Distributed Generation Can Fuel Local Economic Growth

December 12, 2013

“Buy Local” marketing campaigns have long been a popular – and effective – way to spur economic growth within local communities. Such programs redirect consumer spending to independent businesses closer to home. Not only does this added spending increase local sales, but it fuels greater economic activity in general as the money is more likely to be re-spent locally on other goods and services. Traditionally, such campaigns have focused on boosting sales for local farmers and artisans. They have also been used to reinvigorate downtown shopping districts, helping local merchants retain customers against encroachment by big box retailers.

Distributed Energy Generation Creates Disposable Income

Perhaps not surprisingly, there has historically been little economic incentive to promote locally-generated energy as part of these campaigns since traditionally there has not been a more local alternative to energy provided by large national companies. Today, however, distributed generation energy (DEG) has the potential to fuel greater local economic activity by putting more disposable income (or profits) in the hands of local homeowners, businesses and investors that can be spent locally.

DEG systems – fueled by solar, wind, natural gas and other energy sources – are readily available for homeowners and business to install directly. Consumers can also partner with a full service provider such as SolarCity to finance, install and maintain such systems. By deploying DEG, homeowners and businesses typically reduce their overall energy costs as well as the variability in energy pricing. Renewable DEG has the added benefit of lowering ongoing cash outlays for fossil fuels. Moreover, local DEG owners can generate incremental income by selling excess power back to the utility – or perhaps longer term to neighbors through contracts negotiated directly or brokered through the utility.

DEG Provides an Attractive Investment Opportunity

DEG systems can also provide an attractive investment opportunity for investors looking to generate moderate returns at relatively low risk. Local economies can benefit by providing a way for locals to generate an attractive return on their money – especially in this low interest rate environment – while accelerating the deployment of DEG within their communities.

Investment vehicles have emerged to facilitate this. For example, Mosaic allows qualified investors to invest smaller amounts (minimum $25) in rooftop solar energy projects. This past week, SolarCity announced that it has completed the industry’s first securitization of large scale distributed solar energy assets valued at nearly $55 million.

Market Conditions Are Increasingly Favorable

Market conditions are increasingly favorable to scaling DEG. Just this past week, the Federal Energy Regulatory Commission announced new standards that make it much easier for small scale (<20 megawatts), renewable DEG including rooftop solar and wind to connect to the grid. Furthermore, installation costs are coming down rapidly as conversion efficiency increases and manufacturing costs fall which is accelerating adoption. Small solar PV power capacity, for example, is expected to double within the next two years.

Rapid growth in DEG is, of course, disrupting the traditional utility model. Yet, many utilities and regulators are moving aggressively to adapt to the changing competitive environment. Duke Power, for example, is increasingly focused on providing grid services like battery storage needed to ensure grid stability as more wind and solar power capacity comes online. Meanwhile utilities American Electric Power, MidAmerican Energy and others are backing new transmission capacity to bring wind power from the Texas Panhandle to major cities. Finally, regulators like the Arizona Corporate Commission are making accommodation for utilities to ensure that they get cost recovery for transmission investment and maintenance.

Distributed generation is growing rapidly and can provide a big boost to a local economy. Community leaders should take advantage of this by promoting its expansion – and motivate local consumers to buy home-grown energy. A “Buy Local” marketing campaign may be the perfect way to encourage just that.


What Green Businesses Can Learn from Obama’s Campaign

December 14, 2012

Although President Barack Obama ran a successful campaign and won a decisive electoral-college victory, the margin in key battleground states was slight. Indeed, a shift of 407,000 votes across four of them — Colorado, Florida, Ohio, Virginia — would have given Mitt Romney the 69 electoral votes he needed for victory.

Big data has been touted as key to Obama’s victory — and securing winning margins in swing states — by enabling the campaign to focus scarce resources on voters who could be persuaded to vote for Obama and, once persuaded, were likely to actually vote.

Critical to this effort was the Obama campaign’s recognition that voters may be demographically similar while at the same time strikingly different when it came to the issues that they cared about. As Dan Wagner, the campaign‘s chief analytics officer, told The Los Angeles Times, “White suburban women? They’re not all the same. The Latino community is very diverse with very different interests. What the data permits you to do is figure out that diversity.”

For the Obama campaign, a key to victory was to precisely understand which issue would be most persuasive to a voter’s choice and then microtarget like-minded voters with messaging that relayed the President’s stance on the issue and his action plan to address the issue going forward.

Underpinning this effort by the campaign was market research to determine the precise issue that most effectively influenced voter decisions — and which voters cared about which issues. The campaign also targeted known supporters, asking them to reach out to Facebook friends in swing states in hopes of influencing their voting decisions.

Such microtargeting is not limited to campaigns. Companies can also use this approach to identify and shape green brand preferences, and ultimately, purchase decisions. Here is how:

Focus on consumer persuadability. Politicians are known for boasting to voters about what they have done while in office and expecting voter support in return. This is similar to how many brands tout their green accomplishments today: more recyclable, safer chemicals, reduced material content. But, as in politics, such accomplishments may not be relevant to consumers, green or otherwise. Nor are they necessarily factors that influence brand preference and choice.

In contrast, the Obama campaign had a laserlike focus on the issues most associated with influencing voter decisions. Brands can learn from such an approach. By determining not only what consumers care about but also prioritizing messaging to focus on those needs most associated with consumer preference and choice, brands can have greater impact for a given investment. In each case, market research is required to reveal what cares or needs have the most influence on preference and choice and for which audiences.

Method’s recent Clean Happy video campaign illustrates such an approach. The campaign targets household decision-makers and focuses on a broad range of consumer cares and needs and how Method’s products deliver on each.

For example, one video titled “Clean Like a Mom” promotes Method household cleaning products that contain safer chemicals than traditional cleaners. But, instead of focusing exclusively on product attributes, the video highlights how Method products address specific consumer cares, namely, kids’ safety and the desire by moms to be perceived by their peers as doing the right thing. Presumably, Method did market testing and found out that with moms, these issues motivated greater brand preference and choice than alternatives.

Interestingly, green marketers can effectively influence consumer behavior even if consumers do not consider themselves to be green. One dramatic example comes from a Yale University/George Mason survey that segmented Americans based on their attitudes toward climate change.

The survey revealed that two consumer segments — the one most alarmed by and the one most dismissive of climate change — were the most future-oriented in terms of their outlook. Such attitudinal similarities provide a potential opening for marketers to try a more future-focused message when selling greener products to these segments despite their polar opposite views on climate change.

Be true to your brand. Some politicians try to reinvent themselves in order to tell voters what they want to hear. Arguably, this is similar to a brand that wants to engage consumers on green issues but is not currently perceived in the market as being green.

Brands do not necessarily have to be known for being green in order to be relevant to consumers. Instead, brands should tell their story in a way that is true to their existing brand positioning.

Unilever’s Axe is a great example. Known as an irreverent brand that uses the sex appeal of its products to drive sales, Axe launched its “ Showerpooling” campaign to engage its customer base on the issue of water conservation. The platform uses showerpooling — sharing showers — not only as a way to grab attention, but to make it relevant with the audience. The campaign jokes: “It’s not just environmentally friendly … it’s all kind of friendly.”

Target microsegments. The Obama campaign identified microsegments through research and projected these against a database of registered voters in a nationwide effort to influence voter choice. Of course, marketers could develop their own database by encouraging consumers to sign up for ongoing communications from a company.

But, even without a database, marketers can certainly target microsegments online. This can be done by targeting green consumers on contextually relevant sites, retargeting those visitors elsewhere online or by partnering with a demand side platform to identify and target audiences with like-minded profiles regardless of where they go online.

Turn loyalists into influencers. The Obama campaign successfully tapped its supporters to motivate friends in swing states to vote. Similarly, advertising campaigns should activate loyal customers to serve as influencers and advocates for the brand. Method deployed a similar approach in its recent campaign by distributing fun videos through social sites such as YouTube and Facebook and providing incentives for viewers to share them.

The Obama campaign demonstrated the power of microtargeting to influence voters, and arguably, affected the outcome of the election through this technique. Obama’s success was bolstered by focusing on specific issues most influential with specific voters, rather than a more general message. Such a campaign provides many lessons for green marketers — as well as the opportunity to take a similar approach to drive adoption of green products.


Growing Business Opportunities in Home Lighting, Heating

November 10, 2012

A ban on incandescent light bulbs took effect in the European Union last month, making more efficient lighting technologies — including compact fluorescent lightbulbs (CFLs) and light emitting diodes (LEDs) — standard across Europe. Such a milestone reminds us that market shifts — whether spurred by regulation or innovation — open up new opportunities for businesses to sell greener products and services to consumers.

Many of these emerging opportunities focus on efficient home energy solutions for consumers. Here are two that businesses should consider:

Next-generation lighting

The European Union isn’t the only region phasing out traditional incandescent lightbulbs. In 2007, the United States passed a similar regulation that effectively eliminates many of those bulbs by January of 2014. Initially, this mandate spurred demand for CFLs, likely from niche consumers willing to pay a higher price for an emerging technology that promised lower electrical usage and longer product life. But, since 2008, CFL purchases have declined each year, despite a precipitous drop in price.

Today, according to the U.S. Department of Energy, two thirds of the energy savings potential from CFLs has yet to be realized. As such, with the U.S. pulling out of the recession and consumers more willing to open their wallets, businesses have an opportunity to spur demand for next-generation lighting products.

Retailers are showing renewed interest in efficient bulbs. Ace Hardware, for example, recently declared Oct. 18 to be Annual Light Bulb Day to raise national awareness for CFLs and other lighting technologies. It also offered discounts on purchases to motivate foot traffic and drive sales.

Alternatively, Ikea has chosen to bypass CFLs: It plans to stock LEDs exclusively by 2016 because it believes the rapidly evolving technology will likely outperform CFLs in the near future. By picking a winner in the lighting category, IKEA generated a lot of buzz for its stores and interest in this emerging technology.

Utilities and utility regulatory boards are also spurring demand as they comply with state energy-efficiency mandates. For example, Efficiency Vermont, an organization authorized and funded by the Vermont Public Service Board to promote energy efficiency, launched a successful campaign to increase the use of CFLs. The campaign tackled the perception that CFLs were more expensive by advertising 99-cent bulbs available at participating retailers. It also created a sense of urgency (“good while supplies last”) to drive demand. The campaign was so successful that it doubled the number of CFLs sold per month.

Natural-gas home heating

Meanwhile, another home-energy opportunity is emerging: converting home heating systems from heating oil to natural gas. Not only would shifting to natural gas greatly reduce carbon emissions and improve local air quality, but — in most cases where gas lines are nearby — would also generate very positive returns for homeowners.

Technology innovation is precipitating this opportunity by unlocking vast amounts of natural gas in shale formations across the country. Many such formations are concentrated in the northeast, a region that historically has relied more on heating oil, partly because of the region’s limited pipeline capacity for bringing gas from the Gulf of Mexico. With natural gas supplies increasing, the residential price has dropped dramatically from its peak in 2005-2006.

Simultaneously, the residential price of heating oil has grown dramatically, providing even more incentive for households to switch to natural gas. In fact, according to the Energy Department, the average heating-oil-heated household now spends more than three times as much on heating ($2,298) as the average natural-gas-heated household ($724).

Of course, many of the developments in natural gas are the result of hydrofracking, a controversial extraction process. Many believe that hydrofracking risks contaminating aquifers used for drinking water, although the degree of risk is up for debate. And while greener fracking technologies are emerging, they haven’t yet reached commercial scale. Still, the benefits of shifting away from heating oil to natural gas may outweigh the costs.

If shale gas extraction continues, there are many ways that businesses can promote natural gas conversion to consumers. Certainly, energy companies can motivate their own customers to make the switch through the use of incentives. Utilities such as Con Edison are already helping to coordinate clusters of property owners to convert together, thereby lowering the upfront costs for individual customers.

Banks also can promote natural gas conversions by extending loans to help consumers make the switch. One such loan program by People’s United Bank covers the upfront conversion costs for Southern Connecticut Gas and Connecticut Natural Gas customers.

Market shifts in regulation and technology are enabling new opportunities to provide efficient home energy solutions for consumers. Many businesses are already starting to take advantage of this. Those that aren’t yet should take note: As the U.S. continues to emerge from the recession, consumer appetite for such solutions is only likely to increase.


Pinterest Emerging as Promising Platform for Green Marketers

October 16, 2012

Over the past 12 months, Pinterest has witnessed explosive growth. The site has topped 23 million unique visitors and average site visit time is nearly 100 minutes per month, making it one of the largest and most engaging social networks around. AdAge raves that “…Pinterest has gone from relative obscurity to exalted status alongside Facebook and Twitter…”

What is so compelling about Pinterest is its simplicity, empowering users to capture, curate and share content of interest at the click of a button. Moreover, its format allows users to easily browse and discover new content pinned by other users.

Brands, including green brands, are increasingly discovering the potential of Pinterest and finding ways to adapt this consumer-centric platform for their benefit.

Promote discovery. Consumers like to browse Pinterest and, while doing so, are discovering brands. Brands are maximizing their chance of being discovered by finding ways to distribute their content on Pinterest.

One way to accomplish this is for brands to directly curate their own Pinterest content. Additionally, brands can make truly compelling content available online. This could include visually powerful images on relevant and timely themes that the growing number of Pinterest users may find and pin onto their personal boards. Consumers can discover content on their own or be encouraged through contests like the one that Method deployed to incentivize Moms to pin images of Method products.

Strengthen brand identity. Companies are also finding ways to leverage Pinterest to help define their brands. They do so by using the Pinterest platform to distribute content that brings to life their brands — or core values.

Whole Foods, for example, says they are committed to “selling the highest quality natural and organic products available”. For Whole Foods, such a commitment originates in the garden where the food is grown and pays off through the appeal of the dish that is ultimately served and the healthier lifestyle to which the food contributes. Pinterest boards sponsored by Whole Foods bring each of these dimensions to life.

Highlight social responsibility. Pinterest can also enable brands to highlight its commitment to corporate social responsibility (CSR) in a very visible and compelling way. In addition to its other Pinterest initiatives, Whole Foods maintains a Pinterest board dedicated to the Whole Planet Foundation and its many initiatives sponsored around the world. Images map where contributions are made and illustrate the good works that are done in a format that seems, in many ways, less constrained or forced than the Corporate Social Responsibility tab on their corporate site.

Drive sales. Eco-friendly brands are also beginning to experiment with social networks to drive sales, and Pinterest is emerging as a key option. When looking at click-through rates to retail sites from the top three social networks — Facebook, Pinterest and Twitter — Facebook continues to drive the vast majority of traffic but Pinterest exceeds Twitter in terms of traffic generation. In fact, Pinterest is now responsible for more than 11 percent of user shopping sessions originating from the top social networks — Facebook, Twitter and Pinterest. Moreover, sales conversion rates for users originating from Pinterest are trending higher than from Twitter. At $169, the average order size of Pinterest users is substantially greater than for users that originate from either Facebook ($95) or Twitter ($71).

Brands like eBay are taking note, promoting eco-friendly products across a myriad of Pinterest boards, including health and beauty, fashion and electronics, and providing each product image with a direct link to a transaction page within the eBay Green site.

For green marketers, Pinterest provides a promising platform to engage consumers and for consumers to discover brands that they might not ordinarily interact with. Pinterest’s unique format provides the opportunity for companies to show their brands to consumers in a visually powerful way. Such interactions can provide dimension to a brand and can potentially drive sales. Green brands will be missing a key emerging opportunity online if they fail to consider their own Pinterest strategy.


How Mobile Apps Keep Shoppers’ Footprint Local

September 23, 2012

Today, many are touting the benefits of buying locally produced products because — all else being equal — these products have less of an environmental footprint because they travel shorter distances to market. Yet, there has been less attention paid to how far shoppers travel to make their purchases — and the opportunity to reduce their environmental impact when doing so.

Interestingly, many consumers view eCommerce as more eco-friendly than shopping on Main Street because they don’t have to travel from their homes to do so. But, environmental impact studies on the topic are mixed, and the actual answer depends on a lot of factors, including the number of products purchased at a time, the density of the surrounding area and the distance traveled to a store.

Moreover, online is estimated to represent only 7 percent of retail sales in the United States, with the vast majority of goods and services still being sold through traditional brick-and-mortar retailers.

Given that the overwhelming majority of sales are made offline, the Internet — and increasingly Internet-enabled mobile devices — arguably can have a significant impact how people shop when used to facilitate offline transactions closer to home. To that end, new mobile players with location-based services are emerging that aim to drive hyperlocal shopping.

For local businesses, such apps provide new ways to reach local audiences and drive foot traffic. Consumers benefit from the added convenience of finding what they need nearby. The environment also wins as consumers travel fewer miles to shop. Here are a few examples of mobile offerings that hold the potential to reduce the environmental impact of shopping:

Business locators. AroundMe is a popular app that takes advantage of geolocation capabilities to enable consumers to find businesses nearby. This app allows consumers to search merchant categories such as restaurants, gas stations and grocery stores, and displays results based on proximity or price (gas stations) or even availability (hotels). Such an app drives foot traffic to local establishments based on search results, as well as geo-targeted ads, while reducing the environmental impact of consumers traveling father distances to shop.

Product locators. JiWire recently launched Compass, a mobile advertising platform that enables retailers to target mobile users with relevant ads based on the location. What is interesting is that Compass can geolocate products from more than 200,000 retailers, allowing customers to then text or call retailers to put an item on hold for purchase. Not only does this create a superior consumer experience, but it enables consumers to avoid extra trips to make a purchase.

Location-based marketplaces. Grabio is a local marketplace that allows individuals and businesses to buy and sell goods through mobile devices. For local businesses, Grabio provides a new channel to reach consumers nearby. Local businesses can create mobile storefronts to list inventory, and conduct transactions using Grabio’s built-in mobile payment system. Because it is location-based, users know the exact location of the posting, providing added convenience — as well as reduced eco impact — when consumers make purchases closer to home.

Goshi, another emerging mobile marketplace puts a unique twist on this model by providing local “hubs” — a coffeehouse or other public meeting space — to exchange goods. The site allows local artisans and other businesses without storefronts to conduct transactions locally.

In-store rewards. Shopkick is a popular mobile application that provides consumers with rewards for shopping at — indeed, just walking into — a store. For retailers, the app generates much-coveted foot traffic – conversion rates are high once consumers walk in the door. While, today, most of Shopkick’s customers are national retail brands, the app holds significant potential for local retailers, by serving as a local loyalty program and keeping customers shopping closer to home.

Emerging mobile apps are motivating more consumers to shop locally. eCommerce was once hailed as a more eco-friendly way to shop because it eliminated the need to drive to a store. Now it should be mobile’s turn to help reduce the distance consumers have to travel to shop.


Climate Change Turns Personal: Why Brands Must Adapt

August 2, 2012

Until recently, climate change remained an abstract concept to most Americans — something that may have long-term consequences for the planet, but moving too slowly be a significant concern in their daily lives.

Today, however, such sentiments may be beginning to change. As more and more Americans experience such events firsthand, they’re beginning to make the connection between climate change and its growing impact. Natural disasters and extreme weather events such as high winds and rain storms, floods, droughts and heat waves are happening more frequently — and with greater intensity.

There’s some evidence supporting Americans’ change in attitude: A recent survey conducted by Yale and George Mason universities indicates that the vast majority of Americans agrees that climate change is making natural disasters and extreme weather events worse.  More than a third of respondents reported that they personally experienced “harm” to their property, finances or physical or mental health from a natural disaster or extreme weather event in the past year alone.

Brands should take note: Climate change is becoming more relevant for Americans as its effects become more personal.  Crossing such a threshold is significant as it means that consumers will likely become more attuned to corporate activities that impact climate change – either positively or negatively. This, in turn, could significantly impact brand favorability, preference and purchase over time. Consumers may seek to reward brands that help reduce the impact of climate change, while penalizing those that do not.

Climate change is not going away. Many factors have emerged that will only serve to reinforce why climate change is personally relevant for Americans. Here’s how this is happening:

More Americans will experience climate change impact. Whether it be wildfires in the West, floods in the Midwest or Texas droughts, more Americans will be impacted firsthand as the probability of natural disasters and extreme weather events is only expected to increase with time  — and reinforce just how personal climate change’s effects really are.

Our quality of life is increasingly impacted. Natural disasters and extreme weather events are having a growing impact on the personal life of Americans.  While ‘harm’ is an extremely important measure of climate change impact, it does not capture the impact that extreme weather events have on the everyday lives of most Americans.

For example, a violent, fast-moving storm may prevent a mother from dropping off a child at practice. Snow storms in October mean that it is too dangerous for young children to play outside, with tree branches – still full of leaves – breaking off under the weight of the snow.  And heat soaring above 100 degrees can be hazardous to those with no means of cooling off.

Americans are sharing their stories. Users are taking advantage of social media platforms to document and share content regarding climate change and its impact on natural disasters and extreme weather events.  Pinterest, in particular, has emerged as a compelling visual platform to share images, infographics and stories about climate change and weather-related events.


Moreover, nonprofits are also facilitating users to share their stories.  Recently, for example, 350.org launched its global “Connect the Dots” campaign to motivate users to document and share images and stories about local climate change impact across the globe.


Americans are seeking out experts.  The Yale/George Mason survey indicated that 58 percent of Americans want to hear more from their TV weather forecaster about climate change.

Yet today, such trusted experts are largely silent on the issue. Sixty-nine percent of Americans indicate that their weather forecaster never or rarely ever (1-2 times over the past 12 months) mentions climate change.  This is consistent with an estimated 72-90 percent drop in climate change coverage across evening and Sunday news programs between 2009 and 2011.

In the absence of regular reporting, Americans are going elsewhere for information. For example, a recent CNN interview with Bill Nye the Science Guy making the connection between wildfires and climate change has nearly a half million views on YouTube.

As the effects of climate change hit home, consumers will become more attuned to corporate efforts addressing the matter. Over time, they’ll indicate brand preference as well. Companies should take this into account when considering future commitments to more sustainable actions.


Reframing Ancestral Traits To Be Green

June 21, 2012

Certain human behaviors today reflect hardwired traits that helped our ancestors and their kin over time. Such behaviors provide individual benefit, yet the collective impact of such actions can be detrimental to the environment, creating a situation not unlike the Tragedy of the Commons.

Unfortunately, for green marketers, such individual behaviors are not easily influenced, creating an ever-present headwind that they must contend with. Confronting such behavior directly, such as asking individuals to make different choices because current ones are detrimental to the environment, has not proven very successful for marketers.

Instead, Vladas Griskevicius, Stephanie Cantú and Mark Van Vugt, in a recent paper published in the Journal of Public Policy and Marketing, suggest that there are alternative ways to shape such behaviors: Motivate individuals to take more pro-social (and therefore, more eco-friendly) actions by reframing them as having “evolutionary selfish” benefits.

Based on Griskevicius et al., there are at least three social motivations that will drive individuals to alter their behavior in a more pro-environmental way.

Social obligation. One ancestral trait that marketers must confront is that individuals promote self interest – or the interest of their kin – over others. Importantly, Griskevicius et al. note that this wasn’t always the case. For example, it is well documented that clans hunted together, generating mutual benefit. For marketers, this provides a window of understanding into how similar behavioral choices can be reframed today in order for individuals to generate positive benefits from collective actions.

One way marketers have tried to motivate individuals to do so is by creating a social obligation.  Hoteliers have attempted to do so by offering to make a donation on the behalf of guests if those guests reuse their towels once during their stay. Yet, when behavioral economists tested such messaging, it did not motivate significantly different behavior than traditional messaging.

Recently, economists have tried a different approach. This time, the offer of donation was reframed not as a choice but as a fait accompli. The hotel simply informed guests that a donation had been made on their behalf in exchange for reusing towels. In this case, guests felt more obligated to reciprocate, lifting towel reuse by 26 percent (from Goldstein, Noah J.,Vladas Griskevicius, and Robert B. Cialdini (2012), “Reciprocity by Proxy: Harnessing the Power of Obligation to Foster Cooperation,” Administrative Science Quarterly, forthcoming, as cited by Griskevicius et al.). For marketers, such reframing has broader applicability when companies can afford to incentivize consumer actions, but cannot track and reward individuals for their specific behaviors.

Social recognition. Another ancestral trait is that humans strive to achieve relative (though not absolute) status. This means that humans want a certain level of wealth, power or fame in relation to those around them. Such behavior – the proverbial “keeping up with the Joneses” – is well documented. For example, neighbors of Dutch lottery ticket winners have a higher propensity to purchase new cars or renovate the exterior of their existing homes within the following six months after the winner takes home the money. Such behavior, however, can be problematic as it can lead to over consumption.

Interestingly, consumption is not the only way to display relative status. In fact, as Griskevicius et al. mention somewhat counterintuitively, status can also be achieved through competitive altruism whereby wealthy donors compete for status based on the amount donated, with public recognition for their generosity as a primary motivator.

But marketers can drive eco-friendly actions more broadly with consumers, not just with wealthy donors. The Elan Inn in Hangzhou, China, for example, rewards hotel guests for reducing their carbon impact by moderating room temperatures in summer and winter, or even bringing their own towel. Such rewards would be even more powerful if status were associated with visible perks enjoyed during a hotel stay or meaningful badges displayed on Facebook or local social networks.

Social influence. A final ancestral trait is for humans to unconsciously emulate the behavior of others. For marketers, the challenge is to redirect the behavior by holding up pro-environmental behavior to emulate. For example, as Griskevicius et al. point out, it has been demonstrated that the conservation behavior of one’s neighbors is “often the strongest predictor of [one’s] actual energy use.”

Such benchmarking against others works well as long as a majority demonstrates the desired eco-friendly behavior. But, what happens if only a few neighbors do?

Griskevicius et al. suggest that in this situation, green marketers should reframe the message to create the perception that more people do. They provide an illustration: Instead of communicating that only 5 percent of municipal residents carpool, message that 250,000 do. Reframing the message from a relative to absolute basis can create the perception that more people support the eco-friendly behavior, elevating the social influence that a campaign can actually have.

Hardwired human traits present a challenge for green marketers, as individual behaviors that benefit natural selection may collectively be detrimental to the environment. Instead of confronting them head on, marketers should reframe behaviors to be more pro-social, while ensuring that they are perceived to benefit the individual. By doing so, marketers turn headwinds more favorable.


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