Big shift in consumer choices

In a survey published by Edelman last week, substantial changes are occurring in the way that consumers are reporting the factors that determine their choices on a day to day basis. Assuming that the statements made to the researchers are borne out by behaviour, this shift may mark a turning point for brands that have have been slow to get on board.

“Despite the recession, consumers are still spending with companies and brands which have a social purpose”

Bearing in mind that the responses were gathered during a dramatic global recession, this is a big shift towards values-based choices that all product and service providers could do well to take into account in their business planning and strategy.

“In new findings released from the recently published Edelman goodpurpose™ Consumer Study, a survey of 6,000 people in 10 countries, 57 percent globally say a company or brand has earned their business because it has been doing its part to support good causes and two out of three (67 percent) globally also say they would switch brands if another brand of similar quality supported a good cause

“The study also found that 83 percent of people are willing to change consumption habits if it can help make the world a better place to live, indicating a startling consumer shift and trend away from traditional status markers like big houses and luxury cars and toward identification with social purpose brands. The findings overall show that today more than twice as many people (67 percent) would rather drive a hybrid car than a luxury car (33 percent), with Japan (89 percent) and France (84 percent) preferring hybrid cars most.

“People are demanding social purpose, and brands are recognizing it as an area where they can differentiate themselves and in many parts of the world, not only meet governmental compliance requirements, but also build brand equity,” said Mitch Markson. “This year’s study shows that if companies respond intelligently to the sea change in consumer attitudes, brand loyalty among consumers – even during seriously challenging economic times – will actually grow. Even better, consumers will want to share their support for these brands with others.”

“Europeans are least likely to think that product brands support good causes nowadays, they indicate that supporting good causes in their everyday lives is important. More than three out of four people in the UK, France, Germany and Italy were willing to change their own consumption habits if it can help make tomorrow’s world a better place to live. Though the economic downturn has made Americans most likely to give less money to good causes, they too overwhelmingly indicate they are willing to change consumption habits to make the world a better place to live (85 percent) and are looking to companies and brands to make it easier for them to make a difference (65 percent).

While the study reveals that social purpose is becoming increasingly crucial to a brand’s success, a brand purpose must be authentic and true to the core values of the brand itself, and brands must look beyond traditional corporate social responsibility programs in which they simply donate money to a good cause. As the study notes, 66 percent of people believe that it’s no longer enough for corporations to merely give money away, but that they must integrate good causes into their day-to-day business.

“Companies that become catalysts for social change and respond to rising consumer expectations that they and their brands help make the world a better place will not only survive, but also thrive, in ways their competitors will not,” said Markson. “Mutual social responsibility provides that opportunity, as people today are more passionately involved and supportive than ever, yet more demanding and unforgiving, as well.”

Continue the social purpose conversation at www.goodpurposecommunity.com , on Facebook at www.facebook.com/goodpurpose  and on Twitter at www.twitter.com/LIVEgoodpurpose  

KEY 2009 GLOBAL DATA HIGHLIGHTS

BIGGEST GLOBAL CHANGES SINCE 2008

• 71% think brands and companies spend too much on advertising and marketing and should put more into good causes – up almost 10 percentage points

• 64% would recommend a brand that supports a good cause – up from 52% last year globally

• 59% would help a brand promote its products if there was a good cause behind it – up from 53% last year

• 44% are aware of brands that actively support good causes through their products and services – up from 33%

• 16% find contentment from shopping – down from 25%

2009 HIGHLIGHTS

• 83% willing to change consumption habits if it can help make the world a better place to live

• 70% prefer an eco-friendly house to a big house (30%)

• 68% feel that it is becoming more unacceptable not to make efforts to show concern for the environment and live a healthy lifestyle

• 67% would switch brands if another brand of similar quality supported a good cause

• 67% prefer a hybrid car to a luxury car (33%)

• 64% would recommend a brand that supports a good cause

• 64% expect brands today to support a good cause

• 63% are looking toward brands and companies to make it easier for them to make a difference

• 61% have bought a brand that supports a good cause even if it wasn’t the cheapest brand

• 59% have a better opinion of corporations that integrate good causes into their business no matter why they do so (61% in the U.S., 51% in Germany, 58% in Italy, 64% in India, 65% in China and 52% in Japan)

• 57% say a company or brand has earned their business because it has done its part to support good causes