Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Eco labels, right information have mass appeal

August 23, 2010

Media Release

Eco labels and the right information have mass market appeal

Sellers using eco-labels backed with the right information could make as many as 85% of New Zealanders more likely to buy a product.

Huge numbers of New Zealanders are considering how sustainable products are before they buy them, according to a new nationwide ShapeNZ survey of 1811 consumers.

The weighted nationwide online survey, with a maximum margin of error of ± 2.3%, shows the top rating factors people consider before buying a product include it being

• local (59%)
• eco-friendly (57%)
• fair trade (55%)
• environmentally sensitive (55%)
• lowest cost or price (54%) and
• socially responsible (37%)
• organic (29%).

A product’s low carbon intensity is considered by17%, while just 2% don’t care and 3% don’t know.

When asked to select just one factor, the most important is

• price (46%), followed by
• local and eco-friendly (both 11%)
• environmentally responsible (10%)
• fair trade (7%)
• socially responsible (7%) and
• organic (2%).


The results indicate huge market opportunities for organisations selling products which are environmentally and socially responsible – and price competitive, according to Peter Neilson, Chief Executive of the New Zealand Business Council for Sustainable Development, which commissioned the research.

The survey also highlights the huge influence being exerted on people’s choices of sustainable products by customers’ own experiences and knowledge of the product or service, and brand trust.

The top five influencers are: Personal experience 64%, own knowledge 44%, trusted brand 41%, friends’ recommendations 35%, news reviews highlighting advantages 20%. Only 2% say they are influenced by famous people or celebrities’ endorsement.

Eco-labels certifying environmental friendliness can also make New Zealanders 29% more likely to buy a product. Another 56% say it depends on the label and how much background information they know about the label (for example, if the labels’ claims are certified, not just marketing).

The results indicate if sellers use eco-labels backed with authentic information this could make as many as 85% more likely to buy.

“There is immense power in not only producing authentically sustainable products and services – but taking them to market complete with evidence backing the claims – and getting this information to consumers. Brand trust, another major factor, is enhanced by this behaviour,” Mr Neilson says.

“Kiwis will buy the right things if sellers inform them. This is the big opportunity, the big challenge. Given no other information, price drives just over half the buying decisions. But producing environmentally and socially acceptable products and services can provide major market advantages.”

Eco-friendliness is most important to 18 to 24 year-olds, cost to 24 to 34 year-olds, environmental sensitivity and eco friendliness to 35 to 54 year-olds, local to 55 to 65 year-olds, eco-friendliness and fair trade to those 65 or older.

Women are more likely to consider environmental and social aspects of a product before buying. Households on higher incomes ($70,000+ a year) are more likely to consider environmental sensitivity and local when buying, while households on lower incomes consider price and environmental sensitivity.

Households earning between $30,001 and $50,000 are the most price sensitive (49% compared with 46% for all when given a choice of one attribute only), and households on $200,000+ a year are least price sensitive (38%).

The survey results are weighted by age, gender, ethnicity, personal income, employment status and party vote 2008 to provide a representative sample of the national population.

The survey was conducted in association with Fairfax Media in support of its Sustainable 60 Awards.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Commerce Commission: Cartel Conduct Now Punishable By Up To 7 Years’ Jail Time

Cartel conduct can now be punished with a term of imprisonment of up to 7 years, after the Commerce (Criminalisation of Cartels) Amendment Act 2019 came into effect today. Cartel conduct includes price fixing, market allocation and bid rigging (see ... More>>

Stats NZ: Auckland Population May Hit 2 Million In Early 2030s

Auckland’s population may rise from about 1.7 million currently to 2 million by early next decade, Stats NZ said today. “Auckland will likely have the highest average annual growth of New Zealand’s 16 regions over the next 30 years, from ... More>>

Air New Zealand: Business Travellers Return To The Skies In Record Numbers

After a year of talking to a computer, Kiwis are leaving the office to re-connect with their clients, suppliers, and staff. New figures released by Air New Zealand show domestic business and corporate travel has defied global trends by returning ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>

LPG Association: Renewable LPG Achieves Emissions Budgets With No Need To Ban New LPG Connections

Renewable LPG can supply New Zealand’s LPG needs and achieve the emissions reductions proposed by the Climate Commission without the need to ban new connections, a new study shows. The investigation, by leading consultancy Worley, was prepared for the ... More>>

Commerce: House Values Continue To Climb As New Government Measures Announced

The Government’s new initiatives to quell the rocketing housing market were announced last week, just as house prices hit a new high for the end of March. The average value increased 7.8% nationally over the past three-month period, up from the 6.8% ... More>>