Dentsu UK&I’s latest national consumer research finds that Gen Z expect brands to demonstrate purpose beyond profit, even in the face of economic instability, as they report the highest concern (90%) of all generations about social issues, which has a clear impact on their purchase decisions.
Dentsu’s 2024 Read the Room: Pursuing Happiness report finds that 75% of Gen Z are more likely to buy from brands that give a portion of their sales to charity and 70% say they prioritise brands that demonstrate emotional intelligence in their advertising – both findings are the highest of all generational cohorts.
The research also finds that Gen-Z donates the highest proportion of their salary (5%) to charity compared to other generations. That’s despite more than half (57%) of Gen Z reporting that they are extremely anxious about their finances in the immediate future. An additional 78% agreed they would be more likely to purchase from a brand that makes its products sustainably.
The research, conducted by the people-centred transformation network dentsu, delves into the influences behind buying decisions across a wide range of generations and industries – from Boomers to Millennials to Gen Z – to give brands insights in consumer mindsets in 2024 and beyond.
It finds that Gen Z, those born between 1997 and 2012, view charitable donations and social activism as a core pillar of their personalities, with brand identity linked to personal value systems. Gen Z want to buy from brands that are actively doing good for society, not just through words, but through authentic action.
Even among Boomers, more than a quarter now prefer to buy from a brand exhibiting a strong sense of purpose. Consumers will ultimately move away from brands that fail to back up sustainability and social initiatives with evidence. Brands must gain deep knowledge of their customers’ value systems, and then communicate clearly how they are delivering on those values. In doing so, brands can create new consumer demand, unlocking new value in new spaces.
Angela Tangas, UK&I CEO dentsu, said: “In another economically challenging year, a people-centered focus must be a priority for brand strategy and business growth. Our insights reaffirm that understanding both consumer and customer behaviours, anticipating their needs and creating new ways to meaningfully and authentically connect is critical. We can clearly see that consumers, especially Gen Z, expect more from brands in terms of environmental sustainability and social impact, at a time when technology is enabling new experiences and cultivating new behaviours. The demand for purpose means authenticity is paramount, which will be key to unlocking wins today and preparing for tomorrow.”
