• by Sarah Mahoney  @mahoney_sarah, October 6, 2008

Just in time for the onslaught of October's pink ribbons, Cone Inc. is releasing its latest data on the effectiveness of cause-related marketing, including the results of a study that shows linking products to causes is enough to generate double-digit sales gains.

In the first part of the two-tier study--conducted in partnership with Duke University's Fuqua School of Business--researchers asked 182 adults, ages 18 to 62, to read through a magazine. (They were told they were evaluating its potential for national expansion.) They were then invited to shop in a mock convenience store, stocked with items that had been advertised in the magazine. Sales of a toothpaste brand that had been linked to a cause went up 28% compared to a control group; sales of a cause-related shampoo increased 74%. Brands that had been advertised as cause-related also generated much higher recall than those that hadn't.

The researchers then replicated the experiment online, using a nationally representative sample of more than 1,000 shoppers. While increases in sales were smaller in that group, they were still impressive: Toothpaste sales among the group that had seen the cause ads gained 19%, and among women in the online group, shampoo sales gained 14%.

As part of its 2008 Cone Cause Evolution Study, the Boston-based consulting group finds that consumers continue to respond to product pitches linked to a good cause. In its latest survey data, Cone reports that 79% of consumers say they are likely to switch to another brand if it is associated with a good cause, and 38% say they have purchased a product linked to a cause in the last 12 months. Millennials are the demographic group most motivated to do good deeds with their purchases: 88% of its 18-to-24 demographic say they are likely to switch from one brand to another if it supports a cause, and 51% have bought a product linked to a cause in the last 12 months.

And despite all the reasons consumers have had to grow more cynical about cause-related marketing in the last 15 years, they seem optimistic. Eighty-five percent say they have a more positive image of a company if it supports a cause they care about--the exact percentage when Cone asked the question back in 1993. But they are much more aware of the need for transparency. While 91% believe it's important for companies to let consumers know how they are helping in any given cause, only 58% believe they get enough details. And 50% believe that the government should actually regulate the claims.

Obviously, not all consumers feel the same way. Cone has identified about 9% of the population as Disbelievers, who are typically male. Another 23%--also typically male--are what Cone calls Passivists. While they may support a company's given cause, they are not likely to seek any involvement beyond purchase. But the balance--close to 70% of consumers--is taking in cause-related messages.

Cone divides them into three groups: Emotionalists--typically females between 18 and 35, who account for about 25% of consumers, and support cause-related branding because it makes them feel good; Advocates--typically females 35 and over, who make up about 22%; Activists--male and females, 35 to 54, who account for about 21% and who are the most committed of all.