Archive for the ‘Environment’ Category

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Bring Me Sunshine

Ever the researcher, Mark Hedley this week ponders how easy and practical it is to measure happiness

As we move out of the long British winter and into the first days of spring I can feel my mood lighten a little every day as the long dark winter nights turn into bright spring days. Having lived abroad for the last couple of years, this was my first winter in the UK for quite some time, and I have to admit to being more than a little influenced by a distinct lack of sunshine and what I suppose would be referred to as ‘seasonal affected disorder’ (SAD) or the winter blues.

It’s a strange phenomenon, but I do find that my happiness levels are generally much lower between the months of November and February, which seems to bear out the scientific theory that human happiness is directly linked to the cycle of the seasons. Perhaps it’s not just the seasons that have been affecting my mood – it does seem that all the doom and gloom going on in recent months, with news of economic recession, huge public sector cuts, rising unemployment and inflation have further exaggerated the bleak feeling of the winter months this year.

Without wanting to get too morose and philosophical here, it does make you wonder what happiness is exactly and how it can adequately be defined (or controlled)? Does happiness vary between different people within different cultures, and if so, are there any universal measures of happiness common to all people? How important is money to happiness for example? How important are financial factors compared to health, relationships with other people, or job satisfaction? Finally, what role does weather and the environment play in affecting our levels of happiness and personal satisfaction?

It was announced recently that the British government has decided to start measuring people’s psychological and environmental wellbeing. Apparently, the Office of National Statistics has been asked to produce a ‘happiness’ index that can be used alongside the normal GDP figures to indicate national prosperity and wellbeing. Yesterday it was revealed that the ONS will soon be asking 200,000 British people in its regular household survey just how satisfied they are with their lives.

The survey will use a 10 point scale to pose a range of questions relating to levels of happiness and satisfaction. The survey will include some of the following questions:

• Overall, how satisfied are you with your life nowadays?

• Overall, how happy did you feel yesterday?

• Overall, how anxious did you feel yesterday?

• Overall, to what extent do you feel the things you do in your life are worthwhile?

While the purpose of this exercise is to enable the British government to use something other than hard economic data to formulate public policy in the future, it will also be interesting to see what the results of the survey are. What is the mean average happiness score for British people? Will this vary between locations, different age groups or between men and women? Are British people, on average, happier than the French, Greeks or Italians? I suppose that the real value of the study will lie in whether it is able to provide accurate and reliable data on what are the main drivers of happiness for the majority of British people, and what steps should be taken to help improve the happiness of a nation in the future.

The professional market researcher in me remains sceptical at the ability of this type of questionnaire to deal effectively with as subjective and ethereal concept as human happiness. Although a point scale questionnaire such as this offers useful general quantitative indicators on trends in happiness, it is questionable as to how far such a survey can really get to the bottom of the drivers that shape happiness and wellbeing for people in the UK.

In b2b research, as with sociological research, the principle job of the research is to get to the heart of the issue and understand the complex array of factors that drive behaviour (whether it be an individual or an organization). Nowadays it is generally recognized that while quantitative measures and scales provide some insight into market behaviour, this often only tells one side of the story. Examining the drivers behind the numbers more often than not requires a questionnaire format that includes open qualitative questioning to allow the respondent to give free reign to his or her thought and to tease out the hidden motivations that may shape behaviour. As when trying to understand the reasons why an individual may or may not be happy, in business to business research it is important to recognize that a myriad of factors can affect the views of an organization, including everything from product quality, price levels and level of service through to brand reputation and word-of-mouth recommendation.

Posted in Current Affairs, Environment, Mark Hedley, Thursday Night Insight |
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How Good Is It to Be Green?

Over the past year or so, environmental issues have taken a backseat for some companies as economic concerns have taken precedence. But is that the same for countries all around the world and, perhaps more importantly, is that want consumers want? The fifth annual ImagePower Green Brands Survey, conducted between the end of February and end of March this year, reveals some interesting findings:

Consumers in the U.S. are more concerned about the economy than the environment, whereas in developing countries such as Brazil (72% concerned about the environment, 25% by the economy) and India (59% environment, 32% economy), the opposite is true.

• Although 35% of those interviewed in the United States say they plan to spend more on green products, this figure has actually fallen 4% since 2009.
• More than 60% of consumers around the world say they want to buy from environmentally responsible companies.
• Consumers around the world expect green companies to engage in a broad set of actions, particularly reducing toxics, recycling and managing water.
• When asked what they are looking for in a brand, being environmentally conscious features fairly highly – just behind a brand providing good value, being trustworthy, and caring about its customers.
• Consumer obstacles to buying green vary by region:
   
  • Those in Australia, France, Germany, the U.K. and the U.S. claim cost to be the overriding issue
  • Those in Brazil and India believe there is a limited selection available to them
  • Chinese consumers are confused about green labeling

The online survey was conducted by Cohn & Wolfe, Landor Associates and Penn Schoen Berland in partnership with Esty Environmental Partners. Online interviews were conducted with 9,022 people in Australia, Brazil, China, France, Germany, India, the United Kingdom and the United States.

Posted in Environment |
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Understanding the Impact and Effect

In her latest Thursday Night Insight, Carol-Ann Morgan points out that our best intentions are not always quite as well received as we might hope.

In 1687, Sir Isaac Newton compiled his three laws of motion. The third law is commonly reported as…

 
“To every action there is an equal and opposite reaction”

 
Whilst these are physical laws governing relationships between the forces acting on a body and the motion of the body, and concern acceleration and mass, I wonder if Sir Isaac realised the full potential of his laws in the social and political arena.

The environmental story has been hovering around the top of the political agenda for some time now and, consequently, there is considerable attention given to the issues being debated in the press. However, we are having trouble grasping the arguments, as they are so equivocally defined and incalculable to the man on the street. Whilst experts argue amongst themselves as to the level of influence from our behaviours, and even the value of action, most of us are left confused as to what we should do next.

Excited by the idea of developing alternative fuels which reduce harmful emissions into the atmosphere and potentially threaten the long-term future of the planet, the growth of some crop-based biofuels has now been shown to carry some responsibility for recent global food shortages. Similarly, engines developed to reduce emissions appear to have created social tensions and increasing hardship amongst communities living and working around the platinum mines.

Examples such as these can be found all around us, and they demonstrate that there can be counter-reactions to most of our actions, particularly so in the commercial environment. These counter-reactions can be both positive and negative; delivering business opportunities or threatening our existing business operations or offerings. This is where research plays a strong role. Testing concepts and new business offerings in the marketplace can throw up any unexpected or unwanted reactions, which then prepare us for the future. Being in possession of this knowledge enables us to take advantage of new opportunities and also mitigate threats to the business.

Change and development are critical to the future of most businesses; spotting the needs of the future before they are in full view, and responding to them, is critical. However, Newton’s law serves to remind us to ensure we are aware of, and give due consideration to, potential unwanted consequences which may be harmful to the future security of our business.

Posted in Business Development, Carol Ann Morgan, Environment, Forecasting, Growth, Market Assesment, Marketing Strategy, Needs, Product Development, Strategic Marketing, Thursday Night Insight |
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Research Energises VPhase Product Expansion

Environmental issues have undeniably come to the fore in recent years. Topics such as carbon emissions, waste reduction and energy conservation are now a central part of the political and commercial agenda in every country. Whilst this trend has created its own unique set of financial pressures for businesses and householders alike, it also represents a major opportunity for companies to develop products and services that can help.

VPhase, part of the Energetix Group, has developed an energy-saving device for domestic premises, which uses the concept of voltage optimisation to significantly reduce electricity costs for householders. By “smoothing” fluctuations and lowering output voltage moderately, the VPhase unit delivers typical cost savings of 17% on fridges and freezers, and 15% on lighting. All of this is achieved using a compact device that can be installed at minimal cost and requires no change in consumer behaviour.

Although voltage optimisation has been used in industrial settings for many years, adapting the technology for use in the home is a significant development. VPhase has made significant inroads in bringing the product to market in the UK, and has teamed with British Gas and Scottish and Southern Energy to offer the technology to their customers. Moreover, VPhase has recently begun selling the VPhase unit directly to householders and the trade.

Given the success of the unit in the UK, VPhase naturally wished to explore opportunities for introducing the device to the European market. Business-to-business market research specialist B2B International was commissioned to conduct a Europe-wide market assessment exercise, designed to appraise the size and nature of the opportunity for selling the product more widely. The research used a combination of extensive desk research and in-depth expert interviews with parties responsible for marketing and distributing energy efficiency products right across the continent.

Results found that there was significant groundswell amongst consumers for taking energy efficiency measures in their homes and that the promise of pain-free, consistent savings in both electricity use and CO2 emissions was especially valuable. The research also revealed that Northern European countries, with higher relative electricity costs, greater average consumption of electricity, and supportive governmental incentives for adopting energy efficiency measures, were especially attractive for launching the product.

B2B International’s research manager Oliver Truman, who directed the project, believes that the positive reaction to VPhase is indicative of a wider shift in attitudes towards environmental products: “We found that it wasn’t just publicly-funded energy efficiency bodies that showed enthusiasm for the product. The commercial sector, particularly large utility companies, have embraced the energy efficiency agenda whole-heartedly and were keen to learn more about what the VPhase product could do. So long as the energy-saving benefits of a product like VPhase are proven and well-communicated, consumers can rationally see the virtues of making an investment in energy efficiency”.

Lee Juby, CEO of VPhase, said: “The principles of voltage optimisation have been delivering energy savings to industrial and commercial buildings for many years. VPhase brings these savings to the home. I am looking forward to rolling out VPhase to many millions of customers across Europe”.

Posted in Environment, Europe, Green Products, Product Development, VPhase |
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Sustainable Growth For Sustainable Products

In spite of some predictions that environmentally-friendly products and practices would fall by the wayside during the recession, AdAge.com reported in April that green marketing is showing itself to be somewhat recession-proof.

One study shows that so far in 2009 there have been more than 450 launches of package-goods products claiming to be sustainable, environmentally friendly or "eco-friendly."  If this rate continues for the rest of the year, we can expect to see three times as many ‘green’ launches as last year; 2008 itself witnessed more than double the number from 2007.

Consumers, too, appear to be continuing to buy sustainable lines in spite of the higher costs commonly associated with these products.  Sales of organic food, for example, are still continuing to grow, albeit not at such high rates as in previous years.  Similarly, sales at natural food stores climbed 10.9% last year to $4.2 billion which, despite some slowing in the fourth quarter, was still better than many of the top-performing major grocery retailers.

In a different market, $2 billion-plus global value brand Scott, which reaches one in three U.S. consumers, has a new product offering: toilet paper, paper towels, napkins and wipes made from 40% to 80% recycled content.  The launch of these new eco-friendly lines follows market research showing that its value-minded consumers still want to minimize the environmental impact of their purchase: 86% said they are interested and 41% said they are very interested in products with recycled content.

Similarly, K-C’s Huggies Pure & Natural diapers are currently being launched, and are positioned as having more natural ingredients and post-consumer content than other products.  Pre-launch, online buzz about the new product generated almost 200,000 requests for samples.

Whilst these are just a few of many possible examples which indicate that buyers are still very aware of – and concerned about – environmental issues, they demonstrate the potential of ‘going green’.

Posted in Eco-friendly, Environment, Green Marketing, Green Products |
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