Brand ethos and purpose taking backseat to lower prices

Jul 7, 2022
Written by WR Communications

In March of this year, IWR reported how some shoppers were shopping with purpose and searching for brands that mirrored their values and supported social causes such as racial and gender equality or environmental protections. “Gen Z isn’t just buying a product, they’re buying into a brand, and they want to feel a deeper connection to that brand through their shared values,” said Jasmine Enberg, an Insider Intelligence principal analyst.

It would now seem that Cindy Lauper was right. “Money changes everything.”

As inflation rises, more consumers are prioritizing pricing over brand loyalty. According to research by McKinsey, consumers are switching brands and retailers at higher rates this year compared to 2020 and 2021. Many shoppers are now setting aside brands that align more with their social or personal values to focus on better deals that will help keep their expenses and costs of living down.

As a result of this changing mindset, retailers are shifting from purpose-driven marketing and returning to more traditional advertising to better appeal to the frugal-minded buyer, showcasing special discounts or sales. Traditional ads now nearly have a 10% higher chance of resonating with viewers. Read more.