“Virtuous” Brands and Companies Command Increased Loyalty, Trust and Word-of-Mouth, New Study Finds “Changing The World” is Growing Mandate For Companies
PRESS RELEASE
Contact: Bob Kenney
Context Marketing
415-289-7575
bkenney@contextmarketing.com
“Virtuous” Brands and Companies Command Increased Loyalty, Trust and Word-of-Mouth, New Study Finds “Changing The World” is Growing Mandate For Companies
September 9, 2009 – Many consumers want to make the world a better place and are willing to reward those companies and brands that help them do so with increased trust, loyalty and word-of-mouth, reports a new study titled “Brand Virtue as a Competitive Asset.” It reports on research recently conducted by Context Marketing and Noesis Research.
According to the study, three out of four consumers report they are willing to pay more for brands they see as behaving responsibly. Of those willing to pay more, around 40 percent said they would pay as much as 10 percent more, and another 30 percent say they are willing to pay a premium higher than 10 percent.
The study also shows that consumers are willing to allow brands and companies more than one path to virtuous behavior: eight out of ten consumers report they do not differentiate between a brand’s being good for society in some way, such as producing healthy foods or using environmentally-friendly packaging, and brands that do good for society, such as supporting public service programs that address social issues.
“Many consumers seem to have a general concept of ‘modern virtue’ in mind when they evaluate brands and companies,” said Bob Kenney, Context Marketing principal. “It’s clear that what constitutes ‘socially responsible’ behavior is evolving in the consumer mind beyond the traditional definition of corporate social responsibility. Today’s consumers increasingly expect brands and companies to help change the world, even if only in small ways,” he said.
The survey was designed to capture the opinions and aspirations of a more upscale consumer segment. It included 600 working adults living in major U.S. markets, the majority of which hold at least a college degree and have a household income of $75,000 or more.
Other highlights of the study include:
- Consumers are as willing to pay a premium for higher priced products (e.g. cars, appliances) from companies they perceive as responsible as they are for less expensive products.
- Despite the downturn, 15 percent of respondents report they are more likely to purchase responsible brands today, while 12 percent report they are less likely. Seventy-three percent report no change in purchase behavior.
- While responsible brands and companies appeal to both men and women, women bring somewhat higher expectations when it comes to evaluating responsible behavior. For example, 69 percent of women believe a responsible brand should “show it shares my values,” compared with 55 percent for men.
“A special strength of virtuous brands is the emotional benefits they hold for consumers,” notes Ross Goldstein, Ph.D., Noesis Research principal. “There’s a strong reciprocal relationship created between virtuous brands and consumers that goes beyond trust and loyalty and can be a significant contributor to marketplace success,” he said.
A complete copy of the study, “Brand Virtue as a Competitive Asset,” is available for download at www.contextmarketing.com.
About The Study
This study was a collaborative research project conducted by Context Marketing and Noesis Research. Data for this study was collected via online survey in U.S. major markets during June and July 2009. The total sample consisted of 600 respondents between the ages of 20 and 64, equally representing men and women. Respondents were mainly working, college-educated adults, with nearly two-thirds having a household income above $75,000.
Context Marketing is a San Francisco Bay Area consulting firm that helps companies develop communications strategy and initiatives addressing the societal issues and trends that influence brand preference and corporate reputation. Contact: 415.289.7575, www.contextmarketing.com
Noesis Research is a full service, qualitative and quantitative marketing research company, based in San Rafael, California. Noesis Research specializes in emerging trends and innovative methodologies for evaluating consumer behavior. Contact: 415.454.7900, www.noesisresearch.com









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