HousingZone.com articleFileName

Building Green in a Black and White World--Chapter 1

The following is an exerpt from the book Building Green in a Black and White World.
Section 1; Chapter 1; Part 3; Trends Relating to Green Building

David Ritchey Johnston
January 1, 2002
HousingZone

Trends Related to Green Building

All indicators tell us that consumer behavior toward green building is changing rapidly. The following studies present a snapshot of some interesting trends.

Environmentally Conscious Consumer Behavior (ECCB)

Environmentally conscious consumer behavior indicates how people’s purchasing decisions are influenced by their concern for the environment. While the following surveys were conducted as part of market research on general consumer trends, each survey offers insight to ECCB. Because green building is not only a new marketing concept, but also requires comprehending and accepting a wide range of environmental ideas, its market is not fully encompassed by these studies. Nevertheless, the predominant attitudes and the effect of these attitudes on purchasing decisions are relevant to understanding the green building market. General Consumer Behavior

Survey Used

Cone Roper Cause Related Marketing Trends Report, 1997.
American Demographics: The Integral Culture, Paul Ray for the Institute of Noetic Sciences and The Fetzer Institute, 1997.
American Demographics: "The Integral Culture," Paul Ray for the Institute of Noetic Sciences and The Fetzer Institute, 1997.

Cone Roper Cause Related Marketing Trends Report (1997) strongly suggests that the American public’s interest in environmental issues and corporate responsibility is on the rise. According to this report, the public ranks environmental issues as the number two area that businesses should work hardest to resolve. And they want businesses to focus on these issues locally, rather than at the national or global level. Statistics gathered in the Cone-Roper survey indicate that 76 percent of Americans would switch to a retail store associated with a good cause, such as Home Depot’s decision to sell sustainably harvested lumber, when price and quality of the merchandise offered are equal. (This represents a 14 percent increase since 1996.) This statistic suggests that green building needs to be priced right for the public to buy.

American Demographics studies show that a major change is occurring in American culture toward a comprehensive shift in values, worldview, and ways of life. Three distinct worldviews are identified below.

Traditionalism (also known as Heartlanders): a conservative, faith-based worldview, which dominated the early days of the United States (29 percent of Americans).

Modernism: the mainstream that emerged from the industrial revolution; became the dominant paradigm early in the twentieth century. Modernists believe that progress and the good life are defined by increasing material wealth. They highly regard technology as a solution to environmental, social, and economic problems (47 percent of Americans).

Trans Modernism (also called Cultural Creatives): began to emerge in the 1970s. This group believes that society faces significant problems and needs to reinvent its culture, institutions, and practices to solve problems and to provide a positive future for its children. Creatives are integrating their values into their everyday lives and are taking action on a wide range of social, environmental, and spiritual concerns (24 percent of Americans).

Because they are taking action on environmental concerns, Creatives are the logical target group for green building marketing. With this in mind, it is important to answer the question: Who are the Cultural Creatives? In his study, "The Emerging Culture," Paul H. Ray defines their characteristics:

Women: 60 percent; Men: 40 percent
Median Age: 42
Median Family Income: $47,500
Upper Middle Class (46 percent are in the top quartile of income distribution)
Ready to take action on their values

As consumers, Cultural Creatives make careful decisions, gather information (more from print, radio, and friends than from TV), want their purchases to reflect their values (especially large purchases such as homes), desire quality, and see the world holistically. They enjoy gathering large amounts of information and process that information to get a feel for the big picture. They want answers--Where did the product originate? Who was involved in its production? What will happen to the product when they are through using it? Telling the story of the product can compel Cultural Creatives to make a purchase decision.

Ecological sustainability is one of this group’s core values. Viewing nature as sacred, they want to see an end to excessive pollution. They believe in limits to growth and in living simply.

They are willing to make financial contributions to restore and protect the environment. They are optimistic and are thus unresponsive to scarcity and fear as motivators. In spite of this, offering environmentally sound products isn’t enough to get Cultural Creatives to buy. For 90-95 percent of Cultural Creatives, price and quality are still the primary determinants in making a purchase.

According to an article featured in American Demographics magazine, entitled "Growing the Green Market,"¹ five environmental categories are apparent in the American population:

Pie-chart

True-Blue Greens (10 percent of the population) are proactive environmentalists. They are highly educated and have high-income levels. They are politically and socially active and are willing to pay seven percent more for environmentally sound products.
Greenback Greens (5 percent of the population) are only moderately active in environmental causes, but they offer philosophical and financial support. They may pay up to 20 percent more for ecologically friendly goods and services.
Sprouts (33 percent of the population) are just beginning to adopt environmental behaviors and are willing to pay 4 percent more for green products.
The final two groups, Grousers (15 percent) and Basic Browns (37 percent), are unlikely to pay any increased amount for environmental products. Grousers believe in environmental causes but don’t feel they have the time or resources to take action. In addition, Grousers believe that environmental responsibility falls on the shoulders of the company rather than on the consumer. Browns don’t channel any thought or energy into ecological concerns.

This research shows that almost 50 percent of your market is open to and interested in green building. It reinforces the numbers of Cultural Creatives. Targeting these groups gives you wide latitude in market demographics and also tends to include the segment of the market most able to buy your homes.

Other research identifies a similar cultural shift away from the Dominant Social Paradigm² (belief system). The Dominant Social Paradigm entails a belief in limitless resources, continuous progress, and the necessity of growth. This group also has faith that science and technology can solve pressing problems. Yet, a competing set of beliefs, called the New Environmental Paradigm, is rapidly emerging. Here the focus is on restricting growth, protecting the integrity of ecosystems, and living in harmony with nature. The New Environmental Paradigm was born out of Americans’ concerns about the environment. For instance:

79 percent consider themselves environmentalists.
82 percent have recycled.
83 percent have changed shopping habits to help protect the environment.
67 percent would be willing to pay 5-10 percent more for environmentally friendly products.³

Another major study by The Harwood Group⁴ reveals that the majority of Americans see the following problems as endangering our country’s future: greed and selfishness, increased stress on families and communities, and the deteriorating environment (86 percent).

All three social studies suggest that individuals with greater environmental concern are likely to engage in ecologically conscious consumer behavior (ECCB). Cultural Creatives are especially interested in new kinds of products and services. Therefore, a large potential market exists for green homes.

Continue to part 2 of Trends Related To Green Building