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Social Responsibility Is Nice But Not Worth Paying for in Today's Economy, According to Wealthy Consumers Surveyed by Luxury Institute(June 26, 2012)
NEW YORK, NY -- (Marketwire) -- 06/26/12 -- In a new survey by the independent and objective New York-based Luxury Institute, "Corporate Social Responsibility: The Wealthy Consumer's Viewpoint," U.S. consumers earning at least $150,000 per year define socially responsible corporate behavior, rate companies and divulge importance of socially responsible practices in shaping purchase decisions. Responses were compared to those from the same survey in 2007.
Most (82%) wealthy Americans define social responsibility by a company behaving ethically with employees, customers and suppliers. Environmental behavior and philanthropic actions are both named by respondents as an essential component of CSR (58%).
Almost half (45%) of wealthy consumers say they seek out brands with high ethical standards, but only 39% of these shoppers would be willing to pay a premium. That's down from 56% who would pay a premium in 2007. Apple, BMW, Coach, Lexus, Mercedes-Benz, Nordstrom, Starbucks and Whole Foods are frequently cited as highly ethical standouts.
Twenty-seven percent of wealthy consumers learn about companies' socially responsible behavior via Facebook or Twitter. That's up from 8% who received their information from social media in 2007. Reading news articles is the most popular (52%) way to learn of CSR efforts, down from 64% five years ago.
"Even wealthy consumers have de-emphasized social responsibility as this economy focuses everyone on price/value and away from social issues," says Luxury Institute CEO Milton Pedraza. "Nevertheless, we see that luxury and premium brands that are socially responsible do better even during recessions because doing well by doing good is a universal and timeless concept."
Respondents reported average income of $307,000 and average net worth of $3.1 million.
About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Luxury CRM Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.
For Further Information, Please Contact:
The Luxury Institute, LLC
Vice President Business Development
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