Indian consumers pay extra for ‘responsible’ brands?

In an interesting research, it is found that
that 55 per cent of Asia Pacific (APAC) consumers will not mind paying extra
for products and services of companies that have credible corporate social
responsibility (CSR) programmes and engage in activities that give back to
society. In India, over half of the consumers surveyed are willing to pay more
for products of business houses that adopt social causes.

The recently concluded Nielsen’s Global
Corporate Citizenship Survey shows that consumers prefer those
companies that engage in social programmes.Last year, CauseBecause had conducted a similar survey in Delhi and had
found consumers
in Delhi are also getting ‘social responsibility’ conscious.

‘Increasingly, consumers are expecting
companies to take responsibility for their immediate environment and society
around them,’ said Piyush Mathur, president of Nielsen (India region). ‘It is
important for marketers to understand the profile and expectations of these
consumers to forge a deeper bond that goes beyond their immediate products and
services.’

The study also shows that over two in five
socially-conscious online consumers in India are willing to accept lower wages
if they work for a company that has programmes that aim to positively impact
society.

Over eight in
ten respondents under the age of 20 indicated they were willing to accept a
lower compensation if the company supported society-enhancing causes.

‘According to consumers surveyed, Indian
companies should take up causes that impact the economy and have a long-term
sustainable outlook,’ said Mathur.

‘These should also have an impact on the
economy with a focus on increasing the talent pool through the right training.
So, while other causes are also important, consumers feel that companies have
the expertise and knowledge to lend into streams that they can optimally
benefit.’

The Nielsen survey also shows that the
highest concentration of socially-conscious consumers is in the Philippines,
where 68 per cent of respondents are willing to pay extra for products. The
lowest concentration is in the Netherlands, where the pertinent percentage is
21.

The
Nielsen Global Survey of Corporate Citizenship was conducted between August 31
and September 16 last year, polling more than 28,000 online consumers in 56
countries throughout Asia Pacific, Europe, Latin America, the Middle East,
Africa and North America.