People say they want sustainable products, but they don’t tend to buy them. Here’s how to change that.
Lloyd Miller
Summary. Companies that introduce sustainable offerings face a frustrating paradox: Most consumers report positive attitudes toward eco-friendly products and services, but they often seem unwilling to follow through with their wallets. The authors have been studying how to encourage sustainable consumption for several years, performing their own experiments and reviewing research in marketing, economics, and psychology. The good news is that academics have learned much about how to align consumers’ behaviors with their stated preferences. Synthesizing these insights, the authors identify five approaches for companies to consider: use social influence, shape good habits, leverage the domino effect, talk to the heart or the brain, and favor experiences over ownership.
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Idea in Brief
The Challenge
Most consumers report positive attitudes toward eco-friendly products and services, but they often seem unwilling to pay for them. Insights from behavioral science can help close this gap.
The Solution
Consider five approaches: use social influence, shape good habits, leverage the domino effect, decide whether to talk to the heart or the brain, and favor experiences over ownership.
The Result
People’s desire to conform to the behavior of others—and the habits they develop over time—influence the likelihood that they will consume sustainable offerings. The good news is that sustainable choices often lead to further positive behavior.
On the surface, there has seemingly never been a better time to launch a sustainable offering. Consumers—particularly Millennials—increasingly say they want brands that embrace purpose and sustainability. Indeed, one recent report revealed that certain categories of products with sustainability claims showed twice the growth of their traditional counterparts. Yet a frustrating paradox remains at the heart of green business: Few consumers who report positive attitudes toward eco-friendly products and services follow through with their wallets. In one recent survey 65% said they want to buy purpose-driven brands that advocate sustainability, yet only about 26% actually do so.
A version of this article appeared in the July–August 2019 issue of Harvard Business Review.
Read more on Consumer behavior or related topics Sustainable business practices and Marketing
KW Katherine White is a professor and the academic director of the Dhillon Centre for Business Ethics at the University of British Columbia’s Sauder School of Business.
DH David J. Hardisty is an assistant professor at the University of British Columbia’s Sauder School of Business.
RH Rishad Habib is a PhD candidate in the Marketing and Behavioural Science Division at the University of British Columbia’s Sauder School of Business.
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