Newsletter Stories


Monday, 01 December 2003
Ecolabel Study

RESEARCHERS AT OREGON STATE UNIVERSITY STUDY THE FSC LABEL


In the fall of 2002, Oregon State University researchers Roy C. Anderson and Eric N. Hansen performed an experiment at two Home Depot stores in Oregon, with the intent of measuring consumer-purchasing behavior with respect to ecolabeled forest products.

During the experiment, customers were offered a choice between virtually identical ecolabeled and non-ecolabeled plywood products. Data were collected by simply tracking the amount sold of each type. Comparisons were then made between the amounts sold of each type to determine if the presence of the ecolabel was associated with higher sales.

The key findings to this study, titled “Do Forest Certification Ecolabels Impact Consumer Behavior? Results from an Experiment," were:

  • The ecolabeled product outsold the non-ecolabeled product, 2 to 1, so long as the price of plywood in each bin was equal.
  • When the ecolabeled plywood was priced at a 2 percent premium, the non-ecolabeled product outsold the ecolabeled by 1.7 to 1.
  • 37 percent of the sales were to consumers who paid a 2 percent price premium.

Consumers will respond to labels that they trust. According to the authors, “the good news is that the presence of the ecolabel was associated with a larger proportion of the total sales." Michael Washburn, vice president of forestry and marketing for FSC-US, stated that, “the interest we’ve seen from architects and builders seems to also be true of retail buyers."

Washburn also confirmed that, “the study adds one more piece of evidence to the case that FSC is a viable option for companies looking to increase their market share. Every time a consumer prefers FSC to non-certified products, it gives FSC certificate holders a competitive advantage in the marketplace. This tells the rest of the market that consumers actually care about environmental performance and social responsibility."

The authors noted that plywood is a commodity product and therefore price is the most important consideration for purchase. Results would most likely vary if applied to other products, where grade and appearance are more of a consideration, such as furniture. It is likely, then, that despite a higher price, the ecolabel may positively affect total sales.