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Consumers are for companies that care

By Liu Jie (China Daily)
Updated: 2008-11-26 09:52

Katherine Tsang, Standard Chartered's China CEO, launched the charity Seeing is Believing in October. Despite the economic downturn, a large majority of consumers think it is important to purchase products they perceive to be socially responsible.[China Daily]

Despite the economic downturn, a large majority of consumers think it is important to purchase products they perceive to be socially responsible, a study in China, India, and Japan showed.

It's the Asian part of a 10-market study, titled "goodpurpose," conducted by public relations firm Edelman.

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The survey revealed that 90 percent of Chinese respondents said they would buy products provided by socially responsible businesses with 'good purposes,' or products devoted to safety, environment, social causes and communities. In India and Japan, 90 percent and 64 percent of those surveyed, respectively, said the same.

The survey, however, did not take the prices of the products into account, according to the public relations firm, though consumers were queried about their willingness to pay more for environmentally friendly products.

The survey sampled 1,000 Chinese, 503 Indians and 502 Japanese during the period from August to October. In India, the survey was conducted via face-to-face interviews, and in China with computer assisted telephone interviews, while in Japan it consisted of online interviews. The study's purpose is to understand consumer attitudes and preferences on the emerging topic of social responsibility.

"What we find particularly interesting in this study is that economic concerns are taking a distant place behind consumers' demands that quality brands be produced by socially conscious companies," commented Alan VanderMolen, Edelman's Asia-Pacific president.

"We believe this is driven by two factors. First, the obvious fallout from product safety issues in the region over the past 18 months; and second, an expanding middle class that now has the power to address social issues at home through purchase decisions."

Seventy-seven percent of consumers polled in China and 84 percent in India said they would remain loyal to brands that are socially responsible during an economic downturn, as well.

Japanese consumers, however, tended to be less committed during difficult times, with 46 percent saying that they would remain loyal to a brand that demonstrated social purpose in an economic downturn.

"Brands that engage in social purpose have the opportunity to solidify relationships with consumers by consistently delivering quality products and demonstrating an ongoing commitment to the social welfare of the communities in which they are operating," VanderMolen said.

Overall, the environment remains a high priority for consumers in China, India and Japan, with 88 percent of Indian consumers and 82 percent of Chinese saying they were prepared to pay more for goods that are environmentally friendly.

Meanwhile, 68 percent of Japanese consumers said the environment is the most important issue.

There were some differences between the consumers surveyed in these three nations, though.

Commitment to helping others-and loyalty to brands and companies that share in this commitment- was a sentiment most visibly expressed by Chinese.

Despite the economic slowdown, China currently leads the way globally in giving more financial or voluntary support to good causes according to this survey, as 85 percent of the respondents in China said they were involved in social causes, the highest number in the world.

While those surveyed in India think it is important to take environmentally friendly actions, a majority indicated that they do not believe the environment is in crisis.

Seventy-nine percent of respondents in India said that there is too much concern given to the environment. And 56 percent of those surveyed said that they did not believe in the existence of global warming.

However, 92 percent said it is their duty to contribute to a better society and environment.

In Japan, the level of active involvement was the lowest of the three countries surveyed, with only 16 percent of Japanese consumers saying they were actively involved in social causes.

"When a brand acts as 'citizen brand,' contributing to community and society beyond their functional benefits, 'doing good' can translate into 'doing well' and the brand can forge a stronger emotional bond with its consumers," VanderMolen added.