Ethics + Social Responsibilities + Market Research =TOMS
Do you want to legitimize your love for shoes? Do you want to justify the reason for buying shoes? Do you want to feel good about supporting a social cause when paying $ 40 for a pair of shoes?
If your answer is YES, congratulations! You are in the target market of TOMS.
According to Milton Friedman, the social responsibility of business is to increase its profit; however, too many companies are operating under this business principal. As a young brand, TOMS attracts consumers through an innovative approach that differentiates itself from other established big shoe brands.
The cost of purchasing a pair of TOMS shoes is similar to the price paid for the other brands, but the marginal benefit is much greater. I agree with my classmate Jordan Yin that the number one reason why customers buy TOMS shoes is the reason of “corporate social and environmental stewardship” along with the trendy looks. TOMS certainly did its market research and understands that people are willing to help others when they believe the cost is minimal.
To customers, they received double the amount of happiness from purchases because their shopping pattern is able to support charitable activities through the “One for One” campaign.
In conclusion, TOMS occupied a niche of ethical business practice that created shared values and promoted social interest while pursuing self -interest. This unique business model that benefits all stakeholders is what makes TOMS famous.
Works Cited:
“With Every Product You Purchase, TOMS Will Help a Person in Need. One for One.®.” TOMS : One for One. Web. 11 Nov. 2014. <http://www.toms.ca/>.
Yin, Jordan. “Menu.” Jordan Yin. 5 Oct. 2014. Web. 11 Nov. 2014. <https://blogs.ubc.ca/jyin/2014/10/05/companies-using-focus-strategy/>.