Understanding the Green Consumer, One Shade At A Time
There are many customer segmentation models out there, and our Customer Segmentation Series will go over the most popular ones – such as GfK’s Green Gauge, a market segmentation model that divides the green industry in five parts, based on online and in-home interviews.
Green Gauge, introduced by Roper Starch, gives you an exclusive look at how consumer concerns for environmental issues can affect your business. This comprehensive model provides insight into consumers’ attitudes and buying behaviour, allowing both small businesses and corporations to strategically plan and execute their green marketing campaigns.
Green Gauge covers many important areas, including:
- Top consumer environmental concerns
- Environmental actions consumers are taking
- The role of individuals, government and business in protecting the environment
- Industries consumers view as eco-winners and losers
- Consumers’ willingness to pay a premium for earth-friendly products
- Priorities consumers place on economic growth versus environmental responsibility
- Impact of a company’s environmental record on consumer decisions
- Where consumers go for environmental information
According to Starch’s Green Gauge, green consumers can be divided into:
True-Blue Greens – Environmental leaders and activists usually belong to this group. They’re most likely to walk the green talk, representing almost one third (30 percent) of the population, according to the 2007 Green Gauge report. Nearly half (48 percent) turn to environmental groups as their main source of green information.
Greenback Greens – Greenback Greens don’t have time to be completely green and aren’t likely to give up comfort and convenience for the environment. They express their commitment through a willingness to pay higher prices for green products. Greenback Greens represent 10 percent of the population according to the 2007 Green Gauge study, and nearly half (49 percent) get information on green issues from newspapers. Most businesses target this specific segment.
Sprouts – This group represents the environmental “fence sitters,” who buy green only if it meets their needs. Sprouts represent just over one quarter (26 percent) of the population, and one third cite newspapers as their main source of green information.
Grousers – Generally uninvolved and disinterested in green issues, Grousers believe individual behaviour cannot improve the environment. They represent 15 percent of the population. Newspapers, once again, serve as Grousers’ major information source on green issues.
Basic Brows/Apathetics – the least engaged group, Basic Brows or Apathetics aren´t concerned enough about the environment to take action. They believe environmental indifference is the mainstream. This group represents just 18 percent of the population, and TV programs are their main source of environmental information.
Have you used GfK’s Green Gauge segmentation model in your marketing strategy? Leave a comment below or drop me an email.
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Couple of things don’t sit right…but then again, I didn’t do the research.
1. 30% of the population falls into the greenest of the green categories side-by-side with activists and environmentalists? Again, I didn’t do the research. But being part of a solar energy company and marketing to consumers and commercial prospects – this number seems way too high.
2. Newspapers are the leading source of green information for all of these groups? Bullcompost.
@David S,
Thanks for your comments.
I was also surprised when I saw those numbers. I’ve researched a little deeper, and it seems that these numbers went up significantly when the survey switched from in-home to online. Some researchers have noticed that people tend to “beautify” their actions and beliefs when they’re in the security of their homes, behind a screen, answering a survey.
As to newspapers being the leading source of information: that seems to be true only to Greenback Greens, Sprouts and Grousers. True-Blue Greens tend to trust environmental groups as their main source of information, and Apathetics rely on TV.
Again, this is just one model – there are many out there, and I don’t believe these models are 100% reliable. What is great about them is that they do shed some light into the green market and its structure.
Check out future posts on this series – I’m interested to hear your opinion on the segmentation model we’ll be writing about next.
In trolling the Internet for stories about green development in the construction industry (’cause that’s what I do!), one thing that has been an important force in changing perceptions about green has been the movement away from guilt and morality, and more toward ROI. In terms of marketing, this just makes sense. At this point, green markets are formed because green represents a competitive advantage to development firms who can deliver long-term energy cost savings.
No one wants to be preached to. But, everyone wants to get a good ROI. I feel that this is a very encouraging trend.
Cheers for the post!
Any demographic info on the folks in these groups? Who is making green buying decisions for the home? From what I’ve been experiencing and reading – it’s female.
@David S
You can get that information by contacting GfK Research Dynamics directly at http://www.gfknorthamerica.com/contact/index.en.php.
@Sofia Ribeiro
Thanks! Appreciate the help.