Switching for a cause - cause-related marketing

American Demographics, April, 1997 by Kevin Heubusch

Three in four adults say they would be likely to switch to a brand that is associated with a good cause, according to a new study by Roper Starch Worldwide for Cone Communications, Inc. That share is up from 66 percent just three years ago. Similarly, three quarters of adults would be likely to switch retail stores to support a good cause -- up from 62 percent in 1993.

Yet there is a catch: these are the shares of adults who would switch if price and quality were equal. That makes it easy to choose between a product that supports a cause we care about, and one that doesn't. Even when consumers are asked if they would switch brands or stores, all other things being equal, some are more likely than others to say they would.

"Nobody buys a service because of cause-related marketing," says Carol Cone, CEO of Cone Communications." But it differentiates a brand or a retailer. Any leading brand has already established price and quality. Good cause-related marketing positions a company in an increasingly competitive retail market."

The likelihood of saying they would switch brands or stores increases with income, which may be a reflection of educational attainment. Age differences in propensity to switch suggest this, also. Adults aged 60 and older, who as a group have lower educational attainment than younger Americans, are less likely than their younger counterparts to say they would switch brands, at 68 percent. For younger adults, the shares vary little among age groups, and range from 77 percent to 80 percent.

Popular programs like Avon's Breast Cancer Awareness Crusade have probably helped boost the likelihood of switching for a good cause. This may be especially true for lower income adults, who are core customers for Avon's midpriced cosmetics and skin-care products. The share of adults who say they would switch brands increased much more robustly for low- and middle-income adults than the affluent between 1993 and 1996.

For more information on the study, contact Cone Communications, 90 Canal Street, Boston, MA, 02114; telephone (617) 227-2111.