Study shows that cause marketing increases sales

By Simon Pitman

- Last updated on GMT

Related tags Breast cancer Cancer

A new study shows that cause marketing, such as Estee Lauder’s breast cancer campaign, means that associating products and brands with good causes can help to boost sales.

The 2008 Cone Cause Evolution Study found that 79 percent of those surveyed said that they would change to a brand that was associated with a good cause, such as a charity or a public awareness campaign.

Estee Lauder has been associated with the Breast Cancer Awareness Campaign for 15 years now, a campaign that has grown to the point where it is estimated to touch millions of people in over 50 countries every year.

Cause campaigns boost sales

The Cone/Duke University survey points to the fact that campaigns like this can help to generate millions of dollars in extra revenue because it helps to foster a positive image of the company in the minds of the consumer.

But the survey also reveals that the formula for cause marketing is by no means straight forward.

Illustrating this is the fact that a separate behavioral study conducted by the Duke University this year showed that 84 percent of respondents would like to be able to choose which cause that any proceeds might be donated to, while 83 percent said the chosen cause should be personally relevant to them.

Profits should go to good causes

Likewise, more than half of respondents also said they believed that companies should continue to give to non-profit organizations.

Some 182 participants took part in the study, and were given money to purchase from a choice of 152 SKUs in four categories.

The exercise showed that there was a 74 percent increase in actual purchases of a shampoo brand when it was associated with a good cause

One size does not fit all

However, it is also interesting to note how different types of products illicit different reactions in consumers.

This is evinced by the fact that the survey revealed that when a toothpaste was associated with a cause the increase in sales was more modest, at 26 percent.

The behavioral study also showed that priority issues in order of preference include education, economic development, health and disease, access to clean water, environment, disaster relief and address world hunger and famine.

Related topics Market Trends

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