people and broadly distributed
across society
• Sustainability awareness emerges asconsumers gain experience dealing withrisks in everyday life
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Sustainability from a Consumer Perspective | Summer 2007
Risk in Everyday Life
Most consumers believe that daily liferequires practical adaptations to risks ifpotentially harmful outcomes are to beavoided.
• Some adaptations to risk are firmlyestablished habits» Avoiding unfiltered tap water whenever
possible
» Wearing sunglasses and sunscreens to “blockout harmful UV rays”
» Fastening vehicle safety belts “in case” anaccident happens
• Some adaptations to risk are only nowemerging» Using sanitary wipes to wipe down grocery
carts
» Routinely using air filters in our living rooms
» Questioning the purity of water in plastic bottles
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Sustainability from a Consumer Perspective | Summer 2007
Dimensions of Sustainable Lifestyles
Core, Mid-level and Periphery Sustainability Consumers are drawn todifferent attributes of products, settings and services.
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability Awareness Works from the InsideOut
It centers on circumstances and events that draw people outside ofthemselves.
• The ability and tendency to look “beyond the personal” is a marker of systemsthinking, which leads to global awareness.
Health and safety in the home drive purchases.• Home products that clearly have a direct personal benefit to health and well-being
are the gateway to purchasing sustainable products.
Food is the primary gateway,but other categories arestarting to gain traction.
• Energy-efficient lightbulbs, anti-bacterialproducts, water filters,water-efficient devices,natural householdcleaning products.
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Sustainability from a Consumer Perspective | Summer 2007
Measuring Consumers Involvement in theWorld of Sustainability
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Sustainability from a Consumer Perspective | Summer 2007
Who is the Periphery Consumer?
Meet Linda.
• Wants gas prices to rise even higher so shehas a “good reason” to trade-in her SUV
• Drinks water from the tap unless it smellsand/or tastes “bad”
• Does not believe “the hype” about organicfood
• Believes climate change might be happeningbut defers to the experts
• Travels with a waterless hand sanitizerbecause she thinks other peoples’ germs aregross
• Just bought an energy efficient dishwasherbecause of a rebate
• Curbside recycles because “it’s just whatyou do”
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Sustainability from a Consumer Perspective | Summer 2007
Who is the Mid-Level Consumer?
Meet John.
• Lacks deep knowledge of organic farming,but buys organic because it makes him feel“safer”
• Wears sunscreen because the “hole in theozone layer makes it more dangerous to bein the sun”
• Uses a water filter on the kitchen tap but notin the shower
• Recycles out of an ambiguous sense ofmoral duty
• Ponders the possibility of buying a hybridvehicle someday
• Monitors and evaluates the hand hygienepractices of his colleagues
• Enjoys buying brands that symbolically alignwith his identity and values
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Sustainability from a Consumer Perspective | Summer 2007
Who is the Core Consumer?
Meet Kim.
• Pays premium prices for items produced bycompanies who treat their workers fairly
• Avoids plastic packaging and containers dueto concerns about “leeching” and landfills
• Strategically plans errand trips so that shecan minimize her gas consumption
• Recently purchased sustainable cotton bedsheets for her home
• “Follows” some of the products she buysthroughout their lifecycle
• Buys only cruelty-free personal careproducts
• Believes her purchase decisions are a formof direct democracy
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Sustainability from a Consumer Perspective | Summer 2007
The Core is Leading the Charge
Core consumers are helping the rest of us decide whether and how toparticipate in Sustainability, creating the language, parameters and ritualsthat pave the way for adoption.
Early signs of Core adoption are primarily related to food production(organic, local and origin narratives) and packaging (minimal orunpackaged).
Consumers will pay more for Sustainability products when their value isclearly defined through communications, packaging, brand narratives orexperiences.
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Sustainability from a Consumer Perspective | Summer 2007
Current Perceptions are Reactive and Global
Niche, Core Understandings =
Little Mainstream Participation
• Activist and political
• Fear-based
• Global
• Broad focus on alternatives such asenergy resources, farming practicesand economies
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Sustainability from a Consumer Perspective | Summer 2007
They’re Evolving to be More Proactive and Local
Mainstream, CommonUnderstandings =
Mass Participation
• Flexible and personal
• Optimistic and hopeful
• Narrow focus on daily alternativessuch as seeking local food, recyclingat home and energy-efficient lightbulbs
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Sustainability from a Consumer Perspective | Summer 2007
1. Control.“Voting with my wallet.”
2. Responsibility.“Companies should do theright thing, and I’ll try to domy part.”
3. Local.“It’s about community andconnecting with peopleand places.”
4. Health.“Safety, freshness andfrom nature are things thatare important for me andmy family.”
Consumer Perceptions ofSustainability Organize Around4 Key Themes
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Sustainability from a Consumer Perspective | Summer 2007
How Do Consumers Talk and Think About Control &Health
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Sustainability from a Consumer Perspective | Summer 2007
Key Triggers to Participating in Sustainability
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability is a Larger Cultural Context
Before attributes of Health &Wellness and Sustainability canresonate with consumers, theexperience must first qualify asa quality experience.
The pursuit of authentic qualityexperiences has subsumed whatwere once major trends(healthy, organic and local) andtransformed them into moreminor experiential attributes.
Sustainability, in a sense, is about preserving a certain condition orway of life – the ability to control one’s surroundings.
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Sustainability from a Consumer Perspective | Summer 2007
Consumer Behavior is More Pragmatic than it isIdealistic or Extremist
• Health concerns first and foremost continue to drive consumerengagement with organic products.» Absence of pesticides and hormones is the number one value associated with
organic foods and the primary reason to buy
• There are three key barriersto regular participation inglobally conscious behaviors.» Price, Convenience,
Personal Tangibility
» Increasingly, local foodsources are thought to be thehealthiest, most authentic,most sustainable, and thehighest quality
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Sustainability from a Consumer Perspective | Summer 2007
Key Purchase Criteria:Periphery
Convenience.• Availability in stores; ease and efficacy of
use
• “If it’s hard to find or I can’t figure out how touse it, forget it.”
Price.• Consumer perception vs. actual price; how
added value is conveyed
• “Why would I pay 10 bucks for a light bulb?”
Personal Benefits.• Health is typically the primary benefit; Peace
of mind
• “I’m trying to do the right thing for myself andmy family”
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Sustainability from a Consumer Perspective | Summer 2007
Key Purchase Criteria:Mid-Level
Expert Opinion.• Weighing options; seeking direction; reinforcing
choices
• Ambivalent reliance on science (subject tochange)
• Derived from friends, family and colleagues: “Mysister knows all about this, she’s hard core.”
Experience.• Meaningful interactions with products and
companies
• Relevant product design and use
• Opportunities to connect through stories aboutpeople, places and processes
Knowledge.• About benefits (for self and others), company
values, resonance to way of living and goals
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Sustainability from a Consumer Perspective | Summer 2007
Key Purchase Criteria:Core
Greater Good.• Expanded consciousness; holistic thinking
about how we live and interact with eachother and the world
• “The decisions I make and the things I doimpact more than just myself”
Partnership.• Striving for similar goals and ideals; like-
minded; equal participation and effort
• “We’re in this together”
Transparency.• Access to company values, policies, and
practices; open communications
• “Nothing to hide”
Authenticity.• True and consistent; values driven
• The “real deal,” “grassroots,” “the way thingsshould be”
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Sustainability from a Consumer Perspective | Summer 2007
Globally Conscious Consumers Believe PurchaseDecisions are At Least as Important as Votes
• 67% of consumers say they atleast sometimes buy productsbased on concerns about theenvironment or social well-being.
• Consumers tell us their purchasedecisions have a greater impacton society than their votingdecisions.
• 70% of consumers say theyalready own energy efficient lightbulbs.
• 80% say they’re at leastinterested in owning a car thatruns on alternative fuels.
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Sustainability from a Consumer Perspective | Summer 2007
Business Practices Influence Consumer’s Purchase Behavior
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Sustainability from a Consumer Perspective | Summer 2007
Cues by Category
CATEGORY SUSTAINABILITY CUES
Produce local, organic
Chocolate organic, fair trade, donation to charity
Coffee local, organic, fair trade, shade grown
Salad dressing natural, organic, donation to charity (e.g., Newman’s Own)
Seafood wild
Cereal organic, environment cues (e.g., EnviroKidz)
Juice organic, indigenous support (e.g., Goji and Acai)
Eggs local, natural, free-range
Bottled water natural sources, donation to charity (e.g., Athena)
Grains local, organic, environment cues (e.g., Lundberg)
Meat and poultry local, natural, organic, free-range
Wine local, organic, land preservation
Bread local, organic
Tea organic, fair trade
Cheese local, organic
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Sustainability from a Consumer Perspective | Summer 2007
Sustainability Adoption Pathways
Established Habits.• Avoiding unfiltered tap water whenever
possible
• Wearing sunglasses and sunscreens to“block out harmful UV rays”
• Using seatbelts and car seats, “just in case”
Emerging Behaviors.• Using sanitary wipes on grocery
shopping carts
• Using air filters in our living spaces
• Questioning the purity of water bottledin plastic
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Sustainability from a Consumer Perspective | Summer 2007
Currently Adoption is Tempered with Uncertainty
Many consumers are making incrementalindividual changes, but primarily inactivities that are low-sacrifice and low-risk,require little to no monetary investment andneed no significant change in behavior (e.g.,turning off the water faucet while brushingteeth).
Changes toward a sustainable lifestyle aremore about making conscious decisions andchoices and investments of time ratherthan purchasing products.
Most consumers are unlikely to think of theirpurchases as being sustainable because theirfocus is typically on health and safety.
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Sustainability from a Consumer Perspective | Summer 2007
Currently Adoption is Tempered with Uncertainty
Most say they’re likely to pay up to 10percent more for Sustainability products,but qualitative observation reveals that onlyCore consumers actively and consistently seekout environmentally friendly products.
Consumers will pay more forSustainability products when their value isclearly defined through communications,packaging, brand narratives or experiences.
Personal benefits must be clearly indicatedto engage less engaged consumers who aremost likely to feel that Sustainability is not asimportant as other issues in life.
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Sustainability from a Consumer Perspective | Summer 2007
Consumers Believe Businesses Should ProvideLeadership in Social and Environmental Aspectsof Sustainability
For environmental concerns, waste and pollution are the mostimportant issues to address across industries; while excessive packaging,local and organic processes are areas of specific concern within consumerpackaged goods.
More important than environmentally responsible business practices arehuman ethics and social responsibility. Consumers expect and wantto know that businesses treat employees well in terms of safety andfairness.
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Sustainability from a Consumer Perspective | Summer 2007
Consumers Believe Businesses Should ProvideLeadership in Social and Environmental Aspectsof Sustainability
Consumers associate four broad characteristics withsustainability companies.
• Companies are not solely concerned about “the bottom line” (selected by59% of all consumers)
• They offer extensive information on their products (59%)• They maintain supportive relations with their local community (55%)• They represent principles consumers agree with (54%)
Local narratives create a sustainability halo regardless of acompany’s actual or specific elements of sustainability behaviors.
Sustainability initiatives based on improving employee and work-related issues create as much or more positive company image thaneco-friendly practices and giving to charity.
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Sustainability from a Consumer Perspective | Summer 2007
Strategic Guidelines Around Sustainability
1. Focus on a select (basic)areas tied to products driven bypeople’s desire to be involved inhealth and wellness, and thatresonate with them on theirshopping occasions.
2. Orient company innovation,communication and experiencestoward consumer definitions,not industry definitions, ofsustainability.
3. Address key barriers toregular participation: price,convenience and tangibility.
4. Create opportunities forconsumers to connect andshare their experiences andopinions.
5. Stay cognizant of whereproducts and services fall onthe Sustainability adoptionpathway to determine whichdimensions of consumption toaddress and what key benefits,language and visual cues toleverage.
6. Participation in products,services and retailexperiences must be flexibleand occur in the course of aconsumer’s everyday behavior(i.e., shopping at the grocerystore, dining out, at a socialevent).
7. Follow Core consumers toidentify possible future trendsin Sustainability.
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Sustainability from a Consumer Perspective | Summer 2007
Guidelines for Marketing and Communications
• Sustainability” is an umbrella term for six key values:» Healthier
» Local
Leverage these values in communications, both linguistically and visually, totap into consumer desires and the more emotional aspects of Sustainability.
• Health and wellness involvement is the most significant connectionpoint consumers have as they enter the World of Sustainability. Link personalhealth and/or wellness benefits to sustainable products and serviceswherever possible.
» Simple living
» Control
• Utilize language related to notions ofsafety, products from nature, and idealsof fresh to Periphery consumers. Mid-level consumers will respond best tolocal and community language, andCore consumers will respondstrongest to language surroundingsocialand environmental issues.
» Social responsibility
» Environmental responsibility
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Sustainability from a Consumer Perspective | Summer 2007
Guidelines for Marketing and Communications
• Communicate brand and companynarratives that connect consumers tothe people, places and processes thatepitomize your company. Show themhow the company is part of a community,and stay inclusive.
• Meaningful product and brandnarratives and the ability to truly connectwith people and places (particularly“local”) figure predominantly in whetheror not consumers will participate insustainable products and activitiesbeyond personal physical health benefits.
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Sustainability from a Consumer Perspective | Summer 2007
Guidelines for Marketing and Communications
• Sustainability imagery analysis reveals predominant themes of:» Hope
» Connection
» Responsibility
These symbols are most relevant and meaningful to connect with consumersand elicit long-term behavioral change within Sustainability.
» Authenticity
» Simplicity
» Efficiency
» Reliability
» Care/Nurturing
» Control
• Open up” the business for directconsumer input as well astransparency about companyprocesses, values, etc. Consumerswill continue to seek (and otherwisediscover) information aboutcompanies, and they’ll orient theirpurchase decisions based on the onesthat align with their personal valuesabout health and wellness, localissues and community.
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Sustainability from a Consumer Perspective | Summer 2007
Guidelines for Marketing and Communications
• Local narratives and emphasis oftencreate a sustainability haloregardless of a company’s actual orspecific elements of sustainabilitybehaviors. Local has less to do withphysical geography than it does withactual places, people and traditions.
• Communicate your Sustainability byemphasizing one or all of thefollowing:» You’re not solely concerned about
“the bottom line”» You offer extensive information on
your products» You maintain supportive relations
with the local community» You represent principles
consumers agree with
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Sustainability from a Consumer Perspective | Summer 2007
Local
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Sustainability from a Consumer Perspective | Summer 2007
1621 114th Avenue SE | Suite 105Bellevue, WA 98004tel: 425.452.0818fax: 425.452.9092
www.hartman-group.com
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