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The Impact of Social Media
Consumers are more powerful than ever.
They have the ability to thoroughly research
a brand or a retailer and its practices (and
increasingly do so in real time, thanks to
smartphones), while social media gives
consumers an interconnected platform to
convey any feelings of distrust. Never has
it been easier to rail about bad business
practices, thanks to Twitter, Yelp, Angie’s List
and the like.
And while a handful of brands may have
earned a consistent level of trust, many will
probably always be seen through a veneer
of suspicion, with every move analyzed
for signs of an ulterior motive. That means
unbiased peer and third-party reviews are
likely to continue influencing decisions. Can
we expect to see every item on the shelf in
our supermarkets labelled with a rating from
reviewers like Which? or Consumer Reports?
Companies that can show their human
side through storytelling and acknowledge
their failings with grace will appeal to
shoppers who can see through bombastic
claims. Creating platforms that give
customers a voice to shout about their
experiences will help brands position
themselves as transparent – an attractive
trait in today
’
s climate.
In the UK, supermarket retailer Iceland
has announced it will be moving on from
the celebrity mother spokespeople it has
previously used to instead harness the power
of vloggers who are real mothers.
Iceland has partnered with Channel Mum, a
network of vlogger parents. These parents
will then upload videos of themselves
to Channel Mum’s YouTube channel
and website as they make meals using
Iceland products.
Celebrities are no longer the sole option
when it comes to hiring a famous face to
front a campaign; in recent years we’ve seen
bloggers and vloggers rise up to take their
place thanks to the rise in popularity of
social media.
This approach will present the retailer as
interested in getting real – rather than
manufactured – reactions to its food. This
approach has the potential to backfire, but
it may also attract skeptical consumers who
are looking for brands to be more truthful.
Ethics Provide a Framework
For Storytelling
While the notion of “corporate transparency”
has become something of a cliché in
recent years, its ethos is as relevant as ever.
Consumers have become cynical toward
the claims of manufacturers, retailers and
advertisers and acknowledge a lack of
information on product labels. Above all,
retailers and brands must be truthful and
stay true to their stated core values. Stories
must align with these core values or they will
be viewed with suspicion.
Company and product ethics matter to
consumers. In fact, about 70 percent of
consumers claim to give at least some
consideration to a company’s ethics
when making purchases, according to
Mintel research.
Moreover, company ethical behavior has
gained importance over the past few years;
less than half of consumers said they
considered corporate ethical behavior in
their purchasing decisions when surveyed
in 2012.
Somewhat surprisingly, men are significantly
more likely than women to say they are
often/always influenced by company ethics
(29 percent vs. 16 percent). Millennials tend
to place more emphasis on ethics than older
generations, which supports commonly
held beliefs about millennials: 78 percent of
millennials at least sometimes consider ethics
in their purchasing decisions, compared to
61 percent of baby boomers.
C
onsumers are
increasingly
being romanced
by the stories
that brands and
retailers are
telling about
product origin,
ingredients and
inspiration.
34%
48%
33%
31%
27%
27%
27%
22%
18%
17%
13%
9%
2%
16%
Employee treatment
Where products are made
Environmentally friendly
Animal treatment
Advertising practices
Food transparency
Stance on controversial issues
Outreach in local community
Outreach in U.S.
Charitable donations
Outreach globally
Employees volunteering
None of the above
Other
Factors Considered to Determine How Ethical a Company is
, U.S., April 2015
“Which of the following factors, if any, do you consider when deciding how ethical a company is?”
Base: 2,000 internet users aged 18+ Source: Lightspeed GMI/Mintel Source: Mintel Reports: The Ethical Consumer – U.S., July 2015
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