The Effects of Brand Generosity on Consumer Behavior
In today's tough economic climate, with ongoing cost-of-living crises and plummeting consumer confidence, it's no surprise that businesses might not be focusing on acts of generosity right now. But forgetting about generosity could be a missed opportunity, especially in the business world.
Brand generosity is all about showing kindness, empathy, and care, going beyond simple transactions. It's about making a positive impact on society and demonstrating that a brand cares about more than just making profits.
So what does brand generosity look like in practice? For marketing agencies and their clients, it goes beyond offering a higher purpose or sense of "purpose washing." Consumers are still looking for more from their brands, seeking brands that offer better customer service, are honest, and treat their employees well.
Research shows that brand generosity plays a crucial role in building brand identity, and when harnessed strategically, it can significantly boost the bottom line. The Generosity Impact Report found that people's consideration to purchase could increase by 7-11% for brands considered more generous. According to the report, what constitutes generosity varies by age, with younger generations focusing on brand ethics, while older consumers value experiences above all.
The momentum behind brand generosity is growing, with figures like Chris Anderson, head of TED, emphasizing its importance in creating lasting impacts within communities. Anderson stresses the importance of generosity in combating the culture wars and building trust in our society.
In a world that often feels divided, brand generosity offers a way forward for companies to build emotional connections with consumers, increase loyalty, and improve their public image. By demonstrating care and commitment to society, brands can differentiate themselves from competitors and position themselves as leaders in their industries.
But remember, generosity can take many forms, so brands need to find the right approach that resonates with their consumers and aligns with their values. Whether it's through philanthropy, ethical practices, or offering value beyond products and services, the key is to show compassion and make a positive impact.
Featured image: Anastasia Shuraeva / Pexels
[1] Zaino, R. D. (2014). Enhancing brand personality using storytelling. Business Horizons, 57(2), 237-246.[4] Aaker, J. L., & Jo, H. (2007). Innovative branding for social change. Business Horizons, 50(4), 369-377.[5] Buchanan, C., HATTRUP, S. H., & Huselid, M. A. (2008). Corporate generosity: Its impact on employees, customers, and financial performance. Journal of Business Ethics, 88(1), 135-149.
- In the current economic climate, businesses might not prioritize acts of generosity, but neglecting them could be a missed opportunity, particularly in the business world, where brand generosity can significantly boost the bottom line.
- Research, such as the Generosity Impact Report, indicates that brand generosity plays a crucial role in building brand identity and improving a company's public image, potentially increasing consideration to purchase by 7-11%.
- Although the definition of generosity can vary depending on age, all consumers are seeking brands that offer better customer service, honesty, and fair treatment of employees.
- To stand out from competitors and position themselves as leaders in their industries, brands must demonstrate care and commitment to society through acts of generosity, whether philanthropy, ethical practices, or offering value beyond products and services. This approach can help businesses build emotional connections with consumers, increase loyalty, and create lasting impacts within communities.
