Why Aren’t Consumers Buying Green Products?

Consumers aren't as "green" as they say they are, based on a study of consumer buying behavior by consumer electronics resource Retrevo.

Most consumers (75 percent) say that buying green is important to them. However, most consumers aren't willing to pay premiums:

• 35 percent wont pay any premium
• 50 percent won't pay more than a 5 percent premium
• 75 percent won't pay more than a 10 percent premium

Part of the reluctance to pay a premium probably has to do with the recession, Retrevo points out. Retrevo says CE manufacturers should encourage buying green products by lowering the price premium to under 5 percent.

View slideshow for breakdown of findings.

"CE brands need to commit to some of this investment especially at the low-to-mid range of these products (where prices can influence a consumer's purchase dramatically," Retrevo says.

Retrevo goes on to suggest that the government invest in promoting green product purchasing — a "short-term fix to incentivize consumers while we work on expensive longer term solutions."

False Claims of Energy-Efficiency

Confusion may also make consumers reluctant to buy green products. Walk down the aisles of any Best Buy or Home Depot and you'll see countless products that tout themselves as green or energy efficient.

The overkill inevitably leads the consumer to wonder if any of it is real. Enter "green washing," a new addition to the lexicon that refers to unjustified green claims and insinuates that there are a lot of manufacturers that say their products are more green than they actually are.

There is a lot of so-called green washing going on, according to James Farnham. He's the president of Cleantech, a green builder and consultancy aimed at broadening the clientele for green technology.

Cleantech, which aims to offer homebuyers three levels of tiered green system packages, says it observed green washing when researching products to include in its homes. Farnham says Cleantech devoted a lot of resources to weeding out the not-so-green green products.

It's a lot to ask of consumers to do the same level of research, although government certification programs such as Energy Star help.

It's no surprise that consumers are confused … and hesitant to buy green.

Why do you think consumers aren't buying green products? Leave a comment below.