A new report by the World Economic Forum has explored the reasons behind the ‘intention-action gap’, where consumers that say they’re willing to pay more for sustainable products fail to translate that intent into purchasing behaviour.
The Forum’s study, which was published to coincide with World Consumer Rights Day (15 March), notes that as many as 80% of consumers say that they would be willing to pay a premium for sustainable products, however purchases of conventional goods still dominate most markets.
‘This could be framed as consumer inconsistency or irrationality,’ it noted. ‘In reality, it reflects how markets are structured and how decisions are shaped long before a product reaches a consumer’s shelf.’
Price perception
A leading factor is price perception, with sustainable products often carrying a visible price premium, while the environmental benefits associated with them are ‘distant and abstract, making them harder to quantify’.
Habitual supermarket shopping patterns also play a role, with most decisions in a store environment made quickly and automatically.
‘Switching from a familiar brand to a labelled-sustainable alternative introduces effort and friction: comparing ingredient labels, interpreting sustainability claims, assessing their credibility, scanning QR codes and visiting different sections of a store,’ the Forum noted.
Another factor cited is social norms – where conventional products dominate store shelves, the sustainable alternative can seem experimental, niche, or a ‘deviation from the norm’.
Market structure
Beyond individual behaviour, the structure of markets also affects consumer choices, with greenhouse gas emissions, ecosystem degradation and labour conditions not reflected in the price that consumers see on the shelf, meaning less sustainable goods appear ‘artificially affordable’.
Retail design and promotional strategies may play a role in reinforcing these patterns by favouring established brands with greater scale and marketing resources.
‘Rising awareness alone will not shift markets if sustainable choices remain more expensive, less visible and more effortful,’ the Forum added. ‘Closing the intention-action gap requires redesigning the environments in which decisions are made.
‘This means moving beyond nudging individuals and toward aligning economic signals, regulation and infrastructure.’ Read more here.
