One of our favorite trend reports of the year has been released. Mary Meeker's report covers the internet in its entirety - extending beyond digital commerce. But, as it is where our stores reside, we anticipate and devour the broader market information that Ms Meeker provides. A few takeaways:Read More
Moral licensing is a term commonly used in social psychology and marketing, referring to the unconscious way in which we are less conscious of immoral behavior, after acting in a moral way. For example in one study where customers viewed a 40-second video praising their actions, 33.3 percent of those customers bought eco-friendly batteries. Those who saw a similar video, this time praising the company's efforts, purchased the eco-friendly batteries 69.6 percent of the time.
Moral licensing has growing significance in the retail industry today, as more brands focus on sustainable and corporate social responsibility marketing. Maryam Kouchaki and Ata Jami reported for Harvard Business Review that corporate philanthropy reached $18.5 billion in 2015, and cause-related marketing increased to about $2 billion in 2016. In the short-term, if brands and retailers want to effect altruistic consumer behavior, we will use messaging that asks for a commitment to a cause, rather than praising customers for their dedication.
Want to learn more about moral licensing?
Uber's head of Economic Research and former economist at Yale, Keith Chen sat with NPR's Shankar Vedantam to talk about dynamic pricing and behavioral economics. This is a must listen for every merchant, buyer and product / brand manager who touches or thinks about pricing.
Patagonia's marketing strategy from The Naked Brand
Patagonia is a US based apparel and equipment retailer, which has a reputation for being environmentally minded - and they are publicly addressing the significant negative impact manufacturing has on the environment. The company has introduced The Footprint Chronicles, which speaks transparently about their supply chain, and the actual effects of making their product. Browse through their site, and read Jeff Rosenblum's article for Fast Company here: