Consumers Support Companies That Take a Stand- Horowitz Research
- Written by Len Stein
New Rochelle, NY, January 21, 2020 For companies today, taking a stand on sociopolitical issues is more than just building good will: its good business.
According to Horowitz Researchs State of Consumer Engagement 2019 study, a full six in 10 (60%) consumers make an active choice to know the environmental, social, and political stances of companies they do business with. Its about more than just paying attention to how companies behave; consumers are making purchase decisions based on this information.
Its increasingly difficult for companies to remain neutral in todays polarized sociopolitical environment. According to the study, 22% of consumers today feel that companies should take a stand on sociopolitical issues, and 25% say they go out of their way to buy from companies that support the same causes and politicians they do. In fact, one in four consumers (25%) also say that they have boycotted a company, either stopping or decreasing the amount of business they do, because they dont agree with that companys actions or stances on sociopolitical issues.
The desire to support cause-driven companies is most palpable among young, diverse consumers. More than a quarter (27%) of 18-34 year-olds feel that companies should take a stand on sociopolitical issues; in contrast, 22% of 35-49 year-olds and 17% of 50+ year-olds feel the same. Two-thirds (67%) of 18-49 year-olds make an active choice to know the social, environmental, and political stances of the companies they do business with, underscoring that a companys sociopolitical stances impact the bottom line.
Hispanic, Black, and LGBTQ consumerswho also skew youngerare among those most tuned into a companys sociopolitical stances. Among Hispanic, Black, and LGBTQ consumers, three in ten want companies to take a position (30%, 31%, 30%, respectively); just two in ten White consumers feel this way. Furthermore, 28% of Hispanic, 32% of Black, and 38% of LGBTQ consumers say that they go out of their way to buy from companies that align with their personal beliefs and politics.
For these young, diverse consumers, feeling represented and welcomed is key to brand consideration. Six in ten Black (61%), Hispanic (61%), and LGBTQ (62%) consumers say that when a company is known for embracing and supporting the Black, Hispanic, or LGBTQ community (respectively), it has a positive impact on their decision to patronize the company (assuming they are in the market for the service/product).
The days when companies could hide behind their corporate identity are gone. Consumers, especially young consumers, are increasingly gravitating towards cause-driven brands with whom they can authentically connect. Having a strong grasp on your customer base, the causes they believe in, and what they expect from you as a company is critical to growing not just market share, but brand love, says Adriana Waterston, Horowitzs SVP of Insights and Strategy.
Topic areas covered in the full State of Consumer Engagement 2019 report include:
- Types of media consumed;
- Social media services used daily;
- What advertising tactics consumers feel are most effective;
- Attitudes and behaviors surrounding ads, ad skipping, and ad sharing;
- How todays sociopolitical climate is changing how consumers think about and patronize brands, and what issues are the most likely to drive positive brand consideration;
- The role of culture in consumers lives and how diversity and representation impact how they feel about brands.
State of Consumer Engagement 2019 provides analysis of U.S. consumers media usage, advertising awareness and impact. Additionally, the report includes sections beyond media and advertising usage revealing the impact of sociopolitical influences on consumers relationships with brands. The survey was conducted online in September 2019 among 1,404 consumers.
In addition to the general market report, Horowitz has also released FOCUS Latino: Consumer Engagement, FOCUS Black: Consumer Engagement, and FOCUS Asian: Consumer Engagement. These FOCUS reports cover the same breadth of topic areas as the main report, analyzed by key ethnic/racial segments, including age, acculturation, country of origin, income, and more.
