Are customers skeptical of environmentally friendly products?

Understanding how consumers perceive sustainable products has become increasingly important as these products, once considered niche, crowd retail shelves. The share of consumer goods available on a sustainable market has increased approx seven times faster than that of conventional products.

In this context, marketing professor Kellogg Alexander Chernev recently was investigated The connection between knowledge of a product was made by a sustainably minded company and perceptions of that product’s performance.

Some previous research suggests that products developed using traditional technologies or materials will be considered superior to ‘green’ options developed with sustainability in mind. This is known as ‘sustainability responsibility’.

“It’s zero-sum thinking,” says Chernev, “where if a product is good in one feature, it must be lacking in others”—a kind of countervailing reasoning like his own. previous research has emphasized. “Consumers might think, ‘It’s great that the company makes sustainable products, but I’ll just buy the regular stuff.’

This can cause companies to stop developing viable products in the first place, given the expensive technology investment it usually requires. Similarly, marketing products as sustainable could fail if it reduces consumer perceptions of efficacy.

But Chernev and co-author Sean Blair, at Georgetown, were wary that the sustainability-responsibility concept applied in all circumstances. Indeed, previous findings on the effect have been inconsistent. And people’s perceptions of the effectiveness of sustainable products are evolving. Case in point: Tesla electric cars, which many consider not only environmentally friendly, but also high-performance vehicles. “People see them as equal or superior to traditional cars,” says Chernev.

Additionally, earlier work by Chernev and Blair revealed that consumers tend to perceive products as performing well if the companies that make them are socially responsible—if, say, they participate in charitable giving. The researchers called this the “halo effect.”

So could companies that invest in sustainable technologies enjoy a similar halo effect, with their products also seen as more efficient?

Across four studies, researchers found that environmentally friendly products, as well as those from companies pursuing a sustainability-focused agenda, are perceived as higher performers than traditional offerings, especially when consumers have strong environmental values.

Overall, the results show, as the authors write, “a company can do well while helping to protect the environment.”

Anatomy of a halo

In the first study, participants were presented with descriptions of products such as sunscreen and detergent and asked to rate their perception of the products’ performance. Some participants were told that the products were sustainable: a detergent containing only biodegradable ingredients, for example.

Researchers have found that people’s perceptions depend on their values. People with weaker environmental values ​​saw sustainable products as less effective than their traditional counterparts. Those with stronger values, in contrast, demonstrated the opposite, viewing environmentally friendly products as superior in performance.

A second study explored the idea further by examining whether sustainability was associated with Company—rather than product—also increased perceived product performance. Here, participants saw descriptions of a company that manufactured ink products such as pens and markers. Some participants were told that the product was environmentally friendly, others that the company was environmentally friendly, and others were told nothing specific about sustainability.

Environmentally friendly associations again enhanced perceptions of product performance—and the effect was greater when associated with the company rather than the product.

Subsequent studies aim to more fully understand which aspects of sustainability contribute to this halo effect and for which individuals. For example, one study found that when a company emphasized that it viewed its sustainability program as an ethical responsibility, it enhanced customer perceptions of product quality. But this was not the case for people who strongly believed that eco-friendly products are inferior to traditional ones.

The case for sustainability

Overall, the results show that the sustainability obligation is not a given and that there are ways in which companies can work to avoid perception among customers.

A critical point is that sustainability perceptions can indeed have a positive impact on product performance perceptions, which contradicts the traditional sustainability-passivity view.

“This means fewer reasons for companies to shy away from investing in sustainable technologies,” says Chernev. “They no longer have to believe that sustainability will necessarily hurt perceptions of their products.”

Indeed, the findings suggest the company’s perception that investing in sustainability leads to a halo effect—consumers, especially those with strong environmental values, believe the products will be effective.

“It’s about positioning the company as an investment in sustainability in general, not just in specific products,” says Chernev.

Additionally, companies would be wise to emphasize how their investment in sustainability is driven by a sense of moral responsibility, as this communication appears to create a particularly strong halo effect. For example, a detergent manufacturer could emphasize that avoiding the use of harmful chemicals in their products can help preserve the environment for future generations. This aligns with the researchers’ previous finding that products made by companies that do good for society—charitable donations, in this case—are seen as higher performers.

A brighter halo

As a concern for the environment is rising worldwideit will become easier for companies to move from a sustainability-passive stance to a position where they project a halo effect.

“With the percentages of the population that care about the environment increasing, the result would be more towards halo than responsibility,” says Chernev. That is, more people would see products from environmentally focused manufacturers as effective, improving the average perception of the product.

However, it is important to remember that consumer perceptions are also influenced by actual product experiences. “People have more experience with sustainable products now,” he says, “and many of the products have proven themselves in terms of performance. And as long as this trend continues, sustainability is likely to benefit perceived product performance rather than being seen as a liability.”