CONSUMER INSIGHTS 3-1

Summary
This consumer insight talks about the cause marketing that are practiced by Target store
and Toms Shoes. Toms Shoes has create a new twist to cause marketing which they does
not partner with non-profit or charity but they donates shoes to children who cannot afford
them.
Critical Thinking Question
1. Should marketers, whose primary motivation is to increase the bottom line, deserve
the goodwill and burnished reputation that arise through partnerships with non-profit
organizations?

In my view, marketers do not partner with any non-profit group to enforce marketing of
causes. Cause marketing is a form of marketing where, in partnership with a non-profit
agency, for-profit companies act in such a manner that they all reap benefits. Marketing is
entirely separate from both corporate donation and social marketing because of this.

If the company's core purpose is to raise the bottom line, so they will not reap the goodwill
that comes from marketing the cause. This is how the company that deals for non-profit
organisations is to support the city. For those purchases of shoes made by its customers,
Tom shoes can donate several pairs of shoes to needy children. Instead of donating to the
noble cause of a non-profit company, brand value is then created by the noble cause started
by Tom Shoes on its own.

2. Cause marketing teaches consumers that they can improve the world by their
consumption, to contribute only when they receive something in return and at no
additional cost. Do you agree with that statement?

I agree with this statement, because cause marketing as well as cause related
marketing(CRM) able to make consumers feels that they can give a helping hand to improve
the world when they given something in return without any additional cost. Consumers may
feel that it is the exploitation of charity and they cannot help directly. When a for-profit
organization collaborates with non-profit organization(NGO) , for- profit organzsation try to
fulfil their own goals first so the charity it makes might come a cost. So, consumers may start
to feel that it is better to make charity directly rather than relying on cause related marketing
and buying goods they do not need.
For example, top ten charity campaign, It involves strong partnership with Carlsberg
Malaysia and media partners such as local entertainment industry, artistes, government
stakeholders and so on. The aim of the campaign is to help schools raise funds by selling
tickets to the concerts and accompanying sit-down dinners, with stage performances and
promotional activities that led by Carlsberg Malaysia.

3. Do the concerns that surround cause marketing apply to the new form of cause
marketing such as Toms Shoes?

Cause marketing is marketing that ties a company and its product to an issue which helps
the company improve their sales and corporate image while providing benefits to the cause
like corporate with non-profit or charity. The cause marketing of Toms Shoes is new as they
did not partner with a non-profit or charity. They come up with the ‘one for one’ business
model since 2006. For each pair of shoes consumer buy, they donate a pair of shoes to the
children that need shoes but unaffordable for them. Tom Shoes has successfully improved
their corporate image, leave a good impression to the consumers and increase the sales of
their shoes. Toms Shoes’s action has inspired other company to follow their path and do the
“one for one” concept such as Solo Eyewear who performs an eye surgery for each pair of
sunglasses sold.

CONSUMER INSIGHTS 4-2

Summary
This consumer insight talks about question on was social class related to quality dietary and
how lower income was satisfied by buying high quality nutritious food in a affordable price at
the 99 Cent Store.
Critical Thinking Question
1. Why is it important for marketers to focus less on social class and more on the
underlying mechanisms related to social class that might affect consumers and their
behaviors?
A community of individuals within a society who share the same socio-economic status, the
social class, also known as class. In addition to being significant in social science, the idea
of class as a collection of people sharing common economic conditions was commonly used
in social mobility censuses and research.
In my view, it is necessary for marketers to focus further on the underlying social class-
related mechanisms that could influence consumers and their behaviours. This is because
the clients of each social class have distinct attitudes and patterns. Mechanisms of the social
class have a very profound influence on consumption or buying behaviour because a person
who belongs to the rich class has the potential to spend more money on higher value luxury
goods. On the other hand, consumers in the lower class typically rely on items that are
connected to their daily necessities.
2. What challenges are faced by corporations in reducing the barriers to a healthy diet
faced by those consumers of lower SES?
The first challenge that faced by corporation in order to reduce the barriers for the consumer
of lower SES healthy diet is Lower SES consumers unable to pay for nutritional food that has
high cost. Since they are not affordable to pay the high prices, so the corporations may bear
the risk for not earning any profit as well as loss to provide the nutritional goods to them at
affordable price range.
Moreover, there are limited stores that can let the lower SES consumers to access like to
buy and carry the cheap but nutritional things, so the corporations unable to help or support
the consumers at any place.
Since the lower SES consumer is list in the lower-lower category and many of them are lack
of education, they do not understand what is the nutrition, how to get a proper and healthy
diet.Therefor it is a challenge that faced by the corporation not only provided them
nutritional, healthy products, but also give them awareness to them to improve the lower
SES consumers diet.
3. How might general misperceptions of wealth distribution help to produce well-
meaning but misguided approaches to encouraging healthier diets among lower-SES
consumers?

General misperceptions that says high quality nutritious food are mostly cost more and it is
less affordable for lower income group and it is not very popular among the lower income
group. The lower income group are mostly have higher chance facing with health issues like
obesity, diabetes, cardiovascular disease and dental issues compare to the higher income
group. So, lower-SES consumers have to be aware of the health-related-issue. The
companies can try come up with healthy food alternatives to help lower income group such
as 99 Cents Shop. With 99 Cents Store, lower income group able to access and approach
more on nutritious food with an affordable price. This can encourage the lower-SES
consumers to practice a healthier diet. For example, Love earth organic that provides
organic and healthy food for consumers. According to Tan Hai Hsin, managing director of
Retail Group Malaysia, “The pharmacy and personal care sub-sector was the best
performer. Malaysians are spending more on taking care of themselves. They were
spending more on health supplements, haircare products, skincare products, bodycare
products, cosmetics, perfume and slimming products.”