Commentary

Global Consumers Support "Good Cause" Companies

According to new findings from the 3rd annual Edelman Consumer Study, 57% of consumers globally say a company or brand has earned their business because it has been doing its part to support good causes, with Asian countries coming in highest with China at 85% and India at 84%. 67% globally also say they would switch brands if another brand of similar quality supported a good cause, peaking in Brazil at 83% and Italy at 74%.

The study also found that 83% of people are willing to change consumption habits if it can help make the world a better place to live, indicating a startling consumer shift and trend away from traditional status markers like big houses and luxury cars and toward identification with social purpose brands. The findings overall show that

  • More than twice as many people (67%) would rather drive a hybrid car than a luxury car (33%), with Japan (89%) and France (84%) preferring hybrid cars most.

Globally, the study found that

  • 70% of people would prefer to live in an eco-friendly house than merely a big house (30%)
  • 68% also now feel that it's becoming more unacceptable not to make noticeable efforts to show concern for the environment (rising to 82% in China) and live a healthy lifestyle (87% in China)
  • 69% globally would rather have a brand that supports the livelihood of local producers than a designer brand (31%), North American and most European countries in the study, as well as Brazil, overwhelmingly prefer supporting the livelihood of local producers, with each indicating more than 80% preference

Causes Global Consumers Personally Care About

Cause

% Who Care

Protecting the environment

91%

Improving quality of healthcare

89

Reducing poverty

87

Alleviating hunger and homelessness

86

Equal educational opportunity

86

Promoting societal health and wellness

85

Disaster relief

85

Supporting human and civil rights

83

Building understand and respect for other cultures

81

Supporting labor rights

81

Fighting spread of global disease and pandemics

80

Source: Edelman goodpurposeTM Consumer Study, November 2009

The study results suggest that in both harsh and rebounding economies, brands will continue to benefit from identifying and contributing to a positive social purpose that makes sense for their business, with 64% of people globally saying they would recommend a brand that supports a good cause (up from 52% in 2008, and in the U.S., up 16 points from 47% in 2008 to 63% this year). In addition, 63% of all respondents are looking to brands and companies to make it easier for them to make a difference, with Brazil having the highest expectations at 86%.

Mitch Markson, Edelman's chief creative officer, president of its brand consulting group, notes that "...People are demanding social purpose, and brands are recognizing it as an area where they can differentiate themselves ...not only to meet governmental compliance requirements, but also build brand equity... "

  • Brazil proved to have the highest expectations on brands with 89% of Brazilians expecting brands today to do something to support a good cause, and 61% are most likely to say they are more involved in good causes this year
  • More than seven in 10 Consumers in India and China say they would switch brands if a different brand of similar quality supported a good cause
  • Japan fell short of many of the global results, with the exception of choosing social purpose over social status, overwhelmingly preferring hybrid cars (89%) and eco-friendly houses (87%)
  • More than three out of four people in the UK, France, Germany and Italy were willing to change their own consumption habits if it can help make tomorrow's world a better place to live
  • Americans, too, overwhelmingly indicate they are willing to change consumption habits to make the world a better place to live (85%) and are looking to companies and brands to make it easier for them to make a difference (65%)

While the global recession has created limitations, with 70% of consumers saying their ability to give money to community causes has been limited, people are still giving of their time:

  • 33% have given less financial support due to the current economic downturn (rising to 51% among U.S. respondents)
  • 31% are more involved in good causes than a year ago
  • 53% have given more time in support of good causes this year because they have not been able to give as much money
  • 56% have tried to do more to support good causes in the past year because charities and other nonprofit organizations have suffered in this economic environment

While the study reveals that social purpose is becoming increasingly crucial to a brand's success, 66% of people believe that it's no longer enough for corporations to merely give money away, but that they must integrate good causes into their day-to-day business.

The report says that the biggest global social changes include:

  • 83% of respondents are willing to change consumption habits if it can help make the world a better place to live
  • 71% of respondents think brands and companies spend too much on advertising and marketing and should put more into good causes - up almost 10%age points
  • 64% would recommend a brand that supports a good cause - up from 52% last year globally
  • 59% would help a brand promote its products if there was a good cause behind it - up from 53% last year
  • 44% are aware of brands that actively support good causes through their products and services - up from 33%

Markson concludes that "Companies that become catalysts for social change and respond to rising consumer expectations... will not only survive, but also thrive in ways their competitors will not... "

Please visit Edelman here for more information.

 

 

 

2 comments about "Global Consumers Support "Good Cause" Companies ".
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  1. Rodney Brooks from ToTouch One, Inc, November 11, 2009 at 12:33 p.m.

    If 83% of people are willing to change consumption habit to make the world a better place than why would you not want to switch to eco-friendly, safe and natural products and save up to 40% just by changing your shopping habits? See now at www.whatsyourplanb.ning.com

  2. Lou Vaccarelli from Shape Media, LLC, November 11, 2009 at 2:06 p.m.

    Thumbs up - very insightful. I have this debate often that even if everything is equal why not support a cause.

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