Noble Edge Effect
Products of socially responsible companies are seen as superior
- Use to boost the perceived quality of your product
- Use to boost the perceived performance of your product
- Use to stand out in a crowded or ambiguous market place
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- Genuine goodwill leads to superior products. Authentic social goodwill of a company can change consumer’s perception of the quality and performance of its products.
- Align with your target audience. The Noble Edge Effect is stronger for consumers sharing similar moral values why aligning with the societal aspirations of your target audience is crucial.
- Strong effect in unchartered or ambiguous marketplaces. Social responsible behavior is more likely to influence those who are less familiar with the specific market or line of products. In markets where people don’t much about a product or where the offering is ambiguous (banking, insurance, etc.), the Noble Edge Effect can be a key differentiator.
As companies show genuine care and social goodwill, it spills over to improved consumer perception of the company’s products. When consumers are unfamiliar in a market, companies with a noble edge attract even more consumer choice. Products are perceived as better and of higher quality only when the social goodwill of their companies are motivated by genuine kindness over self-interest
Although not using the term, Chernev & Blair provided a detailed description of how the Halo Effect can give rise to the Noble Edge Effect in their 2015 paper on chow ompanies are benefitting positively from doing social good.
1 Chernev, Alexander and Sean Blair (2015). Doing Well by Doing Good: The Benevolent Halo of Social Goodwill. Journal of Consumer Research
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