After moving to a new community, Annalise hunts for a new financial institution. She has many options. Of course, she considers the fees and returns she might get. She also weighs other factors the banks and credit unions tout as making them distinct. Yet, when it comes down to it, the differentiating factor for her, is which institution best reflects her own beliefs and values. Annalise exemplifies the values-driven consumer growing more common in the marketplace.
On February 28, 2025, consumers nationwide participated in a 24-hour economic blackout to take a stand against large brands retracting their diversity, equity, and inclusion (DEI) efforts. Earlier in the month, consumers boycotted Target, and plans were in the works to boycott Amazon, Nestle and Walmart for seven days in the coming weeks. These exemplify values-driven consumer behavior at a massive scale.
Yet, individual consumers increasingly make purchase decisions on a daily basis that reflect what matters most to them.
What matters to the purpose-driven consumer
Different consumers will have different priorities, but some commonalities are clear. For example, in PWC’s latest Voice of the Consumer Survey, 46% of their 20,000 respondents across 31 countries sought to reduce their environmental impact by buying more sustainable products. Some 43% also indicated they make more considered purchases to reveal their consumption. As the global consultancy observed, “the expectation that companies will do the right thing for the environment is now seen as table stakes.”
EY similarly identified a growing consumer population focused on sustainability. In a 2023 report on its research, the firm found 68% of consumers expected companies to invest in sustainably produced products and services. EY further observed, “consumers now view a company’s behavior as equally important as the products it offers.”
Sustainability isn’t the only factor values-driven consumers consider. The national boycotts already mentioned demonstrate buying behavior dictated by political view and perspectives on diversity.
With such a wide array of options available, consumers are able now to consider a range of factors including:
- Whether products are good for the planet
- Whether companies are good to their people and contribute to their communities
- Whether the brand is responsible and trustworthy
- Whether the purchase is good for health (personal and community)
- Whether the product treats animals well
Of course, this doesn’t preclude the consumer from valuing affordability at well. With worries over inflation rising, the values-oriented consumer still does weigh cost in many cases.
The power of value-driven consumption
Purpose-driven spending is not a fad, according to Forrester, which has been discussing the trend since 2017. In 2020, the consultancy observed, “companies that put their values into action grow faster than other companies.”
In a 2023 follow-up Forrester principal analyst Xiaofeng Wang noted, values-motivated consumers can be found globally. “In APAC, nearly half or more consumers (46% in Australia, 72% in metro China, and 74% in metro India) regularly purchase from brands or companies that align with their personal values.”
Yes, the trend is more prevalent among high-income and Generation Z consumers. Yet, bringing intentionality to buying behavior isn’t exclusive to these groups.
One reason? The Internet has empowered a much better informed consumer. Researching a brand’s values or product labels or company certifications is easier today. Plus, individuals have convenient access to social media, online reviews, and news coverage to learn more about what companies or organizations align with their social and environmental values.
Purchasing is personal for values-driven consumers
Consumers like Annalise cast a wider net when making purchasing decisions, according to 2023 research by SPINS. Compared to their counterparts, 65% of these shoppers were “extremely or very adventurous” when it came to trying new brands and products.
Additionally, the 49% of shoppers they characterized as “values-oriented” also found other ways to gain a deeper understanding of their options:
- 74% always or usually look at ingredients prior to purchasing a product
- 75% always or usually pay attention to labels on the packaging for food and beverage
- 73% are influenced by product certification when purchasing a product
What this trend means for your organization
With consumers increasingly making their buying decisions based on personal values such as environmental sustainability, social justice, animal welfare, or ethical labor practices, organizations must demonstrate their commitment to responsible practices.
Often this is done through mission, vision, and values. By integrating these throughout your organizational culture and all aspects of your business, you can appeal to both internal and external stakeholders with authenticity.
Note that key word — authenticity. It’s up to you to transparently communicate your values and efforts to good, but you also need to do so in a trustworthy way. If consumers don’t trust your efforts, or see your marketing and other communications around these efforts as “greenwashing” or a cynical attempt to grow your market share, your purpose-led branding will backfire.
Breaching consumer trust can have wide-reaching and long-lasting impacts. Abandoning your business values and mission can also negatively impact your recruiting and retention efforts. We’ll explore that phenomenon in more detail in the final article in this series.
In the meantime, it’s important to recognize that willingness among consumers to use their dollars to support their values and beliefs has reverberations for organizations, brands and their products. Proceed with purpose, as your customers are increasingly doing.
Want to better understand customer trust in your brand? Build a better understanding of your customers’ priorities. Connect with us to learn how Sogolytics can help.
