How do Consumers React to Environmental, Social and Health Positioning in the Food Industry?

Major Research Questions:

1.     What environmental and social messaging resonates best with consumers?

   Does consumer behavior toward green products change depending on whether product consumption is conspicuous or private?  If a difference does exist, how does this behavior change?

I am a sucker for social and environmental positioning.  Throw a Fair Trade label on a box of tea or bag of coffee and I’m sold.  Heck, I spent a year of my life helping farmers get Fair Trade certifications.  Needless to say, I fall under the “Greenest Americans” minority in Joel Makower’s “American Environmental Worldview” bell curve.  Unquestionably, environmental and social marketing works well if I am the target.  Since I am such a fan of this new wave of marketing, I am really interested in trying to remove my personal biases and look at how the American consumer base is reacting to this nontraditional marketing. 

I am choosing to concentrate on the food sector because this industry is riddled with impulse buying decisions.  Food purchases are relatively inexpensive, so customers spend less time researching and preparing for the buying process.  Further, customers usually do not engage in a long deliberation period at the point of purchase.  Habit and price are assumed to dominate purchasing decisions in this space, but the proliferation of alternatively positioned products and the rise of retail concepts such as Whole Foods Market suggest that other factors are influencing buying decisions.   I want to get at the heart of what is turning impulse buying green.

In this research report, I am operating under the assumption that some key words related to environmental and social product attributes are more effective in influencing consumers’ decisions than are others.  At this point, I am still uncertain as to which phrases are the most effective.  My assumption is that this will differ by target segment.  Here is an initial list of the terms that I wish to consider:

Health: natural, organic, no GMOs, % organic, vegan, no bioengineered ingredients

Social: Fair Trade certified, % fair trade, ethically sourced, fairly traded, locally grown, local, vegan, Girl Scout, % profits to nonprofit

Environmental: Rain Forest certified, organic, % organic, % profits to nonprofit

Health: natural, organic, no GMOs, % organic, vegan, no bioengineered ingredients(This study will not look at consumers’ reactions to the traditional health claims, such a “zero trans fat” or “low in carbs”, but rather will consider health claims related to lack of chemicals or artificial ingredients.)

Clearly, there is some overlap as to which words fit under each category, but I think that this may lead to one of the most interesting components of the research.  I tend to associate the term “organic” with both beneficial health and environmental connotations, but am unclear as to how most Americans would react to this word.  Understanding how these words resonate with consumers will be extremely important for green marketers crafting marketing communication.  I threw in the term “Girl Scouts” in attempt to get at consumers’ reactions to social positioning before it was a hot topic.  Whether the Girl Scouts knew it or not, they were way before their time.  I am curious to see the difference in consumers’ responses to Girl Scout cookies versus Fair Trade bananas.  At first blush, these products seem light years away from one another, but I have a feeling that they may share a common thread in positioning.

The second piece of this research will look at whether individuals’ consumption environment influences green purchasing decisions.  With this, I am really trying to figure out whether people that order a Venti Fair Trade Coffee with Soy Milk at Starbucks buy Folders and whole milk for their homes.  My guess is that social pressure and lifestyle aspiration may increase the demand for environmental and socially positioned products in public environments, hence the rise of Starbucks and Chipotle.  In supermarkets, where social pressure is less prevalent, customers may retreat to cheaper options that they can enjoy in the privacy of their own home.  However, only research will have the answer.

I plan to use Joel Makower’s book, “Strategies for a Green Economy” as a resource for my report.  I will also read Makower’s blog as a means of gathering information.  Makower’s work will be particularly useful since he is viewed as a leading thinker in green business.  Any more reference or research suggestions are welcomed and appreciated.