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U.S. Consumers Feel Most Responsible to Help,Yet Involvement in Societal Issues Declines for the First Time;Look to Marketers to Bridge the Gap
Five Years of Data Reveals Purpose to Be a Driving Force Behind the Reengineering of Brand Marketing Around the World, 2012 Edelman goodpurpose® Study Finds
April 26, 2012, NEW YORK, NY
–
Consumers in the U.S. are scaling back their participation insocietal issues more than their peers throughout the world, according to the 2012 Edelmangoodpurpose® study. With 82 percent of U.S. consumers affected by the economic downturn, thepercentage of consumers involved in a cause dropped from 60 percent to 53 percent between 2010and 2012, the only decline among the 16 countries surveyed. Yet, for the first time ever, the U.S.
was the only country to believe the responsibility of tackling society’s issues falls most heavily on theshoulders of “people like me”
(35 percent) and not government (22 percent).
“
The tension of this paradox spells significant opportunity for marketers. While U.S. consumerscurrently have less time and money to put towards societal issues, they still feel the
y’re most
responsible
to help,” said Carol Cone, global practice chair
, Business + Social Purpose,Edelman.
“
Brands and corporations can ease the burden for consumers by making involvement insocial issues easier and more aligned with the core needs they face today
–
jobs, hunger, educationand healthcare.
”
Despite the declining involvement in the U.S., Purpose remains a deeply held belief around theglobe that is driving consumer behavior and preference.When quality and price of a product are deemed equal, social purpose has consistently been theleading purchase trigger for global consumers since 2008, muscling design and innovation andbrand loyalty aside. Over those years, the relevance of Purpose as a purchase factor has risen 26percent globally. Growth has been even more prominent over the last 18 months in markets such asJapan (+100 percent), China (+79 percent), Netherlands (+43 percent), India (+43 percent), andGermany (+36 percent).Brands aligning themselves with causes are not only securing more consumer consideration, but arealso earning their dollars and support. Nearly half (47 percent) of consumers have bought a brand atleast monthly that supports a cause, representing a 47 percent increase from 2010. Over the years,consumers have taken increased action on behalf of brands with Purpose:
39 percent increase
in “
would recommend
” cause
-related brands
34 percent increase
in “
would promote
” cause
-related brands
9 percent increase in
“
would switch
”
brands if a similar brand supported a good cause
2
“It’s not the IF, it’s the HOW,” said Jackie Cooper, global vice chair,
Edelman Brand Properties.
“
Purpose needs to become a core competency for leading brands and corporations. Companiesneed to build social equity into their brands, from product innovation, to employee engagement to
marketing communications.”
The study found that consumers are calling for business leaders to genuinely embed Purpose intotheir everyday operations:
56 percent believe CEOs need to create innovative products that are socially responsible
55 percent believe CEOs need to make a long-term commitment to address societal issues
55 percent believe CEOs need to publically support societal issues
52 percent believe CEOs need to motivate employees to take part in societal issuesgoodpurpose 2012 also reveals that Purposeful organizations who treat employees well, listen tocustomers and work to protect the environment drive not only future trust, but also future purchaseintent.
The New Purpose Bull Markets
Consumers within Rapid Growth Economies (RGEs)
—
the new Purpose
“
Bull
”
Markets
—
such asChina, Brazil, India, UAE, Indonesia, and Malaysia, unlike the U.S. and Western Europe, are fast-tracking Purpose-driven involvement and support for Purpose-infused brands. Markets such asBrazil (+10 points) and China (+5 points) have seen significant increases since 2010 in the amountof people supporting a good cause.RGE consumers are more bullish on Purpose
, in contrast to Purpose “Bear”
Markets, such as theU.S. and Western Europe. And while 60 percent of individuals globally said they support a goodcause, personal involvement in Purpose Bull Markets is markedly higher than in Purpose BearMarkets; 78 percent versus 48 percent, respectively. Bull Market consumers are flexing theirPurpose muscle through actions such as sharing, donating and volunteering:
Nearly two-thirds (63 percent) of Bull Market consumers donated money over the past yearcompared to 52 percent of Bear Market consumers
44 percent of Bull Market consumers volunteered in their local communities compared toonly 23 percent of Bear Market consumersRGE consumers are also making Purpose purchases at a much more dramatic rate. Nearly two-thirds (62 percent) in Purpose Bull Markets are purchasing Purpose-infused products at least once amonth, compared to 37 percent in Purpose Bear Markets.
“Purpose, a brand or company’s reason for being beyond profits, is now pervasive around theglobe,” said Cone. “For Purpose
-driven initiatives to gain their greatest impact, both business andsocial, they must be in line with larger socioeconomic trends and customized to meet the ever-
changing needs of consumers.”
To read the executive summary of the 2012 Edelman goodpurpose® study, click here.
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Press Release: 2012 Edelman goodpurpose® Study
Consumers in the U.S. are scaling back their participation in societal issues more than their peers throughout the world, according to the 2012 Edelman goodpurpose® study. To find out more visit http://purpose.edelman.com
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