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Is "brand virtue" important to consumers?
That is, do brands and companies that actively work to make the world a better
place enjoy a competitive advantage in marketing to today's consumer? Recent
research conducted by Context Marketing illustrates how virtue does indeed sell
products, mainly by creating a deeper level of customer engagement.
Context Marketing conducted a series of three consumer surveys over the past
nine months, all of which looked at the concept of brand social responsibility
as a purchase factor. One did so broadly, while two focused on supermarket food
purchases. The results illustrate how consumers are increasingly attentive to
socially responsible brand behaviour even during the economic downturn. Copies
of the three reports are available at the Context Marketing
website. Following are highlights from the
surveys.
Consumers have a concept of "modern
virtue" in mind when they scrutinize brands and companies. Most consumers
report bringing enhanced expectations to brands as they look for allies in
making the world a better place, even if only in small ways. Modern virtue is
additive, progressive and action-oriented, combining traditional virtuous
qualities (e.g., honesty, dependability, trustworthiness) with contemporary
attributes such as environmental sensitivity and product naturalness (in the
sense of lacking additives that may adversely affect health and well-being).
Most consumers will pay at least a little
more for virtuous brands. In one survey, 76% said they will pay more for
"responsible brands." Of this, 42% said they would pay up to 10% more, with 34%
willing to pay a higher premium. When asked specifically about "ethically
produced food," 69% reported they would pay more, with 57% willing to pay up to
10% more.
Consumers award virtuous brands and
companies with deeper levels of engagement. Approximately eight out of 10
consumers reported giving greater trust and loyalty to brands they see acting in
a virtuous manner. They also said they are more likely to take more time to
learn about virtuous brands and recommend them to others. In fact, 43% reported
they have purchased a brand that is new to them because they saw the company
embracing socially responsible practices.
Conversely, irresponsible behaviour can
cause consumers to disengage. Overall, 70% of respondents in our survey
reported that whether a brand or company behaves ethically influences their
decision to purchase. Nearly half (48%) said they have stopped purchasing a
brand when they saw the company acting in a socially irresponsible or unethical
way.
Virtue is a fluid quality. Eight out
of 10 consumers said they do not differentiate between being good and doing good
when assessing virtuous behaviour in a company or brand. For example, most
consumers don't differentiate between a company that practices sustainable
agriculture or uses recycled materials in packaging and one that does good for
society through cause marketing campaigns.
Brand virtue creates a stronger
connection with women and young adults. While attention to responsible
practices is widespread, women are somewhat more emphatic than men in wanting to
purchase responsible brands that make the world a better place and are willing
to pay more for ethically produced food. Young adults (ages 20 to 34) also are
more responsive to many ethical food claims than older adults. For example, they
more readily purchase ethical food because they believe it is better for the
environment or represents more humane treatment of farm animals.
Virtuous claims can assure consumers
about practical concerns as well as altruistic ones. In the research on
ethical food, we found that consumers see ethical promises as an integral part
of a cluster of brand claims that assure them food is of high quality and
thereby safer to eat. There also is evidence that the presence of ethical claims
enhances the credibility of other claims a brand makes. For example, 65% of
consumers indicated that they are more willing to believe brand claims that a
food is of higher quality when they know it is ethically produced.
Source:
Advertising Age | April 15, 2010 |