Razorfish Study Finds 82% of Consumers Make Purchase Decisions with Purpose in Mind, Yet Brands Struggle to Put Purpose into Practice
“The Truths, Myths and Nuances Behind Purpose,” conducted with VICE Media, reveals Gen Z is 2x more likely than millennials to cite brands as having the power to make the world better
Razorfish, in conjunction with VICE Media Group, today released findings from new research that unpacks changing consumer attitudes toward brand purpose. The study, “The Truths, Myths and Nuances Behind Purpose,” seeks to understand how consumers across generations and demographics view purpose and the role it plays in purchase decisions and brand loyalty. It found that, while consumers are increasingly wary of “purpose signaling,” their expectation that brands have a positive impact on society remains high.
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“The meaning and value of purpose in society have evolved significantly over the past couple years. It’s no longer enough for brands to simply have a purpose. That purpose has to be accessible and attainable through their everyday work and culture”
Research findings indicate that Gen Z is a driving force behind the call for change. Gen Z is 2x more likely than millennials, and 3x more likely than Gen X, to feel that brands—more so than media companies and institutions—are more likely to make the world a better place. This generation also prioritizes purpose when making purchasing decisions, with 76% stating the brands they buy stand for a greater mission/purpose.
Millennials and Gen X are no different, albeit by varying degrees, and the Razorfish report cautions that it’s important that brands not focus their purpose efforts exclusively on Gen Z. In fact, 62% of consumers of all ages surveyed say that when it comes to making purchase decisions, a brand’s values are important or very important to them, with 40% actively researching a brand’s values and practices. Brand purpose (41%) also outweighs other benefits, including innovation (32%) and discounts (26%), when choosing a brand.
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Purpose is on the Brink of Losing its Purpose
The pandemic has changed how people think about brands, their missions and values. Consumers place a greater importance on purpose when making purchase decisions, but many brand efforts fall flat.
“Most brands have jumped on the purpose bandwagon, but few actively drive it forward,” said Nicolas Chidiac, brand strategy lead at Razorfish. “We’re at the peak of purpose washing, and it’s imperative that brands not only clearly communicate their purpose but authentically put it into practice in everything they do. Brands are beyond the ‘why’ and are struggling with the ‘how’ to follow through and tie purpose to performance.”
