Why do we tend to favor brands that show care for societal issues?
Noble Edge Effect
, explained.What is the Noble Edge Effect?
When companies demonstrate social responsibility that is perceived as genuine by consumers, they are rewarded with increased respect, which in turn leads to greater profits. That’s the noble edge effect.
Where this bias occurs
Whenever we feel more inclined to give a store our business after hearing that it donates to charity or that its products are ethically sourced, that’s the noble edge effect talking. What’s particularly interesting about this effect is that its influence over us depends on the source from which we hear about the company’s social responsibility. For example, if we see an advertisement on television that is promoting a major sale at a certain store and also happens to mention the fact that they donate a portion of their profits to charity, we tend to view it as a shallow marketing ploy. However, if we see an advertisement for a certain charity in which the store is thanked for its kind donations, we may interpret the store’s donation as a genuine act of generosity. In the latter situation, we may be influenced to shop at the store.
