It’s reasonably well established that having a purpose in our lives is beneficial both personally and professionally. Research from Wharton highlights how it can also benefit us as consumers when companies have a “brand purpose”, which the authors define as having a long-term aim that is central to the very meaning, identity, and strategy of the business that goes beyond simply making money.
The article highlights how companies are increasingly pursuing wider societal goals beyond simply making a profit, with this trend driven by changes in consumer demand and a range of high-profile calls from the likes of Larry Fink.
Reflecting values
The researchers examined the various forms of wellbeing boosts consumers could experience when they engage with brands that reflect their personal values. They focus their attention specifically on something known as “eudaimonia”, which is the fulfillment we get when we live a meaningful life or are able to contribute meaningfully to society.
The researchers identified five core factors that tend to affect any relationship between consumers and the brand’s purpose:
- The purpose of the consumer
- The meaning and significance they attach to that purpose
- The self-acceptance of one’s true self
- Whether the relationship is a positive one
- And finally other-praising emotions
The researchers argue that when brands adequately address these various factors, then the benefits to both the company and to consumers are often significant. They believe these benefits can include:
- Higher consumer trust
- Greater brand authenticity
- More commitment to purpose
- Better consumer-value congruence
- Close brand-purpose proximity
This manifests itself in higher levels of wellbeing among consumers, and for marketers can produce better brand loyalty, more positive feelings about the brand, and subsequently greater brand evangelism.
“The ultimate goal of our review,” the authors conclude, “is to guide future consumer psychology research into brand purpose, a concept that we believe may have a transformative impact on business, consumers, and society.
