Canadian Brands Who Do ‘Good’ Likely to Perform ‘Well’

Mental Health, Poverty Top Causes Canadians Want Companies to Support

Cause marketing is a popular strategy among companies, but does it help to do ‘good’? It appears so! The vast majority (84%) of Canadians claim that they would likely switch brands to one affiliated with a good cause if price and quality were similar. This is a key finding from a study conducted by Ipsos Reid and the Cause Marketing Forum on Canadians’ attitudes toward corporate citizenship efforts.

“Brands are increasingly turning to cause marketing as a way to boost loyalty among their customers,” says Barbara Brooks, Vice President with Ipsos Reid in Toronto. “And for good reason, it really does pay off. Our research shows that there’s a high chance that consumers will turn to a competitor if a brand isn’t affiliated with a good cause. However, the discussion goes beyond whether consumers care. It’s about how they engage in social causes and what they want from cause marketing, and this study aimed to answer just that.”

What Canadians Think

When asked where cause marketing fits into the decision making process, just under 40% say that ‘being affiliated with a good cause’ plays an important part. So which companies are top of mind for being affiliated with a good cause? A variety were mentioned, but leading the charge are Tim Hortons and Canadian Tire. It is also interesting to note that ‘none’ was a top mention, indicating there is certainly an opportunity for brands to enter this space.

The study also explored the issue from an industry perspective. The results show that Canadians perceive the financial industry as the most involved and the alcohol and pharmaceutical industries are thought to be the least involved.

How Canadians Engage

When it comes to how they like to engage, giving at the point of purchase remains the most preferred method. 30% mention ‘giving donation at the cash register’ and 31% say ‘cause embedded purchases’ are the top future preferences for a method of engagement.

What Canadians Want

The study also investigated which type of good causes Canadians think companies should support. Five came out on top: mental health (60%), poverty (60%), child-specific (57%), environmental (56%) and physical health (56%). When asked to weigh in on the level the initiative should be, a national (44%) and local (38%) scope was preferred over a global one (18%).

Many Canadians (61%) also have high levels of interest in the actual impact made. When asked how they want to find out about the impact, the top four results were on packaging (43%), at the shelf (38%), on TV (35%) and at the checkout (32%). In terms of how often they want communication, annually (30%) and monthly (29%) tie for the preferred frequency.

“We can break down our findings into three main takeaways,” concludes Brooks. “Canadians are very open to companies and causes, they will consider a wide variety of ways to engage, and they want details of the impact these corporate initiatives make. Savvy marketers understand the importance of delivering on each aspect.”

These are the findings of an Ipsos Reid poll conducted from September 4 – 11, 2014. This online survey of 1,500 Canadian adults (18+) was conducted via Ipsos’ proprietary online panel. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/-2.5 percentage points had all Canadians adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

Tuesday, December 02, 2014

Toronto, ON

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