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The importance of both value and values

The Great Recession has definitely made the consumer far more value conscious in their purchasing decisions. Today value means far more than the price, it means what you get for the price you pay. Often the less expensive items don’t offer the greatest value, whether due to taste, quality, durability, etc.

But there is another aspect of value that is increasingly driving purchasing decisions, what is known as socially and environmentally conscious values. This type of purchasing looks at the values of the company you are doing business with and how is it supporting societal and environmental causes. Sometimes referred to as cause marketing, research shows that this facet of the purchasing decision has not seen a decline during the recession. The 2010 Cone Cause Evolution Study found that 41% of adults said they purchased a product in the past year because it was associated with a social or environmental cause, a two-fold increase since 1993. A full 83% said they want more of the products, services and businesses they use to benefit causes.

The recession has not deterred American’s social sentiment, or their expectations that companies should benefit society. 81% said companies should financially support causes at the same level or higher during the economic downturn.

Other findings from the survey include:

  • 85% of consumers have a more positive image of a product or company when it supports a cause they care about
  • 80% are likely to switch brands, similar in price and quality, to one that supports a cause
  • 61% say they would be willing to try a new brand or an unfamiliar one based on its cause marketing

Moms lead the way as the most amenable to cause marketing. 92% want to buy a product supporting a cause (vs. 81% average) and they are more likely to switch brands (93% vs. 80% average). Moms purchased more cause-related products and services in the past year than any other demographic (61% vs. 41% average).

Millennials (18-24 years old) come in close behind moms as they also shop with an eye towards the greater good. A company’s support of social or environmental issues is also likely to influence this group’s decisions outside the store, including where to work (87% vs. 69% average) and where to invest (79% vs. 59% average).

The leading causes consumers want companies to support include:

  • Economic development – 77%
  • Health and disease – 77%
  • Hunger – 76%
  • Education – 75%
  • Access to clean water – 74%
  • Disaster relief – 73%
  • Environmental – 73%

Americans say that a company should support an issue that is important in the communities where it does business (91%) as well as one that is aligned with its business practices (91%).

Success in business today is about far more than the goods, services and experiences that are offered. It’s also about who the company is, its values and what it does to make the world a better place. Consumers today are looking for both value and values.

About Randy White

Randy White is CEO and co-founder of the White Hutchinson Leisure & Learning Group. The 30-year-old company, with offices in Kansas City, Missouri , has worked for over 550 clients in 36 countries in North and Latin America, Africa, Asia, Europe and the Middle East. Projects the company has produced have won seventeen 1st place awards. Randy is considered to be one of the world’s foremost authorities on feasibility, brand development, design and production of experience destinations including entertainment, eatertainment, edutainment, agritainment, play and leisure facilities. Randy was featured on the Food Network’s Unwrapped television show as an eatertainment expert, quoted as an entertainment/edutainment center expert in the Wall Street Journal, USA Today, New York Times and Time magazine and received recognition for family-friendly designs by Pizza Today magazine. One of the company’s projects was featured as an example of an edutainment project in the book The Experience Economy. Numerous national newspapers have interviewed him as an expert on shopping center and mall entertainment and retail-tainment. Randy is a graduate of New York University. Prior to repositioning the company in 1989 to work exclusively in the leisure and learning industry, White Hutchinson was active in the retail/commercial real estate industry as a real estate consultancy specializing in workouts/turnarounds of commercial projects. In the late 1960s to early 1980s, Randy managed a diversified real estate development company that developed, owned and managed over 2.0 million square feet of shopping centers and mixed-use projects and 2,000 acres of residential subdivisions. Randy has held the designations of CSM (Certified Shopping Center Manager) and Certified Retail Property Executive (CRX) from the International Council of Shopping Centers (ICSC). He has authored over 100 articles that have been published in leading entertainment/leisure and early childhood education industry magazines and journals and has been a featured speaker at conventions of over 20 different leisure trade groups. Randy is the editor of his company's Leisure eNewsletter, has a blog and posts on Twitter - https://twitter.com/whitehutchinson
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