This video explains why marketers need to focus on the triple bottom line of ROI on financial, social, and individual dimensions to succeed today.
- Ethical business is good business. A global survey by Nielsen reported that 50% of consumers are willing to pay more for goods and services from companies that have implemented programs to give back to society. Consumers think better of the products a firm sells when the organization behaves ethically. Unfortunately many companies don't reward their employees when they boost customer satisfaction by treating people right, even if this pays off in the long run.
If you're not happy with a product or service, what can you do about it? It's tempting to take a business to court. A judge in Washington DC made headlines when he filed a $54 million lawsuit against his neighborhood dry cleaner because it lost a pair of his pinstriped suit pants. That's probably a bit extreme. But consumers can do a lot to complain, especially on social media where they can potentially damage a company's reputation pretty quickly.
Ironically, consumers who are satisfied with a store or brand in general are more likely to complain if they experience something bad. They take the time to complain because they feel connected to the store. And if a company resolves the problem customers feel even better about it than if they hadn't complained in the first place. The moral. Although nobody likes criticism, organizations should encourage people to complain so that they can try to resolve the problem before it gets out of hand.
One way to enhance satisfaction is to integrate corporate social responsibility, or CSR, into your business model. CSR describes processes that encourage the organization to make a positive impact on the various stakeholders in its community, including consumers, employees, and the environment. For example, the shoe company, Tom's, is well known for its promise to give a pair of shoes to someone in need for every pair it sells.
CSR is more than a nice idea. It's also good business. Consumer research convincingly shows that all things equal, people are likely to choose a brand that gives back to the community. Cause marketing is a popular strategy that aligns a company or brand with a cause to generate business and societal benefits. One survey reported that three out of five consumers bought a product or service in the previous year because of its association with a cause.
A sustainable business model is not just about do-gooder efforts that reduce a company's carbon footprint or the amount of plastic that goes into landfills. A triple bottom line orientation refers to business strategies that strive to maximize return in three ways. The financial bottom line, provide profits to stakeholders. The social bottom line, return benefits to the communities where the organization operates.
And the environmental bottom line, minimize damage to the environment or even improve natural conditions. For example, the Seventh Generation Company builds its entire business model around a triple bottom line orientation. The company's mission statement is to inspire a consumer revolution that nurtures the health of the next seven generations. Along the way, the manage to sell a lot of cleaning products that are good for the environment and for their employees.
Doing well while doing good. Look carefully at ways to give back to your community while still making a profit, and remember, ethical business is good business.
First, learn the importance of consumer behavior in helping us understand when, why, and how purchasing decisions are made. Michael shares how factors such as color, shape, and sound influence our perception of brands and products. He discusses gender identity and products geared towards different genders, as well as how consumer lifestyles, values, and attitudes affect product preferences. Michael also goes into external influences on consumer behavior, covering how groups make decisions and how ideas spread. Finally, Michael explores the role emotion plays in purchase decisions, and how you can structure messages to maximize persuasion.
- Sensory marketing as a strategic tool
- How gender identity can affect product choice
- Personality and brand image
- Decision-making in groups
- Retailing as theater
- How ideas spread through the market
- Persuasive communications
- Influencing consumer behavior