Assessments of the National Economy

Transcription

1

2 Methodology The Gandalf Group conducted qualitative and quantitative research to produce the Consumerology Report. Online discussions were held over 3 days in June 2008 with 3 groups of Canadians, General population national sample men aged General population national sample women aged Tech early adopters who were very interested in environment men and women A national proportionate quantitative online survey was conducted among 1500 Canadians. The survey was conducted in English and French and fielded from June 26 through July 9, The margin of error is +/- 2.53%. 2

3 Assessments of the National Economy Optimism about the direction of the country has dropped since April. While two thirds of Canadians still believe the country is headed in the right direction, this is a 7 point drop in three months. And assessments of growth in the national economy are down 12 points since April. Currently, 63% of Canadians think that the Canadian economy is currently in a period of growth (only 5% say strong growth). Ontarians have the bleakest view of the economy- just about half think that Canada is experiencing economic growth. In contrast, the economic downturn is not affecting Western Canadians - almost three quarters think Canada s economy is seeing growth. 3

4 Economic Expectations Optimism of economic growth into the future has also declined. Last quarter, 62% of Canadians thought that in a year s time, Canada s economy would be stronger. Half of Canadians expect the national economy to be weaker in a year than it is today. 4

5 Direction of the Country Which of these two statements is closer to your own opinion? 5

6 Assessments of the National Economy In general, how would you describe the state of the economy of Canada today would you say that it is in a period of strong growth, moderate growth, moderate decline, or strong decline? 6

7 Assessments of the National Economy In general, how would you describe the state of the economy of Canada today would you say that it is in a period of strong growth, moderate growth, moderate decline, or strong decline? 7

8 Economic Expectations Looking forward to one year from now, do you think the economy will be much stronger than it is today, a little stronger than it is today, a little weaker than it is today or much weaker than it is today? 8

9 Challenges Facing Canada For the second consecutive quarter, the price of gasoline is seen as a pressing issue to Canadians ranking equal to the state of healthcare. Almost three quarters of respondents said that the price of gasoline is a very important issue facing Canada. Those saying the price of gas is important has climbed 9% since last quarter. This is the first time since 9/11 that an issue has equaled health care as the top issue facing Canadians The environment, crime and safety, ethics in government, the economy, and the quality of primary education are also top issues. The Canadian dollar and the war in Afghanistan have declined in importance in the last quarter. 9

10 Challenges Facing Canada: Below is a list of issues that some people think are important challenges for Canada at this time. How important is each issue to you? The price of gasoline The state of the health care system The environment Crime and safety The state of the economy The quality of primary education Ethics in govt and politics Climate change The cost of post secondary education The Canadian dollar Unemployment The inclusion of Cdns with disabilities in community life Poverty among aboriginal Canadians The war in Afghanistan Important Somewhat important Not important % 20% 40% 60% 80% 100% Mean

11 Key Findings on the Environment Three quarters of Canadians say they consider the environmental impact when they make a purchase decision only twenty percent of Canadians say they rarely or never do. But there is a crisis in confidence. Most Canadians (75%) believe that environmental claims are just marketing ploys. Companies are the least trusted source of information about the environmental impacts of products. Not surprisingly, Canadians overwhelmingly want government to regulate this arena and create standards that ensure claims have a basis in fact. Terms like green are worn out and viewed with cynicism consumers don t know what it really means and are therefore cynical about how companies use it 11

12 Key Findings on the Environment Cost is the principal barrier to adopting more environmentally friendly behaviour and purchasing more environmentally friendly products. Environmentally friendly products are overwhelmingly seen to be more expensive than normal products. Two-thirds of Canadians say they don t think environmentally friendly products are any more expensive to produce, but that companies claim they are in order to charge more. The perceived discrepancy between the price of environmentally friendly products and cost of production is key because while three-quarters say they consider the impact of companies/products when they make a purchase decision, less than forty percent say they are financially able to make changes to benefit the environment. 12

13 Key Findings on the Environment The primary demographic distinction of willingness to adopt environmentally friendly behaviours and to purchase environmentally friendly products is not age, income, nor education but gender. About 40% of Canadians could be termed Strong Environmentalist Buyers this group is more concerned about the environment and environmental impact is a key determinant of purchasing behaviour. They are the most likely to pay more for environmentally friendly products, YET they are no more or less wealthy than those who won t pay more. Another 40% of Canadians consider environmental impacts most of the time when making a purchase, however, they do not believe they are financially able to afford the extra costs. The remaining 20% just don t make environmentalism a consideration or a priority. 13

14 Concern for the Environment Three-quarters of Canadians say they are very (38%) or somewhat concerned about the environment. Residents of Quebec and Ontario indicate a higher level of concern than do residents of the Atlantic or Western provinces Women are significantly more concerned than men for the environment And one-third of consumers report thinking about the environmental impact most of the time they make a purchase, while 48% say they think about it some of the time. Women are almost twice as likely as men to say that most of the time they make a purchase decision they think about the environmental impact Only one in five Canadians either hardly or never think about the environmental impact when they are making a purchase decision. 14

15 Environment as Gender Issue How concerned are you about the state of the environment? 15

16 Women are significantly more likely to consider environmental impact When you are making purchases do you think about the environmental impact:? 16

17 The Environment and Consumption Similarly, three-quarters of Canadians say they are very (33%) or somewhat motivated to make personal changes that would benefit the environment. Yet only 39% of Canadians say they are very (6%) or somewhat financially able to make changes in their life to benefit the environment. Quebec residents are the most likely to say they are financially able (46%) Less than one-third of Atlantic Canadians say they are financially able to make personal changes to benefit the environment 17

18 Environmentally Beneficial Changes How strongly motivated are you to make personal changes in your life that would benefit the environment in some way? 18

19 Financial Ability to Make Changes How able are you financially to make changes in your life that would benefit the environment? 19

20 Environmental Issues Specific environmental issues have more resonance than the environment as a category. Canadians place a higher level of importance on issues such as keeping fresh water clean, reducing excess waste, and reducing air pollution and smog than they do on the environment. Many of these issues may be seen as white space in which companies could make a lot of ground by identifying themselves with these issues. Of moderate importance are combating global warming/climate change, protecting wilderness areas, promoting locally grown food and preserving wildlife. 20

21 Importance of Environmental Issues: How important are each of the following environmental issues to you personally? Mean

22 Benefits vs. Likelihood of Performing Environmental Measures Canadians believe many lifestyle and purchasing decisions are beneficial to the environment. Practices such as recycling, driving energy efficient vehicles, buying energy saving light bulbs, reducing the use of plastic bags and pesticides, and conserving household energy are seen to benefit the environment by a significant majority of Canadians. Purchasing organically grown food or investing in ethical mutual funds are seen as the least beneficial. 22

23 Benefit of Environmental Measures: How beneficial to the environment would it be if you personally:? Recycled all paper/cans/plastic products Bought energy efficient appliances Used fewer plastic bags Stopped using pesticides Set dishwashers/washing machines to energy saving Replace your light bulbs with energy saving bulbs Changed household cleaning products Drove your car/vehicle less Bought locally grown food Switched to a more fuel efficient car Turned down the heat/a.c. in your house Used public transpo more often Stop or reduce drinking bottled water Installed a solar powered hot water heater Bought organic food Put investments in ethical funds Beneficial Somewhat beneficial Not beneficial DK/ref Mean % 20% 40% 60% 80% 100% 23

24 So What Do They Do? Respondents were asked the likelihood of their carrying out such measures given the specific sacrifice involved or entailed in each. We learned that price is a deterrent. Secondarily, time is a deterrent. Effort or discomfort are not. Changes that do not require extra money and that can be incorporated in daily life such as using the energy saving mode on appliances, changing to efficient light bulbs, reducing use of pesticides and plastic bags, buying locally grown food, and turning down the a/c or heat are relatively likely to be adopted even though each of these actions requires more effort or inconvenience. Recycling is seen to be the most beneficial environmental measure and most Canadians (76%) say that they are likely to recycle. 24

25 ACTION Drove your car or vehicle less often Used public transit more Turned down the air conditioning in my home Used fewer plastic bags Bought locally grown food Stopped using pesticides on your lawn or garden Changed household cleaning products to non-toxic, green products Bought energy efficient appliances that use 40% less energy Used public transportation more often Set dishwashers and washing machines to energy saving mode Bought organic food Put your investments in ethical funds Switched to a more fuel efficient car Replaced your light bulbs with energy-saving fluorescent bulbs Installed a solar-powered hot water heater that cuts energy bills in half Recycled all of the paper, cans and plastic products in your house Stop or reduce drinking bottled water SACRIFICE A longer commute on public transit or car pools More time getting anywhere Being warm on the hottest days Having to buy and keep reusable bags Less selection More weeding Cost 10% more Cost more and take 5 yrs for the savings to pay for themselves A longer commute on public transit or car pools Using no hot water Costs 15% more They don t get the best returns Less power and space Cost twice as much as traditional bulbs Takes 12 years to pay for itself Having an extra recycle bin in the house and having to take it out separately Using tap water instead 25

26 What Don t They Do? Changes that require additional spending are significantly less likely to be adopted even if they are seen to be very beneficial to the environment. While energy efficient appliances are seen to be very beneficial to the environment, only 38% say that they would act on this considering the additional price. Similarly, solar power hot water heaters are seen to be very beneficial to the environment, but the cost means that most Canadians would not install one. While a fuel efficient car is seen as less beneficial, more people are likely to buy one for cost savings. The benefits of buying organic food and putting investments in ethical funds are not as clear to people, both are costly, and Canadians are unlikely to do either. 26

27 Likelihood of Acting on Measures: How likely would you be to do the following considering the sacrifices:? Likely Somewhat likely Unlikely DK/ref Mean Recycled all paper/cans/plastic products Turn down the a.c. on hot days Replace your light bulbs with energy saving bulbs Bought locally grown food Set dishwashers/washing machines to energy saving Used fewer plastic bags Changed household cleaning products Stop or reduce drinking bottled water Stopped using pesticides Turn down the heat Switched to a more fuel efficient car Bought energy efficient appliances Drove your car/vehicle less Installed a solar powered hot water heater Bought organic food Put investments in ethical funds % 20% 40% 60% 80% 100% 27

28 Benefits vs. the Likelihood When we analyse responses of how beneficial an action is by how likely people are to do it because of the sacrifice, recycling is the clear leader for respondents on both. Investing in ethical funds and to some extent, organic foods are thought to both be the least important and the least likely to be undertaken given the sacrifice. Among the rest in between we see the prioritization that occurs between those that require effort and those that require costs. Women and men rank these and other initiatives in a similar fashion but women are more likely to both consider each one more beneficial and to undertake each given the sacrifice. 28

29 Perceptual Map: Benefit vs. Likelihood How beneficial to the environment would it be if you personally? Buy energy efficient appliances Use fewer plastic bags Stop using pesticides Use car less Buy fuel efficient car Use public transpo more Buy a solar powered water heater Turn down the heat Buy organic food Invest in ethical funds Recycle paper, cans, plastic Energy saving mode for dishwasher/washing machine Switch to energy-saving bulbs Turn down a.c. Buy locally grown food Change household cleaning products Stop/reduce drinking bottled water How likely would you be to do the following, considering the sacrifices? 29

30 Corporate Environmental Measures Most consumers say they consider the environmental impact of a product when they make a purchase decision. There are many environmentally friendly initiatives corporations could adopt during production that would increase consumer purchasing likelihood: Using less packaging is the most visible and persuasive environmental action Using renewable energy sources for production such as solar and wind Reducing energy use such as turning down lights, heat, a/c Using recycled parts for production Using organic ingredients Using environmentally friendly building materials Supporting non profit environmental organizations 30

31 Company Environmental Responsibility The following are steps that some companies have taken to become more environmentally responsible or make more environmentally responsible products. Would you be more or less likely to buy these products if a company? Mean

32 A Disconnect Environmentally friendly or green products are overwhelmingly seen to be more expensive than normal products. Yet two-thirds of Canadians say they don t understand why it s more expensive to purchase environmentally friendly products. Women are significantly more likely to say they do not understand why it s more expensive. Two-thirds of Canadians believe that it doesn t cost more to produce environmentally friendly products but that companies claim a product is green so they can charge more for it. Seventy percent of Canadians believe that environmental claims are just marketing to sell more products. 32

33 Green Pricing How much do you agree/disagree with the following statements:? Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref I don't understand why it is more expensive to purchase products that are environmentally friendly I don't think it costs more to produce environmentally friendly products - I think companies just use that claim to charge more for a product I believe that many environmental claims are just marketing to sell more products % 20% 40% 60% 80% 100% 33

34 Clearing up the Confusion Most Canadians say there are so many conflicting claims about the environment that they re not sure what to believe. Canadians overwhelmingly want regulation and labeling to clear up the confusion. What is just a marketing ploy? What is legitimately environmentally friendly? Eighty-five percent of Canadians want standards enforced on producers and labeling that certifies and explains terms such as organic, low emissions, green. Two-thirds of Canadians say the term green has been used so much that it doesn t have much meaning for them anymore when a company claims it. 34

35 Green Marketing How much do you agree/disagree with the following statements:? Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref There should be labelling regulations so when a producer says green or enviro friendly, the consumer knows what that means and the company has to meet standards The gov't should provide guidelines for companies to follow so we understand what terms like green/organic/low emission/etc. mean The term "green" has been used so much that it doesn't have much meaning to me when I see a company claiming a product is "green" There are so many conflicting claims about the environment that I m not really sure what the right things to do are I don't know how to judge which products I should ensure are enviro friendly and which are less important I don't understand what most of the enviro terms used on products mean so I don't pay attention % 20% 40% 60% 80% 100% 35

36 Buying with the Environment in Mind Canadians are split over whether a company or brand s environmental reputation is important just under half incorporate it into their purchasing decision. And just over half of Canadians want to know the environmental impact of a company or product before they make a purchase. Almost sixty percent are willing to pay more for an environmentally friendly product because they believe it will be worth it in the long run while the remaining forty percent are not. Women are significantly more likely to say this than men. 36

37 Green Purchasing How much do you agree/disagree with the following statements:? Strongly agree Somewhat agree Somewhat disagree Strongly disagree DK/ref I believe it is more expensive to purchase products that are environmentally friendly but it is worth the cost in the long run I want to know how a company or a product will impact the environment before I make a purchase I'm not willing to spend extra money for a product just because it's more enviro friendly I base my purchase decisions in part on what I know of the brand or company's enviro friendliness % 20% 40% 60% 80% 100% 37

38 Three Types of Environmental Consumers There are three groups of consumers when it comes to making purchasing or behaviour decisions based on the environment BUT importantly eighty percent of Canadians are at least moderately likely to make purchasing and lifestyle decisions to benefit the environment. The three types are: 1. the strong environmentalist (42%) 2. the moderates (41%) 3. the overwhelmed and unconvinced (18%) These groups are principally distinguished, not by demographics, but by attitudes and commitment to the environment. These groups do not differ by income, education, child status, or age. Women are significantly more likely to be strong environmentalist and men are significantly more likely to be overwhelmed and unconvinced. 38

39 Environmental Consumers: Regional Some of the regional differences between Quebec and other Canadians is their higher proportion of strong environmentalists and low number of unconvinced. As was mentioned, the Canadian distribution of these groups is about 40% strong, 40% moderate and 20% unconvinced Quebec is the only province that strays quite considerably from this distribution. Slight differences are seen in the other regions Ontario has slightly more strong environmentalists, and the Atlantic and the West have slightly fewer. This would account for Quebec s high level of concern for the environment and motivation to make changes in their lives. Strong Moderate Unconvinced Total 42% 41% 18% Atlantic 37% 44% 19% Quebec 47% 42% 12% Ontario 44% 38% 18% West 36% 42% 22% 39

40 Strong Environmentalist Buyers This group of forty percent of Canadians are very likely to make purchasing decisions to aid the environment even if it costs more. These people are very concerned about the environment it is the primary motivator 62% say they are very concerned. More than half say they consider the environmental impact most of the time when they make a purchasing decision and are very motivated to make changes in their life to benefit the environment. They are the most likely to say they are financially able to make changes in their personal lives to benefit the environment (even though they are no more wealthy than other groups). 40

41 Strong Environmentalist Buyers This group is distinguished not simply by willingness to take personal action but because they also demand action of companies and brands. They are the most likely to want the government to regulate and clarify environmental impacts so marketing claims rest on fact. They want to know a company s environmental record and they invest in ethical funds. They are significantly more likely to pay more for environmental products and to make significant lifestyle changes such as public transit or carpooling. Note however that fully 70% even of this group believe that it does not cost more to produce environmentally products but instead companies use that claim to charge more. 41

42 Strong Environmentalist Buyers There are no demographic distinctions for this group except gender and Quebec. This is an exceptional area in that it is truly attitude driven. Women are significantly more likely to fall into this group than men (half of women are Environmental buyers compared to 40% of men). 42

43 The Moderates This group of forty percent of Canadians report considering the environment when they make purchasing decisions but cost gets in the way. They are slightly less concerned about the environment than the Strong Environmentalist Buyers yet 80% of them say they consider the environmental impact most or some of the time when they make a purchasing decision. And while three-quarters say they are very or somewhat motivated to make personal changes to benefit the environment, they see themselves as being unable to afford to just one third say they are very (4%) or somewhat financially able to make changes to help the environment. 43

44 The Moderates Price is the biggest deterrent to this group. They are less likely than the Environmental Buyer to spend more money for environmentally friendly products. They are also less likely to expend time or effort. The Environmental buyer and the Moderate are equally skeptical of marketing environmental claims and increased costs of environmental friendliness. They both would like government regulation and standards. 44

45 The Unconvinced This twenty percent of Canadians tends not to be very concerned about the environment. It is not a purchasing factor for them nor does it motivate them to change behaviour. 45

46 Benefit: Strong Environmentalists How beneficial to the environment would it be if you personally? (Strong environmentalist consumers, n=619, who indicated very beneficial ) 46

47 Benefit: Moderate Environmentalists How beneficial to the environment would it be if you personally? (Moderate environmentalist consumers, n=565, who indicated very beneficial ) 47

48 Benefit: Unconvinced Environmentalists How beneficial to the environment would it be if you personally? (Unconvinced environmentalist consumers, n=261, who indicated very beneficial ) 48

49 Critically Important Even those who are most committed to making lifestyle changes and spending more in order to help the environment are very skeptical about company claims 75% believe that environmental claims are often just marketing ploys. This is even higher among those who are not willing to pay more or make life style changes to help the environment. 49

50 Who do they trust? Consumers look to environmental groups or research organizations for credible information on the environmental impact/record of products and companies. Governments and family and friends are the next most trusted. The media, the internet and companies themselves are the least trusted. 50

51 Credibility of Sources When you are looking for information about the environment or about the environmental friendliness of products, services, or companies, there are many sources to turn to. How much do you trust the following:? Non profit enviro organizations who work in the field Research organizations Enviro organizations whose job it is to lobby the govt for change 6.1 Friends and family 5.8 The provincial government 5.4 The federal government 5.3 Media 4.8 Companies who manufacture 4.6 Internet blogs

52 Corporate credibility How do corporations sell their environmental credentials and the programs they are undertaking when consumers view them as not credible. It isn t the information that is being imparted, it may be the way it is being sold. Consumers want tangible, practical information provided to them in an educational and accessible manner. The environmental focus should appeal to consumer s values and be seen to reinforce the company values. Consumers do not want environmental platitudes which they feel are trying to sell them on the company. Explaining to consumers why environmentally friendly products cost more to manufacture or produce and giving them tools to make their own choices about what to buy is a prime example of how a company can build credibility even in a less trusting environment. 52

53 Conclusions Our focus on the environment and purchasing decisions in this quarter s survey occurs just as Canadians report greater concern about the economy. The environment and to a lesser degree climate change are important issues for many Canadians. But those are joined by rising concern about the economy and inflation notably with respect to gas prices. This survey speaks to what consumers are willing to do when it comes to the environment and how those actions are affected by sacrifice, particularly cost. 53

54 Conclusions Environmental impacts are now a primary purchasing consideration a significant majority of consumers are evaluating the environmental impacts of their purchasing and consumption. There is a crisis in confidence in company/product claims of being green or environmentally friendly three quarters of Canadians believe it could just be a marketing ploy. Consumers want clarity and assurance from a disinterested third party. There is overwhelming demand for government to set standards and regulate environmental claims. 54

55 Conclusions Contributing to the lack of consumer confidence is the belief that environmentally friendly products are more expensive but do not cost more to produce essentially a gap created for corporate profits. Forty percent of Canadians should be considered Strong Environmentalist Buyers they are very concerned about the environment and make purchase and lifestyle decisions to benefit the environment. These environmentalist buyers are skeptical of corporate claims and want to know a company s environmental record. This group is the most likely to be willing to spend more for products that will benefit the environment. 55

56 Conclusions In addition to the Strong Environmentalist Buyer, another 40% of Canadians consider environmental impacts most of the time when purchasing. Cost is an issue for this group. They are unlikely to spend more for an environmentally friendly product. However, there are several actions that companies can take that illustrate a product is more environmentally friendly: Less packaging Use of recycled items/parts Use of renewable energy and/or improved energy efficiency during production 56