The "Green" Scene

"The Green Scene" is Part 2 of a series of extensions from Miller Zell's larger report, Gone in 2.3 Seconds: Capturing Shoppers with Effective In-Store Triggers. In "The Green Scene," we explore shopping behavior related to eco-friendly product information in-store. The information presented here will help retailers and manufacturers think differently when developing retail strategies that trigger green purchases."Gone in 2.3 Seconds: Capturing Shoppers with Effective In-store Triggers" surveyed 999 U.S. shoppers to identify which in-store and out-of-store marketing communications get their attention and influence their purchase decisions. The survey attempted to enter the minds and decision-making processes of today's shoppers to find out what makes them tick.Study Objective: To determine elements that influence and inspire purchase behaviorMethodology: Online survey. A collaborative research project constructed and commissioned by Miller Zell Inc. in partnership with the National Research Network.Sample: 999 ShoppersTiming: March 2009Insights and ImplicationsShoppers Concerned About SustainabilityDespite today's challenging economic environment, sustainability is still a concern for many shoppers. Research indicates that, across all shopper groups polled, there is a willingness to pay extra for green everyday household products.The majority of shoppers polled indicated they would be most likely to pay a 10¢ premium for household products (when the product sells at a price point of $2.49). The desire to pay a premium significantly dipped when the premium reached 28% of the base price of the product. This implies that there is a price sensitivity associated with paying for green.This could indicate that quality and efficacy should be injected into the dialogue at shelf level to incent shoppers to pay more. Further exploration of price sensitivity may lead to discussions of whether investment diminishes as ticket price increases or is heavily influenced by product category.Influence of IncomeOur research also indicated that lower income shoppers are more willing to pay a 10¢ premium compared to middle and upper income groups. This may be heavily influenced by the number of green-minded Millennials who may make up a disproportionate percentage of the lower income bracket because of their recent entry into the workforce. (See chart above.)Where Shoppers Go GreenGrocery and Mass are the most likely channels where shoppers expect to purchase green products. This suggests that other channels have an opportunity to get in the game by highlighting and promoting green product offerings in-store. This may be especially true for Department, Electronic and Specialty retailers, as shoppers indicated that these are also favorite venues to shop. (Fig.1)Offering green products and executing related promotions could potentially create an additional positive dimension of brand perception -- which ultimately impacts frequency and purchase behavior.Some electronics manufacturers are taking the cue and brand-building around green. This is demonstrated by Motorola, which recently introduced a Renew-brand phone made from recyclable materials and offered it at an affordable price -- thus changing the perception that going green has to be more expensive.Green Speak at Shelf LevelWhile green continues to be a hot topic, shoppers indicated that retailers and manufacturers do a relatively poor job of providing green information in-store. This suggests that shoppers want to be assured that they are "getting what they are paying for." Furthermore, they want to know exactly what the "what" is.Clearly, the definition of "green" is broad, and shoppers want to know how it is defined by manufacturers. Upping the ante on green information could potentially impact incremental basket purchases by simply clarifying and highlighting the features and benefits of green products. On average, 62% of shoppers indicated that green product options can influence unplanned purchases. (See chart below.)More deliberate and focused communication at the shelf level can serve as a manufacturer's or retailer's prompt to help shoppers choose green products more easily and more often.Top Seekers of GreenOverall, women are more eco-conscious, closely followed by Gen Y. Both groups top the chart in their willingness to pay a premium for green products* and both are also the least satisfied with the level of communication offered in-store. With a higher frequency of unplanned purchases, women are more likely to be influenced to purchase based on whether the product is green.Given the increasing buying power of both of these segments, retailers should consider tailoring and targeting messaging to capture their hearts, minds and dollars. In this vein, more is more when communicating green information.SC Johnson's Ziploc recently launched a campaign highlighting its new line of Evolve plastic storage bags. The new product uses 25% less plastic (compared to their other Ziploc products) and is manufactured using wind power -- while staying price neutral. In addition to the media advertising campaign, Ziploc has an opportunity to leverage in-store marketing at the shelf in order to influence shoppers where they are making purchase decisions.Click on the file attached at right to download a PDF of this report.About Miller ZellMiller Zell is a leader in strategic retail consulting specializing in retail design, shopper marketing and store implementation. It serves some of the world's best known brands. For over 30 years, the Atlanta-based firm has been "Making the World a Better Place to Shop" with award-winning selling environments across multiple retail sectors including grocery, financial institutions, dealer-based businesses, restaurant chains, consumer products, and mass merchandise. Miller Zell employs LEED-certified personnel and also helps clients incorporate sustainabilty practices into design and engineering solutions.

The "Green" Scene

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