Although research on whether or not eco-labels effect consumer behavior is a little dated, its relevance is not. As a matter-of-fact, it is even more relevant today than it ever was considering the economic climate and the need to spend less dollars and make a green product valuable enough that customers purchase again and again.
In 2004, a Danish study analyzed the effect of the Nordic swan eco-label on Danish consumers' decision. It drew the following conclusions:
• Consumers were willing to pay 10-17% more for eco-labeled toilet paper and detergents;
• The market share for the Nordic swan labeled products is estimated to 6-7%;
• When there are more sustainable alternatives on the market, as e.g. reusable dishcloths instead of kitchen paper, consumers will not pay extra for eco-labeled products;
• Consumers have confidence in the label.
Compare this to the U.S. study by NMI in 2007:
They had similar findings in the U.S. with a study published 3 years later, except percentages were higher. They found the labels and certifications that people were more aware of and understood, due to their longevity, were the most impactful to consumers. This would make logical sense.
You’ll also notice by the percentage points that they found Energy Star ratings were the most widely recognized. I would expect to see the recycling symbol come pretty close the Energy Star today. Certifications make sense when the consumer and/or industry recognizing them, it helps hold credibility and create greater transparency—and you have less to prove.
Their study revealed that nearly ¾ of LOHAS consumers, the consumers most interested in sustainability and the earliest adopters of sustainable products , agree that a seal or certification mark indicating a product is environmentally-friendly raises the likelihood that they will buy it.
Before you assign a certification to your product, make sure to determine if your customers recognize it and appreciate it. Will it make them believe in your product or and believe it is the real deal? Who else is certified?
The Energy Star label is one of the most recognized, yet it is one of the most scrutinized as well since quite a few products were labeled as Energy Star, people questioned its validity.
Does it mean you should stop using it if you have this on your products?
No. It just means you need to back up why it was rated Energy Star Compliant, only this will allow your customers to see how you are the real deal and allow you to rise above the green clutter.
Helping You Understand and Profit from Consumer Health and Green Trends
Colette Chandler
