PRESS RELEASE
What We Intend To Do Is Often Not What We Actually Do
AUCKLAND (20 Sept 2007): The
Robin Hood Foundation in New Zealand had searched
for six months for global research that proves just
how many consumers have switched brands to companies
that have supported a good cause.
But all it could find internationally was research
on consumers who stated their intention to switch
brands, rather than those who actually had.
In partnership with global researcher Nielsen
Media Research, the Robin Hood Foundation uncovered
actual consumer behavior in New Zealand related to
cause-related marketing. Its findings?
Over half of New Zealanders 10 years and over have
bought a product or service because
of its association with a charity or worthy cause.
What surprised them most was the clear ‘vote
or veto’ from consumers in response to social
reputations across hundreds of purchasing categories.
They analyzed what the consumer who cares
was spending on their shopping basket every week,
the brands they were buying, the likelihood they would
pay more if a product was from a socially-engaged
company, the frequency with which they bought a new
car, which bank they chose, which mobile phone company
they signed up with, which airlines they flew, and
how they chose to invest their funds. The results
of the study provided a detailed snapshot of how consumers
viewed one company’s social stand versus another.
What they hadn’t expected was just how influential
these consumers were. They were in the top two-thirds
of their workforce, they had impressive discretionary
spending, and they were happy to vote with their dollars.
The research also dug deep into consumers’ media
habits insightful for companies wanting to understand
how to reach them. Television viewing among these
consumers was selective, but reading habits were well
above the average in amount read and scope, they were
loyal to radio stations, they used the Internet, they
bothered to read billboards, and they remembered them.
All clear road markings for businesses wanting to
know where to catch this attractive consumer who wants
to know what businesses are doing socially.
Since that groundbreaking initial research caught
the attention of the business sector three years ago,
the original architect of the research, Nick
Jones, along with Nielsen Media Research, has
continued to further develop the unique "Consumer
Who Cares" research for some of New Zealand’s
biggest power companies, banks, airlines, televisions
stations, and magazine publishers, its postal service,
companies such as Coca-Cola, and charities such as
the World Wildlife Fund and Make Poverty History.
Robin Hood Asia, which is launching
this month at the Asian
Forum on Corporate Social Responsibility in Ho
Chi Minh City, will build upon this innovative research
and help businesses better understand the influence
of its consumers. Robin Hood Asia asserts that doing
good is good for business and that there are
clear linkages between a company’s social stand
and consumer behaviour.
Its two CEOs have between them 35 years of senior
global corporate and UN experience. Their work will
be at the nexus of where the business and the development
dialogue meet.
They are not consultants, but innovation guides
— hands on project managers for businesses wanting
to innovate to alleviate poverty.
"Research provides business with the business
case. It reinforces the view that their consumers
want to support them doing the right thing. It also
validates the argument that innovative approaches
to doing business in low-income markets can have a
meaningful impact on alleviating poverty. Its proof-positive
validation," said Jude Mannion, Robin Hood Asia’s
CEO.
Similar consumer research from the Philippines reinforces
this:
- 40% of people are aware of private corporations with projects that are supporting the country's development
- 56% say private corporations should give substantial donations to the poor or communities in need
- 44% of adults consider a company's social programs very important in deciding whether to buy its products — compared to an average of 25% of consumers in 12 major European countries (Spain has a high of 47% consumer interest, Sweden has a low of 4%)
Companies are responding to this consumer pressure and
telling their stories of how they are making a difference.
And their consumers are rewarding genuine commitments
to doing good. The greater the impact of one’s
social investments, the more likely the savvy consumer
will advocate in support of that company’s products
and services.
Sources:
Jude Mannion CEO t: +852 8170-0604
e: mannion@robinhoodasia.com
Oren Schlein CEO t: +852 8170-3065 e: schlein@robinhoodasia.com
Robin Hood Asia works alongside business in developing innovations to alleviate poverty.
www.robinhoodasia.com
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