More than half (54 percent) of American consumers consider themselves to be socially conscious shoppers, and nearly two-thirds (63 percent) of respondents prefer to purchase holiday gifts from brands that support specific social causes, according to new research from application software firm SAP SE.
In the firm’s survey, 1,000 consumers in the United States were asked about their purchasing habits to understand the correlation between their purchases and “brand purpose.” The study also revealed that 60 percent of individuals will avoid buying from brands that support causes they disagree with during holiday shopping.
“We live in an experience economy in which consumers care not just about products but also about a company’s purpose, value and global impact,” said Alex Atzberger, president of SAP Customer Experience at SAP, in a news release. “For retailers, this can be decisive while competing during the holiday season, when shoppers are spending more than at any other time of the year. Our survey findings indicate that when a company closely connects its purpose to the brand, chances are customers will relate to it on a more personal, human level—which supports customer loyalty and completes the customer experience.”
Additional insights from the survey:
Consumers are willing to pay more for values
More than half of respondents said they would spend more for a holiday purchase from a brand that strongly supports a cause or represents specific values.
Brand values are second only to price when making purchasing decisions
Brand values matter more than a previous positive or negative experience with a brand, how user-friendly a Web site is or if the brand has a physical store nearby.
Brands must be transparent in business practices
Some 67 percent of consumers said transparency in business practices is essential for brands to prove authenticity.
Shoppers want their values to align with brands
The values most important to shoppers this holiday season are environmental sustainability, education and diversity and inclusion.