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Brands face increasingly dangerous terrain as more consumers become willing to boycott or purchase their products based on their political or social positions. According to Edelman’s 2017 Earned Brand report, 57% of consumers boycott or buy from a brand based on its position on a political or social issue, and 30 percent say they make belief-driven purchase decisions more than they did three years ago.
“Around the globe, consumers are putting their personal convictions front and center. From the grocery aisle to the car dealership, they’re buying on belief,” the Edelman report states.
Some key findings from the survey:
- Almost a quarter of consumes will pay a 25 percent premium for a brand that supports their position.
- About half will buy only from a brand that’s vocal about a position they favor.
- Two-thirds will buy from a brand for the first time based solely on its position on an issue.
- 65% would not buy from a company that remained silent about an issue they care about.
- Millennials (60 percent) are more likely to be belief-driven buyers than other age groups.
- Belief-driven buyers are more prevalent in developing countries such as China (73 percent) and India (65 percent) but also comprise about half of consumers in developed countries.
- Consumers who agree with a brand’s position on social or political issues are more likely to remain loyal to it, advocate for it and defend it.
An Opportunity for Brands
“People really are buying on belief, and brands have a huge potential to gain if you do share your belief and act out on those beliefs,” said Mark Renshaw, global chair of brand at Edelman, according to Ad Week. “We really think this is an opportunity for brands, and it’s something that all brands should be looking at proactively versus reactively.”
Renshaw recommends that brands stay out of politics and focus on issues like the environment, equality and immigration. Although those issues have political sides, companies should focus on the issues themselves, not their political aspects. Renshaw cites Edelman’s work with the Heineken “Worlds Apart” campaign as a successful example.
Another Survey, Another View
Although brands may be more likely to take a stance, many PR and marketing experts urge caution. A survey by the 4A’s, trade association representing the advertising agency business, earlier this year found that the majority of consumers (58 percent) disapprove of brands that get political.
“Consumers are not looking to brands to take a position on political or social issues. In fact, there’s typically more risk than benefit,” said Alison Fahey, chief marketing officer of the 4A’s. “Brands taking a negative approach risk backlash, and only a small percentage of consumers are moved to buy from positive messaging.”
Two-thirds of agency professionals (67 percent) surveyed by the 4A’s believe that changing American values are causing brands to become more interested in corporate responsibility and values-based marketing. Companies generally fear political issues more than social issues. That means understanding the demographics and values of a brand’s customers is more important than ever, they say.
Fahey recommends: “Think twice, and then think again. Ask yourself: ‘Do you have credibility in this space or about this issue? Does the position you want to take align with the core values of your company or brand? Is the messaging authentic?’”
Bottom Line: Companies face increasingly perilous times as more consumers base purchase decisions on brands’ positions on political and social issues. Many consumers will refuse to buy from brand that remains silent on an issue they care about. Brands taking a stance risk offending a significant portion of their customers. Companies that understand their core values and the demographics and values of their target audience are most likely to reach prudent decisions.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
