Here’s an article to share with your sales group. Understanding why people choose to “go green” and buy environmentally-friendly products can help companies decide how to maximize the benefits of their own “green” program and improve the bottom line. Why do people go out of their way to find and purchase recycled paper towels rather than non-descript ones, energy-saving appliances, and hybrid cars? According to the authors of a published paper in the Journal of Personality and Social Psychology (Vol. 98, No. 3, March 2010), green purchases are made primarily for status. Customers will more likely buy such products – even at inflated prices – when they know other people will notice.

The researchers conducted 3 experiments, using more than 400 participants, to determine the roles that price, quality, and social reputation play in determining whether and why customers opt for environmentally-friendly products. The authors found that people’s purchasing attitudes and choices differed if they shopped online alone at home vs. in a store. People indicated a preference to purchase more expensive green products in public in stores because others would witness them making the purchase. In fact, a higher price would make a statement that the buyers who wanted to show they were willing to sacrifice for the environment. When deciding between two equally priced vehicles, one a luxury car loaded with features and the other an environmentally-friendly one with fewer high-end features, 55% of participants who were asked to consider their public status chose the green car vs. only 37% of participants in the control group, who were told to disregard reputation.

In the marketplace, the hybrid Toyota Prius is an example of this phenomenon. The Prius is openly advertised as better for the environment. Despite the fact it costs more than other conventional but highly fuel efficient non-hybrid cars, a newspaper story reported that Prius owners ranked environmental concerns last on a list of five reasons they bought the car. Their top reason for purchasing the hybrid was that it “made a statement about me.”

The bottom line is that the key to successful sales of green products is status, including ensuring that their products are sold in public spaces. Customers are looking to enhance their reputation.

CCES has the technical experts to help your company develop a “green” program to maximize financial benefits, both internally (energy cost savings) and externally (advancing sales). Contact us today at 914-584-6720 or at karell@CCESworld.com.