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Price Sensitivity of Environmentally-Friendly Products

According to Natural Marketing Institute’s 2007 LOHAS Consumer Trends Database, price is still a very important factor for determining purchase propensity. As shown in the figure above, nearly 60 percent of U.S. consumers admit that “while they care for the environment, they purchase items based on price” and less than one-third of consumers are willing to pay 20 percent more for environmentally-friendly products. Especially given overall economic stability concerns, manufactures must remain conscious that environmentally-friendly products and services must be moderately priced for mainstream acceptance, according to the report.

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