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Ben and Jerrys is a luxury product. Being politically conscious is part of their brand and a reason they are able to charge high margins. They believe that diff
by colinmhayes 6y ago
Ben and Jerrys is a luxury product. Being politically conscious is part of their brand and a reason they are able to charge high margins. They believe that differentiating themselves leads to long term profits. Critically, it's not just short term profits that are being maximizing. Creating a strong brand is the only way to ensure your product won't be undercut which is why firms are willing to engage in activities which build goodwill among their customers even if there are no immediately obvious profit motives. Political donations are part of Ben and Jerrys marketing budget.
- nicoburns 6y agoWhat evidence do you have that such political activity is not intrinsically motivated?
- colinmhayes 6y agoThe fact that every decision public companies make is done to maximize profits. If Ben and Jerrys didn't cultivate this image they'd just be another company selling overpriced ice cream. Instead I think it's fair to say they're an institution. That's not to say the people running B+J don't believe in the cause they're donating to, I'm sure they do, they just also believe it's good for business.