Charitable Premium: 5%

Back in bidness school, the conventional wisdom was that cause-related marketing (think Newman's Own) would not command a premium price, but ceteris paribus would influence a buyer to pick the do-gooder item.

A couple of b-school profs proved that wrong. They took a look at eBay purchases for similar items, that did and did not benefit charities: USNews.com: Money: The Price of Charity. They found an average of a 5% premium paid for items sold through Giving Works.

Hat tip to my colleague Amy W..



M E-L posted this on February 22, 2007 1:33 PM

This post is filed under: Business & Economy
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