The challenge of green marketing
Great post from Joel Makower on the challenge of getting consumers who support “green” products to begin practising what they preach. He points out the chronic 4/40 gap — the fact that 40 per cent of consumers say they would purchase ”green” products if available, but only 4 per cent actually do. I struggled with this same issue in the area of consumer privacy protection. Surveys say 80 to 90 per cent of North Americans cherish their privacy, but few of them are willing to take the actions necessary to protect it. You know what I’m talking about — the willingess to hand over personal information just to get a $5 coupon off a product. Air Miles is a perfect example of a popular program that offers little in exchange for details of your life.
Makower says the solution to the green market dilemma, or at least part of it, is a combination of things: increasing consumer awareness and choice; promoting innovative policies, accelerating demand for greener products; demand corporate accountability; and encouraging sustainable business practices.
These all make great sense. But let me add one pet peeve as a consumer trying to be green: corporations often sell “green” products at a premium for no reason. I realize that as demand increases prices will eventually fall, but I fail to see why I must pay a hefty premium for biodegradable baby wipes that can be flushed down the toilet or coffee filters that aren’t bleached. For example, I was at the local Loblaws store last week and purchased bleach-free “green” coffee filters. When I got home I realized I paid a 60 per cent premium?
Am I wrong in thinking both of these products could be manufactured for less? I think demand for green products does exist, and people are willing to pay if they don’t feel they’re being ripped off.


Tyler Hamilton is senior energy reporter and columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the cleantech market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper. Tyler can be reached at tyler@cleanbreak.ca
January 23rd, 2006 at 10:37 am
Thaaaank You for pointing out what is the weak point so far in green marketing. It is the price differential of green products. There are SOME products that should get a price premium. Oganic milk is a good example. The reason it is organic is that the dairies don’t employ factory farming techniques. In Austin, TX, I pay $5.45 for a gallon of Horizon Organic, when I could purchase the non-organic store brand for $3.35. I clench my teeth every time, but I understand.
My business is socially responsible investing. Many of the funds in this space charge management fees 50 – 100 percent more than a non-SRI fund. Why? They like to claim it is a size issue, but I doubt that. After a few hundred million, there are no more benefits to economies of scale.
How about banking? I’ve gotten pleas from my bank and credit card companies that persuade us to get paperless statements to save trees, but then charge a fee for accessing your statement via software. Huh?
How about hybrids? It does not cost an extra $4,000 to equip a hybrid, yet not only are they charging (and getting) this premium, you can’t begin to get discounts off sticker. The premium completely wipes out the benefit of gas savings for most drivers.
We, as an industry, need to do better.
Mark Brandon
Sustainable Log – News and Views for Socially Responsible Investors
http://sustainablelog.blogspot.com
http://www.firstsustainable.com