Maslow and corporate responsibility
I’ve always been interested in leveraging Maslow’s hierarchy of needs to inform development of customer-based brand strategies. A couple years ago I wrote several posts about each of the stages (summary here).
Recently I’ve been thinking about how it applies to CSR and sustainability efforts, especially in light of the economic downturn. As the economy grew, more consumers and businesses could be found at the top of the hierarchy… going beyond the “me” focus and expanding into greater awareness of social and environmental issues. I would theorize that in an economic downturn that many consumers and businesses that aren’t firmly anchored in the top part of the pyramid would drop back down to the base, focusing primarily on security and safety.
But here’s what’s happening: the recession is slowing CSR efforts among businesses, yet consumers are continuing to purchase green products at the same rate as last year. So while businesses are dropping to the bottom of the pyramid, values-driven consumers remain at the top.
Bottom line? Smart businesses will continue to invest at the top of the pyramid (TOP), capturing preference among TOP consumers and building equity for future growth in this segment when the economy improves.
Wondering if business are dropping tot the bottom of the Maslow pyrimad whilst value driven customers remain at Maslow’s top « Fredzimny’s CCCCC Blog
May 3rd, 2009 at 10:44 am
[...] http://www.fruitfulstrategy.com/blog/2009/04/maslow-and-corporate-responsibility on 30 April 2009 | by Jennifer [...]
Denise Lee Yohn
May 6th, 2009 at 5:20 pm
interesting, jen — my understanding of maslow’s hierarchy is that people must have the needs which are represented at the bottom of the pyramid met first, before higher order needs can be filled — if that’s the case, then what are the implications for marketers who are trying to speak to csr values at the top of the pyramid? do they need to prove themselves at the bottom before they are considered credible at the top? or can they just focus on engaging people at the top? i’d love to learn from your response if you have time — thanks in advance!
Jennifer Rice
May 7th, 2009 at 12:34 pm
Hi Denise, you’re absolutely right.
- consumers at the top of the pyramid want to do business with companies who are also at the top,
- marketers can only speak credibly to those consumers if their company is actually living & acting out of those values at the top.
This is all about shared value alignment between company & customer. Companies can’t (and don’t want to) appeal to all the levels of the pyramid, but great brands will pick one or maybe two core needs to anchor their position, like Control or Aesthetics. As consumers move up the pyramid, there becomes an opportunity for businesses to serve those needs at the top. That’s a white space that requires existing companies to *evolve* to the higher level, not just talk to it. Otherwise they’ll be beaten by new companies created by and for individuals that embody that need state.
Hope that makes sense! If not, or if you want to build on this, let me know.