Quanta Corporate Citizenship Stereotypes matter 09/02/2010
A recent study conducted by Jennifer Aaker, Kathleen Vohsand and Cassie Mogilner, professors at Stanford, Minnesota and Wharton universities, respectively, has shown that “consumers perceive non-profits as being warmer than for-profits, but as less competent. Further, consumers are less willing to buy a product made by a non-profit than a for- profit because of their perceptions that the firm lacks competence. Consequently, when perceived competence of a non-profit is boosted through subtle cues that denote credibility, discrepancies in willingness to buy disappear. In fact, when consumers perceive high levels of competence and warmth, they feel admiration for the firm, which translates to consumers’ increased desire to buy.”
Interestingly, what their study has shown is that, without a nudge, consumers tend to anchor warmth and competency as opposing ends of the same scale.
Interestingly, what their study has shown is that, without a nudge, consumers tend to anchor warmth and competency as opposing ends of the same scale.
But as soon as a quality/competency reference is introduced into the equation – i.e., someone else, a publication etc –, reaffirming the quality of the product supplied by the not-for-profit organization, a second dimension is introduced, and warmth and competencies are no longer mutually exclusive, but independent variables.
There are several consequences from their studies: first, if competence is a bigger driver to buy than warmth, not-for-profit organizations need to constantly frame themselves as warm-yet-competent via references (word-of-mouth, trusted publications etc). This also validates the importance that many charities put in getting the support from public figures. It is not only the media attention that they attract, but also the implied endorsement they provide to the charities as efficient organisations.
The second potential consequence of their findings is that charities services and products need to be priced and branded in a way that implies their quality and not their source. Charity shops are perceived as, well, charity shops. On the other hand, donors do not perceive their payments to attend orchestras and exhibitions as donations, although both orchestras and museums are, generally, as charitable as those organisations running the charity shops.
The third potential consequence for their study is that if charities can be perceived as efficient organisations by association, companies might also be perceived as warmer organisations by association. And here, endorsement from charities might play a vital role.
The fourth potential consequence of their findings is the importance of “stamps” such as “fair trade” and “organic association” on products provided by both charities and for-profits. As these stamps become trusted and recognised more and more widely, they will assume an even greater role in directing consumer willingness to buy.
-- Gus
The second potential consequence of their findings is that charities services and products need to be priced and branded in a way that implies their quality and not their source. Charity shops are perceived as, well, charity shops. On the other hand, donors do not perceive their payments to attend orchestras and exhibitions as donations, although both orchestras and museums are, generally, as charitable as those organisations running the charity shops.
The third potential consequence for their study is that if charities can be perceived as efficient organisations by association, companies might also be perceived as warmer organisations by association. And here, endorsement from charities might play a vital role.
The fourth potential consequence of their findings is the importance of “stamps” such as “fair trade” and “organic association” on products provided by both charities and for-profits. As these stamps become trusted and recognised more and more widely, they will assume an even greater role in directing consumer willingness to buy.
-- Gus
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