Amid ongoing economic uncertainty and rising inflation, a recent study done by Amazon Ads, known as the annual Higher Impact study, reveals how consumer values shape brand preferences. Environics Research conducted the study, which surveyed 7,213 consumers across seven key countries: Canada, France, Germany, Italy, Spain, the United Kingdom, and the United States.
As the global economy faces unpredictability, including rising inflation in 2022, consumer confidence has fluctuated. Consumers are more aware than ever of their spending habits. However, the study suggests that, despite economic challenges, consumers, particularly Gen Z, prefer to support brands that align with their values. Here are a few insights:
diversity, equity, and inclusion (DEI):
The study highlighted the importance of diversity, equity, and inclusion (DEI) for consumers. According to the research, 73 percent of global consumers believe brands must take action to promote DEI, a 7 percent increase from the previous year with Gen Z adults, with 77 percent expressing a desire for brands to actively participate in DEI efforts. various areas of DEI that consumers care about, with gender equality at 29 percent, racial equity at 27 percent, income at 20 percent, education at 20 percent, age at 20 percent, and considerations for emotional, psychological, or mental health conditions 19 percentage and physical disability 19 percent. While gender equality is a top priority across all generations, Boomers rank age 31 percentage as the second most important area, differing from Gen Z and Millennials who prioritize racial equity.
Shifting priorities:
Over the last three years, global consumers have become increasingly conscious of their spending habits, with 84 percent expressing a reconsideration of their need to shop more efficiently. Despite increased budget consciousness, 7 out of 10 consumers actively support brands that contribute to causes close to their hearts. The top causes found were health care and healthcare access. Health and Wellness Economic uncertainty. Environmentalism and Poverty.
Concerns vary by generation, with Gen Z prioritizing mental health awareness at 26 percent human rights and social issues at 23 percent, and animal rights at 19 percent. Millennials, Gen X, and Boomers prioritize health care, health and wellness, and economic uncertainty.
Consumers are becoming more aware of the impact of their spending decisions, with 70 percent believing they can “vote with their dollars” by supporting brands that show good citizenship and Supporting small business owners.
Sustainability:
When it comes to Sustainability it still is a crucial factor influencing consumer preferences. Despite economic ups and downs, the study shows a 6% increase in the number of global consumers seeking out brands with sustainable business practices, overall 52 percent of consumers express a willingness to pay more for products that bear a third-party sustainability certification. The commitment to sustainability is even more pronounced among adult Gen Z consumers, with 62 percent being willing to pay a higher price, compared to 41% of Boomers.