Green Is In At CES, But Is It Real?

OTL writes "You've heard the talk of 'Green' throughout the whole of 2008, but the way a product affects the environment will be a huge consideration in consumer buying habits, at least when it comes to gadgets. But, the CEA report also said that consumers are very skeptical about the green claims made by high-tech firms for their products. More than 38 percent of those interviewed by the CEA said they were confused by green product claims and 58 percent wanted to know the specific attributes that prompted hi-tech firms to label their products green."

Comments

Really?

[cayenne8]

"...the way a product affects the environment will be a huge consideration in consumer buying habits, at least when it comes to gadgets. "

Is this really the case?

Honestly, I don't know anyone that takes into consideration how 'green' something is before they purchase it...especially gadgets.

I know there is a sizable minority growing that is concerned about everything 'green', but, really...in the general public, while they may even be vocally in favor of 'green' things...does it really affect their everyday life and their purchases?

Those green advertising dollars are certainly lost on me...I buy stuff I want because I want it, without regard to greenness or anything else.

Re:Really?

[Fozzyuw]

Honestly, I don't know anyone that takes into consideration how 'green' something is before they purchase it...especially gadgets.

Actually, there are some but the general market research that my company has conducted (as well as many others I'm sure) will show that almost no consumer will pay more for a "green" product but they will likely choose a "green" product over a "non-green" product if all other things are equal. Which comes down to a simple idea of perceived value. In this case, the "green" product will make the consumer feel like they're getting more for their money (as intangible or obscure as it might directly be).

However, there is a very small segmentation of society that will "walk to walk", so to speak, and spend considerably more money on products labeled green. Most will not and most that do buy green products buy them for financial, not environmental, reasons. Meaning, they bought a Hybrid because they figured they'd be saving on gas costs. Or they bought CFL bulbs to save money on the electric bill. Stuff like that.

Very few consumers, if any, will pay more for green products. Simply said, spending money on making your product green, which will increase the price of your product, is not a good business decision. Luckily, most companies are finding out that they can do "green" things and save money. Turning off the lights and computers at the end of the day. Finding ways to reuse/recycle manufacturing waste or even implementing better recycling programs can save a company a lot of money while benefiting the environment.

I'm close enough to these ideas as the Market Research guy sits right across from me and has shown me our report on the "green" topic. I'm also part of my companies "Green Team" for which we've implemented and discussed some of the above examples. Just by implementing a better recycling program, we're cutting down a sizable percentage of waste going to a landfill, which in-turn, means less cost because waste removal is charged by the weight. As well as, once being charged for hauling away recyclables, there are companies who will do it for no cost because they actually make a fair amount on turning in recyclables.

Though, one interesting statistic from the last Executive Leadership Team minutes was that my company has managed to reduce overall electrical consumption by a few percentage points but the total costs more than doubled. Ouch.

Though, the whole "green" push has turned into "green-washing", where companies are overstating or trying to point out excessively small environmental impacts for the sake of PR.