Now Reading
Consumers Respond to Brands Affiliated with Social Issues
Consumers Respond to Brands Affiliated with Social Issues
Published 02-02-05
Submitted by Business in the Community
According to Business in the Community's latest research on Cause Related Marketing* entitled Brand Benefits (2003/04), consumer perception, loyalty and actual buying behaviour is affected when companies demonstrate a commitment to addressing social issues by partnering with a charity or good cause. Brand Benefits (2003/04) analyses consumer attitudes towards Cause Related Marketing, consumer awareness of and participation in Cause Related Marketing as well as the subsequent impact on Brand Equity, the bottom line and consumer behaviour.
Brand Benefits (2003/04) provides clear evidence that consumers are influenced by marketing strategies connected to charities and causes - 48% of consumers showed an actual change in behaviour, saying that they switched brands when price and quality were equal, increased usage or had tried or enquired about new products. While 46% of consumers said that it improved their perceptions by making them feel better about using the product, company or service.
Millward Brown's study suggests that "consumers care in abstract," meaning that at the point of purchase ethical issues are "way down the pecking order." However, at a time when traditional purchase discriminators, such as product, price and quality are being eroded, consumers are increasingly discriminating between companies and brands on more subjective criteria, such as corporate behaviour and reputation.
Cause Related Marketing is a very visible way for a business to demonstrate its commitment to responsible business practice. The research has also clearly found that Cause Related Marketing helps businesses, and charities alike build and enhance their brands. Awareness of Cause Related Marketing has a significant increase on brand affinity with consumers consistently rating businesses, brands and charities higher on brand affinity statements of trust, innovation, endorsement and bonding. Participation in Cause Related Marketing further increases this positive perception of businesses and brands.
Brand Benefits (2003/04) finds that when a company or brand forms a partnership with a charity or cause to market an image, product or service for mutual benefit, there is a positive impact on consumer behaviour. In fact of the 83% of UK consumers who have participated in a Cause Related Marketing programme, 7 out of 10 reported that they were positively influenced at the point of purchase or decision making by a Cause Related Marketing programme.
Further evidence of the positive impact of Cause Related Marketing programmes on actual buying behaviour is provided by the analysis of the Tesco Clubcard customer database. For example, during the Persil and Comic Relief Cause Related Marketing programme, sales of Persil were up by 13% during the campaign as compared to the previous 12 weeks. Persil sales were also up by 19% as compared like-for-like on the previous year.
Notes for Editors
*Cause Related Marketing is defined by Business in the Community as "a commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product or service for mutual benefit". It is an additional tool for addressing the social issues of the day through providing resources and funding whilst at the same time addressing business marketing objectives.
Brand Benefits (2003/04), supported by Research International, Lightspeed Research and dunnhumby is the most holistic study ever carried out on Cause Related Marketing. The research covers the relationship between Cause Related Marketing, brand affinity and brand equity but also covers the critical questions on the impact on actual consumer perception, loyalty, buying behaviour and the bottom line.
The first phrase of the research was conducted in 2003, and investigated over 6,000 consumers' (4,000 from the UK and 2,000 for the USA) perceptions of companies and brands based on key brand affinity measures such as trust, innovation, endorsement and bonding. For the first time, the research also quantifies the impact of Cause Related Marketing on product sales, customer spend and market share.
The second part of the research was conducted in 2004, kindly sponsored by Tesco. Through a series of consumer focus groups and accompanied shops, the research explores in more depth the impact of Cause Related Marketing on consumers' perceptions and behaviour. The research also gauges consumers' real and immediate responses to a number of current Cause Related Marketing programmes.
The Business in the Community Cause Related Marketing Guidelines were first launched in 1998. The Guidelines aim to help ensure the quality and integrity of partnerships between businesses and charities or causes and focus on The Key Principles that must underlie any CRM partnership or programme and The Key Elements in the process that should be followed. These Guidelines provide guidance and support for organisations striving towards excellence in Cause Related Marketing.
The Cause Marketing Partnerships (CMP) Campaign at Business in the Community is committed to maximising the value that businesses provide to the community through leveraging the power of their brands. Over the last ten years through the Cause Related Marketing Campaign, Business in the Community has provided the principles of good practice, the business case and the case studies of how this can be done through Cause Related Marketing. Cause Related Marketing is an established and successful way for businesses to strategically provide funds and resources for charities and good causes. The Cause Related Marketing Campaign has expanded its focus to include all the ways in which businesses can lever resources into charity partnerships and good causes. As such, the recently renamed Cause Marketing Partnerships Campaign will be focusing on Cause Related Marketing, Charity of the Year, Employee Volunteering, Payroll Giving.
Chaired by Tim Mason, Director, TESCO plc, the Campaign is also supported by Avon, Barclays plc, Bettys & Taylors of Harrogate, Cadbury Trebor Bassett Ltd, Cadbury Schweppes plc, Centrica, Dollond & Aitchison, Ford Motor Company Ltd, GWR Group plc, Lever Faberge Ltd, Research International (UK) Ltd, Glaxo SmithKline plc, TESCO plc, Walkers Snacks and The Marketing Society. The Campaign aims to generate awareness and understanding of business and community partnerships, whilst inspiring a higher quality and greater number of programmes. This will be achieved by demonstrating the power that brands can have in partnership with charities and good causes in making a positive impact on key social issues in society, and through the sharing of best practice.
