What do clean water, locally sourced labels and certified organic products have in common? Tough one, right? They are all thing consumer are willing to pay more money for in order to feel as if they’ve made a difference in the world.
A new research report from Nielsen found that consumers are attracted to social-responsibility efforts and are willing to pay top dollar to satisfy their “do-gooder” instincts, Bloomberg Businessweek reports.
In an online survey of 30,000 consumers in 60 countries, 55% of respondents said they would pay more for products or services from companies committed to positive social and environmental impact.
And what age group was most likely than all others to feel the need to be a do-gooder? The millennials. See, we’re not all that selfish.
That’s good news for companies that provide a buy one, give one business model. Tom’s latest venture involves consumers purchasing a bag of coffee, and in return a specified amount of clean water is donated to a community in need.
In fact, that issue – access to clean water – topped the list of concerns premium paying customers cared about the most. Other highly-ranked causes included concerns about access to sanitation and environmental sustainability.
As far as retail analysis goes, Nielsen found that sales of products marketed as socially responsible grew more quickly than those of comparable products. This was a lesson producers learned when using “locally sources” or “organically certified” labels on products.
Sales of products with sustainable claims on the packaging grew on average 2% between 2013 and 2014. Products that promoted sustainability actions through marketing programs saw sales increase by %5 during the same time frame.
Still, Nielsen suggests taking the results of the survey with a grain of salt. Not all consumers practice what they preach to opinion polls.
Consumers Believe They’re Eager to Pay More for Do-Gooder Products [Bloomberg Businessweek]