How Giving Back Affects Pricing Perception
Guest blog by Melissa Hollis, Marketing Manager, CafeGive Social
Itâs not always easy to figure out what consumers want. Case in point: the same markets that recently pushed Harry Potter-branded chocolate to go fair trade also pressured natural and organic retailers such as Whole Foods to lower their prices. Pulled between their sometimes-conflicting responsibilities to a sustainable earth and sustainable business, brands face a critical question:
How much more are consumers willing to pay for a product that supports a good cause, as opposed to one that doesnât?
This inquiry is at the heart of a new research study by our friends at Software Advice. Entitled âKey Priorities for Ethical Supply Chains,â the report assesses the value of cause-centric decision-making from the perspectives of both companies and consumers. It also uncovers the most convincing ethical initiatives as well as a breakdown of top performing acts of community involvement.
Some of their significant findings:
â¢ Community involvement ranked as one of three top consumer priorities when it comes paying a higher price. Other convincing factors were working conditions and environmental impact.
â¢ The most convincing Community Outreach Programs ranked as follows:
â¢Â Businesses that embrace public benefit, accountability, and transparency are poised to outperform their competitors.
Let the work speak for you - transparency makes all the difference.
In an era when brands can empower consumers to make a difference in their communities, companies cannot afford to ignore their social and environmental impact. Forrest Burnson, who conducted SAâs study, agrees. He writes:
Successful businesses need to recognize that getting involved with the community and working to improve it isn't just good for public relations purposes in the short termâit's good for business in the long term. When companies work to improve their communities, they're not only investing in that community's future, but theirs as well. When you invest in educating your community or lifting its neediest members out of poverty, you create more customers and better educated employees down the road. And it's not only smart businessâit's the right thing to do.
This all resonates deeply with us at CafeGive Social. We are driven to help companies increase transparency by sharing their ethical initiatives, publicize their community involvement, and telling their giving stories.
âWhen companies work to improve their communities, they're not only investing in that community's future, but theirs as well.â
Companies that have used our tools have seen increased marketing reach, higher employee engagement in volunteer activities, andâmost importantlyâa measurable impact in making their communities and our world a better place.
Learn about how CafeGiveâs apps have helped other organizations promote their community involvement efforts to attract new customers at www.cafegive.com.