Cause Marketing Affects Sales, says New Study


According to research conducted by Cone and Duke University’s Fuqua School of Business, cause-related marketing can exponentially increase sales. Nearly 200 research participants evaluated a new regional magazine and were exposed to either a cause-related or generic corporate advertisement for one of four focus brands.

Afterward, participants entered a mock convenience store and were given real money to purchase a product in each of the four categories. Their subsequent purchase decisions revealed the following:

•    74% increase in actual purchase for a shampoo brand when associated with a cause (47% of participants who saw the cause-related message chose the brand, while only 27% who said the generic corporate advertisement chose the brand);
•    28% increase in actual purchase for a toothpaste brand when associated with a cause (64% of participants who saw the cause message chose the target brand versus 50% who viewed the generic corporate advertisement); and,
•    Modest increases in the other two product categories tested (chips and lightbulbs); qualitative consumer responses showed that the issue, the nonprofit and the inherent nature of products were key factors in making cause-related purchasing decisions and helped explain why movement in these categories was not significant.

Additionally, Cone conducted the 2008 Cause Evolution Study to better identify what drove substantial product sales for two of the four brands. The following factors appeared to be important when deciding to support a company’s cause efforts:

•    84% want to select their own cause;
•    83% say personal relevance is key;
•    80% believe the specific nonprofit associated with the campaign matters;
•    77% say practical incentives for involvement, such as saving money or time, are important; and,
•    65% find emotional incentives for involvement, such as it making them feel good or alleviating shopping guilt, is important.

Source: Cone & Duke University’s Fuqua School of Business


Comments Off

Deals of the Week

Get $200 Off PR News' Digital PR Conference

 digitalpr2015-180x150_updated
Join us June 1-3 where you'll hear from top brands such as Walmart, Miami Heat, Verizon and Ritz-Carlton on PR and communication best practices for the next wave of digital trends.

Use code “200off” at checkout to save $200 on the regular rate.

Get $50 off PR News' Book of Employee Communications

employeecommunications-180x150

In this 5th volume of PR News’ Book of Employee Communications, our authors cover more than 45 articles on crisis communications, social media policies, human resources collaboration, brand evangelism and more.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

 

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.