The Power of a Purchase: Identifying Brands with Heart
In today’s world, American consumers have an overwhelming number of brands to choose from when purchasing most products. Many different factors may influence their decisions including price, availability, and convenience. However, one factor that has become very popular is what a brand does to create a change bigger than themselves.
Consumers prioritizing brands with heart
When consumers decide what brands to purchase from, one of the most important aspects to consider is a brand’s mission and culture. According to a study done by Cone/ Porter Novelli, 66% of consumers say they would switch from a product they regularly purchase to a new product from a purpose-driven company. The percentage rises to 91% when talking to millennials. A separate study done by the Wall Street Journal says that 60% of Americans would go as far as boycotting a company based on its stance on social issues. Knowing these high percentages, many brands share their stance on social issues, donate to the causes they believe in, and use more environmentally friendly products and packaging.
Initiatives on the rise
There are multiple ways brands can support a cause and give back. One of the most common initiatives brands have been participating in is donating a percentage of their profits to the cause they stand for. Research from Mintel shows that a company’s charitable giving affects 73% of Americans’ purchase decisions. Another giveback initiative common among brands is partnering with a non-profit organization. In this situation, the two work together to raise funds for the cause. Often times this can be temporary, but it may also be a permanent partnership. For example, in recent years there has been a growing number of brands participating in matching initiatives meaning that for every purchase or donation, the brand will donate to someone or some organization in need. According to Non-Profit Source, brands who mention matching initiatives results in a 71% positive response rate from consumers.
American brands are constantly evolving to keep up with current trends in order to please consumers. One of the biggest trends that consumers look for when buying a product is how well a company practices sustainability. According to a study by Accenture Strategy, 62% of consumers want companies to practice sustainability, transparency, and fair employment practices. A study done by Toluna found that consumers are even willing to pay 5% more for products that are environmental friendly. In addition to sustainability, consumers also tend to look at what social causes companies support. The same report from Accenture Strategy found that 50% of consumers said they are attracted to brands that stand for societal and cultural causes they believe in. It is important that the causes a brand stands for truly align with what they represent to maintain their authenticity and credibility. As people continue to learn more about environmental impact and speak out on social causes, we can expect to see a growing number of brands following these trends.