Causes Are Important to Consumers

If you’re looking for a new way to boost your brand, you might want to consider taking up a cause. According to a recent study from Cone LLC, 83 percent of Americans want more of the products, services and retailers they use to support causes.

The “2010 Cone Cause Evolution Study” shows that 88 percent of Americans say it’s acceptable for companies to involve a cause or issue in their marketing, which is a big increase from the 66 percent that said the same in 1993.

Meanwhile, 85 percent say they have a more positive image of a product or company when it supports a cause they care about, and 90 percent of U.S. consumers (more than 278 million Americans) want companies to tell them how they’re supporting causes.

This outlines a clear window of opportunity for brands. Consumers are drawn to cause branding, but they want to see and hear more of it.

The appeal of cause branding goes beyond just liking it. According to the study, 41 percent of Americans say they’ve purchased a product because it was associated with a cause or issue in the last year, which is more than double the 20 percent response back in 1993, the first year of the study.

Cause branding can also compel consumers to switch brands, as 61 percent of respondents said they are likely to try a new brand or one they’ve never heard of, while 19 percent are willing to buy a more expensive brand. Forty-six percent said they are willing to try a generic/private label brand (versus a name brand).

Not all industries are equal, of course. For instance, 82 percent of American consumers believe it’s important for the food and beverage industry to support social or environmental causes, while 81 percent think the same for the automotive and transportation industry.

Meanwhile, 81 percent of consumers think the manufacturing industry should support these causes, 80 percent think the same for electronics and household appliances, and 80 percent think the same for sports, media and entertainment.

Overall, moms and millennials, two of the most lucrative consumer marketing segments, are more responsive to cause branding than the average consumer. For example, 93 percent of moms are likely to switch brands because of cause marketing. While 85 percent of millennials said they would do the same. This compares to 80 percent of all consumers who said they would likely switch brands.

Economic development is the top issue consumers think companies should address, according to 77 percent of consumers, followed by 77 percent who said the same about health and disease, 76 percent for hunger and 75 percent for education.

Source:

http://www.coneinc.com/files/2010-Cone-Cause-Evolution-Study.pdf