Do/be good, sell more

Indian consumers have a soft corner for brands that spend more on good causes, if Edelman’s 2009 Global Goodpurpose Survey is to be believed.

The study, in its third year, has revealed that Indian consumers are more demanding of businesses and themselves.

In fact, 74% of consumers interviewed think brands and companies should spend less on advertising and marketing and more on good causes (up 14 percentage points from 2008). Compare this with the global average of 71%, up from 62% last year.
The survey was fielded among consumers ages 18-64 across ten countries from July to August 2009.

The research firm StrategyOne conducted an online survey in all countries except India and China, where the survey was conducted face-to-face. The survey sampled 6,026 adults in the US, China, Canada, UK, Germany, Italy, France, Brazil, Japan and India.
The study results suggest that brands will continue to benefit from identifying and contributing to a positive social purpose that makes sense for their business not only because customers will become more committed and energised purchasers, but more importantly because, as the research shows, 64% would recommend a brand that supports a good cause (up from 52% in 2008).

Further, two out of three (67% ) say they would switch brands if another brand of similar quality supported a good cause.

Globally, 66% of those interviewed (and 69% of those interviewed in India) believe it is no longer enough for corporations to simply give money away to a good cause.

They need to integrate good causes into their day-to-day business. In the past year, 61% globally have bought a brand that supports a good cause even if it was not the cheapest brand. The figure for India is 75%.

In fact, the survey of 6,000 people in 10 countries revealed that during this recession, 57%  believe a company or brand has earned their business because it has been doing its part to support good causes.

While more than half (56%) believe the interests of both society and business should have equal weight in business decisions, consumers are increasingly recognising and rewarding brands that contribute to the greater good — with 63% looking to brands and companies to make it easier for them to make a difference.

Results from the study, coupled with the realities of the prolonged recession, indicate new consumer shifts have resulted in a startling trend away from traditional status markers like big houses and luxury cars and toward identification with social purpose itself, supporting the need for companies to become aligned with an authentic social purpose.

“Consumers are now wearing, driving, eating, and living their social purpose as sustained engagement with good causes becomes a new criterion for social status and good social behaviour,” Mitch Markson, Edelman’s chief creative officer, president of its brand consulting group and founder of Goodpurpose told DNA Money over phone.

“This gives companies and brands that become associated with a positive and worthy cause an opportunity to build long-term relationships with consumers that, in turn, allow consumers to feel valuable within their communities and social sets.”

Businesses are increasingly taking notice. In fact, social purpose is now integrated into the business purpose for many companies and brands, as new markets are created around it and it is used to protect share and enhance loyalty and reputation within existing markets
“People are demanding social purpose, and brands are recognising it as an area where they can differentiate themselves and in many parts of the world, not only meet governmental compliance requirements, but also build brand equity. This year’s study shows that if companies respond intelligently to the sea change in consumer attitudes, brand loyalty among consumers — even during seriously challenging economic times — will actually grow. Even better, consumers will want to share their support for these brands with others,” added Markson.