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3 ways your opinion shapes big business
You may have heard about how much survey responses and popular opinion can change the way a business operates. The feelings of the consumer could influence how a product is made or even change the ending to a new movie.
At a time when many customers claim their voices aren't being heard by big businesses, you may be surprised about how much change can come just by taking surveys for money. Here are several ways your opinions are changing companies.
1. Raising the minimum wage
There are debates going on all around the country about whether or not to raise the minimum wage. Not many companies know how the shift in pay would change business operations, but that's not the case for Dan Price, the CEO of Gravity Payments, who raised his company minimum wage to $70,000 in April.
Reportedly, Price chose to make the payment change after reading a Princeton study based on the effects of income on happiness. The study involved hundreds of survey responses that ultimately suggested that worker happiness improves consistently until receiving a salary of $75,000. Afterward, increases in happiness are negligible.
Price thought that was reason enough to raise wages across the board, and so far it's meant great things for his company. Price told CNN that Gravity Payments collected dozens of new clients directly after he revealed the news, providing the best week of new business in the organization's history.
2. Improving business ethics
How much do big businesses really care about ethics? What's to keep a corporation from outsourcing jobs to child factory workers overseas or polluting the environment? According to the Wall Street Journal, your opinion of the company and its ethics has a direct effect on how much you'll pay for a product, and that inevitably effects its corporate decisions.
The news source conducted an experiment involving customers paying for a pound of coffee. Consumers were asked how much they were willing to pay for the product but asked to read about how it was produced first. One product was produced ethically, the other - not so much. Compared to a control product with neutral ethical standards, customers were willing to pay more for the ethical product and much less for the not so ethical pound of coffee. Here's how it broke down:
- Ethically produced coffee - $9.71
- Unethically produced coffee - $5.89
- Control - $8.31
That's just one small example provided by a news publisher, but it's hard to ignore how consumers views of ethical behavior have influenced companies. There are businesses across the globe that have pledged to abide by more socially acceptable standards, and it's likely that there were some business motivations involved in those decisions.
3. Changing business strategies
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Finally, it's a given that your surveyed responses change big business strategies. Companies use your thoughts and feelings to influence their decisions in creating new products, change existing ones or stop making some completely. Your opinion shapes what you see at the store and for sale online, and that's a fact.