SUSTAINABILITY HAS BECOME A powerful driver of consumer behavior. People are changing what they consume, how they consume, and how they lead their day-to-day lives, motivated by a concern for sustainability. Our research has identified a consumer-driven megatrend that holds tremendous strategic opportunity for companies if they change how they think of consumer preferences for sustainable options.
The belief that there is only one type of sustainable consumer fails to recognize the diversity of consumer preferences. The stereotypical sustainable consumer who has an intense passion for all things sustainable and a high willingness to pay for sustainable goods and services across all categories accounts for only a small portion of the world's consumers.
Sustainability is now a present and influential factor in how most consumers make their lifestyle and purchasing decisions. But the influence of sustainability on consumers is not uniform, neither in its intensity nor its extent.
To understand these differences and make them actionable, we conducted two core studies on consumers in North America and Europe and segmented them by performing a cluster analysis based on two dimensions (see "The Research," p. 60):
The Consumer Behavior Map
The eight consumer archetypes that were identified based on their commitment to sustainability and their willingness to pay a premium are indicated below. The map also shows the percentage of the general population that each archetype represents.
This story is from the Winter 2025 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the Winter 2025 edition of MIT Sloan Management Review.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Ask Sanyin: How Do You Build for an Unpredictable Future?
While the pandemic was a wild ride of uncertainty for me and many of my peers in leadership, it feels like we never regained our footing.
What You Still Can't Say at Work
Most people know what can’t be said in their organization. But leaders can apply these techniques to break through the unwritten rules that make people self-censor.
Make Character Count in Hiring and Promoting
Most managers focus on competencies when evaluating candidates but it’s character that will transform the DNA of the organization. Here’s how to assess it.
Why Influence Is a Two-Way Street
Managers achieve better outcomes when they prioritize collaborative decision-making over powers of persuasion.
Know Your Data to Harness Federated Machine Learning
A collaborative approach to training AI models can yield better results, but it requires finding partners with data that complements your own.
How Integrating DEI Into Strategy Lifts Performance
Incorporating diversity, equity, and inclusion practices into core business planning can provide a competitive edge.
The Myth of the Sustainable Consumer
Companies that understand the different kinds of consumers for sustainable products can market to them more effectively.
A Practical Guide to Gaining Value From LLMs
Getting a return from generative AI investments requires a systematic approach to analyzing appropriate use cases.
Improve Workflows by Managing Bottlenecks
Understand whether process or resource constraints are stalling work.
Craft Schedules That Work for Everyone
Business leaders can improve retention and business performance with schedules that make sense for workers’ lives.
