For Which Product Aspects Are Customers Willing to Pay More?
A McKinsey study finds that Gen Z and high-income shoppers are willing to pay more for sustainable products.
I recently read a study from McKinsey, a consultancy, that had asked shoppers in Germany, Austria, and Switzerland about their willingness to pay more for certain product aspects.
Even if the results may not be fully transferable to the USA, the conclusions of this study can still serve as valuable input for your marketing strategy.
Overall, respondents said that they are willing to pay more for products that
are free of environmentally hazardous ingredients or materials,
minimize greenhouse gas emissions,
conserve natural raw materials,
avoid non-recyclable packaging materials,
are sourced locally, and
do not pollute the air.
Respondents also preferred companies that
pay their employees fairly,
refuse to use materials made with child labor,
prioritize organic ingredients, and
create a safe and healthy work environment for their employees.
According to the study, these preferences were strong with respondents who fall into Generation Z's demographic category (born between 1997 and 2015) or with high-income earners. 60% of those said they were willing to pay more for sustainability, while 40% responded that they were not.
Suppose you would like your business to attract more younger shoppers or high-income earners. In that case, it may be worthwhile to introduce products that respond to the sustainability preferences of these customers.
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