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Opinion
Willing to Pay More for Green?
Survey asks whether consumers will lay out more of their green for energy-efficient and environmentally friendly electronics.
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December 04, 2007 | by Steven Castle

According to survey by technology and market research group Forrester Research, 12 percent of U.S, adults, or some 25 million Americans, are willing to pay extra for consumer electronics that use less energy or come from a company that is environmentally responsible. Forrester says these consumers, called “bright greens,” are the vanguard of an emerging consumer market segment that will be an attractive target for technology companies.

Not all is rosy in the land of green, however. An Energy Pulse study done the Shelton Group, a market research and advertising firm, shows that average response among consumers who think energy conservation is important in how it impacts their daily purchase choices and activities was down in 2007 by 5 percent (from 72.3 percent in 2006). Our purchases of green products also declined in 2007, as well as our intention to buy greener products or energy-efficient homes, according to the Energy Pulse survey.

As causes of this “green fatigue,” the Shelton Group cites “greenwashing,” or the marketing of companies jumping on the green bandwagon even when they or their products may not be so green, as well as the extra cost associated with greener or more energy efficient products.

In perspective, the 12 percent of early green adopters cited in the Forrester survey is still a small number compared with other market segments. Forrester identified three distinct segments of technology consumers in the United States. The 25 million bright greens who would pay more for environmentally responsible products make up 12 percent of the market. The 90 million “green consumers” who share concerns about environmental issues, but may not pay more for environmentally friendly products represent 41 percent of U.S. adults. And the largest segment is the 96 million “non-green consumers” who make up 47 percent of U.S. adults.

Clearly, the green movement has some educational outreach to do, especially in the field of consumer electronics. Still, the number of electronics buyers interested in the environment is a market waiting to be tapped. “We fully expect green technology consumers to further emerge as a target segment for style-conscious electronics manufacturers as the industry moves beyond beige-box design,” says Forrester Research senior vice president Christopher Mines.

Among the major PC brands, Forrester says Apple’s customer base is the greenest, with 17 percent of its customers in the bright green consumer category. HP’s Compaq brand ranks second, with 13 percent of its customers in the bright green category.

“Many of the major consumer electronic manufacturers, including Apple, Dell, HP, Sony, and Toshiba, have taken early steps to green their operations and products. But moving forward, marketers and designers of consumer technology products and services will change product marketing and product design to embrace green principles like energy efficiency, lower-impact manufacturing, longer product life cycles, and recycleability,” says Forrester.

Concludes Mines, “The green leadership position is open: Which manufacturer will create the iconic Prius product in consumer electronics?”



Steven Castle - Contributing Writer
Steven Castle is Electronic House's managing editor. he has been writing about consumer electronics, homes and energy efficiency topics for two decades. He is also the co-founder of GreenTech Advocates.



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Comments (4) Most recent displayed first.
Posted by JohnnyGreen  on  12/16/07  at  12:25 PM

The premise that green electronics cost more is inaccurate and perpetuates the myth. On top of that when you add energy efficiency, longer product life and trade-in value, they actually cost less.

http://www.greenelectronics.com is a good site for finding all the latest green electronics and green computers.

Posted by Steve Castle  on  12/05/07  at  01:31 PM

Great points below! When writing this article, I wondered if these studies would cause even more “greenwashing” by companies that feel they can charge a premium for green or even pseudo-green features.

I think we will see some green electronics costing more, simply because it’s often cheaper to make them not green. Though I expect that will change rather rapidly. Pressure is on electronics manufacturers to be more green, and these studies show market pressures to produce energy efficient and environmentally responsible products that do not cost significantly more than their counterparts. I also think greenwashers will ultimately be punished in the marketplace.

That may be a glass-half-full outlook, but as more people become educated about the environment and the role electronics can play in it, both positively and negatively, manufacturers will have even more incentive to be green without charging exorbitant prices.

Posted by LexusLS600h  on  12/05/07  at  09:41 AM

The alarming trend is that it’s fashionable to be green and people are willing to pay extra for it. Case in point the “green” lexus 600 hybrid has sold more than three times what it was supposed to. From Autoblog.com: Lexus exceeds LS600h sales target by three hundred percent. It just adds to the trend of conspicuous consumption of green.

Posted by Patwoman  on  12/04/07  at  04:49 PM

I wholeheartedly support green-products, with one caveat - I don’t believe they should cost more.  Why should they?  Aren’t the manufacturers making enough profit on all the non-green products that need to be replaced more often.  My pockets aren’t deep and I believe products should have longer a service life than I’ve seen lately.  In 1982,  I purchased a remote controlled TV (a novelty then).  It lasted 20 years with only 2 trips to the repair shop for minor repairs.  I believe manufacturers have forced us into a throw-away lifestyle.  Of course, busy lifestyles make it easy to follow that easy street.  I still think we could all benefit from products that were easy to upgrade, refurbish, recycle, renew or even a new & different purpose.  If more people were less likely to jump on the “newest & greatest” bandwagon maybe the newest & greatest would be more durable, greener, less “buggy,” and have a longer service life.  If these products cost less or even the same I’d be ecstatically astounded as well as grateful.  I am the ultimate pack-rat who abhors tossing just about anything that holds a glimmer of a second life.



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