Warmth plus competence equals consumer loyalty
- Wed, May 25 2011
- Filed under: Cause-related marketing
Yesterday I spoke with my colleague Kate Olsen on the evolving world of CSR (presentation posted here). CSR stands for corporate social responsibility, and it’s increasingly the purview of corporate marketing departments rather than corporate philanthropy departments. That’s because doing good is increasingly seen as good business.
I cited a study that shows this in stunning fashion: The Relational Capital Group and a team of researchers at Princeton University recently evaluated the impact of warmth and competence perceptions on purchase intent and loyalty toward eight national brands – McDonalds, Burger King, BP, Shell, Tropicana, Minute Maid, Tylenol and Advil. They found that people evaluate brands in the same way that they instinctively perceive and judge one another – in terms of warmth and competence – and these judgments are highly predictive of brand purchase intent and loyalty.
In addition, two specific elements of brand warmth, “is honest and trustworthy” and “acts in the customer’s best interests,” were far more effective at building brand loyalty than all other competence elements combined. This makes a lot of sense in my mind: Trust in others, after all, is inversely proportional to the level of self-interest we perceive in those other people—or companies.
No doubt about it: When a company seeks to contribute not only to shareholders but also a broader purpose, consumers begin to experience a greater bond with that brand. Nonprofits take heed: You have a lot to offer companies, so make sure they offer much to you.
Comments
Enjoyed the presentation and the insights. Thanks very much for the link!