IBM’s released a new study, Purpose and Provenance Drive Bigger Profits for Consumer Goods In 2020, revealing that now, more ever before, the importance of brand purpose surpasses cost and convenience for today’s shoppers. The research, developed in partnership with the National Retail Federation (NRF), polled nearly 19,000 consumers from 28 countries, across all demographics and generations, from Gen Z to Baby Boomers (ages 18-73), to understand how individual purchasing decisions are evolving and help today’s consumer-facing companies navigate trade and commerce complexities.
The study found that:
- One-third of all consumers today will stop buying their preferred products if they lose trust in the brand, and one-third of consumers have already stopped purchasing their longtime, favorite brands in 2019.
- On average, 70 percent of purpose-driven shoppers pay an added premium of 35 percent more per upfront cost for sustainable purchases, such as recycled or eco-friendly goods.
- Seventy-nine percent of all consumers today state it is important for brands to provide guaranteed authenticity, like certifications, when they’re purchasing goods.