By: Caitlin Yan
Green marketing and green products - once just buzzwords in the corporate world are now, finally realizing exponential growth in the consumer marketplace. There exists, however, a lag in the adoption rates for some of these green products. Is the marketing all wrong? Are the creative agencies missing their mark? Not necessarily. While most Canadians support environmental sustainability in theory, the kind of behavioural change that some green products call for is often more than consumers are ready to accept.
One of the most obvious obstacles to incorporating green products into your daily routine is the higher price tag. Furthermore, the goods and actions that have the greatest positive impact on the health of the environment often require the consumer to make changes to habitual routines, patterned schedules and all in all, buy more complementary “stuff”. A good example is the array of green vehicles making their way into your neighbourhood dealerships.
At this point, we’ve heard our fair share of how these vehicles can significantly lessen our reliance on oil and in turn, reduce the amount of harmful pollutants released into the air. So why then, has the demand for these vehicles been disappointing? There are a few factors that have to be considered before this question can be answered.
The existing price differential between traditional gasoline-powered vehicles and alternative energy vehicles (such as hybrids and electric powered vehicles) is a major roadblock for many consumers. Also, the fuel economy offered by some green vehicles is less than stellar which only appeals to a small segment of consumers more concerned with making a social statement than saving some coin. On top of that, the year-end blowout sales apply almost exclusively to traditional fuel vehicles thereby widening the gap between the costs of the two types of vehicles.
The slow sales can be attributed to hesitation on the supplier side as well. It’s not only the consumers who are reluctant to adopt this technology. It should come as no surprise that electric vehicles are more expensive to manufacture than traditional vehicles, but did you know that car makers actually lose money on each unit they sell because of the current retail price? Electric vehicles currently account for less than 2% of all vehicles sales and there are few signs indicating an increase in consumer demand. It looks like both manufacturer and consumer are waiting for the other to make the first move.
Finally, another indication of the current stalemate is the lack of electric car chargers and charging stations on the market. An electric car is by no means a stand-alone purchase as it requires the aforementioned accessory components to function properly. Battery charger suppliers appear to be waiting for car manufacturers to introduce more electric vehicles and car manufacturers are holding off until consumers show a greater interest in these non-traditional vehicles. The fact remains that there are not enough charging stations and chargers to reduce “range anxiety” – the fear of being stuck on the road without any power. Unfortunately, the solution is not as trivial as simply making more of the vehicles or the chargers.
Hopefully after taking a look at some of the contributing factors, the true nature of the situation is a bit clearer. The slow adoption of green vehicles is not only a marketing problem. Sure, the marketing departments of Nissan and Ford should be ramping up their efforts to better address their consumers’ perceptions of green vehicles. The economics and social views of green vehicles have shifted away from where they started when the talk of green vehicles first began. The progress made in regards to the complementary technology and systems for green vehicles needs an in-depth, critical evaluation (calling all R&D professionals).
There are many consumers who want to do their part for the environment by owning a greener vehicle but won’t do so until there is greater utility and when the infrastructure is a reality. Even with the tricks and illusions (critics words, not mine) available to marketers today, you would be hard pressed to find someone to successfully market a product or service that doesn’t exist.
Caitlin Yan is a recent graduate of the Business Administration program at Wilfrid Laurier University. She has a specialization in Brand Communication and Management. Caitlin has a keen interest in products and behaviours that are less harmful to the health of humans and the environment.
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