Americans demanding socially responsible products will pay more for them
Many Americans say they want to support socially responsible companies. And even when these companies’ products cost more, shoppers are putting their money where their mouth is, according to a new global study from Nielsen.
The New York-based market researcher noted that 42 percent of Americans surveyed said they strongly agree or somewhat agree with the statement, “I am willing to pay extra for products and services that come from companies who are committed to positive social and environmental impact.” At the same time, 40 percent of Americans surveyed said they purchased a product or service in the past six months because they knew that the company is committed to positive social and environmental impact.
And specific causes matter to many Americans. Nielsen noted that 49 percent of U.S. respondents are “extremely concerned” about buying from companies that help provide access to clean water, the study found. Additionally, 46 percent are “extremely concerned” about buying from companies that try to combat diseases (cancers, diabetes, lung diseases), while 45 percent feel the same way about companies that work to eradicate poverty and hunger, respectively.
How does this translate at checkout? According to Nielsen, consumers pay attention to labels; companies that included sustainability claims on packaging experienced a 2 percent average sales increase versus the 1 percent rise expected by companies without packaging or marketing claims. And companies that promote sustainability through marketing experienced a 5 percent average sales jump.
“It’s no longer a question if consumers care about social impact; consumers do care and show they do through their actions,” said Amy Fenton, global leader of public development and sustainability, Nielsen. “Now the focus is on determining how your brand can effectively create shared value by marrying the appropriate social cause and consumer insights.”
For more information, visit www.nielsen.com.