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

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

Tim HerbertSenior Director, Research

Consumer Electronics [email protected]

Going GreenGoing GreenAn Examination of the Green Trend and What it Means to Consumers and the CE Industry


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, 2008.

• 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, 2008. 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.


Green Awareness on the Rise?


Understanding of Green Terminology Varies

FamiliarUnfamiliar

Somewhat Familiar, Somewhat Unfamiliar

Percent of adult consumers familiar with terminology


Understanding of Green Labels/Logos Varies

82%

16% 15%

86% 45%

16%

% of consumers that have seen the following logos


Awareness of Green Offerings Highest for Grocery Store Items

% of consumers that have seen or heard about green product offerings


Cars Top List of Products for Greening

Important Very Important

73%

71%

70%

65%

63%

47%

44%

Products where consumers say it’s important to have environmentally friendly attributes


Some Consumers Are Suspicious of Green Claims

AgreeDisagreeSomewhat Agree,

Somewhat Disagree

The Cadillac Hybrid Escalade


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 don’t know anything about it.” - Male, 45-49, White/Caucasian “It’s 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


Green Behaviors and Attitudes


Understanding Green Attitudes

AgreeDisagree

Somewhat Agree, Somewhat Disagree


12

Teens & GreenAges 12 - 17


Frequency of Green Behaviors VariesAlwaysUsually

SometimesRarely/never

87% of consumers say it’s important to recycle electronics compared to 78% in 2005. Consumers recycling TVs, computers and VCRs at a rate 26% higher in 2007 than in 2005.


14

FemalesMales

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


Overall

Environ-mentally

Conscious

Green CE Attributes Important

Plan to Purchase Green CE Over

Next 12 MonthsPay all or some bills online 59% 63% 64% 66%Purchased compact florescent light bulbs (CFLs) 53% 68% 64% 65%Receive all/some account statements electronically 50% 56% 58% 60%Purchased energy efficient appliances 28% 35% 34% 40%Installed a programmable thermostat 13% 18% 17% 19%Participate in organized enviro initiative (e.g. club) 6% 9% 9% 9%Purchased a hybrid vehicle 2% 2% 2% 3%None of the above 20% 11% 10% 13%

As Expected Green Enthusiast Engage at Higher Rates

Behaviors in past 12 months Consumer segment


• 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 45-54 age segment say they always recycle compared to 25% of the 18 – 24 segment. Additionally, 68% of the 45-54 segment says they always turn off the lights when not in use compared to 46% of the 18-24 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


Reasons for Engaging in Green Behaviors


Reasons for Not Engaging in Green Behaviors

FemalesMales

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:Women 20%Men 11%

Boomers 20%Gen X 14%

Plan to Buy 24%Green CE


Green – An Emerging Purchase Criteria?


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.


Green Perceptions Impact Purchase Decisions

Men Women

% of consumers saying that a company’s reputation and philosophy regarding the environment impacts their

decision to try the company’s product for the first time

A similar % of consumers say the same regarding their willingness to continue using a company’s products.


Attributes Associated with Green CE Products


Product Packaging Plays a Role

Attributes Associated with Green Packaging

Other Factors:Environmental sustainability 51%Reduced carbon footprint 45%Product shipped locally 34%Lower product shipping weight 34%


Many Consumers Unfamiliar with the Green Credentials of Products and Companies

FamiliarUnfamiliarSomewhat Familiar,

Somewhat Unfamiliar


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.


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.


Helps the EnvironmentWanting 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


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Quality and Performance a FactorWhile 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, 35-39

“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


38%

21%

12%

8%

38%

37%

37%

37%

22%

31%

45%

49%

No paper instruction manual, online only

No box for in-store purchase (protective bag only)

$1 more for device if packaging made of recycled material

Portion of purchase price donated to environmental cause

Other Purchase Considerations

More LikelyLess Likely No Impact


The Logistics of Buying Green


Green CE Purchases Dominated by Early Adopters

Product purchased – past 12 months Overall Men Women

Early Adopter

Mid Adopter

Late Adopter

Green CE 10% 13% 8% 18% 11% 6%Green CE accessories 6% 6% 7% 12% 7% 3%Neither 86% 84% 88% 76% 84% 92%

44%43%

33%38%

26%34%

46%32%32%

36%33%33%33%

Green attributes importantEnvironmentally conscious$25,000 - $50,000 income

$75,000+ incomeLate adopters

Middle adoptersEarly adopters

Gen Y (1980 - 1990)Gen X (1965-1979)

Baby Boomers (1946-1964)Female

MaleTotal

Definitely or Probably will Buy a Green CE Product Over Next 12 Months


Terms that Best Describe Green CEFrom consumers’ point of view

Only want to know whether product is green or not

Want to know specific attributes that make CE product green


The Voice of the Consumer: What Does Green Mean?

Green = Environmentally FriendlyAlmost 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 = RecyclingThe 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


Green Credentials: Keep it SimpleWays consumers want to learn that a CE product is environmentally friendly or green

Total Male Female 18-24 25-34 35-44 45-54 55+

Logo printed on package/box 49% 45% 52% 49% 47% 46% 48% 51%

Description on package/box 41% 37% 45% 40% 44% 41% 39% 40%

Display at a retail store 35% 30% 41% 35% 38% 34% 36% 34%

Sign or placard next to the product 32% 27% 36% 31% 31% 29% 32% 35%

Removable logo sticker on the product 26% 23% 30% 29% 35% 23% 26% 21%

Non-removable logo on the product 24% 26% 23% 19% 18% 22% 33% 28%

Product's owners manual 24% 24% 23% 21% 19% 20% 29% 27%

A magazine, i.e. Consumer Reports 23% 25% 22% 15% 21% 17% 28% 32%

Government website 22% 21% 23% 21% 24% 23% 22% 20%

Manufacturer’s website 19% 18% 21% 20% 18% 20% 20% 18%

The package/box is green in color 17% 11% 23% 22% 20% 18% 16% 11%

Retailer’s web site 16% 14% 18% 21% 20% 16% 14% 11%

Some other online source 16% 18% 15% 15% 15% 12% 17% 21%

Part or all of the product is green in color 9% 6% 12% 11% 13% 10% 6% 6%


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 KnowingSometimes “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

The Importance of a LogoTo 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 ConfusingMany respondents find the current labeling system of “green” products confusing and inconsistent. To alleviate this concern, and the skepticism about a company’s 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


No Single Source for Green Verification

FemalesMales

Sources consumers would like to rely upon for affirming a CE product’s environmental credentials.

Example of third party validation: Clorox & Sierra Club partner

+


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 it’s ‘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.


Thank You

Tim HerbertSenior Director, Research

Consumer Electronics [email protected]

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

Documents

green terminology

green awareness

green attitudes

green trend

term green

green mean

green labelslogos

green confusion