Sarah Ford | April 2, 2015

How Giving Back Affects Pricing Perception

By Melissa Hollis, CafeGive Social

It’s not always easy to figure out what consumers want. Case in point: the same markets that recently pushed Harry Potter-branded chocolate to go fair trade also pressured natural and organic retailers such as Whole Foods to lower their prices. Pulled between their sometimes-conflicting responsibilities to a sustainable earth and sustainable business, brands face a critical question:

How much more are consumers willing to pay for a product that supports a good cause, as opposed to one that doesn’t?

This inquiry is at the heart of a new research study by our friends at Software Advice, a company that connects non-profit software buyers with vendors. Entitled “Key Priorities for Ethical Supply Chains,” the report assesses the value of cause-centric decision-making from the perspectives of both companies and consumers. It also uncovers the most convincing ethical initiatives as well as a breakdown of top performing acts of community involvement.

Some of their significant findings:

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