Jul 08, 2015
2
Methodology
• The Gandalf Group conducted qualitative and quantitative research to produce the
Consumerology Report.
• Online discussions were held over 3 days in June 2008 with 3 groups of Canadians,
– General population national sample men aged 18 - 65
– General population national sample women aged 18 – 65
– Tech early adopters who were very interested in environment – men and women
• A national proportionate quantitative online survey was conducted among 1500
Canadians.
• The survey was conducted in English and French and fielded from June 26 through
July 9, 2008.
• The margin of error is +/- 2.53%.
3
Assessments of the National Economy
• Optimism about the direction of the country has dropped since April. While two thirds of
Canadians still believe the country is headed in the right direction, this is a 7 point drop in
three months.
• And assessments of growth in the national economy are down 12 points since April.
Currently, 63% of Canadians think that the Canadian economy is currently in a period of
growth (only 5% say strong growth).
– Ontarians have the bleakest view of the economy- just about half think that Canada is experiencing
economic growth.
– In contrast, the economic downturn is not affecting Western Canadians - almost three quarters think
Canada’s economy is seeing growth.
4
Economic Expectations
• Optimism of economic growth into the future has also declined.
• Last quarter, 62% of Canadians thought that in a year’s time, Canada’s economy would be
stronger.
• Half of Canadians expect the national economy to be weaker in a year than it is today.
5
Direction of the Country
• Which of these two statements is closer to your own opinion?
6
Assessments of the National Economy
• In general, how would you describe the state of the economy of Canada today
– would you say that it is in a period of strong growth, moderate growth, moderate decline,
or strong decline?
7
Assessments of the National Economy
• In general, how would you describe the state of the economy of Canada today
– would you say that it is in a period of strong growth, moderate growth, moderate decline,
or strong decline?
8
Economic Expectations
• Looking forward to one year from now, do you think the economy will be much stronger than
it is today, a little stronger than it is today, a little weaker than it is today or much weaker
than it is today?
9
Challenges Facing Canada
• For the second consecutive quarter, the price of gasoline is seen as a pressing issue to
Canadians – ranking equal to the state of healthcare. Almost three quarters of respondents
said that the price of gasoline is a very important issue facing Canada. Those saying the
price of gas is important has climbed 9% since last quarter.
• This is the first time since 9/11 that an issue has equaled health care as the top issue facing
Canadians
• The environment, crime and safety, ethics in government, the economy, and the quality of
primary education are also top issues.
• The Canadian dollar and the war in Afghanistan have declined in importance in the
last quarter.
10
Challenges Facing Canada:
• Below is a list of issues that some people think are important challenges for Canada at this
time. How important is each issue to you?
Mean
7.9
7.9
7.5
7.3
7.2
7.2
7.1
7.0
6.9
6.8
6.7
6.6
6.1
5.929 45 27
30 48 21
36 51 12
38 49 13
41 48 11
43 48 9
48 41 11
51 40 9
50 43 7
50 45 5
52 41 7
59 34 7
71 26 3
72 23 5
0% 20% 40% 60% 80% 100%
The war in Afghanistan
Poverty among aboriginal Canadians
The inclusion of Cdns with disabilities in community life
Unemployment
The Canadian dollar
The cost of post secondary education
Climate change
Ethics in govt and politics
The quality of primary education
The state of the economy
Crime and safety
The environment
The state of the health care system
The price of gasoline
Important Somewhat important Not important
11
Key Findings on the Environment
• Three quarters of Canadians say they consider the environmental impact when they make a
purchase decision – only twenty percent of Canadians say they rarely or never do.
• But there is a crisis in confidence. Most Canadians (75%) believe that environmental claims
are just marketing ploys.
• Companies are the least trusted source of information about the environmental impacts of
products.
• Not surprisingly, Canadians overwhelmingly want government to regulate this arena and
create standards that ensure claims have a basis in fact.
• Terms like “green” are worn out and viewed with cynicism – consumers don’t know what it
really means and are therefore cynical about how companies use it
12
Key Findings on the Environment
• Cost is the principal barrier to adopting more environmentally friendly behaviour and
purchasing more environmentally friendly products.
• Environmentally friendly products are overwhelmingly seen to be more expensive than
“normal” products. Two-thirds of Canadians say they don’t think environmentally friendly
products are any more expensive to produce, but that companies claim they are in order to
charge more.
• The perceived discrepancy between the price of environmentally friendly products and cost
of production is key because while three-quarters say they consider the impact of
companies/products when they make a purchase decision, less than forty percent say they
are financially able to make changes to benefit the environment.
13
Key Findings on the Environment
• The primary demographic distinction of willingness to adopt environmentally friendly
behaviours and to purchase environmentally friendly products is not age, income, nor
education – but gender.
• About 40% of Canadians could be termed Strong Environmentalist Buyers – this group is
more concerned about the environment and environmental impact is a key determinant of
purchasing behaviour. They are the most likely to pay more for environmentally friendly
products, YET they are no more or less wealthy than those who won’t pay more.
• Another 40% of Canadians consider environmental impacts most of the time when making a
purchase, however, they do not believe they are financially able to afford the extra costs.
• The remaining 20% just don’t make environmentalism a consideration or a priority.
14
Concern for the Environment
• Three-quarters of Canadians say they are very (38%) or somewhat concerned about the
environment.
– Residents of Quebec and Ontario indicate a higher level of concern than do residents of the Atlantic
or Western provinces
– Women are significantly more concerned than men for the environment
• And one-third of consumers report thinking about the environmental impact most of the time
they make a purchase, while 48% say they think about it some of the time.
– Women are almost twice as likely as men to say that most of the time they make a purchase decision
they think about the environmental impact
• Only one in five Canadians either hardly or never think about the environmental impact
when they are making a purchase decision.
15
Environment as Gender Issue
• How concerned are you about the state of the environment?
16
Women are significantly more likely
to consider environmental impact
• When you are making purchases do you think about the environmental impact: ?
17
The Environment and Consumption
• Similarly, three-quarters of Canadians say they are very (33%) or somewhat motivated to
make personal changes that would benefit the environment.
• Yet only 39% of Canadians say they are very (6%) or somewhat financially able to make
changes in their life to benefit the environment.
– Quebec residents are the most likely to say they are financially able (46%)
– Less than one-third of Atlantic Canadians say they are financially able to make personal changes to
benefit the environment
18
Environmentally Beneficial Changes
• How strongly motivated are you to make personal changes in your life that would benefit the
environment in some way?
19
Financial Ability to Make Changes
• How able are you financially to make changes in your life that would benefit
the environment?
20
Environmental Issues
• Specific environmental issues have more resonance than the “environment” as a category.
• Canadians place a higher level of importance on issues such as keeping fresh water clean,
reducing excess waste, and reducing air pollution and smog than they do on the
“environment”.
• Many of these issues may be seen as “white space” in which companies could make a lot of
ground by identifying themselves with these issues.
• Of moderate importance are combating global warming/climate change, protecting
wilderness areas, promoting locally grown food and preserving wildlife.
21
Importance of Environmental Issues:
• How important are each of the following environmental issues to you personally?
Mean
8.29
7.90
7.81
7.59
7.56
7.55
7.13
7.06
6.36
22
Benefits vs. Likelihood
of Performing Environmental Measures
• Canadians believe many lifestyle and purchasing decisions are beneficial to the
environment.
• Practices such as recycling, driving energy efficient vehicles, buying energy saving light
bulbs, reducing the use of plastic bags and pesticides, and conserving household energy
are seen to benefit the environment by a significant majority of Canadians.
• Purchasing organically grown food or investing in ethical mutual funds are seen as the least
beneficial.
23
Benefit of Environmental Measures:
• How beneficial to the environment would it be if you personally: ?
19 37 31 14
28 40 26 639 37 14 1147 33 14 748 34 11 7
46 41 9 4
49 33 10 8
50 37 9 351 35 8 6
52 38 7 255 33 10 3
52 35 7 6
55 30 9 661 31 6 2
61 32 4 373 21 42
0% 20% 40% 60% 80% 100%
Put investments in ethical funds
Bought organic food
Installed a solar powered hot water heater
Stop or reduce drinking bottled water
Used public transpo more often
Turned down the heat/a.c. in your house
Switched to a more fuel efficient car
Bought locally grown food
Drove your car/vehicle less
Changed household cleaning products
Replace your light bulbs with energy saving bulbs
Set dishwashers/washing machines to energy saving
Stopped using pesticides
Used fewer plastic bags
Bought energy efficient appliances
Recycled all paper/cans/plastic products
Beneficial Somewhat beneficial Not beneficial DK/ref
Mean
7.97
7.63
7.57
7.36
7.26
7.24
7.24
7.23
7.14
7.10
7.06
6.97
6.81
6.61
5.76
5.19
24
So What Do They Do?
• Respondents were asked the likelihood of their carrying out such measures given the
specific sacrifice involved or entailed in each.
• We learned that price is a deterrent. Secondarily, time is a deterrent.
• Effort or discomfort are not.
• Changes that do not require extra money and that can be incorporated in daily life such as
using the energy saving mode on appliances, changing to efficient light bulbs, reducing use
of pesticides and plastic bags, buying locally grown food, and turning down the a/c or heat
are relatively likely to be adopted even though each of these actions requires more effort or
inconvenience.
• Recycling is seen to be the most beneficial environmental measure and most Canadians
(76%) say that they are likely to recycle.
25
ACTION SACRIFICE
Drove your car or vehicle less often A longer commute on public transit or car pools
Used public transit more More time getting anywhere
Turned down the air conditioning in my home Being warm on the hottest days
Used fewer plastic bags Having to buy and keep reusable bags
Bought locally grown food Less selection
Stopped using pesticides on your lawn or garden More weeding
Changed household cleaning products to non-toxic, green products Cost 10% more
Bought energy efficient appliances that use 40% less energy Cost more and take 5 yrs for the savings to pay for themselves
Used public transportation more often A longer commute on public transit or car pools
Set dishwashers and washing machines to energy saving mode Using no hot water
Bought organic food Costs 15% more
Put your investments in ethical funds They don’t get the best returns
Switched to a more fuel efficient car Less power and space
Replaced your light bulbs with energy-saving fluorescent bulbs Cost twice as much as traditional bulbs
Installed a solar-powered hot water heater that cuts energy bills in
half
Takes 12 years to pay for itself
Recycled all of the paper, cans and plastic products in your house Having an extra recycle bin in the house and having to take it
out separately
Stop or reduce drinking bottled water Using tap water instead
26
What Don’t They Do?
• Changes that require additional spending are significantly less likely to be adopted even if
they are seen to be very beneficial to the environment.
• While energy efficient appliances are seen to be very beneficial to the environment, only
38% say that they would act on this considering the additional price.
• Similarly, solar power hot water heaters are seen to be very beneficial to the environment,
but the cost means that most Canadians would not install one.
• While a fuel efficient car is seen as less beneficial, more people are likely to buy one – for
cost savings.
• The benefits of buying organic food and putting investments in ethical funds are not as clear
to people, both are costly, and Canadians are unlikely to do either.
27
Likelihood of Acting on Measures:
How likely would you be to do the following considering the sacrifices: ?
17 35 44 4
23 41 35 1
25 38 33 4
29 35 32 4
38 34 26 3
43 37 19 2
44 37 16 2
49 36 13 2
57 25 16 2
50 35 12 2
51 36 12 1
53 33 13 2
53 31 12 4
61 28 10 1
62 27 10 2
76 18 4 1
0% 20% 40% 60% 80% 100%
Put investments in ethical funds
Bought organic food
Installed a solar powered hot water heater
Drove your car/vehicle less
Bought energy efficient appliances
Switched to a more fuel efficient car
Turn down the heat
Stopped using pesticides
Stop or reduce drinking bottled water
Changed household cleaning products
Used fewer plastic bags
Set dishwashers/washing machines to energy saving
Bought locally grown food
Replace your light bulbs with energy saving bulbs
Turn down the a.c. on hot days
Recycled all paper/cans/plastic products
Likely Somewhat likely Unlikely DK/ref Mean
8.06
7.43
7.35
7.12
7.07
7.01
6.95
6.95
6.92
6.68
6.50
6.00
5.48
5.39
5.26
4.63
28
Benefits vs. the Likelihood
• When we analyse responses of how beneficial an action is by how likely people are to do it
because of the sacrifice, recycling is the clear leader for respondents on both.
• Investing in ethical funds and to some extent, organic foods are thought to both be the least
important and the least likely to be undertaken given the sacrifice.
• Among the rest in between we see the prioritization that occurs between those that require
effort and those that require costs.
• Women and men rank these and other initiatives in a similar fashion – but women are more
likely to both consider each one more beneficial and to undertake each given the sacrifice.
29
How likely would you be to do the following, considering the sacrifices?
How
beneficia
l to
the e
nvironm
ent
would
it
be
if y
ou p
ers
onally
_____?
Turn down the heat
Use public transpo more
Buy organic food
Energy saving mode for dishwasher/washing machine
Buy fuel efficient car
Buy a solar powered water heater
Switch to energy-saving bulbs
Change household cleaning products
Turn down a.c.
Invest in ethical funds
Buy locally grown food
Stop using pesticides
Stop/reduce drinking bottled water
Recycle paper, cans, plastic
Buy energy efficient appliances Use fewer plastic bags
Use car less
Perceptual Map: Benefit vs. Likelihood
30
Corporate Environmental Measures
• Most consumers say they consider the environmental impact of a product when they make
a purchase decision.
• There are many environmentally friendly initiatives corporations could adopt during
production that would increase consumer purchasing likelihood:
– Using less packaging is the most visible and persuasive environmental action
– Using renewable energy sources for production such as solar and wind
– Reducing energy use such as turning down lights, heat, a/c
– Using recycled parts for production
– Using organic ingredients
– Using environmentally friendly building materials
– Supporting non profit environmental organizations
31
7.65
7.23
7.20
7.18
7.09
7.01
7.00
6.91
6.48
5.90
Mean
Company Environmental Responsibility
The following are steps that some companies have taken to become more environmentally
responsible or make more environmentally responsible products. Would you be more or less
likely to buy these products if a company _______?
32
A Disconnect
• Environmentally friendly or green products are overwhelmingly seen to be more expensive
than “normal” products.
• Yet two-thirds of Canadians say they don’t understand why it’s more expensive to purchase
environmentally friendly products. Women are significantly more likely to say they do not
understand why it’s more expensive.
• Two-thirds of Canadians believe that it doesn’t cost more to produce environmentally
friendly products but that companies claim a product is green so they can charge more for it.
• Seventy percent of Canadians believe that environmental claims are just marketing to sell
more products.
33
“Green” Pricing
How much do you agree/disagree with the following statements: ?
26 44 17 5 7
30 37 19 6 8
34 31 20 10 5
0% 20% 40% 60% 80% 100%
I believe that many environmental claims are just marketing to sell
more products
I don't think it costs more to produce environmentally friendly products
- I think companies just use that claim to charge more for a product
I don't understand why it is more expensive to purchase products
that are environmentally friendly
Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref
34
Clearing up the Confusion
• Most Canadians say there are so many conflicting claims about the environment that they’re
not sure what to believe.
• Canadians overwhelmingly want regulation and labeling to clear up the confusion.
– What is just a marketing ploy?
– What is legitimately environmentally friendly?
• Eighty-five percent of Canadians want standards enforced on producers and labeling that
certifies and explains terms such as organic, low emissions, green.
• Two-thirds of Canadians say the term “green” has been used so much that it doesn’t have
much meaning for them anymore when a company claims it.
35
“Green” Marketing
How much do you agree/disagree with the following statements: ?
8 26 39 20 7
11 39 31 12 8
17 42 23 11 7
18 47 20 9 6
48 36 7 4 6
52 34 6 3 6
0% 20% 40% 60% 80% 100%
I don't understand what most of the enviro terms used on products
mean so I don't pay attention
I don't know how to judge which products I should ensure are enviro
friendly and which are less important
There are so many conflicting claims about the environment that I’m
not really sure what the right things to do are
The term "green" has been used so much that it doesn't have much
meaning to me when I see a company claiming a product is "green"
The gov't should provide guidelines for companies to follow so we
understand what terms like green/organic/low emission/etc. mean
There should be labelling regulations so when a producer says
green or enviro friendly, the consumer knows what that means and
the company has to meet standards
Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref
36
Buying with the Environment in Mind
• Canadians are split over whether a company or brand’s environmental reputation is
important – just under half incorporate it into their purchasing decision.
• And just over half of Canadians want to know the environmental impact of a company or
product before they make a purchase.
• Almost sixty percent are willing to pay more for an environmentally friendly product because
they believe it will be worth it in the long run while the remaining forty percent are not.
Women are significantly more likely to say this than men.
37
“Green” Purchasing
How much do you agree/disagree with the following statements: ?
9 38 33 12 8
12 30 36 15 6
12 43 27 9 9
16 43 23 9 9
0% 20% 40% 60% 80% 100%
I base my purchase decisions in part on what I
know of the brand or company's enviro friendliness
I'm not willing to spend extra money for a product
just because it's more enviro friendly
I want to know how a company or a product will
impact the environment before I make a purchase
I believe it is more expensive to purchase products
that are environmentally friendly but it is worth the
cost in the long run
Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref
38
Three Types of Environmental Consumers
• There are three groups of consumers when it comes to making purchasing or behaviour
decisions based on the environment BUT importantly – eighty percent of Canadians are at
least moderately likely to make purchasing and lifestyle decisions to benefit the
environment.
The three types are:
1. the strong environmentalist (42%)
2. the moderates (41%)
3. the overwhelmed and unconvinced (18%)
• These groups are principally distinguished, not by demographics, but by attitudes and
commitment to the environment.
• These groups do not differ by income, education, child status, or age.
• Women are significantly more likely to be strong environmentalist and men are significantly
more likely to be overwhelmed and unconvinced.
39
Strong Moderate Unconvinced
Total 42% 41% 18%
Atlantic 37% 44% 19%
Quebec 47% 42% 12%
Ontario 44% 38% 18%
West 36% 42% 22%
Environmental Consumers: Regional
• Some of the regional differences between Quebec and other Canadians is their higher
proportion of strong environmentalists and low number of unconvinced. As was mentioned,
the Canadian distribution of these groups is about 40% strong, 40% moderate and 20%
unconvinced – Quebec is the only province that strays quite considerably from this
distribution. Slight differences are seen in the other regions – Ontario has slightly more
strong environmentalists, and the Atlantic and the West have slightly fewer.
This would account for Quebec’s high level of concern for the environment and motivation to
make changes in their lives.
40
Strong Environmentalist Buyers
• This group of forty percent of Canadians are very likely to make purchasing decisions to aid
the environment even if it costs more.
• These people are very concerned about the environment – it is the primary motivator – 62%
say they are very concerned.
• More than half say they consider the environmental impact most of the time when they
make a purchasing decision and are very motivated to make changes in their life to benefit
the environment.
• They are the most likely to say they are financially able to make changes in their personal
lives to benefit the environment (even though they are no more wealthy than other groups).
41
Strong Environmentalist Buyers
• This group is distinguished not simply by willingness to take personal action but because
they also demand action of companies and brands.
• They are the most likely to want the government to regulate and clarify environmental
impacts – so marketing claims rest on fact.
• They want to know a company’s environmental record and they invest in ethical funds.
• They are significantly more likely to pay more for environmental products and to make
significant lifestyle changes such as public transit or carpooling.
• Note however that fully 70% even of this group believe that it does not cost more to produce
environmentally products but instead companies use that claim to charge more.
42
Strong Environmentalist Buyers
• There are no demographic distinctions for this group except gender and Quebec.
• This is an exceptional area in that it is truly attitude driven.
• Women are significantly more likely to fall into this group than men (half of women are
Environmental buyers compared to 40% of men).
43
The Moderates
• This group of forty percent of Canadians report considering the environment when they
make purchasing decisions but cost gets in the way.
• They are slightly less concerned about the environment than the Strong Environmentalist
Buyers yet 80% of them say they consider the environmental impact most or some of the
time when they make a purchasing decision.
• And while three-quarters say they are very or somewhat motivated to make personal
changes to benefit the environment, they see themselves as being unable to afford to– just
one third say they are very (4%) or somewhat financially able to make changes to help the
environment.
44
The Moderates
• Price is the biggest deterrent to this group. They are less likely than the Environmental
Buyer to spend more money for environmentally friendly products.
• They are also less likely to expend time or effort.
• The Environmental buyer and the Moderate are equally skeptical of marketing
environmental claims and increased costs of environmental friendliness.
• They both would like government regulation and standards.
45
The Unconvinced
• This twenty percent of Canadians tends not to be very concerned about the environment.
• It is not a purchasing factor for them nor does it motivate them to change behaviour.
46
Benefit: Strong Environmentalists
How beneficial to the environment would it be if you personally…?
(Strong environmentalist consumers, n=619, who indicated “very beneficial”)
47
Benefit: Moderate Environmentalists
How beneficial to the environment would it be if you personally…?
(Moderate environmentalist consumers, n=565, who indicated “very beneficial”)
48
Benefit: Unconvinced Environmentalists
How beneficial to the environment would it be if you personally…?
(Unconvinced environmentalist consumers, n=261, who indicated “very beneficial”)
49
Critically Important
• Even those who are most committed to making lifestyle changes and spending more in
order to help the environment are very skeptical about company claims – 75% believe that
environmental claims are often just marketing ploys.
• This is even higher among those who are not willing to pay more or make life style changes
to help the environment.
50
Who do they trust?
• Consumers look to environmental groups or research organizations for credible information
on the environmental impact/record of products and companies.
• Governments and family and friends are the next most trusted.
• The media, the internet and companies themselves are the least trusted.
51
6.5
6.4
6.1
5.8
5.4
5.3
4.8
4.5
4.6
0 1 2 3 4 5 6 7 8 9
Internet blogs
Companies who manufacture
Media
The federal government
The provincial government
Friends and family
Enviro organizations whose job
it is to lobby the govt for change
Research organizations
Non profit enviro organizations who work in the field
Credibility of Sources
“When you are looking for information about the environment or about the environmental
friendliness of products, services, or companies, there are many sources to turn to.
How much do you trust the following:?”
52
Corporate credibility
• How do corporations “sell” their environmental credentials and the programs they are
undertaking when consumers view them as not credible.
• It isn’t the information that is being imparted, it may be the way it is being sold.
• Consumers want tangible, practical information provided to them in an educational and
accessible manner. The environmental focus should appeal to consumer’s values and be
seen to reinforce the company values.
• Consumers do not want environmental platitudes which they feel are trying to “sell” them on
the company.
• Explaining to consumers why environmentally friendly products cost more to manufacture or
produce and giving them tools to make their own choices about what to buy is a prime
example of how a company can build credibility even in a less trusting environment.
53
Conclusions
• Our focus on the environment and purchasing decisions in this quarter’s survey occurs just
as Canadians report greater concern about the economy.
• The environment and to a lesser degree climate change are important issues for many
Canadians.
• But those are joined by rising concern about the economy and inflation notably with respect
to gas prices.
• This survey speaks to what consumers are willing to do when it comes to the environment
and how those actions are affected by sacrifice, particularly cost.
54
Conclusions
• Environmental impacts are now a primary purchasing consideration – a significant majority
of consumers are evaluating the environmental impacts of their purchasing and
consumption.
• There is a crisis in confidence in company/product claims of being “green” or
“environmentally friendly” – three quarters of Canadians believe it could just be a marketing
ploy.
• Consumers want clarity and assurance from a disinterested third party. There is
overwhelming demand for government to set standards and regulate environmental claims.
55
Conclusions
• Contributing to the lack of consumer confidence is the belief that environmentally friendly
products are more expensive but do not cost more to produce – essentially a gap created
for corporate profits.
• Forty percent of Canadians should be considered Strong Environmentalist Buyers – they
are very concerned about the environment and make purchase and lifestyle decisions to
benefit the environment.
• These environmentalist buyers are skeptical of corporate claims and want to know a
company’s environmental record.
• This group is the most likely to be willing to spend more for products that will benefit the
environment.
56
Conclusions
• In addition to the Strong Environmentalist Buyer, another 40% of Canadians consider
environmental impacts most of the time when purchasing. Cost is an issue for this group.
They are unlikely to spend more for an environmentally friendly product.
• However, there are several actions that companies can take that illustrate a product is more
environmentally friendly:
– Less packaging
– Use of recycled items/parts
– Use of renewable energy and/or improved energy efficiency during production