'Virtuous' Brands Command Increased Consumer Loyalty

TIBERON, Calif.High-end consumers are increasingly willing to reward companies and brands that they perceive as behaving responsibly with greater trust, loyalty and word-of-mouth, according to a new study conducted by Context Marketing and Noesis Research. The online survey, conducted in June and July 2009, included 600 working adults in major U.S. markets, the majority of whom hold college degrees and have household incomes of at least $75,000.

Among the findings of the study, Brand Virtue as a Competitive Asset, researchers found three out of four consumers were willing to pay more for brands with a virtuous halo, with 40 percent of those consumers willing to pay a 10 percent premium and 30 percent willing to pay more than 10 percent more. Further, eight out of ten consumers report they do not differentiate between a brands being good for society in some way, such as producing healthy foods or using environmentally-friendly packaging, and brands that do good for society, such as supporting public service programs that address social issues.

Many consumers seem to have a general concept of modern virtue in mind when they evaluate brands and companies, said Bob Kenney, Context Marketing principal. Its clear that what constitutes socially responsible behavior is evolving in the consumer mind beyond the traditional definition of corporate social responsibility. Todays consumers increasingly expect brands and companies to help change the world, even if only in small ways.