Story at a glance
- New research shows Americans will spend more to support companies that have a reputation for doing good.
- For example, 73 percent of Americans would pay more for a T-shirt if its company benefited the local community.
- Seventy-two percent said the same about a company that treats its employees well.
As Americans prepare for another busy holiday shopping season, many may opt to spend extra on products from companies with a reputation for doing good.
New data from the Force for Good Study, carried out by Bentley University and Gallup, show at least 60 percent of consumers are willing to pay extra for something as simple as a T-shirt if the company making it has a positive impact on its community, treats its employees well, has a positive environmental impact, or contributes to charities.
“The conscious consumption movement is growing, with a majority of Americans now willing to pay more for products and to support companies with clear intentions to do good for people and planet,” said Jonathan White, an associate professor of sociology at Bentley University, in the report.
“More people are also seeing that consumers can collectively use their purchasing power to push businesses to favor the triple bottom line over bottom-line profit.”
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According to the study, 73 percent of respondents would pay more for an item from a company if it has a positive impact on its local community, while 60 percent said the same if the company contributes to charities.
More than 5,700 individuals participated in the poll, which took place between June 8 and 19, 2022 — a time when inflation was high and many Americans were likely price-sensitive, report authors noted.
In general, younger adults and women were more likely to pay a premium on products from companies making a difference.
Nearly 80 percent of younger adults said they’d spend more on a good if its company has a positive impact on the environment, and 82 percent said they’d do the same if the company benefits its local community.
Sixty-eight percent of women said they’d pay more for a T-shirt from a company that has a positive environmental impact compared with 58 percent of men, while women were also more likely to spend more at companies that impact their communities.
In the same report, the vast majority of respondents said they think companies should try to make the world better.
“As we all become more and more interconnected, consumers now have way more information about the companies they patronize than they ever did before,” added Andy Aylesworth, a professor of marketing at Bentley University, in the report.
“Since everything a brand does or doesn’t do becomes part of its image, and consumers have more points of reference for each brand, they expect the brands they buy to represent who they are to a greater degree. And if a brand doesn’t share my values, I don’t want to share my money.”
Researchers also assessed how much more Americans would spend on a T-shirt based on each different positive behavior.
With a median baseline response of $10, Americans reported they’d pay the highest premium ($7) for a shirt made by companies with a positive impact on the environment. If a company contributed to charities or treated its employees well, consumers would be willing to pay an extra $5.
The findings come on the heels of additional research that shows more Americans will give tips this holiday season, though totals may be smaller than in years past thanks to high inflation.
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