Indians don't believe in global warming, but are ready to pay more to prevent it: study

Indians do not believe the environment is in crisis, but they think it is important to take environmentally-friendly action and are prepared to pay more for goods that are environmentally-friendly while in Japan, most of the consumers feel the environment is the most important issue, according to a10-market global study called 'goodpurpose' conducted by Edelman, the world's largest independent PR firm.

Unlike their peers in every other country, respondents in India believe there is too much fuss about the environment and they do not believe the world is experiencing global warming but still a large number of Indians feel it is their duty to contribute to a better society and environment.

The study seeks to understand consumer attitudes and preferences on the emerging issue of social purpose. With 90 per cent in India and China and 64 per cent in Japan feel that despite the economic downturn, it is important to purchase products and brands perceived to be socially responsible.

"What we find particularly interesting in this study is that economic concerns are taking a distant place behind consumers' demands that quality brands be produced by socially conscious companies,'' says Alan VanderMolen, President, Edelman's Asia-Pacific.

VanderMolen says, ''The current economic crisis has made little or no difference to the financial or voluntary support given to good causes by Indians. We found that 23 per cent of Indian respondents have actually paid more for a brand because it supports a good cause.

"We believe this is driven by two factors. First, the obvious fallout from product safety issues in the region over the past 18 months; and second, an expanding middle class that now has the power to address social issues at home through purchase decisions.

Acording to VanderMolen In India, 49 per cent of consumers do not know of any socially responsible brands, even though a large majority agreed that it is important for brands and companies to set aside money for a good cause during an economic recession.

"Given the loyalty to socially-conscious brands, companies and brands in India should look at engaging with consumers to effect enduring positive change and build a deeper relationship with them. When brands act as'citizen brands,' contributing to community and society beyond theirfunctional benefits, 'doing good' can translate to 'doing well' and the brand can forge a stronger emotional bond with its consumers.'' 

Even in an economic downturn, the majority of consumers in India and China would remain loyal to brands that have a good purpose. 84 per cent in India and 77 per cent of consumers in China say they would remain loyal to socially-responsible brands in a recession.

However, Japanese consumers tend to be less committed during tough times, with 46 per cent saying they would remain loyal to a brand that demonstrated social purpose in an economic downturn.

''Brands that engage in social purpose have the opportunity to solidify relationships with consumers by consistently delivering quality products and demonstrating an ongoing commitment to the social welfare of the communities in which they are operating. Even in turbulent times like these, corporations receive short and long term benefits by delivering socially purposeful brands and top quality products,'' VanderMolen said.

Reducing poverty is top of mind cause in India

Sixty-two per cent of Indian consumers said that they would buy a brand that supports a good cause, regardless of what the good cause is, though the causes they support the most is reducing poverty followed by equal opportunity to education and protecting the environment.

''In India, 49 per cent of consumers do not know of any socially-responsible brands. But a large majority agreed that it is important for brands and companies to set aside money for a good cause during an economic recession. Given the loyalty to socially conscious brands, companies and brands in India should look at engaging with consumers to effect enduring positive change and build a deeper relationship with them. When brands act as'citizen brands,' contributing to community and society beyond theirfunctional benefits, 'doing good' can translate to 'doing well' and the brand can forge a stronger emotional bond with its consumers,'' VanderMolen added.

StrategyOne conducted 6,048 interviews for the study in 10 countries between August and October 2008. The study was an online survey of consumers, nationally representative of each of the country populations. For India and China survey was conducted as face to face and computer-assisted telephone interviewing respectively. Sample sizes per country were: US = 1006, China = 1000, UK = 522, Germany = 506, Brazil =500, Italy = 500, Japan = 502, India = 503, Canada = 502. France=507. The margin of error is +/- 5% for the Chinese, Indian and Japanese samples.