Consumers Are Willing to Spend More on Items From Socially Responsible Brands, Study Finds

66 percent of consumers prefer to spend on companies perceived as socially responsible

By STS News Desk On Apr 2, 2020

A study from online reviews platform Trustpilot has revealed global consumers are more likely to purchase the exact same item at a higher price point from socially responsible companies. Nearly 66% of online shoppers will purchase the same item at a slightly higher price from a company they believe is socially responsible versus purchasing from an unfamiliar brand. The study also finds that consumers are likely to purchase a more expensive item from a socially responsible brand (82%) versus a company that is known for a recent scandal.

The Value of a Trustworthy Brand Reputation report analyzes online reputation management from the perspective of a consumer and confirms that 90% of online shoppers rather walk away than purchase from a company with a bad reputation.

“Recent events have put reputation to the test for major brands. Consumers are seeing the true nature of some businesses and understand that reputation is more reliable than ever,” said Don Ross, Trustpilot President of Americas. “This is an opportunity for companies to understand that feedback should be taken with an open mind and used to improve their customer experience. Customers have more choices, higher expectations, and are more empowered than ever to make the right purchasing decisions.”

According to respondents, improving online reputation is the number one way (95%) to improve trust with customers. One aspect of online reputation includes a brand’s social stance on various issues. Nearly 48% of consumers stated they have recommended a company to others based on the company’s stance on social issues.

The research was carried out in 2019 by 1,700 US, European, British, and Australian online shoppers.

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