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.” 

 

 

FOR A FREE COPY OF THE 2010 CONE CAUSE EVOLUTION STUDY, PLEASE VISIT WWW.CONEINC.COM/RESEARCH.

 

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About the Research:

The 2010 Cone Cause Evolution Study presents the findings of an online
survey conducted July 29-30, 2010 by ORC among a demographically
representative U.S. sample of 1,057 adults comprising 512 men and 545
women 18 years of age and older.  The margin of error associated with a
sample of this size is ± 3%.

 

About Cone:

Cone LLC (www.coneinc.com)
is a strategy and communications agency engaged in building brand
trust.  Cone creates stakeholder loyalty and long-term relationships
through the development and execution of Cause Branding, Brand
Marketing, Corporate Responsibility, Nonprofit Marketing and Crisis
Prevention and Management initiatives.  Cone is a part of the Omnicom
Group (NYSE: OMC) (www.omnicomgroup.com).

 

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Contact Information:








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Sarah Kerkian



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Cone



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Casey Brennan



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617.939.8380