Green Marketing: Just a Tactic?

Consumers appear to be wary of companies who label their products as being `green', or environmentally friendly. The results of an Ipsos Reid study conducted this spring on behalf of Icynene reveal that a significant percentage of consumers view `green' labeling of a product as little more than a marketing tactic and that some consumers have reservations when it comes to paying for such products.

Seven in ten (70%) Americans either `strongly' (12%) or `somewhat' agree (58%) that `when companies call a product `green' (meaning better for the environment), it is usually just a marketing tactic'. Canadians appear slightly less sceptical, with two thirds (64%) of Canadians either `strongly' (10%) or `somewhat' agreeing (54%). On the other hand, three in ten (30%) Americans `completely' (4%) or `somewhat disagree' (26%) that this is the case, with four in ten Canadians either `completely' (4%) or `somewhat disagreeing' (33%).

Men appear more sceptical of `green marketing' than women. In the US study, 75% of the men believe that labeling a product green is just a marketing tactic, compared to 65% of the women. In the Canadian study, 71% of the men felt this way where as 57% of women shared this view.

By region, Americans living in the south (72%) are the most likely in all US regions to believe that labelling a product green is just a marketing tactic. North-easterners (58%) are the least likely to believe this. In Canada, British Columbians (71%) are the most likely in all regions of the country to believe this as just a marketing tactic; Atlantic Canadians (58%) are the least likely.

Four in Ten Not Willing to Pay More for Green Products

Four in ten (44%) Americans either `completely' (10%) or `somewhat agree' (34%) that they are not willing to pay more for upfront for green building products even though they know them to be better for the environment, and that they have the potential to save money in the long run. On the other hand, six in ten (56%) `completely' (10%) or `somewhat disagree' (46%) that they would not be willing to pay more upfront for home building products that cost more upfront.

Canadians were of a similar opinion, were four in ten (40%) Canadians either `completely' (7%) or `somewhat agree' (33%) that they are not willing to pay more for upfront for green building products even though they know them to be better for the environment, and that they have the potential to save money in the long run. Again in synch with US opinion, six in ten Canadians `completely' (13%) or `somewhat disagree' (47%) that they would not be willing to pay more upfront for home building products that cost more upfront.

Men are less willing than women to pay more upfront for green products for their home. In the US, 49% of men expressed this view, compared to 39% of women. The Canadian study showed 44% of men versus 36% of women.

A Tale of Two Countries

On the issue of green products, more Canadians claim to be knowledgeable about the benefits of a green product than their American neighbors. Furthermore, they are less sceptical about green products being simply a marketing ploy. A comparison of the same study completed in both the United States and Canada reveals that:

• More Canadians (70%) than Americans (63%) agree that they clearly understand the benefits of a building product that is advertised as green
• More Americans (70%) than Canadians (63%) agree that when a home building product is called green that it is a marketing tactic
• Americans (44%) are slightly more likely than Canadians (40%) to indicate that they are not willing to pay more upfront for green building products, despite their potential environmental and cost-saving benefits

These are some of the findings of an Ipsos Reid poll conducted on behalf of Icynene from April 19 to April 23, 2007. For the survey, a representative randomly selected sample of 1236 adult homeowners was interviewed online. With a sample of this size, the results are considered accurate to within 177 2.7 percentage points, 19 times out of 20, of what they would have been had the entire adult population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure that the sample's regional and age/sex composition reflects that of the actual population according to Census data.