Consumer Consciousness: The Third Element Redefining the Value Equation

In our last post, we outlined PERSONAL and PLANET as two recent dimensions of the value equation emerging in light of the new climate of consumer consciousness.

There's a third that most readers will have seen almost at every turn: PEOPLE.

In the era of higher standards, of greater scrutiny about what is being bought and its effects, people also want an opportunity to participate and contribute towards a greater social good. As a result, they are also expecting more of the companies they buy from, for them to do their part to improve the world we live in.

Corporate social responsibility (CSR) has been around for decades, but it's typically been more of a PR driven initiative to generate goodwill in order to shape perceptions than a deep-rooted embrace. Tom's Shoes is a great example of a commitment on a different scale. It donates a pair of new shoes to a needy child for every pair sold. The social good is inextricably part of its business model.










An example of a more traditional approach is Tide Detergent. The "Loads of Hope" campaign is P&G's latest CSR attempt to link 'doing laundry' with 'doing good'. (Don't get us wrong, something is better than nothing: but not only is the link conceptually a weak one - in our culture 'hope' is not something we think of in terms of 'loads' - but the scale and sustainability of the impact is modest).










Overall, this strategy is an ever popular one with marketers. The basic approach is to link consumption directly with a virtuous outcome.

Starbucks says that by buying its coffee YOU are the force behind change on a massive scale...



















Volvic touts its 'Drink 1 Give 10' benefit if you buy its water (click on this recent airport commercial).



The intent of course: shape brand choice in a way that requires no additional effort by the consumer. "Keep doing what you're already doing". The act of buying is an act of giving.

Not a bad strategy (few things are inherently flawed except teapots made of chocolate). Though as Brandchannel points out: Cause Marketing Grows: but is the backlash ahead?

Consumer Consciousness: Two Forces Redefining the Value Equation.

The bubble of indifference has burst.

Until recently, it used to be very different. Consumers cared about functional performance and price...and cared about very little else. Like how products were really made. The ingredients they really contained. What they really did to the body. So the reasoning went, if it was available, it had to be safe. Governments regulate, after all.

Nothing like crisis to wake people up. And shaken up they have been. Toxicity in toy paint, lethal ingredients in pet food, health threats in the food chain (fruits and vegetables), ever rising cases of cancer, and obesity on a mass scale among not just adults but children. This is the PERSONAL dimension that evolved the value equation of what people buy. No longer is buying convenience foods so easily divorced from the health consequences of doing to. Marketers are responding with convenient foods that force less of that trade-off. It is a good development.

The consumer value equation is also being redefined by another key dimension: PLANET. The environmental crisis has precipitated a shift: people en masse are making a direct personal link between what they consumed and the impact they were having on the planet.

The result: a time of greater scrutiny but if anything higher standards. People care more about what's in products and how they're made. They have to know, it's almost not a choice. The cost of indifference - personally and for the planet - is too high. Companies are responding by making better products.

















A new kind of involvement and a new strategy has emerged among consumers: asking question and demanding answers. The smart companies are recognizing this is a new age of transparency. Avoidance is an option but not a good one. Being part of the conversation is a way companies can shape the dialogue about them, thought the days of control are over. Trust has been broken and companies now have to earn it back.

Couched as chocolate

What a visual treat this outdoor board delivers.

Who would have thought that associations from these two categories could be combined so effectively? There is something succulent and tantalizing about the way the couch is half wrapped, suggesting a thrill in the reveal.

Removing packaging is a sensual part of consuming the product. Several companies understand this. Apple in its superbly crafted boxes that laptops are packed in. GM puts a ribbon over the handle of its used cars so the buyer must break the seal before getting in.

Perhaps this furniture brand could benefit from such thinking and enhance the consumption experience of its product before it's even sat upon.