The “Awareness” Trap: Why most companies are failing to change Consumer Behavior

The “Awareness” Trap, are we even aware of it? For decades and since the movement towards a “greener” world, sustainability-driven businesses and organizations have been trying to achieve one goal and one goal only: to change consumer behaviour from purchasing and using traditional and conventional goods towards green or greener goods. Sille Krukow, founder of Krukow Behavior Consulting, asked these two questions: Do you want to live a long and healthy life? And do you want to leave behind a better world for your children? Most people would answer yes, but the real question is would they really follow through with what they say they will do? As expected, many people would agree that their behaviour does not always live up to their words. However, this is where company and organization brand plays a role in helping people connect the dots from their words to their actions.

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Currently, companies and organizations have been measuring their success of converting people into “green” purchasers through “awareness” as they hope to reach out to consumers and help them to live more sustainable lives that correspond to their ideals. “Awareness” would be measured with questions such as “how many people saw our ‘green’ campaign? “How many hits did we get?” And “how many people liked our message?” At the end of the day, “victory” is only defined to the extent of motivation and imparting knowledge and is not enough to propel the “green” movement. The hidden root of the problem is that brands assume consumers to be “perfect”, and what they mean by that is that consumers will take the knowledge that they have received and act upon it. In reality, they do not follow through because they are distracted with numerous other tasks in life to care about one more thing. With businesses and organizations trying to help consumers switch to more sustainable behaviour purely through raising awareness, the outcome just becomes another form of green washing. But fear not, this is where behavioural economics comes in.

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Behavioural economics deals with how choices are presented to consumers and examines the environments in which decisions are made. In traditional stores and supermarkets, choice architecture usually focuses solely on revenue maximization, ie. Products that bring the greatest profits are those that are in the “hotspots”, where purchases are most likely to occur. With behavioural economics, stores and supermarkets can explore opportunities to change their choice architecture and gear it towards the goals in sustainability, ie. Making it easier for consumers to differentiate and select sustainable options, changing store environment, layout, and design, and incorporating “nudges” such as associated smell, sound, or color. At the end of the day, behavioural consultants and green companies and organizations need to identify consumers’ underlying goals and use techniques such as a cost-benefit analysis to determine which nudges will instigate the greatest change and effect incurring the smallest expense. Only then will there be real change in consumer behaviour towards sustainability.

Source: http://www.sustainablebrands.com/news_and_views/stakeholder_trends_insights/adam_gerschel-clarke/awareness_trap_why_most_companies_ar

 

 

 

Green Is the New Black: Levi’s, Nike Among Marketers Pushing Sustainability – Responding to a Consumer Behaviour shift

According to Natural Marketing Institute’s shades of green, I would most probably fall under the “conventionals” category describing myself as someone who is aware and for the environment but does not always uphold sustainability because of laziness and costs, which play into my lifestyle choices and purchasing power. Personally speaking, with this mentality I am only most likely to purchase sustainable products if the masses start adopting and purchasing these new green products as trendsetters. In parallel but on the supply side of the story, the same chain effect is happening with companies in the consumer goods and services market.

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Companies are responding to consumers’ behaviour shift like a trend. Conglomerates like Levi Strauss, Nike and J&J amongst many of the big players out there are adapting to the new market of green products and adopting this new emphasis on green products. Levi’s claims that its jeans are made from just about eight recycled plastic bottles and Nike claims that its knitted sneakers cut manufacturing waste by 88 percent. As evidenced by a survey conducted by brand consultancy BBMG in 2013, “more than a third of global consumers, including 40 percent of millennials, view style, status and environmentalism as intertwined”. To these consumers, sustainability has changed from being “the right thing to do” to being “the cool thing to do”, shifting the emphasis of valuing the need to do it to the want to do it. Based on this new change in perspective, for companies it is really not about offering a niche green product but rather offering a green band through building sustainability into the bloodline of the company in every single process no matter how big or small.

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Companies are slowly but gradually shifting their segmentation, targeting and positioning from offering products that fall under the “feel-good factor/transient” quadrant that encompasses altruism and an external locus of control to the “value parity/green differentiation” quadrant that encompasses economic motives and an internal locus of control. Offering green products to the market is not enough to gain a competitive edge over competitors anymore, the new era of consumer preferences are now demanding companies as a whole to become green and this in fact is the new way to gain a competitive edge over competitors.

http://www.adweek.com/news/advertising-branding/green-new-black-levi-s-nike-among-marketers-pushing-sustainability-153318

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