TEMPE, Ariz. (June 24, 2020) – A new study from the market research team at Zion & Zion, a top-ranked, full-service, national marketing agency, examines the efficacy of the “buy one, give one” business model popularized by companies such as TOMS and Warby Parker. How heavily are consumers influenced by the promise that for every purchase, the brand will donate to someone in need?
The Zion & Zion study reveals important findings for businesses and product marketers considering the “buy one, give one” model:
- In general, the marketing promise of “buy one, give one” appears to be an effective approach to encourage initial trial of a new product. When consumers saw an advertisement for a new product, 37% said they would be likely to try the product. This rose to 60% when the marketing message included donating to people in need.
- All generations have the highest likelihood of trying a new product if the company donates another to a person in need, with Generation X (67%) leading the way, followed by Millennials (61%), Baby Boomers (56%) and Generation Z (55%).
- Surprisingly, when presented with information about how “buy one, give one” marketing programs may ultimately be detrimental to struggling populations in foreign countries, in some scenarios, only a small fraction of consumers were deterred.
The full research report is available here: The Effectiveness of “Buy One, Give One” in Promoting Product Trial
This Zion & Zion research study was based on a nationwide survey of 4,887 adults. Authors of the study are Aric Zion, MS and Thomas Hollmann, MBA, PhD.