From a consumer perspective,
there is a well-researched trend for consumers to yield
their purchasing power based on how they perceive a company’s
social reputation.
Originally developed by AC Nielsen, research conducted in
the Asia-Pacific region indicates that consumer
purchasing behaviour can swing as high as 50% to supporting
brands that have a robust social reputation. From
an employee perspective, similar research demonstrates that
attracting and retaining good people is often influenced
by a company’s social reputation.
Are you engaging with the millions
of "consumers who care"?
Millions of consumers are part of a growing global
trend that is seeing consumers taking an increasing interest
in how companies are behaving socially, environmentally
and culturally. These consumers who care form an attractive
and challenging marketing proposition as they are bound
together by a common behaviour — they will actively support
companies that are making a positive difference in society.
These consumers see it as part of a company's responsibility
to support social causes, particularly those that benefit
the poorest and most underprivileged communities. The returns
for companies that respond to consumer interest in a business’s
social stand include:
- consumers think more highly of these companies
- consumers feel more loyal to these companies
- consumers buy products and services from
these companies
- consumers will pay more for a company’s
products and services
Consumer behaviour is influenced
by a company’s social stand
- 53% of people think more highly of companies
that have a strong social stand and/or support charitable
causes
- 38% of people feel more loyal to such companies
- 43% of people – and 49% of main household
shoppers – have bought a product or service from
a company because of its charitable support
- 46% of those who bought a car in the last
year have done so from a company that has supported a
charity or worthy cause — they are 8% more likely to do
this than the average person
- 61% of heavy readers of daily newspapers
think more highly of companies that support charities
— they are 7% more likely to feel this way than the average
person
Negative corporate behaviour
influences consumer preferences
- 30% of people in the Asia-Pacific study
have intentionally avoided buying a product or service
from a specific company because of concerns about its
impact on society or the environment
- Nearly one-half of American consumers say
their negative perception of a company has led them to
consider punishing that company by not purchasing its
products or services, or by speaking up against the organization
Communicating your social stand
to consumers
- Nearly 40% of people would like companies
to tell them more about how they are making a positive
difference to society or the environment so they can support
them
Vote or Veto
Consumers’ expectations have changed. They want
to know whom companies are dealing with and what they stand
for socially. Simply put, consumers will vote for, or veto,
brands based on their perceptions.
Additional consumer research from the Philippines
backs this up…
- 40% are aware of private corporations with
projects 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:
|