Nearly half of all consumers (40%) are completely abandoning brands that don’t make a positive impact on society, according to new research from Mediacom.
The other key stats found that:
· Almost half (49%) of the respondents said they were willing to pay more for a brand that supports a cause
o Interestingly this number rises to 60% in 18-24 year-olds showing that social consciousness is rising in the younger generation
· 63% believe that brands have a responsibility to give back to society
· 80% state that brands must take steps to minimise environmental impact
The study shows power of brand purpose with almost 1-in-2 consumers willing to pay more for a brand that supports a cause that’s important to them.
The study, launched today at the latest MediaCom Social Change Hub event, also showed that there is a lack of trust placed in brands when it comes to their social responsibility with 65% believing brands overstate their environmental credentials and a further 45% admitting to being very sceptical of any brands that claim to support good causes.
“The role and responsibilities of brands in society is a complex thing. Even those which do have good values or behaviours at their heart face a challenge in convincing the public that they are genuine and can be trusted,” commented Pauline Robson, Managing Partner and Head of Real World Insight, MediaCom’s research arm. “But the fact remains that a brand’s purpose is hugely influential in attracting an audience and, ultimately, a customer base.”
Assessing the potential financial impact of brand behaviours, almost half (49%) of the 2000 respondents stated that they are willing to pay more for a brand that supports a cause which is important to them. However as a nation it seems we are becoming more and more socially-conscious as this figure rises to 60% in 18-24 year-olds. Similarly, while 35% of all respondents have bought a brand product specifically because of its chosen values or beliefs, this rises to 49% in those aged 18 to 24.
“It’s our belief that we, as a society, are heading towards mass adoption of purpose,” added Robson. “Overall, there is an increasing awareness of and focus on what a brand stands for – to the point where many people are willing to buy more and pay more for a company they feel makes a positive impact. What brand can afford to ignore that? Working to make a positive impact on society isn’t a ‘nice to have’, it should be part of a brand’s DNA and a pillar of any communications and interactions with consumers. It can make your brand stand apart from the competition.”