Cause Consumer Behavior

2010 Cone Cause Evolution Study
EVEN AS CAUSE MARKETING GROWS, 83 PERCENT OF CONSUMERS STILL WANT TO SEE MORE
More than 9-in-10 moms want the opportunity to buy a product benefiting a cause


CONSUMER BEHAVIOR STUDY CONFIRMS CAUSE-RELATED MARKETING CAN EXPONENTIALLY INCREASE SALES

BOSTON (September 15, 2010) – Forty-one percent of Americans say they have purchased a product in the past year because it was associated with a social or environmental cause (41%), a two-fold increase since Cone first began measuring in 1993 (20%). But even as their purchasing power grows, consumer appetite for socially conscious shopping has yet to be satiated. A full 83 percent of consumers want more of the products, services and retailers they use to benefit causes, according to the new 2010 Cone Cause Evolution Study, the nation’s only 17-year benchmark of cause marketing attitudes and behaviors.

Recession Didn’t Alter Expectations

The nation’s ongoing economic woes have not deterred Americans’ social sentiment, nor their expectations that companies will benefit society. Eighty-one percent said companies should financially support causes at the same level or higher during an economic downturn. It appears business rose to this challenge – nearly two-thirds (64%) of consumers believe companies responded well to social and environmental issues during the recession.

Americans’ enthusiasm for cause marketing also emerged from the turmoil fully intact and continues to strongly influence their purchase decisions:
88% say it is acceptable for companies to involve a cause or issue in their marketing;
85% have a more positive image of a product or company when it supports a cause they care about; and,
80% are likely to switch brands, similar in price and quality, to one that supports a cause.
Not only are consumers willing to switch among similar brands, they are also willing to step outside their comfort zones. When it supports a cause:
61% of Americans say they would be willing to try a new brand or one unfamiliar to them;
46% would try a generic or private-label brand; and,
Nearly one-in-five consumers (19%) would be willing to purchase a more expensive brand.

“When price and quality are equal, we know most consumers will choose the product benefiting the cause,” explains Alison DaSilva, executive vice president at Cone. “But cause alignment can have an even bigger influence on consumer choice, pushing them to experiment with something different and unfamiliar. Cause branding is a prime opportunity for companies to extend beyond their traditional market and increase exposure to potential new consumers.”

Moms and Millennials: Most Cause-Conscious Consumers
By all measures, moms lead the way as the demographic most amenable to cause marketing. In fact, moms virtually demand the opportunity to shop with a cause in mind. A staggering 95 percent find cause marketing acceptable (vs. 88% average), and 92 percent want to buy a product supporting a cause (vs. 81% average). They are also more likely to switch brands (93% vs. 80% average), so it is hardly surprising that moms purchased more cause-related products in the past year than any other demographic (61% vs. 41% average).

Millennials (18-24 years old) are close on moms’ heels as they also shop with an eye toward the greater good. Ninety-four percent find cause marketing acceptable (vs. 88% average) and more than half (53%) have bought a product benefiting a cause this year (vs. 41% average).

A company’s support of social or environmental issues is also likely to influence this group’s decisions outside the store, including where to work (87% vs. 69% average) and where to invest (79% vs. 59% average).

Engage Consumers Beyond the Vote
At a time when consumer voting campaigns have emerged as the cause marketing tactic du jour, a majority (61%) of consumers say they would prefer to see a company make a long-term commitment to a focused issue rather than determining themselves which issue the company supports in the short-term. This does not suggest they do not want to be engaged, however. Buying a cause-related product (81%) continues to be the leading way consumers want to support a company’s efforts, but they also seek other higher-touch opportunities, such as lending their voices through ideas or feedback (75%) and volunteerism (72%).

“Putting the charitable dollars in the hands of consumers has, no doubt, been the standout cause strategy of the last two years. But although these campaigns are notable, they are not building long-lasting brand equity,” explains DaSilva. “They are big and bold today, but in one year, or five or 10, they won’t have clearly defined what the company stands for, and it may be hard to gauge social impact. This will require greater focus and more meaningful consumer engagement beyond the click of a button.”

Dual-Role of Employees
Consumers are the primary audience for most companies’ cause branding programs, but businesses should be wary of overlooking employees as a key participant in their efforts. Sixty-nine percent of Americans consider a company’s social and environmental commitments when deciding where to work. The correlation does not end once they are employed. Employees who are involved in their company’s cause efforts are much more likely to feel a sense of pride and loyalty toward their employer:
93% say they are proud of their company’s values (vs. 68% for those who are not involved); and,
92% say they feel a strong sense of loyalty to their company (vs. 61% for those who are not involved).

Employees may translate their experiences and knowledge as participants to their role as front-line ambassadors for a company’s cause efforts. Seventy percent of consumers say a knowledgeable employee may drive their purchases or donations. And when consumers do not receive the details they need to make an informed cause-related purchase, whether through employees, on-pack messaging or other channels, 34 percent will either choose another brand or walk away.

Issues Stand Test of Time
Even as businesses face a set of complex new issues, consumers remain steadfast in their expectations of what companies should address. They continue to want companies to prioritize support of issues close to home, in local communities (46%) and in the U.S. (37%), but they are gradually recognizing the need for companies to address issues globally, as well (17%).

The leading causes consumers want companies to support include:

Economic development – 77%
Health and disease – 77%
Hunger – 76%
Education – 75%
Access to clean water – 74%
Disaster relief – 73%
Environment – 73%

Americans may feel some of these issues personally, but they also recognize the impact a company can have when it supports a business-aligned issue. They are equally likely to say that a company should consider supporting an issue that is important in the communities where it does business (91%), as well as one that is aligned with its business practices (91%).

“Cause branding is standing the test of time, but leadership companies must continue to innovate to ensure their programs offer an original consumer experience, tackle tough emerging issues and make bold new commitments,” says DaSilva. “Those that are most successful and meeting the competing needs of many stakeholders are aligning issues with the business for mutual benefit and integrating these efforts into a larger corporate responsibility strategy for maximum impact.”
http://www.coneinc.com/files/2010-Cone-Cause-Evolution-Study.pdf

What is Green?

chicagotribune.com
Green consumer habits
Earth Day is past : Now what can we do?
Businesses are getting into the spirit of environmentalism

By Claudia Buck

McClatchy Newspapers

3:19 PM CDT, May 12, 2009

If only cash sprouted as easily as backyard weeds, we'd all be cheering. But greening up your wallet is still doable. Here are some Earth-friendly money habits you might want to adopt.

Green Donations

It's grown from a Bay Area brainstorm into a global campaign to get businesses into the spirit of environmentalism. Buy a shirt, a chocolate bar, a beer -- even fencing supplies or legal services -- and 1 percent of the company's gross sales are pledged to environmental nonprofit groups.

Since launching from a California Patagonia store in 2002, the One Percent for the Planet -- or 1% FTP -- program has now spread to some 1,138 businesses in 38 countries, said Terry Kellogg, the Vermont-based CEO of 1% FTP.

The participating companies range from big retailers like Sony to independent jewelry sellers. The recipients run from high-profile nonprofits like the Sierra Club to tiny grassroots groups. Based on company audits, Kellogg said more than $42 million has been contributed to environmental causes in the past six years.

For details go to, One Percent for the Planet
www.onepercentfortheplanet.org.

Green Funds

One way to feel environmentally good about your investing dollars is with so-called "green mutual funds."

The Green Money Journal recently released its new Top 10 list of mutual funds that invest in companies devoted to alternative energy, clean water, organic products and those that avoid alcohol, tobacco, gambling or weapons.

The annual list is a mix of new funds and those that have changed or enhanced their investment mix to be more environmentally conscious, said Cliff Feigenbaum, founder and president of the Green Money Journal, based in Santa Fe, N.M.

His list of mutual funds that are "greening it up": Appleseed Fund, Integrity Growth & Income Fund, Wells Fargo Advantage Social Sustainability Fund, Dreyfus Global Sustainability Fund, Calvert Large Cap Value Fund, Calvert Global Water Fund, Pax World Global Green Fund, Pax World International Fund, Pax World Small Cap Fund and Firsthand Alternative Energy Fund.

For more details, go to Green Money

Green Banking

All kinds of companies, from banks to your local utility, are urging customers to switch to electronic billing, statements and payments. The notion: Pay online, save a tree. Or two.

Pay It Green is a coalition of financial services companies that promotes electronic billing. According to the coalition, if the average U.S. household switched to electronic payments, it would annually save 6.6 pounds of paper, eliminate 4.5 gallons of gasoline (consumed by mailing and delivering all those paper payments) and eliminate 171 pounds of greenhouse gas emissions (the equivalent of 169 miles of driving or conserving 24 square feet of forestland).

A handy calculator at www.payitgreen.org lets you compute your "financial paper footprint." Another proponent, eBill Place, puts it more personally. By its "Cash & Time" calculation, the average family would save $50 a year in postage and five hours of time spent writing and stuffing checks into envelopes.

Green Plastic

If your wallet is weighed down by plastic gift cards, credit cards, gasoline cards and such, maybe it's time for some pruning. As we all know, clipping up or paying down costly credit cards can be a huge lift to your bank account.

But don't just snip and toss that plastic. If it's a used-up gift card, ask to have it reloaded with cash. If it's a no-longer-needed credit card, hotel key or other plastic, toss it in your recycling bin.

But check to be sure it's actually recyclable; some companies are converting to biodegradable materials. The Sacramento, Calif., landfill says most aren't suitable for recycle.

A greener solution? Pop it in the mail to Earthworks System, a company in Solon, Ohio, that's on a crusade to rid the world's landfills of those tiny rectangles of credit. For more information on Earthworks, go to www.earthworkssystem.com.

http://www.chicagotribune.com/topic/sfl-green-consumer-habits-051809,0,6869925.story



Youth creates 'Vision of an Eco-Friendly Earth'

From Society Scene |A marketing publication of the Sun-Sentinel Company
May 20, 2009

The Craig Zinn Automotive Group, South Florida's Premier Auto Group, joined Young At Art Children's Museum and Kids Ecology Corps to host the "Vision of an Eco-Friendly Earth" art contest awards ceremony and family-friendly reception at Lexus of Pembroke Pines. The event celebrated the achievements of all participants and winners of the "Vision of an Eco-Friendly Earth" art contest. More than 300 students in grades 6 through 12 throughout the tri-county area created their "Vision of an Eco-Friendly Earth." This contest not only showcased students' artistic talents, but also helped spread the word on fuel and economic efficiency in transportation.

"We were thrilled to host such an educational, fun and inspirational event that allows us to be involved with our community's 'green' initiative," said President and CEO of The Craig Zinn Automotive Group, Craig Zinn. "With the construction of our new eco-friendly Lexus dealership under way in North Miami, we strive to encourage South Floridians to work toward making our world a healthier and safer place. We believe that our efforts as a business and community will expand to other areas and aid in keeping the earth clean."

Prizes included gift certificates to The Craig Zinn Automotive Group dealerships, $350 in cash prizes, Apple Store gift cards and gift baskets filled with art supplies.

The event also featured a caricaturist and a live raffle with items such as an autographed Miami Heat basketball, a $200 Visa gift card to Sawgrass Mills Mall and a Young At Art annual membership basket.


http://www.sun-sentinel.com/news/local/broward/sfl-flsevisions0520semay20,0,623517.story