Earthsense: LOHAS and LOHOE Complementary Concepts

(Bringing sustainability to the masses by thinking like a consumer!)

HowHedonics & Economics

are the natural

complement to LOHAS

2

Sustainable consumption?

3

PSYCHOLOGY studies focusing on desire for pleasure and the avoidance of pain; happiness

PHILOSOPHY theories surrounding ethics of seeking individual pleasure at the expense of the well-being of others

Hedonics

4

Eudaimonics:contentedness,purpose & meaning,‘raison d’etre’

Hedonics: temporal feelings, more positive feelings than negative

5

...think I’ll buy the chocolate mocha

madness ice cream because …Ben & Jerry’s

is such an environmentally

sensitive company.

...think I’ll buy the chocolate mocha

madness ice cream because …it is cold and creamy and chocolate –

it tastes so good!

OR

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The Dimensions Framework

Atti

tude

Behavior

LOHAS

77

Dimensions

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIOR

ATTITU

DE

Detached18%

Detached18%

Strivers16%

Strivers16%

Believers15%

Believers15%

Ambivalent1%

Ambivalent1%

Habitual4%

Habitual4%

Practical4%

Practical4%

Skeptic24%

Skeptic24%

Selective11%

Selective11%

Enthusiasts7%

Enthusiasts7%

Source: Eco-Insights 2008, 2009

CORE

RIM

88

Market Shifts 2008 to 2009

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIOR

ATTITU

DE

Detached12%

Detached12%

Strivers17%

Strivers17%

Believers16%

Believers16%

Ambivalent<1%

Ambivalent<1%

Habitual3%

Habitual3%

Practical2%

Practical2%

Skeptic30%

Skeptic30%

Selective12%

Selective12%

Enthusiasts7%

Enthusiasts7%

LOW MEDIUM HIGH

LOW

MED

IUM

HIGH

BEHAVIORAT

TITU

DE

Detached18%

Detached18%

Strivers16%

Strivers16%

Believers15%

Believers15%

Ambivalent1%

Ambivalent1%

Habitual4%

Habitual4%

Practical4%

Practical4%

Skeptic24%

Skeptic24%

Selective11%

Selective11%

Enthusiasts7%

Enthusiasts7%

2008 2009

Biggest change is the shift from “Skeptics” to “Detached.”



Love the taste

Fave Brand

Live long & prosper

What’s in &

not in it

It’s easyPsst! Try this!

MONEY

LOHAS

ManufacturingSource

Packaging

LOHOE

TastePrice

BrandFuture HealthCurrent Health

AvailabilityLifestyle

IngredientsRecommended

Green Core

Green Rim

Taste TasteIngredients Ingredients

Lifestyle Price

Green Core

Green Rim

Taste LifestyleManufacturing Availability

Source Packaging

Green Core Green RimIngredients /

MaterialsIngredients /

MaterialsHealth / Safety Quality

Quality Brand

Green Core

Green Rim

Cost savings Cost savingsImpact ImpactQuality Quality

Green Core

Green Rim

Cost savings Cost savingsImpact BrandQuality Price

19

We don’t need no stinkin’ green premiums


Soup

Refrig

erat

or

Wal

l pai

nt

Yogur

tCar

Coffe

e

Poultr

y

Larg

e TV

Electr

icity

Skinca

re lo

tion

Laun

dry d

eter

gent

Juice

Paper

towel

s

Strawbe

rries

Froz

en ve

geta

bles M

ilk

Pet fo

od

Noteb

ook c

ompu

ter

Crack

ers

MP3

Playe

r0

5

10

15

20

25

30

35

40

45

50

2008

2009

% W

illi

ng t

o P

ay G

reen P

rem

ium

% Willing to Pay a Premium for Different Green Products


Economics trumps desire…Rate of Green Buying in Next 12 Months for Big Ticket Items

Big Ticket Purchases (May 2010 GCI) Total

House buyers

Apt buyers

Remodelers

Car buyers

HH appliance

buyers

I probably will buy them in what I consider “green” versions, even if it costs a little more 30 8 19 20 20 37I probably will buy them in what I consider “green” versions, if the price is about the same 42 46 41 37 36 45I probably will buy them in what I consider conventional/non-“green” versions 14 21 5 11 20 6I don’t know if I will buy them in “green” or conventional/non-“green” versions 14 25 35 32 24 13

21

Green Premium Payer Profiles Differ by Product

Source: Eco-Insights 2009

Product category

Men more likely to pay

premiumNo gender difference

Women more likely to pay premium

Crackers X

Granola bars X

Pet food X

Poultry X

Detergent X

Paper towels X

Skincare lotion X

Car X

Computer X

MP3 player X


5%

10%

30%

34%

20%

How often do you read labels?

NeverRarelyOccasionallyOftenAlmost always / Always


Price

Nutritional content

Quantity of product

Brand

Additives

Non toxic

Seals or certifications

Country of origin

Natural

Bio-degradable

No artificial hormones or antibiotics

Packaging that is recyclable

Packaging made from recycled materials

Not tested on animals

Organic

Phosphate free

Safe for septic and gray water systems

Kosher certification

0% 10% 20% 30% 40% 50% 60% 70% 80%

What information do you usually look for?

25

RETHINK

26

REDUCEREUSERECYCLE

27

REFUSERETOOLRESTYLE

28

RESEARCHREINVENTREPOSITION


LOHAS and LOHOE are not mutually exclusive concepts


Thank you!Earthsense.comGreenConfidenceIndex.comAsTheEarthSpins.com

Earthsense: LOHAS and LOHOE Complementary Concepts

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