May 7, 2007
Are the affluent truly “green”?
It seems like everywhere you turn someone is railing against sport-utility vehicles (SUVs) these days. Once a symbol of affluence and adventure, ownership of an SUV has become a moral failing, a symbol of excessive consumption and environmental insensitivity.
Yet, when we recently conducted a parking lot survey at a premium New England ski resort (where the average visitor has a HHI of $150,000+), the number of SUVs was staggering.
On the other hand, the affluent have a definite attraction to companies they consider to be green. According to Z+ Partners, the affluent consumer is willing to pay a 20% premium on green and organic products over those that are not.
So what’s the deal – are they hypocrites?
Not necessarily. In reality, it is only the most extreme environmentalists who paint their entire lives green. The affluent, regardless of what types of cars they own for the sake of convenience, respond well to companies that make the effort to “go green.” Companies that don’t are missing a great opportunity.